Mobile Marketing - Case Study Example

Managing Uncertainty: Business Plan for IT Technologies Concept As individuals around the world become more fitness conscious, there is a need to tailor make items that motivate people to achieve their workout goals. One concept that seems to always fit this bill is music, yet it is often difficult to find music that fits the specific tempo and fitness level of the individual. The product proposed for this project is a mobile phone app that allows users to specify their workout length and music genre. The app will then find songs suitable to the pace of the individual and vary those by workout session. 2. Market Analysis The beauty of this product is that, as it is mobile, it is suitable for anyone around the world that has Internet access. The product itself can be worn and used both inside and outside, and via a variety of different types of workouts, so the demographic group that it targets is actually quite broad. In fact, the targeted consumer for this particular mobile application is anyone interested in working out via a fitness regime, from the novice to the advanced. To be sure, there will be several competitors entering this particular field as technology continues to improve, so some distinguishing features need to be present to appeal to a certain select of athlete. To begin with, this product will not be designed for individuals that are focused solely on weightlifting, as the design of the application is to fuse particular genres of music to cardiovascular activity in an effort to generate more excitement and motivation within a typical workout routine. As such, the product will be designed with convenience in mind, such that the average person can quickly open the app on their mobile assisted device and quickly integrate music within the context of their desired exercise plan. The product will also be designed with quality in mind, using original digitally produced pieces from current and past superstars in the field of music. The music itself will be relevant and appealing to the average consumer, and there will be a variety of all types in order to target fitness enthusiasts with a wide range of musical tastes. Competitors to this particular product will be various other software and mobile application developers who are capitalising on technology related to the timing of music and the specific fitness speed and style of the individual. The timing of the songs, however, can be labor intensive which will prohibit a mass entry into this market, as the target audience is limited to the aforementioned demographic groups. The major aspect of this product that will drive sales will lie in its originality. There is simply no other product or service on the market today that utilises mobile devices in this manner to time music to a specific person, their style of workout, and the speed of the routine, all based on the consumer’s genre of choice. The unique nature of the product itself should appeal to a wide range of consumers that are fitness oriented. 3. Products and Services Within the scope of this product, there will be one base mobile application that is developed, to be utilised via three distinct product offerings. What follows is a description of the proposed pricing and sales strategies to market each of these products and services that will be offered. 3.1 Pricing and Sales The main application that is going to be developed involves the synchronising of various songs and musical compositions that are specifically timed to the length of the individuals workout and the speed at which they exercise based upon predetermined algorithms. Within the application itself, the product can be offered on a smart watch, mobile smart phone, or other Internet enabled device. For those consumers that do not wish to have streaming Internet service, a one time fee based program can be offered via a walkman style device that has preloaded songs already loaded in and the program ready to calculate specific genres and speed of workout figures. The one downside to this product will be that the songs will be set, eliminating any new releases and the further limitation of a smaller available musical library. At the same time, the price will be lower. For consumers that opt for more choice, however, the option will be given to have a monthly subscription that provides access to literally hours of new music each month, each tailored to the musical tastes of the individual. The monthly subscription includes all loyalty and licensing fees that the developer is obliged to pay to the music industry, so the consumer is free to just listen and workout. Alternatively, a third option is cheaper streaming option that also contains short advertisements at the beginning and ending stages of each workout in order to pay for the service and the licensing requirements. Each of these three pricing strategies is designed to target as wide a potential consumer audience as possible, within a range of budgets as well (Cakir 2013). 3.2 Products and Services The streaming advertising free version of this product will cost $19.99 per month initially, which is inline with other competitors currently entering this particular market. An advertising component will be priced at $5.99 per month, and will be limited to music that does not involve new releases. Finally, a one time purchase of $79.99 will enable users to access the program and software, in addition to a streamlined version of the music library with songs and compilations already specifically timed for consumer exercise routines. The cost to integrate and deliver the product will be based on a commission system through one of the various app providers one the market today. Those initially targeted with be the iTune medium through Apple, in addition to Android and Samsung. Each of these providers, once the app is approved, will provide the app for sale via one of the available smart enabled devices that the product is designed for. The company will then receive a set percentage of all sales, after allowing for commission and licensing based expenses. All pricing mechanisms will be inline with other competitors, with this product being set apart by its range of available services, meeting different budgetary desires, and a constantly updated stream of music to provide variety within the workout routine of the consumer (Wiebrands 2012). 4. Risk Management In order to minimise any inherent risk when developing and marketing this product, the first key business relationship that must be established is with the major mobile application service providers in the marketplace today. Without these companies providing a platform by which the app can be purchased, the product and services offered would quite literally be dead on arrival. Based upon the amount of labor that must go into the product design, there is not much of a concern for new competitors to suddenly steal a market share. At the same time, one a competitor does develop the timing mechanisms involved, and the licensing approvals from music producers, the product could get to market in a relatively short amount of time (Shankar 2009). As such, it is important to be ready with an aggressive marketing strategy aimed at getting the app itself into the hands of as many consumers as possible within the first year. This will develop a solid name recognition and reputation within the industry that will make it difficult for new competitors entire the field to capitalise on. During the testing stage of this product, various individuals were asked to test out the product in an effort to determine demand. Individual fitness enthusiasts overwhelmingly have made the claim that they are motivated to work out when they are able to listen to music, but it is often difficult to find just the right sound and beat to gel with their specific routine and speed of exercise. The initial tests of this product have revealed that there is a need for a product that pits specific music choices timed to the specific length of a workout, in addition to providing a range of music that fits the taste of individual with varying musical interests. There is no scenario where the public would necessarily perceive this product in a negative light, but there is certainly the risk that the specific demographic group targeted by the product may not discover its applicability and worth to their particular lifestyle. As the product is unique and fits a particular niche within a limited market, the key will be to target any advertising and promotional campaign directly to fitness centres and other venues where exercise enthusiasts are likely to encounter the app in use (Cha 2015). 5 Budget and Financing The beauty of this product is that much of its design can be outsourced. As such, the main salary feature of any budget will be limited to the creator of the app itself, and that person will likely forgo any salary during the development stage until the product is sold. The creator himself will work to time the songs, test the product, and work with the software developers to finish the prototype and get it to market within six months. The main expense in this area will be to outsource the actual software design to a third party for a mutually agree upon set fee that is lower than standard, in exchange for a share of future commissions (Gao 2014). This will lower initial startup costs and enable more money within a total budget of 200,000 pounds to be utilised for marketing and promotional expenses. Another expense will involve licensing fees to music producers, but again these will be negotiated ahead of time such that there is minimal up front expense, in exchange for fees being paid when consumers purchase either the one off fee, or the streaming music version of the app itself. An emergency contingency fund of 20,000 pounds must be maintained at all times to ensure that adequate cash reserves are on hand for any last minute expenditures that will inevitably come up from time to time. The remainder of the money that exists in the budget must be used wisely through the creation of an effective and targeted advertising campaign. Partners need to be enlisted to help promote the app itself, such as via fitness centres and magazines, in addition to any other venue where consumers interested in cardiovascular exercise tend to frequent (Kurkovsky 2014). 6. Marketing and Advertising There are multiple factors that will influence consumers to purchase this particular product, but convenience and ease of use must be considered to be among the most significant. Individuals that end up purchasing this app will be those that desire to listen to music targeted to their specific workout routine and style, yet who also desire a non invasive device that is simple to use and does not detract in the least from their actual workout (Pribek 2012). Awareness of this particular product can be built by establishing partnerships not only with the major mobile application distribution platforms, but also via various fitness oriented businesses that might agree to help market the product to its customers. Once a need for the product is established within the marketplace, the aim is for advertising to reinforce the message that music can make exercise more fun in invigorating, thereby motivating more individuals to take part. When customers see the product being advertised, the hope is that they will respond by expressing a desire to test the product out within their own workout routine (Persaud 2012). At this same time, as consumers begin to use the product itself, word of mouth advertising will become highly effective due to the unique nature of the services being offered by this mobile application. While many may not know of the possibilities that this application provides today, as they encounter various friends who have utilised the product sales should begin to take off exponentially. Once again, Within the scope of this product, there will be one base mobile application that is developed, to be utilised via three distinct product offerings. What follows is a description of the proposed pricing and sales strategies to market each of these products and services that will be offered. References Cakir, F. (2013). The effect of mobile Ads to consumers purchasing behavior. International Journal of Economic Perspectives, 7(3), 81. Cha, J. (2015). Application of multidimensional scaling for marketing-mix modification: A case study on mobile phone category. Expert Systems with Applications, 36(3), 4884-4890. Gao, J. (2014). Mobile application testing: A tutorial. Computer, 47(2), 46-55. Persaud, A. (2012). Innovative mobile marketing via smartphones. Marketing Intelligence and Planning, 30(4), 418-443. Pribek, J. (2012). Legal cents: Marketing in a mobile world. Wisconsin Law Journal, 1(1). Kurkovsky, S. (2014). Using ubiquitous computing in interactive mobile marketing. Personal and Ubiquitous Computing, 10(4), 227-240. Shankar, V. (2009). Mobile marketing: A synthesis and prognosis. Journal of Interactive Marketing, 23(2), 118-129. Wiebrands, M. (2012). Building mobile library applications. Australian Academic and Research Libraries, 43(3), 254. Read More