Marketing - I-Fun Game Console - Case Study Example

Part 2 Student’s Name: Course Code: Instructor’s Name: Date of Submission: Product Strategy Marketing mix (product, place, price and promotion) is critical in product penetration strategy. This inturn guarantee higher sales and thus the success of the product and subsequent market leadership of the company as it allows marketers to address the value needs of a given market segment which ensures brand equity (Borden, 1964). Type of Product I-Fun Game Console is a multimedia interactive game that is designed to output video signal and display them in a separate visual output platform/ screen such as television for entertainment purposes. The images are designed in a fashion that an individual can manipulate them by utilising an accompanying hand held device that is linked to the console which is also referred to us as controller. This controller is designed with numerous buttons that are assigned numerous functions so as to allow users to interact and control the video on the screen. The rationale for this product is based on the social needs as outlined in the PESTEL analysis. The target segment (18-35 years) is in need of entertainment gadgets that are indication of their social status, highly portable and full of advanced features. Indeed, these are what I-Fun addresses. Moreover, the linking of the product with Apple brand is a plus since over 65% of the respondents in the marketing research (strongly agree 35.9% and agree 30.77%) felt that Apple should invest in game console and 80% observed that Apple should provide space for customers to try game console. This elicits confidence since people are wowed by the idea based on the firm’s brand equity and thus, a guaranteed sale. Product Description Design The i-Fun video Game Console is rectangular in shape with dimensions of 80 ML for the width, 150 ML for the length and 15 ML for the height and in varying sizes of 16G, 32G and 64G. For instance, over 76% felt that Apple should produce light and easy to carry game console. Indeed, slim product line is what Apple has been known for. The outer cover is made of plastic that comes with black or white and an engraved front logo of i-Fun that is luminous and designed with multiple colours. However, with different tastes in colours, a customised cover can be delivered within three weeks of request. The above design is in tandem with customers’ requirements. For instance, over 76% felt that Apple should produce more colourful products. Photo 1: I-Fun Video Game Console Features and Quality I-Fun comes with numerous enhanced functionalities such as internal hard drive that stores built-in games or 512 MB internal flash memory, disk drive that can play blue-ray disc, capacity to download directly from app stores via internet, and ability to be connected with up to 4 controllers. Other functionalities include USB, Wi-Fi, and HDMI connectivity. However, for one to enjoy downloads at i-Fun store, the customer will have to create an account that includes the device code. This equally allows customers to interact with the customer care on technical issues. In the i-Fun store, one can download adventure games, action, shooting and sports among others. . For instance, in the marketing research it was established that the reason for choosing Apple products are because of high quality at 66%, multiple functions at 43.18%, fashionable design at 25%, fame of brand at 18.18% with price receiving least consideration at 2%. Indeed, the features in i-fun contribute towards these parameters. Use of Same Brand Indeed the product will use the same brand name and logo. The naming of the product already suggests so as it has taken the prefix “I” employed by Apple Inc in their entire product range such as iPad, iPod, iPhone & iMac among others. The grounds for such trend in the naming of the product is anchored on the concept of brand equity and its derivatives such as perceived brand quality, brand loyalty and brand association & awareness (Yoo, Donthu, & Lee 2000, p.195). For instance, Apple Inc has built a reputation as an innovative firm with a slim range of products and thus i-Fun game console would ride on the same. For example, respondents noted the reason for choosing Apple products is because of high quality at 66%. Moreover, over 87% of respondents felt that Apple’s products are of high quality. Secondly, the firm has loyal customers owing to the positive reputation and this is likely to be transferred to i-Fun. This view is corroborated in the marketing research where most respondents aged 20-25 observed that they specifically own iPhone and iPad. Equally, over 65% felt that Apple should invest in game console and thus, it would beat logic if the product is presented with a new brand name instead of the established one that the customers have become aware of and associated with constantly. Packaging Appropriate packaging ensures product reaches the customer in the same condition it left the company’s warehouse. The product will be packaged in a fitting box with shock absorbers to avoid damage during transit. The box will contain a photo showing the replica of what is inside and various functionalities. The information to be included in the package include model number, structural measurements, electrical circuit & mother board, features and their functions, accompanying equipments, warranty/ guarantee, contacts, operation guide and troubleshooting manual. Stage of the Product Life Cycle At industry level, the video console game is in the seventh generation with eighth generation of pipeline. The i-Fun being to be launched is an eighth generation video Game Console. Under this generation the focus is not only on hardware improvement, but also on integration with other media and enhanced connectivity . Promotion Strategy Objective of Advertising The overall objective of advertisement would be to enhance brand visibility in consumer memory and purchase of i-Fun through well calculated and designed information in all media platforms that stands out among clutter so as to enhance rate of memory recall among the competing advertisements. As such, the advertising stresses on the customer needs as highlighted in the marketing research which include high quality at 66%, multitple function at 43.18% and fashionable design at 25%. The rationale for such choice of objective is anchored on the integral role of advertising in convincing prospective clients about the value to be derived out of a product in the event of purchase (Pickton & Broderick, 2005, p.458). According to Yoo, Donthu, & Lee (2000, p.195) the link between advertising, brand and market leadership/ repeated purchase is the creation of brand equity. Well ochestred adverts leads to brand equity which in turn create brand awareness, perceived quality, brand loyalty and brand association which are critical ingredients in influencing purchasing behaviour and thus, market leadership and dominance. Promotional Element Promotional elements under promotion mix include actions such as advertising, personal selling, publicity, sales promotion , exhibitions, corporate image and direct marketing. All of these elements can either be classified as direct face-face communication or indirect communication.The promotional element to be used is advertisement. The premise for choosing advertisement as the principal promotional mix element is anchored on two rationales. The first justification is the wider reach and platforms for delivering adverts. Advertisement can be delivered through various platforms and with varying levels of creativity & design such as Radio, emails, Print advertisements, In-store display, advertisements in Television, Billboard, Direct mails, banner ads, web pages, Brouchers & Cataloges, posters and motion pictures as such this guarantees wider reach because at least an individual is likely to interact with one of these platforms. Secondly, advertisement can be used to either targets prospective purchasers who might be aware or not aware of the product or regular customers who might be aware or not aware of the product. This is opposed to other mechanism which might be target specific (Kent & Allen, 1994). Component of the Promotion in Detail This is a 30 second advert that combines all components of multimedia. In the video advert, a liquid gold spills across the screen in a T-100 style and then consolidates into a i-Fun video console embeded with a background soundtrack of “Ohh La La” from Goldfrapp’s. After formation of the gold into an i-fun video console, a pointer finger emerges from the top edge, selects the home button and unlocks the i-Fun and the highlights the advanced features of the video game and the pricing. Choice of Media for Advertising Over the years, Apple Inc has been using advertising platforms such as magazine, radio, TV and internet (Gianatasio, 2013; Hamburger, 2013). The media platform that I would use for promotion is the internet/ website and it will be on a 24hours basis throughout the promotion period. The one rationale for the choice is the ubiquity/ reach and penetration nature of the of this platform in UAE. This means that any interested party can see the advertisement whenever he or she is. Indeed, the markerting survey points towards this observation. For instance, 76.92% reported that internet promotion suits them better as compared to advertisement in magazine at 15.38% and advertising on TV at 30.77%. Growth of internet enabled telephones and social media equally supports this choice. For instance, it is estimated that UAE has a population of 8, 264, 074 by 2012 yet 5, 859, 118 are considered internet users. This constitutes 70.9% of the population. Moreover, social media users for instance facebook is estimated at 3, 442, 940 (Internet World Stats, 2013). Thus athis choice presents a wider reach. According to a 2008 survey, 99% of households in UAE had at least one mobile phone, 74% had computer, 745 of those aged 15-74 in last 12 month had used a computer at home, 66% of household had internet access at home and at least 62% stated that one of the uses of internet is to get information about products or services (UAE Telecommunications Regulatory Authority, 2009, p.12-13). Such positive trajectories indicate that the media for advertisement in UAE is internet/ website platform. Pricing and Distribution Pricing Strategy The pricing strategy to be adopted is based on Bowman’s strategy (Sengupta, 2005, p.12). For this product, the pricing strategy will be focused differentiation strategy. The plausibility of this choice/ strategic position is anchored on the premise that Apple Inc produce high value product and services at high prices. Consumers perceive these high valued products and services as having high values for their monies and thus will pay for them. Burrow (2008, p.34) reiterates that consumers will buy the high valued due to the perception created from the high price. Existing Distribution Strategy Apple Inc. has adopted a direct distribution channel whereby it sells its products through their stores or through an online store. Additionally, Apple has certified retail/flagship stores located in various locations. Lastly, they rely on wholesellers who are in the business of resseling electronic gadgets such as video console games. The direct marketing strategy was chosen so as to curtail middle men who might be out to exploit consumer or to reduce corrupt delears who might sell non authentic brands that are not from Apple Inc. indeed this preference for direct sales either online or through their stores is affirmed with prefered purchase outlets by consumers in UAE. Most respondents (52.27%) noted that they purchase Apple products from Apple stores. Apart from the Apple stores, they equally purchase from certified or authorised distributors of Apple such as Axiom Telecom at 34.09%, Etisalat/ du at 22.73%, Sharaf DJ at 15.91% and lastly, through the online platform at 9.09%. Use of the Same Distribution Strategy Indeed, the company should utilise the same distribution strategy so as to leverage on the existing resources. Since Apple Stores are the most coveted sales outlet by consumers, it would beat logic if the firm tries to establish another new distribution channel yet the existing one is serving the functioning. Indeed, this direct distribution offers a leeway for gaining feedback from customers directly as opposed to authorised distributors who might also deal with competitors’ products. Effective Utilisation of e-Commerce The concept of people of other businesses being able to buy and sell products over internet and web has grown tremendously. This is based on the fact that it is real time, ubiquitous and does not require physical presence. The two way that the firm can effectively utilise e-commerce is to establish business to consumer relationship through direct sale relationship in what is dubbed as ‘Apple online shop’. The second way that the firm can utilise e-commerce is through business to business relationship where they can enter into agreement with authorised distributors and partners to have a purchase portal displaying Apple products. References Borden, N. H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2), 2-7. Available at: http://www.commerce.uct.ac.za/managementstudies/Courses/bus2010s/2007/Nico le%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing.pdf. Burrow, L. J. (2008). Marketing. London: Simon and Schuster. Gianatasio, D. (21 October, 2013). All that’s gold doesn’t glitter in Apple’s first TV ad for the iPhone 5s follows 5c spots. Aveilable at: http://www.adweek.com/adfreak/all-thats gold-doesnt-glitter-apples-first-tv-ad-iphone-5s-153276. Hamburger, E. (20 October, 2013). Selling gold: Apple debuts its first iPhone 5s TV spot. Aveilable at: http://www.theverge.com/2013/10/20/4858986/selling-gold-apple debuts-its-first-iphone-5s-tv-spot. Internet World Stats (17 February, 2013). United Arab Emirates Internet usage, broadband and telecommunications reports. Available at: http://www.internetworldstats.com/me/ae.htm. Kent, R. J., & Allen, C. T. (1994). Competitive interference effects in consumer memory for advertising: the role of brand familiarity. The Journal of Marketing, 97-105. Available at: www.jstor.org/stable/10.2307/1252313. Pickton, D., & Broderick, A. (2005). Integrated marketing communications. Available at: http://sutlib2.sut.ac.th/sut_contents/H72683.pdf. Sengupta, S. (2005). Brand Positioning: Strategies for Competitive Advantage. London: Cengeage Learning. UAE Telecommunications Regulatory Authority (2009). UAE ICT SURVEY: Access and Use of Information and Communications Technology in the UAE. Available at: www.tra.gov.ae/download.php?filename=UAE_ICT_Survey_en.pdf. Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211. Available at: http://jam.sagepub.com/content/28/2/195.short. Read More