Product Assessment of Blu-Ray Disc - Essay Example

Product Assessment of Blu Ray Disc Product Assessment of Blu Ray Disc The paper attempts toprovide product assessment of blu ray disc technology with respect to its target market and reasons for its decline in the particular market. The paper further provides recommendations for setting things right for the target market and the product itself while examining the potential of the product in India. Lastly, the paper discusses product segmentation and positioning ideas in India. The Product with Target Market Blu ray disc is the new technology which was designed to supersede DVD technology. It is an optical disc which performs the function of recording, rewriting and has the ability to store a large amount of data. Considering the storage, it can offer a storage space of 5 times greater than the DVD’s. The disc was jointly developed by Blu Ray Disc Association (BDA) with companies that are the leading manufacturers in consumer products and computers. Blu ray uses a blue laser instead of red which is present in DVD’s and CD’s for much greater focus and precision. The concept had also been supported by Hollywood studios and planned to release their movies on blu ray discs instead of DVD’s (Taylor, Zink, Crawford, & Armbrust, 2009). The target market for Blu ray disc are the people who wants to store excessive amount of data or the market that has likes for watching movies in high definition with clear pixels. The corporate are also considered to be their target market considering different Hollywood studio who agreed to release their movies in blu ray discs. The U.S census data highlights that the total penetration of Blu ray devices in United States is 40.8 Billion. The total spending on the blu ray disc in 2012 has been $2.22 Billion (Prange, 2012). The Decline of Product In today’s world, technology is changing at a rapid pace and so are the consumer preferences. The company develops a product on the basis of preference for consumers and their interest. However, if a consumer finds right and suitable in adopting a technology which is much cheaper than the current idea then the new technology has chances of failure. Similarly, in the same context consumers preferences are changing and cheaper versions technology is being adopted. The U.S census data reports that the market for blu ray has declined from $2.6 Billion to $2.4 Billion (Edwards, 2012). The main reason being for this change is known to be an economic downturn. The age of digital download has arrived and customers are diverted to these preferences instead of buying a blu ray disc and storing the data. Digital download is a cheaper option and does not require money for downloading which makes it easier for the larger audience (Softpedia, 2008). The other major evidence includes Microsoft who has denied the use of blu ray technology in its X-box gaming product because Steve Ballmer CEO of Microsoft considers the technology has extinct. The CEO considers the increase in digital downloading has been the de facto for not associating this technology with their product. The changing media patterns, marketplace and online streaming has made it possible to obsolete blu ray technology which was considered to be the greatest experience for viewing videos. This changing pattern has raised concerns for different developers of this technology because they had equally participated for getting advantage in the future. However, the technology had been obsolete before the company could take any advantage. A technology better than blu ray has entered into the market which has grabbed the attention of a larger audience. Online streaming have become people’s new choice as it allows movies to download in an instant without finding a need to spend a huge amount of money on purchasing a blu ray disc. However, the use of CD’s, DVD’s and blue ray cannot be fully terminated as they can be used as file backup, but its use as movie creation, retail sales for movies has declined greatly (Softpedia, 2008). Recommendations The companies that have jointly developed the blu ray disc can target developing countries for the use of this technology. In developed countries, customers’ habits and preference have changed and it has been shifted towards online streaming but developing countries can still become a prospect buyer if companies plan to target their market efficiently. Marketing their product in developing countries like China, India and Brazil will be considered as a good option. The other recommendation includes companies can make contracts with corporations and Hollywood studios for providing their movies in blu ray format. It also includes banning their movies from digital download so the traffic of consumers could be diverted to purchasing blu ray discs. Their benefits should be communicated to every customer and should convey that it is the legal form of buying movies instead of buying movies through the internet with no legal fees. This option might attract a group of consumers who prefers ethical buying. The last option is to charge prices that are affordable for customers. As consumers have the option for downloading it digitally, companies should make this technology available for them at a cheaper price that could be affordable for everyone. Companies should adopt the strategy of economy of scale which includes developing of product in larger quantities for the mass audience. These recommendations would help companies in gaining competitive advantage. Foreign Country for Product Market The foreign country which could enable profits for the company is India. India is the biggest developing country and can offer great market for the blu ray technology. Majority of the population in India have a preference of buying movies from a retailer which could be a good opportunity for companies to take advantage. Companies can offer them price benefits so they could be able to purchase the product in larger quantities. Mass production should be adopted as it could level with cost of producing the disc. India has great potential in terms of new technology because people tend to adopt new preferences and ideas. The big population of the country allows various opportunities and a great deal of experimentation from companies’ point of view. Generally, a country that has a large population is considered to be a good option for companies as it has more chances of survival. In case of India, the market is much more to offer than survival. Companies should offer a wide range of products to offer for its customers as people have different preferences. Companies mutually can help the product in making huge profits in the country. Product segmentation and positioning ideas The majority of the market is expressed as teenagers who spent most of their time spending in watching movies and playing games. Companies can comprehensively target these groups because they account for a large number of audiences in the country. The positioning should be done as the cheapest product for viewing high definition quality pictures. This price competing strategy can attract billions of consumers in the country as IT boom is occurring in the country which could create billions of potential customers. The product can be targeted in various ways to different consumers who have different preferences. These preferences can be known by performing research in the country that highlights their needs for the specific technology. Companies can offer product synchronization with their core product. Sony is the leading developer of blu ray product which can associate the blu ray technology with its play station. The company can attract young generation for the purpose of marketing the blu ray technology. A successful product of the company can also lead other products to a height of success. Product segmentation can only be done while understanding the nature of the product and market. The growth of the variety of product with the target market can make a huge success for companies whi are trying bto make this technology a success. Reference List Edwards, C. (2012, March 22). Online Film Viewing in U.S. to Top Discs in 2012, IHS Says. Retrieved October 27, 2012, from www.bloomberg.com: http://www.bloomberg.com/news/2012-03-22/online-movie-viewing-in-u-s-to-top-discs-in-2012-ihs-says.html Prange, S. (2012, April 29). DEG: First Quarter Spending Continued to Stabilize in Q. Retrieved 27 October, 2012, from www.homemediamagazine.com: http://www.homemediamagazine.com/industry-news/deg-first-quarter-spending-continued-stabilize-q1-27114 Softpedia. (2008, March 17). Blu-ray Is Already Obsolete. Retrieved October 27, 2012, from www.softpedia.com: http://news.softpedia.com/news/Blu-ray-Is-Already-Obsolete-81001.shtml Taylor, J., Zink, M., Crawford, C., & Armbrust, C. (2009). Blu-ray Disc Demystified. New York: McGraw-Hill. Read More