Ladybug Cell Phones, Phase I - Essay Example

Ladybug Cell Phones, Phase I Ladybug Cell Phones, Phase ICompany’s market opportunity  In today’s business environment, it is vital to have an edge on the competition. Therefore, calculating profitability, as well as evaluating potential progress, is also essential to the maintenance of successful business operations. These processes describe the analysis of a company’s market opportunity (Stevens et al. 2006). The analysis of a company’s market opportunity is useful in the determination of the company’s prospects in terms of future progress and profitability. Analysis of market opportunity also enables an organization determine whether or not its products or services will be beneficial to the targeted consumers. Market opportunity analysis is also effective in determining the cost implication of whichever direction the company opts to adopt in its market strategies. Companies require help in determining whether they have necessary tools available to them to facilitate the provision of adequate services to their consumers. In essence, the analysis of market opportunity ensures that an organization finds out its most cost effective return on investment. This allows the organization to operate and participate in markets that provide the highest possible value of return on investment. This ultimately ensures short and long term business profitability and sustainability. The consumption of cell phones is continuing to grow exponentially within the senior citizens market both within the country, as well as across the globe. The market for cell phones across the globe continues to increase as the world shifts from the traditional to modern systems. This includes ways of performing functions such as communicating through letters to a new technologically advanced system of operation. Technological advancements continue to occur in the world pushing people to adopt the latest and trendiest ways of communicating and keeping in touch. Senior citizens have not been left behind in their need to maintain communication with their families and friends. Ladybug will particularly appeal to the senior citizens who seek easy ways of maintaining communication with their friends and families. It will also appeal to customers who seek cell phones that entail the least amount of technological difficulties. Notably, senior citizens prefer cell phones, which encompass as little hustle as possible, particularly with regard to the ease of use and cost implications. Evidently, senior citizens are not trend setters thus do not appreciate high product costs in light of noteworthy cell phone features. On the contrary, the company appreciates that senior citizens desire cell phones, which are easy to use and encompass few and clear features (Stevens et al. 2006). Market Segmentation Strategy Market segmentation strategy entails subdividing the market into a number of groups in which individuals exhibit similar wants, needs and characteristics. Segmentation could also be on the basis of economic status, culture or behavior. In essence, market segmentation is the process of defining and dividing a massive homogenous market into noticeably identifiable sections with similar wants, needs and demand characteristics (Weistein, 1993). Before marketing the Ladybugs, the company needs to appreciate its customers and determine ways of satisfying the needs of these customers. This is vital to stay ahead of the competition in the cell phone industry and to ensure the company builds a strong brand. This is only possible through the conduct of extensive market research. While it is rather difficult to understand and satisfy individual cell phone needs of all senior citizens, a definite market segmentation strategy will help the manufacturer create a market to accommodate groups of individuals. This will ultimately make economic sense allow mass production and distribution of the Ladybug cell phones. A viable market strategy aims at understanding different segments and their individual needs, works on the distinct, common needs and responds immediately to fulfill these needs. The firm’s segmentation strategy centers on a number of variables such as geographical, psychographic and behavioral segmentation variables. The firm’s psychographic segmentation strategy will differentiate senior citizens according to their values and lifestyles. These elements dictate the consumption and procurement trends of the market segment. Psychographic segmentation considers how the citizens’ opinions, attitudes, values and interests influence their choices to acquire cell phones (Weistein, 1993). For instance, wealthy senior citizens are likely to acquire the most expensive versions of Ladybugs while thrifty senior citizens may detest the cell phones altogether. Geographic segmentation is also a viable strategy for marketing Ladybugs. Geographic segmentation will entail dividing the market (senior citizens) into diverse geographical locations such as state or neighborhood, which will help the producer to understand where to sell the firm’s products (Lele, 1992). For instance, certain states have higher populations of senior citizens than others thereby provide immense market opportunities. Lastly, the company’s market segmentation strategy will also encompass behavioral segmentation. This segmentation strategy centers on customers’ needs and their subsequent reactions to these needs or towards purchasing the intended products. Behavioral segmentation considers elements such as brand loyalty, cost effectiveness with regard to usage and benefits, and whether willingness to buy is relative to the customers’ status. For instance, certain senior citizens may demonstrate brand loyalty to Ladybugs hence the firm will need to retain such market segments. Customer Relationship Management Strategy The purpose for which companies create customer relationship management (CRM) strategies is to concentrate and augment its knowledge about customers. The company ultimately makes proper use of this knowledge in enhancing and customizing its interactions with customers to sustain longstanding relations with them (Wunker, 2011). The Ladybugs producing company’s CRM will amplify its commitment to its customers by involving all the company’s departments such as sales, distribution, manufacturing, finance, marketing among others in intensifying customer relations. It is thus crucial that all departments remains informed about the developments and implementations performed within the firm. This will allow all departments to have sufficient information when communicating with the company’s clientele. Customers require information from all company departments; hence all departments must be conversant with all developments that occur within the firm. The company’s approach towards its customers must always be positive and resulted-centered. The firm should also establish a valuable project team consisting of experienced and dedicated professionals who are the vital decision makers in the CRM process. This team will be responsible for communicating the details and benefits of the CRM approaches to members of the entire organization. For instance, management professionals will offer motivation, management and leadership at all strategic development stages, particularly in case of changes in business processes. Technical professionals will automate CRM strategies and offer their valuable contributions in creating and managing software applications (Wunker, 2011). They will also ascertain the software’s compatibility with Ladybugs’ existing software features. Sales and marketing professionals are the end users of CRM strategies since they interact personally with customers. These professionals will also offer valuable feedback on the strategies’ effectiveness. The firm’s CRM strategy will entail the treatment of customers with the utmost respect and professionalism. This will also be evident when dealing with customer complaints both within and without the organization. The firm’s CRM will focus on the firm’s business requirements through a series of questionnaires and surveys. These surveys will collect the company’s expectations concerning the approaches implemented. The firm will use an orderly, automatic and system-wide CRM practice to enable the company to appreciate who its target customers, as well as ways of effectively influencing the customers’ behaviors, thereby boosting the company’s bottom line. Data collection in the course of a reasonable time frame will allow all franchises selling Ladybugs cell phones to collect timely and accurate customer information (Ward & Peppard, 2002). The company will, therefore, collect customer information constantly to enhance its customer information base. Strategy for Collecting Information about Potential Customers  Data collection about potential customers is an integral part of effective CRM strategies, as well as sales and marketing initiatives (Shapiro & Varian, 1998). Data collection strategies need to be comprehensive enough to gather all forms of information thereby facilitate effective business operations. Since the company plans to launch sales of Ladybugs phones in one year’s time, the firm has sufficient time to collect customer information. This time is also sufficient for the firm to make use of information about potential customers in the senior citizens market. The company will utilize diverse information collection strategies to ensure that it collects ample information about its potential customers. For instance, the firm will use surveys, questionnaires and checklists to collect information quickly and easily from a large proportion of the senior citizens market. This data collection approach is effective since it is inexpensive and allows potential customers to offer information anonymously. Although surveys gather information from many people, the questionnaires are easy to administer, analyze and compare information. Another viable approach is documentation review, which is effective when the company does not intend to interrupt the lives of its potential customers. Documentation review will allow the firm to acquire historical and comprehensive information, which is already existent. However, this information collection restricts data collection to information that already exists and which may be incomplete (Shapiro & Varian, 1998). The company can also collect information concerning its potential customers through observation. This strategy will allow the firm to gather accurate information by observing the customer trends such as tastes, preferences and purchasing behavior within the market. Lastly, the form can also use focus groups to collect information about its potential customers. This data collection strategy entails the exploration of a topic in depth through group discussions, for instance, collecting potential customers’ views of Ladybugs phones. This collection strategy is quick and highly reliable particularly in terms of getting common customer impression. References Lele, M. M. (1992). Creating strategic leverage: Matching company strengths with market opportunities. New Jersey: Wiley. Shapiro, C., & Varian, H. R. (1998). Information rules: A strategic guide to the network economy. Boston: Harvard Business Review Press. Stevens, R. E., Loudon, D. L., Sherwood, P. K., & Dunn, J. P. (2006). Market opportunity analysis: Text and cases. New York: Routledge. Ward, J., & Peppard, J. (2002). Strategic planning for information systems (3rd ed.). New Jersey: Wiley. Weistein, A. (1993). Market segmentation. Chicago: Probus Publishing Company. Wunker, S. (2011). Capturing new markets: How smart companies create opportunities others dont. New York: McGraw-Hill. Read More