Market Summary Our mission is to build brand value by delivering electronic devices that are simple, affordable, and are eco-friendly. Our main points of differentiation are sound quality, superior usability, and battery longevity. We will provide both the hard and soft products that satisfy the needs of a variety of customer segments through our website, and offer our physical product through various retail channels.
Group 3 Term Project
Dec 06, 2014
Introduction to Marketing Group 3 Term Project - Digital Hand Held Music Players
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Market SummaryOur mission is to build brand value by delivering electronic devices that are simple, affordable, and are eco-friendly.
Our main points of differentiation are sound quality, superior usability, and battery longevity.
We will provide both the hard and soft products that satisfy the needs of a variety of
customer segments through our website, and offer our physical product through various retail channels.
Market DemographicsNeeds: A simple component under one hundred dollars with full download and one track options
Trends: Population prefers data downloads and is not overly concerned with album covers and linear notes
Growth: a decent portion of the market would love a high-fidelity format at any price.
Situation AnalysisInternal Factors Strengths External Factors Opportunities
Unique product - Great SoundMedia sales learns from all
sources of experience in the sale of digital media
Current relevant and specific market research
Break-out organization with fresh talent
Lack of successful iPod competitor
Flexibility to pursue micro markets
Break-out indie-artistsLarge (blue ocean) marketSuperior fidelity to MP3Web based market research is
easy for responders
Situation AnalysisInternal Factors Weaknesses External Factors Threats
Unclear industry positionProduct involves intangibles
and service aspectsHigh entry price-pointLarge filesLimited fundsEntering a market with large
established competitors
Apple dominates the marketWeak economyMany survey respondents are
unconcerned with increased fidelity of sound
Frequency of upstart failuresNew innovations in music
delivery
Industry analysis
Competitors Company analysisApple Sony
Superior sound to AppleBetter library management
than Sony
Strategic focus and plan
Mission: To deliver a differentiated digital music player unlike any heard before with enhanced audio capabilities for Crystal Clear sound.
Goals: To enter the established digital music player market with unique differences that create brand specific demand.
Core Competency and Sustainable Competitive Advantage: Dedication to superior sound quality, ease of use and battery longevity.
Project Objectives - Target Market Our goal is to market our product to as many
consumers as possible, without limiting our potential customer base. However, we found that individuals in the age group of 65 years or older are significantly less likely to have internet access at home. Since our
product will require the use of a computer and internet, we will focus our marketing on the younger market segments.
Trends in Music Sales Digital music sales projection: United States Worldwide
• 2006: $1.9 billion • $ 2.9 billion • 2007: $2.8 billion • $ 4.5 billion
• 2008: $3.7 billion • $ 7.0 billion • 2009: $4.5 billion • $10.7 billion • 2010: $5.2 billion • $12.9 billion • 2011: $5.7 billion • $14.8 billion
Marketing and project objectives - Points of
difference:High quality soundVarious storage/price optionsNew indie artists/ cutting edge of music sceneEase of useBattery longevity
Marketing and Project Objectives - Positioning
Wide market stancePremium quality Penetration
Basic Player: under $100Mid Player: increased
storageHigh-End Player:
Premium product for the discerning listener
Our signature player Commands Clarity
Product Marketing Program – Digital Player
Product Marketing Program - Digital Music
Complimentary product: Experimental FormatsSign new artistsFlexible fee structuring
Marketing Program - Pricing
Basic Player - $99Mid Player - $199High-End Player - $349 Online music - $9.99/album, $0.89/older songs and $1.09/new songs
Marketing Program - Promotion
Advertising Logo: Crystal Clear – Command ClarityInternet Promotion: Social Networks such as Face
BookUnsigned ArtistsDevice comes with preloaded music
Place / Channels of Distribution:
RetailersCompany WebsiteFlexible StructurePeriodic Analysis
Financial Data and projections
Financial Objective :
As evidenced below Apple has a commanding lead on other competitors, such as Sony, selling 90% of their combined sales in 2008.
Five year projection:
Implementation plan
Contract with outsourcing companyGain brand recognition through
Innovative advance advertising campaign
Release the physical product for sale at retailer stores on Black Friday
Evaluation and controlSet quarterly sales goals and assess progress using
various dashboards and analysis toolsMonitor market and geographic trendsCompare actual sales to the set goals Implemented marketing strategy accordingly. Retail sales vs. online sales will also be examined to see if
direct selling our product will be feasible.
BibliographyApple Inc.ASCAPCHAPTER 20: RECORDED MUSIC. Hand Held Audio SurveyZUNE
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