Identifying Value and Positioning with Sonic PDA - Essay Example

Identifying Value and Positioning with Sonic PDA By YOU YOUR ACADEMIC ORGANIZATION HERE HERE Identifying Value and Positioning with Sonic PDA Target Customers and Intended Benefits Sonic is targeted a wider demographic that lacks a specific focus in relation to age group, however this offers Sonic some flexibility in determining a proper method by which to position the new product. For instance, their target consumers are professionals, students, corporate users, and entrepreneurs, each demographic having unique needs for using a communications tool like the Sonic PDA. Hence, the intended benefits sought will likely vary by individual target group. Wireless email and voice recognition, allowing for instantaneous and hands-free communication will likely be sought after by the professional and business-related consumer in their identified market. The ability for students to use peripheral devices with this PDA will offer them more flexibility as well in relation to educational objectives and similar obligations. Boone & Kurtz (2007) suggests that many marketing entities follow several different positioning strategies, hence the Sonic PDA does not have to limit its potential brand equity by catering to only one demographic group, such as positioning the PDA based on only pricing in relation to competition. However, pricing positioning strategies would be most beneficial for Sonic as their target demographics would all, in some capacity, relate to wanting a quality piece of merchandise for less than competition which maintains all of their individual needs as successful business persons. Having a voice recognition system built into the Sonic device further allows them to capitalize on price in positioning by suggesting that the price is not only low, but it is backed up by additional features that you won’t find in competitive PDAs. Positioning could also be adjusted by reconsidering the pricing objectives of the device by again capitalizing on its features that others in the marketplace do not offer. The voice recognition technology represents significant flexibility on behalf of the business leader (and others potentially in their target demographics) which, if positioned according to product class could appeal to a wealthier demographic (as described in Sonic’s case study) as a superior device based on features and the benefits to a sophisticated end user. Sonic is in no way limited by its broader target markets and can adjust the brand to fit anywhere on a positioning map if they feel that sales revenues or customer interest is waning, as this is already a maturing market for these types of devices. This would tend to suggest that Sonic may experience an eroding brand in a relatively short period in the product’s life cycle, so they should be more aggressive with establishing a positioning strategy that they believe will increase total sales revenues. Sonic’s Value Proposition “Delivering quality and hands-free communications control with user flexibility and voice-capable adaptability unrivaled in the competition for the price”. Potential Competitor Products Having little practical knowledge of the PDA product, it has been identified that Sonic maintains a wide variety of competitors, likely an outcome of late market entry. Samsung, Dell and Hewlett-Packard are a few of the names in the marketplace that have already experienced a likely degree of brand loyalty and significant brand equity. Hence, Sonic would be hard-pressed to create a variety of potential PDAs that were not already saturated on the market. Their new device that has voice-recognition is their competitive edge from a mature market standpoint. Additional features could include, as allowable by budget issues or manufacturing capabilities (requires financial and operations review), voice recognition for hands-free online browsing (a strategy to increase the Sonic life cycle) or even other wireless features that few or no competitors maintain. This would likely require an analysis of quality assurance capabilities as well as operations-related budgets and an assessment of the external competitive environment (Nickels, McHugh & McHugh, 2005). Sonic’s Core Benefit After reading the case file, it would appear that the Sonic PDA core benefit is its price in relation to competitor products. It seems the firm is even willing to sacrifice first and second year profit in pursuit of maintaining a low price as a potential positioning strategy as the company’s distinctive offering (Kotler & Keller, 2006). Sonic is aware that its competitor products maintain a wide variety of different features, thus it will likely require aggressive marketing and a proper positioning strategy to lure customers to this new brand. The company maintains the ability for flexibility in creating a proper brand image, but they need to be realistic regarding competitor products and unique core product benefits. Brand Benefits As previously identified, brand attributes are quality, hands-free communication capabilities, ease of use, and peripheral device capabilities. Their additional features, such as wallpaper and different colors, will likely not be extended benefits which will raise consumer interest as these are common features on today’s PDA devices. They must remain focused on maintaining a competitive edge by investing in research and development to create new technologies to keep the brand fresh in the minds of the consumers. Once Sonic has managed to create solid brand recognition and, perhaps, brand loyalty, they can build their product as a flexible brand that is fully updatable. Packaging as Marketing Strategy Ecologically-friendly consumer behaviors are at a high in modern society, with focus around neighborhood renewal, urban development and liveability agendas for community improvements and quality living (Mathis & Gross, 2004). Sonic maintains the ability to appeal to the environmentally friendly initiative by creating a series of bio-degradable packaging and really promote their focus toward corporate social responsibility. A customer can keep the planet sustainable by choosing Sonic. In addition, packaging can be accomplished to create a modern, sexy appeal that would be attractive to the younger demographics based on their psychological profiles. Colorful shapes or modernistic logo design can create differentiation between competitor products which are perceived as devices of the here and now, while Sonic is already thinking toward the future. This would appeal to the contemporary and abstract consumer who wants to grow with an evolving brand. Again, promotional activities related to how to best communicate Sonic’s proactive brand message would need to be considered heavily. References Boone, L. & Kurtz, D. (2007). Contemporary Marketing. 13th ed. Thomson South Western: 303. Kottler, P. & Keller, K. (2006). Marketing Management. 12th ed. Pearson Prentice Hall: 309. Mathis, C. & Gross, A.N. (2004). Toward the Sustainable Community Agenda. Blackwell Publishing. Nickels, W., McHugh, J. & McHugh, S. (2005). Understanding Business. 7th ed. McGraw Hill Irwin. Read More