Evaluating Market Potential and Targeting Audience - Research Paper Example

ID] [module and module number] Table of Contents I. Introduction 3 II. Body 3 A. Market analysis 3 i.Market demand 3 ii. Market supply 4 B. Marketing objectives 5 C. Consumer behaviour analysis 5 i. Motivation behind purchase (possible consumer insight) 5 ii. Purchase decision-making 6 D. Integrated marketing communications plan 7 i. Target audience 7 ii. IMC objectives 7 iii. Marketing communications mix 8 iv. Message strategy and execution 8 III. Conclusion 9 I. Introduction Despite the financial crisis that the world experiences today, a segment of the mobile phone market has been emerging and is growing healthy over the course of years. The dual-SIM handset market which aims to offer consumers access to two different numbers prove to be successful in different geographical market. This paper aims to develop a marketing plan which focuses on how to promote the dual-SIM feature of the handset that a mobile phone manufacturer is going to launch. This paper first analyses the market according to demand, supply, then effective demand to probe the potential for growth, then delves into the analysis of consumer behaviour of the target market for dual-SIM mobile phones, then marketing strategy and tactics as regards promoting the phone to the target market. The limitation of the analysis lies in the absence of hard marketing research data to come up with solid figures to describe the market. II. Body A. Market analysis i. Market demand The demand for mobile phones with dual-SIM feature can be estimated by determining the market potential of the product within the industry. This can be done by determining the portion of the market that is likely to use it, then the percentage of those who can afford it, and then those who are likely to buy it, at a given period of consumption and an average price. Since there are no hard market data is accessible for this analysis, the proper methodology will only be determined instead of coming up with a full-blown business plan. In getting the demand for mobile phones with dual SIM feature, the whole mobile phone market will be the basis for initial assessment. According to BBC.co.uk, in the UK alone, 80% of households have at least one mobile phone (Ward 2007). This translates to 19.92 million, or 80% of the 24.9 million households in UK by 2006 (Statistics.gov.uk). By knowing the percentage of those who are likely to use it, by establishing some criteria such as people who maintain two mobile phones at the same time, etc., the figure of those who are likely to use it will be derived. If an average mobile phone package per year costs USD 479.05 for UK users (CBC.ca), then those who could afford another package as dictated by other determinants of purchase will be measured as a percentage of those who are likely to use it. Finally, those who are likely to buy it, according to survey responses will be determined in order to measure the whole market demand for the dual-SIM mobile phone segment. Given this percentage, multiplied by the average mobile phone package cost per year the market demand is measured. ii. Market supply The market supply is determined by the number of handsets that contain the dual-SIM feature. The number of sales given a period of a year, for example gives the market supply for this segment of the market. Since the industry data is not widely available for the scope of analysis of this paper, the market supply can only be characterized by the major companies that supply them to the market. These major companies include Spice, Samsung, Fly, and Motorola (WirelessFederation.com 2008). According to the article from Wireless Federation, the industry is currently small because it is only recently that companies realize the huge potential of the product and the growing segment of consumers that are likely to buy dual-SIM phones (2008). Because the demand for the market is huge in contrast to the current supply, as mentioned by other major mobile phone manufacturers, the effective demand which is left for the company is still huge and still offers a lot of room for growth in the future. B. Marketing objectives The marketing objective will be a percentage of this effective demand that the company aims to capture. The market share translates into average consumption, which can be translated into sales. Since the market data is not available for this analysis, a certain number of units can also be set as marketing objectives, which in effect will represent the target market share. However, as the capacity of the company is not determined as well, the target number of handsets to be manufactured cannot be determined for the current as well. C. Consumer behaviour analysis i. Motivation behind purchase (possible consumer insight) In analysing the market for this kind of product, it is important to note that the dual-SIM market is a segment of the whole mobile phone market as a whole. This segment aims to cater to people who are using two mobile phones at once and are looking for better alternatives. With this segment, although no hard data is derived in order to probe for potential consumers, the target markets primary consumer insight for this type of phone can be the use of two handset numbers, usually for two different purposes, such as business use and personal use. This growing market is driven by the insight of people having the need to fulfil different roles in the society, which can be classified as personal or business/professional roles and the relevance of using mobile phones to fulfil those roles. Thus, although there is no marketing research data to support it, the target market can then be described as adults, and middle income earners and up who use their mobile phones both for business and personal use, who would like to buy the dual-SIM phone in exchange for convenience instead of carrying two different phones. ii. Purchase decision-making The purchase decision-making of consumers is determined by their level of involvement in the purchase, which is then determined by the inherent risks associated with the purchase decision. In the case of mobile phones, the types of risk to be assessed include financial risk, performance risk, as well as social risk (Duncan 2005). Since a mobile phone is a consumer durable good, it is usually priced higher than commodity products which make the financial risks a bit higher to make them relevant to the consumers. Since the dual-SIM feature is the major attraction to the purchase of this type of mobile phone, the performance risk is also a bit high from the point of view of consumers. Mobile phones are also a determinant of a persons lifestyle sometimes, which is related to social risks. With all these risks, even without the presence of marketing research data to support it, the purchase of mobile phones can be considered a cognitive purchase. The cognitive path to decision making is comprised of steps including recognition of problem or opportunity, search for information, evaluation of choices, making the buying decision, and reviewing the decision (Duncan 2005). This framework can be later used in determining the integrated marketing communications objectives. D. Integrated marketing communications plan i. Target audience As mentioned in the analysis of the consumer behaviour, the target audience includes adults who maintain two phones at once. As mentioned in the data in the market analysis, these adults approximately spend less than USD1,000 for the two handset packages for a year, therefore these people must have the means to afford these handsets. These are middle income earners and up. With the absence of more detailed consumer profiles, the target audience can be described as such. ii. IMC objectives The objectives for integrated marketing communications can be linked to the behaviour of the consumer in order to more effectively utilise the functions of marketing communications. As mentioned in the analysis of consumer behaviour, the path to the purchase of dual-SIM phones is a cognitive one. The cognitive path to decision making is comprised of steps including recognition of problem or opportunity, search for information, evaluation of choices, making the buying decision, and reviewing the decision (Duncan 2005). To match this path, the company can use the AIDA framework--awareness, interest, desire, and action. According to Duncan, the hypothetical communication and behavioural objectives include: to achieve 50% awareness level out of the total market which is unaware of the product; to attract interest among the 25%, or half of those who are already aware; to arouse desire among half of these people (12% of the total market) who are interested in the product, and finally to induce action among the other half of this portion (6% of the total market). These can be the objectives that can guide the overall promotions campaign. iii. Marketing communications mix Based on the objectives above, the marketing communications mix must be determined. In creating awareness among the general public and a huge portion of the target market, advertising is usually used. Advertising can reach a good number of people, which makes it the most cost-effective medium. In order to attract interest after the target market becomes aware of the product, the company can utilize public relations, using publicity stunts, events and press releases. In order to arouse desire, the company can utilize sales promotions as tied with the offers that it can give to consumers. Lastly, personal selling or direct marketing in the form of websites, which can be accessible to consumers to place their purchases, can prompt the target market into action. iv. Message strategy and execution After the marketing communications mix is determined, the message strategy can be crafted to put an idea that will serve an anchor to the whole marketing communications mix. The message strategy can be summed up as follows: “The purpose of this marketing communications message is to convince these mobile phone users who use two phones at once that our new product with the dual-SIM function will deliver the same quality, functions, features and power of two phones of our brand into one handset. The tone of the message should be casual yet professional to cater to our target audience who will use the phone for personal and business use.” The message execution will feature a persona to represent the target consumer, juxtaposing the two different lives—personal and business-- which requires the target consumer to use two phones. The execution will feature that it is a phone that combines both needs but still preserving the need to distinguish when it is for personal and for business use. Thus, advertising copy can highlight the lives of the target audience, the two sets of various roles the target consumer needs to fulfil. However, the inconvenience of carrying two phones at a time should also be shown. This is to communicate the added value of the product through its feature. The events, publicity stunts and press releases can revolve around the two-lives-juxtaposed idea too. In order to complement the idea with the sales promotions, bundling can be utilized, with two sets of bundles to choose from—one for a family member or friend bundled with the consumers phone, or one for a business partner or colleague bundled with the consumers chosen handset. This is to show the relevance of the dual-SIM feature to the lives of the target consumer. III. Conclusion Despite the financial crisis that the world experiences today, a segment of the mobile phone market has been emerging and is growing healthy over the course of years. The dual-SIM handset market which aims to offer consumers access to two different numbers prove to be successful in different geographical market. This growing market is driven by the insight of people having the need to fulfil different roles in the society, which can be classified as personal or business/professional roles and the relevance of using mobile phones to fulfil those roles. Thus, companies start to recognize the potential of this market segment. This major insight can be utilized as the anchor idea for an integrated marketing communications campaign of a mobile phone manufacturer that could offer dual-SIM features on many mobile phones. After the consumer behaviour is analysed, the objectives can be tied to these behaviour in order to fulfil the companys marketing objectives. Utilising an integrated marketing communications approach with a given set of marketing communications function is made possible by using a message strategy to integrate the marketing communications efforts of the company. References CBC News Interactive (2009). “The price of staying connected.” CBC.ca. Accessed April 2, 2009 from http://www.cbc.ca/news/interactives/map-cellphonecosts/ Duncan, T. (2005). Principles of Advertising and IMC. 2nd ed. New York: McGraw-Hill. National Statistics (2009). “Households.” Statistics.gov.uk. Accessed April 2, 2009 from http://www.statistics.gov.uk/cci/nugget.asp?id=1866 Pickton, D. & Broderick, A. (2001). Integrated Marketing Communications. 2nd ed. United Kingdom: Pearson Education UK Ltd. Ward, Mark (2007 March 16). “Muscling in on the mobile market.” BBC.co.uk. Accessed April 2, 2009 from http://news.bbc.co.uk/2/hi/technology/6455965.stm Wireless Federation (2008 August 18). “Dual SIM mobile phone estimated to grow at 25-30% (India).” WirelessFederation.com. Accessed April 2, 2009 from http://wirelessfederation.com/news/12162-dual-sim-mobile-phone-market-estimated-to-grow-at-25-30-india/ Read More