![]() It is clearly the juiciest slice of the cake, but we didn’t chose Sport as our prime target since we believed many other companies would be taking a similar approach – competition would be fierce. We recognised that the sports segment is the most active yet with the highest margin in the whole industry. The names of our products reflect how we want our customers to feel when carrying our product. As such, our standard product Sonic 1, was released first, before the introduction of Bang for the youth segment, and one year later, Awesome for the sports segment. Without a broad base (and revenue stream) as well as sound brand recognition, any chances of success with higher margin products would be futile. The names of our products, carefully selected to reflect how we want our customers to feel when walking the streets wired up to our exciting range.ĪoA set a clear strategy from the outset that leveraged upon establishing a firm foot-hold in the mainstream market. With this in mind, after the standard Sonic 1 product, we launched Bang for the youth segment, and one year later, Awesome for the sports segment. We wanted our customers to feel stylish when using our product and promote our product to appeal to their avant-garde character. In addition to a great device used to listen to music, we created an additional value proposition for our customers. We at AoA wanted to create a fun, stylish, yet highly functional brand image for our products. As of 2018, our company is ranked second among our competitors in cumulative net marketing contribution. However, with our targeted marketing efforts and efficient management of inventory, we were able to exceed the performance our competitors in key metrics. The threat of substitutes is high and competition is fierce. We compete in a market with 4 other firms who carry similar product ranges. The strategies will be outlined in later sections of the report. After evaluating the overall market situation, and in line with our company vision, it was apparent that we needed to enter all 3 market segments with targeted products and marketing strategies to capture a significant position in each segment. The market for MP3 players is divided into three market segments – standard, youth, and sports -with each segment carrying its own unique characteristics, including customer needs, price sensitivity, market size, etc. We offer 3 unique MP3 products, which target 3 different market segments. Our company, AoA vision is to be the market leader in the MP3 player market. When compared with the market leader, we have one more product and reach in an additional market – our future possibilities are tremendous. ![]() ![]() We are currently ranked second in Net Marketing Contribution against 4 other competitors. Moving forward, as our products enter the later years of their mature stage, we look to invest more money in sales promotion.ĪoA is a company of energy, we have great potential ahead. In comparison with advertising, we spent fewer promotional dollars, as building awareness through advertising was deemed more important. We also focus most of our advertising dollars in the Television and Radio segments, which proved to be most effective for our target markets. This was also represented from our drop in price in Sonic1 after Awesome was launched, in effort to further differentiate between the two markets. Our pricing strategy followed our aim to have a presence in the mainstream market, we priced our products to what would be most appealing to our customer base. We wanted to leverage Awesome to create presence in the sports segment and diminish our competitor’s market share. While profitable, Awesome was not intended to be a key product in our portfolio. We position Sonic 1 as our Cash Cow and Bang as our Star in our product portfolio. Our key products were the Sonic 1 and Bang. In three consecutive years, we launched Sonic 1 for the standard segment, Bang for the youth segment, and lastly, Awesome for the sports segment.ĪoA set a clear strategy from the outset that in creating a firm presence in the mainstream market. Not only did the marketing efforts support this, but the order in which we launched our products and the name of the product also represented our fun, stylish, and functional theme. We wanted our products to exhibit a stylish characteristics, which was supported by our advertising and promotional efforts. Axes of Awesome (AoA) represents a fun, stylish, yet highly functional brand image for our products. Our company, Axes of Awesome’s vision is to be the market leader in the MP3 player market.
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