Final New Product Launch

May 14, 2018

Abstract

The Future brand of laptops is a fictitious brand of laptops that is yet to be introduced in the market. This paper focuses on the competitive analysis of the brand’s industry, the brand’s strategic plan, segmentation analysis of the target customer, the insight of the customers and the brand equity.

The Future Brand

Introduction

The Future Company is a company set to come up with a new brand of laptops. The Future Brand is going to compete with the other laptop brands already existing in the market such as Apple, Microsoft, and Lenovo.

Part 1: Industry/Category Analysis

Several factors are considered when carrying out industrial analysis. Firstly, the threat of entry to the laptop industry is considered. As a dealer in laptops, the capital required to establish The Future Company is costly. The high capital costs may bar the company from entering the industry. There is a need for large financial investment in order to sustain the company in the industry. Another possible barrier to the company’s entry into the laptop industry is product differentiation (Bridwell & Kuo, 2005). The laptop industry has various brands such as Apple and Microsoft that are widely recognized and have acquired customer loyalty over time. To deal with this situation, The Future Company will have to have to invest heavily on advertisement in order to acquire customers. Moreover, the channel of distribution of the company’s products is a possible barrier to entry. The company will employ various means such as retailing and online marketing to secure the distribution of its products.

In addition, the substitutes of the product should be considered since they are a possible threat to the brand. The willingness of customers to purchase a given product is influenced by the price of the product’s substitutes (Bridwell & Kuo, 2005). It is impossible to entirely substitute a laptop since it is a representation of several devices combined together. The possible substitutes of laptops are desktops, tablets, and smartphones. The processing speed of a desktop is higher compared to that of a laptop and is easier to upgrade. The portability of laptops and their ability to work in different environments are an advantage over a desktop. The Future brand laptops will have a high processing speed as a means to avoid substitution with desktops. Tablets are the closest substitutes for laptops since most of its functions are similar to those of laptop. They also have a higher level of mobility. Tablets are however more prone to malfunctioning and are more fragile as compared to laptops. To prevent substitution with tablets, portability will be factored during the manufacture of the Future brand laptops. Smartphones have the ability to perform various functions that a laptop performs though slower rate than a laptop due to a smaller system memory and a smaller CPU. The Future brand laptops will have an advanced central processing unit and a larger system memory.

Furthermore, the possible rivalry between the new brand and established competitors is considered. There are high chances of witnessing a rivalry pertaining product introduction forms, advertisements and improvement of services due to the high rate of technological advancement (Bridwell & Kuo, 2005). Inventories become obsolete easily due to unpredictable technological changes. In manufacturing its laptops, the Future Company will ensure that there is a balance between demand and the capacity manufactured in order to avoid forced price reductions as a result of inventories not sold. Moreover, companies manufacturing laptop components may have an influence on the final price of the laptops which may bring about the rivalry between the Future brand and other brands in the industry.

Moreover, the buyer power is considered. The high importance of the laptop components such as graphics and microprocessors limits the buying power of the laptop manufacturers. The component manufacturers posses a significant bargaining power (Bridwell & Kuo, 2005). The consumer’s buyer power is affected by the economic climate. The price of the laptops thus has a significant influence on the purchasing decision of customers. Consumers who are possibly constrained in terms of cash will opt for cheaper brands.

Finally, the suppliers’ power is considered. This power is a result of three factors, the services provided, cost shifting to participants in the industry and the limiting quality (Bridwell & Kuo, 2005). Laptop manufacturing industries have a limited freedom to increase their prices due to the competitive environment. Companies that manufacture their own components have a better advantage since they can freely raise the price of their laptops.

Part 1: Competitive Analysis (Positioning Map)

Competition relating to prices and services in the laptop industry is very high due to the rapid technological advancements of the software and hardware. A company that is able to provide its customers with the required features of a product plus standard qualities is better advantaged than its competitors (Akhter & Rahman, 2014). Having a direct link with customers helps the companies to acquire information on the changing consumer needs. The Future Company, being a dealer of laptops, is going to get into a competition with various companies in the industry which include Apple, Microsoft, Dell, and Lenovo.

In carrying out competitive analysis of the laptop industry, its SWOT analysis and the strategic group graphic are used. The interaction of the product portfolio of the company and its SWOT analysis is helpful in identification of the firm’s competitive advantage (Akhter & Rahman, 2014). Strengths of a given company may include a strong image of its brand and a vigorous financial performance. Companies that offer laptops having desirable features such as portability, stylish designs, and professional functions get more customers in this highly competitive industry. The relationship between the strengths of the Future Company and its product portfolio will enable it to gain its competitive advantage.

Moreover, the strategic group graphic is a representative of the companies within the industry which follow similar patterns regarding the mode and scope of competition, identification of brands and the price (Akhter & Rahman, 2014). Changing the strategic group of given company results in increased budgets of advertising, product portfolio and a change of strategies. The company will also be forced to focus on a specific market with specific products and will have to give its customers a similar performance and quality level as the companies in that particular market. This way, the company will be able to maintain its customers in this highly competitive industry.

Part 2: Brand Strategic Plan (Vision/objectives/strategies/tactics)

Future Company vision statement is stated as, “We are the company of the future. Excellence is our key. We want to make a noticeable contribution to the creation and innovation of laptop products through collaboration and teamwork.” The vision of the company statement is a reflection of the company’s comprehensive approach to enhancing the company’s sustainability in the ever-changing technological world (Cravens & Piercy, 2003). The vision statement shows that the company embraces teamwork and collaboration as a means of making noticeable contributions to the laptop industry not only through the creation of new laptop brands but also through improvement of existing laptop brands.

The Future Company has various objectives alongside the strategies and tactics that will be employed in ensuring that those objectives are achieved. The first objective of the Future Company is to come up with innovative products. The strategy to be employed is having a great team that will conduct the required research and henceforth develops the products. The tactics to be used include primary research where the researchers will have a one on one meeting with the customers and also through secondary research which will be done online. The second objective of the Future Company is to ensure that the company’s products are distributed across the world in order to reach a large number of consumers. The strategy to be used is the creation of distributions networks across the world. Some of the tactics that will be employed are online stores, retail stores, and flagship stores. The third objective of The Future Company is to create products that are free from hassles and enjoyable in use. The strategy to be used is a high investment in development and research. The brand strategic plan will help the company grow and finally be at the same level as the other brands in the laptop industry.

Part 2: Target Customer Segmentation Analysis

Analysis of the potential customer target is a significant step in the marketing of a company’s products. In order to acquire loyalty of customers, the company will employ various strategies. Firstly, segmentation of the market premises will enable the company to achieve the highest efficiency from its advertisements (Kim, Jung, and Suh &Hwang). It will enable the company to identify its best customers thus helping in the identification of the best channel to reach them and prioritize their interests.

Moreover, demographic segmentation involves the use of various personal attributes of customers to generate a prototype (Kim, Jung, and Suh &Hwang). In this situation, a certain number of customers of either male or female gender or of different classes or education background will be targeted and their attributes will be used in the creation of a prototype. Demographic segmentation will help the company in defining a prototypical customer to its products.

Furthermore, market research helps in customer segmentation analysis. The analysis of the segments of the market will enable the company to establish whether its product is under-served in the market or whether the product has a broader (Kim, Jung, Suh &Hwang). This way the company will be able to decide whether they will increase or decrease the supply of its products.

Finally, analysis of customer segments is also done through customer relationship management. Database programs are used to track the customers buying activities and profiles (Kim, Jung, and Suh &Hwang). It makes it easy to monitor the customers purchasing the product at a given time. Customer relationship management will, therefore, help the company in reaffirmation on whether it targets the right or the wrong customers and also in the identification of the particular type of customers purchasing the product.

Part 2: Customer Insight

Various quantitative techniques are employed in obtaining feedback from customers pertaining to the company’s product. Assessment of customer needs helps companies to understand issues relating to their customers (Allen & Rao, 2000). Through this way, the company is able to anticipate the needs of the customers and existing challenges. Primary research was used in obtaining the insight of the customers on the Future brand laptops. In order to predict and understand the needs of the customers, a questionnaire was generated and a door to door interview was conducted. A hundred potential customers were identified then given a visit to either their homes or offices where the interview was conducted.

Some of the questions asked included what laptop brands the customers use, the reasons behind their purchase of the brand they are using, their strengths and weakness and what they wish could be improved. This way, the Future Company was able to identify the customers’ preferences and was also able to note the areas that require improvement. This will, therefore, help in the creation of laptops that are highly selling since the customers’ insight is factored into their manufacture.

Part 2: Brand Essence/Equity Elements

To ensure the success of the brand, brand essence are used in making decisions pertaining product type to be developed, personnel type to be hired and the projects to invest in (Yoo, Donthu & Lee, 2000). Equity elements include awareness of the brand, brand’s perceived quality, the associations of the brand with the consumer and the brand loyalty. Brand awareness is a very significant component of the brand essence (Yoo, Donthu & Lee, 2000). Customers have a series of brands in their minds. To ensure that the customers are aware of the Future brand, the company will have to carry out intensive advertisement.

Secondly, the perceived quality of the brand by the customers is a significant component. The perceptions of the customer on the quality of a brand extend to each and every aspect of a given brand. To ensure that the customers perceive the Future brand as of high quality, the company will have to ensure that the products it manufactures are of high quality right from the beginning. Furthermore, the association of the customer with the brand is important in attitude, belief and opinion formation. Associations form a basis for brand image and identity (Yoo, Donthu & Lee, 2000). The Future Company will ensure that the customers associate with its brand in a positive manner through the creation of quality products. Finally, brand loyalty is the highest valued brand equity component. It forms the basis of a value that lasts a lifetime. With loyal customers, high profits are witnessed. To realize high profits, the Future Company will use all possible means to achieve its customers’ loyalty to the brand.

Conclusion

The Future brand will be able to compete with the already other brands in the laptop industry. The various strategies employed in the creation of the Future laptops play significant roles ensuring their sustainability in the industry.

References

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brand equity. Journal of the academy of marketing science, 28(2), 195-211.

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Irwin.