The Company Essential Monitors, Inc (EMI) is not satisfied with existing sales level so they want to adopt improved sales strategy. California has high – demand for computer equipments. “February 1, 2010—January LCD monitor production for top PC and monitor brands—about 85% of the market—was 12.5 M, the highest level in more than a year, as noted in the newly announced Display Search Monthly Desktop Monitor Brand and OEM Production Report. Additionally, near-term production build-plans show that March could be the highest monthly production of LCD monitors on record, reaching over 12.9M” (LCD monthly desktop monitor production rate highest since mid-2008, 2010, para.1).
The consumer market research based on secondary data source revealed the buying behavior and motivations of the consumers. Questions like 1) what the other best alternatives for future growth are & 2) how to sell to customers at the lowest possible price have been taken into consideration while doing the strategic planning.
People in California are very motivated in using and possess new display systems like LCD monitors. The Californian population is very educated about the technological products like LCD monitors. There are a number of competitors in the market but EMI can withstand competition by using the competitive advantage in terms of targeting the un-served consumer segments and under met consumer focus of the competitors. Time of launch of the product is an important marketing factor which decides the demand for a product in a new market.
A new distribution guide can be adapted to penetrate the computer market. Many distribution channels are cost-efficient and very helpful for entering the Californian market like direct marketing, marketing through web, through middlemen like wholesalers & retailers. Since Essential Monitors, Inc (EMI) wants to establish itself in the Californian market so it can reduce its distribution channel management costs by eliminating middlemen and thus can save broker commissions and can bypass the savings to the customer. The pricing strategy adopted should be such that it should be customer friendly.
For this purpose either, Confined manufacturer Pricing (in which the monitors price can be reduced but sidewise the peripherals price can be increased) or Penetration Pricing (to begin with reducing the price to increase the market share and then increase it for earning profits) can be adopted. To expand its computer equipment market EMI can also introduce refurbishing of monitors as an extra service to draw the attention of customers keeping in mind the comparative income of the people in California. A proper cost efficient advertising tool can be adopted for promoting EMI to the markets of California like television or in business magazines which advertises the bottom line with the amount spent. Constructer of the LCD monitor must give more attention to the channel for the selling the product in the market.
This is to be done based on collecting information in the California market. If the company wants to grow in the California market first they must find out its target customer. And the customer evaluates the product based on its number of attributes and the satisfaction getting from these attributes. In the case of LCD monitor possible attribute that the company can offer its customers are the facilities of the monitor, price, size of the monitor, etc…the best possible approach the company can adopt to increase the sale level is the improve the facilities of the LCD monitor. Increasing the facilities of the monitor with the help of advanced technology helps to increase the profit as well as the sale of the monitor.
Customer made the judgment about the product based on its various attributes. Buyer’s attitude for purchasing any product in the market is based on the information as well as the satisfaction of the particular product. final purchase decision of the buyer is based on number of factors such as social, culture, age, lifestyle etc…Since people in California use computers for everything & monitor is the most important device so the buyers in this field are numerous from business agencies, technology skill service providing institutions, consultants & users of LCD monitors in the home system.
Buyer mannerisms study is essential for customer service and this can be enhanced by practicing cross-sell and up-sell models of marketing. EMI should do international market research to minimize challenges like cultural, linguistic and legal to establish in Californian markets.” As companies contemplate the global marketplace, they must consider how domestic market research differs when conducted in international markets” (Young & Javalgi, 2007, p.113).
Marketing analysis also helps to understand the strength, weakness, opportunity as well as the threats in the market. Market strategy analysis provides market share estimates & also the competitors market for the computer peripherals. This research plan can be used as a blueprint for establishing business in California.
Reference List
LCD monthly desktop monitor production rate highest since mid-2008. (2010). Advantage Business Media. Web.
Young, B.R. & Javalgi, G.R. (2007). International market research: A global project management perspective. Business Horizon, 50(2), pp. 113-122. Science Direct. Web.