Introduction
Successful companies implement and upgrade their business models in order to achieve their aims. They consider numerous aspects such as the acquisition of raw materials, production of superior products or services, and logistical operations. This arrangement has made it easier for many corporations to produce quality goods for their customers. Once the targeted products are manufactured successfully, it is always necessary to have a powerful marketing plan in place. Firms that ignore this aspect find it hard to record positive results. This discussion explains how I am planning to start my own company, launch an innovative product, and market it to different customers.
Innovative Idea
In the recent past, the number of people purchasing and using smartphones has been on the rise. This change is catalyzed by emerging technologies such as applications and superior operating systems for handheld devices. These innovations have made it easier for corporations such as Blackberry, Nokia, HTC, and Samsung to produce superior phones that meet the diverse needs of many users. Most of the existing outlets and shops market new devices to different customers (Zeriti et al. 49).
This market segment has become lucrative since many people are in need of these products. However, most of these businesses do not offer services that can empower customers to use their gadgets effectively. Additionally, many users find it hard to acquire accessories such as chargers, earphones, batteries, and screen protectors. Some are also unable to secure their confidential data and information once their devices are lost or stolen.
Many people aged above 45 also find it hard to use smart phones effectively. The proposed innovative idea seeks to address the needs of customers who have already purchased these smartphones. The business will be aimed at providing technical advice and selling accessories to different users of smartphones. The organization will also hire competent workers to guide customers whenever downloading and installing desirable apps. Those who want to use their phones to monitor their calories will also be advised accordingly. The business will also provide adequate advice to customers to ensure that they safeguard their information from unauthorized users (Juarez 116).
These services will only be available at a discounted fee. It is agreeable that smartphones such as iPhones should have their operating systems (iOS) upgraded in order to improve efficiency. Most of the owners of such phones only use the original systems installed by the manufacturer. This makes it impossible for such devices to operate efficiently or faster. This business will be seeking to guide users or encourage them to have such operating systems upgraded.
Segmentation Technique
An efficient segmentation approach will be considered in order to make the intended business idea successful. This strategy is essential since it empowers entrepreneurs and corporations to identify the right market and deliver the targeted services or products (Baker 26). Two aspects will be used to segment the existing heterogeneous market. The first one will revolve around the concept of demographics (Baker 52). This means that the market will be divided based on income and age. The targeted individuals include those who are aged between 18 and 55. Additionally, such people should be from the middle to high-income backgrounds.
Several reasons explain why this segmentation method is appropriate for the proposed innovative business. The first one is that individuals between 18 and 55 years of age are the ones who are currently using smartphones and handheld devices in large numbers (Baker 69). This target population can, therefore, be supported using the services offered by this business. Secondly, many people aged above 40 years encounter numerous challenges whenever using superior devices.
This is the case because they did not study computer lessons during their schooling days. The third reason is that many people who have smartphones tend to come from rich or middle-income families. The decision to segment the market based on these two demographic attributes will eventually deliver positive results. These users and owners of smartphones are also in need of different accessories that might be unavailable in existing shops or outlets.
The second segmentation approach is that of geographic units. Since the business will be located in the local town, it will be easier to attract individuals or potential customers from the region. With many people having superior handheld devices in this town, the business will address most of the challenges affecting them (Zeriti et al. 51). The reason for using this segmentation initiative is that many people in this local town are using new devices and smartphones than ever before. When this geographic aspect is considered, a powerful marketing strategy will be developed in an attempt to address most of the issues facing different customers.
Targeting Strategy
A powerful targeting plan will be appropriate for this small business if positive results are to be realized. After considering issues such as the availability of resources and the nature of the outlined market segments, a concentrated targeting strategy has emerged as the most effective for this venture. Since the approach seeks to sensitize individuals aged between 18 and 55 about the available services, this model will ensure that the right content is delivered within a short time. The concentrated strategy is implemented in such a way that repeated messages are shared with potential customers (Juarez 118). The approach will be supported by the company’s workers and eventually deliver positive results.
With this strategy, young people and adults will be informed about the importance of reaping the most out of their smartphones. Those who are unable to operate modern devices will also be informed about the existing services in the business. The identified market segment will be updated about the major accessories available in this outlet. Issues such as theft and loss of confidential information will be outlined to support the marketing approach (Zeriti et al. 52). The approach will ensure that more mobile phone users are willing to have such concerns addressed. This is a clear indication that the business will be successful and profitable.
There are various reasons that explain why this targeting strategy has been considered. To begin with, the company (or business) is small and does not have adequate resources to implement an extensive marketing approach. Consequently, a concentrated model will be pursued without incurring numerous costs. Secondly, the business seeks to operate a single outlet in the selected town. With a concentrated strategy, more individuals in the region will be informed about the nature of services and accessories marketed by the business (Juarez 118). They will, therefore, be willing to visit the shop and have their issues resolved efficiently.
Thirdly, the potential competitors in this segment include those who market smartphones and handheld devices. Such businesses use a similar targeting strategy in an attempt to encourage more people to purchase the targeted devices. The use of this model will also result in increased sales for this business. A concentrated approach will ensure that many people below the age of 50 (and those who have been planning to acquire a smartphone) will be informed about the company’s business model (Zeriti et al. 61). The strategy will attract more individuals and eventually result in increased profitability.
Main Competitors
Modern technologies are transforming the way human beings are using devices such as smartphones and computers. Many companies have managed to innovate, produce, and market superior cell phones to different customers across the world. Similarly, small-scale retailing businesses and outlets have emerged to market such smartphones to individuals at a profit (Baker 82). The numbers of such shops have increased significantly in every city and town in this country.
This increased demand for superior phones has fueled this kind of development. From this analysis, it is evident that such outlets will pose a major threat to this business. This is the case because some of these retailers are known to sell a number of accessories to different customers.
There are also specific outlets owned by companies that manufacturers of smartphones such as Apple and Samsung. Such businesses offer adequate customer support (Baker 61). The outlets offer meaningful advice to different users of smartphones. Leading retailers such as Best Buy have specific shops that market a wide range of handheld devices. These businesses have the potential to compete indirectly with the proposed innovative company.
Additionally, there are phone repair shops in the selected town that offer similar services. Such businesses guide customers to install specific programs and use them efficiently. The good news is that these shops have not been able to address the needs of all users of smartphone users (Baker 102). The presence of these competitors in the local town can threaten the effectiveness and performance of this business. It will, therefore, be appropriate to implement a powerful strategy that tackles this increased level of rivalry.
Differentiation and Positioning
A powerful positioning model is needed in a business in order to encourage and attract enough customers. The strategy should resonate with the needs of the targeted individuals. It must also be informed by the approaches associated with the major competing brands or products in the market (Schwarzl and Grabowska 189). The first important thing for this venture is to make sure that the selected differentiation strategy is relevant and practical.
Several aspects will be taken into consideration to achieve this objective. The first one will be that of quality. The accessories marketed in this outlet will be of the highest quality. They will be sourced from original and authenticated suppliers. This move will ensure that such accessories satisfy every customer.
Secondly, the right people will be hired to offer superior information and services to different users of smartphones. For instance, two competent individuals who understand how to download and install different apps on various devices will be hired. A salesperson will also be employed to offer quality services to the targeted customers (Juarez 119). These members of staff will improve the business’ image and meet the demands of different people.
These attributes of differentiation will be supported further using additional services. These include a free consultation, advice, and recommendations. Installations and operating system (OS) upgrades will be done at a small fee. This means that the business will be associated with pocket-friendly prices that empower different customers (Baker 81). These aspects will definitely address the issues facing many customers and be willing to engage in repeat business.
In terms of positioning, many individuals will be sure that this business is the right place to have different demands revolving around the use of smartphones resolved. The shop will also be an opportunity for them to learn new things about the devices (Juarez 116). For example, many users are usually unaware of the fact that operating systems installed in such smartphones are upgradable. This is a process that can make them more efficient, fast, and reliable. It is also evident that many companies and marketers of such devices fail to share this information in order to trick customers into buying new ones.
The targeted customers will definitely find this differentiation and positioning strategy relevant. They will be aware of the competitive advantages that make this innovative idea revolutionary (Schwarzl and Grabowska 191). For instance, they will be able to acquire new services that have been ignored by many existing shops and retailers. They will also find new ways of getting the most out of their handheld devices.
Those in need of original accessories will have their concerns addressed by this business. The prices of such accessories will be affordable and attractive to the users. Consequently, the company will be able to attract more customers within a short duration and record increased revenues or profits.
The employees in this business will be guided and required to remain ethical and always focus on the changing needs of different customers (Juarez 123). They will also be expected to offer timely advice to individuals above the age of 40. This is the case because such users are not conversant with most of the features and apps installed in smartphones. Customers will also be required to give their views in order to understand how this venture can be improved and continue to meet the diverse needs of many customers in the region.
Positioning Statement
The outlined differentiation and positioning strategy have the potential to support this business and make it competitive in the market segment. The initiative will be supported by this statement presented below in order to attract the largest number of customers: “To individuals who want to get the best out of their smartphones, this business venture offers quality accessories, consultancy services, guidelines, app installation, operating system (OS) upgrades, and general maintenance for all models.”
Conclusion
The above innovative idea has not been experimented with before. This concept is informed by the fact that many smartphone owners do not use them efficiently. Some are forced to purchase new ones when their current devices can only be upgraded or updated. With the proposed segmentation, positioning, differentiation, and targeting strategies in place, this business will address the challenge of competition and ensure that more people aged between 18 and 55 years benefit significantly from their smartphone devices. The provision of accessories will make the business more attractive to different people in the town. In conclusion, every employee will be informed of each of the above aspects in order to make the business successful.
Works Cited
Baker, Michael J. Marketing Strategy & Management. Palgrave, 2014.
Juarez, Fernando. “Community Strategic Relationship and Marketing to Foster the Development of Communities and the Sustainability of Organizations.” International Journal of Psychological Research, vol. 9, no. 1, 2016, pp. 113-125.
Schwarzl, Susanne, and Monika Grabowska. “Online Marketing Strategies: The Future is Here.” Journal of International Studies, vol. 8, no. 2, 2015, pp. 187-196.
Zeriti, Athina, et al. “Sustainable Export Marketing Strategy Fit and Performance.” Journal of International Marketing, vol. 22, no. 4, 2014, pp. 44-66.