Strategy Paper 01

MARKETING-III ASSIGNMENT
04/02/2014 Submitted to:

Prof. Rajendra Nargundkar

SECTION A Group 3 Divya Nita Nayagam M J (2013PGP133) Gaurav Gupta (2013PGP142) Kollipara Vinay Kumar (2013PGP189) Lionel Pratap De (2013PGP200) Mettu Reddy Nikhila

Marketing III

Strategic Paper 1-Group 3

(2013PGP223)

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Marketing III

Strategic Paper 1-Group 3

Overview Charlie Inc. is a computer and peripheral company that operates in a highly competitive industry. The existing products in the companys portfolios are CELL, CANO and COMP catering to the needs and objectives of various segments of the industry. In the current scenario Charlie is facing competition from 7 other companies which have acquired significant market share in each segments. Charlies mission statement is To be the most successful computer company in the world at delivering the best customer experience in the markets we serve. The company has set some strategic goals in front of them like to be among the top 3 players in terms of market share in each of the segment they serve. By devising an appropriate marketing, communication and business strategy, Charlie Inc. seeks to establish itself as a market leader (by market share) in the computer manufacturing industry, offering high-quality products with varied specifications and features, appealing to different customer segments. The STP analysis gives an idea of the various customer segments, the segments where Charlie has a presence and the products which cater to those segments. STP Analysis Segmentation
The customers of this industry can be classified into 5 segments based upon their needs, value and benefits sought from the product. This classification is based upon the expectations on product specifications, age, style and benefits sought by the customers. The 5 segments are: I. Pragmatists: These consumers look for utilitarian products which give value for their money. They are the group of people with 2nd largest market share. They mainly look for the age of the product in the purchase decision. Secondary purchase decision criteria are price and features. Hermits: They constitute the largest market share among the five. They are price sensitive people with age of the product and features as secondary characteristics Bluebloods: The market share is comparatively low as compared to previous two categories. They give primary importance to features and secondary to age and style of the product Tech-geeks: Referred to as early adopters, they have one of the lowest market share in the industry but relatively higher growth. They are technology driven and are fanatics about new products/characteristics. Features and portability play a major part in their buying decision. Secondary things include style and price of the product. Wanderers: They are also one of the lowest in terms of market share but have high growth. This category includes people who travel frequently such as professionals, students who require high

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Marketing III

Strategic Paper 1-Group 3

portability of product. Style is their other major criteria. Other things include age and features of the product

Targeting
Charlie Inc. targets three particular segments which are Pragmatists, Hermits and Bluebloods on analysis of the following four factors provided by the market intelligence report for each of the segments: Industry Unit Demand Industry Unit Sales Segment % of the total Industry Segment Growth Rate Pragmatists and Hermits include the largest market shares of 33.4% and 38.6% each growing at 3.2% and 3.8% respectively. They combined have a market share of 72% and offer the maximum scope to achieve high sales and hence high revenues. Bluebloods have comparatively lower market share but have a decent growth rate of 5.1%.The primary reason of targeting bluebloods is the high margins (54%) and the high revenues generated per unit sold. Charlie targets the above three segments by its three brands: CELL- Pragmatists CANO- Hermits COMP-Bluebloods

Positioning
Based on the market intelligence reports that highlight the features of the product expected by consumers of each segments, the company orients its three brands with respect to the following characteristics: Features Portability Style Price Availability Service Charlie Inc. offers an appealing differentiated product to it each segment. CELL: A value-for-money product that offers latest features, high quality and portability for its customers who are brand conscious, look for basic services and long usage at an affordable price CANO: An aggressively low priced computer offering all the basic features targeting the price sensitive customers. COMP: The premium product which includes the latest features and best quality. It cashes in on the brand loyalty and customer recall.

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