Report+by+Lam

Report on marketing strategy

1. Introduction

This report was, in view of the relatively low market share compared to our competitor IGADGET, requested by Mr. Connick, the marketing manager of H&F Electronics on 30 November, 2010. The primary aim of the report is to suggest affordable measures that would increase our market share.

The report, with the aid of a table and a graph, presents the findings of M&D Market Research Company’s market survey of the customer satisfaction and market share of H&F ours and IGADGET. Following the findings in which gathered data are analyzed, conclusions are drawn and recommendations are made.

2. Methodology

The data were gathered by means of a questionnaire survey of a sample of 200 MP3 users of H&F ours and our rival ry conducted in August 2010. The questionnaire was divided into six sections: design functions, sound quality, battery life, headphone quality and overall satisfaction. In addition to the survey, local market share data of ours and IGADGET throughout September 2009 and August 2010 was collected explored.

3. Findings

The table and graph not only shows the poor custome rs satisfaction with our enterprise compared with IGADGET in most aspects, but also it indicates our market share is plunging. The dissatisfaction among customers is strongest with the design, functions and headphone quality.

3.1 Design

The findings suggest that just below half of the respondents are satisfied with H&F MP3 design, as opposed to more than three quarters of users with IGADGET. This might be because a software program is a necessity for transfer of H&F music. Yet, drag-and-drop is applied in IGADGET MP3 player and this has provided facilitation for users. This implies that our music player is not user friendly to a certain extent.

3.2 Functions

A similar result is found with the functions. Comparing with over 60% of interviewees who are pleased with the functions of IGADGET, only more than a third of users find H&F MP3 satisfactory. A possible explanation for such a low satisfaction rate is that the operation system of IGADGET is more user friendly and more importantly it has already gotten the patent of the system. Needless to say, this entry barrier has refrained competitors from launching system of the same kind and thus, IGADGET has become a monopoly in this aspect.

3.3 Headphone quality

It was discovered that more than two-thirds of the sample group are disgruntled with our headphone quality, as opposed to two-fifths satisfaction rate of IGADGET products (both are low ). The result may be attributed to the outsourcing of the manufacturing of headphone in Malaysia. Much as While the cost is comparatively lower in outsourcing than in self-manufacturing, the monitoring of the product quality is comparatively harder and maybe in extreme case it is an impossibility.

3.4 Market share (do not need to go into detail. just general trend is ok)

Starting from September of 2009, our ENTERPRISE market share declined steadily from 23 % to 19%. A possible explanation for this was that Felix Chan, H&F spokeperson, had been appointed for three years long and this had resulted in the deterioration of our image of innovation. It was then followed by a sudden jump to a percentage of 23 in December. This might be because IGADGET MP3 player was out of stock for the time being. Thanks to the introduction of mobile phone equipped with music function like IPhone, H&F market share fluctuated between 22% and 19% in the first three months of 2010, Two months later market share had dropped to 16% and leveled off at 15%. In August, it further fell to lowest point of 13%.

In contrast to IGADGET, its market share increased fairly from 56% to 64% throughout 2009 before it declined to 62% in the first month of 2010. Seemingly, IGADGET had successfully introduced its new spokeperson in 2009 but the poor inventory management had a negative impact on its market share in early 2010. Even though it rebounded to 65% in the following month, it experienced a marked decline to a minimal of 53% in May 2010, it seems to be the result of the great hit of IPhone. Yet, the adoption of a new product design had brought its market share to the level before the financial tsunami and leveled off at 63% in July and August.

4. Conclusion

The findings have obviously indicated that the main sources of dissatisfaction for H&F MP3 player are in term of design, function and also headphone quality. The market share of H&F is twice as low as that of IGADGET.

It can be conclud ed that in order to boost the market share as well as to maintain our competitiveness, we should take some immediate and feasible measures to introduce new design, enhance MP3 players’ functions and improve quality of headphone.

Recommendations?