1. Situation Analysis
a) Industry Analysis
The product is in the fitness industry. It is not very competitive, and this lets the brand enter the market easily. Company’s primary competitors would be Nike, Fitbit, and Jawbone, who already have an established brand name and a strong following of customers. Nike is the dominant player in the market because it has been in the industry for many years. Fitbit and Jawbone also have a large market share because of offering diversified products. Nike has the largest market share of 50%, Fitbit has approximately 30%, and Jawbone has about 20% market share. The market share in this industry varies regularly because of consumer changes in tastes and preferences. One of the main challenges of entering the fitness industry is that most customers have developed product loyalty. The main important thing about the Charity Miles bands is that it is easy to use, and is the affordable. The industry requires products that have wide target market and can address the needs of all clients. It is also characterized by companies that produce a variety of fitness accessories. Charity Miles will only specialize in one product and this will make it a unique brand. Specialization will lead to diversification and production of superior goods. In the fitness industry, brand loyalty is not very widespread because most consumers choose brands that satisfy their needs. The industry requires intense advertising and promotion to capture the attention of consumers (Blythe, 2006, p. 47).
b) Competitors Analysis
The fitness industry is not very competitive although there are some dominant players. The competition is not very stiff because there are few companies. The largest competitor in the market is Nike. Nike is a name of a large concern, and most consumers prefer its products because of experience in the sporting industry. The firm has established a strong relationship with its clients. The company has many distribution channels and, therefore, most of its products are available. Another credible competitor in the industry is Fitbit. The company has been operating for a long time, and this makes it a strong competitor. Another firm is Jawbone. It is a new entrant but has already created a brand. The competition in the industry is not very stiff because most of companies produce similar products. The main advantage of Charity Miles App is that it is introducing a fresh idea in the market (Loth, 2004, p.36).
c) Company Analysis
Charity Miles Company is a Limited liability company. The firm operates in the fitness industry. The company specializes in the production of fitness wristbands that help to track fitness activity of an individual. It has the lowest market share in the fitness industry because it is a new entrant in the market. The company visibility is poor now because it has not established a customer base or a brand. It will face stiff competition from other firms such as Nike and Fitbit. The company has potential for growth because there is a market niche for the products offered (Boudreaux, 2008, p.28).
d) Customer Analysis
There are many customers of fitness products because of the increase in healthy lifestyle followers. Many people suffer from illnesses that can be cured with fitness, and this provides a large market. Most of the customers for the fitness products are the young people. They have a lot of desire for fitness. The large share of customers comprises of people aged between 18 and 40 years old. Most of them are employed, and, therefore, they need exercises to keep their health stable. Another factor that influences the customers is their ability to pay the expenditure incurred by maintaining fitness. One more category of clients is the elderly in the society. Elderly people have many health related problems and exercising helps them keep themselves fit. They usually have a lot of money, and can take part in many charity activities. The customers may also include the young children of school age. Many of them are obese due to lack of exercises and unhealthy eating habits. The product will encourage children to engage in physical activities (Blythe, 2006, p. 88).
2. Market Product Focus
a) Marketing and Product Objectives
Marketing of this product is an important process for the success of the project. As the marketing manager, I want to advertise this product so that I can reach out the target consumers. Following are the objectives of the marketing process:
- to reach out all potential clients in different parts of the country;
- to help people understand the importance of the Charity Miles App.;
- to encourage people to take part in charitable activities;
- to educate people on the importance of fitness to the health of a person;
- to increase sales of the wristbands that track the fitness activity of the person;
- to create brand awareness through promotion and advertising of the product;
- to establish the brand in the apps industry (Blythe, 2006, p. 98).
b) Target Market
Segmentation is a marketing strategy that entails dividing the target market into sets of consumers who have the same characteristics, and designing the products to suit their needs. Charity Miles App has a broad target market that has different clients with different demands. The company targets all people including children, teenagers, youths and the old. The product is necessary to people of all demographics. Different individuals have different activities and hobbies and this product will help them do any activities. The wristband has a diverse segmentation because it can suit the needs of various market segments. The primary segment of the Charity Miles App is the youth who comprise 60% of the market share. 25% of the market share consists of the old while children take 15%. The products target people of all genders, and they are tailored to meet the prevailing trends in the industry. The App will be designed to satisfy the needs of all people. It is consumer-friendly because it has limits that guide clients to prevent over or under exercise (Boudreaux, 2008, p.18).
c) Point of Difference
The product is universal and can be used by any person to measure the level of activities. The limits are set in a way that suits the physical needs of the person. The product is differentiated considering the exercise requirements of the users. Men require more exercise compared to the women; therefore, their exercise limit is high and the measure of their activity is also high. Children are exercising less compared to adults and their app will have lower limits compared to grown-ups. Unlike our competitors, the Charity miles App will help people measure their level activity, and they can earn money if their level of activity is high. There is no other app that pays users for their level of activities (Blythe, 2006, p. 87).
d) Market Positioning
The positioning of the product in the market is not very favorable compared to the competitors. The product is new in the market and will face many challenges before it earns a customer base. There are several companies that entered the market earlier, and they have a strong client base. The product is ranked as the last because it has very few customers, and its impact is not yet proven. Some companies such as Nike and Fitbit have products that are tested and are ranked highly in the market. It is very difficult to predict the outcome of the product, but if it is beneficial it will have a significant position in the market (Loth, 2004, p.36).
3. Marketing Program
a) Product Strategy
The product is Charity Miles App that helps people earn money for charity by tracking the distance covered by running, walking or biking. The app can help them measure their daily fitness activity. The idea of the product was triggered by the large number of people who engage in physical activities to keep their bodies healthy. Fitness has become a routine activity for every person because of the high number of lifestyle diseases. The product can measure the physical activity of an individual, and the result can help him/her determine the level of activity needed. The product also helps one to regulate his/her activity to prevent over or under exercise. The app will also be developed so that it can meet the fitness requirements for everyone. It will motivate people to engage in fitness activities because they can earn money (Blythe, 2006, p. 98).
b) Promotion and Advertising
According to Loth (2004), promotion is one of the important strategies that determine the success of a marketing activity. The product will be promoted and advertised in different ways so that it can reach out many clients. One of the major promotional approaches will be use of online media. There will be various online competitions that will help in promoting the product. Another promotional approach will involve roadshow and open field shows. There will be numerous activities and competitions that will draw the attention of many consumers. Another significant approach is advertising the app. It is one of the primary strategies that contribute to the tremendous growth of market share. The advertisement of the product will take place in the major media. It will feature in the largest media so that it can reach out many people. The App will be advertised in such media as CNN, BBC, DSTV and other global ones. The products will also feature in Internet sites such as social media and blogs websites among others. There will be other promotional strategies such as using billboards, posters, and fliers to make the product visible to the potential clients. The company also uses celebrities and other influential people in marketing the products. The App will be promoted in many social activities (Dyer & Dalzell, 2004, p.76). Following is the distribution of advertising and promotional channels for the product.
|Posters & fliers||8%|
c) Place Distribution Strategy
Distribution is the process of making the products available to the target market. Charity Miles App will have various distribution channels so that the product can reach all the potential users. The company will utilize sales agents as the initial distribution channels. The use of sales representatives is another technique of business expansion. The salespeople sell the products of the company directly to the consumers. The sales agents act as the link between the company and the customers. The sales representatives have adequate information about the company and its products. The representatives of the company explain the benefits of the goods to the customers and how they will satisfy their needs. The product will also be distributed by other subcontracted dealers who will ensure that tit is available. Another important channel of distribution is the online platform. The App will have various online points of sales where consumers can pay for the item and get free delivery (Boudreaux, 2008, p.38).
|online point of sales||30%|