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Marketing Segmentation and Product Positioning DimenXion View Company Student: Rodrigo J. Goncalves Instructor: Prof. Karen Mountain, Ph. D. Strayer University MKT500 ??? Marketing Management October 24th, 2010. DimenXion View Company DimenXion View Company is an US based company that focuses in manufacturing display devices for work out to end-user market. One of the most exciting products offered is called D-Glasses Work Out. Company expects to use state-of-the-art technology on behalf of the human society by bringing new alternatives to work out that make a person’s life healthier and more pleasant.
The product described on this document intends to take exercising activities to an entirely different level. IDENTIFY THE MARKETING SEGMENT FOR THE PRODUCT AND EXPLAIN WHY THIS SEGMENT WAS SELECTED Nowadays, more and more people are not physically active enough; this can lead to a weight increase and/or a decrease in physical condition, which can result in health problems. In order to try to motivate people to become more active again and to reach their goals (e. g. , lose weight or gain better condition) the use of D-Glasses Work Out may help. Virtual Reality environment can be very successful in raising motivation (Bonants, 2003).
According to the U. S Census Bureau (2009), the United States has approximately 301,237,703 people. Individuals that have yearly earnings of 75,000. 00 or more represent 18. 3% of the whole population. Inside this group, 23. 2% are male and 11. 4% are female (U. S. Census Bureau, 2006-2008 American Community Survey). In 2009, women earned 89% as much as men among workers 25 to 34 years old. In the age groupings of those 35 years and older, women had earnings that were roughly three-fourths as much as their male counterparts (BLS Report 1025, June 2010).
Among educational groups, those with a bachelor’s degree or higher were most likely to work at home. On the days they worked, 35 percent of individuals with a bachelor’s degree or higher worked from home compared to 20 percent of those with some college and 13 percent of those with a high school diploma (ATUS, data are averages for 2004 to 2008). DISCUSS THE TARGET MARKET AND WHY THESE CUSTOMERS WILL BE TARGETED Because of the technology component of the product offered, DimenXion Vision will target adults from 30 to 49 years old. It represents 28. % of the total population (Census, 2009). Company understands that the target market should be most dedicated to customers that have more income because the product itself is going to be expensive to be affordable to all classes. Another target characteristic is the public that works from home or travels on the job. For an ideal customer, the initial target will be a 30-40 year old innovator male who regularly uses technology products at home such as high definition TV (may already have a 3D TV), has an intensive work schedule, most likely travels in weekdays, and has a sedimentary life.
He is technologically savvy, has disposable income and considers himself an innovator when it comes to acquiring the latest devices. A secondary market will be gender non-specific, targeting the age ranges of 40-49, has achieved a successful carrier, still does work many hours per week and does not dedicate necessary time to take care of his or her healthy. Also, these will be married couples with raised children or individuals that are experiencing his or her first divorce. CONDUCT A SWOT ANALYSIS FOR THE COMPANY: Strengths D-Glasses Work Out is a product that brings a new concept of work out.
It motivates individuals looking to improve health and gain wellness. Currently if a person has an extensive working hours, travels a lot or stay most of the time alone, most likely this person often is not in the mood to practice exercises. D-Glasses Work Out can change it. Exciting adventures, real sport challenges, and different scenarios in a daily basis are among the whole world of entertainment videos 3D. The uniqueness of D-Glasses Work Out uses the power of image to influence the brain to enhance and/or motivate work out. It contributes to a healthier world.
In a generation that can be called virtual a product like that is a perfect fit. Weaknesses Product high price is a weakness for sure. Another challenge is its size. Product can not be uncomfortable to wear nor heavy. The technology responsible to shape the size accordingly also contributes to maintain product price up. In addition to relatively small consumer demand, there are severe health risks posed by 3D. Despite huge advances in the technology over the past decade, there are still major problems with displaying 3D content. Apparently 3D could be dangerous.
Samsung, one of the companies producing 3D TV sets has issued a warning on the potential health risks of 3D television technology for certain users. According to Samsung, the 3D experience could be dangerous for: people with bad physical condition; people that need to sleep; people that have been drinking alcohol; people that suffers epilepsy; children; pregnant women; and the elderly. Opportunities Technology develops too fast and can bring many benefits to humans’ life. This product has a lot of potential because it cares about people’s life. We are in the wellness age.
It is fancy to be in shape and healthy. People need a motivation to achieve it. Besides, product can be improved and follow what marketplace has been calling Augmented Reality. It is half virtual and half real. It takes existing physical spaces and supplements or “augments” them with information, objects, actions or interactions. One of the most extensive uses of Augmented or “Artificial Reality” involved interactive art installations pioneered by Myron Krueger, author of the ground breaking books Artificial Reality I and Artificial Reality II.
In fact, 3D is here to stay and growing into a large market, particularly in personal markets where DimenXion Vision has positioned its focus. There is plenty of headroom in this market for DimenXion Vision to grow. Technology licensing agreements with large consumer electronics and content companies allow DimenXion Vision to address that market with limited investments and prospectively enjoy high-margin royalties. Another opportunity would be to maintain a good existing network of partners, suppliers and stake-holders to foster adoption of 3D-based products. Threats
Competitors may be aware of this marketing segment as well. Despite the fact D-Glasses Work Out is a new and revolutionary product that fits the fitness world, it is not unique. There are products that have similar concept. 3D TV with glasses, 3D movies, and medical Glasses that allows remote surgeries can be included on the list. Big players in the entertainment market such as Samsung, LG, and Sony are increasing their sales on products that explore 3D Technology for end-users in many ways. Such companies could start focusing on glasses for fitness market by simply adjust their current products a little bit.
DimenXion Vision has limited resources when compared to other firms involved in the space like LG and Samsung. As such, the risks of “leapfrog” technologies being developed that can immediately be produced and populated with content remains a risk as this market moves further into the mainstream. Although growing consistently in the US market, DimenXion Vision may not be able to replicate this success in large foreign markets like China. The consumer market for 3D lacks standardization, and incompatibilities between competing technologies and accessories could disrupt market momentum or change the direction of adoption.
DESCRIBE THE MARKET POSITION FOR YOUR PRODUCT AND SERVICE 3-D Glasses Work Out is to be positioned as luxury accessory electronic product. Its high quality on video streaming technology along with its elegant and sportive design makes it affordable for a specific public only. Pricing strategy has been based on other market segments 3D-Glasses are into (e. g. , with 3D TVs, and 3D gaming consoles). Price range is expected to stay between $150. 00 and $400. 00 depending on some characteristics such as: size, weight, memory, screen display, etc. . Consumers may purchase the product at high-end electronics stores, consumer chain, or directly from DimenXion Vision (online website). Our customized website will serve as contents source where customers can look for updates, software releases and new sports sections and programs to make their work out always exciting and challenging. The promotional plan will be focused on the real consumer value proposition which is the effects produced by experiencing 3D content that motivates their work out and make consumers healthier.
Consumers are not concerned is technological specifications, they expect them to be the most realistic possible. References Bureau of Labor Statistics (July 2010). Earnings by Demographics Reports. Retrived October 23, 2010 from http://www. stats. bls. gov Haas, R. W. and Wotruba, T. R. (1983). Marketing Management: Concepts, Practice and Cases. Pleno, Texas: Business Publications, Inc. Kotler, P. (1976) Marketing Management (3rd. Ed. ). New Jersey: Prentice Hall. Samsung. (n. d. ). Viewing TV Using the 3D Function.
Retrieved October 23, 2010 from http://www. samsung. com/au/tv/warning. html Soistmann, Billy. (February 11, 2010): 3D Technology Has Yet to Work Out All the Kinks. Retrieved October 22, 2010 from http://technorati. com/entertainment/film/article/3d-technology-has-yet-to-work/#ixzz13JYrg1km Sony. (n. d. ). Discover 3D World Created by Sony. Retrieved October 22, 2010 from http://sony. com U. S Census Bureau. (2006-2008). 2009 Population Estimated Based on the American Community Survey. Retrieved October 23, 2010 from http://www. factfinders. census. gov