MarketingPlan: Situation Analysis
MarketingPlan: Situation Analysis
Segmentationand Target Market Analysis
ITToday Company is a startup firm that offers technical assistance tothe customers who own some of the newest technological gadgets suchas tablets, Smartphone, printers, and laptop. In the line ofgeographic segmentation, the firm is keen to target the major citiesand towns in the country. The population in the urban areas is seento be quite high which makes the demand for the services excellent aswell (Perlroth, 2013). Additionally, it is at these urban centerswhere most of the manufacturers of these gadgets are based. It onlymeans therefore that other services related to these devices areexpected to concentrate here. On demographic stance, the firm seeksto serve the persons between the age of 17 years and 35 years. It isbetween these ages that most of the populace embraces the technologyand its advancements (Mascareigne, 2012).
Thosewho own these gadgets in this age are seen to be around 80% of thewhole ownership cycle. In this prospect, it is expected that demandfor this target market will be relatively stable. on psychographicterms, the lifestyle of the target that this company seeks to serveare those online addicts who utilize most of their time behind thecomputers, using tablets, and accessing the internet using theSmartphone (Bull et al., 2016). With this conception in mind, thecompany is well aware that the faults that come with the access tothe Internet services will make it gain substantial revenue. Thebehavioral characteristic of the target market the company seeks isthose who are technologically oriented while requiring someassistance to understand the functionality of these gadgets. Sincethe primary aim of the group is create a profound ground for growthregarding profitability, the marketing segmentation that has beendiscussed is essential for its growth (Fleisher & Bensoussan,2015).
Thebusiness industry for IT today is quite dynamic. The dynamism iscreated by the ever-changing levels of technological advancementsthat are seen to be challenging. The main competitor for the companyis ABT electronics which one of the leading retailers in the consumerelectronic goods. ABT is known for its after sales service where itoffers technical assistance to its customers. The main competitiveadvantage for this company is a high level of efficiency with whichit provides its services. The high efficiency has created a platformfor expanding its clientele base. For this reason, ABT Electronics isdeemed to have the highest market share in the country. A criticalanalysis of the strength behind this efficiency shows that thecompany has a profound information system (enterprise resourceplanning) which has helped it streamline its operations to enhancecoordination of activities (Sevkli et al., 2012).
Anotherprominent competitor is CompUSA Company, which also sells theelectronics while also, provides the technical assistance to itscustomers. The strength of this company is the stratified marketingstrategy where it has utilized various marketing platforms to createawareness to consumers of its technical assistance services.Additionally, the firm has established good rapport with itscustomers where they are held accountable for every promise they giveto the customers, which they indeed deliver. CompUSA, however, has amajor weakness of inadequate personnel who can deal with high techclients (Brahmi, Zouari, & Karim, 2014). To gain sufficient entryinto the market, IT Today Company will embark on the provision ofquality services. This move will be enabled through the employment ofhighly qualified employees who will be able to deliver the qualityservices to the customers. Customer management is also crucial inthis area. Hence, the employees will be required to master the art ofcustomer service and management which is quite critical in ensuringthat the company expands and maintains its clientele base (Sevkli, etal., 2012).
ITToday Company is expected to a team of qualified staff with requiredskills in the technology of different field that they would use inservice provision. This employee base is essential in ensuring thatthe company expands its clientele base. The company is due to employan ERP program which will help in the automation of the businessprocesses while providing high level of efficiency in the serviceprovision. Lastly, the company has a right amount of capital thatwill help it drive its operations efficiently (Schlegelmilch, 2016).
ITToday Company is a startup company where most of its management staffis still new in this field. There would be a predicament in themanagement, which the competitors might take advantage. Additionally,the company does not have an adequate marketing strategy that wouldnot only drive sales but ensure customer loyalty. Another crucialweakness is the fact that the demand and supply of its services willbe dependent upon the sales of these gadgets. If some of thesegadgets are faced out, they will not be able to get more customershence impeding growth (Brahmi, et.Al, 2014).
Thecompany has the opportunity of partnering with the best electronicbusinesses in the country and utilizes their well-structureddistribution lines to gain customers. Furthermore, with good capitalbase the firm can expand its operations countrywide. Lastly, the firmis in a position to partner with other competitors to control themarket (Nasiopoulos et al., 2015).
Thereare many competitors in the market, which can impede penetration intothe market. The rapid technological advancements make the companyrisk becoming obsolete in its services. Finally, the governmentregulations on fiscal policies have a direct effect on theprofitability of the enterprise. Costs such as taxes that cannot becontrolled by the firm can make the business run at a loss andeventually shut down (Nasiopoulos, et al., 2015).
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