The Icharge: No More Wires – No More Problems
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The iCharge: No More Wires, No More Problems.Maya AireyLee – 260608414Isabelle Brathwaite – 260683654Kristian Paul Fafard – 260690258Robert Li – 260690809Andrew Pratt – 260515938Salomé Zimmerlin – 260564642Marketing Management I – MGCR 352Fabienne CyriusMarch 10, 2016 Table of ContentIntroduction Executive Summary Consumer Segmentation and Targeting Targeting Strategies Consumer Behaviour Industry Analysis Competitive Overview Differentiation Strategies Market Share Conclusion References IntroductionThe iCharge is a new wireless electronic charger that will change the face of technology. It is compatible with Apple electronic devices such as the iPhone, iPad, and MacBook laptop. The iCharge keeps your electronic devices charged while eliminating cables, optimizing your workspace and making it perfect for teamwork at school, in the office or at home. While Apple customers are loyal to the company and are generally happy with the high quality of Apple products, they are not satisfied with the current Apple chargers. According to over 2000 reviews on Apples website, the Apple Lightning Cable has been given 1.5 out of 5 stars (Apple, 2016). The iCharge uses inductive charging technology, which is used by the many charging pads currently available on the market. However, where charging pads require direct contact with electronic devices, the iCharge will supply power to your devices over a distance of a few meters. The iCharge is the first step in what will eventually be a technological revolution. For now, this promising technology can be used to make life more convenient and keep workspaces tidy. The iCharge has the added environmental benefit of reducing the number of cables that are discarded each year. Executive SummaryThe iCharge will target young tech savvy consumers and existing Apple customers. Eventually we will expand to include students and business professionals to achieve long-term growth. We estimate a target market size of 3.38 million Canadian Apple product users (see appendix 1). Industry conditions for this product launch are favourable, as the consumer electronics industry has been growing very quickly in recent years. Our primary competitors will be manufacturers of charging pads, but we believe that the iCharge’s unique ability to charge over distances will win over customers.
Consumer Segmentation and TargetingThe iCharge is targeted exclusively at existing Apple consumers. 51% of all U.S households own at least one Apple product according to CNBC’s All-American survey, and therefore represent a healthy market in which to operate (Jodi Gralnick, 2016). Our innovator and early adopter target groups will be devoted Apple fans and tech savvy individuals. We believe that these individuals are primarily 20 to 40 years old ranging from upper to middle class who see it as a priority to be constantly up to date with the latest Apple technology. As the product develops we hope to expand our target market beyond innovators and early adopters and broaden our market to target a wide range of pre-existing apple consumers, such as students and business professionals. Targeting StrategiesIn order to target these segments, we have devised a number of strategies to ensure iCharge’s continual growth as the next big Apple product. By advertising the iCharge on the Apple website we can ensure the product will have huge exposure to our current Apple users who are constantly staying up to date with the latest technology. To reach our early and late majority target group of business professionals, we intend to promote the productivity benefits of the iCharge. Each year Apple offers a discount or free product to students with the purchase of a new laptop, a discount that is warmly received and eagerly anticipated. To attract students, one full year after the release of the iCharge, we will offer the iCharge at a reduced price as part of this promotion. The iCharge will be advertised as a device that is an essential part of any practical Apple user’s everyday life and will ultimately appeal to all segments within the Apple communities pre-existing market base. The iCharge will enhance the overall value of the Apple ecosystem.Consumer BehaviourThe iCharge is of intermediate complexity; too expensive and dissimilar to existing products for anyone to purchase it on impulse, but not quite so life-changing as to warrant extensive research. Before purchasing the iCharge, we expect consumers to undergo some limited research. They will need to assure themselves that they get enough value out of the product (given that it only works with Apple products) to justify the expense. There will also be some scepticism regarding the effectiveness of this new technology. Potential customers will be turned off unless we can demonstrate clearly that the technology is sound. There are several psychological/social factors at work with the different segments of our target market. Loyal Apple consumers form the core of our expected innovator and early adopter target market, and they will be strongly incentivized to purchase the iCharge in order to feel connected to a brand they have chosen as representative of their lifestyle and identity. The iCharge will be launched with all the usual pomp of a major Apple product, and will be presented as a direct extension of the creative and vibrant lifestyle associated with the Apple brand. The key value proposition of the iCharge, allowing easy collaboration and reducing the clutter of power cords, feeds directly into the user-friendly and people-focused theme associated with Apple products. Loyal Apple consumers will be driven to confirm and enhance their Apple-centric personal identities by purchasing this product.