Mktg 303 Blue Ocean Report

Blue Round

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Situational analysis

For the Blue Ocean rounds, we will be changing from competing for market share to the creation of new markets through focusing on non-customers. We expect these non-customers to become customers through the offering of lower price products.

Marketing Objectives and Sales Forecast.

Our main objective is to develop low cost operations, with a differentiated product that creates a market space from non-customers.

Figure 1: Market Forecast from year 44[pic 2]

From the market forecast in figure 1, it is evident that the largest customer segment in unit sales is 6-21 year olds. This area is also expected to grow, however this group is highly price sensitive.

Corporate Projects

Year 44:

L. 2,000 – Recruiting highly qualified people to stimulate strategic thinking

Year 45-49

None.

Segmentation/Targeting/Positioning

Segmentation

The market is still segmented by age, however for Blue Round, we are focusing on picking up non-customers, which are segmented into paths 1-6, with 1, 3, and 5 being the only viable options.

Targeting

We have decided to target two paths of noncustomers being path 1 and 5 as they share a lot of similarities. Path 1 are described as young sportspeople, whilst path 5 is retired people, and families. Both share a high level of price sensitivity, and desire an unsophisticated product that can be played in groups.

Positioning

We have chosen to position our new console as a low cost console, whilst still offering characteristics that the Visual Explorations indicated.

Marketing Mix

Product

As you can see from the figure below, our Blue box will be the cheapest console. Whilst not sporting great specs, we will incorporate various characteristics such as a high number of players, simplicity, personalization and playing convivial games. These characteristics were chosen as the noncustomer paths we have selected have a strong desire for these offerings.

Figure 2: Offering Characteristics from year 44