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Assignment 2 Product Reassessment

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Product Reassessment
There are many factors to consider when re-positioning a phased out
product. Segmentation, targeting, and positioning are important when
identifying the specific target market that you will supply in order to
sustain growth. The product that I have in mind to reposition is the MP3
player device. Apple already has MP3 players that have been very
successful due to the increase in technology. Their products have
ranged from 60 GB color screen iPods to the lower gig shuffle without a
screen. These Mp3 players were great in their time however; due to an
increase in technology, Americans wanted a gadget that was an all in
one. This is where the popularity of iPhones, Androids, and other smart
phones saturated the market.
Users no longer prefer to carry around a MP3 device when they have
newer more technical savvy gadgets. For example, the smart phone has
given its consumer base the ability to have the same MP3 capabilities,
internet usage, games options and more in one device. There is no
longer a need to have stand-alone devices for different uses. In order to
acquire the same concept as Apple I will need to thoroughly study my
competitors target market approach. For instance, Sony and Samsung
actually never reached the level of success that Apple has with their
iPods, one reason being is that they did not analyze their pricing data to
determine what target market would work best for them. Instead, they
choose the same segmentation as Apple.
Statistics show that Apple and their iPods dominate the MP3 player
market with a 70% selling advantage over other MP3 player
manufacturers (Rollins, 2011). Consumer lifestyles
MP3 PLAYER REASSESSMENT
have been geared towards the technology age, consumers are wanting
one item to do everything vs. multi items performing one task. Such
devises that are increasing in demand, for example: mobile phones,
navigation devices, televisions or car radios, are now able to play back
MP3 files. This is why the demand for MP3 players is rapidly decreasing.
The increasing number of people with low to high incomes results in
greater demand for products using advanced technology.

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Nowadays the ability to satisfy the basic needs have changed the
structure of spending. An increasing percentage of consumers expenses
are being spent on modern devices including tablets, laptops, and smart
phones (especially when the mobile phone is essential to everyday life).
The target market has shifted to more of a middle upper class consumer
base. Due to a high price increase my product will become a major
competitor of Apple. I have chosen to reposition the same MP3 device;
the only key difference would be that my chosen market segmentation is
geared towards a lower middle class consumer base. In regards to
marketing my product I will be using demographic data to support
Mexico being my target market of choice being that this country has
flourished and still is throughout the years.
MP3 Player Target Market Demographics in Mexico
I have positioned my product by targeting different demographic groups
than my competitors. I have differentiated based on age, income,
gender, and other demographic distinctions. For example, the number
one competitor Apple offers iPods phones to their consumer base, which
includes MP3 player capabilities all in one. This new technology has
MP3 PLAYER REASSESSMENT
expanded the market to attract new consumers. I will be utilizing an all in
one device, my aim is to market the MP3 player as a standalone device
with almost the same capabilities as the smart phone MP3 player has,
just without the phone aspect. Mexico has a large population to target
and it will be very successful due to their advancing growth. The recently
conducted 2010 Census showed a population of 112,336,538, making it
the most populous Spanish-speaking country in the world (Central
Intelligence Agency, 2012). Usage of radio, television, and Internet in
Mexico is prevalent.
They have become major players in the broadcasting industry. Televisa
—the largest Spanish media company in the Spanish-speaking world
has proved to be a very lucrative market for them. The electronics
industry of Mexico has grown enormously within the last decade (Daniel,
2011). In 2007 Mexico surpassed South Korea as the second largest
manufacturer of televisions, and in 2008 Mexico surpassed China, South
Korea, and Taiwan to become the largest producer of smart phones in
the world (Daniel, 2011). However, many people are unable to have such
a luxury device, due to the cost. The great thing is that there are almost

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half a million (451,000) students enrolled in electronics engineering
programs and this is where my position base begins. One base used to
reposition the 2012 MP3 player is that it will have the look of luxury, with
the affordability ticket that exudes fashion, educational and
entertainment.
The core target market for MP3 players will be non-to highly technical
savvy young adults and teenagers in Mexico with commercials
developed around the message strategy of style and portability. The
MP3 music player will have a differentiated market segmentation
MP3 PLAYER REASSESSMENT
characterized in age, gender as it did in the U.S. However, its pricing
structure will be geared towards the cost conscious customer. This is
where Mexico becomes a great target market.
According to the recent conducted 2010 Census there are approximately
1,410 radios broadcast stations and 236 television stations (Central
Intelligence Agency, 2012). Mexico has also improved its mobile cellular
availability, with the number of mobile users out weighing fixed-line
subscribers (Central Intelligence Agency, 2012).
The market segmentation of the MP3 player in this country will also cater
to young adult males and females 14 to 25 years of age with preferably
a monthly household income of $20,000 and above. They will have a
passion or interest for music, educational platforms along with a love for
local television programs. In general, this MP3 player is designed for
anyone interested in carrying the equivalent of hundreds of CDs worth of
music, and numerous other files, in a small, easy-to-use design that fits
in one's pocket or can easily be attached to a book bag or purse. In
order to reposition my product successfully I have chosen both
quantitative and qualitative survey research. By utilizing qualitative, I am
able to first handily have personal interaction with my target market, as
well as the ability to obtain key richness of data, their opinions, attitudes,
and case studies.
Quantitative research will be used just for the collection of demographic
information, like the target age and gender of the product and the
hobbies of the target group (Power Decisions Group, 2010). Along with
how strongly they feel about various issues. I will gather this data
through college students’ focus group sessions. Utilizing this avenue, I

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I was having a hard time with this subject, and this was a great help.

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