- April 20, 2014
- Posted by: essay
- Category: Term paper writing
Today, Light Emitting Diodes (LED) can gain a large share of the market and to replace conventional lighting systems due to better technical characteristics of LEDs and their higher energy efficiency. At the same time, the company developing LEDs should be aware of the importance of reaching the target customer group. On the other hand, the company should take into consideration the possibility of repositioning its product, i.e. LEDs, to attract more customers and to make the product more applicable than it is at the moment. What is meant here is the fact that the wider implementation of LEDs in different fields can put the company in an advantageous position compared to companies manufacturing conventional lighting systems but such repositioning will need certain efforts from the part of the company to make LEDs applicable in new fields, such as inner or outside lighting, for instance. However, before repositioning the product, the company should consider carefully its target customer group and conduct in-depth marketing research. In this regard, the company can focus on the study of lighting systems market to find out its target customer group and to assess the potential of the new product in the target market. At the same time, the company should assess the readiness of customers to buy the new product. Therefore, the company manufacturing LEDs can expand the scope of applications of LEDs and offer customers new lighting systems for the interior and outside lighting based on LED technology but the company should come prepared for the tight competition in the industry and the necessity to gain the customer attention and make customers choosing new LED lighting systems.
Repositioned target market demographics
The target customer group will expand substantially since the company will focus on adult customers, who can afford purchasing LEDs and LEDs bearing equipment. In fact, the company should focus on the detailed analysis of the target customer group and demographics. In this regard, it is worth mentioning the fact that the introduction of new LED-based lighting systems will attract many customers, if the new product is affordable. At the same time, LED-based lighting systems should focus on customers, who are the most interested in them. In this regard, customers, who are concerned with using energy-efficient equipment, will comprise a large part of the target customer group of the new product because LED products are energy-efficient. In fact, the high energy efficiency will put LED-based lighting systems into an advantageous position compared to conventional lighting systems because the latter have lower energy efficiency compared to LED technology (Myer & Goettel, 2010). In addition, customers interested in environment-friendly technologies are also likely to be interested in LED-based lighting systems and the company can count on these customers. However, customers interested in energy-efficient and environment-friendly technologies belong mainly to the younger generation and the target age group of the new product will be 20-50 years old because these customers are the most concerned with environment protection and energy efficiency. In addition, people with low income may be also interested in energy efficient technologies but the inclusion of low income customers into the target customer group depends on the price set by the company for its new product. If LED-based lighting systems will have affordable price, low income consumers can start buying them as well.
The types of research needed to reposition the product
The quantitative research will be needed to find out the volume of the target market, the market share the company can potentially take and the approximate amount of potential customers, who may be interesting in buying the company’s product. In fact, the quantitative research is essential because the company has to assess accurately the potential of the market to develop the adequate marketing strategy. To put it more precisely, the company should assess accurately how much new product its target customer group will be able to purchase and the average amount of new products that can be sold on the annual basis. The adequate assessment of the potential of the market will give the company the possibility to forecast the demand and to start the production respectively to the demand. Otherwise, the capacity of the production of the new product may be excessive that will lead to overstocking of new products and, therefore, to financial losses of the company.
In addition, the qualitative research will help to find out the attitude of consumers to LEDs and their readiness to purchase the new product. The attitude of customers to the new product is very important because, if customers are not interested in the new product, there is no reason to start its production, unless the company expects to evoke the interest of customers in the new product and encourage them start buying the new product. The accurate qualitative analysis can help to find out whether customers and the market are ready for the new product or probably the company has to introduce some changes in its product, marketing strategy or promotion of the new product.