Introduction
The world of globalisation and industrialisation is growing at a great pace, which has sent businesspersons, merchants, and entrepreneurs into a competitive arena, thus forcing them to find alternative methods to boost their businesses. For instance, introducing a variety of products to meet consumer needs and demands as well as increasing their competence in the market structure. As new products emerge into the market, it is a common knowledge that none of them has a ready market place (Moyes & Lawrence 2003). The most common strategy utilised by manufactures and entrepreneurs is sales and marketing approach, which involves several activities that intend to provide consumers with relevant information regarding their new products. This study seeks to provide a detailed product feasibility report for new android Smartphone in the Chinese market.
Synopsis of product feasibility
Currently, within the business paradigm, product feasibility has become a necessary aspect to enhance business competitiveness and market dominance. According to Abou-Moghli and Abdallah (2007), product feasibility is one of the essential business marketing elements in the market analysis process, which is deemed as a scientific tool of obtaining relevant information pertinent to the provision of realities of the targeted market. Generally, product feasibility study refers to analysis and evaluation of the potency of the intended business project in terms of provision of services or product targeted at giving decision makers confidence over the execution of a business idea. Bateman (2004) affirms, “As a preliminary evaluation of a business idea, a feasibility analysis is completed to determine if an idea is worth pursuing and to screen ideas before spending resources on them” (p.72). Product or market feasibility normally provides an opportunity for recognition of prospects affiliated with the introduction of the new product or service before a company produces an everlasting business plan regarding the new business idea.
For any business to become successful, market and product feasibility studies have become essential for small, medium, and commercial business enterprises. Research denotes that economic feasibility analysis must reflect on a preliminary evaluation of a business proposal to distinguish if it is worth pursuing. When decision makers deem a business idea unworkable, it is necessary to drop it or rethink it in a bid to avoid engaging in null businesses investment (Reilly & Millikin 1996). Once a business idea has proven feasible, decision makers are capable of developing a business plan and further launch the business venture. According to Bateman (2004), a positive market or product feasibility analysis gives an entrepreneur the needed morale to the gateway of pursuing the business idea.
Description of the new product
Growth in global technology has enhanced competition among accessory related companies, with effectiveness, efficacy, and reliability being among the considerable factors that consumers’ interests lie. The proposed new business product is an integrated Smartphone with completely different and upgraded features, which are meant to consume the entire Chinese Smartphone industry. The new phone, which is currently under test, has several features that have proven significant to users by bearing a consideration of all views related to consumers of similar products. The new make manufactured by Tecno technologies in China is a technologically updated phone, which is suitable for the young generation due to its vast number of features that make it unique. Tecno N7 Smartphone is a pocket friendly phone that is reliable with an extended battery life, an estimated talk time of about 9 hours, runs on android operating system, wide fast touch screen, high processing speed enhanced by dual processor of the latest version, mobile tracking system device incorporated, and perfect 4G Internet speed.
These features imply that Tecno N7 is not an ordinary Smartphone, but an extraordinary technological product. With the innovative design of this mobile phone, consumers are capable of enjoying all Internet related activities at the comfort of their stay, with long lasting battery life enabling effective and uninterrupted communication for several years. The increasing importance of fashion and style in mobile phone currently affiliates with the introduction of Smartphone including those with android operating system and the apple phones (Falaki et al. 2010).
Consumers have considered “Smartphone” as a trend of future wireless communication within the advanced technology for it bears traits similar to portable computers (laptops). One of the unique features associated with this Smartphone is battery power performance, which has been a challenge to several phones of this type, as well as the mobile tracking device. Hang et al. (2012) postulate that Smartphone manufacturers globally have managed to provide unique gadgets; regrettably, they have been unable to use their technology to provide proper battery power solution, thus making consumers lose confidence in their products.
The probable aim of introducing the mentioned new product in the market is to instil and restore confidence among Smartphone fanatics to continue using android-based Smartphone devices. Since the advent of Smartphone, mobile devices have turned into small personal computers and much has transpired with several studies building their interest in examining consumers’ perception on these products. According to a recent empirical study conducted by Hang et al. (2012) who collected usage data of 4,125 participants and 22,626 applications, “Communication is still the main use case for Smartphone closely followed by content-based services like Internet surfing and social media application” (p.1).
Both of these features and related applications have proven significant, though disadvantaged by their high power consumption ability, an aspect that most consumers find tiring and embarrassing. In a bid to restore faith and interest among consumers of Smartphone regionally and globally, Tecno Mobile Phone Company decided to introduce a modernised Tecno N7 android Smartphone with greater power saving capability and a long life battery with intensified mobile security to users.
Description of the target market
One of the most important aspects in the product feasibility study is the market evaluation and analysis. As postulated before, it is necessary for the involved company or organisation to establish the target or proposed market where the product will serve. According to Moyes and Lawrence (2003), the basic aim for establishing the proposed market is to examine the potential clients considering the regional demographics including psychographics or life style and the entire consumers’ social status of the target market to determine the prevailing status of the market (developed or developing).
Other important objectives associated with identification of the target market include identifying competitive advantages of the intended product, identifying the potential competitors, as well as establishing marketing strategies needed to propel marketing activities of the product. All these reasons are among the major considerations that guided the feasibility study of the newly introduced Tecno N7 android Smartphone. Characterised with the perceptions held against previous android Smartphone mobiles, it was paramount to undertake market analysis.
Tecno N7 Smartphone mobile will primarily target the local market around China before hitting the global business sphere depending on the initial perception of the product from the background. China is one of the competitive market places for technological products renowned globally, with several of the products originating from this country proving competitive in the international market. However, the Chinese local market is a largely populated market composed of a large number of consumers of technologically based products, who in the recent past have complained of poor locally made products by some companies.
The market is rich of different types of technological products including phones and computer accessories among others. The rich technological local market has flared in the European world with a number of consumers hailing from different parts of Europe. The company chose this market since it involves young and potential consumers that are technologically updated and of great knowledge on Smartphone mobiles to investigate its competence through consumers perception.
Since the company intended to distribute the product through distribution channels, the market segment composing of different buyers was essential. Given the fact that the Chinese local market composed of the consumer market and business, market Tecno N7 series bears a great advantage of getting potential clients from these regional markets. Consumer market refers to a form of the market where most purchasers or customers are individual persons; on the other hand, business market describes an organisation or organisations capable of purchasing the product or service. Since the regional market in China comprises the two potential clients, the business is likely to avoid suffering huge loses since this aspect will facilitate getting a response from a variety of clients. The most closely related product seems to be the famous Smartphone mobiles including Huawei phones, Samsung phones, Sony Xperia phones, and Alcatel mobiles among others. However, the model and features of these phones differ distinctively with Tecno N7 possessing greater and unique features.
Market entry strategy
Given that the Chinese regional market is a very competitive market, a complex marketing strategy that will present Tecno N7 with an entry into the market is essential. Product initial entry into the market is always a crucial issue among managers of businesses, and thus poor entry strategy may affect the entire life of the product in the market (Novak 1996). After a comprehensive analysis and research of business failure associated with product feasibility in the preliminary stage, the management and marketing panel will ensure a critical observation of the aspects of such business letdowns.
During the product entry stage, which will determine the current, proceeding, and future life and existence of Tecno N7 Smartphone, the company is set to use several mechanisms. Tecno Mobile Phone Company will consider the challenges and potential barriers established during market analysis stage in the market area. One of the mechanisms includes customer relationship and satisfaction through intense customer care related services and trade fare agreements.
It is normally ideal for a business introducing a new product to meet all the local and international business protocols before introducing a new product to human market consumption. This aspect creates consumer confidence in the consumption of the business product. After analysing the cost of the related phone products in the Chinese local market, the company decision makers will estimate and discuss the entry price, which is probably a lower price relative to other competitive products.
Bateman (2004) asserts, “A crowded market, with lots of competitors, is typically characterised by fierce price competition and low operating margins” (p.81). As detailed in the market description before, similar characteristics exist in the Chinese local market. Normally, businesspersons consider lower market prices as the best competitive advantage. As crucial market entry elements of success, Tecno Mobile Phone Company will practice switching costs to the target market, observe customer loyalty, engage in agreements with customers, suppliers, strategic partners, and control the distribution channel through a proper promotional and marketing plan.
Company’s plan on generation and screening of ideas
The responsibility of ensuring critical decision making within most companies lies in the management sector where all managers ensure broad participation on decision making depending on the company’s structure. According to Wilson (2010), entrepreneurs are capable of greatly increasing their chances for success by analysing their business ideas, the management team, and the product market place. The initiative of generation and screening of ideas is further eminent in other studies where Reilly and Millikin (1996) state that it is necessary for businesspersons to evaluate whether their management teams “possess the characteristics that are most common to entrepreneurial success” (p.1). Decision-making in any company forms an integral part in executing business plan and determining the future prospects of businesses. However, before a company considers an idea as successful, there is a need for employing substantial efforts in analysing and screening it before spending resources on the same, and this decision may have negative repercussions in the future of the business.
In the initial stages of generating the business idea regarding Tecno N7 phone series, the company will request the entire management team to hold meetings to discuss new business ideas. According to informal knowledge acquired from the company workers, there is a group of 10 managers in this company from different departments, which the company depends on generation of business ideas. Inclusive of stakeholders and other managers in the company, discussion of the created idea before the top officials including the C.E.O and other shareholders validate the business idea depending on several issues. The validation of the business idea falls under the screening phase where the manager of Tecno Mobile Phone Company will engage in a serious sitting to screen the business idea in anticipation of launching the new venture. The management in this stage will consider several critical issues within the company. As postulated by Bateman (2004), important issues considered in screening of ideas may include “product/service feasibility, industry/market feasibility, organisational feasibility, and financial feasibility” (p. 77).
Positioning of the product in the market
There will be expected stiff competition in the market from famous old companies’ products including Smartphone mobiles from the major international companies including Samsung, Apple, and Sony Ericson among others. However, Tecno N7 series will be the second Smartphone produced by Tecno Mobile Phone Company, which is an upgrade from the initial phone that had received substantial global awareness from its unique features incorporated in the phone. The company expects that the product will receive great public limelight in the target market especially from the new features incorporated.
From as low as an estimated price of about $200, the price seems to be well positioned in the pricing strategy to lure consumers into its consumption. If the company executes business idea in an intellectual manner, the company will probably benefit greatly from improving the company’s reputation through the quality of the product as well as the general company’s financial image. The company expects the product to raise the annual profit to an estimated profit of about $7 million.
Consumer’s perception on the product
Based on a comprehensive research undertaken by the company’s marketing on a similar product released in the previous year, the clients and consumers of Tecno products globally are increasing gradually with the company’s reputation also growing. Novak (1996) asserts, “A statistically valid survey delivered to potential users or consumers will provide the most exact information possible about market demand” (p.19). Samples of the new product (Tecno N7 Smartphone) introduced in the Chinese local market through the business market revealed that the product is capable of attracting millions of users from the local and regional market. Reports documented by major business clients for Tecno Mobile Phone Company has shown considerable clientele morale in consuming the products even before its official launch. The possibilities of receiving greater numbers of consumers remain high for this product given the previous perception on an almost similar phone type, which is an indication that consumers are expecting the best from Tecno N7 phone series.
Estimated sales potential
As postulated before in this report, the company remains optimistic about the performance of Tecno N7 Smartphone mobile in the Chinese local market before getting to the international market. According to Reilly and Millikin (1996), a good product feasibility plan must include an estimation of the basic financial feasibility of the business, which is “inclusive of potential sales revenues, fixed and variable costs, and break-even figure” (p.4). However, the major aim of this report is to provide expected sales output (sales estimate). The company expects to obtain its estimated sales output of about $7 million annually. On a monthly basis, the initial sales estimate expected is $5000, with an expected growth of $750 each month. All reports documented on the company’s daily, weekly, monthly, and annually basis will continuously undergo validation by company’s sales experts. The table below presents the estimates of sales profit of each month for a period of 1 year.
Table 1: Annual estimated sales potential.
Recommendations on product engineering, testing, and launching
The product engineering process should admit and follow all protocols governing manufacturing of products including meeting the standards for consumer use as well as observing issues governing employee welfare (Hoagland & Williamson 2000). It is important for Tecno N7 manufacturing team to observe Corporate Social Responsibility (CSR) to keep a good relationship with its neighbouring including the entire community surrounding the company.
The product testing and justification will involve a stringent process of research and investigation from global technological experts from across the world to investigate the health safety of the product for human consumption (Hoffmann et al. 2003). After completion of all procedures including manufacturing and testing of the product, the product (Tecno N7 Smartphone) should undergo an official launching with the press and other potential organisations capable of increasing the promotional aspect of the product should attend. All stakeholders directly and indirectly affiliated with the company should receive an invitation to the official launch of Tecno N7 Smartphone.
Recommendations on product advertisement promotion and distribution
This report strongly recommends that product advertisement, promotion, and distribution are essential sales and marketing strategies and the company must seriously consider them especially in the preliminary stage of the product. According to Hoffmann et al. (2003), marketing of a newly introduced product is one of the globally renowned strategies for improving the market image of a product, increasing product awareness, and improving the company’s competitive advantage. The company should formulate a strong advertisement strategy that should target consumers through daily newspapers coupled with weekly beauty and business magazines to target young consumers and interested business tycoons, together with radio play stations and TV programmes to support the advertisement of the Smartphone. The company should formulate a strong promotional team composed of young and energetic youth full of potential and knowledge to convince consumers. For easy distribution, the company should consider all famous phone outlets in the Chinese local market to provide a quick entry into the market.
Conclusion
Conclusively, it is important for the producers and manufactures of new products to consider the regional and international competition before the introduction of a new product in the market. Product feasibility study is essential to provide all the basic information needed by investors to make a critical decision of investing in the production of the product (Wilson 2010). As commonly known, the main objective of setting up business is to generate more revenue in terms of profit, and thus it is essential for firms to consider both the market and product feasibility before venturing in a new business idea. According to Bateman (2004), comprehensive analysis and discussion of the newly introduced business idea is imperative to screen all the ideas raised before making a final investment decision. With all the importance points discussed in this report, managers should learn how to incorporate new business ideas through comprehensive feasibility research and investigations to identify which idea is worth undertaking.
Reference List
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