In today’s world, the market for cell phones is becoming more and more competitive. Even if one is creating a completely unique product, one needs to take into account the potential competitors since the market is very dynamic. Max Fischer wants to create a venture which will be related to prepaid cell phones exclusively.
We propose to you a business idea of a venture which will target the potential customers of Prepaid cell phones. While cell phones with package deals from Virgin, T-mobiles and so on, are being used in the market, the market for prepaid cell phones is increasing rapidly. For this particular reason Max has come up with the idea of targeting that population with starting a business which concentrates exclusively on prepaid cell phones.
With Max’s technical background, and my own business experience, we feel that this venture could be a success. While Max can provide with all the technical contacts and resources, I will help with the strategic planning and business related concepts which must go into the development and launch of the product.
Initially extensive market research will have to be done. This will involve both Primary research as well as looking at second hand data. Firstly, second hand data can be looked at to identify details which perhaps other businesses have collected for a similar or different purpose. This can involve analyzing existing businesses, their strategies, performances, USP’s and so forth. Next, a Primary research must be conducted in order to find out exactly what we will need. This will involve identifying different markets of cell phones, also locating the areas where a niche can be created. Surveys, questioners, observational tools can be used. This step is of utmost importance because it will guide us to the most profitable areas of the market; either the mainstream or the segments which have not yet been exploited. (Market research)
Once a complete market research has been conducted, different segments have been identified, a SWOT and PEST analysis will further help with the positioning and development of the product.
A PEST analysis will further strengthen the market research data. The PEST analysis will help us identify the potential and existing conditions in the market on a Political, Economical, Social and Technological basis. This will be very important for the product development, and will also help decide whether to create a niche or go mainstream.These factors will be analyzed to predict whether or not the market for prepaid cellphones is likely to increase or decrease. (PEST)
Next a SWOT analysis must be conducted. This will give details regarding the strengths and weaknesses of the people and resources behind the business plan. It is important to recognize these since it will help idetify what additional resources are required and what strengths within the business can be used to develop and market the new product. This strategic analysis can be conducted for both the external environment and the internal business environment. A SWOT analysis of the external environment will recognize the potential and existing threats to the business; the opportunities available and the good and poor aspects of the target market. (SWOT)
After all background research has been conducted; the focus can be brought upon the development and marketing of the product. The development of the product will depend upon research conducted in the technological field. Additional attention must be paid to the consumer choice recognized through market research. After the development of the product, the Price and Distributional channels must be recognized and resolved. Again, this will be based on the information collected through market research. Next Promotional development will be conducted. A good promotional strategy will be adopted, ensuring the product gets the coverage that is needed. (5P’s)
Lastly, the test launch will be considered. This test launch will be restricted to a limited geographical location which will be a good representation of the target market. This launch will help identify if the development, pricing and positioning of the product is effective.
Using all the above mentioned product development strategies, and the technical education and contacts which Max can provide, this new venture can be of great success in terms of generating profits and satisfying consumer needs.
References
5P’s. (n.d.). Web.
Market research. (n.d.). Web.
PEST. (n.d.). Web.
SWOT. (n.d.). Web.