July 2018 (Done) - Practice PDF

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Summary

a) Consumer needs for the Nokia 3310 is communication.Wants  With lack of basic functions such as a smartphone, users such as elders and children can only use the device for calling, and will be less distracted by other matters, or be confused by various functions. They simply need to call.Desire ...

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a) Consumer needs for the Nokia 3310 is communication. Wants  With lack of basic functions such as a smartphone, users such as elders and children can only use the device for calling, and will be less distracted by other matters, or be confused by various functions. They simply need to call. Desire  Able to connect or work under 3G or 3G networks as well. People are also rekindling their interest for nostalgia, items they have used previously in their childhood.

b) Under demographic segmentation, the generation variable would be apt in this case. This is because people who have used this phone in their childhood, especially those born before the year of 2000 (before Generation Z), would be tempted to relive their childhood, and put its basic functions, to which lacks most and complex functions of a typical smartphone nowadays (such as surfing the net etc.), to good use. Under behavioural segmentation, the decider variable would be apt in this case. Parents who want their children to be focused on their studies and not distracted by a smartphone, or want elders to be able to contact them with ease without any margin for confusion during emergencies whilst at home, will buy these Nokia 3310 phones to enjoy their primary function – communication.

c) The Nokia 3310 phone would be subjected to the Decline stage. Although it has a relatively large market presence in the past, most of Nokia’s market share died out after the introduction of the smart phone. Current consumers are also more prone to using smartphones, rather than basic Nokia phones that only facilitate communication, to enjoy various functions such as browsing social media platforms, surfing the net, monitoring health functions, tracking sleep, geographic navigation, etc. However, there is still a market for the Nokia 3310 even though it is an outdated phone because people who were born before Generation Z are starting to foster the interest for nostalgic items used during their childhood, and they believe that this product is sufficient enough to fulfil their primary needs.

Each product is priced only at less than $100, and research and development costs would be spent by HMD Global to switch the phones from 2G to 3G.

d) Nokia 3310 will be distributed selectively because there is not a big market for it, and it is priced rather low, which can in turn attract lower profits. Electronic retailers and distributors would be more inclined to sell smartphones due to 5G, the current trends of the market, and potential profits to be gained. Therefore, only a few willing intermediaries would be undertaking this role to sell these products to the consumer. Events can be held in areas of high traffic or in the stores of retailers willing to sell this product. The public, including those under Generation Z, will be able to experience how to use the Nokia phone, and to learn how their parents or people in the past use these phones for their daily lives.

Ai) Points of difference are attributes or benefits consumers strongly associate with a brand and believe they could not find to the same extent with a competitive brand. In this case, it is negatively correlated because Singaporean consumers are typically averse to China-made goods, especially those priced lower than expected. Points of parity are attribute or benefit associations that are not necessarily unique to the brand but may be shared with other brands. Hotwind sells clothes, shoes and accessories at affordable prices, while claiming that they are of high quality. Competitive point of parity seems to be observed in this case. Hotwind is a Chinese brand, and the vice president was tempted to put up Chinese characters on the signboard, but was discouraged and compelled to follow local trends after a business associate shared that consumers have a negative or not as favourable connotation or impression to Chinese goods and brands here.

Aii) Hotwind can tailor more localized taglines into their advertisements and posters, such as Singlish or relatable quotes referencing in-store items for daily use. Hotwind can also develop and share relatable stories relevant to them with consumers so that they can relate more on a personal level.

b) Messages delivered by attractive or popular sources (celebrities, babies, animals) tend to achieve higher attention and recall. Spokesperson’s credibility comes from expertise (specialised knowledge), trust worthiness (objective and honest) & likability (attractive qualities such as humour, candour, and naturalness). Message source is important because consumers are sensitive to reviews, price , how the product aligns with them and future prospects of a certain good or service. They would want to believe that the product is worth the money with multiple long-term and useful benefits before they develop the inclination to buy. Their friends, peers, family members or favourite celebrities can also influence their purchase decisions as a form of assurance and social acceptance (if their favourite celebrities are using a particular brand of clothing, they would also want to follow suit).

Li Ning can hire a famous athlete to be featured using their products in advertisements and banners, especially athletes well-known in Singaporean or international context. Consumers would more likely find the brand credible if an athlete such as Tiger Woods using their products to compete in sports competitions.

c) Hotwind can hold frequent promotions and events to boost consumer expenditures and store footprints. The company can hold in-store promotions with discounts if the consumers buys multiple selective items. Hotwind can also engage virtually via quizzes, polls and challenges, understand how Hotwind products can be used (eg: Tiktok clothing styling videos) and hold physical events where the company can connect with consumers (best if there is an influencer or celebrity around).

a) Age & Life Cycle: Those who are deteoriating in eyesight, especially elders, can come to these stores to buy prescriptive glasses. They would want to buy suitable glasses customized to their eye degrees. Youth and millennials who have a habit of being too close in contact with electronic devices can come to these stores to buy suitable spectacles for improved eyesight. Personality & self-concept: People now see spectacles as a fashionable accessory, especially under the influence of South Korean celebrities who have perfect eyesight. 5 to 10% of customers do not use a prescription but buy these spectacles as an accessory to catch up with the latest fashion trends. Other than that, there are many design options to choose and buy for each pair of spectacles.

b) The services differentiation refers to designing a better and faster delivery system that provides more effective and efficient solutions to consumers – Reliability, resilience & innovativeness. In this case, ordering ease and delivery could be variables. People do not need a prescription to have a pair of spectacles now, and they can collect the spectacles 20 minutes after payment. Value pricing could be adopted by eyewear brands, especially for Korean-styled frames and different lens for different eye sights. Consumers can now buy high quality spectacles with prescriptive lens at $98 to $198, which could have costed $300 to $400 with limited frames and long waiting times for new, customized ones.

c) Oblique eyewear can interact with consumers on social media, especially for direct messages, tags or comments. They can also set up a timely customer service hotline or chatbot to answer any queries or complaints with ease and effectively. Other than that, they can set up attractive membership programmes, where members are entitled to seasonal discounts and exclusive events (eg: meet up endorsed model/celebrity who is ambassador of the brand)....