MRKTG101 Assignment 2 - STP Strategy PDF

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Assignment 2 for Trade Show Project - Segmentation, Targeting and Positioning Strategy (STP)...

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Assignment 2 - STP Strategy MRKTG101 Word Count: 1,001

Part 1: Segmentation Two segments which we believe would respond positively to our app are athletes and young adults living in Tauranga with restricted or full licenses. One segment which we believe would not respond well to our app is those with physical impairments.

Athletes over the age of 18 living in Tauranga would be an ideal audience for this app. Most athletes would be willing to give up their cars for a day and bike or run around for a reward that would lighten the load on their daily lives with gift cards and coupons for food. Due to there being a shortage in the responses in Sport New Zealand, the amount of athletes in Tauranga is a rough estimate because in the Bay of Plenty only 1,554 responded and 12% (187) were recorded as athletes (Sport New Zealand, 2018). If this were to represent the entirety of Tauranga then we would multiply the 12% by the total number of young adults between the ages of 18 and 34 and we get 2170 athletes. An age of 34 is the upper limit as most athletes retire at around the age of 33 (Christou, 2017). Even though this number isn't very high there is a bigger chance that they will respond positively to the rewards.

Young adults (between 15-29) living in Tauranga who want to pursue an active lifestyle that has their restricted or full licences would be another audience suited for this app. Young adults are more likely to be active than any other age group and getting them to give up their car for a day would not be as hard as it would be with other age groups (Karlis, 2018). Statistics from the 2013 census shows that there are roughly 18,100 people that are between the age of 15 and 29 that live in Tauranga (Stats NZ, 2013). Because this is such a large amount of people we believe it would not be hard to achieve the goal of reducing car days by 5,000.

Physically impaired people who are unable to walk or bike in Tauranga would not be a suitable group for us to target. It would be unlikely that we reach the goal of reducing car days in

Tauranga by 5,000. Physically impaired means that people are unable to do movements using their body as other people can, the amount of movement they are able to achieve is very limited and they may not have any coordination (USLegal, n.d.). When people ride bikes and walk they require the ability to coordinate and use physical movement which physically impaired people may not have. Therefore, it would not be appropriate to target our app towards them. Furthermore, it is estimated that 14% of the New Zealand population have a physical impairment (Stats NZ, 2013). The population of Tauranga is approximately 131,500 (Tauranga City Council, 2018). Since 14% of New Zealanders have a physical impairment, we can assume that approximately 18,500 physically impaired people living in Tauranga.

Part 2: Targeting The target market we have selected is young adults and students living in Tauranga who have a restricted or full car licence. One reason for this is because young adults and students are most likely to be in the process of, or have recently moved out of their family homes. They would have to be supporting their living costs, educational fees, and several other expenses for the first time. Since our app provides incentive by offering rewards such as food vouchers, etc., this market segment is likely to respond well due to these incentives likely fitting their current needs and wants. As shown in figure 1 below, the number of students enrolled in Tauranga schools is continually increasing (Figure NZ, 2018). From this, we have assumed that more students are likely to stay in the area to either study at tertiary level or find a job.

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Figure 1: Students Enrolled in Primary and Secondary Schools in Tauranga City, New Zealand (Source: Figure NZ, 2018)

We have chosen our target market to be both young adults and students as, according to figure 2, approximately 35% of students in Tauranga do not go on to enrol at tertiary level straight after completing secondary school (Figure NZ, 2018). This would make it difficult to market to only students at tertiary level as our market would be much narrower. We are targeting people with restricted and full licences as they are the most likely to own a car and be using our app. Those without licences using the app would not provide direct impact on achieving our goal of keeping 5,000 cars off Tauranga roads for full days over a one year period.

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Figure 2: Tertiary Enrolment of School Leavers in Their First Year After School in Tauranga City, New Zealand (Source: Figure NZ, 2018)

Part 3: Positioning We have decided to base our positioning on convenience/incentive and ease of use/accuracy. We believe that these are important factors for any fitness or data tracking app to consider. As a group, we have given each competitor and our own app a rating out of ten based on these factors. The competitors we have analysed are; health apps which are pre-installed on mobile phones, FitBit, Strava, and Garmin.

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Convenience refers to how convenient the product is for users to access. We concluded that health apps that come already on mobile phones are the most convenient as most people have access to a mobile phone, while Strava is the least convenient. Incentive refers to how the competitor incentivises people to use their product. We believe that both our app and Garmin provide a high incentive to their users through rewards and gifts, while health apps on mobile phones do not tend to incentivise people to use them.

Ease of use refers to how easy people find the app to use and navigate. We believe that both health apps on mobile phones and our app are the easiest to navigate, while Garmin can be more difficult to use.

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Accuracy refers to how accurate the app or device is. We concluded that Garmin is the most accurate competitor, while health apps tend to be the least accurate as they rely solely on GPS tracking in the phone.

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Reference List Christou, L. (2017, September 19). Life after sport: What do athletes do after they retire? Verdict. Retrieved from https://www.verdict.co.uk/ Figure NZ. (2018). Students enrolled in primary and secondary schools in Tauranga city, New Zealand. Retrieved from https://figure.nz/chart/BYhJA1E2IXinWMi3yA2SxeTsx7nJ9Mkj Figure NZ. (2018). Tertiary enrolment of school leavers in their first year after school in Tauranga City, New Zealand. Retrieved from https://figure.nz/chart/uQnaXRFfEkU30vwP-CeBCkbtj3fQU1Bus Karlis, N. (2018, June 10). Why millennials are more fit than any other generation. Salon. Retrieved from https://www.salon.com/ Sport New Zealand. (2018). Active NZ Survey 2018. Retrieved from https://sportnz.org.nz/managing-sport/research-and-insights/active-nz/active-nz-survey2018/ Stats NZ. (2013). Disability survey. Retrieved from http://archive.stats.govt.nz/browse_for_stats/health/disabilities/DisabilitySurvey_HOTP2 013/Commentary.aspx Stats NZ. (2013). Tables about a place: Tauranga City. Retrieved from http://archive.stats.govt.nz/Census/2013-census/data-tables/tables-about-a-place.aspx? request_value=24433&reportid=14&tabname=Ageandsex/ Tauranga City Council. (2018). Tauranga statistical information report May 2018. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/reports/statistical_information_repor t_may2018.pdf USLegal. (n.d.). Physically impaired law and legal definition. Retrieved from https://definitions.uslegal.com/p/physically-impaired/

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