(Sample) Assignment 3 - Major Assignment Group Report 1 PDF

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Group Assignment on the application of Consumer-Decision-Making-Process. ...

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MKT 10007 FUNDAMENTALS OF MARKETING

Assessment 3: Major Assignment Group Report

Lecturer / Tutor: Ms Carolina Sandra Giang

Tutorial Group: 3 (Wednesday 10.30a.m.-11.30a.m.)

Group Members: Ariana Chong Suk Eng (100076292) Connie Tang Sing Hong (100076205) Jamie Wong Wan Ru (100076331) Melissa Chung Yi Wun (100078557) Sofia Ng Shu Yi (100076289)

Executive Summary This report is aim to investigate the marketing environment, the consumer segmentation and provide recommendations for additional research. The marketing environment that was analysed include the industry, the competitor (SWOT), micro-environment and macroenvironment. The industry that ASUS in is computer hardware industry. Moreover, the competitors of ASUS are Apple, Acer and Hewlett-Packard (HP). The micro-environment for ASUS is the motherboard while the macro-environment for ASUS includes the economic, technological, culture and social environment. Besides, the choice of segmentation base is demographic, the three sub-segments and three profiling which is young adults, working adults and middle-aged adults and the attractiveness of each segment which involves the size and growth, structural attractiveness and the company objectives and resources was included in the consumer segmentation. In addition, the team also came up with some recommendations for additional research on ASUS, which is to improve their products in order for the consumers’ to gain interest on ASUS.

Table of Contents

Executive Summary....................................................................................................................i Table of Contents.......................................................................................................................ii Table of Figures........................................................................................................................iii 1.

Introduction.........................................................................................................................1

2.

Micro-Environment............................................................................................................1 a.

Industry Analysis.............................................................................................................1

b.

Competitor Analysis (SWOT).........................................................................................2 i.

c. 3.

Opportunities and Threats...........................................................................................3 Analysis of Micro-Environment Players.........................................................................5

Macro-Environment............................................................................................................5 a.

The Three Macro-Environment Factors..........................................................................5 i.

Economic Environment...............................................................................................5

ii.

Cultural and Social Environment................................................................................6

iii. Technological Environment.........................................................................................6 4.

Consumer Segmentation.....................................................................................................8 a.

Choice of Segmentation Base.........................................................................................8

b.

3 Sub-segments and Profiling Element...........................................................................8 i.

Young Adults...............................................................................................................9

ii.

Working Adults............................................................................................................9

iii. Middle-Aged Adults....................................................................................................9 c. 5.

Attractiveness of each of the segments.........................................................................10 Recommendations for Additional Research......................................................................11

a.

Key Question 1: Does ASUS only provide speaker and microphone port?..................11

b.

Key Question 2: How many USB plug is there available for the laptops?...................11

c.

Key Question 3: Does the international warranties include services for motherboard?... .......................................................................................................................................12

6.

Conclusion........................................................................................................................12

7.

Recommendations.............................................................................................................12

Reference List..........................................................................................................................13

Table of Figures Figure 1 : Tree Diagram of Computer Hardware Industry.....................................................................1

List of Table Table 1 : Table for Competitor Analysis...............................................................................................4 Table 2 : Table for Macro-Environment.................................................................................................7 Table 3 : Table for Age..........................................................................................................................9 Table 4 : Table for Attractiveness of Each of the Segments.................................................................10

1. Introduction The purpose of the report is to study the marketing environment, the consumer segmentation and recommendations for the company that the team studied. Besides that, the limitations that were faced by the team include the problem of accessing websites such as the website that requires payment in order to view. Therefore, the data collected may not be as many as expected. In addition, some of the information may be confidential and it cannot be accessed. Moreover, this report will cover the analysis of the industry, the competitor (SWOT), the micro-environment and macro-environment. The information was gathered through official websites and articles from the internet. The information was gathered by the help of the team members that contribute to this report.

2. Micro-Environment a. Industry Analysis Figure 1 : Tree Diagram of

Computer Hardware Industry Computer Hardware

Supercomputers

Mainframe Computers

Mobile Computer

Tablet PC

Hewlett-Packard

Minicomputers

Microcomputers

Desktop

Laptop

Handheld

ASUS

Apple

Acer

According to The Editors 2012, the industry that laptop in is computer hardware. Computer hardware includes memory and storage, in other words, the device that runs an application software and operating system to which you attach peripherals such as keyboards, mice, printers, etc. Besides that, computer hardware can also be known as central processing units (CPUs). In the data centres of many corporations, the storage devices, the servers and the electronic security were used were also included in the 1

definition. Computer hardware and software working together can amend and exchange data such as from maps to email, etc. However, if both of them are separate from each other, it will be useless. Furthermore, computer hardware is an aggressive business. The competition has becoming intense among the companies. Products from the companies have been commoditize in the outdated market. This is because it is having a constant decreasing price pressure. Meanwhile, the markets for advanced new products are not yet fully commoditized which includes tablet PCs and ultra-minimal desktops. Therefore, in order to become the first to the market, the competition is on to progressing products at an immediate speed. However, if a company hesitates, it has a higher chance that larger companies will be targeting the market to obtain a new business. Despite it is worldwide reach, the industry has definite geographical focus. Stores that were located nearby colleges and universities are often noted as high-tech companies. Many companies did research at such institutions. Companies that reach across national borders are often main companies in computer hardware. Asian countries are hotbeds of hardware manufacturing and designing. This is because a worldwide transaction usually accounts for a large proportion of most hardware companies’ bottom lines.

b. Competitor Analysis (SWOT) The competitors of ASUS are Apple, Acer and Hewlett-Packard (HP). Based on the table given below, the laptops are placed in many different countries and places. Apple’s laptop is the most expensive among all the other brands although the laptops have the same size which is 13-inch. Furthermore, ASUS has the highest memory that is 16GB compared to other brands which has only 8GB. Besides, the battery life of ASUS is the least which can only use up to 9 hours and the most is Hewlett-Packard (HP) which can use up to 14 hours and 15 minutes once the laptop is fully charged. Bhasin (2017) stated that ASUS is known to have a strong brand image and recognition, it may be a strength or a weakness to ASUS. An example of this is, ASUS has been recognised as one of Taiwan’s top performing international brand. Nevertheless, according to Lauren (2017), it can also be a negative attribute towards the brand. It will be attached to the brand such as a recall of product can tarnish a company’s brand and image, causing the company to 2

build a new brand to recapture the market. For Apple, innovative products can also be a strength or weakness. This is because Apple produces hit products such as iPhone, iPads and more. This does increase the sales of Apple. However, consumers may expect products that are greater as year passed. If Apple do not have the ability to do so, it may be a weakness to Apple. As for Acer, cost advantage can also be a strength or weakness. Acer have a lower cost compare to other brands such as Hewlett-Packard (HP). However, when the price of the product is low, the quality of the product may not be as good as others (Bhasin 2017).

i.

Opportunities and Threats According to Bhasin (2017), the opportunities for ASUS is differentiation and marketing. ASUS can take this as an advantage and differentiate its business by offering through marketing and hence increasing customer loyalty and customer satisfaction. To do this, internal customers such as dealer and distributors will be involved and needed to build good relations with them. The threat is competition with other brands. ASUS also faces competition in the smartphone and tablet market with the existing market as well as new local and global markets.

Apple

Acer

Hewlett-Packard

Zenbook

Macbook Pro

Acer Aspire S

HP ENVY 13-

Laptop

13 Laptop

ad112TX Laptop

UX430UA Laptop

Product Place

ASUS



Move



Apple stores

across



Online Apple

various

products both

various

Store and

outlets in

directly and

countries

App store

at least

indirectly. It also

Telecom

one

has exclusive

chain of

companies

hundred

stores and also

stores and

such as

countries

multi-brand store.

dealers in

Verizon,

of the

through its





Has



HP sells its

3

those

Sprint 

places

world

Fulfilment services which third parties sell Apple products online such as eBay, Amazon.com

Price Promotion

RM 5,299 

RM7,574 

Asus

Advertising

RM3,399 

RM 5,499

Advertises 

Launched a

laptops

through

heavily on

branding initiative

were voted

company’s

social

called ‘One

as more

website&

media

Voice’ to better

reliable

Apple Stores

which

integrate its vast

than Apple

or other

displayed

line of computer

and HP

firms

in their

hardware products

Sales

retail

promotion

outlets or

“Trade-in

which offer

showed on

Program”

old models

television

whereby a

of laptop at

channels

customer get a

discounted

or online

free quote on an

prices

portals

old product and





Employs a

trade it in on eligible products. Table 1 : Table for Competitor Analysis c. Analysis of Micro-Environment Players One key players of importance to laptop is motherboard. Motherboard plays a significant role in relation with ASUS. This is because ASUS uses motherboard to manufacturer 4

laptop. Without a motherboard, laptop cannot function well. Therefore, supplier whom supply motherboard plays a key role. ASUS has 40% of market share for motherboard business. In year 2008, 24 million of motherboard were sold. This mean that at average, three computers are using ASUS’s motherboard. According to ASUS (2017), ASUS’s motherboard has been voted as “Best Motherboard Brand” for 6 consecutive years. In year 2009, ASUS’s engineer creates and improves motherboard which is The Ultimate Force (TUF). This motherboard will not be break easily and it has fast cooling process. If the motherboard did not function well, it will affect the laptop’s performance speed. For instance, the user cannot finish their task on time due to the deficient performance of the laptop. Moreover, if the motherboard’s manufacturer cost increases, it will automatically increase the cost of the laptop. Thus, increasing the cost of motherboard will cause the sales of ASUS to drop. This is because consumer’s demand is decreasing. Therefore, ASUS cannot gain profit and will make a lost for it.

3. Macro-Environment a. The Three Macro-Environment Factors i.

Economic Environment According to Pratap (2017), economic factors mostly gives a direct impact on market conditions. The tide can be shifted by even small economic changes; it gives a disadvantage to the company. Factors such as production costs, labour costs will also affect the profitability. In Asian markets, others are trying to be back with attractive products and prices while some brands are experiencing satisfactory growth. Price does influence when it comes to profitability and sales of laptop brands. In addition, by using various deals and discounts is one of the technique that have been used by laptop makers to try to attract their customers.

ii.

Cultural and Social Environment Pratap (2017) mentioned that cultural trends and social brings impact to the popularity of laptop and sales. Peoples’ taste has been shifted towards products that provide a better mobility during the recent years with the rise of social media. 5

Moreover, larger screens that provide connectivity and options to surf the internet was favoured by most of the people. The market can be expected to make a return based on the facts that laptops found higher acceptance with the local culture in India. Asian nations are using laptops to do several types of things including shopping. Therefore, laptops are expected to play a more important role in the coming days based on its potential for productivity.

iii.

Technological Environment Technological changes affect laptops as they are technological products. The increase in the increased popularity of the mobile technology is the biggest technological change that has impacted the market. Besides, the industry is also influenced by the sales of smartphones and tablets that has been increasing. The industry may be killed slowly by the use of mobile technology that has been increasing. Therefore, laptops need to be equipped with more portability and better features to shine again (Pratap 2017).

Trend Economic

Direction

Explanation When income

Strategies Implication  Give cash

environment

decrease

voucher

when

a. Income



Low purchase

purchase

high

power

cost product.

b. Currency

When the country 

Increase the price

currency increase

of the laptop so



People purchase

that people able

laptop

to purchase it

rate

increase Cultural and Social

When people views 

Increase the

environment

of themselves

reputation of

a. People views of



Increase the

ASUS laptop

brand name

name such as “

themselves

No.1 Brand in b. Social

When

the

social 

Malaysia” Provide free 6

responsibility

responsibility

mouse, cooler fan

increase

to consumer when



People

know

that they need

they purchase a laptop

laptop in their work or leisure Technological

time When technological 

Implement

Environment

increase

latest technology



People demand

will for

a 

the

to the laptop New

technology

technological

replace

product and thus

technology

old

sales increase 

ASUS

need

implement

the

latest technology as updated their technology Table 2 : Table for Macro-Environment

4. Consumer Segmentation a. Choice of Segmentation Base Demographic segmentation is a market segmentation whereby it is grouped in terms of age, gender, income, family, education, race and religion. Therefore, Asus laptop is segmented based on demographic segmentation in terms of age. According to Zickuhr (2011), Generation Y which is aged between 18 to 34 years old has the highest percentage of 70% in terms of owing a laptop. Moreover, according to Statista (2017), the age gro...