This marketing survey aims to build up a fresh product in Hong Kong. With this report, I will encourage Polaroid Company to develop an instantaneous camera with instant film calls Video Picture Instant Series (VP1 Series), a camera which can take five to ten secs training video and show it into the film instantly. The reason why of choosing the Polaroid Company (Polaroid) to develop the product because Polaroid is one of the leading instant imaging companies on the planet. Ideally, to incorporate the video recording and the film is for an individual which can completely get up the moment and show to others immediately. Besides, employing this instant camera can make the Polaroid style (the image might be yellowish, greenish or black angular circumstance) in the training video, and let the film becomes an art work, thus enhance the culture degree of fine art to the resident. VP1 Series which is a new generation product may help Polaroid to stick out from its main rival, Fujifilm.
In the report, I'll first identify the marketplace segment and target customer for the new product. Then I will rationally explain the potential for produce the new product by evaluation the company environment and the marketplace environment, and make a final result showing the talents, weaknesses, opportunities, and threats (SWOT) of the new product. From then on, I will express the new product design at length and lastly, apply the Marketing Mixture Strategies to achieve the target successfully.
In the 90's before in Hong Kong, people consider Polaroid as one of the most trustworthy, wellreputed and known brands when it comes to instant picture taking. As the Polaroid SX-70 came out in the 70's movie "Love Letter", Polaroid becomes a famous icon in the craze. Besides, some company would customized the limited edition Polaroid to their customers or business companions, which seems as position identification.
However, because of the technology had swiftly advanced. Camera had substituted the position of instant camera. Customers thought that camera is inexpensive as they can retake the photo unrestricted times, the image can easy to store whether in the computer or memory stick. In addition, computer software such as photoshop, photoimpact, etc. can help for corrects the image to become perfect. Integrated with training video function is also a gimmick for sell, and the selling price is declined speedily as new model made an appearance quickly. There is absolutely no doubt that digital camera possessed becomes popular as people are easy to afford to buy one, and that also draw out the great mass fervor for image taking.
After a earlier couple of years, people aware that the photography is too perfect but lost the truth, they are willing to back again to the "honest world", they feel that the un-perfect can reality to indicate the "truth" in the moment. Besides, people treat a picture not limited to record the moment, but also a fine art, and a famous Japanese photographer, Yasumasa Yonehara, got make use of the instant camera for taking the image and printout the photography on the T-shirt, which is popular for the teenagers to buy. As a reason above, the tendency of camera type acquired back again from the camera which is using film, thus instant camera, and it is potential to permeate the instant camera to bring a new principle and experience to the customers.
The principle idea of the VP1 instant camera is based on the model of exiting product, with enhance the technology to track record the training video and show it on the VP1 instant film, which maintain its core benefit, individual can instant to share the moment. It is potentially for those gender and age group, especially the teens and the artist. There isn't much competition with the prevailing instant camera as they didn't hold the video record function. Although function of VP1 Series is comparable with the digital camera, but digital one cannot create the special consistency and the initial design of Polaroid in the training video. Therefore, VP1 Series is a unique product in the market, and it is a chance for Polaroid to be always a first-mover to take the advantage on the market.
Consumer Market segment
The target in segmentation strategies is to target several customers who show a similar set of needs and wants. For the VP1 Series in Hong Kong market, portion marketing is discovered (Kotler, P. & Keller, K. L. , 2009).
The market of VP1 Series will divided for man users and women users, this group will establish as 18 to 30, 30 to 45, and 46 to 60. Plus the income level will establish as less than $5000, $5001 to $15000, $15001 to $30000, plus more than $30000 monthly.
Customers will be divided by their occasions in the VP1 Series market. Is retail customers who will be the small size electric retailer outlets which buy for selling to others and an example may be the end-user customers.
Polaroid should use the undifferentiated marketing strategy. For the reason that VP1 Series is possibly for all those gender and generation, and the power for the customers is majority for fun, therefore, undifferentiated marketing strategy can target the whole market with one offer (Kotler, P. & 2001).
Internal Environment Analysis
To analysis the business environment of Polaroid, its brand, products, and opponents will be focused on.
The Polaroid brand has been around for more than 70 years starting with polarized sunglasses, which in turn improved into instant film, cams and camera accessories and became a symbolizes of instant camera. It appears a bit outdated, but it's a brand like Coca-Cola and the pure cool-factor will hopefully keep Polaroid around for some time (Polaroid, 2010).
Polaroid's most important products are instant film and video cameras, digital camera models, digital peripherals, secure id systems, software and system alternatives. Polaroid also performs certain non-core businesses such as images, glasses, and polarizer and holography. In Hong Kong market, Polaroid is concentrate on its central products, instant camera and film, both of them are in the decline status in product life pattern. As the camera appeared, the moment camera had been covered, Polaroid instant camera became unpopular and for that reason in 2006, Polaroid stop produce the moment camera. In 2008, the instant film acquired also stop produce as the effect of poor selling performance (Polaroid, 2010).
As the market tendency of camera is considered digital cameras, Polaroid got put the source to invest an electronic camera using their core profit for the consumers, instant. And therefore, model Polaroid Two, a instant camera was born.
There is only one direct competition for Polaroid in the Hong Kong market, which is Fujifilm. The primary products of Fujifilm are color videos and digital cameras. As the Polaroid style photo is popular in Hong Kong and it can only made by the instant film, Fujifilm got produced the moment camera and film, which is their first step to become listed on in the instant camera market in Hong Kong (Fujifilm Hong Kong, 2010).
The indirect rivals should be Holga and Lecia. They are the film camera which can also make a special result, LOMO style, in the image. Although they aren't the instant camera, they can also give the special experience with their user.
However, there have several potential rivals which are Cannon, Nikon and Lumix. Although these brands did not produce the moment camera, they are both have many experience and technology in produce the camera and they're both "playing" in Hong Kong camera market very long time ago, thus build a brand devotion to the clients. Therefore, if Polaroid produces the VP1 Series, these brands can easy to imitate the unique function of VP1 Series and against Polaroid on the market.
External Environment Analysis
To research the external environment of Polaroid, thus the marketplace environment, PEST is implemented.
Hong Kong Government setup the cultural insurance policy is designed to create a host which is conductive to liberty of expression and artistic creation, and encourage more community to join in the social activities (Home Affairs Bureau, 2008). Besides, Hong Kong Art work Development Council, a legal institution indicated by Hong Kong Federal government, to invest in, plan plan, advocacy and campaign, develop and plan activities, which create the chance for community to gain access to the art work, and create an over-all ambiance to encourage community to develop their brain of fine art (Hong Kong Arts Development Council, 2010).
According to the site of Hong Kong Trade Development Council an article compiled by I Lover, I. & Yim, J. , 2010, both are Chief Economists of Heng Seng Loan provider, expected that the economics of Hong Kong is recover from the Financial Tsunami and back to the expansion period. Besides, the site of Hong Kong Market, 2010, implies that in '09 2009 to 2010, the private ingestion expenditure is growing, meaning consumers are now confidence on use. Besides, composite consumer price index demonstrates the merchandise price is in average and the retail sales is in the high position in past ten years, which means that consumers is fulfill on product price and its own shows that the merchandise price is still low in consumers' brain.
Social Cultural Environment
The word "Collective memory space" has always around us in recent years. Collective memory means that areas have the common memory, feeling and tale in the same places or period. In Hong Kong, like the Queen's Pier, Lai Chi Kok Zoo, Tsim Sha Tsui Clock Tower; painters such as Lydai Shum Din Ha, Spemcer Lam Sheung Yee, Bruce Lee Jun Admirer, even the Polaroid, a tendency of Hong Kong in 90's.
In a time of continuous immediate technological changes, something we imagined before could be noticed nowadays. Among the important technologies is nanotechnology, it can create a whole lot of revolution electronic products, produces, and applications, such as Nokia had used this technology to set-up Nokia Morph, which is a concept mobile phone can change its shape variety, show the image and video, and even impose the battery by used solar (Nokia, 2010). Besides, as the Web-based technology acquired a sharply employed in recent years, information are easy to gather nowadays. Companies are actually put their product information on their home website and through the social network such as Facebook, Msn, Twitter, etc. to promotion their product thus achieve their online marketing strategy.
After the surroundings evaluation in both inside and exterior of Polaroid in Hong Kong market, SWOT analysis will be used for determine that the strengths, weakness, opportunities and dangers of Polaroid.
Strong brand name would be one of the strength of Polaroid. When people speak about instant camera they might first think that it is Polaroid camera, therefore it is a symbol of instant camera and folks will choose their instant product priority. Besides, Polaroid has many experience on produce instant products, therefore it has a strong technology track record on create a new model of instant products.
Polaroid has an unhealthy selling performance on the instant products as a result of camera, there may impact their financial performance and therefore affect their technology. Besides, easy to imitate by the competition is also a problem for Polaroid as the rivals also have an even of solutions on produce the camera.
Economic environment shows that people are willing to consume recently, release the new product can reduce the risk of selling performance as people are prepared to try new things in this moment. Besides, as new technology such as nanotechnology becomes maturely. It really is a edge for companies to innovate the services.
There is only one risk of Polaroid which will there be are way too many rivals in Hong Kong's camera market. Unless Polaroid can be the first mover to make a technology product like the camera, to let the customer omit their digital camera and buy the new product released by Polaroid, otherwise Polaroid still needs to face the fantastic competition in this market.
VP1 Series is the first instant camera on the globe which can accumulate the video tutorial and show the video in its special own instant film. The principle of take the video tutorial into the instant film is firstly use the VP1 instant camera to collect the image, movements and light conception, as the within design of the camera is same as the original Polaroid instant camera so that the video can provides the unique sense and style of Polaroid. From then on, many of information will copy as rules, and sent to the instant film through infrared ray. The moment film consists of an IC in it to store the video recording. Besides, it is manufactured by nano so the film can treat as a display to show the video. Furthermore, the Polaroid ink will still inside in the film like the original design, when the film is moving right out of the camera the ink will permeate and mix with the nano to let the film becomes yellowish or greenish. Additionally, the nano can also use for have the solar and copy it to be the energy for productive the video tutorial, therefore, the video tutorial can keep till the finish of the world (Introduction to Nanotechnology, 2010).
However, VP1 instant camera experienced also support consumer to use the normal instant film which got already existing on the market. VP1 instant camera will automatically change the function to only may take the photo as it can detect the IC from the VP1 instant film.
VP1 instant camera provides seven colors on the market, as the merchandise aims to well suited for everyone, however, differing people will have different needs and needs, therefore, VP1 instant camera provide different color on the market can solve this issue and capture up the largest share on the market.
VP1 instant camera is a hi-tech product therefore its conformation is very specific, so that the bundle should highly focus on safe. Cardboard is utilized to fix up a camera, and let the camera can firm in the container. Besides, the material of the container is also used the cardboard as it could recycle and decrease the pollution. The print on the container should be show the big size custom logo of Polaroid as the brand is an advantage for sell. Besides, the pack should print out the colour of camera it involved and the design should be fashion, expressing that it is like an fine art, finally, model name VP1 instant camera will also printing from the container.
The offer of VP1 instant film will simple than the VP1 instant camera. Cardboard package will still use for deal ten instant films with moisture-proof, to extent the valid period. The print out of the pack will also big size logo of Polaroid with its model, VP1 instant film, the colour of the container will be utilized the original film bundle color blue.
The last type of bundle is put all the VP1 products with the own bundle into same cardboard field, the printing will used the color of camera it involved and design should be fashion, with the top size logo design of Polaroid and its model name, VP1 series.
For the brand strategy, brand extensions will be used, and which means VP1 will top quality under Polaroid. For the reason that its brand name has a dominant position of instant camera in the customers mind, so that it is straightforward for customers to identify and memorize its product's quality and profit, thus happy to buy VP1. VP1 Series and its own instant camera's customers will enjoy first 2 yrs of free maintenance as it can be an after sell service. After 2 yrs, customers can alternative to choose whether buys the degree service period for just two years with price three hundred us dollars, the service include maintenance and extra parts support, whether credited to customer choices.
Pricing strategies usually change as the product moves through its life routine. The introductory stage is especially challenging. In face the challenge of setting prices for the first time, we choose Market-Skimming Prices, which means the purchase price for VP1 will placing high to skim maximum earnings layer by level from the segments prepared to pay the high price, and therefore the company makes fewer but more profitable sales.
By using product-mix charges strategy, captive-product prices strategy will be utilized for the one buy of VP1 instant camera and film. As using Market-Skimming Pricing, the moment camera will price $2000 and the instant film will price $150, both are expensive than the standard ones. However, if the customers are buying VP1 Series, then the price will be $2100, as using product bundle costs strategy, to appeal to customers to my the series one.
Polaroid will using discount and allowance charges strategy adjust their basic price to compensate customers for several response. For the retail customers, 10 days early repayment of bills and volume buys of 5000 product will get 20% discount. For end-user customers, off-season buying and some festival will get 10% to 15% discount.
There are two degrees of consumer marketing route. First level is Polaroid straight sales the VP1's product to the end-user customers. Polaroid will rent the counters in string electronic dealer store such as Broadway, Fortress, and Citicall, and sell them suffuse in Hong Kong 18 districts. Second level is Polaroid provides the VP1's product to the retail customers, and the retail customers sell the merchandise to their own retailer shops to the end-users customers.
According to Advertising Mix Strategies, press strategy will be suitable for Polaroid to market VP1's product. For the reason that VP1's product is not hard to imitate, therefore, hurry release is ideal for Polaroid. However, move strategy needs to wait the clients to consider order, and it will slow down the swiftness for release the merchandise.
Besides, we use some campaign tool to help us to create our product to the customer.
The common use of campaign is advertising; there have much kind of media for all of us to place our ad in it, including the TV channel, mag, and the Web, etc. Through the use of TV channel. We are not only use the overall merchandising for promote our products, example, personal selling, sales campaign etc. Furthermore, we will cooperate with television station, to market our products on information programs.
We have to choose the types of publications publisher carefully, before advertise our product in those mags. We would like to provide the consumers an impression our products are high technology and fashion. Hence, we recommend publishing the advertisements on some computer journals and the teens' newspapers.
Web is an inexpensive ad, but if we use it effectively, it still will have a great effect. Place an electric banner in the famous Web site such as Yahoo!, Msn, Yahoo, etc. which can get more folks to pay attention, become want to know more our product's preference, thereby improve the sales level.
From the literature reviews, I've learnt about the task of how to develop a new product on the market, thus trained my creative capacity. Besides, this assignment had reminded me many understanding of Marketing, such as Segmentation and Marketing Mix Strategies, although I have learnt them before, less use will easy to neglect.
Moreover, I have known about the Polaroid Company, although I've tried to find its information before when i am interest on instant camera, I am boarder my known because of this company after finish this assignment, and I've also learned for manipulate the instant film, which is the excess knowledge I received following this assignment.
This assignment let me regain the interest of Marketing and therefore I am now keen on do some improvement on me to increase my knowledge on the Marketing field. First of all, I will reading more catalogs to boarder my strategy of marketing, because I believe this step is the base of learning the Marketing field, after carry out this step I could easy to understand people who write in the marketing journal and article. Then, it is necessary for me to read newspapers every day and purchase some business publication to read every week, this action can i want to know more about the several company, thus help me easy to finish the marketing work in the foreseeable future.