Identifying Market Segments and Targets
Question 1
Another variable that should be used by Sonic Company includes the psychographics and lifestyles. This approach involves focusing on the shared activities, behavior, and interests of the consumers. Additionally, shared values, mindsets, and point of views among consumers could be other important points of focus. Sonic should focus on consumers who value technology and like going with the new trends. Additionally, consumers who enjoy activities such as hiking and travelling across the world are better for the use of smartphones for pictures and videos as part of memory keeping.
Another important variable to be used by Sonic when segmenting consumers and target markets is the geographic one. It involves focusing on the size of the population, climatic factors and locations. In the case of Sonic, it should focus on consumers in urban areas as they are largely associated with the use of smartphones compared to those in rural areas.
Question 2
After identifying various segments to be targeted by Sonic, it is important to evaluate its attractiveness. The sonic company can accomplish this so as to determine the segments that are more viable and worth pursuing. First, the segment should be identifiable. The company should be able to determine who is in the market in order to design products that satisfy their needs. It is also important for the company to make sure that segments are different from each other based on their needs. Secondly, the segments should be reachable. The best product offered by Sonic cannot have an impact on the consumers if the market is not easy to access through different forms of communications and product distribution channel.
The consumers in each of the segments should be able to get the marketing messages established by the sonic company in order to recognize the existence of the product and comprehend why they need it. Finally, the segments should be profitable and substantial. This means that Sonic should be able to measure the size of the segment and its possibility for growth. If the market is very small it will be unable to create enough profits. Sonic should target more than one segment and markets. This will help increase the size of potential consumers, which, in turn will help increase the amount of revenue. Additionally, this focus will help increase the market share of the company and hence increased competitive advantage.
Question 3
Sonic should focus on product specialization. This strategy entails targeting specific consumer segments within the market. The company will be able to focus on high-quality products and be able to design it in the ways that meet the specific needs of different segments of consumers within the market. This strategy will allow Sonic to concentrate on its brand and image.
Chapter 10: Crafting the Brand Positioning
Question 1
Brand positioning includes the platform in which Sonic wants its new product to be present in the minds of the consumers. The brand positioning strategy selected by Sonic for its new product will help increase the relevancy of the customers and its uniqueness among the competitors. The brand positioning strategy that will be used by Sonic includes quality positioning. This strategy will help Sonic to focus on the quality of the new product. Additionally, focusing on the quality of the product can be mixed with other strategies in order to differentiate itself from other competitors.
Question 2
High price
iPhone X
Low-quality High quality
Sonic 1000
Low price
Sonic 1000 has opportunity to grab the market segment involving middle and low-class individuals as they are able to afford the low price and high-quality product compared to the high-quality and high-price iPhone X
Question 3
To create an emotional brand to attain differentiation, Sonic needs to capture data about its consumers that can help in unlocking their emotions and building a brand that will get their attention. Sonic can use short surveys that have increased the rate of response from the customers. Additionally, the company can use brand equity which involves the extent to which their point of views on the brand affects their commercial value. Sonic should be able to capture the attention of the consumers through the product while encouraging purchases. Additionally, sonic should strive to develop a relationship with the consumers so as to develop loyalty. This will be easy for the company to design a product that will be part of the consumers’ lives.
Chapter 11: Creating Brand Equity
Question 1
Building a strong brand is a key to success for Sonic and its new product. Brand differentiation will help set the company different from its competitors. Key branding elements that can help Sonic in differentiation from its competitors include brand name, symbols, and logos as well as packaging. The brand name is the foundation from which the company is able to build equity. The name is very important and it’s the main sign of the brand. Additionally, the name is the main source of communication and awareness to the consumers. Therefore, the name of the brand tends to bring natural strength to it. The brand name can be used by the company to apply symbolism so as to influence the perception of consumers of the Sonic 1000 product. The brand name of Sonic is a psychological property given to the consumers. Therefore, it is important for the company to come up with a unique name that will differentiate the company from others.
Logos and symbols are visual elements of the brand. These elements play significant role in establishing and keeping a presence of the product in the market. Using logos and symbols, the company will be able to build a highly recognizable and memorable product that will trigger the consumers to create a relationship with the brand. Symbols are usually equated with the products they represent. It is therefore important to design unique logos and symbols to increase differentiation.
Packaging is another vital element of the brand that is usually related to the designing of wrappers for the product. The container or box in which the product will be wrapped in will involves the design, color, labeling, and shape. It is important to choose these aspects carefully. This is because they help in passing a colorful message to the customers at the points of purchase. The packaging of a product helps in communicating the brand as well as product recognition and its use. Therefore, the packaging of the product should be unique and related to communication the rational and emotional functions of the item.
Question 2
A brand promise made by Sonic is a hope for a better future. Additionally, it creates anticipation that the product will make things better in the future than they are today. Therefore, it is important for Sonic to make sure that the ideas in the promise are realistic and makes sense to the target consumers. Additionally, Sonic should take a step to measure its results against the promises so as to identify whether it’s being fulfilled or not.
Question 3
Sonic should retain its name. This is important because it will help keep already existing loyal customers. Changing the brand name will create confusion among existing customers of the company which may lead to losing a large pool of loyal consumers. However, the company should make an effort to make appealing improvements to its branding.
Chapter 12: Addressing Competition and Driving Growth
Question 1
Sonic can take part in designing other new products different from the Smartphone line. The first idea includes the laptops. Since the company has an already established brand, it is easier to include another new product in its line. Laptops are in increasing demand just as the smartphones because they have increased storage capacity as well as helps students and employees in handling different projects. Another new product that can apply to Sonic is women accessories. The company can establish a completely different design line associated with the brand in women clothing, makeup, and other products. Finally, the company can also start a software development line where it can form partnerships with different software design companies. A number of criteria should be used by Sonic when screening these ideas. They include the consumer size, interests, and preferences. Additionally, Sonic should evaluate the existing competitors in the market and the kind of products they offer.
Question 2
The idea of Sonic laptops is the most promising. The laptops could be developed in medium size different unique colors that are unavailable in the market in order to differentiate it from other competitors. Sonic laptops should be linked to the Smartphones so as to give the customers who have access to Sonic computers an easy option. Additionally, the laptops should be flexible and unique in design with unique software.
Question 3
Sonic laptops will be introduced into the market through low price strategy in order to penetrate into the existing and new markets. The target market will include young adults and youth both male and female between the ages of 18 to 40. This includes individuals who are employed as well as those still in colleges. The product will be able to gain a larger market share for the first year because of good quality and fair prices. The unique features of the product will help gain a large number of consumers. The product will be advertised through different social media platforms, posters, and mass media including television.
