Target market - Individual customers, more specifically post-secondary students - Others – the learning disabilities group Sizes of Target Market - Post-secondary students 1  Almost 2M in Canada - Learning disabilities group 2  More than 34M in Canada, and about 1 in 10 Canadians has LD 3  Reading disability (dyslexia) compromises about 80% of LD Target Market and Characteristics 3. Market Profile/Segmentation 4 - Post-secondary students  Age: In 2006, over 1.6 million students were enrolled in colleges and universities in Canada and roughly 400,000 of them graduated in that year. Students ranged in age from 10 to 98 years old, but most did not fall on these extremes. Over 75% of students were between 17 and 27 years of age and over 90% of them were under age 40.  Sex: Minimal differences between males and females in terms of post-secondary studying in their early 20s.  Profession: Some full-time students have part-time jobs, summer/temporary jobs, or contracts. Parttime students usually have a full-time job, or have other commitments during day-time.  Income: low to moderate.  Demographics: o Geographic: All across the country, mostly concentrated in Ontario, Quebec, BC, and AB o Socio-economic: Various ethnic and cultural backgrounds, with a common interest to gain knowledge from post-secondary education. Mostly Canadians (local and across provinces) with an increasing trend of immigrants and international students o Psychographics: busy, fast-paced lifestyle, multi-tasking, low budget on textbooks, lack of motivation to read textbooks o Buying Behavior: Most textbooks are mandatory buy. It is a one-time purchase and students will only buy one copy at a time. Learning disabilities group  Age: Mostly recognized during young age, much higher rate among seniors than among childeren  Sex: Both males and females with a slightly higher percentage for males  Profession: Mostly unemployed, cannot work or minimal work with disability communities support, caregiver needed if disability is severe  Income: low to moderate, with applicable funds from government and health organizations  Demographics: o Geographic: All across the country, mostly concentrated in Nova Scotia, New Brunswick, and Prince Edward Island o Socio-economic: Mostly Canadians (local and across provinces) with an increasing trend of immigrants o Psychographics: difficulties with learning, recognize the importance of education, study aids needed during lecture/classes o Buying Behavior: It is a one-time purchase and students will only buy one copy at a time. Product Benefits  Study whenever you want wherever you want! o Ability to study everywhere, download it onto electronic devices, and able to play it while driving, while waiting, on public transits, between classes, etc. o Since it is not a classroom-based product, it gives you the ability to replay any part that you don’t understand, as many times as you want
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) With the digital revolution trends. fictions. Trends and Growth Potential  Untapped market.Are your pricing. most effective way to learn is not reading. Audio textbooks do not exists in Canada yet o Similar product .gavilan. audio textbooks would help them 7 learn 7 http://hhh. electronic alternatives  September-October and January-February (Semester start) Sales. lighter backpack. What is the growth (historical/potential) of your market?  Growing demand/favor of eBooks. and other reads serving the visually impaired or disability group.  The only online distributor in Canada 6 o “audiocious”  Partner-up with Amazon’s existing audio textbooks platform online to serve the Canadian market  iTunes  University bookstores  The products will be distributed under the company name – AT Inc. service and warranty policies attractive and competitive in the marketplace? .What does each product/service cost you to produce? What does each product/service cost you to sell? 8. interactive eBooks. eReaders. consumers are favoring paper-less alternatives.htm . they will be retailed at bookstores and several online retailers as well. o However there are other alternatives on the market (eBooks. but audio and visual. What will (have) your profits be (been) by product/service?  Varies. the more customer download the product.  Environmental friendly. general/required classes at universities  $20. People learn differently. Are your sales expectation in line with the manufacturing ability to produce it? This all depends upon the firm’s individual capacity to going green  No need to carry books around. the lower the production cost per unit will be . Once they purchased the products they can download the audios onto their personal devices. What are your current sales goals by product/service?  Focus on several popular courses at the beginning phase. products can be distributed with no limit o Depending on sales volume. videos.000 sales volume Market Share. ease out back pain 5. and are using digital devices more often. Product distribution  Products will be distributed using the Internet. etc. once the recording session is complete.audiobooks are getting popular.audiocious. More and more clubs and communities are encouraging people with learning disabilities to go back to school.   Service and Warranty Policies  Sample recordings to minimize chances of wrong purchase 5 6 http://en. Increasing trend of people with LD are going to school. Distribution and Profits by Product/Service 5 6. There are many audiobooks on personal growth.htm http://www.allexperts.  All products require an audio recording. 9.

we will offer a full refund within 30 days of purchase.). Trends and Growth Potential State the percent share of the market you now have or hope to penetrate. Sales.Unrealistic market share projections (believing you can capture 100 percent of the market) . State on what assumptions you base these growth patterns (i. age. changing customer needs. Service and Warranty Policies Describe your service and warranty policies in relation to the industry standard within your market. desires or ability to pay . industry wide. If there is a discrepancy in the product. Discuss the positive and beneficial impacts your product/service has on the market. or changes in the market caused by economic. return privileges and consignment sales. or copied. Include a list of these in a biography in the Appendices. Discuss whether your direct market is increasing or on the decline. Distribution and Profits by Product/Service Discuss your projected sales record by product/service. State what each product/service will be distributed and sold.Not properly assessing the total market potential. costs etc.Basing sales projections on a higher degree of output than you have adequately demonstrated can actually be met . State if the market is seasonal. Discuss how your product/service meets the needs/wants of this market.No accurate estimate of the profitability of each product/service . Every copy of the recording will be encrypted for business protection. Common Mistakes to Avoid: . your total market may be North Dakota. Discuss your track record and philosophy on these issues. Discuss the implications of transportation. who or what.  Audios cannot be returned. Allude to any self performed or professional research. foreign exchange and other government regulations.e. Discuss the “buying” record and habits of your customers. income and other demographic information about the market. Describe any unique programs of features of your policies. Market Share. Discuss any applicable product safety considerations. Discuss your rationale and the costs and risks associated with achieving higher levels of penetration. duties. Describe any unique features of your sales and distribution network. or changes in the market caused by economic. profession. Discuss the reactions of prospective customers towards these policies. social or other trends . Discuss the growth potential of the entire market and your increased share. technology development.Not supporting your target market potential. location/area. Primary Research Target Market and Characteristics Describe your target market. State any collection (billing) procedures and discount offers. social or other trends . studies or surveys conducted. regional and local. State pertinent facts concerning the size.Believing that the size of the market (customer) base is equally distributed (for example. and give a profile.Failure to prove that your target market represents the major portion of the demand for your product/service (80/20 rule . Discuss any policies with distributors in relation to advertising allowances.20 percent of the customers may represent 80 percent of the demand) . but the majority of your sales may come from the eastern part of the state) . tariffs.Pricing not in line with target market needs.Failure to demonstrate a clear understanding of the product/service to be sold and to what market . Discuss how the market may change over the next 3-5 years. transferred. Discuss the trends of the market. the time frames and how you will adjust and compensate during the off-season.

which are around $80-$150 each. would at least break even. and every dollar earned after that will be profit. To be conservative. not segmenting your market into various components and developing profiles of each.Addressing (attacking) your market universally. government regulations. interest rates. etc. defining your market too broadly .000.Presenting your facts to make your market appear subservient to your company’s needs instead of vice versa Most general/introductory classes at the universities are taught at university lecture halls. . which hold hundreds of students at once..Not supporting your target market assumptions in light of advances in technology. population shifts and economic forces (oil prices. assume the production cost of one audio textbook is $5. Prices of audio textbooks will be anywhere around 50%-60% of the hard cover textbooks. AT Inc. If there are 200 students in a class and half of them prefer the audio textbooks over traditional textbooks.) .

) 2. 8 Do you threaten the major strategic objectives or self image of http://www. 7. video. interactive interface. Who are your nearest and largest major competitors?   Amazon has an online audiobook . How does your business compare to your competitors (strengths and weaknesses of each)? Strengths  Paper-less  Mobile and easily accessible  Low cost.MODULE 7 . and digital alternatives are growing in popularity because of the paper-less technology Comparison of Strengths and Weaknesses 3. etc.S. Lowering down the prices for textbooks. market – audible. decreasing? Why?   Traditional textbooks are getting less popular as users are leaning towards using electronic devices and eco-friendly alternatives 8 No direct competition in Canada yet but other substitutes available: traditional paper-copy textbooks. What are the similarities/dissimilarities between your business and your competitor’s business?  Digital/technology based. 6. what kind (who) might you create by being successful in the marketplace?  Business model is easily market penetration rate unknown  Sales volume undetermined  Only one distributor in Canada  No physical product 4. making them more affordable for budget-tight students 8.COMPETITIVE ANALYSIS Competitors Profile 1. eco-friendly On what basis will you compete with them?  Compete based on the uniqueness of product  Slightly cheaper than most alternatives In what aspect(s) is your business better? (What is your distinctive competence)?  40%-50% less than hardcopy textbooks  Minimal internal management required  Products are unique and are instantly available after purchase (instant delivery) How does your product/service compare with the competition in the eyes of customers?   Benefit the LD group as they can absorb information better with the aid of audio textbooks o Increase the number of LD students at post-secondary institutions 5. and other multimedia and gadgets (powerpoint. eBooks. priced at 50%-60% of hardcover textbooks  No inventory  Minimal employees required  Unlimited production Weaknesses  New product. which offers several educational audio textbooks for the U. potential new rivalry arise in the market 9. Is their business steady. eReaders. If you have no competition. increasing.

o Most voice-overs are done by the original author of the textbooks.the competition?  It will decrease their profits to a certain degree but not seriously impact the overall business. transportation. Discuss your niche in relation to these and what percent of the total market it makes up. management. etc. Product/Service Comparison Market Niche and Share The following is a suggested sequence of presentation: Competitors’ Profile Discuss the competition: size. So they will get compensated for every copy of audio textbook sold in the form of royalties. management strengths and weaknesses (experience and track record. Product/Services Comparison Discuss the similarities and differences between your product/service and that of the competition. Discuss those that hold the largest percentages and why they have an edge. Compare your operations and management style with your various competitors. mode of operation and other characteristics. proximity to labour supplies. proximity to a larger market. price advantages. o Every audio textbook production needs to acquire legal rights and copyrights from the publications as well as author of the textbook. sales volume. Market Niche and Share State the approximate percentages each of your competitors holds in the market. raw materials. Highlight whatever it is that makes your product/service and company more attractive in the marketplace. The reader can quickly summarize the characteristics. skills. Discuss potential competitors who may enter your market. market advantages (large contracts with customers or suppliers. Common Mistakes to Avoid: .Underestimating competitive strength and potential . which is similar to the traditional textbooks. Discuss the competitors who have/are coming on strong and are making (or expected to make) bigger gains in the market. The major strengths and weaknesses you should summarize are: product superiority.Failure to demonstrate your competitive edge .Not identifying known major competitors . Comparison of Strengths and Weaknesses Discuss your strengths and weaknesses in relation to your major competitors.Having no strategy for counteracting current competition or emerging competition . land or other resources) and finally. Discuss the particular segments of the market that each of your competitors addresses.what makes you unique or better . as well as the strengths and weaknesses of all participants at a glance.). age. Describe where the market is headed and how each competitor’s niche and share may change over the next 3-5 years.Failure to show an awareness of competitors’ place in the market and their business cycles . It is helpful to list the variables down the left hand column and the competition and your company along the top of the page. location.Assuming you have no competition . energy.

The .MODULE 8 . However audio textbooks 9 products are available for other markets outside of Canada.g. and New Product Development all alternate strategies to market penetration  Igor Ansoff Market Growth grid Existing Market Market Penetration New Product Development New Market Market Development Diversification 2. deriving from existing products (audiobooks). Existing Product New Product  Market penetration: o More purchase and usage from existing customers  encourage repeat sales with sale offers. What is the sale appeal of your product or service?  It is a new idea in Canada. paper-less  It is a homogenous product with a different form. The material and information is the similar and almost identical to a textbook or an eBook. your strategy)  Positioning o Pioneer the untapped niche market. has the audio version of the textbook) 9 http://www. so market acceptance will be higher Market Penetration goals (if this is.S. (e. free account dollars for inviting friends and family)  brand recognition Market development: o New market sectors  Other markets with similar education system and materials  Private universities/colleges. but audio version  It is a specialty product as only specific group of consumers would purchase these goods (e. professors and students enrolling the same courses using these textbooks)  It is a business-to-consumer product How will you attract and maintain your market? Market Development.g. discounts on multiple purchases  setting up a database  mailing customers with relevant offers o Convert non-users  sample chapters  sales promotion (e. How will you identify prospective customers?  Post-secondary students o Tight on budget or prefers learning from audio materials o Enrolled in a general/required course that uses a specific textbook (AT Inc. digital  4Ps: o Price: 40%-50% cheaper than traditional textbooks and 10%-20% cheaper than eBooks o Place: study whenever you want wherever you want! o Promotion: sample recordings of each product o Product: technology-based. in fact. no inventory o Identical products do not exists in Canadian market but the idea of audiobooks are getting popular. and to become the market leader in the audio textbook industry in Canada 3.MARKETING STRATEGY 1.g. Diversification. online universities/colleges  PLC and timeline (what period of time)  Competitive advantage o One time fixed costs.

we will be focusing on the Alberta market for now  Number of students in all universities in AB Pricing and Packaging 8. and is a one-time purchase o End user of the book. Public Relations and Promotions 5. 9. What level of selling effort. What will your pricing strategy be?  We will enter the market with a price skimming strategy o Unique. and can only access the audio textbook for current semester (around 4 months)  Can use the product unlimited times for up to 4 months LD group o Have difficulties learning. advertising can be slowly eliminated How long will the above activities take?  Advertising is a continuous process. and are enrolled in courses we have audio versions of textbooks in o (same above) o Sales and Distribution 4. as well as company websites Advertising. notify them there is a cost-saving alternative  Comparison advertising will be used o Having audio textbooks brochures and pamphlets at bookstores with prices on so consumers can compare the alternatives  Social medias and textbook exchange websites  Word of mouth  Advertising is important at the initial stage of the business. or visually impaired  Most LD students recognize their disabilities and do not pursue further education because of the limited options on the market  Study partner usually needed for post-secondary education o Pursuing post-secondary education. new product in the Canadian market o High initial fixed cost o Discount decisions can be make after breakeven (covering production costs)  Easier with price skimming strategy  Margin is moderately high in this industry o About 50%-60% of retail price is the profit How may pricing change after time?  After covering the production costs 6. How will you reach the decision makers?  Company website o Which will direct consumers to the distributor’s or retailer’s website  Retailers will be both online and offline (bookstores) o Consumer targeting  Students nowadays purchase textbooks from university bookstores. as a start-up. 7. is necessary? Why is this the best approach?  In-class advertising o More direct to the specific markets. once reputation has been built. heavy emphasize during the first two weeks of every semester o Brochures and pamphlets are used year round at the bookstores o Social media and in-class advertising are focused on in the first two weeks of classes What geographic areas will be covered?  All universities across Canada teaching the same course o However. . from online retailers. Usually purchase products online at the beginning of each semester. if any.

State how they are reviewed by management and how they may change or be improved upon as you gain experience.Discussing “marketing” and “sales” in the same terms: (“Sales” is dealing directly . Public Relations and Promotions Describe your advertising. Describe your overall approach and strategy for introducing your product/service and gaining its market familiarity and acceptance. Describe how you will handle customer complaints and other problems with the product/service. or the product/service name may contribute to market identity. Discuss how you will identify prospective customers within each segment. warranty terms and customer orientation of these things. Discuss your attendance at conventions and trade shows within the industry. Discuss the method(s) of sales and distribution in terms of licenses. Discuss how the company’s name. agency contracts. Justify your prices.) Discuss briefly your hiring. Common Mistakes to Avoid: . Describe how the brand name. discounts. discuss their quotas and incentives. credit and payment terms. colours. logo and overall packaging will entice customers to buy. Discuss the mediums you will use and any professional ad agencies you may retain. Describe how your product/service will be distributed and over what geographical area. Discuss how these policies make you competitive and how they may affect profits. Advertising. franchises. training and promotion program. Discuss the directions or instructions that accompany the produce and how you make the product easy to use. PLC and the Consumer Adoption Curve How will your packaging and labeling enhance name identification and foster brand loyalty?  Since there is no physical product. direct sales and other methods. cost of goods. leasing. Discuss the influences of the competition. financing. retailing. how you will prioritize them and how you will reach them. Discuss your packaging and labeling design plans. one-time fee  Online purchasing Service and Warranty Policy 11. Prospective investors will want to see you knocking on doors. brand loyalty is established by customer satisfaction and word of mouth/referrals in this business What will be your credit and collection policies?  It is a one-time purchase. Mention any distribution or licensing agreements that are in force or that you are seeking. Discuss the procedures for implementing these policies. Above all. 10. demonstrate that your pricing decisions are based on your companies’ ability to make a profit. State your timetables for achieving these penetration goals and how your strategy may be affected by the reactions of competitors. The following is a suggested sequence of presentation: Market Penetration Goals Describe your plans for entering the market. public relations and promotional programs and campaigns. Discuss how these will be attracted. Pricing and Packaging Describe your pricing policies and how they are determined. wholesaling. market forces and other factors that will affect pricing. Discuss your selling arrangements in terms of cash sales. particularly if they are substantially above or below the prices of similar products/services in the marketplace. State what your estimated sales and share will be. compensated and controlled. (Remember that sales volume will be directly proportional to the number of effective sales calls made. If you will be employing salesmen. Service and Warranty Policies Describe your service arrangement. Sales and Distribution Discuss any relationships you have with suppliers and/or distributors. Discuss any major customers who have been pre-committed and how they may help you to further penetrate the market. product support. Discuss the sales appeal of your product/service and your priorities for targeting that appeal among specific segments of the market.

(It takes as much as one year for a salesperson to get acquainted with a product and learn a territory.) .Justifying your prices by the cost to produce. whether in-house or factory direct. it is a developed art form. not rational or achievable Underestimating the importance of packaging and brand name identification . market and/or sell your product/service.Attempting to immediately fill several lucrative. (Sales price is a function of value in the eyes of your customers only. “Marketing” is enticing them to consider your product. network can be set up with minimal time and expense. but unrelated market gaps . the learning curve and amount of time to establish is much shorter. .Assuming that your sales efforts.) Start-up ventures should investigate using established agent/representative/distributor networks. if you do use an independent agent or representative .Failure to promote marketable differences in your product over the competition . Too low a price is as detrimental as too high a price.Strategy too broad.Assuming your distribution network will give your product/service equal “sales” time.with your customers.) . it is an acquired discipline.

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