Analysis of the Current Situation at the Market
The first and the most important thing to do when speaking about marketing strategy is to understand what market segments the product should target. In order to be more specific on this point, it is necessary to identify the basis for segmentation and determine the most important features of each segment (Hanlon, 2022). For AAA company, the segments will constitute:
- High-end households and companies presented at the European market.
- The high-end segment targets customers who seek up-to-date technological products (Economic conditions, n.d.);
- Low-end households and companies presented at the European market;
- The low-end segment targets customers who are price motivated and seek proven products.
A good marketing strategy is always based on the clients’ comfort (Mitchell, n.d.).That is why the company should explicitly show the benefits the customers will get from buying its products.
Products for Sale
In order to satisfy the needs of the customers who belong to both segments, the company chose two different products to suggest to them. Each one of them has different characteristics and peculiarities that match the different needs of the clients who belong either to high-end or low-end segments. The first product is Steam with an avant-garde design. Its main advantages are extra memory, security, and long battery life, but the price is 350$, which may prevent the low-end customers from buying it. The second product chosen for sale is Elge with Classic design, and its main features concern the premium camera and premium display, which is important for the customers who are interested in technologies. However, its battery life is slightly lower than in Steam, as well as the price is since it costs 200$.
Forecast, Pricing, Advertisement, Customer Care, and R & D
Comparing the technical characteristics of both devices and their prices, it is possible to conclude that Steam is more expensive due to the options that guarantee the safety of the users’ personal data.
Though both products are equally advertised, Elge is more popular due to its lower prices and features that are understandable for all users despite the levels of their technological competencies.
AAA company suggests several options that prioritize customers’ comfort since each device has six months warranty. The company also spends significant amounts of money on increasing the repair quality.
AAA company sales in Europe target both low- and high-end segments of the market, but high-end companies give more profit to the company. Apart from that, it is clear that a cheaper device with more understandable for the general customers characteristics is more popular than the one that has better technological features and is more beneficial. Thus, the company may need to reorganize the marketing strategy for Steam to explicitly show its benefits and high quality to the customers.
Economic conditions (n.d.). The Marketplace. Web.
Hanlon, A. (2022). The segmentation, targeting, positioning (STP) marketing model. Smart Insights. Web.
Mitchell, W. (n.d.). Marketing strategies for technology companies. Primal Storytelling. Web.