We have developed a plan to sell the IRiver E100 can be positioned against other mp3 players in the same price range ($90-$130). With our strategy, we hope to separate the E100 from the competition by mostly using benefit driven issues. There are ways to use value driven issues but as a group, we believe the E100 has many popular features that other mp3 players in the same price range have not laid claim on yet. We believe this is very important to our strategy. We also believe that these features will be important to our target. Strategic Issues
Many strategic issues need to be discussed when talking about our strategy. The first issue is that the E100 is roughly the same price as our other competition. When looking at prices for the E100, one can see the 4G from somewhere between $90-$110 which is roughly where are competition is. We notice that the E100 can be found for cheaper prices online. The important point is that the E100 has more features that we think our target market will like. These features will be very important for our strategy because competing brands have no laid any claim to these features. Only a couple competing brands have the features of the E100 but we need to claim them before they do. From our research, we know that Millennials are frequent multitaskers. Our group wants to show Millennials that this mp3 player is perfect for them. With built-in speakers, an FM radio and a voice recorder, the E100 sets itself away from the competition. One can use the voice recorder to record lectures of their favorite professor in class. Another issue is the competitive price of the E100. While researching our competition, we noticed that we are on the relatively low end of prices. One can find the IRiver E100 4G on Google for 87$ on some websites. This is an advantage to us. From our research of Millennials, we know that they have the closest relationship to their parents. Millennials consult their parents on purchases all the time and frequently text and call their parents. From our primary research we found that 66% of the population polled said their parents were one of their top two choices in people’s opinion they value most in purchases. This is much different from any other generation before them. We also noticed from our primary research that 75% of the people polled made under $10,000 a year. One can then believe that because of their low income, many students turn to their parents for help making their financial decisions. We believe that because our target market doesn’t have that much money, they will go for the cheaper product (but of course consult their parents on this buy). But with the E100, you are getting the better product for a cheaper price.
A compelling issue for strategy is also brand awareness. From researching Millennials, we understand that buying a certain brand because it is popular is pretty insignificant in their eyes. They have limited brand loyalty. From our primary research we know that 45% of the polled people said they were not aware of the IRiver brand at all. That might seem alarming but we know that Millennials don’t care about brand that much. We understand the importance of positioning our brand but we also know that we can still sell our product even if Millennials don’t know our name yet. We believe that because our primary research shows that we are a relatively unknown brand right now, we are working with a clean slate. It is our job to transform this clean slate into a positive image that will help sell the E100 mp3 player. The primary research also showed that the brands Creative and Sony were better known to the polled population than IRiver. Once again, positioning and USP seem to be our group’s best approach due the fact that Creative and Sony don’t have as unique features as the E100 does. Another interesting issue with the E100 is its capability to use flash memory as well as upload many different music and video formats. This is an important factor when trying to sell to the Millennials. We know from our research that Millennials are an internettech savvy generation who spend hours online. Once again, it seems to be a benefit driven issue. Other mp3 players cannot upload certain types of media files and do not have a memory expansion (flash). This is another aspect that separates the IRiver E100 from the competition. We believe the expansion capabilities of the E100 will appeal to our target market. Our internet-loving target market will hopefully want to buy an mp3 player that can hold more music and videos because of the flash drive. Our last issue that we find to be rather important is that after looking through our primary research is that 100% of the polled group said they are looking to buy another mp3 player soon. We can infer that that means they are not satisfied with their current mp3 player. This is a positive for us and we want IRiver E100 to be the next mp3 player they buy. We want our target to buy an E100 and not look for another mp3 player in six months.
Our group believes that the best issue in discussion has been the features on the E100. Competing brands like Sandisk, Creative and some Sony products share similar features that the E100 has. They still have no laid claim to these features though and we believe we can do that. It is a benefit driven strategy we can use because of the nature of our target. As discussed earlier, the Millennials are known as frequent multitaskers who are always doing a lot of things at once. Because of the E100’s many features, we think our target market will want to buy a mp3 player that has other features they can use during the day. This is just who we want to buy the E100. We believe the IRiver E100 is perfect for the college aged Millennial looking for an mp3 player. We hope that these multitaskers buy the E100 to use its multiple features and remember that IRiver is the company known for them. This will in turn, help the positioning of IRiver. A Millennial
student can get up the morning and throw a bunch of music and video files (regardless of format) onto his E100 in the morning before class. He or she then grabs their backpack and goes to class. He or she listens to the radio on their E100 to listen to the latest weather reports to see whether it’s snowing or not. After hearing that, they put on their favorite band and rock out as they are walking to class. But they have a long lecture today in class so they use their E100 to record the lecture so they can listen to it later. After class they walk home and immediately put their E100 on the kitchen counter (without having to plug anything in) and turn the speaker on so they can hear music as clean up around the house. The student can use all of these features and do all of this for a very affordable price. As one can see, the amount of useful features for today’s multitasker that the E100 has is amazing and we believe that using this approach will work as a strategy. Strategic Statement Our strategy is to show that you don’t have to pay big bucks for an mp3 player with many useful new features, think of IRiver when you see these features. What we will say is to emphasize that there are other options for mp3 players (other then Creative, Sony, etc) out there and the IRiver E100 is affordable yet has features you are looking for. How we will show you this is by showing these benefits through our advertising. We will have people representing our target market using these new features throughout different times showing the consumer that they are features that one can use daily. We will also show that the competition lacks these tools on their mp3 players.