Our group choose Ipad Mini as the product discussed in the assignment. Ipad Mini is the newly released Ipad of Apple Company which is very special in the Ipad category because it is the first Ipad of only 7.9 inches screen and of the lowest price in Ipad series. Many spectators in the industry regard Ipad Mini as a powerful hit which can greatly expand the potential tablet market (such as female market, lower-ended market) because its lower price and smaller size.
Ipad Mini is picked up as our topic not only because of its unique influence to the small-size tablet market and its strategic significance to Apple Company after the death of Steven Jobs, but also it falls into extended decision making progress, which involves a complete set of decision progress to discuss. Ipad Mini is relatively high in price compared with other small size tablets and it may greatly influence the entertainment aspect of owners’ life style, thus people would experience a complex progress of information searching, selection and evaluation before the purchase. This makes it high purchase involved and high product involved.
1.Define a target for your product. Explain, using relevant theory, the reasons for choosing this target market.
Our group chooses target market to people of the age of 21-45, with incomes of $75k-100k interested in gaming, e-reading and surfing on the Internet. The reason that we choose people aged 25 to 45 years old partly is that this age group fall within the Generation Y (born between 1977-1996), the majority consumers and early adopters on the services relating to the Internet ,and electronic products. Their enthusiasm and affordability on costly, newest high-technique products which other population is less likely to purchase make them a significant purchase power for gadgets like Ipad Mini.
Moreover, this age group covers the households experiencing the young singles, the newly-married, and the full nest 2 family stage, and all these three stages have a comparatively high probability to purchase Ipad Mini. The first two stages pay a lot on entertainment, because their children, the potentially largest financial burden, hasn't been given a birth yet, and their incomes are still increasing. And entertainment is exactly what Ipad Mini is used for. Regarding the full nest 2 family stage, the parents are likely to buy their Generation Z kids ipads if the household is financially abundant. Because of all the above reasons, individuals aged 21-45 is chosen for their probability to purchase the product. In fact, this can be persuasively illustrated by Figure 1.1.(Blog, 2010)
The reason for choosing people with incomes of $75k-100k is that, compared with other ipad categories, Ipad Mini is more attractive to this segmentation. With its lowest price among the ipad categories, Ipad Mini is powerfully attractive to potential consumers who can afford mini rather than other Ipads. As shown in Figure 1.2(Mine, March 7, 2012), other Ipads perform adequately well in the market with income above $100k.So it is Ipad Mini's role to attract the lower ended consumers--the individuals with incomes of $75k-100k.
Furthermore, the perfect combination of good function on entertainment and great convenience to carry it around make it choices for consumers that requires portable gadgets for gaming, movie watching, e-reading and surfing on the Internet.
Figure 1.2 The left graph states the age distribution of customers who uses both Yahoo and Ipad, and the right graph lists the age index of Yahoo users and the U.S. average population. [pic]
*iPad audience is based on mobile phone subscribers that own an iPad or iPad 2, does not include devices used for enterprise purposes, in retail locations, etc.
Figure1.2 Income profile of U.C Ipad and Ipad 2 owners (in thousands) in 2011
Explain what type of decision-makers the target market would be. Justify your answer. The target market of...