Marketing Analysis and Strategy
CanGo Marketing Analysis and Strategy
The General Environment
Currently the inflation rate is stable at three percent or less per year, and the consumer price index is steady with approximately 1.5-2 percent change per year. A stable economy without significant inflation will likely maintain the strong spending power of the consumer. The consumer’s dollar will be stretched further allowing them to purchase more goods. Low inflation rates will also persuade the Federal Reserve Board to keep rates low allowing free economic growth as rates increase.
Copyright law infringement and lawsuits are on the rise for online providers, particularly those relating to music and print. CanGo has a product line heavily weighted with music and print materials, therefore CanGo will have to be particularly careful to keep current on copyright law changes. CanGo will need to ensure the material is being properly licensed and protected from being illegally copied. Some of CanGo’s major competitors include Amazon, CDNow, GameTap and eBooks. Generation Xers are CanGo’s primary customers. However, CanGo is also seeing some crossover from the Generation Y and Baby Boomer groups as well. The VALS (values and lifestyles) report provides a way of viewing people based on attitudes, needs, wants, beliefs and demographics. The average CanGo customer is an experiencer with secondary characteristics of achievers. According to the VALS report, experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, experiencers can be extremely eager about new possibilities but are equally as quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. They find an outlet for their energy in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that
The General Environment
Currently the inflation rate is stable at three percent or less per year, and the consumer price index is steady with approximately 1.5-2 percent change per year. A stable economy without significant inflation will likely maintain the strong spending power of the consumer. The consumer’s dollar will be stretched further allowing them to purchase more goods. Low inflation rates will also persuade the Federal Reserve Board to keep rates low allowing free economic growth as rates increase.
Copyright law infringement and lawsuits are on the rise for online providers, particularly those relating to music and print. CanGo has a product line heavily weighted with music and print materials, therefore CanGo will have to be particularly careful to keep current on copyright law changes. CanGo will need to ensure the material is being properly licensed and protected from being illegally copied. Some of CanGo’s major competitors include Amazon, CDNow, GameTap and eBooks. Generation Xers are CanGo’s primary customers. However, CanGo is also seeing some crossover from the Generation Y and Baby Boomer groups as well. The VALS (values and lifestyles) report provides a way of viewing people based on attitudes, needs, wants, beliefs and demographics. The average CanGo customer is an experiencer with secondary characteristics of achievers. According to the VALS report, experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, experiencers can be extremely eager about new possibilities but are equally as quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. They find an outlet for their energy in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that
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