The following essay is a situation analysis of the macro-environment for a Melbourne based Australian phone cover manufacturing organisation, called Kind.
Kind creates a range of covers for all types of mobile phones which are recyclable, biodegradable and trendy. Kind conducts their own research, development, design and manufacture. The organisation was founded by a group of generation Y, tech savvy and environmentally conscious people who saw an opportunity to create accessories in an industry considered to be consumerist. A view supported by Downie and Glazebrook (2007), “Mobile phones have been described as the ultimate example of consumerism.”(p. 1).
Kind’s idea for their latest range of covers specifically include hypo colour, (cover changes colour when activated by heating or cooling through personal touch), mood sensitive covers (cover changes colour relative to the emotion being felt by the person), and gel moulded covers with finger grips. They believe their value proposition is to provide a range of products that offer their customers socially responsible fun, feelings and functionality by being a customer-centred company.
The following discussion under the sub-headings will analyse the six components of the mobile phone industry macro-environment specifically identifying trends that may impact Kind’s target market, marketing-mix and planned marketing strategies.
“The demographic environment shows a changing age structure in the population, changing family patterns, geographic population shifts, a better-educated and more-white-collar population, and increasing ethnic diversity.”, (Kotler, Brown, Adam, Burton & Armstrong, 2010, p. 160).
This holds true for Kind’s market in Australia with the population ageing, birth rates falling and increased life expectancy, older people are predicted to outnumber younger people by 2050. This may pose a potential threat to Kind’s target market in that there will be greater competition for customers entering the market or more creativity required to find new markets. Kind may need to expand their product range to cater for the older generations with covers that address issues like restricted mobility and loss of coordination from conditions such as arthritis. Reinforced by Kotler, et al., (2010) “The Boomer market will only grow in importance in coming years, as more boomer reach retirement age.” (p. 145). This is a trend that Kind should keep a close eye on and begin research and development in.
Looking at Australia’s current family pattern Kotler, et al., (2010), states “smaller family sizes resulting from a desire to improve personal living standards, the increased number of women working outside the home”, (p. 141), supports the view that there is market for the mobile phone industry because the parents feel there is a security need to stay connected to their children. “For children aged 5-8 years, almost all of them (95%) used their mobile phone more to contact family" (Australian Bureau of Statistics, 2010). This new group is otherwise referred to as “’tweens’ aged between six and 13.” (Downie & Glazebrook, 2007, p. 1). It must be noted that Kotler, et al., (2010) defines the tweens as aged between 10 and 14, regardless, this group is increasing in market share and are demonstrating a trend towards strong purchases of entertainment products. Added pressure is placed on parents by the tweens who have grown up accustom to consumerism and “are motivated by status and aesthetics in their purchasing decision.” (Downie & Glazebrook, 2007, p. 1). This trend may be met by the inter-changeability of mobile phone covers because they are an economical means of maintaining the tweens attention and status with their existing phones. An economical argument for parents to easily identify with and one which Kind can target.
Kind has a product that appeals to a variety of demographic group for varying reasons. The youth group, often further...