Part One: Introduction
Sonic is about to enter a mature and highly competitive PDA market. Founded eighteen months ago, the company was birthed by two entrepreneurs highly skilled and knowledgeable in telecommunications. They are preparing to present their first product, Sonic 1000 PDA. The Sonic 1000 offers wireless networking, digital technology, dual phone use, 20 gigabytes of memory, four megapixel camera, and voice recognition hands free operation (Kotler & Keller, 2009, p. A5). A marketing consultant group has been secured by Sonic to analyze its current marketing plan. In this paper, the task of marketing this product effectively will be analyzed by segmenting what markets are open to Sonic’s brand awareness, targeting the markets for product consumption and repositioning Sonic’s marketing strategy for meeting consumer and marketing goals.
According to the Nielson 2010 Media Industry Facts, “223 million people in the United States are cell phone users, with 16.7 million being web users and 18% being smartphone consumers respectively” (Tippin, 2010). Global cell phone users have increased with the highest being in the Asia-Pacific region over the past decade. Those companies dominating the market in cell and smartphone use are in orientation of greatest to least: Nokia, Samsung, LG, Motorola, and Sony Ericson (Tippin, 2010). The Sonic 1000, desires to reach the status of these cell and smartphone brands listed above. However, new research associated with these phone brands shows greatest competition with the Android phones, Blackberry’s, and iPhones. These phone types have been able to appeal to the markets of young business professionals, medical consumers, college, and high school students due to its various applications, social networking abilities, internet, and Wi-Fi capabilities. One other advantage suggests the connection of the iPhone, Blackberry, and Android phones with top companies such as AT&T and Verizon. These facts cause greater pursuit of the Sonic 1000 to penetrate the mature market of PDA/cell phones by pairing of the product with an existing company to cause consumer brand awareness. By pairing with an existing company, such as Verizon, to cause consumer brand awareness, brand equity and loyalty can be established. This will cause further penetration into the target markets: business professionals, medical professionals, everyday working parent, high school, and college students.
The establishment of the Sonic name within its target markets yields further positioning amongst the competing companies. Although the Sonic 1000 was designed for the middle-upper class professional and the latter project, Sonic 2000, tailored to the teen- twenty something age group, the Sonic 1000 should possess capabilities tailored to both age genres to penetrate the market aggressively (Kotler & Keller, 2009, p. A6). Due to established companies already reaching the target markets, Sonic must exemplify points of difference and parity amongst its competition in the eyes of its consumers. For example, if Sonic partners with Verizon for brand name establishment, Sonic 1000 PDA could compare its’ capabilities to the droid phone and iPhone; yet show difference in cost and function synonymous to the classic PDA.
The Sonic 1000 PDA would not only require product comparison versus distinction but strategic marketing presence. Sonic positions their PDA 1000 as a “hands free operation of multiple communication, entertainment, and information capabilities differentiating it from competing products” (Kotler & Keller, 2009). This point of difference would have to propel the Sonic brand into the mature market and present an “edge” against its competitors. The marketing communications strategy of research consumption patterns will deliver advertisements on a pulsing basis for brand awareness, along with user friendly videos which will assist in...