Dexit Analysis
Situation Analysis
Marketing Analysis:
• Dexit’s objective was to launch a wireless payment system as the standard payment method for small dollar amount retail transactions in the Canadian Market.
• Company has strong investment financing behind it in the form of two large Canadian banking firms.
• Fast 3 second transactions via RFID would create simple convenient transactions that could be tracked easily by consumers.
Environment:
• “Big 6” Banks controlled the Canadian industry Current market via issuing Credit and Debit cards and the corresponding retail processing systems.
• Canadian shoppers were routine users of electronic payment methods
• Customers were satisfied with the credit and debit payment methods and viewed them as convenient to use.
• By 2003, Canadian cash purchases projected grow to $270 billion with the average transaction totaling roughly $4.50 each
• Although acceptable in the marketplace, Canadians were not traditionally using debit or credit cards for small purchases, which were viewed as sales requiring cash. KEY
• Over 70,000 of 350,000 Canadian retailers focused on low value transactions.
• 30% percent of debit users were in major metropolitan areas - Vancouver, Montreal and Toronto.
• Avg. value of electronic retail transactions in Canada was far lower than any other developed country.
• RFID had not been widely introduced into the Canadian marketplace at this time.
Organization and Marketing Mix:
Strengths
• Company has strong investment financing behind it in the form of two large Canadian banking firms.
• Dexit has a strong highly experienced management team that is highly knowledgeable in the area of ecommerce and electronic payment systems.
• Electronic payment is already highly acceptable practice by both Canadian retailers and consumers
• Product provides a fast convenient method of payment that rivals cash typically used for small transactions.
• Faster than using a debit/credit card
• No direct
Marketing Analysis:
• Dexit’s objective was to launch a wireless payment system as the standard payment method for small dollar amount retail transactions in the Canadian Market.
• Company has strong investment financing behind it in the form of two large Canadian banking firms.
• Fast 3 second transactions via RFID would create simple convenient transactions that could be tracked easily by consumers.
Environment:
• “Big 6” Banks controlled the Canadian industry Current market via issuing Credit and Debit cards and the corresponding retail processing systems.
• Canadian shoppers were routine users of electronic payment methods
• Customers were satisfied with the credit and debit payment methods and viewed them as convenient to use.
• By 2003, Canadian cash purchases projected grow to $270 billion with the average transaction totaling roughly $4.50 each
• Although acceptable in the marketplace, Canadians were not traditionally using debit or credit cards for small purchases, which were viewed as sales requiring cash. KEY
• Over 70,000 of 350,000 Canadian retailers focused on low value transactions.
• 30% percent of debit users were in major metropolitan areas - Vancouver, Montreal and Toronto.
• Avg. value of electronic retail transactions in Canada was far lower than any other developed country.
• RFID had not been widely introduced into the Canadian marketplace at this time.
Organization and Marketing Mix:
Strengths
• Company has strong investment financing behind it in the form of two large Canadian banking firms.
• Dexit has a strong highly experienced management team that is highly knowledgeable in the area of ecommerce and electronic payment systems.
• Electronic payment is already highly acceptable practice by both Canadian retailers and consumers
• Product provides a fast convenient method of payment that rivals cash typically used for small transactions.
• Faster than using a debit/credit card
• No direct