Is it feasible for Philips to launch a games console Essay Example

people who are influenced by different types of promotion when buying a games console or PC. Please tick three boxes.

According to the data, TV is the most effective form of promotion, closely followed by in-store demonstrations and magazines. This highlights TV's ability to reach a larger audience and promote products efficiently. Communication and raising awareness are key components of promotion. To achieve this, Philips should prioritize advertising in their budget.

To succeed, using the most appropriate channels of promotion such as TV is crucial, despite the high competition in the market. Philips may encounter difficulties in attracting consumers. According to the bar chart, above the line selling is the most effective promotion method, involving radio, cinema and TV. However, magazines and recommendations from friends highly influence console purchases. Therefore, Philips should aim to promote their product as widely as possible and distribute their product details across various magazines to create potential consumers. The graph shows that consumers prefer buying the product from computer and specialist stores.

Philips needs to sell their product at the appropriate outlets to reach consumers. However, not all outlets may be willing to stock the product due to limited space. In order to have specialist stores like Argos and Index stock the console, Philips needs to create awareness through promotional methods. According to the graph, specialist and computer stores are the most suitable places to distribute the console. Computer stores like Comet and PC World would be ideal for directing the Philips console towards. Nevertheless, Philips may need to promote the product and build public relations in order for large outlets like Comet to stock the product, given their limited space. The

data shows that this may require 271,104 more units of the product in demand.

Although 6 individuals are willing to purchase the console at £180, it may be beneficial to reduce the price in order to increase sales, as the market appears to be price-sensitive. The survey results suggest that only 7.8 out of 50 individuals are likely to buy the console, which could be attributed to either the high price or competition from other products on the market.

It may be challenging to determine if price elasticity of demand is impacting sales figures for Philips' £180 console since consumers have alternatives from Sony and Nintendo. To increase sales and brand loyalty, Philips could consider reducing price elasticity of demand and differentiating their product from competitors to satisfy consumers and enhance perceptions of superiority.

Limitations in the research may decrease result reliability. A key limitation is the potential bias in the questionnaire, as respondents may have provided dishonest or biased answers to the 90/30 question. This could result in incorrect calculations, which would be problematic if used for forecasting and console launch.

Philips may miss out on potential opportunities if the console is launched during the survey period, which could cause abrupt changes in consumer behavior. However, the survey's accuracy could be limited due to its small sample size of just 50 individuals and its restricted geographic scope in Huddersfield, which may result in imprecise findings owing to differing viewpoints across various regions.

The marketing mix is an essential element for a successful marketing strategy as it emphasizes critical components. It ensures targeted marketing efforts by integrating interdependent elements that are crucial for the smooth sales of products. Philips' product

launch failure due to poor pricing in a price elastic market showcases the importance of the product's role in overall marketing success.

The chart highlights the importance of Philips guaranteeing satisfactory quality for their new console before releasing it to the market. Failure is probable if the console does not possess an attractive appearance. Consequently, Philips must strive for a superior standard compared to their past products while prioritizing tangible benefits (e.g., graphics performance) and intangible benefits (e.g., satisfaction through advertising) in order to achieve success.

In order to succeed in a highly competitive console market, Philips must distinguish their product from competitors. It may be necessary to make modifications so the console appeals more to consumers. Setting the correct price is also crucial for maximizing revenue and avoiding consumers buying from competitors. Finding the optimal balance between sales and revenue requires an understanding of price elasticity of demand.

The calculation of the weighted average indicates that only 7.8 individuals out of 50 are likely to purchase the product at a cost of £180, indicating that the figure is not impressive. Additionally, out of a potential 50 consumers, merely 18 expressed interest in purchasing the console at £180. This observation implies that there could be price elasticity in the market, indicating that a reduction in price might result in increased sales.

To secure some market share, Philips may need to implement penetration pricing and conduct market research on price elasticity of demand. Effective promotion strategies should also be developed as competition within the market is high and sales are likely influenced by promotion efforts. Promotions are a means of persuading a wider customer base to make purchases.

To

raise consumer awareness of the console, an advertising campaign would be effective. According to the graph, which shows that TV is the main source, followed by radio and in-store testing, Philips must carefully choose where to promote. Using TV and radio as their primary advertising channels would be appropriate. To attract a broader audience, above-the-line promotion may be utilized. Moreover, Philips could apply the promotional mix approach, incorporating various promotional activities.

To successfully sell the product, it must be marketed in areas where it will appeal to consumers. According to the graph, it is beneficial to focus on specialist stores like Index and computer stores like Comet, where consumers prefer to make purchases. However, due to intense competition in the market, some outlets may be reluctant to carry a new console that may not sell well.

Philips may have to establish strong customer relations to convince retailers such as Argos to replace another product with their console. Effective promotional campaigns could also encourage retailers to stock the console during advertising periods. However, Philips is likely to face challenges in penetrating the market, given that leading competitors such as Sony are currently dominant. The graph illustrates that the majority of consumers (64%) own a Sony Playstation 2 over any other console.

The current situation is worrisome and it is unclear where Philips stands in the market. In order to launch their product successfully, Philips must effectively utilize the marketing mix. While employing the marketing mix could potentially allow Philips to break through the highly competitive market, it would also be a significant risk and could result in the product being unsuccessful.