Iconic, Inc.'s microcomputer product strategy and market positioning

Economics

Industry and company facts:

Demand for microcomputers amongst all sectors and suppliers is currently 9383 per quarter

Ionic, Inc. has the largest market share in the industry at 32%, and hopes to further outstrip its competition in the coming four quarters

Total unit demand for Iconic, Inc. is 2557 for the quarter, with Traveler and Workhorse units accounting for the bulk of sales in absolute terms, joined by Cost Cutters in terms of proportional sales and market share

Increasing demand for technology of mid-level performance and price promises to grow what are already Iconic, Inc.'s most profitable sectors

The most considerable barrier facing iconic, Inc. is industry competition, which has already all but pushed Iconic, Inc. out of certain sectors but which is far behind the company in others

Iconic, Inc. will consider buyout of some of its much smaller competitors that are nonetheless more successful than Iconic, Inc. In certain sectors

Product

While continuing to develop and market products in all five identified market sectors (Cost Cutter, Innovator, Mercedes, Workhorse, and Traveler), Iconic, Inc. will focus its products in the areas where the company is already dominant and meeting with great success, namely amongst the customers of the Workhorse and Traveler sectors, the details of whom are discussed below. Using the knowledge obtained regarding these customers' desires, specific products and marketing techniques will be developed for each sector.

Products have already been successfully marketed to these sectors, as is evidence by the industry and company facts detailed above. Ongoing adjustments to these products will continue to be made throughout their life cycle as customer needs and technological capabilities evolve and expand, as determined through market and product research and development. The following lists provide a breakdown of certain basic elements of the products Iconic, Inc. will be marketing towards the Workhorse and Traveler consumer sectors:

Workhorse Benefits:

High-powered processors for faster saving and retrieval

Designed specifically for ease of integration with large networks

Time-sharing and multiple operation running made easier

Easily accommodate multiple users with different access/security levels

Large RAM and hard drive capacity

Workhorse Features:

Moderately sized to fit most workspaces

Software covering the bulk of standard office operations comes preloaded, with customizable software and hardware available for specialized units

Multiple external ports to accommodate a variety of inter-device connections

Network compatible through several outdated protocols

Traveler Benefits:

Designed to be tailored to each individual consumers needs

High quality sound and image/video capturing and processing

Multiple operation functionality is greatly enhanced

Provides more than enough computing power for standard uses in a smaller and more user-friendly package than is offered by other companies

Traveler Features

Lightweight and compact design for easy portability

Voice-activated control to allow for hands-free operation/multitasking

Standard WiFi and optional 3G connectivity for consistent access to email, data, and the Internet at large

Statistical analysis, word processing, accounting, and other typical business software requirement come preloaded standard

Competition

Iconic, Inc. is entering the microcomputer field along with six other competitors, and though Iconic, Inc. is currently the overall market leader there are specific sectors in which the company is being especially threatened, and competition is still quite fierce. Some competitors are focusing on other consumer segments, which carries certain clear advantages for Iconic, Inc. And the decision to focus on this company's strengths, yet there is also significant overlap in targeting and marketing efforts as well as the issue of ongoing competition in the industry as a whole. The following table breaks down the competitive analysis of Iconic, Inc. And its two primary competitors in the Workhorse and Traveler sectors.

Table 1: Competitive Analysis

Factor

Iconic, Inc.

Strength

Weakness

Ikonic

Quantum

Products

Products offered in all five consumer segments, with emphasis on targeted areas x

Offers products in four fo ive segments with less specialization

Offers products in only two consumer segments

Price

Target segments for the company are moderately price sensitive x

Price sensititivty profile is similar to Iconic, Inc.'s, and products are competitively priced

Products have yet to show substantial competitiveness in pricing/feature ratios

Quality

Quality control costs have been kept relatively low without sufficient detriment to product quality x

Quality costs are lower, as is quality itself

Higher quality costs are contributing to slower sales

Selection

Four brands in five segments gives consumers greater selection and brand familiarity x

Four segments served by as many product lines provides Ikonic with similar familiarity

With a single brand in two segments, selection is not a focus of this company

Service

Service and customer satisfaction are primary concerns for the business and will represent a major resource outlay x

Service data currently unavailable

Service data currently unavailable

Location

Manufacturing ill take place in Mexcio for distribution throughout the Western Hemisphere

x

Manufacturing centered in Canada for North American markets

Asian manufacturing for Asian and European distribution

Sales Method

Direct-to-business sales will form the bulk of the company's revenue stream

Retail efforts have been identified by this company as the option with highest potential rewards

Wholesaling and retail options have been explored by this company

Advertising

advertising trhough websites and traditional media aimed at business consumers

Direct end-user advertisments are preferred

Trade shows and retail expos are the primary marketing tools of this company