Product and service analysis with market competition evaluation

Marketing

The product is a service, the service of home repair. There are several elements to this service. These include consultation, repair and follow-up service. The service staff will be a team of professionals, working on contract to the company. They will all be experienced professionals in their fields (e.g. plumbers, electricians, handymen, etc.). The physical environment in which the service will be performed is at the customer site, as the repair work will be done to residential and commercial properties. The process is going to be different each time, but consists of the basic steps of consultation and estimate, work design, work, and post-work follow-up.

Distribution refers to how the service will be distributed. The function of a distribution channel is to provide a link between production and consumption (Tutor2U.net, 2011). In a service industry, the two are closely linked. The workers who will provide the repairs will do so at the customer site. They will arrive via company vehicles. The service will be distributed throughout the Fremont area, including surrounding communities in the Tri-City area. As noted above, the location where the service will be provided is largely at the customer's site. There may be times when the service, in particular discussions about pricing and ideas, can be conducted via electronic means of communication or the telephone. The timing of the service provision will be subject to negotiation with the client and the availability of personnel. Emergency services that require a fast turnaround will be provided for an additional cost, otherwise normal timing negotiations will apply.

13. The business is targeting all demographics in the area, but in particular the higher income demographic that can afford the premium prices the company expects to charge. Using widely available U.S. Census Bureau statistics, Fremont has 214,000 people, Newark has 42,000 and Union City has 69,000 for a total of 325,000. Demographically, Fremont is 50% Asian and 33% white. The median household income is $93,342, much higher than the national average and only 5.4% of the population is below the poverty line, much lower than the national average. Newark is whiter has a lower median income. Union City, with a demographic profile similar to that of Fremont, lies between to two in income, but is comfortably above the national average.

The first method of breaking down the target market is by income. As this area has a high income level and high levels of post-secondary education, that should be the first breakdown. While lower-income customers can be taken, the primary target market breakdown will be to focus on the well-paid, highly-educated segment of the population, as this constitutes a fairly large target market.

Demographic breakdowns can also be done on the basis of race or ethnicity (Scott, 2009). The population of the Fremont area can largely be split into three groups -- Asian, white and other. The Asian and white communities can be targeted individually, as they have distinctive cultural characteristics that can be generalized in the marketing communications. Other groups may be too small to target, and would therefore be subject to spillover from the marketing targeted at Asians and whites.