New Business Proposal
Customer Behavior
Customer behavior refers to how customers select a particular product, how they use it to satisfy their needs, and how they dispose of the product (Ratneshwar & Mick, 2005). As the company creates the RFID ride bands, it must take into consideration how clients of Merlin will access the ride bands and how they use them. It is important because the main goal of the ride bands is to satisfy the needs of these clients. There are a few processes that will be involved in understanding the consumer behavior. One of the processes is identifying Merlin Entertainment’s problem, which is the RFID ride bands. Secondly, it is critical to evaluate other alternatives Merlin Entertainment could have to solve their problem. Thirdly, there is a need to create the RFID ride bands that appeal to Merlin Entertainment. It is important to understand the purchasing behavior of the Merlin Entertainment. For instance, it is key to know whether Merlin Entertainment buys the ride bands on a regular basis. Usually, regular purchasing entails buying small quantities frequently; for example, daily, weekly, monthly, and quarterly. It is also critical to understand the quality of ride bands Merlin Entertainment prefers.
There are several factors that can affect Merlin Entertainment buying decisions concerning the RFID ride bands the company intends to create. First and foremost, economic factors. For instance, the company has to consider the purchasing power of the Merlin Entertainment. Secondly, it is key to understand the psychological factors, such as the attitude of the clients of Merlin towards the RFID ride bands (Ratneshwar & Mick, 2005). Again, the perception that Merlin Entertainment has towards the company is key. Also, the company has to consider the image Merlin Entertainment wants to maintain with its clients. Social factors that could influence the purchasing of these bands by Merlin include the role they play towards quality entertainment. Also, their goal in ensuring memorable experiences for their clients is also key to analyzing. Therefore, as a company, it is critical to take into consideration the needs of the clients and the purchasing power of Merlin Entertainment (Ratneshwar & Mick, 2005).
Target Market
The target market for this bands are clients of Merlin Entertainment and amusement Parks (Merlin Entertainments, 2016). The RFID ride bands are meant to create easier access to park rides through electronic identification. In designing the product, there are several characteristics of the target market that the company needs to understand. One of the characteristics is geographic details (Annacchino, 2007). Such details try to answer where most of Merlin Entertainment are concentrated. For instance, Merlin Entertainment has most of its branches concentrated in the UK with others distributed in the US and Australia (Merlin Entertainments, 2016). However, the geographic location of the company is in the UK, meaning it will target clients from this region. Understanding the location will enable the company to effectively market and distribute the RFID ride bands.
Psychographic factors of the target market will help the business to identify choices that may influence Merlin Entertainment in considering to use the RIFD bands. For instance, the company will know how many ride bands to produce for Merlin Entertainment on a monthly basis depending on an average monthly number of clients it receives. It is also important to understand the unique role the band in its market. For instance, plastic ride bands can be recycled as compared to paper bands. Plastic ride bands will also be easy to maintain and are comfortable to the user. (Annacchino, 2007). It is critical to analyze the behavioral aspect of the target market. Behavioral aspects of Merlin Entertainment towards the RFID ride band will help to understand their needs better.
Positioning
The company's marketing objective is to increase the market share by 5% over the next three years and subsequently frequent customers by 10% every year. To achieve these goals, the company needs to create a distinct and unique position while creating RFID ride bands for Merlin entertainment as compared to other competitors. If this is implemented successfully, is will create a strong brand name (Dahlén, Lange & Smith, 2010).
Positioning will involve many processes to position the band correctly in the market. First, the company must understand clients of Merlin Entertainment and their specific needs. It is very important to meet customer’s need; although, they vary from one person to another (McDonald & Dunbar, 2004). Secondly, the company should understand the competitors in the market producing the same product and how Merlin entertainment feel about competitors’ ride bands. Ideally, it means that the company should analyze the competitors’ products and understand their weaknesses to fill the gap.
After analyzing the clients’ needs and the market gap, the company should consider objectives as outlined to have a successful product positioning. The first objective is creating a distinct product. The company should create an RFID ride band that is differentiated but simple to use for Merlin Entertainment clients. Secondly, the RFID ride band should meet the customers’ needs. For instance, the band should be well fitting such that it cannot easily fall. Thirdly, the RFID band should easily be detected by electronic machines in the park and; hence, fulfill its objective.
An effective product positioning will have several features. If the ring band is positioned well, it will send out the right message to clients. The RFID ring band should attract the right client and in this case, clients of Merlin Entertainment. Also, the ring band should be relevant to the clients of Merlin, which in turn will increase repeat customers. Positioning is important since it goes a long way in influencing the market about the quality of ride bands the company intends to create. Consequently, the company will have a competitive edge over its competing brands (Proctor, 2000).
Market Segmentation
Market segmentation focuses on where a company divides a large market and focuses on a particular target in an attempt of serving their needs and wants. In this case, the company has targeted clients of Merlin Entertainment so that it can specifically meet their needs and wants. Many factors that affect segmentation of the market, such as the size of clients of Merlin, accessibility of the ride bands, customization needs for Merlin clients, and the status the company wants to maintain in the industry. However, these factors are based on the way the company has segmented clients of Merlin Entertainment. (McDonald & Dunbar, 2004)
Segmentation will be based on demographics of clients of Merlin Entertainment Company. It will focus on details such as gender and age. For instance, the age group that mostly visit Merlin Entertainment are children aged between 5-10 years accompanied by their parents. However, most rides are done by children and; therefore, the ride bands will be made to accommodate the size of children hands (Merlin Entertainments, 2016). Again, clients can be either male or female and therefore; the bands should appeal to both sexes.
Reference List
Annacchino, M. A. (2007). The pursuit of new product development: The business development process. Amsterdam: Butterworth-Heinemann.
Dahlén, M., Lange, F., and Smith, T. (2010). Marketing communications: A brand narrative approach. Chichester, UK: Wiley.
McDonald, M., and Dunbar, I. (2004). Market segmentation: How to do it, how to profit from it. Oxford: Elsevier/Butterworth-Heinemann.
Merlin Entertainment, (2016). Merlin Entertainments Homepage. [online] Merlinentertainments.biz. Available at: http://www.merlinentertainments.biz/ [Accessed 4 Mar. 2016].
Merlin Entertainments, (2016). Merlin Entertainments | Resort Theme Parks. [online] Merlinentertainments.biz. Available at: http://www.merlinentertainments.biz/resort-theme-parks [Accessed 4 Mar. 2016].
Merlin Entertainments, (2016). Merlin Entertainments | Strategy. [online] Merlinentertainments.biz. Available at: http://www.merlinentertainments.biz/strategy [Accessed 4 Mar. 2016].
Proctor, T. (2000). Strategic marketing. London: Routledge.
Ratneshwar, S., and Mick, D. G. (2005). Inside consumption: Consumer motives, goals, and desires. London: Routledge.
