Target customer groups

Date: 2015-10-07; view: 375.

Competitors

Background

Marketing Strategy for the Caxton Reader: Case study

Virfen is a Cambridge-based company which has built a strong reputation with its personal organizers. It has recently developed the Caxton Reader, an electronic book used to view books, newspapers, and magazines downloadedquickly from the Internet using its powerful modem. Unlike its rivals, the Caxton ‘s flexiblescreen folds in two, just like a real book. Virfen can produce 500 units a day. Each Reader costs $50 to produce in materials, labour, and shipping. Now Virfen is developing its marketing strategy for the next three years. The company would like to recover its development costs quickly.

The Lector

First reader in the market. Heavier and less strong than Reader. Rigid screen. Price $250. Three years old.

The Paston Voyager

Same weight as Reader. Accepts book cards: users can buy books in the form of plastic cards which they can insert into the Paston Voyager. Rigid screen. Slow download time. Price $200. Eighteen months old.

Virfen has researched four potential markets for its product.

Group 1: High-level managers who travel a lot and need information quickly. They may be early adopters and ready to pay $300.

Group 2:Middle-level office workers who read while commuting to work. Also university and high school students. The price for this group should not be more than $150.

Group 3: Mass market. General public. Consumers ready to pay between $75 and $100.

Group 4: Poorer export markets. Not more than $60.

II. VOCABULARY