The aim of this product is to offer the quality of a 12.0 megapixel camera, with the lowest possible price, for the average consumer. Our target audience will be individuals who are looking for professional quality pictures without the expensive equipment or years of experience taking photographs.
The behavioral consumer that we are attempting to attract is anyone from the inexperienced photographer, to the most professional. The product offers services that no other within it’s price range can offer, therefore anyone that is shopping for a camera and researches it, will ultimately purchase the Nikkon Coolpix L22.
Our geographical segmentation research has brought us to the conclusion that the southeastern USA is a growing electronics consumer region. The entire region currently has the most well maintained economy, and the population increase tells us that this will continue increasing, adding to the number of potential consumers within this region.
Our demographic is currently focusing on these eight divisions; single people are the largest demographic due to the potential of buying our product for themselves and as gifts. This should be our focal point, advertising to Single, Lower Income, Young Men. College students would be an excellent idea for an advertising concept.
Our psychographic segmentation research has told us that individuals living an alternative lifestyle are our greatest category for consumer base. Followed closely by individuals who are looking for quality images, possibly for professional work.
Each model in our Coolpix product line offers different features and prices, however the L22 is the universal model. It produces quality images almost comparable to the S9100, while maintaining a price only $9.00 above the L23.
Upon introducing the L22 to the market our costs were at their highest, but marginally lower because of the pre-existing Coolpix product line. Sales were at their lowest initially due to the lack of consumer knowledge about this new product. Profit was at the lowest point, and there was no competition for a 12 megapixel camera, for under $159, our introductory price was $109. Once this information was made available to the public, the creation for demand began.
During the growth stage our product created sales trends that have not been reported in several quarters, and became the “hot new item” on the shelves. Our costs decreased allowing us to lower the price and that, in turn increased; sales, profit, and demand. When this growth began to happen, our competitors began marketing similar 12 megapixel cameras, however none cold produce our quality at a competitive price.
We are currently in the maturity stage of the Nikon Coolpix L22’s lifecycle. Manufacturing costs are at their lowest, and our sales are at their peak. Unfortunately we will not remain at this point for much longer and need to develop a strategy for re-inventing the L22 or decide upon moving in another direct. The L22 can now be purchased for $89 and any further drop in that price will result in the product moving in the decline stage of its lifecycle.
In the near future our product will no longer be cost-optimal for producing and our efforts will be focused on the next model in our Coolpix series. The challenged profitability will make the continued production of the L22 is not a reasonable one, and we will discontinue its production at that point. The competition will be offering their own 12 megapixel camera for an equal price to ours, resulting in the demand for our product to diminish.
David Moser<br />Unit 2 Individual Assignment<br />VCDD310-1101B-01<br />
Nikon Coolpix L22<br />“Bringing Life to Memories”<br />
Market Segmentation<br />Geographic Segmentation<br />Focusing on the section of the country that is developing at the fastest rate.<br />The Southeastern United States has sustained increased electronics sales over the past four years.<br />