Product reassessment Essay Example | Topics and Well Written Essays - 1250 words

Product reassessment - Essay Example Definite measure to sustain the project is thru distributorship or partnership as specific form of entry to the China market. Picture of the product is shown in Annex 1, while profile of the company may be downloaded in its company website. Discussion . Life cycle of the fax machines in the United States have reached maturity and declining stages. It has been overtaken by fast technology changes in communication. At this stage, manufacturers are left with three options: to look for new markets, to accept its fate, or to upgrade features of its products to present a new appeal. While it seems that US market is saturated and has reached maturity, other foreign markets are still on a developing stage. One such country is China, that despite for its being big in terms of economic development, has low usage of Fax machines. According to CIA Factbook, (2013) China has a population of 1,349,595,895 and is considered the most populous country in the world. It has a literacy rate of 92.2% whi ch is a very good segmentation target for the product. Repositioning needs a risk management plan that involves a market research. Since there are issues why the fax usage is low in this country, and before entry, a market research should be conducted in order to ascertain acceptability of the product. Market research helps the company understand the customer and its relative situation. The branch of research ideal for repositioning is market profiling or segmentation survey to know following conditions: to identify who are the customers, why are they or not customers. The survey may also include questions about purchasing decisions in order to know motivational factors from interest to actual purchase. This section opens up with the idea of major factors that lead to the level and rate of adoption of new products. Fax machines are not a totally new product, but the idea is to reintroduce it to a new market, which is China. A method that could be used to check on adoption rates is t he concept testing or test marketing. Concept testing gives an idea of customers reaction before funds are spent for it, wherein â€Å"A cross-section of the general public could be asked to respond to this product idea and may be able to comment on the intrinsic appeal of the idea and, more especially, could make suggestions as to where it would best be positioned in the market† (‘Agricultural and Food Marketing Management† n.d.). Two Test marketing advantages outlined in the study of FAO stated that it provides an opportunity to obtain a measure of a product's sales performance under reasonably natural market conditions. Market share can be estimated and used as the basis of the decision as to whether or not the product is launched nationally. Test marketing also offers an opportunity for management to identify and correct product or marketing strategy weaknesses before a national launch takes place. An idea that could be carried out in the launch is product ser vice or component that could complement the product. Fax machines are one of the products carried in the portfolio of Canon. Copiers would be the best complement for Fax machines. It could be offered as a combined package at a discounted price. After sales service could also be an attractive proposal. In every product category, service or warranty is provided. So that sales and service would be maximized, on-line system of ordering or servicing should be in place so that customers can