Recently, an important event happened in India the day Steve Jobs passed away. On that day, the $35 tablet computer called Aakash (meaning Sky) was unveiled by a company called Datawind with basic computing functions and internet capability. This is aimed primarily at secondary and higher-secondary school students. The overarching objective is to provide a low-cost technological platform to students and expand internet penetration overtime, which is very important in India. Let us look at the segmentation, targeting and positioning for Aakash with the STP model:
- Identify total market - Over 40 million secondary and higher-secondary school students in India.
- Determine segmenting dimensions - The market can be segmented geographically. The proportion of secondary and higher-secondary school students is almost evenly distributed across urban and rural areas. Thus, the number of students in rural areas is around 20 million, the same as urban areas. Geographical segmentation is important, in this case, because of the disparity in usage of technology in rural and urban areas in India. This is the key factor in determining which segment to target and how to position the tablet computers.
- Profile each segment - The students in the urban areas have access to the latest technology and their families have the purchasing power to provide them computers and mobile phones, even at a higher price. On the other hand, students in rural areas do not have ready access to technology and face infrastructural deficiencies. They require low-priced computers to avail technology for educational purposes.
- Assess segment attractiveness - Even though the number of students in both segments are nearly the same, the rural segment is more attractive for a cheap product such as Aakash. This is because Datawind would be looking at selling higher volumes to the 20 million students and even at the low price point of $35 this would most likely help the company generate profits.
On the other hand, students in the urban areas are not an attractive segment since they already have access to better technology. Uptake for the cheap Aakash tablet is not likely to be as high as in rural areas since price is not a constraint for students in urban areas. For instance, their families can purchase tablet computers launched by Samsung and Apple at higher prices with better functionalities and applications.
- Select target markets - The students in rural areas are prime targets. This is because targeting this segment is profitable for Datawind because of the prospect of selling higher volumes and because of the lack of competition at such a low price point of $35. Even in the urban areas, Datawind faces low competition at the low price of $35 but the sales prospect is not good since students are technologically savvy and would prefer to buy computers with better functionalities and applications even at higher prices.
- Positioning - Datawind would have to position Aakash as a cheap technological platform that satisfies an important need of students, especially in rural areas. The marketing strategy would have to focus on conveying the long-term benefits for society, such as expansion of internet access and the positive effects on educational standards. The low price of the tablet computer can be used as a key marketing tool. Television advertisements featuring important national figures conveying such messages would be an important way of marketing the product. Social media, such as Facebook, can also be used to market the product.
Indians will be keenly observing the performance of Aakash over the next few months. The sky is surely the limit for this important innovation.
- Identify total market - Over 40 million secondary and higher-secondary school students in India.
- Determine segmenting dimensions - The market can be segmented geographically. The proportion of secondary and higher-secondary school students is almost evenly distributed across urban and rural areas. Thus, the number of students in rural areas is around 20 million, the same as urban areas. Geographical segmentation is important, in this case, because of the disparity in usage of technology in rural and urban areas in India. This is the key factor in determining which segment to target and how to position the tablet computers.
- Profile each segment - The students in the urban areas have access to the latest technology and their families have the purchasing power to provide them computers and mobile phones, even at a higher price. On the other hand, students in rural areas do not have ready access to technology and face infrastructural deficiencies. They require low-priced computers to avail technology for educational purposes.
- Assess segment attractiveness - Even though the number of students in both segments are nearly the same, the rural segment is more attractive for a cheap product such as Aakash. This is because Datawind would be looking at selling higher volumes to the 20 million students and even at the low price point of $35 this would most likely help the company generate profits.
On the other hand, students in the urban areas are not an attractive segment since they already have access to better technology. Uptake for the cheap Aakash tablet is not likely to be as high as in rural areas since price is not a constraint for students in urban areas. For instance, their families can purchase tablet computers launched by Samsung and Apple at higher prices with better functionalities and applications.
- Select target markets - The students in rural areas are prime targets. This is because targeting this segment is profitable for Datawind because of the prospect of selling higher volumes and because of the lack of competition at such a low price point of $35. Even in the urban areas, Datawind faces low competition at the low price of $35 but the sales prospect is not good since students are technologically savvy and would prefer to buy computers with better functionalities and applications even at higher prices.
- Positioning - Datawind would have to position Aakash as a cheap technological platform that satisfies an important need of students, especially in rural areas. The marketing strategy would have to focus on conveying the long-term benefits for society, such as expansion of internet access and the positive effects on educational standards. The low price of the tablet computer can be used as a key marketing tool. Television advertisements featuring important national figures conveying such messages would be an important way of marketing the product. Social media, such as Facebook, can also be used to market the product.
Indians will be keenly observing the performance of Aakash over the next few months. The sky is surely the limit for this important innovation.
No comments:
Post a Comment