Scenario:
Mobile Manufacturing, Inc.
Michelle Dietrich, president of Mobile
Manufacturing, Inc. (MM), stared out of her third-floor window at the traffic
below her San Jose, California office and said to herself, “This new
product has to be right. If we can’t gain back a significant share of the
mobile phone market with this product, MM is not going to be here next
year.”
Michelle’s company made its debut in the mobile
phone industry in 2002 when it invented the first mobile phone that could
access the Internet. At the time, this gave MM a huge advantage over its major
rivals.
Mobile Manufacturing, Inc.’s first successful
product and initial public offering (IPO) in 2003 raised enough capital to help
the firm develop new products, but since then, the technology giants have
caught up with them. Although MM had some success with other products, it has
not been able to match its initial success and distinguish itself from its
rivals. MM—though it was the darling of the technology world in the early
2000s—was struggling to attract first-class employees and new investors; it was
floundering in the market.
After several failed attempts at new products,
Michelle hired Elena Steokovich, the top cell phone designer and engineer in
Europe, to help design a new product. Elena knew her stuff when it came to
phone product design, and she had worked with Michelle on MM’s first product.
After stints with big-name competitors, she agreed to return to MM to help
Michelle restart the product innovation engine.
“I know that just designing a good phone
will not be enough,” thought Michelle. “Perhaps the most important
question is: How do I know if anyone will buy our phone? Certainly market
research will help us identify potential customers so that we can target them
effectively, and careful analysis of the research findings will lead us to a
good marketing plan. Yes, the marketing plan is the key. I need to know that
the next phone we develop will meet the needs and wants of those who crave the
latest and greatest technology in their mobile phones.” MM needed to get
back a market share if it was to survive in a fiercely competitive environment.
Michelle also knew the mobile phone and
technology markets had changed drastically in other ways since MM first entered
the market. There were new domestic and foreign companies competing, increased
market demand driving prices down, and innovative products being introduced
every year. Although some consumers were happy to try out the latest and
greatest products, a large number of customers were suffering from feature
fatigue, a term used to describe the tiring of the bells and whistles. The
customers with feature fatigue just wanted to make phone calls to their family
and their friends.
To help ensure that MM has the right marketing
plan for its new mobile product, Michelle has hired you as her marketing
consultant for this project. As the marketing consultant, you will be
responsible for planning, organizing, and implementing the marketing plan for
MM’s new product.
