Busi. 406

Busi. 406 - Audigit Strategy Planning Situation Analysis...

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Audigit Strategy Planning Situation Analysis Audigit’s company objective in year one is to earn enough profit to sustain operations in future years, and not be completely dependent on the $500,000 startup capital provided by LMI. This profit should be enough to provide for inventory accumulation, in order to attract larger retailers like Best Buy and Amazon in the near-future. The following table shows profit expectations for Audigit in year one based on retail selling prices of $36, $71, and $143. Gerry McCarthy can use this pro forma to help guide his marketing strategy decisions for Audigit in the early years. Compared to the competition, Gerry should assume that his “universal remote” product will be the superior product on the market in terms of both quality and simplicity. Thus, he should focus on the higher-end competitor products, like the Sony models which sell for $175 to consumers, as Audigit’s direct competition. Segmenting and Positioning After analyzing potential consumers for the universal remote, I believe that Audigit should make its initial target market high-income consumers aged 20 – 40. These consumers would be financially able to afford a remote priced at $100 or $200. They would also include individuals who are more technologically savvy, and thus much more likely to purchase a new technological product. Also, when analyzing the adoption curve Gerry should see that
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Busi. 406 - Audigit Strategy Planning Situation Analysis...

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