GROUP I
Members:
Alfred Rungisi Ochieng – 22/02379
Ezekiel Mwangi – 24/00080
John Njoroge -24/01639
Ryan Muturi – 20/04773
Ahmed Adna llyas – 24/04210
Brian Musyoka – 18/05934
Marite Faith Ntuta – 21/06689
Asumpta Nzilani- 23/05782
Chege Lucy Nyokabi – 23/06226
Jamaa Yahya Fuad – 21/07377
Question 1:
a) Activities at commercialization stage and how they affected Ericsson.
Product launch – there was a delay in launching the T28, which
dropped its market share.
Marketing – Any new product must be well marketed, to create
awareness about its launch. But you cannot market what you do not
yet have. We are told that one of the reasons why Ericson missed out
on the demand for low cost handsets, as a result of delays in product
launch.
Responding to changing market conditions – In the case of the
T36, we learn that it was cancelled due to a short market life. A short
market life usually indicates obsolescence/inability to compete
(especially in highly dynamic markets). Due to this, Ericsson chose to
minimize its losses, rather than commercialize an uncompetitive
product.
Question 1b; Strategy options for Ericsson
i. Market penetration – It should have completely focused on
its existing products and put more effort into aggressive
marketing and promotions.
ii. Market development – Implement more agile and efficient
product development strategies and also target new customer
segments.
iii. Product development – Develop more efficient products to
reduce TTM cycles avoid delays.
iv. Diversification – Expanding their product to cater to
different segments of the markets. This can be achieved by
charging different prices from their competitors.
Question 1c).
Rapid innovation – Businesses need to adopt modern technologies quickly
to stay competitive. Delays in launching their new product shows how failure
to keep up with rapid industrial innovation can ruin business.
Customer expectations – With improvements in technology, customers
expect products with higher quality features. Failure to meet these
expectations causes firms to lose customers.
Short life cycles – Products that are not up to par with current technology
are likely to be rendered obsolete/uncompetitive in a very short time. The
firm must no longer spend capital on such products (like the T36 in Ericsson’s
case), as they would not recover their production cost.
Question 2:
a) Matching purchases to behaviour.
Milk Habitual
Sausages Habitual
Chocolate Variety
seeking
Lollipop Variety
sweets seeking
Dining Dissonan
table ce
reducing
Cemetery Dissonan
plot ce
reducing
Kaunda Dissonan
Suit ce
reducing
Photograp Complex
hic
equipment
Laptop Complex
Rolex Complex
Watch
Mercedes Complex
Station
Wagon
Question 2 b):
1. Shopping goods
Higher cost items bought less frequently and involves brand comparison e.g.
sausages.
2. Specialty goods
Luxury items with specific brand preferences example Rolex and Ferrari.
3. Unsought goods
Products not typically considered buying example cemetery plot.
4. Convenience goods.
Frequently purchased goods that are of low cost, for example milk and
chocolate.
