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Positioning Flashbox How to Introduce a New Product to Different Market Segments

MARKET RESEARCH, APRIL 20, 2009 PROFESSOR TANSEV GEYLANI 2009 Team 2: Bre Behun, Alyssa DiLoreto, Chad Jandrositz, Abby Painter, Jessica Presutti, Allison Virus


Table of Contents INTRODUCTION

2-9

EXECUTIVE SUMMARY COMPANY BACKGROUND DECISION SITUATION EXPLORATORY RESEARCH PROBLEM DEFINITION

2-3 3-4 4-5 5-7 7-8

BODY

9-16

DATA COLLECTION SAMPLING PLAN DATA ANALYSIS RESULTS LIMITATIONS

9-11 11-12 12-13 13-15 15-16

CONCLUSTIONS AND RECOMMENDATIONS

16-17

APPENDIX

18-19

Positioning Flashbox | 4/20/2009

DECISION PROBLEMS, RESEARCH PROBLEMS, HYPOTHESES FOCUS GROUP GUIDE

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18 19


Positioning Flashbox How to Introduce a New Product to Different Market Segments Executive Summary This marketing research report focuses on the helping resolve Flashbox’s current sales and advertising situations. The main goal of this study was to determine and evaluate hypotheses through the use of data collection and statistical analysis to be able to provide valuable information for our company. By meeting with the owners of Flashbox, we were able to create solid decision and research problems, which were used to develop the following main objective: Do brides prefer photography over videography? Do upper-tier weddings spend money on both photography and videography services? Is the price of the Flashbox is a huge factor in the purchase decision? Is a bundle package of Flashbox & regular videography an attractive feature for brides? Are direct sales the most effective way to communicate the Flashbox concept? From our questionnaire research and statistical data analysis, a list of recommendations and conclusions has been prepared for the use of Flashbox’s marketing and sales campaigns based upon some interesting statistics. Brides do prefer photography over videography. Our recommendation to Flashbox is make their photography package more appealing to brides and their photographers because 57% would consider purchasing the package services. Offer a small discount on this photography package

Upper-tier weddings will spend money on both photography and videography services. Roughly 47% surveyed would spend greater than $15,000 on a wedding which does not meet the standards for upper-tier weddings. A recommendation to Flashbox is to do additional market research solely on upper-tier weddings in the Pittsburgh area to find more exhaustive ways to reach this market. The price of the Flashbox is a huge factor in the determination of not purchasing the services, in fact, only 3.33% would spend the Flashbox price on videography services. Our research team recommends that since many brides and brides to be feel that the Flashbox is over-priced;

Positioning Flashbox | 4/20/2009

and a percentage cut to the photographer.

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Flashbox should create a variety of packages that are available and/or charge an initial fee and then an hourly rate instead of one flat fee. A bundle package including regular videography is an attractive feature for brides. Currently, the Flashbox this service is offered to but not advertised. We recommend that they make this package well know, to provide brides with the option to have their wedding and one hour of their reception videotaped because 57% would most likely choose a video option similar to this. Direct sales, (i.e. bridal shows) are the most effective way to communicate the Flashbox concept. Our recommendation is to stop the spending advertising dollars on radio, TV and print ads because 100% of the people surveyed had never seen one of these ads and 53% said they would inquire more information after seeing a demonstration. Their advertising budget should be focused on direct sales locations such as bridal shows.

Company Background Flashbox Media LLC is a company in Pittsburgh, PA that became incorporated in 2006 as the result of a collaborative effort of three individuals from backgrounds in finance, broadcast and technology. They offer one product called the Flashbox, which is a touch-screen video kiosk that allows guests at large-scale events to record video messages. The final product is an edited DVD with special graphics and effects of the video clips from the events. The Flashbox team used weddings as the first target event and launched the product in fall, 2007. Last year (2008), was the company’s first full year of businesses.1 Current marketing strategies for the Flashbox include print ads in the Pittsburgh Post-Gazette, radio ads and online marketing strategies like using YouTube and Facebook. Among the company’s most profitable strategies are direct sales through attending bridal show conventions in the Pittsburgh area.

Positioning Flashbox | 4/20/2009

In terms of sales, 2007 was a start-up period and the company spent its money on the product,

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research and technology. In 2008, they booked 28 events totaling $34,000 in revenue. For the year 2009, they have over 35 scheduled events and the number is growing1. The price for the Flashbox package is $1,500. This price includes a five hours of recording messages at the event, a hostess to attend the event that encourages guests to record their message. After editing the video messages, the company provides their customers with two finished DVDs and posts the video on a private YouTube page. They also offer

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a photo upgrade for $400 which includes still photos provided from the event’s photographer that the company inserts between video clips. 1 This product is part of the event industry, specifically the wedding industry. Since the Flashbox is new (and the only product of its kind), many people confuse it with photography or videography. Currently, the Flashbox’s main competitor is the Shutterbox, which is a photo booth that many brides and event planners hire for wedding receptions. Decision Situation There are many issues facing the Flashbox. They have a new and exciting product but aren’t sure how to introduce it in a way that effectively informs potential consumers and strikes an interest for a potential consumer. Our team’s goal is to determine the best strategy to inform the Flashbox’s target market and get them excited about this product. We also feel that the company may have some issues in terms of communicating to the public. Since the product is so new, we need to select the most appropriate form of communication and improve their current tactics. We want to find the tools and information that will help convey the message that the Flashbox is the new must-have for preserving memories from important milestones in life. Another decision to address is how to reach out to the higher-end Pittsburgh market online. Secondary research shows that this key target audience that spends over $20,000 on weddings is extremely difficult to target. Major reasons for this include the fact that some brides plan their weddings without the help of event planners, who can be referrals for the Flashbox. Another reason is that event-

and potential consumers don’t discuss it with their other engaged friends. This is an important project and decision making process, because the Flashbox team is enthusiastic about their idea, and the product is unique to any other in this industry. Threats to the Flashbox include competition from other videographers and the Shutterbox (mentioned on the previous

1)

1

Personal interview with company proprietor, January 2009

Positioning Flashbox | 4/20/2009

planning tips come from word-of-mouth advertising. Since the Flashbox is new, there isn’t a strong buzz

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page). These are well-known forms of multimedia at events and are already standard in the event industry. From a customer perspective, they are threats to the Flashbox’s success because they aren’t aware of the product. Especially with technological devices, it is difficult to find an audience who will be the early adopters of such a new product. Exploratory Research Exploratory research was the first step our group took in beginning our project with Flashbox. It was important for us to better understand the market, the product and the target audience. Our exploratory research enabled us to gain more insight on the potential problems with Flashbox. The results of our research helped formulate the decision problems and guide potential hypotheses. Our research included meeting with our client, collecting secondary data on the wedding market and conducting a focus group. Our findings supplied us with a great amount of critical information. The client meeting generated a lot of discussion and provided us with their perspective of the product and its issues. They informed us that during the start-up phase of the business, they wanted to focus on the wedding market but are lacking feedback from customers and potential customers. Word-ofmouth and direct sales make up the majority of orders, and they feel that the website is weak and should be a stronger tool. They have had difficulty generating website traffic and have had trouble communicating what the product is and how it works. Another goal that they expressed was to target brides that have an upper-tier budget of $30,000+. Currently, their only method of reaching this segment is through a handful of wedding planners, but they are looking for alternatives.

Positioning Flashbox | 4/20/2009

From this meeting, our group gained insight about the Flashbox and its problems from the

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company’s perspective. We were able to take a step back from our client and look at the potential symptoms of their concerns. A decision problem that we formulated from this information was, “Should we target brides and grooms?” We want to research the percentage of brides and grooms that choose photography/videography given their budget and pinpoint the average amount of money spent on a wedding in Pittsburgh. It was also apparent to us that the client was concerned with the lack of inquiries about their product. This led us to the decision problem, “What form of advertising best suits that company’s

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needs?” We want to research the current design feature of the website and evaluate the effectiveness of current promotional campaigns. We believe that the website is not user friendly or an effective tool to communicate the product. Also, it appears that bridal shows are the best way to reach potential new customers. The next step we took was to collect secondary data on the market and unbiased research from the perspective of the customer. A key source in our secondary data was analyzing “The American Wedding Survey” compiled by the Fairchild Bridal Group. From this study, we were able to see that the U.S. Wedding industry is a $50 billion market of goods and services with 2.2 million weddings taking place in 2003. In 2002, the average cost per wedding was $22,360. If you break down the cost, you will find the wedding reception represents the largest portion of the budget at 35%, followed by wedding rings - 22%, photo/videography - 8% (where the Flashbox fits), and formal wear - 7%. The photography/videography segment are generally geographically localized “mom pop” providers.2 The price depends on skill, quality, experience, and wedding package selected. Price ranges: Photography: Videography:

$1,000 - $5,000 $ 500 - $3,500

We also learned about our customer, today’s bride and groom. They are sophisticated, techsavvy and have higher education and more career opportunities. All of this contributes to having more spending power3. Another part of exploratory researched involved conducting a focus group. We followed the

Flashbox. Based on what the product offered, we decided that the two most pressing research problems were determining whether customers would be willing to pay the desired price, and if they would be interested in the Flashbox alone without additional videography. See Appendix 1 for the discussion guide.

2

“American Wedding Survey.” The Fairchild Bridal Group. 2003. http://www.sellthebride.com/documents/americanweddingsurvey.pdf.

Positioning Flashbox | 4/20/2009

procedure for conducting a focus group by first defining a set of research problems related to the

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Jessica was the moderator and maintained a comfortable atmosphere for the discussion while posing fair questions that pinpointed target spots. The group contained seven individuals, whom we assembled by screening potential participants to form a balanced group: a collection of product users and non-users with similar backgrounds but differing opinions. All seven were in our target age range (22-35 years-old). The session was conducted at Jessica’s house. The participants were welcomed, introduced and made aware of the intent of the focus group. The moderator recorded handwritten notes throughout the ninety-minute session. Lastly, we summarized the findings: price was a large issue, as was the product by itself. Participants also had trouble understanding the difference between the Flashbox and standard videography and found the website to be unclear, which indicated that potential customers would not book it if directed to the website. This helped us develop our hypotheses that we further researched with our questionnaire. Overall, exploratory research helped our group establish the necessary foundation to understand the product, the client’s perspective and beginning to delve into the mind of the consumer. The initial meeting with the client, secondary data and focus group contributed to the formulation of the problem definition. Problem Definition Decision Problem 1 Decision problem one (1), regarding the Flashbox, and the target market is: should this product be targeted towards brides and grooms, as opposed to other people who plan celebrations and events?

Positioning Flashbox | 4/20/2009

Flashbox could take a different route from its original plan and target wedding planners, or those who are

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planning for other events besides weddings. Research problems regarding this decision problem include: determine the percentage of brides that choose videography or photography given their budget (1a), determine the percentage of brides that in the Pittsburgh area that choose videography (1b), determine the percentage of brides in the Pittsburgh area that choose photography (1c), determine the average amount of money spent on a Pittsburgh wedding (1d). There are five hypotheses that correspond with the given decision problem and research problems. The five hypotheses are: a large percentage of brides choose videography (1.1), brides of the

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upper-tier of weddings choose both videography and photography (1.2), brides with wedding planners choose both videography and photography (1.3), Brides spend greater than $15,000 for a wedding (1.4), the price of the Flashbox exceeds the acceptable cost range that a bride would pay for videography (1.5). Decision Problem 2 Decision problem two (2), regarding the Flashbox and the service provided asks what form of advertising best suits this company’s needs? Should this company choose Internet based advertising, print advertising, or word of mouth advertising that occurs at wedding shows? Research problems to be considered when conducting interviews and surveys could include: determining the design features of Flashbox’s current website (2a), monitoring website traffic to analyze the demographics of visitors (2b), evaluating the effectiveness of Flashbox’s current marketing campaigns such as print ads, the company website, and bridal shows (2c), and determine a method to more effectively promote the company’s website (2d). Once again, four hypotheses were formed regarding the second decision problem. The group theorizes that people will use Google as a search engine to locate Flashbox information through the Internet (2.1). People have not been exposed to effective print of television advertisements (2.2) and that bridal shows are the best way to reach these people (2.3), and that a bundle package including Flashbox services, photography, and videography on a DVD would be more appealing to brides (2.4). Decision Problem 3 The final decision problem (3), regarding Flashbox is how can the market be better educated about the Flashbox? There are four research problems that should be determined to better address this

(3a), evaluate current brides’ knowledge about the Flashbox (3b), compare Flashbox’s advertising to the campaigns of other new products in the market (3c). Three hypotheses were formed regarding this decision problem and the research problems discussed above. It is hypothesized that direct sales of Flashbox is the most effective way to reach brides (3.1), most of Pittsburgh knows very little about the Flashbox (3.2), and that brides are more informed about the Flashbox after hearing a brief description (3.3).

Positioning Flashbox | 4/20/2009

decision problem. Research on this problem should determine the effectiveness of Flashbox’s direct sales

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Data Collection Method The relevant population for our study of Flashbox, are couples that are engaged or married. More women than men were targeted, because women said they planned the wedding. A variety of ages of men and women were taken into consideration (but mostly in the 22-35 range), along with price ranges how much couples plan on spending for their wedding ($10,000-$30,000+). The data collection method that we will use is an email survey. We selected this particular method because the Flashbox company has supplied us with over two thousand different email addresses of our relevant population. It is also inexpensive and fast for us to use. Weddings can also be a touchy subject, since it is a day that people want to be perfect, and with an email questionnaire, respondents will not be affected by interviewer bias. Even though there is a low response rate with internet based collection methods, we believe that we will overcome this with the amount of email addresses we have. Questionnaire The objective of this survey is to understand how potential brides and grooms make purchase decisions for their weddings. Your information will not be kept confidential. Please answer the following questions as accurately and honestly as possible. Your responses are very important for our study. Thank you. 1. If you were to or currently are planning a wedding, would you have a wedding planner planning your wedding arrangements? a. b. c.

Yes No Undecided

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2. If you were to or currently are planning a wedding, how much do you intend to spend on your wedding?

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a. Less than $5,000 b. $5,001 - $15,000 c. $15,001 -$25,000 d. Greater than $25,001 3. If you were to or currently are planning you wedding, which recording method would/did you choose? a. Photography b. Videography c. Both d. Neither 4. How much would you pay for photography services? a. b. c. d.

Less than $500 $501 - $1,000 $1,001 - $1,500 Greater than $1,501

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5. How much would you pay for videography services? a. Less than $500 b. $501 - $1,000 c. $1,001 - $1,500 d. Greater than $1,501 6. If there was a new recording device that allowed for photos, video, and personal video messages to be compiled onto a DVD, would you consider this as an option? If yes, how much would you pay? a. Yes $__________ b. No c. Undecided 7. Have you ever heard of Shutterbox? If yes, how did you hear of it? a. Yes _____________________________ b. No 8. Have you ever heard of Flashbox? If yes, how did you hear of it? a. b.

Yes _____________________________ No

9. If you were interested in learning more about what Flashbox is, where would you look for more information? a. Bridal Shows b. Bridal Magazines c. Wedding Planners d. The Internet e. TV ads/Wedding TV Shows f. Other _________________________________________ 10. The Flashbox, a compact and portable video kiosk, allows guests to leave you video messages whenever they're ready to "let loose" in front of the camera, which creates and captures memories you wouldn't have otherwise had… What is our initial understanding of this product? Don’t Understand1

2

3

4

5

6

7

Understand

a. b. c. d.

Use the internet Ask the bride or groom Ask the person giving the demonstration Ask a wedding planner

12. If you heard about Flashbox and wanted to find more information on the internet, where would you search to find it? List the keywords that you would use? a. b.

Google _____________________ Yahoo _____________________

Positioning Flashbox | 4/20/2009

11. If you were to see a live demonstration (at a bridal show or someone’s wedding) of Flashbox, how would find out more information about Flashbox?

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13. Which website would appear to be the most resourceful when looking for information? a. www.theflashbox.com

b. www.flashboxmedia.net

14. Please answer the following Male ____ Female____ Married _____ Single_____ Divorced______ Live within 60 miles of Pittsburgh? YES or

Age: 18-23 ____ 24-29 ____ NO

30-35 ____ 36-40 ____

Sampling Plan

The target population for the Flashbox questionnaire issued included the young married, engaged, and singles who are in a serious relationship and considering marriage. This population was chosen because the individuals are amid wedding preparations or were planning a wedding recently. Even those who are single, but are in a serious relationship, would be considering wedding preparations (mainly the females). The sampling frame included all of the people that our group members knew within our

Positioning Flashbox | 4/20/2009

target population. This could include friends at college, friends from high school, and various

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other people known. This sampling frame was chosen because it contained enough subjects to draw a representative population from. The non-probability sampling technique, judgment, was used. Our group members chose people who we personally felt fit the target population for our questionnaire. This technique was chosen because it would produce results that were relevant to the purpose of our survey. Had more random individuals been chosen to fill out the survey, they may not have had answers or

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opinions on many of the questions regarding wedding preparations if they were not familiar with wedding preparations. Due to the use of the judgment technique, we were able to weed out individuals who would have possibly skewed our survey results by either not having answers or by making up answers. We used a sample size of 30 individuals. These individuals answered a questionnaire in various forms, including through e-mail solicitation and paper copies. Our data was gathered in ways that were convenient to the individuals we were trying to reach. Data Analysis The three data analysis methods that we used were, z tests for proportions, a z test for the mean (H 3.3) and two frequency tests in order to narrow down the filter questions for hypothesis 1.2 and 1.3. A table of all the questions that were used to answer each hypothesis can be found in the appendix, along with all of the testing for each one. For hypothesis 1.1, a z test of proportion was used in order to determine the number of brides that chose videography. A z test of proportion was also used in the beginning of answering H1.2. We determined the proportion of brides that had top tier weddings (a price range of $15,001 or more), and then used frequency to determine how many of those top tier brides chose both videography and photography for their wedding. We did the exact same thing as H1.2 for H1.3, where we determined the proportion of brides who said yes to hire a wedding planner. We then used frequency to determine how many brides that had a wedding planner, chose both videography and photography. For H 1.4, a z test of proportion was used in order to determine the number of people who spend greater than $15,000 on a

to pay the price equivalent to Flashbox. For all the hypotheses under research problem number two, z test of proportions were used. For H 2.1, we figured out the proportion of brides that would use Google in order to find out more information on Flashbox. In H2.2, we determined the proportion of brides who said no to ever hearing about Flashbox in advertising or media. In H2.3, the proportion of brides who said yes to ever hearing about Flashbox from attending a bridal show was calculated. Finally, in H2.4, the z test was used to

Positioning Flashbox | 4/20/2009

wedding. H 1.5 also used the same test in order to determine the number of people who would be willing

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discover the proportion of brides who said yes to being interested in a bundle package that allowed for photos, videos, and personal video messages to be compiled onto a DVD. In H3.1, a z test of proportion was used to find out how many people would chose a live demonstration in order to discover more about Flashbox. In order to analyze the data for H 3.2, we needed to use a filter question to determine the proportion of brides who lived in Pittsburgh. We then used these 22 brides and calculated the proportion of how many of them knew nothing about Flashbox. For H 3.4, our final one, we used a z test of the mean in order to calculate if brides were informed about Flashbox after hearing a brief description on it. We had a ranking system from one to seven (1 being do not understand, and 7 being understand) and used 5 as the standard for understanding. Overall, the z test for proportions was used the most, but the frequency and z test for means had a part in analyzing our data as well. In the Appendix, you can see all of the work from the excel spreadsheets. Results We used our questionnaire as the source of our statistical research. While some questions acted as filters and fillers, most of the questionnaire was used to answer our original hypotheses to our decision problems. Please see appendix for details. The first decision problem, in summary, was “Should the product be targeted to brides? “With wedding planners?” “In what budget range?” The first hypothesis (H1.1) was that a large percentage of brides choose videography. After finding the proportion and performing a z-test, we found that 0% of brides chose videography, 43% chose photography, while 57% chose both. H1.2 was stated that brides of

Positioning Flashbox | 4/20/2009

the upper tier wedding market choose both videography and photography and we found this hypothesis to

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be supported 100% of the time. In H1.3, we thought brides with wedding planners choose both videography and photography and after filtering out the responses of brides with wedding planners, we found that 100% of them choose videography and photography. Also, price was an important factor in the product’s success so we dissected this issue in H1.4 and 1.5. In H1.4, we thought brides spend greater than $15,000 on a wedding, yet we did not find statistical support for this hypothesis. Only 47% of those surveyed said they would spend greater than $15,000 on their wedding.

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H1.4:

H1.5:

H0 HA People who spend

π ≤ 0.5 π > 0.5 12

People who spend $15,001-25,000 Total people > $15,000 >$25,000 $15,001-$25,000 Prop. of people spend > Standard Error $15,000 z z-critical Conclusion: Do not

2 14 0.466667 0.091287 -0.36515 1.645

H0 HA People willing spend Proportion Flashbox eqiv Standard Error z$15,001-$25,000 z-critical Conclusion: Do not

π ≤ 0.5 π > 0.5 1 0.033333 0.091287 -5.11207 1.645

reject null. reject null. In H1.5, we believed that the price of Flashbox exceeds the acceptable price range that a bride would be willing to pay for videography services. Indeed we found this hypothesis to be supported by our research, only 3.33% of those surveyed would pay the equivalent price of Flashbox for videography services. Our second decision problem asked, “What for of advertising best suits the product?” We hypothesized in H2.1 that people will use Google to locate Flashbox information through an Internet search engine. We found this hypothesis to be supported when the proportion of survey participants chose Google 100% of the time as the Internet search engine to use. We believed in H2.2 that people have not been exposed to effective print, TV, or other types of media ads on Flashbox. We found statistical support for this hypothesis as 100% of the proportion of those surveyed had not seen these types of ads. In H2.3 we thought bridal shows are the best way to reach targeted customers, there is not

felt a bundle package including Flashbox services, photography, and videography on a DVD is appealing to brides. We discovered that a proportion of 57% of those surveyed said they would like this option. In decision problem three we wanted to know “how can the market become better educated about the product?” We hypothesized in H3.1 that direct sales, of Flashbox, are the most effective way to reach out to brides. There is support for this hypothesis due to a proportion of 53% of respondents stating that they would be most likely to inquire further after seeing a live demonstration of the product. In H3.2 we

Positioning Flashbox | 4/20/2009

statistical support for H2.3 because only a proportion of 3.33% have attended a bridal show. In H2.4 we

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believe that most of Pittsburgh knows very little about Flashbox. We found support for this hypothesis because after filtering those that live in the Pittsburgh area, a proportion of 97% have NEVER heard of Flashbox. Lastly, in H3.3 we believed that brides are more informed about Flashbox after hearing a brief description of it. Happily, we found there is statistical support for this hypothesis. After ranking their understanding from 1-7, the mean was discovered to be 5.42. Limitations

Although we put forth a concerted, thorough effort in distributing and administering our questionnaires to collect sample information, we did encounter a few limitations, as is an issue with any research which could have skewed the data results. Time proved a major obstacle, as we did not have enough time to properly utilize important available resources for gathering data. For instance, the proprietors of Flashbox provided us with a list of e-mail addresses of recently married or soon-to-be married individuals who had already been exposed to a Flashbox demonstration, understood it, and expressed interest in the product. To use this information effectively, we would have needed at least two weeks, if not longer, to get a sufficient number of responses to fill our sample. However, with only one week on hand, we could not do this. In order to combat this time limitation, we utilized a judgment sampling technique, meaning we looked to friends and acquaintances who we felt were soon to marry or had recently married to answer our questionnaire and be a part of our sample. This is a limitation because it is

Positioning Flashbox | 4/20/2009

based on the judgment that they belong to our target consumers; if they in fact do not, then their

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responses are not as pertinent and cannot be relied upon as much. Also, because the respondents were people we know, our data may also be skewed by them answering more positively to accommodate what they thought we were looking for.

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Conclusions and Recommendations Based on the results from our survey, our team has made the following conclusions and recommendation for Flashbox Media LLC to take into consideration in moving forward with their business: If forced to choose, brides prefer photography over videography Our team was surprised to learn that brides do, in fact, prefer photography over videography. Therefore, the Flashbox company needs to create a service that is able to compete with photographers, or provide an added incentive for ordering the $400 photo upgrade. Our recommendation to make this offer more attractive is for the bride and groom’s photographer offer them a small discount on their photography package if they do the photo upgrade on their Flashbox video. The Flashbox company will then give the photographer a percentage of the $400 upgrade. Upper-tier weddings will spend money on both photography and videography services It’s no surprise that the more money that is available, the more that you are willing to spend on extra services. Given this conclusion, we recommend that the Flashbox team does market research on upper-tier weddings in the Pittsburgh area alone, so that they can find better methodologies to advertise to this niche group. Price of the Flashbox is a huge factor, less than 4% would spend the Flashbox price on

A surprising number of people think that the Flashbox is over-priced. Therefore, we recommend that the Flashbox company create a number of packages that are available. For example, the current price is $1500 for a 5-hour long service. What they could do is charge on an hourly-basis to make the offer more flexible and attractive.

Positioning Flashbox | 4/20/2009

videography services

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A bundle package of Flashbox & regular videography is an attractive feature for brides Currently, the Flashbox team does offer a videography service where they will film the wedding ceremony and the first hour of the wedding reception for $600. Whenever they are at bridal shows, however, they do not advertise this service. We recommend that they make this bundle package a well-known offer, because today’s bride values being able to hire one company that will perform a number of services. Direct sales, (i.e. bridal shows) are the most effective way to communicate the Flashbox concept One of our teammates has done both direct sales for the Flashbox at bridal shows as well as online marketing for the company. Between that knowledge, our focus group and survey results, we’ve concluded that direct sales are the most effective way to communicate the Flashbox concept. Therefore, the company should not waste their money on advertising via radio, TV or print. The best way for the company to communicate it’s product to the market is

Positioning Flashbox | 4/20/2009

for potential consumers to be right in front of it so that they can see and use the Flashbox.

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Question

Decision Problem

Research Problem

Hypothesis

1 (filter question)

1

1.1, 1.2, 1.4

1.3

2 (filter question)

1

1.4

1.2, 1.5

3

1

1.1, 1.2, 1.3

1.1, 1.2, 1.3

4 (filler question)

1

1.2, 1.3, 1.4

5

1

1.2, 1.3, 1.4

1.5

6

1, 2

1.1, 1.2, 1.3, 1.4, 2.3

2.4

7

2, 3

2.3, 2.4, 3.2

3.2

8

2, 3

2.3, 3.2

2.3

9

2

2.3, 2.4

2.2

10

2, 3

2.3

2.1

11

2, 3

3.1

3.1

12

2

2.2, 2.3, 2.4

3.3

13

2

2.1, 2.2

2.1

14 (filler

2

2.2

question) 15

Demographic Questions

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Appendix 1-Decision Problems, Research Problems & Hypotheses

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Appendix 2-Focus Group Discussion Guide Thank for participating in this discussion about your wedding in order to gain insights as to what new products should consider entering the wedding industry. Please feel free to answer truthfully and engage in discussion with fellow group members. Warm Up Questions: 1.) 2.) 3.) 4.)

Are you engaged, or planning on getting married in the near future? Do you plan on having a large or small wedding? Why? What are your top priorities when planning your wedding? What types of media do you plan to have to capture your wedding memories? a. Do you plan on having a videographer and/or a photographer? b. How much of your budget do you plan to spend on videography/photography? c. How often do you think you will view your wedding memories? 5.) Do you plan to set up anything else to capture memories? a. Cameras on tables? b. Guestbook? 6.) When planning your wedding, how will you book major purchases? a. What part will bridal shows play? b. Searching the Internet/ magazines? c. Word of mouth recommendations? Flashbox Specific Questions: 7.) How interested are you in having something unique and different at your wedding? a. Anything that you have seen at other weddings that you would consider?

Positioning Flashbox | 4/20/2009

**Show 2 Websites. One of Flashbox and one of ShutterBooth (main competitor)**

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8.) Please explain to me what each one does. 9.) What did you like and dislike about each site? 10.) If you had to pick one of the products to have at your wedding, which would you choose? Regardless of price 11.) If you discovered a product online, would you inquire about it if the price was not listed? Or just move on? 12.) Looking at the finished product for Flashbox, how much would you be willing to pay? 13.) How important is sticking to a budget when planning your wedding? 14.) Would Flashbox be considered under your videography expense? a. Or under “Extras?� 15.) Knowing the guests that would attend your wedding, would they enjoy using it? 16.) Would you consider Flashbox if it was in a bundle package with videographer and photographer? a. Where Flashbox was under $500? b. Where Flashbox was included as a bonus with the bundle? Thank you again for participating in this discussion group. Your thoughts and views will serve as great insights for the Flashbox company.

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Market Research Paper