To: Senior Management of Mail Point GmbH From: Raye Kimberlin Date: July 24, 2011 Re: Babyphone App launch in China As you know, the BabyPhone App has been endorsed by many around the world as a great alternative to baby monitors, leading to millions of downloads. With this success in the U.S. and Europe, this app is now scheduled to be introduced in China later this year. China has an estimated population of 1,341,000,000 (NBSC, 2011) (see Appendix Table 1). According to Reuters, cell phone use has skyrocketed with a 67% penetration of the market in China with over 906 million subscribers (Lo, 2011). Entering this new international market at this time is ideal with the rate of smartphone purchases climbing, likewise application downloads in China are expected to increase as well (The Economic Times, 2011). Nielsen also confirms that China is downloading more apps than the U.S. on a monthly basis (Nielsen, 2010). This memo is an overview of our recommendations for this launch of our BabyPhone App including a review of the target market, the product positioning, and the marketing strategy. The Target Market In selecting the target market, the demographics, geographic analysis and psychographic characteristics were researched. In addition, the U.S. consumer market was examined and compared to the Chinese consumer market. Upon reviewing census information and mobile usage data, it was determined that our target market will be men and women 18 to 44 of child bearing age in China (see Appendix Table 2). Both men and women are now active consumers and are exercising their buying power. Women have stepped out of the traditional roles and are becoming decision makers for consumer goods and services. In reference to geographic strategy, we will target the largest metropolitan areas in China including Shanghai, Beijing, Hangzhou, Chengdu, Dalian, Qingdao, Wenzhou, Chongqing, Zhengzhou, and Shenzhen. It is also noted that these 10 areas have the highest levels of spending on luxury products which include technology such as iPhones and smartphones (Red Luxury, 2011). The typical smartphone users in China are affluent professionals, middle class families, and young adults. They view technology as a necessity and embrace new trends. These are the users that are most likely to purchase our product. When comparing customer segments, similarities in the U.S. and in China are that iPhones and smartphones are used by more men than women (see Appendix Table 3). However in the U.S., women are the primary decision maker for cell phone service and products in the household (Holson, 2008). In China, men are the head of household Kimberlin, R., Assignment 4:1, July 24, 2011
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