Sunday, March 31, 2019
Marketing Analysis of Dexit Inc
Marketing Analysis of Dexit IncCase Analysis Report Dexit psychiatric hospital to Dexit Inc.In 2001 a privately held firm known as Dexit Inc. (the debit Express confederation) was formed by Renah Persofsky, a former member of the kindlet of Montreals e-commerce subsidiary had left to pursue opportunities to a abundanter extent aggressively. The companys cultivation was to provide customers with a spick-and-span convenient and easy to theatrical role electronic stipend system that would provide an alternative option to specie for low- rate crafts. Dexit Inc. had expected that this electronic payment profit to be lend iodinselfd for a venial transaction averaging a equal of approximately of $4, however in entree there was a belief that this service could possibly be manipulationd for purchases potentially as large as $25. The design of Dexits service would rent customers to pay for goods and services by waving an electronic tag near a specialized reader that would be situated at a retail counter that would communicate in a secure manner with Dexits central payment clearing system. This demonstrate would on average be completed in less than tether seconds which would generate betting no- hassle payments that could also be tracked en adapted routiners to monitor their low- comfort purchases. This system which has been extensively well-tried and deemed to be highly true would be based on Radio Frequency Identification (RFID) engineering science. With this engineering science a secure personal identification human body in the customers tag would be read wirelessly by the merchandisers stipulationinal.Problem IdentificationFlashing forward to today, Renah Persofsky (CEO) is facing critical decisions regarding the introduction of Dexit Inc.s electronic payment system. Currently Dexit has casted two of Canadas largest banks as early stage investors and as well Telus Mobility, the wireless subsidiary of the dry lands second largest te lecommunications firm. All triple entities squander expressed evidentiary enthusiasm for Dexits wireless payment service however distributively wanted to cope with a firm grocery storeing protrude forbidden front commitment of further resources to Dexit. The key decisions that CEO Renah Persofsky faced in nightspot to push ahead with the project had includedDeciding which merchants and consumers Dexits service would tar occupy which wouldshape the other scenes of the marketing plan.Determining whether any additions or changes ingested to be make to the reaping itself.Establishing the pricing strategy that Dexit would utensil which would carry intoaccount the value of the service to merchants and consumers and their bequeathingness to pay.Create a promotional plan to r from each one each target audience and decide amongst a Toronto- unaccompanied launch, regional launch, or national launch in major(ip) Canadian cities.SWOT AnalysisStrengthsDexit has major companies l ike two of Canadas largest banks and Telus Mobility supporting them which gives them huge atomic number 18a to explore. The mod system is much more than effective than the previous ones launched in the market because it provides an efficient way to ratify retail transactions. The transactions atomic number 18 very secure and takes just three seconds for transactions to work due to Radio Frequency Identification (RDIF) technology.The company is targeting retail businesses characterized by high-frequency and low-value transactions by providing them with system which provides ease, speed and security. They be also targeting consumers who set up lots of dwarfish transactions. They ar providing customers with username and password so they heap access their own account and keep track of their transactions. As for merchants they entrust be able to register for an account by providing introductory information near financial institution to settle payments which will be executed on a daily basis by transferring currency electronically to the merchants bank. And for retailers they advanceed quick payment than cash, credits or debit.WeaknessThe score of the product outside the firm has been un productive due to merchants regarding the payment process costly and inconvenient since they had to operate two separate terminals a traditional swipe reader for customer who utilise debit transaction and second to read the cards computer chip for stored value transactions. Also, with major company backing the company it is crucial for Dexit to provide them with positive degree result.OpportunitiesDexit has probability to establish itself in the largest market for digital transactions. It also has a chance to explore the global market as their long term plan which will help them to expand their market and develop sustained competitive advantages. It will also help Dexit to bring in new ideas, expand their horizons and strengthen their market value.ThreatsSince it is non easy to replicate the domestic help market success globally it might not adopt to very(prenominal) positive results. Other companies can also considerably attain the technology which could increase the risk of losing customers to the rivals. There are many other companies that allow customers to make electronic payments. Those companies give tease instead of key tags which manner that customers will most probably stick to using cards since they are used to it. Also Dexit has just entered the market so it will take a while for the company to get customers. The company will have a hard succession dealing with its competitors.Segmentation, Targeting and PositioningDexit Inc. are providing consumers an easier and faster methods of making their everyday transactions. The target for Dexit Inc. can be divided into the consumers and the merchants. Merchants can save a lot of period servicing a customer at a busy store and consumers could save a great amount of time avoi ding line-up on their way to something important. ships like gas post and fast food restaurants usually with a heavy customer traffic are potential merchant groups. Key tags will not whole reduce the time it takes to processed with a transaction but will also reduce the amount of theft from the cash register since everything would be done by electronic money. This will enable them to take more customer by avoiding walkaways. Merchants such as Esso, Tim Hortons, Mcdonalds are possible businesses that would gain having Dexit knows at their locations. Dexits consumer market can be segmented by their work and lifestyle and attitudes. A consumers perception towards a fast food restaurants is to attain a quick service, even when it comes to making the payment for their purchase. Customers that usually rush to Tim Hortons are eager to both get to work or to an educational institute. The target market would vary from raw adult to early 50s would are either employed or enrolled at an educational institute. According to Employment and Social Development Canada almost 81.6 pct canadian from ages 25 to 44 are employed and about 71.3 portion canadians from ages 45 to 65 are employed. These employed canadian are forever in a hurry to get to work on time and rushing back home to avoid traffic. OCUL on their website states about 458,251 schoolchild across Ontario alone on their updated statistics August 2014. Dixits main focus should be towards targeting Canadian student and employed customers who use electronic payment methods to make their everyday purchases smoother and quicker. Imagine not requiring to take out your notecase and be able to make a payment through a key holder that is attached to you car keys, or world able to tell how much of you money was spend on everyday small expenses such as gas, cof tumble or morning breakfast. In Canada, the market size has been estimated to be about 536 billion bucks in the payment industry, with about 4.1 billion tr ansactions made through debit and credit cards. These cards often get lost or stolen without consumers attention and are also misused by frauds that can cost consumes a great amount of money. Key tags on the other hand are quite an secure since their have less chances of getting lost and consumers can easily notice if key tag is lost. Consumers would be feel more prophylactic and secured to make smaller everyday transaction.Product StrategyThe core improvement in using Dexits payment system is to make is easier for consumers and merchant to make small amount purchases more efficiently. Small Purchases ranging from a dollar to about 25 dollars. This for everyday consumer would speed-up their ordering time and for merchants would speed-up the selling process. The product would also help consumer keep track of their small purchases with security. Key twine fob with the RFID technology is a very good payment system. Consumers would find it easier and more convenient to use key strin g to make their small purchases. Consumers and merchants save time and also the risk of losing money. Consumer will no longer need to hassle about giving exact change or worry about losing pocket change on their way to a nearby store.Place StrategySince Dexits key tag is a brand new idea in the market, it would be better if the product is first tested out in a smaller market. Having Dexit Inc. evoke their product nationally would be costly and very risk. If product not successful it could cost Dexit a huge amount on loses. To ensure the product is successful it would be beneficial is the company decided to introduce the product only in Ontario first. Dexit should focus on sucking market share in Ontario, since it already has a bigger population than other provinces. In 2001, the amount of interac learn payments equaled to about 755 million traction only in Ontario. There are about 6,551,298 interac direct users with about 116,241 merchants that also use interac. Currently in on tario the unemployment rate is about 6.9 percent, which is quite low. Student in Ontario have a quite large population.Price StrategyDexit Inc. requires to strategize the price they would charge the consumers and their merchants. in effect equilibrise payments between consumers and merchants will lead to adoption by both and prevent them from stick outking alternatives. To do this it is important to not charge either side in a way that they will perceive as detrimental.Consumers will not be supercharged direct for registering or to use up the RFID tag. This avoids creating an initial investment barrier between consumers and their service. Consumers wont need to invest to try out Dexit. Instead they will be charged a small fee for each transaction. They will be attracted to use Dexit because of its thingamajig and time-saving capabilities. They wont mind stipendiary the small transaction based fee. Instead they will focus on the opportunity to use a new, innovative, time savin g technology.Merchants wont be charged a transaction based fee. This will encourage them to promote Dexit to customers using payment methods that do charge a transaction fee like debit or credit. This is one of the ways Dexit will use a push strategy. Instead they will be charged an upfront cost to have the reader installed in their store. Merchants are more plausibly to be ok with an upfront cost, seeing it as an investment to attract customers that use Dexit and a competitive advantage in terms of convenience. Customers who value their time and prefer convenience will choose locations that have Dexit readers installed. This is one of the ways Dexit will employ a pull Strategy.By balancing the costs between merchants and consumers Dexit can encourage adoption among both groups. By receiving short term payments from merchants and long term payments from consumers Dexit can smooth out their revenue, allowing them to better plan for future expansions and investments.Promotion Strateg yThe main goal of Persofskys promotional strategy was to reach her chosen target markets. This could be determined by either a straighten up or compact strategy. With a Push strategy, merchants are given incentives to promote the Dexit service. With a Pull strategy, a buzz is created around the product and helps increase the demand from consumers. A Pull strategy would work well for Dexit, based on the item it is a product of major convenience, one that could catch on in the marketplace when promoted properly. When buzz is created around a product that can offer consumers something quick and tangible, it has a habit of catching on and allowing other consumers to see the benefits for themselves.With minimal cash flow, Dexit is forced to get creative with the promotional aspect of the product and company. Traditional advertising can be considered, along with gross revenue promotions and direct marketing. Traditional advertising is effective because it can be used on so many differe nt channels, such as radio, newspapers, magazines and television. By using traditional advertising, Dexit can reach a large number of consumers through the wide variety of channels.Final recommendationWith Dexit being a new product, and this cause of technology being new to consumers, it will be important to generate a high volume of sales in the early stages. This will require Dexit to penetrate the marketplace with low initial prices to gain as much traction as possible. The most glib revenue model it to charge consumers a small percentage to use Dexit services. The consumers will most likely use Dexit due to its convenience and time-saving capabilities. Consumers will sacrifice the small percentage they will be paying for each transaction to save time at the checkout.In addition merchants can be charged when they purchase the Dexit POS terminals, this will create plain revenue for the company. Merchants will be likely to purchase the terminals because they want to attract cons umers who are using Dexit, in hopes of having them enter their store instead of passing play to a competitors location. It will be important to try and sell the terminals to chain stores, who will place the Dexit terminal in all of their stores, and also receive a discounted price for bulk orders.Consumers should be able to receive the RFID tags for free, this will give the consumer a sense of nostalgia with the product and be more likely to keep it and attach it to a key-chain or store it in their wallet. If the consumers have to pay for the tag and then pay a charge each time they use it, they may feel like they are being taken advantage of and decide to use traditional forms of paying. Many consumers are very price sensitive and the additional tag charge may be ll it takes for them to stay away from Dexit.ContingenciesWith any type of business plan it is important to plan for unexpected events or sudden changes in the marketplace. These contingencies can stem from any part of t he company or product that is being launched into the market and how they will change the original marketing plan that was genuine before the launch.In the case of Dexit, there are many different contingencies that should be thought out and planned before launch.Firstly, a contingency should be developed in the case that the equipment or software that is used in the Dexit tag is faulty or has some issues. This is a common type of problem with any product that involves technology as there is no way to guarantee with 100% certainty that the product will not falter.Secondly, a contingency should be developed in case the consumers do not catch on to the Dexit product and sales are fall back form initial estimates. This may include switching up the promotional strategy or targeting a different consumer group than originally thought. It will only take a short time period to see whether or not consumers are beginning to use Dexit or not and at that point a decision will be made to stay t he course or switch up the marketing plan.