Reference no: EM132232364

MARKETING A high-end portable music players with a new download service needs some help in anticipating potential consumer reactions , how can the new product be introduced to the market? will the consumers give it a warm reception? and why? Need to estimate the market size, potential market size/demand for the product (suggest estimation process) How will the firm be adopted over time (predict the adoption for the first five years of sales) Advise the firm on the issues/ concerns that they might encounter in the future. US MP3 Player sales = 18 Million units • Results of a Forrester Group survey asking people, “How interested would you be in a super high-quality music service which is significantly better than exiting options like iTunes and Spotify?” indicated the following levels of interest: definitely purchase = 30%, probably purchase = 20%, not sure = 30%, probably not purchase = 10%, definitely not purchase = 10% o In this same study a Conjoint Analysis indicated the following likely choice/preference shares of various brands of super high-quality music: Pono 20%, Spotify 15%, iTunes/Apple 40%, and Tidal 25%. • Accenture published the following sample product launch statistics (based on Bass model): New Product Category p (Coefficient of Innovation) q (Coefficient of imitation) M (Market Potential) Artificial insemination 0.014 0.437 6,000,000 ATM machines 0.0081 0.197 2,200,000 Cassette deck 0.01253 0.2272 8,000,000 CD player 0.02836 0.368 20,000,000 Coffee maker ADC (Automatic Drip Coffee) 0.077 1.106 44,000,000 Phone banking 0.0143 0.88378 8,000,000 Recording media (e.g., records, cassette tapes, CDs) 0.00874 0.32847 50,000,000+ • Note that according to the Bass Diffusion Model: No. of New Adopters at any given time t = {m x p} + {(q – p) x (Nt-1)} – {(q/m) x (Nt-1)2}