Report+by+(Alan+Andrew)

Report on Declining Market Share in Year 2009/10 1. Introduction In recent years, the competition in MP3 market is becoming increasingly fierce. In the light of the decreasing market share of our company, it seems crucial and urgent for us to improve our product quality and change our marketing strategy in order to catch up with our main co mpetitio r, iGADGET. To understand our company's status in the market, we have looked into our customer satisfaction and our share in the MP3 market.

As requested by Marketing Manager, Gary Connick, this report first presents the comparison of H&F MP3 and iGADGET MP3 with respect to customer satisfaction and market share. After that, a conclusion is driven and recommendations provided at the end.

2. Procedure The findings for this analysis are based on a recent market research conducted by M&D Market Research Company. A survey, with a sample size of 200 people, was carried out in August 2010 to understand the customer satisfaction rate of M&F MP3 and iGADGET MP3. Data concerning the market shares of H&F and iGADGAT in operating year 2009/10 were provided by the research company.

3. Findings Table 1 shows 6 aspects of customer satisfaction towards H&F MP3 and iGADGAT MP3. Out of the 6 aspects, 3 are a cause for concern and will be discussed in details below. In addition, Table 2 shows the maket share of H&F and iGADGAT in fiscal year 2009/11. The declining market share will also be analysed.

3.1 Design The findings indicate that while over four-fifths of users were satisfied with the design of iGADGAT MP3, under half of H&F MP3 users were contented about the product design. This is probably due to the lack of experience in MP3 design because our company has been in this market for just 3 years. (more detail needed)

3.2 Functioning Less than two-fifths of our customers were happy with the functioning of our MP3. In contrast, nearly two thirds of users expressed satisfaction to with that of iGADGAT MP3. This might partly be because many people tend to buy an iPhone4 or an Android mobile phones which contain the functions of a music player. Besides, the transfer of music files onto iGADGAT MP3 is much more convenient than our MP3 because our MP3 requires a unique software. This means that more consumers will tend to use smart phones as an MP3.

3.3 Headphone quality The figures show that over two-thirds of our customers were disgruntled about the headphone quality. Similarly, about three-fifths users were dissatisfied with iGADGAT MP3. A possible explanation for this is that our products are manufactured in Malaysia and the quality control over headphone is not sat isfato ry. Some more detail

3.4 Declining market share Table 2 clearly indicat es that iGADGAT MP3 is becoming increasingly popular with consumers and its market share is almost two- thirs of the whole MP3 market. However, our company's market share is de clin g gradually from 23% in Sep 2009 to 13% in Aug 2010. This might be because that the celebrity spokesperson of our MP3, Felic Chan, is not very popular with younger consumers nowadays.

4. Conclusion Overall, it is obvious that MP3 users are more satisfied with iGADGAT MP3 than our MP3. This is mainly because the design and functioning of our product are less competitive than our component. (headphone and spokesman?)

5. Recommendations 5.1 Design In the light the low satisfaction to our MP3 design, I suggest that our company spend more on design in order to meet the needs of young consumers .(more detail needed)

5.2 Functioning Given that the functioning of our MP3 is u nsatisfato ry, we would had better upgrade the system of our MP3 to allow users to transfer music files through drag-and-drop. Furthermore, since the functions of MP3 are very limited, it is highly recommen ded that we add more functions to our MP3, such as Game Funtion and Video Recording Function.

5.3 Headphone quality In view of the fact that users complain mainly for the headphone quality, it is recommended that we make use of 6-Sigma Control System to improve the general quality.

Celebrity spokesman?

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