N4 Entrepreneurship & Business Management 3.2.6 Introducing a new product or service to an existing market


The assets of every business are its customers. Existing customers know and trust the business sufficiently well to do business. So much so, they may give serious consideration to buying a new product or service from the business. However, if you are a new business and want to introduce a new product to an existing market then you have a challenge on your hands. This is especially true if the customers are happy both with the existing product and the business providing it. The new business will have to design a very distinctive marketing strategy to set both the company and the products apart from the rest. Possible strategies are: • Customise or adjust the product • Appeal to a specific target market • Change the attitudes of customers (environments) • Price the new product differently, which does not necessarily mean cheaper • Package it in a way that makes it more appealing


CASE STUDY


Until a few years ago, MTN and Vodacom were the only cell phone providers in South Africa. The technology was new and both companies offered very similar products. The news that a third cell phone provider was entering the South African market was received with some scepticism. Will they be able to introduce their product into an existing market? Their advertising slogan or pay-off line “Cell C for yourself ” clearly targeted the individual and tried to make you feel special. Read the article below and discuss the questions that follow in your group.


Cell C wins award for Joburg city art By Lucille Davie


CELLPHONE operator Cell C has won an international award for its innovative “For the city” art advertising campaign in downtown Johannesburg. The award, given by international media monitor group Mediaedge:cia, is entitled the Global Idea Award. Over 70 entries were received from around the world. The competition was launched with the aim of recognising the best media campaigns worldwide.


“We’re extremely proud of this body of work, it’s a world-class effort, we’re very, very proud to have won,” says Moira Sheridan, Media and Public Relations Manager at Cell C. The campaign was designed to help revitalise the inner city.


Questions 1. Compile a list of at least three different Cell C advertisements that your group members are aware of. Exclude the examples in the case study.


2. What strategy or strategies did Cell C use and are they still using to enter the market and to grow its market share?


3. Ask each member of the group what image or emotion they think of first for each of the four cell phone providers. • MTN • Vodacom • Virgin • Cell C


4. Is your group in agreement with the answers above? What lesson can be learned from these answers?


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