BMGT1000 Customer Insight and Marketing Assignment Sample
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Executive Summary
The primary aim of this paper is to analyse the UK market in context to its market share, volume, competitiveness related to drone sector. In respect to this, it is identified that UK occupied 87% drone product demand as this technology in multiple areas like delivering product, record incident and military safety concern. Moreover, the social and technological factors also give opportunity to Kickstarters.com to successfully implement the spry drone into the UK market. But the critical legal factor also provides threat to firm sustainability in UK region.
Furthermore, the research study revealed that local consumer set positive perception about the drone so it becomes easy for business to sustain for longer duration. This study will help the firms to get the detail understanding about the UK market and factors which could affect the drone sector in country.
Market Review
UK market drone share, volume, growth, value
Drone market share in UK tend to be increasing as every sector demands for drone facilities in regards to supply and distribution. However, the Mintel research reveals that almost 87% British firm use the drones for product delivery (Mintel Blog., 2019). Likewise, retail stores incorporate drone facilities in order to collect the product from drone and delivery to final customer.
Moreover, Mintel estimates that the value of collection orders in UK reached £9.5 billion in 2016 with accounts for 18.5% of all online sales and the market in current year estimates to reach £11.8 billion.
Milton study also revealed that the volume of drone in UK is not only stick to delivery process but it also consider as a cool gadget for leisure activities, more and more governments use this technology for surveillance, rescue and medical purposes (Clarke, 2014). This helps the firms to bring quick services to customers. The increasing volume of drone also assist the healthcare sector to a large extent as this system allows to timely delivery of medicine to the needy one. So this way the healthcare sector gets improvement.
Chinese market is the one which is the initial user of drone technology and it gain enough growth with this system. In a similar manner, there is potential growth lies for drone in current or future market.
On the basis of this figure, it is estimated that consumer Drone shipment is increasing since 2014 and it continue till future equally. So, this growing trend shows that drone technology will have high demand in future scenario (Giones and Brem, 2017). It will be better opportunities for the intelligences firm to tap the UK market in a best possible manner.
Understanding of Current State of Market
In context to the flying high project, the UK drone industry registered that there are growing current state which include researching, developing or offering drone-related products and services. Along, the UK research institutes and bodies also work in the bringing of innovation in drone facilities (Kindervater, 2016). However, it is found that most drone firm are homegrown firm in which some operate from UK or majorly consist of headquarters outside the UK like china and USA.
In present scenario, retailers or healthcare sector are majorly focused on the drone facilities in UK to deliver the product (Jackman, 2016). The Mintel study uncovered that large and diverse drone ecosystem in UK not just work as aerial imaginary services and technology but it also serve the niche areas equally include emergency service support and number of electric vertical takeoff and landing (eVTOL) autonomous passenger vehicles.
In respect to grow more drone market, there are wide range of product and service set up to support the industry from directories of operators to training insurances and data analytics. Currently, 700 entities are segmented into five high-level categories such as technology developers, Drone-powered service providers, service provider to the drone industry, Academic and research institutes and other drone related entities. Thus, this current state of drone technology in UK give rise more opportunities to different drone firm to tap the UK market as the demand get increase in upcoming future.
Competitive nature of Market
The competitive nature of UK market is low as compare to China and USA one. This is because drone industry is evenly distributed across all parts of UK majorly at populated cities. However, technology developers appear to be more clustered as they have an office in London and South-East (Boyle, 2013). At the same time, UK consists of fifth position in drone technology and it majorly exports the drone product from the Chinese and USA market. It is found that Chinese is the bigger player of drone market as Chinese leading food delivery service already makes more than 10 million food deliveries each day (YILDIRIM, 2016). Besides that, rise of e-commerce’s market also enhances the competitiveness of drone product in china. So UK market is still uncompetitive when it comes to high existences of drone firm. So this helps Kickstartes.com to enter into the UK market with spry drone product.
However, Spry Drone product is a waterproof drone that submerges under water and flies. The purpose to build this drone is for action in harsh marine environment with specially coated motors and corrosion resistant materials throughout. This drone is also considered as first ever waterproof remote controllers which work with more efficiency in water. However, this drone consists of 4K camera which is completely enclosed in an optically-engineered polycarbonate dome to offer high transparency without distortion. Moreover, the specially designed shape of drone also proves to be USP as drone surrounding dome filters out excessive glare to balance the harsh highlight which often found in water and snow.
Perception of supply and demand
As per the Mintel, it is identified that there is high demand exist in UK market as the given graph revealed that the number of drones usage are increasing year by year. Likewise, 2014 consist of 9 drones which military air use for recorded incident. But slowly, the drone facilities are consumed for commercial purpose like for delivering of product etc. that’s why, currently drone demand is growing (Omohundro, 2014). But at the same time, the suppliers of drone are less in number due to drone development takes high cost so UK buy drone from Chinese or USA market. It results in unfulfillment of drone demand due to limited supply of product or services.
Market Analysis
This section involves the PESTEL analysis which helps to evaluate the external environment of UK so that factors are studied which can affect Kickstarter.com and their product i.e. spry drone.
| Political Factor | Political environment of UK is quite stable and this is strength of country. However, Brexit created uncertainties and political debates. This area may affect Kickstarter.com in regards to follow various rules & regulation as after Brexit UK as different laws as compare to Britain. So firm need to make varied strategies to capture whole European market.
However, government recently announced a reduction to 17% corporation tax at budget 2016. So this could help firm to pay less tax for the function of business. Thus, firm able to enter into the UK market more easily without involvement of any political inferences. |
| UK is considered as a strong GDP but after Brexit, the recession in 2008 put economy in trouble as prices of product and service raise rapidly (Song et al., 2017). This can also affect the Kickstarter.com in regards to sell the drones at high price as people of UK are quite-sensitive.
At the same time, current economic status of UK people has been improved so it can give opportunity to Kickstarter.com to influences the people standard of living in a positive manner. Thus, the economical condition of UK could support the firm to gain profit due to less competition in UK market. |
Economical Factor |
| Social Factor | UK is big consumer market and country support high population whose taste and preferences changes as per the technology (Kauškale and Geipele, 2017). This area could support the firm in regards to successfully bring spry drone which consist of unique features. So UK customer can accept it to a large extent. This makes easy to operate the business in UK market.
Similarly, the population of UK gets older as 18% people are aged which is expected to reach 74 million by 2039. This could affect the labour market and healthcare sector. This give an opportunity to Kickstarter that it can secure healthcare sector of UK through its spry drone product which allows to meeting quick medicine supply services. |
| UK is one of the most advanced technological countries in across the globe as London is the big hub for both financial and technological institutions. So this could support Kickstarters to bring new variations in drone system with support of advance technologies. Moreover, technological sector of UK is that strong which attracts skilled workforces into their country. This area also assists the firm to procure the skilled or qualified staff to maintain the business goodwill in UK market (Derbyshire and Wright, 2017). However, UK is failing behind the USA, South Korea, Japan and some other countries. So this could affect the firm in a way to smoothly perform the business operations. | Technological Factor |
| Environmental Factor
There is large impact of economic activities on environment of UK. However, UK has made significant improvements in reducing negative impact. In regards to this, local government, local councils have taken various step to implement certain laws for the firm so that negative impact can be reduced (bin Jailani and Rahim, 2014). In context to environmental factors, Kickstarters.com need to focus more on environment related factor in order to comply with the government law. So this may affect the firm in term to concentrate on multiple activities at a time. This could also incur high cost to firm. |
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| Legal Factor
The legal environment of UK is quite strict and it becomes more difficult after Brexit (Kampanje, 2014). This is because after Brexit, both Britain and UK developed their own rules and regulation. So this may confused various New Entrants in regards to adhere which one. In respect to UK legal aspect, Kickstarter.com requires to briefly following the employment act 1996 for protecting right of employees, maternity and paternity leave, minimum wage, holiday pay and sick pay are the other legal area that also needs to follow by the new once. So, with the incorporation of these laws into the business, Kickstarter can able to fulfil the legal needs and not involve in any type of unethical practices. This leaves a positive goodwill for the firm in UK market. So the implementation of legal factor can proves to be effective for the firm to successfully enter with the spry drone. |
On the basis of above PESTEL analysis, it is found that social and technological factor are the major opportunities for Kickstarters.com to come up with spry drone product in UK. This is because increasing demand of healthcare sector gives rise to the high demand of drone product. Besides that, high availability of advanced technology could help firm to successfully implement the drone into the business (Ramadan et al., 2017). Other than that, legal environment is the biggest threat for firm if they fail to adopt any law then it affects their reputation directly. So kickstarters.com should conduct intense research about UK laws before enter into the market.
Research Study Recommendation
In regards to research study, it is recommended to identify UK consumer perception regards to price and product design. The research study revealed that drone delivery consider as a contactless payment card technology which is embedded into a drone to verify the address of recipient, helps drones to deliver packages to customer addresses. In regards to this activity, the survey is conducted between UK consumers for studying their perception about the drone product. It is identified that 2 in 5 respondent (37%) show satisfaction with the services of drone due to product is delivered on time (D’Andrea, 2014). Besides that, these respondent perceives that this technology assist to reduce congestion and pollution problem. at the same time, 42% people also show their willingness to try new drone services for holding quality. But at the same time, the price of drone is another concern area as UK people perceives that drone facilities are not implemented well into UK successfully due to high in drone price. It is found that typical cost for a simple drone ranges from about $20 to $250 in USA. So in UK, it definitely grow because of low drone developer exist due to which firm buy drone through USA and china market. This cost them high and it makes people perceives the drone price is quite high.
In addition to this study, there are people who are ready to accept the drone facilities because of lack of human interaction. It gives rise to the chances of high frauds and false activities. So that’s why people tend to avoid this technology. In regards to this, it is recommended that Kickstarters.com should focus on the security area in order to achieve people trust on drone product and service.
Marketing Recommendation
Recommendations 1
- It can be recommended to Kickstarter.com that it can adopt the innovative technologies within the spry drones especially in concern of the healthcare sector and military in the UK.
- As it helps the company to make it more effective and innovative that will provides some additional efficiency in its operations so that its customers can be satisfied more in the UK. No, there is no book and journal article to support this recommendation.
- Yes, this technology improvement will be beneficial for the company to address the above threads and grab the opportunities.
- com can implement its recommendation at the time of entering in the UK market in order to capture the whole of its target market.
- In the above-defined recommendation, the client should consider the cost of the products as when the innovative technology is adopted then there are chances of increasing the cost of products.
Recommendations 2
- In addition, second recommendations are provided to the company that is foldable drones. In these are more comfortable for the company as well as the client.
- Foldable drones are recommended to the company as these are in trend in present and these are also perfect in concern of fans related to the great outdoors persons who prefer to retire into the scenery for flying their drones. No, there is no journal article to support this.
- With the help of these kinds of drones, safety and security can be increased while using the drones by the companies and the individual for their work because it is the major concern with the drones.
- This recommendation can be adopted by the company after entering into the UK’s drone industry so that it can differentiate its product at the time of increasing its customer base in the UK.
- In concern of this recommendation, the client should consider the new product’s capability so that it can be ensured that it is quite better compared to the previous product.
Recommendations 3
- Similarly, the company can also be suggested that it should undertake the special training for its clients before selling the drone to them.
- By providing training before selling out the drones to the customers, collision will be avoided that can take place by the client after purchasing drones.
- With the help of this suggestion, the company can resolve the issue of personal attachment between the customers and the company. In this, because of drones, the personal attachment has been reduced that increases the chances of a collision.
- This recommendation can be implemented by Kickstarter.com at the time of selling out the drones to the customers so that they can get the idea to use it properly.
- In concern of the above mentioned recommendation, it is essential for the clients to consider time as the special training needs extra time to be spent that is not easy for the clients.
Recommendations 4
- At the same time, it can also be advised the company that it can provide a better camera to its clients along with the innovative drones that will be offered in the UK market.
- With better camera quality, it is beneficial for the client to capture an effective and clear view of the sight.
- On the basis of this recommendation, it can be defined that by effective feature under the drone, identified issues in concern of the UK market can be resolved with efficiency (Kindervater, 2016). At the same time, with better camera quality, the issue of safety and security can also be resolved.
- After analyzing the above-mentioned recommendation, it can be declared that this recommendation should be implemented at the time of production of drones.
- In this way, there is a need for the client to consider the cost because focusing on the camera quality will increase the prices of products.
Conclusion
From the above discussion, it is concluded that UK market is the best region for Kickstarters.com to launch its spry product as there is high demand of drone products in country due to growing retailing or healthcare business. The drone product could help to successfully deliver the product to customer and record incident related to military. Besides that, drone product could also assist in regards to safety. Thus, it can be stated that Kickstarter.com can achieve better response in UK market with the launch of spry drone product.
References
bin Jailani, M.A.K. and Rahim, F.A., 2014. Assessing the situational analysis of heritage tourism industry in Melaka. Procedia-Social and Behavioral Sciences, 130, pp.28-36.
Boyle, M.J., 2013. The costs and consequences of drone warfare. International Affairs, 89(1), pp.1-29.
Clarke, R., 2014. Understanding the drone epidemic. Computer Law & Security Review, 30(3), pp.230-246.
D’Andrea, R., 2014. Guest editorial can drones deliver?. IEEE Transactions on Automation Science and Engineering, 11(3), pp.647-648.
Derbyshire, J. and Wright, G., 2017. Augmenting the intuitive logics scenario planning method for a more comprehensive analysis of causation. International Journal of Forecasting, 33(1), pp.254-266.
Giones, F. and Brem, A., 2017. From toys to tools: The co-evolution of technological and entrepreneurial developments in the drone industry. Business Horizons, 60(6), pp.875-884.
Jackman, A.H., 2016. Rhetorics of possibility and inevitability in commercial drone tradescapes. Geographica Helvetica, 71(1), pp.1-6.
Kampanje, B., 2014. PESTEL analysis of Malawi’s non-life insurance industry. African Journal of Economic and Management Studies, 5(1).
Kauškale, L. and Geipele, I., 2017. Integrated approach of real estate market analysis in sustainable development context for decision making. Procedia Engineering, 172, pp.505-512.
Kindervater, K.H., 2016. The emergence of lethal surveillance: Watching and killing in the history of drone technology. Security Dialogue, 47(3), pp.223-238.
McCarthy., N. 2018. Drones: a rising menace to UK aviation. [Online] available at: https://www.statista.com/chart/16490/near-misses-between-drones-and-planes-in-the-uk/ (Accessed on: 19-04-2019)
Meola., A. 2017. Drone market shows positive outlook with strong industry growth and trends. [Online] available at: https://www.businessinsider.com/drone-industry-analysis-market-trends-growth-forecasts-2017-7?IR=T (Accessed on: 19-04-2019)
Mintel Blog., 2019. 62% OF UK DELIVERY USERS HAVE EXPERIENCED AN ISSUE WITH A DELIVERY. [Online] available at: https://www.mintel.com/blog/retail-market-news/62-of-uk-delivery-users-have-experienced-an-issue-with-a-delivery (Accessed on: 19-04-2019)
Omohundro, S., 2014. Autonomous technology and the greater human good. Journal of Experimental & Theoretical Artificial Intelligence, 26(3), pp.303-315.
Ramadan, Z.B., Farah, M.F. and Mrad, M., 2017. An adapted TPB approach to consumers’ acceptance of service-delivery drones. Technology Analysis & Strategic Management, 29(7), pp.817-828.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80, pp.276-289.
YILDIRIM, Z.G., 2016. New Approaches in Supply Chains: A Research on the Use of Drone Technology in Logistics. Journal of Strategic Research in Social Science, 2(4), pp.133-142.
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