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The business project to take paying passengers to sightsee at the edge of the orbit is viable due to the company's safety record evident in successful satellite launching into the trajectory for different nations. However, the firm should learn from mistakes done by The Virgin Group who tried to launch a similar project but could not succeed due to the tragic failure of their rocket (Burghelea 2015, pg.76). Consequently, the Company should establish proper safety designs, obtain a rigorous federal oversight and, engage competent pilots who are highly experienced. For the success of the project, there are various target markets, pricing strategies and promotional techniques the company should adopt.
Key Markets to Get the Main Customers
The company should focus on extending its services to financially clients. These potential customers include surgeons, psychiatrists, physicians who are general practice practitioners, senior-level corporate executives, dentists, petroleum engineers, orthodontists, data scientists, air traffic controllers, and pharmacists (Abenstein & Harrison 2014, pg. 582). The main reason for targeting these groups because they are highly paid and their jobs are very stannous. To relieve themselves from stress in their workplaces, these workers can easily afford the sightseeing trip and can manage to pay for consecutive ones. Besides, most of these workers perform in shifts. Therefore, it is easy to get leisure time for a trip.
For justification of recommendation for the target customers in mentioned above groups, all of them hold the most lucrative jobs in the USA. For instance, the annual average wage of a surgeon is estimated to be $352,000 with a projected growth of 18% (Abenstein & Harrison 2014, pg. 583). Besides, it is estimated that psychiatrists make an annual wage of $ 182,000 with a projected wage growth rate of 18%. Furthermore, estimates for an annual wage for general practitioners is $181,000 with a projected growth rate of 18%.Top-level executives have an average estimated salary of $175,000 and a projected growth rate of 10 % extending up to 2025 (Abenstein & Harrison 2014, pg. 590). Dentists make an average annual income of $150,000 with a projected wage growth rate of 16%. Furthermore, the wage rate for petroleum engineers, orthodontists, data scientists, air controllers and pharmacists is very high, a reason why they should be a favorite target group for the firm (Abenstein & Harrison 2014, pg. 593).
Practical Pricing Strategies
The company should use promotional pricing strategy. This entails setting the price relatively low to attract and maintain loyal customers (Giri & Sharma 2014, pg. 103). The price is hiked later when the company has established a market share. The company can use promotional pricing strategy to price its services at a smaller amount than usual to advance market reputation thereby gaining more customers. This strategy can be instrumental in discouraging competitors to enter the market especially when they view the price as a long-range cost (Giri & Sharma 2014, pg.104). Certainly, promotional pricing is mostly used by firms who are entering a market. Theoretically, it lowers the cost of services in current times but raises the demand for the services in the future.
Promotional pricing is recommendable for the company due to various benefits the company can accrue from it. For instance, it elevates adoption percentage as well as diffusion (Giri & Sharma 2014, pg.109). Though there are similarities between diffusion and adoption, adoption is more about responsive acknowledgment while diffusion relies on a level of customer acceptance of the product. Also, promotional pricing attracts customers to come back again and enjoy those profitable deals (Giri & Sharma 20014, pg. 110). Besides, the action of promotional pricing discourages competitors and hence helps the company to embrace a big market share. To sum up, setting the cost of services at low prices is a kind of oral advertising thereby, making any primo action more efficient. Apparently, it is recommendable for the company to use promotional pricing strategy which will eventually facilitate the success of sightseeing project.
Practical Promotional Technique
It is recommendable for the company to use corporate advertising because sightseeing trip to the orbit is a new product. Its purpose is to raise the company's reputation, personnel, image or the industry itself (Shultz & Block 2014, pg. 212). A good corporate advertisement is enough to enhance a company's reputation, thereby attracting customers who would be proud to associate with it and enjoy the services that it renders. It is justifiable to use corporate advertising especially for a company that is introducing a new service due to various benefits the company accrues. For instance, corporate advertising is an efficient tool for positioning the firm. This positioning is achieved through establishing a position in the market. Besides, corporate advertisement reaches a specific market group (Shultz & Block 2014, pg. 215). It mainly aims at reaching to managers of other firms and not the general public hence. It is economical regarding to finance and time.
It is also recommendable for the company to offer buyback allowance as a promotional strategy. This strategy is vital to attracting loyal customers. This technique encourages the use of incentives for new deals (Shultz & Block 2014, pg. 215). For a company aspiring to introduce a new service of carrying sightseers to the orbit, this promotional technique is necessary to keep the company at task and, to show commitment of the company to safeguard its clients. Clients need assurance of their safety especially due to a previous catastrophic accident in a similar trip organized by Virgin group. The promotional technique requires the company to pledge to compensate the employees in case of any dissatisfaction. It is justifiable to recommend buyback allowance technique because the method raises confidence in management and minimize the risk of psychological effect.
The fact that sightseeing trip to the orbit is a new product makes it recommendable for the company to use demonstration as a promotional technique which requires demonstrating the service to potential clients (Shultz & Block 2014, pg. 217). This requires the company to carry out a first successful trip and use display it to the public. The company can demonstrate the trip to the general public through televisions, videos and social media. Though the promotional technique is costly, it is vital in eliciting interest in the service especially when the target customers observe how the fascinating trip happened. Demonstration technique is justifiable to the company because it can instill trust and confidence among the clients especially due to the previous failure of a similar attempt from The Virgin Group.
The previous success of the company in launching satellites in orbit for various governments makes the idea of taking paying passengers to sightsee at the orbit to be very viable. The company should target clients of the firm financial base who can afford the trip and apply for consecutive ones. Some of these potential clients include the surgeons, data scientists, and petroleum engineers. It is recommendable for the company to use promotional pricing strategy because the method help to attract new customers and facilitate success in the long run. Also, it is recommendable for the company to use various promotional techniques that includes corporate advertising, payback and demonstration techniques.
Burghelea, C., 2015. Approach on the existence of innovation in tourism. Scientific Papers Series Management: Economic Engineering in Agriculture and Rural Development, 15(1).
Ebenstein, A., Harrison, A., McMillan, M. and Phillips, S., 2014. Estimating the impact of trade and offshoring on American workers using the current population surveys. Review of Economics and Statistics, 96(4).
Giri, B.C. and Sharma, S., 2014. Manufacturer's pricing strategy in a two-level supply chain with competing retailers and advertising cost dependent demand. Economic Modelling, 38, pp.
Schultz, D. and Block, M., 2014. Sales promotion influencing consumer brand preferences/purchases. Journal of Consumer Marketing, 31(3).
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