3.2 Discussion: Research-Based Peer Alternative Response To 2.3
Having multiple team members review the same data and come up with a different interpretation is common and very helpful in any marketing plan. While data is objective, analysis and interpretation of data are influenced by experience, preference, perspective, and risk tolerance. This is why strategy is often referred to as both an art and a science, and why a team can come up with a better solution than one person working alone. The science is finding data and calculating results; the art is looking at the data, understanding what it means today, and forecasting what it will mean tomorrow.
Since the client may view the data differently from the writer, it is helpful for the original writer to be aware of, and prepared for alternative interpretations. You as the peer reviewer will be the one who prepares the writer for those alternative interpretations that could be asked by the client during the presentation of the report. You are therefore helping your peer prepare for questions and concerns that he or she might have missed or might have interpreted to be of a different level of impact.
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Your role as a peer reviewer is to objectively examine the same category but to come up with a different interpretation of the data and/or a different recommendation. This means you will need to do your own research on the category to understand it well enough to provide an analysis and recommendation. Your solution must be based on your sources which will not be the same as the original writer. As a peer reviewer who must present an alternative interpretation and/or recommendation, you push and prompt the other person to reconsider his or her decision based on a different objective analysis. This allows the original writer to strengthen the proposal before the client sees it.
Upon successful completion of this discussion, you will be able to:
- Assess the market structure to determine the crucial factors influencing the marketing strategy.
- Textbook: Malcolm McDonald on Marketing Planning : Understanding Marketing Plans and Strategy, Ch. 8, pp. 135-145
- Textbook: Forecasting Fundamentals, Ch. 1-2, Ch. 4
- Textbook: Creating New Products and Services: Paid to Think, Ch. 4
- Textbook: Developing Successful Marketing Strategies, Ch. 8
- File: Market Analysis Report Template
- Review the rubric to make sure you understand the criteria for earning your grade.
- Review the initial product development and market demand report from your peer as submitted to the 2.3 Discussion.
- You will need to do appropriate research on the industry and category so that you understand them in order to make an educated analysis and recommendation for this section of the consultant’s report. It is important to start out with a thorough understanding of the category and industry. You should not rely on the original writer’s research and description of the industry.
- You will provide a 250- to 350-word review to your peer as a post in the discussion forum. Your review must provide a different or alternative perspective, interpretation, conclusion, and/or recommendation for at least one (1) of the four (4) elements noted in the assignment (these should be the four titled sections from the Market Analysis Report Template), based on your personal objective analysis of the category using credible sources. You do not need to have an alternative for all four elements of the assignment, but your alternative may involve more than one element since many of them are related.
- You will not discuss the original writer’s analysis or recommendation; all of your comments must be focused on your objective interpretation and analysis. You must have a distinctly different perspective and/or recommendation in your alternative response. In other words, you are looking at the same scenario in the same industry and/or category, but you are coming to a different conclusion such that any form of “I agree” in your review is not an option.
- You must cite at least two credible sources that were not used by the original writer to support your interpretation and recommendation.
- Cite your work per current APA standards, however, indenting of the references is not required due to the discussion board format. (See OCLS APA Writing Styles Guides)
- Post your initial proposal into the discussion forum as a post, not as an attached file.
- Your grading is based in large part on your critical thinking as demonstrated in providing a different interpretation, conclusion, and recommendation. Because your peer is expecting this assistance on time to improve his or her report, late peer postings will have a penalty of 10% per day (6.5 points) for up to 5 days and may not be submitted for points after 5 days. This late penalty cannot be waived by the instructor.
MKTG – 530
01 February 2021
Product Development and Market Demand
Key differentiating characteristics of the offering
JGJ, Inc. plans to offer a transportation service that is solely used for transporting senior citizens around town to appointments, the grocery store, leisurely outings, etc. To do so, JGJ Inc. has created a user-friendly app that contains step-by-step videos showing our customers how to schedule rides. However, if our customers are still struggling to schedule rides to and from their destinations, we plan on having an automated call service that will connect our customers with our drivers. This service will be free to our customers. Each driver will be placed on-call when they are not actively driving a customer to a destination. If a driver is unavailable to accept a call, the call will be routed to our automated service that can help schedule a ride for our customers. The automated service will search ride histories of our customers which can help expedite the scheduling process. However, if a ride history is unavailable, a list of questions will help schedule the ride as well. If the list of questions is exhausted and the ride is still not scheduled, the call will be re-routed to our support center that work 7 days a week 7 a.m. to 7 p.m, which are the same scheduled hours as the drivers. Along with scheduling differences, there will be a price point difference as well.
JGJ, Inc. is striving to be the low-cost provider for senior citizens. We have proudly partnered with Medicare to help our customers afford rides to essential locations and sometimes non-essential locations. Since partnering with Medicare, our customers receive free transportation to and from doctor’s appointments. During our partnership conversation with Medicare, we discussed how we both believe that allowing senior citizens access to routine check-ups help reduce ambulance and emergency medical care costs and premature death because of social isolation (Government Advocacy & Campaigns, 2011). Medicare has agreed to pay for the costs of doctor’s appointment rides for senior citizens ages 65 years and older. Along with doctor’s appointments, Medicare has agreed to split the fare for rides to and from a grocery store once a week. This way senior citizens can get what they need without having to put themselves at risk or spend unnecessary money on expensive fares via our competitors. Medicare has also agreed to split the fare with our customers once a month on a round-trip leisurely travel activity. The destination cannot be greater than 50 miles away. If our customers use our service for more travel than the agreed upon terms with Medicare, our customers will pay the full fare. Along with Medicare helping to keep costs down for our customers, our company is offering a ride-share schedule that will allow groups of senior citizens to share one vehicle. Our customers will sign up for this service which will be posted weekly to our app. They can sign up via our app or by calling and talking to our support specialists.
Analysis of demand in the market
In the United States there are 8 million senior citizens over the age of 65 that do not drive (Government Advocacy & Campaigns, 2011). Because of offering this service to such a niche target market, JGJ Inc. expects an outrageous demand for this service, especially since Medicare has agreed to the partnership. Our customers need a reliable means of transportation to complete basic activities.
Market Segment Demand
Quantitative data used to determine projected demand
Table 1.1 – Projected population growth for seniors
According to Table 1.1 the senior citizen population in the United States is expected to grow tremendously (“The aging”). Due to this rapid incline of aging in the United States, there will be an increase in the overall demand for transportation for those 65 years and older. As a result, the demand for our service will continue to grow. Along with population growth, concerns for elderly drivers will play a factor in our quest for market share as well.
Table 1.2 – Traffic Fatalities
According to Table 1.2, traffic fatalities have increased from 2009 to 2018 in the population age group of 65 years and older (“Background,” 2021). This increase has a direct correlation to the increase in the overall population of the age group. JGJ Inc. is focused not only on overall costs for our customers, but our company is also concerned about the safety for our customers and society. We understand how difficult the decision is when telling a loved one that they can no longer drive. However, Table 1.3 helps to show that our service can help reduce the number of accidents involving senior citizens, especially because our drivers must all be between 25 – 55 years old (Tefft, 2017”). Elderly drivers are known as being the second highest risk of dying via an automotive accident (Autos.com Editor, 2013). Thus, JGJ Inc. is hoping to help bridge the gap of safe, affordable transportation for senior citizens because there is indeed a market.
Table 1.3 – Deaths from auto accidents
Methodology used to determine demand
The methodology that our company used to forecast our future demand was the expert opinion method (Francis, 2015). Due to our partnership with Medicare, we have created a strategic plan together. They have the expert-level knowledge of the population we are pursuing. Thus, we are using their knowledge. However, we have also analyzed the trends of competitors, but focused the data set to our population age group.
We believe using both these methodologies together will provide a more accurate representation of our future demand than using one methodology alone. By using both methodologies we have noticed similarities that have formed trends. These trends are now our future market demand forecasts (Sanders, 2015).
Table 1.4 – Forecast for Market Demand for JGJ Inc.
After analyzing the trends via our expert data and population growth, we have created Table 1.4. This table shows are direct correlation to Table 1.1. Population is expected to grow by 14% between 2020 and 2025. Thus, we forecast that our demand will also grow by 14%. Since there will be more people over the age of 65, we forecast that those who can no longer drive will increase as well. This is similar for years 2025 to 2030.
Autos.com Editor. (7 Oct. 2013). “Car crash statistics based on age and location.” Autos.com, Autos.com. Retrieved from www.autos.com/driving-and-safety/car-crash-statistics-based-on-age-and-location.
“Background on: older drivers.” (6 Jan. 2021). III, Insurance Information Institute/ Retrieved from www.iii.org/article/background-on-older-drivers.
Campaigns, Government Advocacy &. (29 June 2011). “Ensuring transportation for those who don’t drive.” AARP, AARP. Retrieved from www.aarp.org/home-garden/transportation/info-06-2011/aarp-transportation-for-those-who-dont-drive.html.
Francis, A. (4 Apr. 2015). “Expert opinion method of demand forecasting.” MBA Knowledge Base. Retrieved form www.mbaknol.com/managerial-economics/expert-opinion-method-of-demand-forecasting/#:~:text=Expert%20Opinion%20Method%20of%20Demand%20Forecasting.%20In%20this,called%20forecasting%20through%20the%20use%20of%20panel%20consensus.
Sanders, N. (2015). Forecasting fundamentals. Business Expert Press. Retrieved from https://ebookcentral.proquest.com/lib/indwes/detail.action?docID=4742536
Tefft, B.C. (2017). Rates of motor vehicle crashes, injuries and deaths in relation to driver age, United States, 2014-2015 (Research Brief). Washington, D.C.: AAA Foundation for Traffic Safety. Retrieved from https://aaafoundation.org/rates-motor-vehicle-crashes-injuries-deaths-relation-driver-age-united-states-2014-2015/
“The aging of the United States population.” (n.d.). SeniorCare.com. Retrieved from www.seniorcare.com/featured/aging-america/.