A study of the diffusion process of a new product : CT2 in a fast changing telecommunication market

Pao Yue-kong Library Electronic Theses Database

A study of the diffusion process of a new product : CT2 in a fast changing telecommunication market


Author: Ng, Kan Kenneth
Title: A study of the diffusion process of a new product : CT2 in a fast changing telecommunication market
Degree: M.B.A.
Year: 1994
Subject: Cellular telephone equipment industry -- China -- Hong Kong -- Marketing
Telephone supplies industry -- China -- Hong Kong -- Marketing
New products -- China -- Hong Kong -- Marketing
Hong Kong Polytechnic -- Dissertations
Department: Dept. of Management
Pages: vii, 100, [22] leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1152490
URI: http://theses.lib.polyu.edu.hk/handle/200/4650
Abstract: CT2 (Cordless Telephone 2nd Generation) had been launched For just over one year in Hong Kong where the pager penetration race is one of the highest in the world. Before the launch of CT2, marketers had an extremely high expectation in this new product. They believed that the combined force of the technology push and consumer pull from pager users will definitely result in a fast growing environment in Hong Kong, despite CT2's launch in UK was a disaster. Huge budget of advertising and promotion had spent in the first year by the marketers. Price promotions and even price wars had been occurred for just few month after launch. However, the product penetration had not reached a level that up to marketer's expectation. Only 50% of the expected sales were made. The author is one of the senior executives of a CT2 operator and responsible for promoting this new product. In this project study, we attempt to explore the critical factors which really affecting CT2's growth in respect of CT2's product diffusion process. In the beginning of the study, a survey research had been done to gauge consumer's perceptions regarding CT2. We noticed that CT2 had a very high product awareness, but there were both negative and positive perceptions over the product in town. In analysing the relative product position of CT2 in the telecom market, the other two major telecom products, pager and mobile phone, had also been discussed, especially we could have a frame of reference by plotting the diffusion curves of a mature product pager which had been launch in the market for almost 20 years. Simple but useful academic models had been used as analysing tools, namely Product Life Cycle and Boston Matrix. The concept of Diffusion of Innovation had been adopted while we explored all major factors which affected CT2's growth. Finally, we made use of all known factors and information to project CT2's diffusion curve form its launch until it reaches it maturity stage of life cycle under some preset assumptions.

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