Asus Marketing Project

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- Company Vision and Mission

The vision statement of ASUS, sourced from the organization website, is as follows,’’ (ASUS) constantly strives to be an integrated 3C solution provider (Computer, Communications, Consumer electronics) that delivers innovations that simplify our customers’ lives and enable them to realize their full potential. ASUS products represent the best that technology has to offer, providing outstanding performance and aesthetics that seamlessly accommodate all lifestyles, anytime, anywhere’’.

Mission statement of ASUS is as follows,’’ As a major player in the IT industry, ASUS’ corporate mission is to provide innovative IT solutions that empower people and businesses to reach their full potential’’.

- Market Overview

Tablet is categorized as a type of mobile computing device. Currently, it is a rising trend in Singapore as the market have a 13% increase in retail volume sales from year 2013 to 2014. The sales contribution of the tablet sales are largely from Samsung Galaxy Tab and Apple iPad. Beside the direct competition of tablets, they face indirect and substitute competition from phablet and hybrids laptop where brands integrate laptop and tablet into a single device. This signify a more competitive environment and contribute to the slow growth in tablet market.

- Market Size

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From the information sourced from Euro monitor, this is the breakdown of the market share between Samsung, Apple and Asus. Samsung is current the leader in the tablet market with a 56.75% of market share, follow by Apple with 37.77%, and then Asus with 5.48%.

- Market Potential

Since the emergent of tablet market in Singapore in 2010, the market is growing at a decline pace, due to increasing substitute products. However, analysts from EuroMonitor speculated that the tablet market in Singapore will experience an increase of 9.9% sales growth in 2015. Coupled with the increase popularity of Android software, consumer might shift to android which give ASUS a platform to showcase it products.

- Market Structure

The market for tablet is an oligopoly as there are only a few brands that are doing the tablet business. This would means that they had a high barrier to entry to the business. As there are only a few brands doing the tablet business, this give firm to set their own price rather than taking the price of the market. However, firm tends to compete not just on the price factor, but also factors such as product differentiation and brand recognition. As the product they are selling is similar, different features such as the screen size, battery life and operating system of the product would give an advantage over its competitor.

- ASUS’s Micro- Environment

- Direct Competitors

For ASUS, there are 2 main competitors that are completing in the tablet market.

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- Trends

- Demographic Environment

In Singapore, the aging population is on the rise as evident in the 2014 Singapore Statistic report, this will inevitably affect the sales of ASUS tablets as there will be lesser target audience purchasing coupled with the fierce competition between APPLE and SAMSUNG. However, with the rise of baby boomers, this can be an opportunity for ASUS due to baby boomer having larger spending power as they have accumulated savings.

Not only that, there is an increase of population in Singapore, resulted from the white paper policy.

ASUS could place new emphasis on marketing its tablet towards an older demographic, to hold and increase the current market shares.

- Economic Environment

When the economic environment fluctuates, the spending patterns and purchasing power of consumers will change accordingly.

With a -0.3% inflation(deflation), Singapore economy is experiencing deflation in which, there is a decrease price of goods however, in the expense of increased rate of unemployment. This will affect consumer spending pattern as it will delay the purchase as they wait for lower price and the unemployment rate will affect their spending power. However, Singapore also scored 99 points in the global consumer index, making her the 14th most optimistic market globally.

Recently, China’s economic situation has been affecting the global market and inevitably, Singapore’s economy will be affected too. Therefore, consumers will take longer time to consider before purchasing products.

Overall, Asus Tablet sales will be affected as consumer will be thriftier, be more informed before purchasing a lifestyle product and also find cheaper alternative.

- Social Environment

With the increasing cost of living in Singapore, many families have dual-income as both parents work. Due to the combined income, dual-income families tend to have a higher purchasing power. Therefore, they will be able to purchase more expensive product.

According to Singstat, Singapore population is getting more and more educated. With more educated individuals, ASUS can market its complex technological products easily and consumers are also able to make better choices in selecting different brands.

In response to these social trends, ASUS can potentially market its product to educated and working adults.

- Cultural Environment

In order to capture Singapore market, ASUS should market in a way that appeal to Singaporean culture values.

As Singapore is a multi-racial country, there are many different cultures. Therefore, ASUS should consider its marketing mix strategy so as to not offend other cultures. Besides that, Singapore is also multi-religion country, thus, consideration must be put to place when planning advertising strategy.

Singapore is also a global hub with many external influences such as western influences, the populations tend to be more individualistic and exert more self-expression. Thus, ASUS have to be specific in segmenting and targeting their target audience to effectively achieve more market