Samuel,+Vicki+and++Eller

In the past three years our H&F MP3 was launched in the market but the market share is not in favor when compared to our main competitor, iGADGET MP3 players. The aim of this report is to analyze this situation and recommend appropriate action. Firstly the method of investigation is described, followed by the findings. Then conclusions are drawn and a number of recommendations are made as to how performance of our players might be improved. The following market research was completed by M&D Market Research Company. There are two sets of data comparing H&F and iGADGET MP3 players. The first set of data for this report was gathered in summer 2009. The baseline data for this report were gathered by means of a questionnaire survey. The survey sample consisted of 500 H&F MP3 users and 500 iGADGET MP3 users. The questionnaire was divided into seven main sections on which only Design, Functions and Headphone quality we would focus. The second set of data was gathered from September 2008 - August 2009 based on the approximate sales volume of H&F and iGADGET MP3 players in the local market. The market shares were compared monthly. The first set of data illustrates the low level of satisfaction of H&F MP3 when compared with iGADGET MP3. The most differed areas that where our MP3 players are not favorable are the Design, Functions and Headphone quality. The second data shows the market shares of H&F and iGADGET from September 2008 to August 2009.
 * Report on comparison between H&F and iGADGET MP3 players **
 * __ 1. Introduction __**
 * __ 2. Procedure __**
 * __ 3. Findings __**

Only half of the customers are contented with the design of H&F, against with nearly 90% of users who are satisfied with iGADGET. One possible reason for this is that H&F MP3 players have been launched for 3 years while iGADGET MP3 players periodically launched new color and pattern and to boost ed their share in the market. Customers may think our design is old-fashioned comparably.
 * __ 3.1. Design __**

The finding indicates that nearly three quarters of customers are disgruntled with the function provided by the MP3, compared to three-fifths of interviewees (...) are pleased with iGADGET. This is because of the complicated software program tie d to the MP3. Customers must install a specific program in their computers for transferring file; otherwise, they would not be able to transfer the music files into the MP3 files. This may caused much inconvenience to the customers.
 * __ 3.2. Functions __**

A similar result is found with headphone quality. Only 30% of the customers are satisfied with H&F which is much les ser than iGADGET. This could be attributed to the insufficient quality control of H&F’s factory in Malaysia, while iGADGET spend more cost in its factory in Korea to supervise the quality control.
 * __ 3.3. Headphone Quality __**

As can be seen from the graph, market shares of H&F remained stea dily between $21 million to $23 million in fall winter 2008, which is nearly half of the shares of iGADGET. However, in spring 2009, the market shares of H&F started dropping below $20 million and fell to its lowest point on August 2009 at $13 million. This might have been caused by the low satisfaction of H&F’s users. In contrast, the market shares of iGADGET reached its highest level at $63 million and remained constant though the end of the summer, it was three times more than H&F. As a result of the detailed investigation about MP3 players, it is clearly indicated that there are three main problems which lead to declining market shares of H&F compared to iGADGET. From the customer feedbacks, our product design appears to be old-fashioned. Also, low rating in the function aspect is due to the complicated software installation program tie to the players. In particular concern for the headphone quality, there is insufficient quality control of the factory in Malaysia. After the investigation, improvements should be carried out. After considering the findings, the following recommendations are made: Given that customers are dissatisfied with the antiquated impression, it is suggested our product department could spend effort on launching new features and color of the players. At the same time, an energetic and young image could be established through a new spokesperson. We could change the spokesperson to another suitable celebrity instead of Felix Chan. (spokesperson not mentioned in Findings) Since the users are annoyed with installing additional software program for the conversion of the music files to the players, the technology department is recommended to develop ing a new software program for our MP3 players aiming at adapting all different types of the music file. Then our product will be more user-friendly. In the light of the fact that there is insufficient quality control about our manufacturing process in Malaysia, an improved automatic control system is advised to be launched. This system could help minimizing the defected inventory. Also, more inspectors will be appointed in the factory to ensure that the quality control will be adapted smoothly. Although the cost will increase, this strict quality control can bring high degree of satisfaction to the customers.
 * __ 3.4. Market Shares __**
 * __ 4. Conclusion __**
 * __ 5. Recommendations __**
 * __ 5.1. Change of product design and spokesperson __**
 * __ 5.2. Advanced Software Program __**
 * __ 5.3. Strict Quality Control __**