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 * __Report on Market Performance of H&F MP3 Players__**

__1. Introduction__

In light of the performance of H&F MP3 players, a market survey had been recently conducted by M&D Market Research Company. It reveals an unfavorable customers' satisfaction to our MP3 players in the market comparing with that to iGADGET MP3 players. With this in mind, the marketing department has examined the results and proposed some suggestions. As requested, this report presents the four unsatisfactory points shown by the survey, namely the design, functions, headphone quality, and the market shares obtained.

__2. Procedure__

The findings for this analysis are based upon market research carried out by M&D Market Research Company in summer 2009.500 consumers for H&F MP3 player and iGADGET MP3 player respectively were interviewed and asked to complete a questionnaire comprising the following six aspects of the two products: design, functions, sound quality, battery life, headphone quality and overall satisfaction. Also, the market shares of the two products throughout the year from September 2008 to August 2009 were reviewed by the company.

__3. Findings__

Appendix 1 presents the results of the consumer questionnaire conducted in the summer of 2009. It clearly indicates the three aspects of which the percentage of satisfaction of H&F products is substantially lower than that of iGADGET products. Appendix 2 indicates the trends of market shares of the two products from September 2008 to August 2009.

//__3.1 Design __//

Under half of the respondents are satisfied with the design of the H&F MP3 players, while over four-fifths are happy with the iGADGET designs. One possible reason is that the design of our products is not as outstanding and innovative as that of our competitors. The appearance of our goods did not change too much during the past three years, which is because of the shortage of design professionals in our company.

//__3.2 Functions __//

Less than two thirds of interviewees feel H&F players are not user-friendly, against with  nearly double the amount contented with that of iGADGET products. This is attributed to the transfer of music files onto H&F MP3 players requiring a software program that must be installed on the users' computer, By contrast, iGADGET MP3 players simply use the way of drag-and-drop to finish the transfer.

//__3.3 Headphone quality __//

Compared to two-fifths of the users contented with the headphone quality of iGADGET, only over one fourth is satisfied with H&F headphones. A possible explanation for this is that our goods are made in Malaysia and iGADGET produces their players in Korea. Factories neglect the sound quality and the comfort needs of the customers.

//__3.4 Market shares obtained __//

Our market shares fluctuated between 19% and 23% from September 2008 and February 2009, after which, it fell gradually and reached its lowest point of 13% by August 2009. By contrast, the market shares obtained by iGADGET mainly varied around 60%, and had  a slight growth to 63% during the past quarter. It seems that H&F has only entered the market for three years while iGADGET has been the leader of the industry for more than 10 years. Another reason could be that H&F invited Felix Chan to be the celebrity spokesperson to promote the MP3 players for the past three years, who has been investigated  as an out-of-fashion TV star for our customers. While  the promoter of iGADGET products is a pop singer who is one of the most popular stars nowadays.

__4. Conclusion__

To summarize, it is clear that our products are less competitive than iGADGET MP3 players. This is mainly due to the design, functions and headphone quality not fulfilling the needs of the customers, consequently, a lower market share s  is obtained by H&F. It can be concluded that we need improvements on all the four aspects so as to save our products and gain market shares.

__5. Recommendations__

After considering the findings, the following recommendations are made.

//__<span style="font-family: 'Arial','sans-serif';">5.1 Design __//

Given that a major cause of dissatisfaction amongst consumer is due to the design of our products, it is recommended that the company recruits a team of fashion stylists in our design department.

//__<span style="font-family: 'Arial','sans-serif';">5.2 Functions __//

As a result of the present disgruntlement with the functions of our players, it is suggested that a new drag-and-drop function should be introduced to simplify the transfer procedure of the music transfer.

//__<span style="font-family: 'Arial','sans-serif';">5.3 Headphone quality __//

Our findings have suggested that the quality of goods produced in Malaysia's factory has pulled down the satisfaction of consumers to our products. In the light of this, it is recommended that a quality control system should be introduced in the factories of Malaysia, in order to assure the MP3 players' quality produced.

//__<span style="font-family: 'Arial','sans-serif';">5.4 Market shares obtained __//

The declining market shares of H&F that the findings have suggested, could be improved by hiring a young pop star for the promotion of our products so that the young generation would be attracted and choose to buy our MP3 players.