MKTG1391 Drone Industry Insights Assignment Sample

• Subject Code : MKTG1391
• University : RMIT University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Marketing

Consumer Behaviour

Table of Contents

Introduction.

Market

Competitors.

Production positioning.

Target market segmentation.

Decision-making process.

References.

Introduction to Drone Industry Insights

In the business environment, gaining or earning profit is the ultimate motive for every business organization. Concerning such fact, organizations follow, study, and understand their consumer behaviour to create or develop products as per their choice and preferences. Besides that, companies are also focused on creating a product that will add value to society and their business as well (Yang and Gabrielsson, 2017). The concept of consumer behaviour indicates the social, psychological, and economic behaviour of individuals as they are informed, assess, purchase, consume, and perceive regarding any product or service respectively (Kanten and Darma, 2017). This indicates that understanding and assessing consumer behaviour is a key factor to consider while making a marketing plan for a new product or service effectively. On the other hand, studying and comprehending consumer behaviour also helps determine its relevance to any specific market situation effectively. Based on understanding the different factors of consumer behaviour, it will provide effectual assistance in exploring internal, external, and decision-making influences by consumers towards any product or service (Camilleri, 2017).

In respect to the global commercial market, the value of drones is emerging rapidly and effectively leading businesses to prosper rapidly and efficiently. As stated in a news report by The Business Research Company, (2020), the drone market has been growing massively since 2018 which was valued at approximately over $3 billion and it is expected to grow to over $7 billion by 2022. This indicates that there is an enormous chance for the drone industry or business organizations to create a competitive advantage for themselves within the rival market effectively. The main purpose of their report is to analyse how drone technology can create and deliver a competitive advantage for consumers within the Australian market proficiently. Thus, understanding the various factors associated with consumer behaviour and competitive advantage will help conclude the findings of the study rationally and effectively (The Business Research Company, 2020).

Market

With the emergence of new technologies and their advantages, consumers are keener towards buying and using technology-enabled products and services to make their lives easier and convenient. The fast paced world of competition and advancement has made societies and individuals to look for products and services that will assist in making their daily lifestyle simpler in form. Relating to such fact, the Australian market has many potential consumers who seek advance technologies and products to assist them in tackling their daily chores and hurdles effectively and efficiently. According to a report by Australian Trade and Investment Commission, (2019), it has been stated that the global commercial market of the globe is expected to grow vigorously in the domains of agriculture, health, and defence industry to empower the international unmanned aerial systems market. Concerning such fact, Australia is been well placed to enjoy the benefits of it. There are more than 1200 drone operatives within Australia alone who are evolving technologies and services to create value to the market (Australian Trade and Investment Commission, 2019). Besides that, in another report by Drone Industry Insights, (2019), has significantly stated that more than 5% of the international strategic drone partnerships during the year 2018 were formed by several Australian companies who are keen to an alliance with drone firms (Drone Industry Insights, 2019). On the other hand, as per the report of McKinsey, supposedly if the companies save 40% of their cost on delivery by using drones, it is likely that such companies will enjoy a 15% to 20% increase within their margins of profit effectively. It can be identified in an example as happened in India during march 2019, where an Indian food delivery firm named Zomato has executed trials and experiments to facilitate drone delivery system within the organization’s value chain (Drone Industry Insights, 2019). Moreover, the emergence of the commercial drone is considered being high as it may help them to make the last mile delivery which involves their main operation of the business.

Competitors

Since the demand and emergence of drones are increasing massively, there is a possibility of rising competition among the companies who are into the same business respectively. Several companies are coming into the business of drones as they viewed the market as a promising and huge prospect for gaining success and profit at the same time. The direct competitors of drones are rival businesses who are into producing and selling similar products within the same market. This involves top resulting companies such as Drone Volt, SenseFly, SkyCatch, Apellix, Parrot, DJI, and Yuneec (Owler, 2020). However, among all these drone manufacturing companies, Drone Volt led the global market effectively by generating an annual revenue of $8 million, having headquartered in Villepinte, France (Owler, 2020). The size of the competitors is growing rapidly due to the rising demand for online services and e-commerce business within the Australian market (Droneii, 2017). Since the evolution of drone technology in 2013, it has created a game-changing solution for various industries in Australia and overseas market as well. It includes construction, mining, and infrastructure industry to enhance productivity and protection at the same time (Droneii, 2017).

Production Positioning

Product positioning is a significant factor to consider while marketing products and services to the particular target market. Relating to such fact, the product positioning of drones in the Australian market is primarily focused on the target audience effectively. It includes setting a preference as well as a positive perspective within consumer minds about its purpose and quality. The drone companies in the Australian market positions their prospect as an Unmanned Aerial Vehicle (UAV) that has multiple purposes of its usage. It involves on the domains of the delivery system, agriculture, construction, mining, media, and defence security. The drone technology is an effectual concept to bring upon by inventors to provide proficient solutions to regular challenges of such business organizations and industries. As per the reports of UAV Market, (2019), the drone market is anticipated at 19.3 billion US dollars during 2019 and is expected to rise by 45.8 billion in 2025 (UAV Market, 2019). This indicates that the market is emerging rapidly due to effectual product positioning by a strategic method of signifying its usage and benefits for consumers (UAV Market, 2019).

Target Market Segmentation

Target market segmentation is the process of splitting a big market into groups or cluster of consumers who have similar choice, taste, and preference for any product or service. Besides, that, based on the market segmentation of the company's particular product, the firms set target t that a specific group of consumers to sell their product by effectual marketing techniques. Similarly, the drone companies in Australia targets e-commerce firms such as Amazon, UPS, Domino's, etc. According to a recent news report by Stonor, (2020) in Urban Mobility News, has stated that Google's Wing drone delivery system has helped logistics companies to increase by 500% during the coronavirus pandemic (Stonor, 2020). This signifies that the drone companies like Google are effectively working hard to enhance the benefit and usage of drone technology to industries like e-commerce and logistics (Stonor, 2020).

The target market has segmented into four factors of typical market segmentation and that includes:

Geographic: The drone market has segmented by region and areas especially within the Australian market such as cities like Canberra, Melbourne, Sydney, Victoria, and Perth. Primarily, the target market ate on the urban regions of Australia as most of the online purchase by consumers occur in cities. Thus, the target consumers of drone technology will be segmented based on geographic factors of Australia concerning demand and preference (Camilleri, 2017).

Demographic: Demographic segmentation involves segmenting a large market by consumer’s age, income, and gender. Similarly, drone companies are target consumers like Amazon who focused and deals with consumers who are in the age group of 12 to 60 years with an annual income of minimum $700. Online purchase is made by both genders, males and females; thus, drone companies are developing their products by setting sensor and location tracking technologies to deliver products at the exact location of consumers (Camilleri, 2017).

Psychographic: This segmentation involves the consumer's personality traits, values, and interests. Besides, it also includes the consumer’s lifestyle choices, success factors, and beliefs. Relating to such fact, with growing lifestyle changes of consumers, moving from offline marketing to online marketing, the emergence of drone technology has created a competitive advantage for the e-commerce companies effectively (Camilleri, 2017). The analysis of psychographic factors regarding drone consumers involves security and safety-minded who are concerned about protection.

Behavioural: The behavioural target market segmentation includes splitting the big market into clusters by the buying behaviour and preference towards the product. Besides, it also includes customer loyalty and requirement of benefits. Concerning such fact, the drone companies target consumers who have continuous buying record or history based on their preference and benefits received from the product, for example, the e-commerce companies like Amazon, E-bay, Domino’s, etc (Camilleri, 2017). E-commerce firms are considered loyal consumer here as they have tasted its benefits and keen to adopt more of it.

Decision-Making Process

Decision-making process involves several factors that are crucial to consider while deciding which one to buy or not (Yang and Gabrielsson, 2017). It includes several steps that help determine the decision of making a purchase based on need and preference.

Need recognition: This is the first step of the decision-making process, where an individual identifies the need for buying any product and how it will help fulfilling the need effectively. Concerning drone technology, consumers like e-commerce identify the need of such product, for example, to deliver products to customers easily and conveniently, companies recognize their need and makes decision forward (Yang and Gabrielsson, 2017).

Information search: Second, the same consumer will search for information about the products concerning factors like price, advantages, disadvantages, service, availability, reliability, and quality (Yang and Gabrielsson, 2017).. Consumer searches information over the internet, magazines, news, gadgets review, etc. Besides, they also gather information from their friends, colleagues, and families. Concerning drones, consumers like e-commerce companies search for information about its availability, dependability, and quality to meet their organizational needs (Yang and Gabrielsson, 2017)..

Evaluation of alternatives: Third is the evaluation of substitute or alternative products that partially or meets the business needs of companies and industries (Yang and Gabrielsson, 2017). The criteria of evaluation in regard to drone technologies, consumer look for the efficiency in sensor, location, and speed. If the required factors or criteria are been found in other alternate products or companies, then it is likely that the consumer will prefer the substitute product. Besides that, the value of the product also shall play a key role in recognizing the effectiveness of the alternatives. The market value of the product is another significant factor to consider while evaluating substitute products (Yang and Gabrielsson, 2017).

Choice: Choice of product among the searched and evaluated products is the ultimate concern within the decision-making process (Yang and Gabrielsson, 2017). After the need recognition, information search, and evaluation of alternatives, selecting the choice product is crucial to determine the final selection of consumer. Relating to drone technologies, companies’ choices the product which is more reliable in terms of quality and service to meet their organizational need for delivery (Yang and Gabrielsson, 2017).

Conclusion on Drone Industry Insights

By looking at the global commercial market of drone technologies, within the span of few years from 2013 to 2020, it has created a massive competitive advantage for several businesses and industries to increase their productivity and performance effectively. As the benefits and usage of drone technologies are effectual in meeting organizational goals of e-commerce businesses like Amazon, the consumers are attracted to the product and are gaining significant attention within the Australian market. The efficiency of drones is promising and reliable to ensure organizational effectiveness whoever adopts this technology to improve their business productivity will experience a sudden surge in its profitability and growth effectively. Thus, this indicates that with the efficiency and effectiveness of drone products and technologies, it has successfully created a competitive advantage within the targeted Australian market.

References for Drone Industry Insights

Australian Trade and Investment Commission, 2019. A World of Opportunities for Australia’S Growing Drone Industry. [online] Australian Trade and Investment Commission. Available at: <https://www.austrade.gov.au/news/latest-from-austrade/2019-latest-from-austrade/a-world-of-opportunities-for-australias-growing-drone-industry>

Camilleri, M., 2017. Market Segmentation, Targeting and Positioning. Tourism, Hospitality & Event Management, pp.69-83.

Drone Industry Insights, 2019. Australia Drone Market Report 2019-2024 – Drone Industry Insights. [online] Drone Industry Insights. Available at: <https://www.droneii.com/product/australian-drone-market-report>

Droneii, 2017. Rough and Tough –Drones for Australia’S Industry: How to Select a Drone for Multiple Industrial Applications. [online] Droneii.com. Available at: <https://www.droneii.com/wp-content/uploads/2017/09/Rough-and-Tough-Drones-for-Australias-Industry.pdf>

Kanten, I. and Darma, G., 2017. Consumer Behaviour, Marketing Strategy, Customer Satisfaction, And Business Performance. [online] Available at: <http://dx.doi.org/10.38043/jmb.v14i2.348>

Owler, 2020. DRONE VOLT’S Competitors, Revenue, Number Of Employees, Funding, Acquisitions & News. [online] Available at: <https://www.owler.com/company/dronevolt>

Stonor, C., 2020. Google’S Wing Drone Deliveries Soar During Pandemic With 500% Volume Increase - Urban Air Mobility News. [online] Urban Air Mobility News. Available at: <https://www.urbanairmobilitynews.com/express-delivery/googles-wing-drone-deliveries-soar-during-pandemic-with-500-volume-increase/>

The Business Research Company, 2020. 2020 Drones Market (Commercial & Consumer) Growth, Trends, Market Size and Forecasts By TBRC. [online] PR Newswire Association LLC. Available at: <https://www.prnewswire.com/news-releases/2020-drones-/>

UAV Market, 2019. Unmanned Aerial Vehicle Market, UAV Size, Share, System and Industry Analysis And Market Forecast To 2025 | Marketsandmarkets™. [online] Marketsandmarkets.com. Available at: <https://www.marketsandmarkets.com/Market-Reports/unmanned-aerial-vehicles-uav-market-662.html>

Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech business-to-business new ventures: A decision-making process perspective. Industrial Marketing Management, 64, pp.147-160.

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