Answer to Question #284095 in Management for Kizia

Question

Direct-to-Consumer Air Conditioner Case Study

People leave their homes in the summer to enjoy the warmer weather. Summer heat isn't for everyone; many older flats and houses lack central air conditioning and rely on fans or in-window air conditioners to keep cool. Despite the fact that many home technology gadgets are sleek and high-tech, the humble room air conditioner has stayed unchanged for decades, keeping its distinct lack of design.

April air conditioners intends to rectify this situation. The new direct-to-consumer (DTC) brand takes a fresh look at in-window unit design and positions itself as a design object as well as a functional appliance. It's hit a nerve with customers; within the first five days of releasing a wait list for the product, there were more than 2,000 people on the waiting list.

1. Discuss the importance of clearly defining a target market. And who was the April air-conditioner target market?

Answer 1

Clearly defining a target market helps identify its potential customers who are willing to pay for a product or service. It is a more effective and affordable way to reach customers and generate business without wasting resources. The business can efficiently limit the population thus funneling research and budgeting to customers with the highest profit potential.

The April air conditioner is intended for people living in older flats and houses that were designed without air-conditioning systems and rely on fans or in-window air conditioners to keep cool.