Airbnbhas been focusing exclusively on the tourism sector. Its primaryproduct includes offering a platform where travelers can meet thosewho wish to rent their properties. The SWOT analysis on the companyreveals that it can expand its business operations to include otherservices. The enterprise has established value and supply chainprocess which makes it easier to integrate other products and broadenits profitability. This approach is also essential because itredresses the risk of relying on one idea. Similarly, the strategy islikely to facilitate the growth and expansion of Airbnb amidst thestiff competition in the market.
Descriptionof the New Product
Airbnbcan launch a platform where freelance workers get jobs and companiescan outsource labor. Modern workforce values autonomy, vacation, andbetter payment. As a result, freelance contracts are common in thejob market. It gives individuals the time to pursue different thingsat the same time. Likewise, it provides a leverage which they can useto choose the types of jobs they prefer. Most people want occupationswhich are aligned with their values, beliefs, and the sense ofimportance. On the other hand, corporations have adopted laboroutsourcing as an approach for reducing operational costs. Theirprimary aims include expanding profit margins and creating theopportunity for the reduction of the products and services.Organizations with excellent cost leadership strategies have a strongcompetitive advantage over others. Price is one of the factors thatclients consider when making buying decisions. For instance, Nikeoutsourced manufacturing services from Singapore and Vietnam to cutits expenses.
Theplatform will be a job market which links the businesses that seekaffordable labor with individuals who are willing to offercompetitive services at relatively cheaper payment rates compared tothe traditional labor market. This approach can be thought of as anexpanded human resource frame model. The only difference is thatemployees, in this case, are not bound by permanent contracts and canchoose jobs which suit their needs. Payments vary from oneorganization to another depending on the scope of work, the resourcecapability of the enterprise, and the level of demand of the laborforce.
Thisproduct targets the modern skilled labor market as well as thecompanies which adopted labor outsourcing. This group of workerswants to be developed through various training and advance theircareers. Additionally, they are conscientious because they preferjobs that contribute to the development of the society. CorporateSocial Responsibility as a brand management strategy was conceivedwhen it became apparent to corporations that communities wereobsessed with how their activities impact the world. For instance,Nike has faced severe criticism for the sweated labor practicesmaintained by its manufacturers. In fact, the branch in Singapore hadto close as rebellion intensified [CITATION Joh08 l 1033 ].The public has also been criticizing businesses which use machinesthat emit a lot of toxic gasses into the atmosphere.
Asa result, corporations such as Home Depot decided to reduce theirdependence on petrol and diesel-driven machines to minimize theirimpact on the environment. In return, they promoted the use of solarpanels in the United States to provide a cheap and safe alternativesource of energy. The same people with the opinion that companiesshould strive to make the world a better place are the ones whichconsist of the contemporary labor market. They value much flexibilityat the workplace. For instance, they want vacations regardless of theactivities at work. It is not just enough to give them much moneywithout a holiday. The contemporary workforce hence values autonomywhereby they can choose when to work. In that regard, they can alsoplan their vacation. Flexibility at the workplace is also exemplifiedthrough the choice of work. Most people want to choose the kind ofjobs they desire. With the diverse cultures, they want jobs thatcorrespond to their beliefs, values, and sense of importance.
Likewise,international corporations ought to be distinct and accommodative tothe different cultures across the globe. A good example can be drawnfrom Starbucks. The company is a global entity that offers productsand services according to the country’s preferences. In otherwords, the products and services in China correspond to the country’scultures. Similarly, goods and services in America are in line withtheir cultures. The demand for highly skilled and talented workersintensifies with the progress in technology. Corporations wantemployees who have expertise in their respective fields. Therefore,freelance workers offer the best avenue for skilled labor [CITATION Joh08 l 1033 ].
Asdescribed above, the target market values autonomy. They have apsychographic relation due to similar lifestyles, values, andattitudes. How then will Airbnb attract this kind of laborer? Thecompany has to entice the freelance workers as well as the companiesinvolved in outsourcing labor. Indeed, most of the Americanmanufacturing companies outsource work especially to Asian countriesdue to the availability of skilled workforce. All the companiesoutsourcing labor have almost the same characteristics [ CITATION Bou16 l 1033 ].Apart from the availablelabor force, it is a way of expanding their markets. Some companiesalso want to outsource work but lack the appropriate knowledge toindulge in the same. In that regard, how will Airbnb entice suchbusinesses?
Methodsof Conducting Marketing Research
Theglobal market tends to fluctuate a lot. For instance, during therecession period, many people cut their spending. They would onlypurchase what they need ignoring vacations among other things deemedas luxurious. Therefore, conducting a market research is a sensitiveundertaking that must be done cautiously. Due to the sensitivity ofthe market, both the primary and secondary techniques will beutilized. They include surveys, focus groups, observation, andin-depth interviews, and external sources.
Focusgroups are the most efficient in this research. All the freelanceworkers have almost similar features and can relate to one another.Since most of them use similar platforms, they can easily beaccessed. Therefore, the technique involves addressing the group andasking them insightful queries about the service, its development,their inclinations, and feedback. With the progress in technology,the activity can be conducted virtually through the internet. Airbnbcan entice the freelance workers by offering them avenues to showcasetheir skills and link them with appropriate companies [ CITATION Ana16 l 1033 ].
Surveyswill suit the companies outsourcing labor. Airbnb can carry outresearch in different countries to establish the availability ofworkforce, pricings, and infrastructures among other facets. Thesecan be obtained from external sources such as the government,universities, competitor data, and the internet. Having this diverseknowledge would help to attract companies that want to outsourcelabor. Since most corporations outsource their work to Asiancountries, Airbnb could conduct research in other continents such asAfrica. Exploring fresher platforms would entice the companies todeal with Airbnb. Observation and in-depth interviews can be used assupplements to make the market research comprehensive. Whenconducting research, interacting with the potential customers is key.In that respect, these two techniques would suit both freelanceworkers and corporations that outsource labor [ CITATION Ana16 l 1033 ].
Theabove techniques are the best in conducting a detailed marketresearch. Since the global market is highly volatile, it is importantto gather all the appropriate information to avoid mistakes. This canbe done by applying the primary and secondary methods above.
Fivestages are critical before the full commercialization of the productor service.
Step1: Opportunity Identification and Idea Generation
Thestage mainly involves ascertaining the customer needs that are yet tobe met. Venturing into a fresh market is a complex mission due to theuncertainties involved. For example, the clients and pricings mightfluctuate hindering the company’s progress. However, by using theresearch marketing methods above, it would be easier to establish theconsumer preferences. This phase will ensure the respective customerrequirements are set [CITATION Joh08 l 1033 ].
Step2: Product Concept Development
Afterestablishing the customer needs, it is vital to address all of them.At this phase, the premium, at least initially, is variety. It,therefore, involves exploring the different ideas and establishingthe best that can satisfy the customers. As a matter of fact, thewider the scope of exploration, the higher the chances of obtainingthe best ideas. Some of the methods to be utilized include archivalanalysis, forced relationships, morphological analysis, andbrainstorming. These will allow members of the company to contributespontaneously concepts that can be used to generate realistic ideas[CITATION Joh08 l 1033 ].
Step3: Concept Testing
Thoughmany ideas are generated in a corporation, not all of them arecommercialized. This phase involves converting the ideas into actualproducts and services. Many firms fail due to inappropriate concepttesting. The novel idea will be screened with the likely consumersutilizing both the qualitative and quantitative approaches. Theconcept will be tested to ascertain whether the freelance workers andcorporations that outsource labor are satisfied. It will involveconcept definition, evaluation, and forecasting [CITATION Joh08 l 1033 ].
Step4: Designing and Engineering Products and Services
Aftercompleting the above steps, it is vital to quantify the feature thatwill probably satisfy the customers. A conjoint analysis will beutilized to establish the level of each attribute and its influenceon customers. The step also includes target costing [CITATION Joh08 l 1033 ].
Atthis juncture, the aim is to ensure the designed concept to belaunched succeeds. After taking into consideration the consumerneeds, that is, freelance workers and corporations, the final bitinvolves availing the service for customer utilization [CITATION Joh08 y l 1033 ].
Anastasia. (2016, May 3). Market Research Techniques: Primary and Secondary Market Research. Retrieved from Cleverism: https://www.cleverism.com/market-research-techniques-primary-secondary/
Boundless. (2016). The different characteristics of a target market are geographic, demographic, psychographic, behavioral, and product related. Retrieved from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communications-12/selecting-the-promotion-mix-for-a-particular-product-84/target-market-characteristics-421-4126/
Dahan, J. H., Soukhoroukova, A., & Spann, M. (2014). New Product Development 2.0: Preference Markets—How Scalable Securities Markets Identify Winning Product Concepts and Attributes<sup>*</sup>. Journal of Product Innovation Management, 27, 7, 937-954. . McGraw Hill, Inc.