Dexit Analysis

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Situation Analysis

Marketing Analysis:
• Dexit’s objective was to launch a wireless payment system as the standard payment method for small dollar amount retail transactions in the Canadian Market.
• Company has strong investment financing behind it in the form of two large Canadian banking firms.
• Fast 3 second transactions via RFID would create simple convenient transactions that could be tracked easily by consumers.

Environment:
• “Big 6” Banks controlled the Canadian industry Current market via issuing Credit and Debit cards and the corresponding retail processing systems.
• Canadian shoppers were routine users of electronic payment methods
• Customers were satisfied with the credit and debit payment methods and viewed
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• All customers in the high volume geographic area mentioned
• Particularly merchants who survive on high volume, low dollar amount transactions
• All merchants in the Toronto, Montreal and Vancouver areas
• Cash only businesses in the 3 high volume geographic areas previously mentioned

Pricing Strategy:
• Charge the merchants for the hardware
• Charge a transaction fee to the merchant
• Charge a transaction fee to the consumer

Product Launch:
• Canada
Justification and Implementation:
Dexit should target all merchants that accept Debit and Credit transactions in the geographic areas in which electronic usage is most prevalent. The culture of using electronic payment is already established in Canada and RFID will be more readily accepted in the areas where the most electronic payments occur. In areas outside of the three metropolitan locations mention, Dexit should target younger consumers who will be more willing to enroll and replenish the accounts via the internet. All consumers who engage in high frequency low dollar amount transactions should be targeted as well because the premise of the technology is ultimately to find a safer, faster alternative to

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