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Smart Card Marketing Solutions is a company established in 2003 that provides prepaid card services to customers seeking an alternative to credit cards and as a form of electronic records for merchants in regards to recording a customer buying behavior. Smart Card Marketing Solutions (referred to in this paper as SMKG going forward) offered four types on services: GoSmartCard, Velocity money, Velocity Merchant, and prepaid wireless. Each of the services, in addition to the audience, back ground on the market, strengths and weaknesses of the company, and marketing strategies.
Types of Service and Competition
Go Smart Card The GoSmartCard is a service that allows companies to use the card and incentive programs. This is offered to merchants and retailed and personal account information. The platform itself is a real-time internet based application that monitors the transaction in real-time and allow for merchants to access the information. The competition could be any company or retailer that offers gift cards. This service is offered by many retailers already. This service is already in the market and for some time now.
The service includes two card types: Pin Debit Card, which is used by customers as one would a traditional debit card and a Master debit card, which operates like a traditional Master card. Both are attractive features but there lies a flooded market with lots of competition
This service allows electronic check processing. This feature has been offered by Tele-Check for many years. The advantage to this feature is the e-commerce site that offers additional features such as private labeling on Master card and instant money transfers. Those are two attractive features.
Now prepaid wireless is a service offered, which allows the retailer does not have to pay for a product until after the sale is made. This is a very attractive feature for retailers.
Access to the Market Feasibility
The goal of feasibility is to is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: “Does the idea make economic sense?” The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative’s success. The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan. (Williams, 2011)
After review of the customer’s website, services offered, and over goal, the Market feasibility does not make sense. The market is saturated with competition such as Visa, MasterCard, Discover, AMEX, Rush Card, and many more. The company does not appear to have done the necessary research to determine the whether there is a need for this service in the market. In addition, this would hint to the fact a proper business plane was not completed and reviewed. Their validity of market acceptance appears to be assumed versus researched and studies.
Conclusion Overall, SKMG could have done more research on the need of their services. Primary market research is one of the starting points for this customer to have been able to determine acceptance into the market. Appendix I shows the current state of their stability in the market.