Market Analysis of ASUS Eee PC

By Helen Mitchell,2014-06-16 14:27
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    Market Analysis of ASUS Eee PC





    Market Analysis of ASUS Eee PC


    Asus Eee PC is a subnotebook also called netbook computer line from ASUSTeK Computer Incorporated, and a part of the ASUS Eee product family. At the time of its introduction in late 2007, it was noted for its combination of a light weight, Linux operating system, solid-state drive (SSD), and relatively low cost. Newer models have added the options of Windows operating systems and rotary hard disk drives (HDD).

    The first Eee PC was a milestone in the personal computer business, launching the netbook category of small, low cost laptops. According to ASUS, the name Eee derives from "the three Es," an abbreviation of its advertising slogan for the device: "Easy to learn, Easy to work, Easy to play".

    Asus shipped 700,000 Eee PCs in September 2008 and total shipments reached 1.7 million in the third quarter of 2008.

Segmentation variable

    1. Demographic Segmentation

    We can segment the market into four parts by age, which include people under 18, people between 18 and 39, people between 40 and 65, and people above 65. They have different characteristics.

    Age bracket Characteristics Demands

    People under 18 Advocate freedom, confident PCs with high performance

    People between 18 Emphasize light work, ppur easy PCs which can do complicated

    and 39 life design and office work

    Prudent, calm People between 40 PCs which can fulfill their basic

    and 65 office and entertainment needs

    People above 65 Pursue frugal and simple life PCs which can browse the Internet


    Market Analysis of ASUS Eee PC

    a) People under 18: most of the people in this age bracket like to play computer games, which

    require PCs with high speed and performance. Apparently Eee PC is not their best choice

    because Eee PC is not qualified to run the applications which need high-speech processor

    and memory. So the market is relatively small.

    b) People between 18 and 39: most of the people in this age bracket are the ―Office

    Generation‖, they need to do a lot of complicated design and office work. So they also want

    a computer with high-speed CPU and GPU so that it is easy for them to do their work. In

    this case, Eee PC is not their best choice. But most of them are affordable to buy a second

    PC, now Eee PC is their best choice because Eee PC is easier to carry and can meet their

    needs of entertaining. So the potential market is enormous. A statistics by Nielson shows

    that 60% people would like to buy a second PC just for entertaining. Thus, ASUS tries its

    best to inspire people in this age bracket to buy the products.

    c) People between 40 and 60: most of the people in this age bracket do not use PCs very often.

    They use PC only for basic office and entertaining needs. So Eee PC just satisfies their

    needs. Though this market is relatively enormous, people in this age bracket lack the

    motivation to buy PCs. Hence, ASUS spends lots of money on the publicity to attract their

    attention and exploit the market.

    d) People above 65: most of the people in this age bracket seldom use PC. Some with

    enlightened mind are willing to use PCs which can browse the Internet and get information.

    So the market is also enormous, but it is hard to exploit.

    Generally speaking, ASUS should focus on the two important markets people between

    18 and 39 and people between 40 and 60. Both markets have enormous potential. How to exploit the markets is the key to the success of Eee PC.


    Market Analysis of ASUS Eee PC

    2. Behavioral Segmentation

    From these aspects, we can segment the market into 3 parts social elites, business users,

    young users.

    Consumer groups Characteristics Demands Models

    Social elites Eee PC 1018P Noble, elegant and PCs with good design

    luxurious and slim body

    Business users Professional Eee PC 1016P PCs with good battery

    life and high security


    Common users Eee PC 1015PED Emphasize light work, PCs with good gaming

    pursue easy life and entertaining


    a) Social elites: This group of people pursues noble elegant and luxurious life, so they want

    PCs with good design and slim body to show their dignity.

    b) Business users: This group of people is professional users; they often travel around the

    world and conduct business. Hence they require PCs with good battery life and high

    security performance to guarantee high data speed processing and reliable preservation.

    c) Common users: This group of people often emphasizes light work and pursues easy life.

    Thus, they would like to have PCs with good gaming and entertaining experience.

    In order to meet each market demand, ASUS presents three models.


    Market Analysis of ASUS Eee PC

    Marketing strategies

    ASUS‘s marketing strategies can be divided into 4 parts

    Methods Details & Purposes

    1. TV ads: fashionable and elegant, aims to Advertisement

    Ascending consumers desire to buy

    2. Billboards: locates in the CBD, shows large

    and vivid pictures of Eee PC, aims to enhance

    brand awareness.

    3. Magazines: choose professional IT magazines

    (Computer DIY, RUN! PC) to win consumers.

    Choose fashionable magazines (VOGUE,

    BAZAAR) to win consumers who pursue


    1. Applicant Store such as Guo Mei and Su Ning Distribution Channels

    2. ASUS Online Store

    3. Small distributors

    4. TV shopping channels

    1. Release white-color limited model for Promotion

    Christmas sale to attract consumers.

    2. Offer additional gift, for example, if

    consumers buy Eee PC, they can get a wireless

    mouse or earphone.

    3. Launch festival promotion

    1. Negotiate with telecoms companies, aims at Cooperate with telecoms

    students and people who like to surf the companies

    Internet. For example, ASUS works with Far

    Eastone Telecommunications on the wireless

    card with Eee PC plan. If consumers sign a

    two-year contract with Far Eastone, they can

    get access to wireless network for 3 years and

    get a Eee PC only at a price of NT$900.


    Market Analysis of ASUS Eee PC

    SWOT analysis

     Strengths Weaknesses

     1. Cheaper than traditional notebook 1. Small screen and keyboard, low

    2. Emphasize easy, exciting can quality display Internal

    excellent 2. Not have optical drive, consumers

    3. Light weight can slim body have to buy a USB optical drive factor

    4. Good user experience, easy to use 3. Low speed and performance, run

    applications sluggishly

     Opportunities Threats

     1. Install Windows XP instead of 1. Owing to the low entering

    Linux to attract consumers who are thresholds, many PC manufacturers

    not familiar with Linux copy ASUSs originality and release

    External 2. Cooperate with telecoms their netbook.

    companies to launch additional 2. The price of the traditional notebook factor

    accessories such as 3G network gradually drops, banging the Eee PC

    card and wireless network card. It market

    is expected to attract more 3. Apples revolutionary iPad is Eee

    PC s biggest competitor consumers.


    Market Analysis of ASUS Eee PC References

    1. ―Asus‖, ―Asus Eee PC‖, ―Marketing‖, ―SWOT analysis‖

    Wikipedia. Web. 1 June. 2011.

    2. Philip Kotler, Gary Armstrong, Principles of Marketing Thirteenth Edition, Pearson

    Education, Inc. 2010

    3. Stephen P. Robbins, Mary Coulter, Management Ninth Edition, Pearson Education, Inc.


    4. Gareth R. Jones, Introduction to Business, McGraw Hill Companies, Inc. 5. 林贞美;回首创业路;施崇棠最感谢施振荣. 台湾?工商时报;2007.10.28 6. 魏兴中; Eee PC年出货超500万台. 台湾?联合报; 2008.04.21 7. 吴元彰; ASUS Eee PC 以台湾市场为例 . 台湾?数位时代 172

    8. 林淑慧;华硕易PC与远传合作 台湾?工商时报; 2008.08.19 9. 张恩涛、卢论纬; 从消费者端创新;就有品牌价值. 台湾?数位时代 169 10. 张恩涛、卢论纬; 个人电脑掀起台式创新. 台湾?数位时代 169


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