Marketing Plan: Product and Performance Essay

Executive Summary Mobility, latest trends and technologies are three most significant factors that customer seek today when they walk-in in an electronic item’s outlet. Years before the journey of technology started out from the calculator the most basic computer as we call it. Today that technology has emerged and the most latest is PDA (Personal Digital System), full computer in a small device to perform all of the tasks. New Nokia Mobile phone has all the features of a desktop computer, no need of a laptop. The phone is easy to carry, manages schedules, and can perform all the business related tasks. The size itself has become important apart from mobility. The concept that we are launching is of a radio and music player which is latest in the sense that you can wear it as a fashion accessory. Radio is considered to be one of the most important media apart from television and internet. The major source in use during cricket matches, exercising in the morning and during traveling for work or school. 73% of college going women (18-25) years of age surveyed tune into radio, although the channel loyalty is not there. The most frequent listening occurs after dinner time. This is different from male radio listeners as the FM channels are replacing cassettes as a music source while driving, other survey shows that one of the popular source of music are the FM stations, FM 89, 91 and 106.20 are extremely popular within the target market. The major target market for our product is the age between 15 and 26. According to the statistics, 30 million Pakistanis are aged between 15 and 24. Considered in the context of total population (approx. 180 million), 16.667% of Pakistanis are young. Statistics shows that 60% of population is under 25 that is 2/3rd and nearly 10 million are in the urban areas. GEN X and GEN Y is the most experienced  and accessed generation in the human history. This generation is the technologically accessorized generation, with everything hanging from their clothes, from cell phones to CD players, and computers are a way of life. This is a branded generation, brand names, association with the great life and other symbols are important. The emerging concept of brand association amongst teens and adults, and awareness will make our product more appealing to the customers. Our Primary objective is to achieve get our product recognized and make the consumers to get performance of the product way better than their expectations. Our Secondary objective is to make good profits and make more products like this with working hand in hand with the fashion and our way would be walking from earrings to necklaces, bracelets and other fashion accessories. Marketing Research Methods of Data collection: Basically there are two methods of data collection: 1) Primary Data 2) Secondary Data Primary Data Collection: Primary Data is that data which is collected specifically for the project at hand. The primary data for our assignment resulted from the unstructured interviews that we conducted from different friends and family members and also many strangers. Secondary Data Collection: Secondary Data is that data, which has already been collected for some other purpose but can be used as reference material. The secondary data for our assignment came from the internet, newspapers and magazines. Current Market Situation: The current market situation is that from the cheapest of phones to the most expensive, every smart phone has at least a radio in it that works from earphones that do the job of an antenna or the smart phones carry wireless radio connectivity. Other than that most phones have music players. In such a market where mobile phones are treated as a necessity from quite a long while we’d enter with a product that has a lot of internal memory, long batter and works hand in hand with the fashion. In other words, the market we are making is new where fashion and technology work together but a relatively alike market of mobile phones has a situation that cares more about apps and memory than on radio and/or music player. So, we are going to come in with focus on music players and radios that would even make consumers look different by the fashion of earring they’d carry. A new market but has links with the standing strong market of mobile phones. The Product Introduction of product: Now days, mobility is becoming an important factor in electronic devices. The concept that we are launching is of an earring radio and music player which is latest in the sense that you can wear it as a fashion accessory. We are  launching it under the brand name LAPCA. Radio is considered to be one of the most important media apart from television and internet. The major source in use during cricket matches, exercising in the morning and during traveling for work or school. Technical and Functional Aspect of the Product: This product would be an earpiece connected to a player that would be smaller than a phone. Both the devices would be connected via Bluetooth. Their range of connectivity would vary to more than 20 square meter so the consumer doesn’t need to keep the device near and playlist functions would increase the ability of product to play songs as per the mood of the consumer. Reason of using earrings with the wireless earpiece is to make the product easier for people to wear and increase the range of our target market. People would not need to get their ears pierced to wear earrings and we bring music player and radio attached to such a small earpiece that would not be noticed much (like the other offerings of attached Bluetooth earphones that appear too large). Objectives and issues: Increase the profits by at least 10% in the first year of the launch. Issue: How to increase the awareness amongst customers about this product? To create 10% market share for the product and to work to improve it further. Issue: What measure to take to identify the potential customers of the product in the market? To identify 5 potential outlets where to place the product initially. Issue: How to identify the potential outlets? Mission statement: â€Å"We are the followers of the latest trend we strongly believe that fashion develops, we provide the best and quality is never compromised. Technological flexibility and innovation are the key factors that we emphasize on while shaping a solution for our customers.† Vision statement: â€Å"Innovation† Our product Oriented Definition: â€Å"We manufacture earrings radio with music player† Our Market Oriented Definition: â€Å"To the trendy and tetchy, Moby X is the radio and music player that provides mobility and a perfect blend of fashion and technology that makes you feels different and latest than others.† Target Market Moby X will form a major share of its market amongst those people who are attracted towards the product with exclusive appearance, unique functionality, style and design. We will market our product through multiple segment strategy, as we are be targeting GEN X and GEN Y belonging to upper class and upper middle class of our society. Through multiple marketing, Moby X can achieve market position as because it is a product which provides mobility, style and fulfills the needs of the consumers. Moby X is a part of the most reliable and trusted technologies belonging to LAPCO which is using Japanese latest technology in it which would further strengthens the reputation it would acquire. Now days, there is a growing trend of adopting the inimitable style which people will definitely feel after purchasing the product. The mini chip radio and music player in the earrings itself is fascinating and will communicate on its own towards the people who are engrossed through mini products. Positioning †¢Product Positioning: Moby X would provide higher frequency range compared to other radios available in the market, will have a long lasting battery and the most important advantage that our product provides is the mix of fashion and technology that forms our distinctive attribute. Value Proposition: Moby X is a better quality product providing distinctive feature and being a leader makes it more special and different from other competing products.  LAPCO using latest Japanese technologies is most reliable and durable. Market Positioning: Moby X has been positioned in the customers mind as a part of their lifestyle it impeccable suited their personality. It has positioned on the following grounds: Made for you exclusively Lifestyle and technology Earrings with variety of colors and design Fine-looking wrapping and easy to carry Statement: â€Å"Enjoy with Style† †¢ Characteristics affecting Adoption: †¢ Relative Advantage: The first of its kind is being introduced in the market; the concept itself will attract the customer. †¢ Compatibility: Moby X higher range of frequency will make it easier to add channel and thus more value to the product. Secondly, memory of 20GB to carry your songs and making of playlists. †¢ Complexity: Moby X is easy to use and the demo CD provided with the product provides the proper guide and features to use the product. †¢ Divisibility: Moby X is an expensive product and initially no discounted rates can be offered. †¢ Communicability: The experience that customers take with them will make its use and difference spread amongst customers. Market Analysis Basis of Segmentation Demographic segmentation: Demographics refer to the characteristics of population including such factors as size, distribution and growth, because people constitute market, demographics are of special interest to market executives. Age: Our product caters to women ranging from age 15-26 yrs old. Moreover, through our advertisements we have portrayed an active woman who is working out or busy in kitchen chores. Occupation: Moby X targets women belonging to each and every type of occupation whether it is a housewife, student and working women. Income: Our product Moby X caters to upper class and upper middle class. Any one lying in the income bracket of Rs 50,000+ can afford this product Psychographic Segmentation: The psychographics of the Moby X can be analyzed by reviewing the advertisement. The lifestyle shown in Moby X advertisements portray successful, sophisticated, professional women who are active energetic and full of life. Behavioral Segmentation: Under this aspect LAPCO Company has based their segmentation on the basis of customer desired benefits. People would prefer buying our product because it’s the first ever product to be launched by LAPCO with radio and music player facility which is easy to use, and more over its attractive mix of not only radio and music player but also as a fashion accessory. SWOT Analysis Strengthens Being first of its kind to be launched in the market The smaller size The mobility The attractive package and demo included in the gadget The exquisite location of electronic gadget’s outlets in different malls Easy to use In accordance with the latest fashion Attractive mix of radio and music player hand in hand as a fashion accessory Japanese technology, one of the most reliable manufactures Weakness Limited warranty Requires proper maintenance Batteries are to be charged according to usage level thus requires cost to keep the gadget working Opportunities The customers are fond of accessories which can help extend our accessories from earrings to rings, bracelets and necklace Hearing radio can replace the care tapes as being mobile and fashionable in nature Being a new product creating a new market the competition is minimized to a great extent The distinctive attributes will outweigh the element of high price The opening of the new malls throughout the country with better electronic outlets will provide a better location to display the gadget There is an opportunity for line extension New technology is in its growing stage which helps attract customers with its distinctive attributes The interests of teenagers in acquiring latest technology will further increase the market share Computer system placed at the electronic outlets could help provide free demos of the product at the outlet A survey at the outlet about the buying experience of the product and after sale experience can help make the product more effective and increased customer satisfaction The smaller size and mobility if appreciated could provide line extension for the product Threats The electronic market is still under developed in Pakistan The fluctuating electronic and political conditions of the country can hinder the sale of the product Less awareness amongst the public about the electronic items The training of sales person for the product Competitors can come up with a similar and better product before our product is established The higher price of the product could lead to duplicate products in the market The health conscious people could resist the product The fashion conscious people may not take the initiative to buy the product The analytical buyer Marketing Environments (PEST ANALYSIS) Political: The fluctuating political environment in the country can be dangerous. Since the product being developed is manufactured in another country the support of the government is required to keep the government conditions in import and export stable and to strengthen relationships with the other country to grow the business further. Economical: The product that is being launched is an expensive product the economic conditions will determine the national income or the buying power of the consumer which indirectly will determine whether the people would be willing on the products that are not part of their basic needs. Social: Since the product is an earring radio and music player which would be fixed in an earring placed quite close to the ear can be considered as dangerous for the ear. Proper awareness about the product and the setting of the frequencies accordingly so not to affect the ear would have to be justified to the people. Technological: Pakistan is developing technologically and further awareness and development will assist in improving the product’s functionality. Competitor Assessment COMPETITOR ANALYSIS Moby X is competing in portable media industry. Major Competitors: Our major competitors are all those manufacturers who are specialized in and dealing with microelectronic items, who believe in size and design of product with quality. Moby X direct competitors are small radios (ear piece) and mp3 players that can fit in ear easily. COMPETITIVE ADVANTAGE Moby X is not just a FM radio with music player but it is also a blend of fashion and technology. Long lasting Japanese battery gives it an edge over other mini radios and music players that have maximum life of 2-48 hours on continuous use. Providing maximum FM band range from 87-108 MHz among its competitors who offer mini radios with FM band 88-108 MHz Furthermore, adding value to the music player with 20GB built-in memory which wouldn’t look small for at least 10-15 years from now. COMPETITIVE STRATEGIES Differentiation: Moby X is an innovation in the arena of radios and all kinds of music players. It gives connectivity to the outside world in a way that adds value and beauty to the face. Focus: Moby X is designed especially for upper middle class and upper class urban population including GEN X AND GEN Y, fashion followers and trend setters. COMPETITIVE POSITION Multiple Markets: We are following the multiple market strategy for Moby X by focusing more towards the upper class and upper middle class of the society. Channel and logistic A value delivery network is made up of the company, suppliers, distributors and ultimately customers. Here will be a layer of intermediaries that will perform work in bringing our product and its ownership closer to the final buyer. For our earring radio and music player we will have both a direct and indirect marketing channel. We will have a customer marketing channel. Since our product is new we need to do personal selling and convince consumers to buy our product. Then eventually as we gain a foot hold in the market we will have retailers selling our product. Marketing Strategy MARKETING MIX PRODUCT CLASSIFICATION: Moby X is broadly classified as consumer product and under this category we define it as a specialty product because it is a perfect mix of style and technology. It involves strong brand preference and loyalty, special purchase efforts by consumers, little comparison of brands and low price sensitivity. LEVELS OF PRODUCT Core Product Moby X provides a solution to its users that connect them to the global world and at the same time add value to their beauty. It is smallest in size but greater in quality and style that’s what the consumers want. Actual Product Moby X, an earring radio and a music player. Augmented Product Customers are provided with the free demos of the product on computer system installed at the outlets and for further understanding, instruction booklet is also provided with Moby X. It includes 3 years’ money back warranty and a pair of fabulous earrings along with the product. Customers are encouraged to share their views about the buying experience of the product and after sale experience through surveys conducted at the outlets. An exclusive website is designed to cater its customers for solving all  their queries regarding the product. Online purchasing service is also available. PRODUCT COMPOSITION Product Quality: Moby X works great, everywhere in the world, under brand name LAPCO using Japanese microchip technology and providing the FM band from 87 to 108 MHz’s Stereo-sound is really excellent plus 3-years money back warranty is also given. Product Features: Push-button Auto Seek Microchip Technology so you can immediately and perfectly tune in stations (Automatic FM Tuning). Provides high quality stereo sound. Long last Japanese battery included. 3 years (Limited) Warranty. Size – (1/3x 1/3 x 3/8) mm is the size of radio chip. 30 x 20 x 5 mm is the size of the earring. Weight – 1/2 oz is the weight of the earring radio. Ideal for use in parties, sports, travels, hiking, working, Jogging, bike riding, boating, fishing, picnics, reading, camping, skate boarding, gift giving, foot and vehicle surveillance, to pass the time while waiting for subject, anywhere, everywhere, in the form of earring as simple microchip (radio). A music player memory of 20GB built-in. Product Style and Design: It comes in many splendid colors with different style for female. It is designed in a way so as to increase portability. BRANDING Brand Equity: Moby X will establish it with the passage of time because of its good quality and better understanding of customer needs. Brand Name Selection: Moby X is selected as the brand name because it defines the mobility and easy to carry feature of the product and X signifies the extra factor that we  provide to our customers in the form of earrings (fashion accessory). Brand Sponsorship: LAPCO is manufacturer’s brand. Brand Development: No extension. Packaging: Moby X comes in a square and heart shaped gift box. Labeling: All the important information is mentioned on the label. The label contains the name of the product, name of the manufacturer and distributors, warranty limit, warnings, guidelines on usage. Product Support: A booklet on guidelines regarding the product is provided with Moby X. Free demo CD is also given. Product Mix: Initially Moby X is introduced in the form of earring but with the passage of time it will offer in other versions also like in the form of bracelets, rings, and lockets. Product Life Cycle: Our product is at the introductory stage of product life cycle stage. PRICE Marketing Objectives: â€Å"To create a market share and to stand out as distinct product amongst the other competitors† Marketing Mix Strategy: The price has been decided based on the competitors and customer needs and requirements. The price is aligned with other marketing mix covering the promotion, placement and product. Cost: The organization has tried to achieve economies of scale but not the cost of quality. The cost is being monitored and is kept to a minimum by choosing the best deals given by the supplier and managing the cost accordingly. Organizational Considerations: The price set has been influenced by different functions of the organization including the finance, manufacturer, sales and marketing and the higher  management. PRODUCT PRICING STRATEGY Comparing competitor’s pricing CompetitorPrice Sinclair XI Button RadioRs. 2304.93 FM Mini Radios Rs.719.44 ZI AM Radio Rs. 8405 Tiny FM Radios (China Toy Factory Inc)Rs.1200 Mini Mp3sRs. 1500 (starting from) Competition Based Pricing: We are following the growing rate pricing according to which we fix our price after considering all the factors as to Rs. 3500. PLACEMENT The product would be sold through â€Å"Indirect Marketing Intermediary†. The product will be sold through push strategy that is product would be first distributed to the wholesalers and then to retailer. The retailers would assist in creating contact with the other retailers which would expand the network and add value. PROMOTION Moby X being a new product in the market would require intensive advertising. The positioning and the idea behind the brand selection would be used as a basis for advertisements and the advertisements would be informative. ADVERTISING Radio: Radio FM channels would be able to attract the major cream who could use our product and create a positive word of mouth for others. Since they being the regular radio listeners would be excited to use this product as they could carry the radio with them. Newspaper: Moby X is an expensive and new product. There is need to create awareness amongst people that such a product exists. ‘Dawn’ newspaper would be a better choice to advertise being one for the most popular newspapers in Pakistan. A full page would be dedicated to advertise the product providing  a detail know how of the features and distinctive attributes. Apart from ‘Dawn’ the other newspaper that the product would be advertised in are ‘The News’ and ‘Daily Times’. Magazines: Moby X being a technology product it would be advertised in magazines as ‘SHE’ a leading magazine. Another magazine that is famous amongst out major target segment the teens is ‘Young Times’. It is Dubai based magazine is especially for kids. Since it is a fashion product also magazines like SHE, STYLE, SYNERGYZER and MAG would also be used to advertise the product. Billboards: The locations where we have decided to place our advertisements are all the upper class areas in the populated cities of Pakistan. For instance the major areas identified all the other malls where luxury electronic item’s outlets are available advertising would be done by placing billboards. In Karachi, at Teen Talwar, Boat Basin, Shahrah – e – Faisal and other markets like Tariq road, Saddar Mobile mall and the road that leads to Jinnah International Airport. Television: The few major channels as HUM TV and GEO TV will be given the task to advertise the product. Websites: Msn.com/Click on line a website providing information regarding new technologies, funmaza.com a famous website viewed by most of the Pakistanis and Apniisp.com that offers all the latest songs. Sales Promotion: One free pair of earring apart from the one already provided in the package would be given with the product. Public relations: Brochures providing details of the safety of using the product would be distributed in public places. Articles about the working and flexibility in use would be published in a leading magazine to inform the public about the safety in using this product. Action Programs July: We will launch a sales promotion campaign in Karachi city which should be estimated at around RS. 2 Million. During this period our aim is to make the consumers aware of the product through excessive adverts it is  essential for us to educate our dealers and consumers properly. Our main awareness campaigns will be concentrated toward the television and internet it will fix in a relatively low and economical budget. August: Increase our relative market share and launch our product in other major cities of Pakistan i.e. Lahore, Islamabad. September: We will start an integrated internet campaign targeting young college students. The campaign will show the functions of Mob X. This campaign will be supported by online ads. October: We will hold a trade sales contest offering bonus to retailers who sells the most Moby X during one month period. November: We will be launching our online store that will enable us to make direct sale with customer. Anyone can place an order via email and we will deliver the product at the given address and payment on delivery. Furthermore, customization over earring designs would be launched. December: We will look forward to enter the international market and depending on the situation we face at that time we will alter our marketing strategies. Implementation and Control Plan Goals: After the launch we will look out the awareness and recognition of Moby X among the target customer. The targeted sales, profits, availability and elevated market share are also major parts contributing towards achieving our goals. Performance: Measure the performance and activities of the outlets, their interactions with our target customers. We will measure the performance by setting different tests after the first launch of Moby X. Tests will be encompassed of surveys, personal interviews, focus groups and via e-mails. Evaluation: The results of the surveys, mails and others will be then synchronized for the evaluations. Evaluation is conducted to identify the gap between the expected and actual performance. Corrective Actions: This is the last control which is set and applied if there is a difference amongst the expected and actual performance Moby X and we then otherwise will take the corrective actions to close the gap. Contingency Plan We have launched this earring radio and music player under the brand name LAPCO so value and prestige is associated with this product. We have used the latest Japanese Technology in our product through which frequency and signal of radio can be cached easily. But the problem can occur in our product is that at some places user might not find tune into radio and their might be some problem in signal catching. To combat with this problem, we have used the latest Japanese technology as stated before and will use more advanced technology in our product in future in order to satisfy our customers and provide them with a delight of getting to hear news and be updated in an area where most signals don’t even work.