Acknowledgements
We would sincerely like to thank Miss Ayesha Khalid for being so cooperative and encouraging through out the semester, she has delivered the course very loyally and sincerely due to which we have a good understanding of our course, this project has given us a wider and informative prospect, it was really a reflective and a thought provoking project. Finally, we would like to thank our family and friends for supporting us during the research of this project and for contributing valuable inputs to the research work.
Table of Contents 2|Page
S.No.
Content
Page
1.
Executive Summary
4
2.
Marketing Research
5
3.
The Product ( Good or service) and Business Idea
6
4.
Market Analysis
9
5.
Competitor Assessment
13
6.
Marketing Strategy
15
7.
Forecast and Budget
22
8.
Implementation and Control Plan
24
9.
Contingency Plan
25
10.
Questionnaire
26
11.
Survey Results
28
Executive Summary 3|Page
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 able 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 b usiness related tasks. The size itself has become important important apart from mobility. mobility. The concept that we are launching is of a radio 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 106.20 106.2 0 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, 25 million Pakistanis are aged between 15 and 24. Considered in the context of total population (approx. 150 million), 16% 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 g reat 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.
Marketing Research Methods of Data collection: Basically there are two methods of data collection: 1) Prima rimarry Dat Dataa 2) Seco Second ndar ary y Data Data
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Primary Data Collection: Primary Data is that data which is collected specifically for the project at hand. The primary data for our report resulted from the questionnaires filled by girls and adult women belonging to a different age group and income level and some unstructured interviews were conducted. 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 report came from the internet, and magazines.
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 which is latest in the sense that you can wear it as a fashion accessory. We are launching it under the brand name SONY. 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.
5|Page
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 cu stomers 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: “We are the followers of the latest trend we strongly believe that fashion develops, we provide the best and quality is never compromised. Techn ological flexibility and innovation are the key factors that we emphasize on while shaping a solution for our customers.”
Vision statement: “Innovation” Our product Oriented Definition:
“We manufacture earring radios”
Our Market Oriented Definition:
“To the trendy and techy, MobyX is the radio that provides mobility and a perfect pe rfect 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
6|Page
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 MobyX 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 bel belong ongin ing g to Sony Sony whic which h is usin using g Japan Japanes esee late latest st tech technol nolog ogy y in it whic which h woul would d furt further her 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 in the earrings itself is fascinating and will communicate on its own towards the people pe ople 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 no recharging is required 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. Sony 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:
“Enjoy with Style” •
Characteristics affecting Adoption: Relative Advantage : The first of its kind is being introduced in the market; the concept it self will attract the customer.
•
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Compatibility: Moby X higher range of frequency will make it easier to add channel and thus more value to the product. 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 an d 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:
Demo Demogr graph aphic icss refe referr to the the chara characte cteri rist stic icss of popul populat atio ion n incl includ udin ing g such such fact factor orss as size size,, distribution and growth, because people constitute market, demographics are of special interest to market executives. Age:
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Our Our produ product ct cate caters rs to wome women n rang rangin ing g from from age age 15-2 15-26 6 yrs yrs old. old. More Moreove over, r, thro through ugh our our advertisements we have portrayed an active woman who is working out or busy in kitchen chores. Occupation: MobyX targets women belonging to each and every type of occupation whether it is a house wife, student and working women.
Income:
Our product MobyX 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 MobyX can be analyzed by reviewing the advertisement. The lifestyle shown in Moby X advertisement portrays successful, sophisticated, professional women’s who are active energetic and full of o f life. Behavioral Segmentation:
Under this aspect Sony 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 launched by Sony with radio radio facility facility which which is
easy to use, use, and more over its attract attractive ive mix of
not only radio but also as an 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 electronic gadget’s outlets in different different malls ( e.g. Alfatah store, HKB, Pace etc.)
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•
Easy to use
•
In accordance with the latest fashion
•
Attractive mix of radio and 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 ou r 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 mall culture in Lahore with better electronic outlets will provide a better location to display the radio 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 t5he product more effective
10 | P a g e
•
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 willing on the products that are not part of their basic basic needs. Social:
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Since the product is an earring radio 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 micro electronic items, who believe in size and design of product with quality. •
Moby X direct competitors are small radios (ear piece) that can fit in ear easily. These are namely:
i. ii. iii.
Sincl nclair XI XI Butt utton Radio FM Mini Radios ZI AM Radio
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iv. iv.
Tiny Tiny FM Radi Radios os (Ch (Chin inaa Toy Toy Fact Factor ory y Inc Inc))
Other indirect competitors are mobile devices enabled with FM radios. These are:
•
i.
Siemens
ii.
Samsung
iii.
Nokia
iv.
Motorola
v.
LG
vi.
Panasonic
vii.
Sanyo
viii.
Sendo
ix.
Sharp
x.
Sagem
xi.
Phillips
COMPETITIVE ADVANTAGE •
Moby X is not just a FM radio it is blend of fashion and technology.
•
•
Long lasting Japanese battery gives it an edge ed ge over other mini radios that have hav e 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
COMPETITIVE STRATEGIES: Differentiation: Moby X is an innovation in the arena of radios. It gives connectivity to the ou tside world in a way that adds value and beauty to the face.
Focus:
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Moby X is designed especially for upper middle class and upper class urban population including GEN X AND GENY, fashion followers and trend setters.
COMPETITIVE POSITION Multiple Markets: Moby X by focusing more towards the upper We are following the multiple market strategy for Moby class and upper middle class of the society.
Marketing Strategy
MARKETING MIX 14 | P a g e
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.
•
•
•
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.
Also included 3 years’ money back warranty and a pairs of fabulous earrings along with the product.
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•
•
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 SONY using Japanese microchip technology 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, 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, everywhere, in the form of earring as simple microchip (radio).
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
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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:
SONY 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.
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PRICE
INTERNAL FACTORS Marketing Objectives:
“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. p roduct. 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. 18 | P a g e
PRODUCT PRICING STRATEGY Comparing competitor’s pricing Sno.
Competitor
Price
2.
Sinclair XI Button Radio
Rs. 2304.93
3.
FM Mini Radios
Rs.719.44.
4.
ZI AM Radio
5.
Tiny FM Radios (China Toy Factory Inc)
Rs. 840 Rs.1200
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 “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.
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PROMOTION
Moby X being a new product in the market would require intensive advertising. adv ertising. 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 wo uld 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 is Dubai based magazine is especially especially for kids. Since it is a fashion product also magazines like SHE, STYLE and MAG wo uld also be used to advertise adve rtise the product.
Billboards:
The locations where we have decided to place our advertisements are Liberty area its main round about area, Ghora Chowk while exciting Defence we go to cavalary ground, the third location is Ferozepur road and last location is M.M Alam A lam road. Apart from the major areas identified all the other malls where luxury electronic item’s outlets are available advertising would be done by placing billboards. Television:
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The few major channels as Masala TV, Style 360, HUM TV and MTV Pakistan 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 b y most of the Lahorians. 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 p roduct 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.
Forecast and Budget The factors considered for budget are: • • •
Different advertising companies rates have been taken According to time, rates can differ Most of the values are estimates.
Category
Estimated Cost
Research Reasearch firm Fee
140,000
Web research
60,000
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Independent Research
18000
Other
10000
Research Cost Total
Rs. 228,000
Promotions Product Discount
5000
Special Offers
20000
Promotion Cost total
Rs. 25,000
Advertising Brochures
10,000
TV
800,000
Radio
18000
Newspaper
15,000
Magazines
12,000
Web
10,000
Billboards
1700,000
Advertising Cost Total
Rs. 2565,000
Public Relation Employee Promotions Sponsorship
10,000 12,000
Public Relation Total
Rs. 22,000
ESTIMATED MARKETING GRAND TOTAL
Rs. 2840,000
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IMPLEMENTATION AND CONTROL PLAN Goals:
After the launch we will look out the awareness and recognition of MobyX 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 MobyX . Tests will be encompassed of surveys, personal interviews, focus g roups and nia emails. 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:
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This is the last control which is set and applied ap plied if there is a difference amongst the expected and actual performance MobyX and we then otherwise will take the corrective actions to close the gap.
Contingency Plan We have launched this earring radio under the brand name Sony 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 catched easily. But the problem can occur in our product is that at some places user might not find tune into radio and an d their might be some problem in signal catching. To combat co mbat 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
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Appendix: QUESTIONNAIRE We the students of Lahore School of Economics are working on a research and need your assistance. By sparing some time out to fill in the survey form would be appreciated. PERSONAL DETAILS
Your name (optional): Age group:
15-18 Household income:
19-22
22-26
26 and above
20,000-30,000
30,000-40,000
50,000 or above
10,000-20,000
ABOUT YOUR LIKES AND DISLIKES
1. Are you fascin fascinated ated with with the electro electronic nic gadgets gadgets introd introduced uced in the the market? market? Love it Do notice sometime Like to know Never about new gadgets
2. What attracts you towards towards an electronic gadget? Rate the the following from 1 (for least preferred) preferred)
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to 5 (for most preferred)
Look
Functionality
Lower cost
New techno logy
Warranty
Others:__________
3. Do you follow the fashion trends? trends?
Regularly
Sometim
es
Occasio
Never
nally
4. Which fashion accessory attracts you the most?
Earr
Bracelet
Necklace
Others:__________
ings 5. How many many times times do you you liste listen n to a radio radio in in a week? 1-2 times 3-4 times 4 or more times
Never
6. What is the most frequent frequent medium that you use during during traveling to listen to music music or news?
Radio
Newspaper
Car TV
WAP enabled mobile phones
Others: __________
7. When buying buying an electro electronic nic item item you you consider consider cost as your? your?
First priority
Last priority
Depends upon the quality of the product
8. Do you consider size as an important factor when buying buying radio or a recorder?
Yes
No
Doesn’t matter much
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9. What is the most important important quality you would would like an electronic item to have? have?
Mobility
Compatibility
Durability
Origin (as Japanese technology )
Others: ___________
SURVEY RESULTS AGE 15-18 19-22 22-26 26 and above 26 and above 10%
15-18 20%
22-26 30% 19-22 40%
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INCOME
10,00020,000 20,00030,000 0% 10% 30,000 40,000 20%
10,000 - 20,000 20,000 - 30,000 30,000 - 40,000
50,000 - above 70%
50,000 - above
Do you follow follow the fashion trends?
Occasionlly 10%
Never 0% Regulary
Sometimes 30%
Sometimes Regulary 60%
Occasionlly Never
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Which fashion accessory attracts you the most?
Others 10% Necklaces 20%
Earring Earring 50%
Bracelets Necklaces Others
Bracelets 20%
How many man y times do you listen listen to radio in a week? Never 0% 4-or more Times 10%
1-2 Times 20%
1-2 Times 3-4 Times 4-or more Times Never
3-4 Times 70%
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When buying an electronic item you consider cost as?
Depends upon the product 50%
First Piriorty 30%
First Piriorty Last Pirioty
Last Pirioty 20%
Depends upon the product
What is the most important quality you w ould like an electronic item to have?
Origin 10% Durability 20%
Others 0% Mobility 50%
Mobility Compatibility Durability Origin
Compatibility 20%
Others
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