Marketing

[pic] BACHELOR OF BUSINESS ADMINISTRATION WITH HONORS Semester 07 / Year 03 BBPM2203 MARKETING MANAGEMENT 2 MATRICULATION NO : 760305105359001 IDENTITY CARD NO. : 760305105359 TELEPHONE NO. : 013-3479347 E-MAIL : Zoque76@Yahoo.com LEARNING CENTRE : Serdang Raya Learning Centre TABLE OF CONTENT Page 1.0 Introduction 2 2.0 New Product Development 2 2.1 SWOT Analysis 3 3.0 Marketing Strategy 5 3.1 Target Market 6 3.2 Positioning 7 3.3 Product Lifecycle Management 8 4.0 New Product Line and Brand Management. 9 5.0 Conclusion 11 1.0 INTRODUCTION Smartphone are considered as today’s most important form of consumer tech. Since the iPhone, Smartphone are no longer just for business; they are considered as a scaled down computers that keep you in touch, keep you entertained and keep you informed, anytime and anywhere. We probably spend more time with our Smartphone than we do with our family, so having the right relationship with the keys, email, internet, store information’s, entertainment along with the use of a mobile phone just in one device. In the past, only a few people want Internet, video, and PDA features in one device because of the high price. The market will rapidly increase in coming years due to lower prices and greater power provided by the device. The smart phone market is still relatively small compared with general phone market. The Smartphone was once to be considered as an ugly device that could sync with the office email and calendar. Then the iPhone, happened. Now the Smartphone is a mini computer, media player and A-GPS unit controlled from wide open acres of touch screen and everyone’s got one. Our company will find your ideal Smartphone life partner. To achieve that, we did research on three of the latest Smartphone in the market, just to get a view of the future from the company that created the Smartphone. Finally we are able to provide a new brand of Smartphone for Malaysian with career and metropolitan life style. M-Phone Technology Sdn Bhd has found the new technology for Smartphone, and it is named mTouch Smartphone, where the M stands for Malaysia. 2.0 NEW PRODUCT DEVELOPEMENT The mTouch smartphone is a Google Android device that combines the functionality of a Smartphone and tablet PC with a digital camera. It is a sleek, sexy Smartphone that is thinner than other Smartphone in the market. It is also an alternative choice to both the iPhone and the iPad. Android™ is a new mobile operating system developed by Google. It has a totally open source, which allows anyone to use it without having to pay fees. That means it is constantly new and evolving, with thousands of new apps available on the Android™ Market. It also comes with pre-loaded Google services like Gmail, Google Maps and YouTube. Everything will be at the tip of the finger. This is a first product to be released by mTouch Technology and will be launched in Malaysia . Launching a new product can grow market share in an existing market or help break into a new one. Before we begin implementing the new products, we had perform market research. Based on this research, we have identified the problems and how to solve them. 1. Evaluate the current market: Research is an essential first step. Albert Einstein said, “If we knew what it was we were doing, it would not be called research, would it'” 2. Identify the problems: After you have examined the broad scope of the market, it’s time to identify any under-served customer needs. Knowing the market’s needs and how it is currently serviced provides you with key information that is essential in developing your product/service and marketing plan. 3. Determine how you can solve them: At this the point you are beginning to hone-in on your market opportunity. The research and analysis has been done, now it’s time to stretch your creative thinking to solve the current market problems. “A business has to be involving, it has to be fun,” says billionaire Richard Branson, “and it has to exercise your creative instincts.” For that reason we conducted the SWOT Analysis. 2.1 SWOT Analysis Strengths Innovative – The mPhone has an innovative touch screen that is patented and unmatched by any other mobile product today. It also has many functions of other mobile products all in one device. Compatibility –The phone will work with Google Android products, allowing for wireless connectivity to the big screen. Google Android compatibility means that the mPhone has limitless potential for upgradeability. Ease-of-Use – The all-new touch screen interface making operations extremely intuitive. It is radically different from those of other Smartphones or PDAs that recognizes multi finger gestures, just as the human hand normally behaves. The Google Android application imbedded into the mPhone assures users will easily recognize what they can do Price – At RM1500, the mPhone would be sold at a reasonable price for its value. It outperforms any other PDA or smart phone on the market and the convenience of having multiple features combined into one-device increases its overall value. Quality – The mPhone has one of the brightest and most scratch resistant screens in the market. It also has a fine metallic finish that is durable and light. The software suite included is also unsurpassed with their ease of use and resistance to computer viruses. Weaknesses Image – The mPhone is not targeted towards business people, which most smart phones have targeted. User Interface – Touch screen interfaces suffer from the problem of “gorilla arm,” in which long-term use of a flat, solid surface for input becomes uncomfortable. Opportunities Increasing demand and expansion to a new target segment – M-Phone Technology will continue to target the business productivity market who wants an all in one computing solution. But as technology advances and smart phones get cheaper companies also have a great opportunity to target people who want entertainment. Upgradeable – Since software on the mPhone can be updated, it allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable. Threats Increased competition – Smart phones are easier to make now more than ever. More companies may enter the market, given that there are few barriers to entry other than patents. Competitors or even Apple contractors can maneuver around patents to create similar devices. Downward pricing pressure – The mPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Difficulty expanding into world market – There is less hype and interest since smart phones are better known and already widely used. 3.0 Marketing Strategy OBJECTIVES – To sell 150,000 units of mPhone in the first year, and controlled 15% of the Smartphone market in the second year. An important objective will be to extend on the mPhone brand name and link to the established meaningful positioning. mTouch Technology has invested heavily on the mPhone brand and we plan to capitalize on the brand. We will extend on mTouch Technology image of innovation, quality, and value. In addition we will measure the awareness and response in order to make adjustments to our marketing campaigns as necessary. 3.1 Target markets. mPhone’s marketing strategy is to differentiate the mPhone from other PDA’s on the market. One of our primary customer targets is the middle-upper income professional that need one portable device to coordinate their busy schedules and communicate with colleagues, friends and family. Our secondary consumer targets are high school, college and graduate students in Malaysia who need one portable multifunction device. Mainly this market will be replacing their iPod and cell phone with the mPhone. Our primary business target is to partner with large cell phone service providers, Telekom Malaysia, Maxis, Digi and Celcom, as well as large enterprise software firms where information is critical to the end user. Our secondary business target is mid-to mid-size corporations that want to help managers and employees stay in communication or access critical data on the go. This market segment will consist of companies with $10-$50 million in annual sales. These are entrepreneurs and small business owner who need an all-in-one device for work and play. 3.2 Positioning Using product differentiation, we are positioning the mPhone as the versatile, convenient, value-added device for personal and professional use. The marketing strategy will focus on the convenience of having one device for communication, but also music, pictures, and video, and full Internet access. The mPhone will be promoted as both professional and hip for all type of users. 3.3 Product Lifecycle Management The Product Lifecycle Management (PLM) system is the first place where all product information from marketing and design comes together, and where it leaves in a form suitable for production and support. Product life cycles can be divided into 4 stages, which are: a. Introduction stage; b. Growth stage; c. Maturity stage; and d. Decline stage. a. Introduction Stage. The product is newly introduced in the market. Consumers are not aware of the product and profits that are very low or negative at the moment. This is caused by the heavy expenses incurred during the product introduction stage and low sales volume. The market positioning strategy which should be followed by companies at the product introduction stage are: a. Increase the volume of advertisements to create consumer awareness. b. Increase the number of distributors to distribute the products to the consumers. c. Pricing the product high or low depending on the suitability of the market. d. Pricing the product high if the product is new and has not existed in the market before. b. Growth Stage At the growth stage, sales increase tremendously. Consumers are aware of the existence of the product in the market and they have purchased the product for the first time. Profit increases and is at a profit-making level. When the product gains attention from the consumers, competitors start entering the market with similar products. This will effect: 1. costs reduced due to economies of scale 2. sales volume increases significantly 3. profitability begins to rise 4. public awareness increases 5. competition begins to increase with a few new players in establishing market 6. increased competition leads to price decreases c. Maturity stage 1. costs are lowered as a result of production volumes increasing and experience curve effects 2. sales volume peaks and market saturation is reached 3. increase in competitors entering the market 4. prices tend to drop due to the proliferation of competing products 5. brand differentiation and feature diversification is emphasized to maintain or increase market share 6. Industrial profits go down d. Decline stage. 1. costs become counter-optimal 2. sales volume decline or stabilize 3. prices, profitability diminish 4. profit becomes more a challenge of production/distribution efficiency than increased sales 4.0 New Product Line and Brand Management. Strategies Product: The mPhone will have a full year warranty. We will package the mPhone as tastefully as possible. Special editions of the mPhone will also be introduced including the mPhone Merdeka Edition celebrating the Merdeka.We will also introduced: • Larger, removable disk storage capacity – support for USB memory sticks, digital camera memory cards, external hard drives. • Lower weight and thinness – should fit into a wallet or become the wallet (with features to act as a credit or debit card). • Significantly longer battery life – should play movies for twice as long; battery should be easily replaceable. • 4G wirelesses – even faster, more incredible speeds than ever offered on this sort of device. This will leapfrog the competition. • GPS functionality – more precise information on location. Can link with software to add even more functionality. • Improved camera – For more detailed pictures and high quality video conferencing. Pricing: We set our base model 4gb at a low RM1500. Larger 16gb models will be listed at RM2000. We will also sale special limited edition Merdeka MPhones upon rollout. These of course are premium versions of the mPhone will deluxe packaging. We have decided to lower our prices to ensure we establish market dominance in as short of time as possible. Distribution: We are aiming for massive rollout nationwide at all reputable major retailers online and brick n mortar stores along with cellular phone providers. Eye catching displays will be found at all physical stores featuring the mPhone to make the product stand out from the pack. This is designed to lure consumers into stores and see the whole range of products M-Phone Technology can offer. Marketing and Communication: We will integrate our message of revolutionary communications and audio/visual experience together in all of our media advertisements. Prominently featured to differentiate our product against others is the touch screen functionality. Our ads need to be original but tasteful at the same time. Research about media consumption patterns of our targeted audience will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction. A massive TV campaign is planned for the month of April will feature a soon to be legendary ad that will remind people over the year and be the talk of the country, generating further attention. Thereafter, advertising will be appearing on a regular basis to maintain general public awareness and communicate various differentiation messages to several targeted groups. To attract, retain and motivate channel partners to push the product, we will send personnel to inform them on how to market the mPhone along with other M-Phone Technology products. 5.0 Conclusion We use a large variety of consumer research in order to further improve the mPhone as the market changes. Staying close to the end user and listening to the customer will be paramount to our success. Through the use of focus groups, feedback from consumer surveys and brand awareness studies to insure we know of the mPhone is view by the country. Targeting segments will be important in order to extend the mPhone reach to business and a broader professional base. Four age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up. These groups will give an expansive view of the study groups to include middle and upper income individuals. High School and universities aged people will demonstrate social uses. The 25-45 years group will be used to determine business application and social/personal use, and finally the 45 years and above will give us a plan to market to more senior well-refined group. This research will be done through surveys (via email campaign through portals and on-line application developed for the mPhone) and interviews with the same age groups listed above. The surveys will target to not only to current customers but also consumers not currently using M-Phone Technology products. It is important to weed out members who have a bias view to insure non-prejudice data. In order to bring the mPhone to the front of the business world it is important to research different ways to grow the 15-25 year old group into business uses of the product. Brand awareness will be an important tool in taking the mTouch Technology brand from "social cool" to "business cool". ATTACHMENT REFERENCES Author’s name (year). Book, Title, Publication