Marketing (New Product)

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  • 1. MEMBERS: Vicky Tiong Wong Shi Thin Alexandra Yap Valencia Goh Veronica Bija Marketing Practices II

2. INTRODUCTION The EU Company (EU.com) is a company which focus more on creating technology tablets (EU-Tab) but also produce different types of IT devices such as pc, laptop. The EU-Tab is a line of computers designed and marketed by EU.com. 3. INTRODUCTION EU-Tab can shoot videos, take photos and play music, send and receive email, and browse the web. Other functions- games, reference, GPS navigation, social networking and etc The EU Store offered more than 800,000 by EU and third parties. 4. SITUATION ANALYSIS 5. Business definition and scope 6. 1. Specification of the organizations mission and vision statements: Corporate Vision Take another higher step to improve which better than before. Mission and Value EU.com must create new IT device in every 3 months. 7. 2. Product definition The product definition is Generic-class level means that product that people do not buy it every day. 8. 3. Product categories targeted by our organization and our products/brands competing in those categories. Computer Laptop College/ Universtities Students Businessman Desktop Office workers Family use 9. 4. Competitors and their products/brands competing in our product categories TABLET PC: Apple iPad (March 2012, 16GB, Wi- Fi, black) Google Nexus 7 (8GB) Amazon Kindle Fire HD 10. 5. Identification of the market segments to be targeted: MARKET SEGMENT CHARACTERISTICS Businessmen Need to travel everywhere Need to do the research/reports High income High purchasing power College/Universities Students High purchasing power Chase after the high technologies Need do lots of reports Need to do some notes during class Assignments Office Ladies High purchasing power High income Often go outside to work Fashionable Family High purchasing power High income 11. 6. Scope Malaysia in the 21st Century is confident in its economic achievements and aspires to be a leader amongst Asian nations. Malaysia ranks among nations today as an upper-middle-income country, and hopes to achieve developed-nation status by 2020. 12. The external environment 13. POLITICAL Political stability when compared to other outsourcing destinations. This is the reason why attract our company to begin the business in Malaysia. Malaysia has provided liberal tax policies which helps us to reduce the costs of production. Deregulation of international trade causes us enter the business easily in Malaysia. 14. ECONOMICS Inflation in Malaysia is generally kept very low. Income remains unchanged, Malaysians will prefer not to purchase more goods and services. Most of the people will choose to buy cheaper PC product. 15. SOCIAL Nowadays, human beings cannot live without IT devices. We can see most of the people bring their laptop around or everywhere. For tablet PC, it is portable and most of the functions are similar to the laptop. If EU.com enter tablet PC industry, EU.com can earn lots of profit margins. 16. TECHNOLOGICAL Since Malaysias education industry produced high literacy rate, so the country existing high skilled labor is needed for our company. Malaysia has provided Internet service, Wi- Fi and webpage. Consumers can enjoy the wireless by using our tablet PC product and they can easily access to the information and communication channel. 17. The near (or industry) environment 18. Porters Five-force model HIGH LOW Threat of new entrants The bargaining power of buyers The bargaining power of suppliers Threat of substitute products or services Rivalry among existing firms 19. Porters Five-force model Explanations: Threat of new entrants is low because there are few strong brands in the tablet PCs market. Our competitors are Apple iPad, Google Nexus 7 and Amazon Kindle Fire HD. The bargaining power of buyers is high because there is some differentiation between competitive products. The buyer has access to full market information. 20. Porters Five-force model The bargaining power of suppliers is high. It is because our company need more staff, world-class R&D team of engineers and support centre worldwide. Threat of substitute products or services is low because only the laptop and smart phones is our substitute product. Rivalry among existing firms is low because rapid industry growth, some differentiation and average buyer switching cost. 21. Determination of critical success factors (CSFs) 22. EU.com needs financial strength, R&D superiority and quality of product. Our financial strength is maintaining a steady cash flow which is a balancing act. This will help our company to do the further investments in the future. R&D superiority is the one of critical success factors. EU.com will decide to send the R&D team to have seminar and training to improve their existing skills. 23. The internal capabilities 24. The talent, attitude and work ethic of a company's employees (human resource) are internal issues. Finding people qualified for the job and training them appropriately are other employment-related issues. The quality of employees affects the company's ability to innovate, customer satisfaction, productivity and efficiency. Employees also are significant cost considerations. 25. SWOTs analysis STRENGTH WEAKNESSES 1.Strong brand name 2.World-class R&D team of 1,500 engineers 3.2 years warranty with International Extended Warranty. 1.No trade-in service. 2.No Local Extended Warranty. 3.Poor quality of graphic design. 26. SWOTs analysis OPPORTUNITY THREAT 1.Focus on green environment. 2.Nowadays, families want to have at least one technology device that is computer. 3.Nowadays, people going around with 1.Technology changing very fast. 2.New technology easily available, competitor also. 3.Brand loyalty. 27. Market Segmentation MAIN DIMENSIONS VARIABLES BREAKDOWNS DEMOGRAPHI C SEGMENTATI ON AGE Above 16 years old Teenagers, studying age, young adults, adults GENDER Male and Female INCOME All above RM1,500 OCCUPATION Students, new graduated, office workers, businessmen EDUCATION Secondary school, high school, college, universities RACE All Malaysian HOME OWNERSHIP Renting apartment/condo, living with parents, living themselves, family form 28. Target Market MARKET SEGMENT CHARACTERISTICS Businessmen Need to travel everywhere Need to do the research/reports High income High purchasing power College/Universities Students High purchasing power Chase after the high technologies Need do lots of reports Need to do some notes during class Assignments Office Ladies High purchasing power High income Often go outside to work Fashionable Family High purchasing power 29. Positioning Strategy The company makes the brand positioning through the concept of easy to use by providing guidelines before using the application. If consumers think of cheap gadgets, they will directly think of EU-tab. 30. Marketing objectives 1. EU.com has to increase profit by 30% of every end of the year. 2. To be the first choice among the users. 3. EU.com wants to create brand awareness among the users by using advertising. 31. Marketing Mix Strategies 32. PRODUCT Size - 263 x 180.8 x 8.3mm Weight - 582g Shape Rectangle Colors 7 rainbows colors (have to pay extra RM100 because they are limited editions) + black and white (normal price) 33. MODEL EU-Tab DISPLAY 10.1 LED Backlit screen with Super IPS+(1280 x 800) 10 finger multi-touch, Corning Gorilla Glass Water resistance Dust proof OS Android 3.2 Honeycomb (Android 4.0 Ice Cream Sandwich Upgradeable) PLATFORM NVIDIA Tegra3 Quad-core CPU MEMORY LP DDR2 1GB STORAGE 32GB EMMC+8GB lifetime free EU Web storage WIRELESS 802.11/b/g/n, Bluetooth 2.1 +EDR 34. CAMERA 1.2 Mega Pixel (front), 8 Mega Pixel (rear) with flash INTERFACE Pad: 2-in-1 Audio Jack (Headphone/Mic in); 1 x micro HDMI port, 1 x micro SD Card reader, Internal Microphone & Stereo Speaker Mobile Dock: 1 x USB 2.0 port, 1 x SD Card Reader BATTERY Li-polymer battery 25WH SIZE/WEIGHT 263 x 180.8 x 8.3mm, 582g WARRANTY 2 Year Global Warranty 35. PRICE Comparison between product prices with other competitor. EU-tab Samsung galaxy tab 10.1 iPad (Third generation ) 8 GB RM1,099 (ori.) RM1,790 - 16 GB RM1,399 (ori.) RM1,800 RM1,499 32 GB RM1,699 (ori.) RM2,000 RM1,799 36. PROMOTION The company organizes the sales promotion which gives out discounts during PC fair. EU.com appreciate the loyal customers by giving out the member cards which valid for I year expiration dates and give discounts from 10% - 20% (RM 10 for surcharge). There is no charge for existing customers when renewing the member card. EU.com gives out free things such as the screen protector, the casing, the handy bags for 37. PROCESS Business to consumer goods Producer Consumer Producer Retailer Consumer 38. PLACE Eu.com makes own retailer at the shopping mall named WISMA SANYAN. EU.com also will distribute our product to the other retailer shops such as Boulevard IT store to help our company to promote our new product. 39. IMC STRATEGIES Advertising EU.com will use The Press (New Straits Times), television (Ntv7), radio [Radio Television Malaysia (RTM)]. The story line of promote this product is about 3 features (water-resistance, scratch-resistance and dust proof). 40. IMC STRATEGIES Advertising Story line: From the screen of EU-tab, people can bring the EU-tab to the different scenes of extreme sport places. Scene 1: during hiking (scratch resistance) Scene 2: during diving (water resistance) Scene 3: during in the desert (dust proof) 41. IMC STRATEGIES Scratch resistance Dust proof Water resistance 42. BUDGET Advertisemen ts New Straits Times RM100 per times 36 times (1 year) RM3,600 NTV 7 RM500 per times 50 times (1 year) RM25,000 RTM RM250 per times 35 times (1 year) RM8,750 Promoter RM4 per hour 10 promoters 10 T-shirts 10 hours (per week) 48 weeks (1 year) RM24 per T- shirt RM1,920 RM240 RM2,160 TOTAL RM39,510 43. ACTION PLAN WHAT WHO WHEN Supervise the promoter Supervisor Everyday Promote the product Promoter Once a week Manage the short-term objectives Manager Once a month 44. Evaluation and control What is to be measured How it is to be measured Data Source When it is to be measured Performanc e of workers Customers survey Customer s End of the month Sales profit Financial Accounting Financial departme nt End of the month Evaluation of every department Questionnai re Employee s End of 3 months 45. THANK YOU 46. Question and Answer Session