Marketing Plan Case Logic

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BUS 306 FUNDAMENTALS OF MARKETING

Professor Carol Davis

MARKETING PLAN

Antoine Couturier, Dillon Foster,

Danny Girard, Janice San Nicolas, Alex Tone

Table of Contents

Executive Summary

Situation Analysis

Market Summary

Geographics

Demographics

Behavior Factors/Psycographics

Market Needs

Market Trends

Market Growth

SWOT Analysis

Strenghts

Weaknesses

Opportunities

Threats

Competition

Product Offering

Keys to Success

Critical Issues

Marketing Strategy

Mission

Marketing Objectives

Financial Objectives

Target Market

Positioning

Strategies

Marketing Mix

Pricing

Distribution

Marketing Communication

Marketing Research

Sales Forecast

Expense Forecast

Controls

Implementation

Marketing Organization

Contigency Planning

References

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List of Tables and Figures

Figure 1: Consumer Levels of Mishandling Phones

Figure 2: Case Characteristics when Purchasing

Figure 3: Brand recognition

Figure 4: Purchase Locations

Figure 5: Break Even Analysis

Table 1: SWOT Analysis Summary Table

Table 2: Cost Breakdown

Table 3: Costing Analysis

Table 4: Contribution Margin

Table 5: Sales Forecast

Table 6: Fixed Costs

Chart 1: Case Logics Organizational Chart

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Executive Summary

Case Logic produces and sells a variety of technology cases, but for this first time will produce a durable yet attractive mobile phone case. Case Logic will market this product as Business-to Business, while operating in a Business-to-Consumer fashion as well. The competitive nature of the smartphone accessory market makes it necessary for Case Logic to build strong relationships within its retailers it distributes its product to, but create one-on-one relationships with consumers as well.

Case Logics first target market are consumers between the ages of 18-34, who are not only interested in protecting their smartphones, but express that visual appeal is also necessary (SurveyMonkey, 2013). Case Logics new cases allow consumers to protect their phones without the expense of foregoing visual appeal. Aside from this specific target market, Case Logic will target all other consumers who have smartphones. With targeting the entire market of smartphone users, will allow Case Logics new phone cases to be successful due more people being able to use.

Case Logics lead competitor is OtterBox. Otterbox dominates the durable case market, offering similar phone cases not only for smartphones but a variety of tablets. However, not only will Case Logics phone cases contain high durability, but be visually appealing, a quality that OtterBox cases do not have. Aside from these phone cases being durable and appealing, Case Logic will offer its products below the prices OtterBox offers, for similar products.

Case Logic will enter the market by offering these phone cases in phone carrier stores (AT&T, Sprint, Verizon, etc.,), mega retailers (Target, Wal-Mart, etc.), and on its official online website. With the product on the shelves, the next step is brand awareness. Case Logic will promote this product with small viral advertisements, mass email to current and new potential consumers, and with purchase advertising space directly in the carrier stores. These strategies will cause potential consumers to recognize the brand Case Logic and associate the name with quality accessory protection.

There is one glaring obstacle that may hinder the success of Case Logics newest product. Otterbox dominates the protective phone case industry and has developed a reputation for dependable accessory protection. Case Logic will have to market this product correctly in order to draw the 1% of Otterboxs business away from the phone case juggernaut.

Americas prevailing demographic tendencies show that over 90% of Americans own a cell phone. They also show that 56% of those Americans own a smartphone. We understand the potential for Case Logic phones and how to address our target market. Targeting Americans between the ages 18-24 and 25-34 will help expose Case Logic phone cases most efficiently. This targeted audience yearns for the latest technology at a price relevant to their lifestyle.

Fixed costs include marketing travel, marketing misc., employee salaries, promotion, and advertising, which will accumulate a total of $1,970,000 per year, and $164,166.67 per month. Fixed production costs will accumulate a total of $27,400 per month, which includes rent, utilities, maintenance, and machinery. Also, variable costs will total at $12 per unit, which includes necessary, raw materials, wages, assembly, and manufacturing. We will obtain a positive net income by the third quarter of the first year, at a breakeven point of 66,667 units, with a total variable costs of $2,015,352.

Case Logics success will not solely be based on its durable quality and visual appeal, but its ability to satisfy customer needs at a justifiable price.

Situation Analysis

As the value of smartphone devices continue to grow, so will the value of protection for those devices. In our marketing plan, we are entering the cell phone accessories market in an attempt to develop a visually appealing, shock proof cellphone case to compete with top competitors such as Otterbox and Trident. We saw the simple design of the industry-leading Otterbox as a flaw in their development. The consumer wishes to protect his or her cell phone but does not wish to sacrifice image as a result. With this in mind, our developers at Case Logic see potential of taking on the smartphone accessory market and expect to create a strong consumer relationship.

Market SummaryAlmost every consumer owns a cell phone, and nearly half owns a Smartphone (Pew Internet, March 2012). Human nature has made those consumers clumsy, which means people often mishandle their phone. Current technology tends to produce phones that are not made to last, meaning that their components are made to malfunction really quickly and the phone themselves are fragile. Both human behavior and technology trends have created the need for a solution to protect phones for breaking. That is why our company Case Logic tries to meet those needs by offering a brand new kind of phone case, durable, sleek, and fashionable.

First, the market of phones is tremendous. In 2012, Samsung sold 384.6 million phones and Apple sold 130 million units (Gartner.com, February 2013). The Smartphone market is mostly dominated by those two brands and four main phones stand out: the iPhone 4S, the iPhone 5C/S, the Samsung Galaxy S3 and the Samsung Galaxy S4. Those Smartphones are well known to be fragile and the screens are likely to break after the first drop.

The market for phone cases is divided in two categories. The first category includes phone cases used as fashionable accessories, sleek but not durable and that do not protect the phone from breaking. The second category includes bulky phones cases meant to protect the phone from breaking and mostly unattractive. Case Logic tends to solve those two problems by offering one single kind of phone case for those most popular phones. In addition to offering regular phone cases for a more fashionable purpose, our company offers phone cases competing with the most durable phones cases our competitors offer. The experience of our company has allowed us to develop a technology able to create a sleeker phone case as strong as the existing bulky ones, which offers both attractiveness and customization. Phones are now subtly protected with an attractive sleek phone case that does not double the size of the phone in the pocket.

Geographics

Business-to-Business

The long term goal for our product is going international. Cell phones are popular amongst a variety of age groups across the world. Although our product has endless potential, we must first establish our product in the U.S. market.

Our product is already heavily marketed, but our phones superior attributes will allow our company to compete with other firms selling phone cases. Using geography we can learn where we want to market our product. In large cities there are a variety of both small and large business firms that have a need for our product. Many companies, offer their employees company phones which the employees are allowed to use freely. Because our product is superior in price and style, marketing to these types of firms, could be very attainable.

Business-to-Consumers

For our product to be successful we want to have efficient marketing strategies. We have compiled a list of demographic strategies which we plan to help market our phone case to consumers. In certain regions of the country, there is potential to reach our targeted consumers. Other areas of the country will not be part of the geographic area that we market to. B