Transcript
Page 1: Marketing Plan for Orange Inc 1

MARKETING PLAN FOR

ORANGE INC.

SUBMITTED TO: SUBMITTED BY:

PROF. RADHAKRISHNA ANKITA MISHRA

JAYASHREE KOTAGI

SHAINIKA MURTHY

SHILPI SARKAR

SUMALYA CHAKRABORTY

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TABLE OF CONTENTS

1. Executive summary……………………………………………………………………………………..03

2. Company description…………………………………………………………………………………...03

3. Strategic focus and plan………………………………………………………………………………...04

3.1 Mission………………………………………………………………………………………….04

3.2 Goals……………………………………………………………………………………………04

3.3 Core competency and sustainable competitive advantage……………………………………..04

4. Situation analysis……………………………………………………………………………………….05

4.1 Company analysis………………………………………………………………………………05

4.2 Customer analysis……………………………………………………………………………....06

5. Product market focus…………………………………………………………………………………...06

5.1 Marketing and product objectives……………………………………………………………...06

5.2 Target market…………………………………………………………………………………..07

5.3 Customer value proposition……………………………………………………………………07

5.4 Point of difference……………………………………………………………………………..08

6. Marketing program…………………………………………………………………………………….08

6.1 Product strategy………………………………………………………………………………..08

6.1.1 Product line………………………………………………………………………………..08

6.1.2 Unique product quality…………………………………………………………………….08

6.3 Price strategy……………………………………………………………………………………09

6.4 Promotion strategy……………………………………………………………………………...10

6.5 Distribution strategy…………………………………………………………………………….10

7. Five year projections……………………………………………………………………………………11

8. Implementation plan……………………………………………………………………………………11

9. Evaluation and control………………………………………………………………………………….12

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1. EXECUTIVE SUMMARY

Orange Incorporation is into the microcomputer business and has introduced two new brands Securus

and Optimus targeted at the Workhorse and the Innovators segment respectively. The two brands will be

sold through company-owned sales offices located in Chicago, Berlin and Rome. The products will not

be sold through the retail stores. The marketing strategy will be tightly focused on direct sales to

business customers. Orange Inc is competing with Masstech, Innovatus Computing and Globosoft

Computers Ltd. in the Workhorse segment and Innovatus Computing and Graph Infosystems Ltd. in the

Innovators segment. The brands were designed keeping in mind the interest of each segment like ease of

use for the workhorse segment and high performance for the innovators segment.

2. COMPANY DESCRIPTION

Orange Inc was started by Ankita Mishra ,Jayashree Kotagi, Shainika Murthy, Shilpi Sarkar and Sumalya

Chakraborty to manufacture and market a unique line of microcomputers for business markets.

Accordingly the company has hired highly qualified people from similar industries having sufficient

experience in the specific roles and is ready to pay them compensation which is slightly above than the

industry standards. The various personnel who have been given the job roles are as follows:

RESPONSIBILITIES

Officer Name Primary Responsibility Secondary Responsibility

JAYASHREE KOTAGI VP-Finance VP-Marketing Research

SHAINIKA MURTHY VP-Brand Management VP-Advertising

SHILPI SARKAR VP-Sales Management VP-Brand Management

ANKITA MISHRA VP-Advertising VP-Sales Management

SUMALYA CHAKRABORTY President-Overall Leadership VP-Finance

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3. STRATEGIC FOCUS AND PLAN

The strategic focus and plan mainly deals with the mission, the goals and the core competency of

Orange Inc.

3.1 Mission statement for Orange Inc

Orange Inc. is committed to bringing the best personal computing experience for creative professionals

around the world through the invention, development and manufacture of the industry’s most advanced

computer systems.

3.2 Goals

The main goals of Orange Inc are:

i) Focus on smaller high margin segments

ii) Focus on geographic markets with highest potential demand

iii) Establish brand image and brand loyalty in the market by giving maximum importance to

quality.

3.3. Core Competency and Sustainable Competitive Advantage

Orange Inc believes that its core competency lies in the ease of use of its products and their high

performance. Hence Orange Inc has entered the Workhorse segment.

Also it wanted to manufacture a different variety of PC’s which would help in handling large

computational problems faced by many and wants to use the latest technology as far as possible. This

made Orange Inc to enter the Innovator segment. However overall the core competencies of Orange Inc

can be summarized as:

i) High performance and ease of use.

ii) Flexible rugged products with capacity of handling large computational problems.

iii) Made for the common man.

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4. SITUATION ANALYSIS

Present condition of the PC-Manufacturing Industry:

A market research plan was brought by Orange Inc before they went ahead with the actual sales to

gauge the potential demand in the various market segments. The Competitors of Orange Inc were

i) Masstech

ii) Innovatus Computing

iii) Graph Infosystems limited

iv) Globosoft Computers limited

From the results of the marketing survey the following information could be inferred about the

industry.

In the Workhorse segment maximum demand existed for Masstech and Innovatus Computing

followed by Orange Inc.

In the Innovators segment Masstech and Graph Infosystems were leading.

Overall total demand was least for Orange Inc as per the results of the Marketing research report

which raises significant concerns.

The industry was as such fragmented with various players entering various market

segments.Workhorse, Innovators & Cost Cutter segments were mostly entered by all the competitors

and stiff competition existed in the same.

Post test market results after actual implementation it was found that in the Workhorse segment,

maximum demand existed for Innovatus Computing and Globosoft Computers Ltd.

Innovatus Computing outperformed all the other players in the Innovators segment by creating a blue

in red with staggering results. Though with a significant division Orange Inc held the second position.

4.1 Company Analysis:

Orange Inc’s products compete in the Workhorse and Innovators segments in the U.S and European

markets. The company’s commitment towards bringing the best computing experience for creative

professionals around the world through the invention, development and manufacture of the industry’s

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most advanced computer systems will ensure that the company stays ahead in terms of competition and

market share. The company does not sell through retail outlets and focuses only on direct selling. Orange

Inc’s brands Securus has been well received by the workhorse segment because of its low price and

distinctive features. One of the differentiating factors of Orange Inc’s products are that they make use of

green technology which makes them environment friendly.

4.2 Customer Analysis:

Workhorse segment: The Workhorse segment is the largest group of customers. They want an easy to

use PC for office workers. It should also have a modest price.

Innovators segment: The Innovator segment is a small segment that needs a computer to handle large

computational problems (accounting, inventory management, engineering). This segment wants the latest

technology and will pay a small premium for this high performance.

5. PRODUCT MARKET FOCUS

Our marketing and product objective is to start of and concentrate on the work horse and innovators

segment. These segments were chosen, so that we could cater to the needs of the low end and high end

customer without changing too many characteristics of the product and prices though different will not

vastly vary.

5.1 Marketing and Product objectives

Current market

We have currently opened sales offices in Chicago ,Berlin and Rome. Chicago and Berlin offices

were opened in the first quarter and have been operating ever since. We opened offices in Chicago

and Berlin because they had the best market for innovator and workhorse segment.

New market

Sales office has been opened in Rome as there was a great demand of 4,529 in the work horse

segment, while an equally good demad of 2,711 for the innovatus segment. Since our business was

doing well in the work horse segment, we decided to concenrate there.

Products

The products we choose for the 2 market segments were Securus and Optimus , while Securus is for

the workhorse segment,Optimus is for the innovators segment.The features for Securus initially

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included basic features like standard desktop,standard hardisk size,mid range processor etc and the

core requirements like safety and ease of use required by this segment were not compromised upon.

Optimus for the innovatus segment had better features like High capacity hard drive, Business

graphics software, Engineering graphics software, High performance processor etc

New Products

Since our competitor’s products were priced much higher than our, we saw that our customers were

willing to pay more for our products .Hence improvised our products with better features and

increased the prices .Our new products were -

Securus 1.1 which had features like high capacity hard drive, accounting/bookkeeping software, 15"

monitor for desktop, mid-range processor, expansion slots for adding new devices etc

Optimus Pro which had features like very high capacity hard drive, business graphics software,

engineering graphics software, web design software, 19" high resolution monitor for desktop, high

performance processor etc

5.2 Target Market

We choose the Innovators and Work horse segment as their needs were close to each other , besides

we wanted to target 2 niche set of customers. The other reason for choosing these segments was the

market size available, the innovators had a huge market size of 3284 in Berlin and 2692 in

Chicago.The Workhorse has a market size of 5672 in Chicago and 4922 in Berlin. The innovators

segment had most important needs like fast access to graphical images , quick response speed , fast

computer links, ability to handle large tasks.The Workhorse segment needs were safety , security,

ease of use, low price etc.

5.3 Customer Value Proposition

To give our customers an advantage over our competitors we concentrated on product features,

we made sure our customers were always beyond satisfied to own our products.

The distictive competitative advantages we concentrated on were –

To be the market share leader

To be the high service provider in the market

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To provide the most reliable product on the market

To make sure we provided all the above mentioned advantages we concentrated more on the

product, we made sure the product satisfied all the customer’s needs even if it meant incuring

more costs.

5.4 Point of Difference

To make sure we provided the above mentioned advantages we provided service support in each

market , and also to make sure the services provided were upto standards we quartely training to

the sales and support staff. The quarterly training was provided only for the staff catering to the

innovators segment as they were more demanding and needed better sales force to drive sales.

6. MARKETING PROGRAM

The four marketing mix elements for the products Securus and Optimus are detailed below:

6.1 Product strategy:

Orange Incorporation has two brands Securus and Optimus targeted towards the Workhorse segment and

Innovators segment respectively.

6.1.1 Product Line: Securus 1.1 is the first product to be launched under the Securus brand.

Optimus Pro is the first product to be launched under the Optimus brand.

6.1.2 Unique Product quality:

Securus 1.1 is the ultimate desktop workhorse with features that promote a hassle-free experience. One

advantage of Securus 1.1 is the LED backlit display. Unlike displays that take up time to warm up before

they reach maximum brightness, an LED backlit display is instantly on and uniformly bright which is

easy on the eyes. It also lets the user finely tune the display to suit the ambient light even the dimmest

room. The user can also have the perfect cord-free setup with the wireless mouse. Besides these, there’s

no shortage of ports on the Securus 1.1 with 4 USB ports which enables the user to simultaneously work

on multiple things.

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Optimus Pro is the all-in-one wonder with multiple features that enable high performance. Powered by

quad-core processors, the Optimus Pro is ultrafast and ultraflexible. with advanced HD graphics

processors, Optimus Pro can perform upto 3 times faster. The latest wireless technology in Optimus Pro

makes it effortless to connect to a Wi-Fi network. It automatically finds available networks and lets the

user join them with a click. Bluetooth wireless technology is also built in, so the user can use their

favorite wireless accessories right out of the box.

Both Securus 1.1 and Optimus Pro make use of green technology which makes them environment

friendly.

6.2 Price strategy:

Securus 1.1 is priced at $3040 for a 15” display screen in both US and Europe markets. Optimus Pro is

priced at $3940 for a 15” display screen in both US and Europe markets. The significant high

performance advantage that Optimus Pro has over Securus 1.1 justifies this pricing strategy.

6.3 Promotion Strategy:

Securus 1.1

Optimus Pro

Key promotion features for Securus 1.1 are detailed below:

Print media: Targeted newspaper and magazine ads can be effective brand builders and acquisition tools.

The ads of Securus 1.1 will be placed in business newspapers and journals, trade and technology

magazines which will ensure wider coverage.

Television: Featuring ads of Securus 1.1 on TV will offer a unique combination of audio and visual

impact and audience reach.

Outdoor: Billboard ads can be a cost-effective way to reach out to a larger number of potential customers.

Event marketing: Promoting Securus 1.1 through live activities such as seminars, company-sponsored

meetings and trade shows will help in qualifying leads and enhancing customer relationships.

Website: The website will enable customers to have complete and up-to-date information about Securus

1.1 and also provide prospects an easy way to contact the company.

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Search Engine Optimization (SEO): This will ensure that the web page of Securus 1.1 appears at the top

of search engine results when certain keywords or phrases such as “Securus”, “Orange Incorporation”,

“Securus Orange Inc”, etc are typed in search engines.

Key promotion strategies for Optimus Pro are listed below:

Print media: The ads will be placed in business newspapers, magazines, journals, trade and technology

magazines which will enable wider coverage.

Television: the ads of Optimus Pro will be featured on TV which will ensure a wider audience reach.

Outdoor: Billboard ads will be placed for Optimus Pro in order to reach out to a larger number of

potential customers.

Event Marketing: Live activities such as seminars, company sponsored meetings and trade shows will be

held.

Partnerships: Orange Incorporation will tie up with corporate giants to create a customized webpage for

each of them that will be accessible only to the employees of those companies.

Collaterals and giveaways: Business cards, brochures, mouse pads, etc will be given away to make an

impression.

Email marketing: This will provide a quick and inexpensive way to inform customers and prospects

about offers in turn strengthening customer relationships.

Website: The website will provide the product details, offers, etc.

Search Engine Optimization (SEO): this will ensure that the web page of Optimus Pro will appear at the

top of search engine results.

6.4 Distribution:

Both Securus 1.1 and Optimus Pro will be distributed through direct selling. Both the products can also be

purchased online through the company website.

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7. FIVE YEAR PROJECTIONS

8. IMPLEMENTATION PLAN

Introducing Orange Inc’s products to top cities in U.S. and Europe is a complex task and requires that

creative promotional activities gain consumer awareness and initial trial among the target market. The

anticipated rollout schedule to enter these markets is as follows:

Roll out schedule to enter new US and Europe markets:

Quarter New markets added Cumulative markets Cumulative predicted

market share

4 1 3 2%

5 2 5 20%

6 5 10 40%

7 3 13 50%

8 2 15 60%

The diverse demand for the products will be monitored carefully to assess whether minor modifications

may be required in Orange Inc’s products.

Projections

Financial Element Actual Q5 Q6 Q7 Q8

No of PC's sold 121 300 760 1900 4800

Net Sales 444340 1110850 2777125 6942812.5 17357031.3

Gross Profit 130439 247834.1 470884.79 894681.101 1699894.09

Operating Expenses 788339 804105.78 844311.069 886526.622 930852.954

Operating

Profit/Loss

-1529111 -556271.68 -373426.28 8154.47855 769041.138

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9. EVALUATION AND CONTROL

Monthly sales targets have been set for Orange Inc for each market. Actual sales will be compared with

these targets and tactical marketing programs modified to reflect the unique sets of factors in each market.

The speed of the roll out program may increase or decrease depending on Orange Inc’s performance in

the successive markets it enters.


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