marketing plan for mobyx

8/3/2019 MArketing Plan for MOBYX

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M obyXM obility with an X-F actor

Enjoy with Style


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Letter of Transmittal

Ms. Mariam Durrani

Instructor Principles of Marketing

SZABIST

Dea r Ms. Durran i:

The marketing course have been really interesting in class when different ideas were being discussed

with the concepts that were being explored in Philips Kotlers book, but we believe that concepts

cannot be u nderstood until and unless implemented.

The term report of preparing a marketing plan has given us a chance to apply the concepts that were

studied in class. The ideas that we had about our product merged with concepts has what we have

presented in the report. You can contact us if you need assistance in interpreting this report and in

understanding the conclusions.

Yours Sincerely,

Binish Nida Afaque Salima Abdul Karim Khalani

Sipee Zara Munir


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Marketing Plan forM obyX

Course: Principles of Marketing

Subm itted to:

Ms. Mariam D urrani

Instructor SZA BIST

Prepared by:

Students of Shaheed Zulfikar Ali Bhutto Institute of Science and T echnology(SZABIST)

B eenish N id a A faque 040253

Salima Abdul Karim Khalani040254

S ipee Z ara M uneer 040258

P ro gr am:

M B A D

S ectio n:

B2

Date of Subm ission:

Apri l30, 200 5


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Executive Summary

Mobitlity, latest trends and technology are three most significant factors that customers seek today whenthey walk-in in an electronic items outlet . Years before the journey of technology started out from thecalculator the most basic computer a w e call it. Today that technology has emerged and the most latest is

PDA (Personal digital assistant). 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 iseasy to carry, manages schedules, and can perform all the business related tasks .

According to A bid sattar, head of consumer banking at standard chartered"The world is switching over to smaller stuff. You see compact mobile phones ,mini laptop, palmtops

and even smaller wallets and purses. The minicredit cards fit with this trend and w ith the trend ofconvergence. You can fit your mini card into a key ring or hang it from your mobile phone. Y our keyring and credit card are now converged into one."

The size itself has become important apart from mobility . The concept that we are launching is o f a

radio which is latest in the sense that you can wear it as a fashion accessory. Radio is considered to beone of the most important media apart from television and internet . The major source in use duringcricket matches, excising in the morning and during traveling for work or school.73% of college goingwomen (18-25 years of age )surveyed tune into radio. Although the channel loyalty is not there. Themost frequent listening occurs after dinner time .

This is different from male radio listeners as the FM channels are replacing cassettes as a music sourcewhile driving. other survey shows that one of the popular source of music are the F M stations, FM 89,96and 107 are extremely popular with the 15-17 year olds.

The major target market for our product is the age between 15 to 26. According to the statistics, 25million 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. O ur product being expensive would be bought morefrequently by the urban density which is there awaiting such a product according to the statistics.

Teeny boppers and young adults often referred as generation X is the most experienced and accessedgeneration in the human history. This generation is the technologically accessorized generation ,witheverything hanging from their clothes, from cell phones to CD players, and computers are a w ay of life,not a complicated tool. This is a branded g eneration, brand names ,association with the great life and

other symbols are greatly important.

The emerging concept of brand association amongst teens and aw areness will make our product moreappealing to the customers.


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Product Profile

Objectives and Issues:

Increase the profits by at least10% in the first year of the launch.

Issues: How to increase the aw areness amongst customers about this product?

To create a10% market share for the product and to work to improve it further.

Issues: What mea sure to take to identify the po tential customers of the pro duct in the

market?

To identify5 potential outlets where to place the product initially.

Issues: How to identify the po tential 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. Technological flexibility and innovationare the key factors

that we emph asize 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 blend of fashion

and technology thatmakes you feel different and latest than others


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Business Portfolio

Dogs Cash Cows

Stars

Relative market share

Marketgrowthrate

Question Marks

MobyXbeing an entirely new product would develop over time . The product needs investment initially

to market itself and create a better position in the market in order to become a star .


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Marketing Research


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Methods of Data Collection

Basically there are two methods o f data collection;

1. Primary data co llection.

2. Secondary d ata collection.

Primary Data Collection: Primary data is that data which is collected specifically for the project at

hand.

The p rimary data for our report resulted from the questionnaires filled by boys and girls 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.


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Survey Results

Prior to the selection of the product w e conducted a survey to get the idea of market and customer

demand. Our focus group was in age limit of15 and abov e, belonging to the upper a nd upper m iddle

class.

What we extracted from the survey is that majority of people is interested in gadgets and electronic

items and almost all of them like listening radio at least1-2 times in a week and radio is the most

frequent medium to listen to music or news during travelling.

The size of a product and mobility are important factors that are considered by customer when bu ying

radio o r other electronic items.

Price gets less importance and the emphasis given to the quality of electronic item while making

purchase de cision. One more po sitive thing that we know from the survey is that people have g reater

tendency for wearing fashion accessories and most of them follow latest trend whether it is in the field

of style or in the tec hnolog y.

The above results show that our product has potential to capture market as it is up to

the expectations and demand of peoples.


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SWOT Analaysis

And

Marketing Environments


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SWOT Analysis

Opportunities:

The customers are fond of accessories which can help ex tend our accessories from earring to rings,

bracelets and necklace

Hearing radio can replace the car tapes as being mo bile and fashionable in nature. Being a n ew prod uct creating a new market the competition is minimized to a great extent.

The d istinctive attributes will outweigh the element o f high price.

The o pening of the malls culture in K arachi with better electronic outlets will provide a b etter

location to display the radio.

There is an opportunity for line extension.

New technology is in its growing stage wh ich helps attract customers with distinctive attributes.

The interest of teenagers in acquiring latest technologies will further increase the market share.

Comp uter systems 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 the product mo re effective.

The smaller size and mobility if appreciated could prov ide line extension for the product.

Threats:

The electronic market is still underdeveloped in Pakistan

The fluctuating economic and p olitical conditions of the country can hinder the sale of the product.

Less aw areness amongst public about the electronic items

The training of the sales person for the product

Comp etitors can come up w ith a similar and better product before o ur product is established.

The highe r price of the product could lead to duplicated products in the market.

The health conscious p eople could resist the product.

The fashion consciou s people may no t take the initiative to buy the product.

The analytical buyer.


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SWO T Analysis

Strengths:

Being the first of its kind to be launched in the m arket.

The smaller size

The mobility.

The attractive packaging and demo included with the gadgets.

The exquisite locations of electronic gadg ets outlets in d ifferent malls(e.g. Pak Tow ers, Forum

etc.)

Easy to use

In accordance with the latest fashion.

Attractive mix of radio and fashion accessory.

Japanese technology, one of the m ost reliable man ufacturers.

Weaknesses:

Limited warranty.

Requires proper maintenance.

Batteries are to be changed according to the usage level thus requires cost to keep the gadget

working.


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Marketing E nvironments

Marketing Environments:

Political:

The fluctuating political environment in the country can be dangerous. Since the product beingdeveloped is being man ufactured in another country the support of the governmen t is required to

keep the co nditions in import and export stable and to strengthen relationships with the other

country to grow the b usiness further.

Economical:

The produ ct that is being launched is an expensive products the econo mic conditions will

determine the national income o r the buying pow er of the consumer w hich indirectly will

determine whether the people w ould be w illing to spend on the products that are not part of their

bas ic nee ds.

So cial:

Since the product is an earring radio which w ould be fixed in an e arring placed quite close to the

ear can be considered as dangerous for the ear. Proper awareness about the produ ct and the setting

of the frequencies accordingly so not to effect the ear would have to be justified to the people.

Technological

Pakistan is developing technologically and further aw areness and d evelopment will assist in

improving the products functionality.


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Target Market Selection


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Target Market Selection

Target market Segment :

MobyXwill form a major share of its market amongst those people who are attracted towards theproducts with exclusive appearance, unique functionality , style and design. W e will market our

product through concentrated marketing . Through concentrated marketing MobyXcan achievestrapping market position as because it is unique and caters the consumer needs . MobyXbeing a part

of the most reliable and trusted technologies belonging to Japan , further strengthens the reputation itwould acquire.

Now a day there is a growing trend of adopting the inimitable style which people will definitely feelafter purchasing the product . The mini chip radio in the earrings itself is fascinating and willcommunicate on its own towards the people who are engrossed through mini products .


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Positioning


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Positioning

Product Positioning

MobyXwould 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

MobyXis a better quality product providing distinctive features and being a leader makes it more

special and different from other competing products . Japanese technologies are most reliable and

durable. Therefore it is a More for More product providing higher quality for higher prices .

Market Positioning

MobyXhas been positioned in the customers mind as a part of their lifestyle it impeccably suites

their personality . It has positioned on the following grounds :

Made for you exclusively

Life style and technology

Earrings with variety of colors and designs

Fine-looking wrapping and easy to carry

Statement

Enjoy with Style

Characteristic Affecting Adoptation :

Relative advantage: The first of its kind is being introduced in the market ; the concept itself

will attract customers .

Compatibility : MobyXhigher range of frequency will make it easier to add channel and thus

more value to the product .

Complexity: MobyXis easy to use and the demo CD provided with the product provides the

proper guide and features to use the product .

Divisibility : MobyXis an expensive product and initially no discounted rates can be offered .

Communicability : The experience that customers take with them will make its use and

difference spread amongst customers .


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Marketing Mix


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Product

Product Classification :

MobyXis broadly classified as a 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 effort by customers , little comparison of brands and low

price sensitivity .

Levels of Product :

Core

Product

Actual Product

Augmented Product

Core Product:

MobyXprovide 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 and thats what the customers want .

Actual Product:

MobyX, 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 MobyX.

Also included 3 years money back warranty and a pairs of fabulous earrings along with the

product.

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 .


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Product

Product Composition :

Product Quality:

MobyX works great, everywhere in the world , using Japanese microchip technology and providing

the FM band from 87 to 108 MHz. 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, 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, in theform of earring or as simple microchip (radio).

Product Style and Design:

It comes in many splendid colors with different style for male and female . It is designed in a way so

as to increase portability


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Product

Branding:

Brand Equity:

MobyXwill establish it with the passage of time because of its good quality and better

understanding of customer need .

Brand Name Selection:

MobyXis 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:

MobyXis manufacturers brand .

Brand Development:

No extension.

Packaging:

MobyXcomes in a square and heart shaped gift box .

Labelling:

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 MobyX. Free demo CD is also

given.


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Product

Product Mix:

Initially MobyXis 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, lockets.

Product Life Cycle:

Introductory

Stage

Growth

Stage

Maturity

StageDecline Stage

Total

Market

Sales

Time


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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

Cost:

The organization has tried to achieve economies of scale but not a 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 .

Product Pricing Strategy

Comparing competitors pricing

Sno. Competitor Price

1. Sony Rs. 6400.2.

2. Sinclair X1 Button Radio . Rs. 2304.93.

3. FM Mini Radios. Rs. 719.44.

4. Z1 AM radio Rs. 8405.

6. Tiny FM radios (China Toy Factory Inc) Rs. 1200

Competition Based pricing:

We are following the going rate pricing according to which we fix our price after considering all

the factors as to Rs . 1499


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Placement

The product would be sold through Indirect Marketing Intermediary . The product will be sold 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 .

ConsumerRetailerWholesalerFactory


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Promotion

MobyXbeing a new product in the market would require intensive advertising . 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:

MobyXis an expensive and new product there is a 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 of 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

newspapers that the product would be advertised in are The News and Daily Times .

A major feature of Dawn which comes out on Saturday by the name of Science Dotcom would

be used to feature the product on its technology corner on the last page where the latest products

are advertised with their major features and price .

Magazines:

MobyXbeing a technology product it would be advertised in magazines as Spider a leading

Dawn magazine. Another magazine that is famous amongst our major target segment the teens is

Young Times it is a Dubai based magazine is especially for kids . Since it is a fashion product

also magazines like SHE ,STYLE and MAG would also be used to advertise the product .

Billboards:

The billboards at the Clifton Bridge , Shahra e- Faisal and the Park towers would be ideal places

to advertise the product . Saddars electronic market another major area where we have planned to

advertise through billboards . Apart from the major areas identified all the other malls where luxury

electronic items outlets are available advertising would be done by placing billboards .

KESC advertising corner:

KESC has started an advertising corner on their bills which would be used to advertise our product .

Since very few companies have taken the initiative to put their advertisements on bills . Our product

being the new and the first very few to advertise on bills would attract customers towards our

product.


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Promotion

Television:

The few major channels as Geo, ARY One, and Indus channels will be given the task to advertise

the product.

Websites:

BBC.com/ Click on line a website providing information regarding new technologies , Apna

karachi.com a famous website viewed by most of the karachites .

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 product 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


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Competitive Marketing Strategy


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Competitor Marketing Strategy

Competitor Analysis :

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 .

Sony:

Sony always comes up with innovative ideas and product size and design . Walkman radios were

first introduced by it . It offers a wide range of electronic items ranging from major appliances to

small size portable electronic items of premium quality .

MobyXdirect competitors are small radios (ear piece) that can fit in ear easily . These are namely ;

i. Sinclair X1 Button Radio.

ii. FM Mini Radios.

iii. Z1 AM radio.

iv. Tiny FM radios (China Toy Factory Inc.).

Other indirect competitors are mobile devices enabled with FM radios . These are

i. Sony Ericsson

ii. Siemens

iii. Samsung

iv. Nokia

v. Motorola

vi. LG

vii. Panasonic

viii. Sanyo

ix. Sendo

x. Sharp

xi. Sagem

xii. Phillips

Competitive Advantage :

MobyXis not just a FM radio it is a blend of fashion and technology

Long lasting Japanese battery gives it an edge over other mini radios that have 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 88-108MHz.


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Competitor Marketing Strategy

Competitive strategies :

Differentiation:

MobyXis an innovation in the arena of radios . It gives connectivity with the outside world in a way

that adds value and beauty to face .

Focus:

MobyX is designed specially for high income urban population including baby boomers , fashion

followers and trend setters .

Competitive Position:

Market Nicher:

We are following the market nicher strategy for MobyXby focusing more towards the elite class of

the society .


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Budgeting


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Budget

Marketing Budget Plan

CategoryEstimated

Quantity

Estimated

Cost per Unit

Estimated

Subtotal

Research

Research firm fees 2 140000 Rs. 280000 Rs.

Web research 1 66000 Rs. 66000 Rs.

Independent research 3 18000 Rs. 18000 Rs.

Other research 2 15000 Rs. 30000 Rs.

Research Costs Total 394000 Rs.

Promotions

Product discounts 50 101 Rs. 5050 Rs.

Special offers 200 150 Rs. 30000 Rs.

Promotions Costs Total 35050 Rs.

Advertising

Brochures (development and production 2,000 65 Rs. 130000 Rs.

Television 2 89075 Rs. 178150 Rs.

Radio 4 18000 Rs. 72000 Rs.

Newspapers 6 18144 Rs. 108864 Rs.

Magazines 6 12000-33000 Rs. 110000 Rs.

Web 1 120000 Rs. 120,000 Rs.

Billboards 2 6000000 Rs 6000000 Rs.

Advertising Costs Total 6599014 Rs.

Public Relations

Advertising 4 12000 Rs. 48000 Rs.

Employee promotions 6 12000 Rs. 72000 Rs.

Sponsorships 3 12000 Rs. 360000 Rs.

Public Relations Costs Total 156000 Rs.

8717814 Rs.ESTIMATED MARKETING GRAND TOTAL

Factors considered for budgeting :

The different advertising agencies rates have been analyzed and the selected ones are

chosen to be added in the budgeting plan .

Most of the values are estimates .

According to time the rates can differ .


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Controls


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Controls

Goals:

After the launch we will lookout the awareness and recognition of MobyXamong 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 groups and via e -mails .

Evaluations:

The results of the surveys , mails and others will be then set synchronized for the evaluations .

Evaluation is conducted to identify the gap between the expected and actual performance .

Corrective Actions:

This is the last control which is set and applied if there is a difference amongst the expected and

actual performance of MobyXand we then otherwise will take the corrective actions to close the gap .


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Annexure


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Questionnaire


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QUESTIONNAIRE

We the students of SZABIST are working on a research and need your assistance.

By sparing some time out to fill in the survey form would be appreciated.

PERSONAL DETAILSYour name (optional):

Age group:

15-18 19-22 22-26 26 and above

Household income:

50000-150000 160000-210000 220000-310000 320000 or above

ABOUT YOUR LIKES AND DISLIKES

1. Are you fascinated with the electronic gadgets introduced in the market?

Love it Do notice sometime Like to know about

new gadgets

Never

2. What attracts you towards an electronic gadget? Rate the following from 1 (for least preferred) to

(for most preferred)

Look Functionality Lower

cost

New

technology

Warranty Others:________

3. Do you follow the fashion trends?

Regularly Someti

mes

Occasionally Never

4. Which fashion accessory attracts you the most?Earrings

Bracelet Necklace Others:__________

5. How many times do you listen to a radio in a week?

1-2 times 3-4 times 4 or more times Never

6. What is the most frequent medium that you use during traveling to listen to music or news?

Radio Newspaper Car TV WAP enabled

mobile phones

Others: __________

7. When buying an electronic item you consider cost as your? First priority Last priority Depends upon the quality of the produ

8. Do you consider size as an important factor when buying radio or a recorder?

Yes No Doesnt matter much

9. What is the most important quality you would like an electronic item to have?

Mobility Compatibility Durability Origin (as Others:


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Japanese

technology)

___________

marketing plan for mobyx

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