marketing plan sem2 ver 1.0

[UZONE MARKETING PLAN] May 10, 2014

PAGE 1 UZONE : We Strengthen Relationships

Marketing Plan - UZONE

Created by Ananya Das, Roll no. 9

Semester 2, MBA 2012-2015



TABLE OF CONTENTS

1. Introduction .....................................................................................................................................................................3

2. Executive Summary.........................................................................................................................................................3

3. Organisation Vision &Mission .......................................................................................................................................6

Vision ......................................................................................................................................................................................6

Mission ...................................................................................................................................................................................6

4. Marketing Vision & Mission ..........................................................................................................................................6

Vision and Mission................................................................................................................................................................6

5. Situation Analysis ............................................................................................................................................................8

External Enviromental Analysis..........................................................................................................................................8

6. Market Overview.......................................................................................................................................................... 12

The target market.............................................................................................................................................................. 12

Competition........................................................................................................................................................................ 13

7. Internal Environmental Analysis................................................................................................................................ 13

General SWOT Analysis .................................................................................................................................................... 15

8. Organisation & Marketing Objectives ...................................................................................................................... 16

1 – 3 years ........................................................................................................................................................................... 16

9. Marketing Mix............................................................................................................................................................... 17

PRODUCT STRATEGY : ....................................................................................................................................................... 17

DISTRIBUTION STRATEGY. (Place/Location) ................................................................................................................. 17

PROMOTIONAL STRATEGY ............................................................................................................................................... 18

PRICING STRATEGY............................................................................................................................................................ 20

10. Budget , Schedule and monitoring............................................................................................................................... 20

10.Conclusion ......................................................................................................................................................................... 21



1. INTRODUCTION

This five-year marketing plan for UZONE has been created to lay out and

describe the direction of the company and to launch its new product called

UZONE. The company was formed one year ago by its two co-founders Ananya

and Sucharita when they personally experienced and felt that there is a need in

the market for product like UZONE. UZONE is a unique product which will

help an individual in a family watch TV without disturbing the others in the

house. This document lays out plan of action to successfully launch UZONE ,

by adding distribution channels, targeting and positioning the product and

obtaining additional financing from a bank or private investors for launch of

UZONE.

2. EXECUTIVE SUMMARY

UZONE Pvt. Ltd was founded one year ago by entrepreneurs Ananya Das and

Sucharita They completed their Masters in Business Administration from a

reputed institute a few years ago and joined an IT MNC. After working for four

years, out of which two years were in the US and Europe , Sucharita and

Ananya, friends since their college days, decided to develop and market

UZONE – which is a unique and new product conceptualized by them.

Ananya and Sucharita belong to middle class Indian families. They have grown

up and lived in urban India in apartments with their parents, grandparents and

siblings. Both of them have seen the transition from traditional houses to

small apartments where there is a crunch for space for the members of the

family. The usual layout of an apartment is such that the drawing room is

located in the centre and there are rooms adjoining the same. In most of the

middle rung apartments , the drawing room is combined with the dining area.



Product Description : UZONE

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The TV is generally placed in the drawing room. If a family member watches

TV, its sound reverberates in the apartment. The grandparents and small

kids are usually the heaviest TV viewers. Their constant TV watching hinders

the others like the son or daughter preparing for an examination or if the

father or mother wants to work on something which needs deep

concentration. Nowadays working from home has also become common -

specially in the IT industry. Nowadays, the senior citizen’s prime

entertainment is the TV. With this scenario, there is always an undercurrent

of dissatisfaction and grievance among the family members and sometimes

there is unpleasantness in the generally happy families. In fact, in small

apartments where two or more people stay, the TV viewing of a single

person can infringe upon the privacy of another.

This is the problem which the product UZONE seeks to mitigate.

UZONE is a product which will reduce this tension and create a happy

atmosphere. The product has been conceptualized by the co-founders and

the R&D team of the company has come up with a device which operates via

Blue tooth as well as Wi-fi. It looks like a ear plug or a head phone and when

it is connected to the TV, the person wearing UZONE will hear the sound and



it will be muted for others – just like what a earphone does to a music system

or a cell phone.

Note : Bluetooth is a wireless technology standard for exchanging data over short distances

(using short-wavelength UHF radio waves Bluetooth Smart technology is a wireless

communications system intended to replace the cables connecting many types of devices,

from mobile phones and headsets to monitors and medical equipment.

Once UZONE is launched successfully, the company would like to develop

other products in the same area. This plan will outline how UZONE intends to

introduce its product, get the funding, create distribution as well as sales

channels, enter new markets, and give back to the community.

http://en.wikipedia.org/wiki/Wireless

http://en.wikipedia.org/wiki/UHF

http://en.wikipedia.org/wiki/Radio_waves



3. ORGANISATION VISION &MISSION

VISION

UZONE’s vision is to make families happy and strengthen their relationships

by giving each family member their own TV watching zone.

MISSION

UZONE’s mission is to be the leading producer and marketer of their product

named UZONE for the families who enjoy living together with their kids and

parents. UZONE wants to inspire people to understand the sentiments of the

younger as well as the older generation in their families and live in a joyful and

cordial atmosphere.

We make families happier. We strengthen relationships.

4. MARKETING VISION & MISSION

VISION AND MISSION

To support UZONE and ensure a strong presence in the market through

display, digital as well as printed Advertising. Create product awareness,



create brand awareness. We will deliver a strong brand message and presence.

Our Marketing team has all the skills required to generate quality leads

through thoughtful Marketing strategies in organizing events, use of Social

Media and Advertising.



5. SITUATION ANALYSIS

EXTERNAL ENVIROMENTAL ANALYSIS

Factor What’s Happening

Impact Term Options Moving Forward

Social Consumers want value for money and are negotiating more .

Less profit on actual product. Greater opportunity to up sell services associated with the product/

Long Develop the core / stripped down product UZONE. Make plans for adding features and value add services with it.

Families are moving more towards apartments. They are in usual crunch for space

The flat sizes are becoming smaller and more compact. The household items are becoming smaller and sleeker. Each and every inch of space is being utilized

Long The size of UZONE is small. This should be highlighted in the promotions. The packaging of UZONE should be compact and sleek so that it can be stored safely anywhere near the TV

Technological

Consumers are becoming net savvy and internet is a common thing in most of the urban households

Consumers can research on similar devices on the net. They can also opt for online buying.

Long UZONE can have a strategic partnership with an e-retailer.

Social media is extensively being used

Publicity thru the social media like facebook

Long Create a online or social media promotion plan



Economic Consumers have more disposable income

They can pay more if they see value in the product and if they are happy with the service

Long Create a pricing structure – e.g perceived return pricing, but not too high as the target market are upper middle class families

Easy financing available

Payments are going the EMI way

Long Create a easy financing plan and tie up with financial agents/banks.

Environment

Environmental pollution is being talked about more and more

Noise pollution is also talked about

Long This point can be capitalized and used in advertising and brochures . How UZONE helps in checking hazards of noise pollution.

Political Stable government but elections are due

Government supports nascent entrepreneurs and gives grants

Short Apply for funding and loans immediately

Legal A new law for environmental pollution control has been passed. There is a clause about noise pollution and how it affects the people is there

This should boost the sale of UZONE .

Long Create awareness about noise pollution and its effects on the health. As a part of CSR activity

Plan promotion and advertisement on these lines.



Ethical Indisn culture specially is very inclusive and puts a premium on looking after elders in the family well.

UZONE helps in happy co-existance with ones elderly parents , young children and the spouse.

Long Target the middle class segment and target the husband as well as the wife . Logo and tag line should be designed accordingly. Think of “We strengthen relationships” or “We Hear You”

Using Porters 5 forces to outline the external environments:

FORCE WHAT’S HAPPENING? PRESSURE IMPACT

Competitive rivalry No competitors till now Low Become the market leader by penetrating the market as the first player.

Bargaining power of customers

As there are currently no product like this, the bargaining power of the customer is not so much, but still Indian market is very price sensitive

Medium Create a pricing policy by creating a perceived need and use the perceived value drive the price

Bargaining power of suppliers

UZONE will be the sole supplier right now

Medium Create the right channel partners who will help in the introduction of the product



Threat of new entrants

There are many big players in the market, who can quickly lap up the product idea and come in the market with a similar product

High The marketing plan has to be confidential . Market testing has to be done using simulated testing so that competitors do not know about the product before launch. Select the appropriate geographical region for launch of UZONE.

Threat of substitute products

There is a possibility that some company comes up with a product which substitutes the use of UZONE

Medium The quality of UZONE should be world class. The ease of use and installation will be made very user friendly. Awareness about the product features should be planned. Create a stable support process. Create a strong promotion program.



6. MARKET OVERVIEW

We are in a competitive, fast moving market where there is a strong possibility

of large organizations giving us completion as soon as we launch UZONE. We

expect the demand for UZONE to be high. However, since the concept and the

product is new, we have to step into the market cautiously but with very fast

and accelerated penetration. We will position the product in the minds of the

target segment by using marketing strategies and conditioning via promotions,

awareness campaigns . We will give back to the society by creating awareness

about sound pollution and its ill effects on the health of the people.

THE TARGET MARKET

The target Segment market for UZONE are the upper middle class and middle

class urban families who live in apartments. The head of the family and the

spouse belong to the 40 to 55 years age group. Either both the husband and

wife work or only one of them works. The kids are in the growing up age

between 10 – 18 years. The elderly parents stay with them.This is the typical

target segment for the product. However,it can find a customer in any

household with more than one resident.

These consumers represent a demographic group of well-educated and

successful individuals. Household incomes generally range between 6 lakhs

and 15 lakh INR annually. Despite their comfortable incomes, these

consumers are price conscious and consistently seek value in their purchases.

They are somewhat status oriented but not overly so. They like to be

associated with high-quality products but are not willing to pay a premium

price for a certain brand. During the initial launch of UZONE, this market will

be targeted. Subsequently business buyers like Clubs, Restaurants, Hotels

which have common lobbies, will be targeted.



COMPETITION

Who are they?

Brand Marketing Mix Potential competitive advantage on us

Future XYZ Ltd.

They are into home appliances and TV accessories. So they have the resources, knowhow , ready partners and support centre

Product :Can come up with a quick imitation. Price: Can be competitive Placement : Pan India presence Promotion : They are a known and branded company

They have a PAN India presence and an established company as against UZONE which is a new company with a new product

7. INTERNAL ENVIRONMENTAL ANALYSIS

Using McKinsey’s 7S’s to summarise the situation :

Element Where you are now Where you want to be

The gaps

Strategy New and nascent organization as well as product. New Concept and idea.

Global differentiator

Just local presence, nation wide presence needed. Then strive towards global presence.



Structure We have a R&D, and Marketing, team

Professional organization, better structure

Have an HR, Finance and purchasing departments

Systems Loosely Structured Processes

Highly integrated and lean processes – mostly automatd

Just bare essestial systems and processes,

Basic system structure

Style Our style is “Lean” and “Quality conscious”

Enforce the leanness and quality consciousness

As the size of the company becomes larger, the style had to be ingrained in all the employees.

Staff Few but motivated people. Enough for now

Optimum no. of people as per the forecasted business expansion plan

People will be recruited as and when required as the business scales up.

Skills Skilled people available

Technically sound people for R&D, scaled up marketing team

Recruit skilled people, conduct training for the existing employees. Have regular training programs.

Shared Values Our tagline – “ We strengthen Relationships” drives our value.s

Values and Belief spelt out clearly. This should be the guiding light of all the employees of

Values and Belief not spelt out clearly. Values not shared or communicated



UZONE. Our behavior , outlook towards our customer, office décor, brochures etc should all be in line with the shared values

in the proper manner.

GENERAL SWOT ANALYSIS

Strengths

- Strong and viable concept and idea of UZONE

- Dedicated founders

- Lean organization structure

Weaknesses

- Weak national presence

- Lack of experience

- Limited Cash Flow

Opportunities

- There is a need in the market. UZONE has found the gap and will fill it

- No player exists in this field at present.

- The overseas contacts of the founders will help the expansion in the

international arena.

Threats

- Large Organizations exist which might lap up the novel idea and flood

the market with similar or substitute products like UZONE.



8. ORGANISATION & MARKETING OBJECTIVES

Using the SMART framework for setting the objectives objectives, so that each

one is:

- Specific

- Measurable

- Achievable

- Realistic

- Time bound

1 – 3 YEARS

Objective Strategy

Organisational 2014- 2017 (Over 3 years)

1. Double the size of the business

1. Provide the product to key market segments .

Marketing 2014- 2017 (Over 3 years)

1. Increase number of new business Sales by 25% year on year

1. Provide the best range of products to key market segments

2. Find new market segments – eg. Clubs, restaurants, Hotel Lobbies etc.



9. MARKETING MIX

The following discussion outlines some of the details of the proposed

marketing mix for UZONE.

PRODUCT STRATEGY :

UZONE will be attractively packaged and placed with various features.

1. It will be small and convenient to use

2. UZONE will come with Bluetooth compatibility which can be easily linked

with SMART TVs. For the older version of TVs , UZONE will have a small

adapter kit which will make it Blue tooth compatible.

3. UZONE will also have Wi-fi compatibility built in with the device for the

households who have wi-fi compatibility. If the TVs are not Wi-fi

compatible, UZONE will have an adapter kit which will make the TV wi-fi

compatible.

But his adapter will be offered after the initial launch and when the product

has reached the growth stage. This strategy will keep the concept fresh and

prevent it from becoming diluted with too many variations. The items will

come in trendy and basic colors with the UZONE logo.

DISTRIBUTION STRATEGY. (PLACE/LOCATION)

UZONE will be marketed through regional and local TV dealership shops as

well as cable and Direct-To-Home Operators. The cable and DTH operators

will act as direct sales and distribution agents. There will be an incentive

program for the distribution channel partners who will be given commission as

a percentage. Periodic Reward programs will also be arranged for them.

Over the next three years, UZONE seeks to expand distribution to retail shops

throughout the nation, focusing next on the Northern and the Western

Regions of India.

The product will also be available for online sale. UZONE will have a strategic

tie up with Flipkart for their online sales and will have Flipkart logo in all its

printed advertisement. Eventually we will have our own e-commerce website



and may be able to place internet kiosks at some of the more profitable store

outlets so consumers could order from the stores.

Regardless of its expansion plans, UZONE fully intends to monitor and maintain

strong relationships with distribution channel members.

PROMOTIONAL STRATEGY

UZONE will follow an integrated marketing communication

UZONE will communicate with consumers and retailers about its products in a

variety of ways. Information about UZONE—the company as well as the

products—will be available via the Internet, direct mailings, and in person.

The firms’ promotional efforts also seek to differentiate its products from

those of its competitors in future.

The company will rely on personal contact with retailers to establish the

product in their stores. This contact, whether in-person or by phone, helps

convey the UZONE message, demonstrate the products’ unique qualities, and

build relationships. UZONE will offer training on the features of the products

for new retailers , channel partners or for those who want a refresher.

As distribution expands, UZONE will adjust to meet greater demand by

increasing sales staff to make sure that communication with the customer ,

channel partners and strategic alliances are well maintained.

The promotional strategy also contains the following

- Raise product and brand awareness by advertisement

- Since the product as well as the company is new, and most of the

target audience are unaware of the object, the first strategy is to

create brand awareness.. Advertisement – both print and

broadcast ads will be done. Brochures, booklets, posters, leaflets

will be distributed. Logo , symbols will be splashed in the

newspapers and TV

- Sales Promotions :

- When the awareness drive is at the maturity phase, Sales

Promotions will be planned. WE will set up stalls in the Trade Fair



and Exhibitions. We will have contests and demonstration in the

mall’s atrium. We will choose locational demographic clusters

where the apartment density is thick and offer discounted pricing

samples and later take feedback about the product. This will also

help in a sort of market testing. From the contests and feedback

collected, we will offer some people gifts etc.

- We will conduct nature walks and offer t-shirts with UZONE logo

and slogan to the participants where we will talk about rising

noise pollution as a part of environmental pollution and how as

good citizens it is our duty to control it.

- Personal Selling and direct marketing : The cable and DTH

operators will be incentivized to distribute pamphlets, raise awareness

and get leads.

- Social Media and email marketing :

Tool Target Actions

LinkedIn

-Professionals -Targeted marketing by location, sector, job title, groups

-Set up company profile

Facebook

-More casual -Targeted marketing by location, likes and interests

-Set up a welcome page and a group page

Twitter

-Engaged users/prospects

-Link with company blog

YouTube

-Engaged users/prospects

-Set up video channel

Emails Professionals, housewives, students

Send regular emailers about UZONE , link with blogs . Give tips on family harmony,



communication, sound pollution, feature about UZONE.

PRICING STRATEGY

UZONE will apply perceived value pricing based on the customers’ perceived

value. We will use enough advertising and sales promotion to build the

perceived value in the buyers’ mind. But the firm is not concerned with setting

high prices to signal luxury or prestige, since the product is targeted at the

urban upper middle and middle classes which are very price sensitive and want

value for money. Instead, value pricing will be practiced so that customers feel

comfortable purchasing the new concept and the product. but since the

concept is novel , the price will be higher than the target return concept.

1. UZONE Basic – This will have the device + 1 earplug Rs 999

2. UZONE Plus - This will have the device + 1 earplug + blue tooth adapter – Rs 1199

3. UZONE Wi-Fi : This will have the device + 1 earplug + wifi adapter – Rs. 1199

4. UZONE Advantage : This will have the device + wifi adapter + blue tooth adapter :

1399

5. Extra Earplugs : Rs 100 each

6. Blue Tooth adapter : Rs 250

7. Wi-fi adapter : Rs 350

10. BUDGET , SCHEDULE AND MONITORING

Projected sales for the next three years. Additional financial data are included

in the overall business plan for the company.

Year Projected Sales (Rs Cr) Break Even Sales (Rs Cr)

1 1 0.90

2 2 1.2 3 5 2.5

Monitoring will be done on a quarterly basis The Month-by-month plan will

be tracked on a quarterly basis and the actuals will be added up and the

deviations will evaluated. If the deviations are high, brainstorming and root



cause analysis will be done and corrective actions will be put in place to bring

the plan back on track.

10.CONCLUSION

UZONE anticipates continuing operations into the foreseeable future, with no

plans to exit this market. Instead, as discussed throughout this plan, the firm

plans to increase its presence in the market. At present, there are no plans to

merge with another company or to make a public stock offering.

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