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Introducing a new product in the market


Prepared by: MC070400829 NOORUDDIN

Teacher: Dr. Amjad Habib Mirza
1) Executive Summary…………………………………………………3.

2) Source of Idea………………………………………………………4.

3) Questions to answer

before introducing the product in the market…………………5.

4) Segment and Target Marketing…………………………………7.

5) Marketing Mix Strategies

a. Product Strategies………………………9

b. Pricing Strategies……………………10..

c. Promotional Strategies…………………11.

d. Place Strategies…………………………12

6) References…………………………………………………………13.


POS SOLUTIONS is dedicated to providing your business with revenue generating

solutions and money saving products and services. Our established relationship with leading
financial institutions can help you start saving money today!

Nowadays, wholesalers and retailers can see many risks and little or no current benefit for
providing Point-of-Sales (POS) terminal and getting nothing in return. Acceptance will
require distributors to mitigate the risks they perceive, develop trusting relationships with
them and demonstrate how they can benefit from providing the data, which requires
additional work on their part. And while using the terminal to make sure those sales
representatives are adequately compensated.

Wholesalers and retailers can see many other potential benefits---especially if POS data is
utilized for marketing purposes. Examples include utilizing the information for collaborative
planning purposes, providing detailed market analyses to uncover new opportunities,
analyzing sales and penetration in specific markets, and analyzing the profitability of specific
channel partners. Various risks were perceived in providing Point-of-Sale terminals by 92.9%
of the respondents. Confidentiality of the POS data information is the biggest fear---whether
the information will be shared with competition---directly or as a result of turnover of sales
representatives---or used to sell direct or through other channels. But whatever the intention
of distributors in the use of POS terminal

The roadmap for distributing is best summarized by one distributor’s comments---

“Distributor and wholesalers as well as retailers can mutually benefit if the agreement for
providing POS terminal spells out, who will and will not see it, and what it will be used for.
Strong, exclusive relationships can benefit from the sharing and planning aspects of POS
so that it can be used to plan for growth in revenue and profits.”


The idea for doing POS distribution is implementing daily basis transaction to go techy. In
other words, majority of banks in the region providing services such as Credit Cards, Debit
Cards, Value Cards for the betterment and hassle free transaction. But due to unawareness
and less education make it worse. The below report from Daily Times provided that the
banks in the region to facilitate customers in such small charges the services. Now is it up to
the customers individuals/wholesalers/retailers to take advantage of them.

At the end of second quarter of the current fiscal the number of credit, debit, smart and ATM
cardholders increased from 3.664 million to 4.072 million, showing a growth rate of 11
percent as compared with eight percent during the previous quarter. The total number of
credit cards reached to 1.257 million from 1.181 million and registered a growth of six
percent as compared with 13 percent in the preceding quarter.

The total number of debit cards increased from the previous quarter figure of 2.197 million to
2.556 million in the current quarter, showing a growth rate of 16 percent as compared with a
14 percent growth rate in the preceding quarter. The total number of ATM cards is 0.137
million in the current quarter as compared with 0.175 million in the previous quarter,
showing a decline of 21 percent and it is because of convergence of ATM cards into debit or
smart cards. The total number of smart cards, which offer a high level of security, has
reached 0.122 million at the end of 2nd quarter as compared with 0.111 million at the end of
the last quarter, showing a growth of 10 percent over the last quarter.


Ǿ What benefits do you see in providing Point-of-Sale (POS) to wholesalers/retailers?

In order to visualize potential benefits in using the POS Terminal, especially for proactive
planning. However, Point-of-Sales terminal must be utilized proactively by wholesalers and
retailers and not just for solving compensation issues with sales representatives. But also to
facilitate customer in freedom to use their banking effectively and efficiently. Such benefits
driven are improved Inventory Management, get better use of technology, and freedom of
carrying cash, commission and compensation issues, resolving issues in tax return.

Ǿ What potential risks do you see in providing Point-of-Sale (POS) to


Various risks were perceived in providing Point-of-Sale to wholesalers/retailers, around 73%

of them disagree of doing transactions through POS due to lack of understanding or
tradionally they were used to do transaction through cash. while 27% of them saw no
potential risks. Confidentiality of the information was the biggest fear---whether the
information would be shared with competition, used to sell direct, or used to through other
channels when transaction made over POS. Turnover of sales representatives was a key
concern. Such concern are Information could be easily shared between competitors, breach of
confidentiality / Security, Control distribution, doing transaction and paying additional
charges for maintaining annual charges etc.

Ǿ If the potential risks you see were mitigated, would you be willing to provide Point-
of-Sale (POS) to wholesalers/retailers?

While 25% wholesaler/retailer from different part of city answered the Yes part of this
question, 75% of the respondents provided additional comments. The majority of the
respondents are willing to adopt Point-of-Sale terminal if they were provided with incentives
to do so, the key to successful adoption of POS is trust in the individual , non-disclosure
agreements, a clear understanding of the benefits the stakeholders will receive for the risk
and extra work required, i.e., ---“What’s in it for me?” is the question every one asked.

Ǿ What would you expect to receive in return for providing Point-of-Sale (POS) data to
marketing institutions?

How the POS terminal could be used to improve marketing and sales support efforts, as is
done in the retail channel. And wholesaler provided ideas on the types of analyses they’d like
to receive in return for providing POS information such as market statistics, sales support,
exclusivity, better financial terms, demand of retailers etc.

Ǿ Do you currently see any one providing Point-of-Sale (POS) to wholesalers/retailers?

Those retailers and wholesalers who are using POS terminal are using them not to deal with
transactions but to provide advance cash transaction to customer for the incremental
percentage of commission they could earn hence creating more complex and hoax situation.


Market segmentation is one of two general approaches to marketing; the other is mass-
marketing. In the mass-marketing approach, businesses look at the total market as though all
of its parts were the same and market accordingly. In the market-segmentation approach, the
total market is viewed as being made up of several smaller segments, each different from the
other. This approach enables businesses to identify one or more appealing segments to which
they can profitably target their products and marketing efforts.

The first is to define the market in terms of the product's end users and their needs.
POS terminal distribution has been done by the major financial institution to promote their
product in this region whereas in other part of the world there are number of company’s who
provide such kind of service and collect data and provide the manufacturer in order to assist
them in creating more consumer focus products
END USERS: Individuals, Wholesalers, Retailers ( from transactions point of view to cover
all the day to day cash transaction without keeping ledgers and inventory ), banks,
manufactures, marketer, advertiser (from data point of view to promote their product and
make them better and better from their competitors with the data collected on POS)

The second is to divide the market into groups on the basis of their characteristics and
buying behaviors.
Market has been divided into groups according to the preferences of work such groups are
Individual ( Salaried Worker, Entrepreneur, Broker, Govt. Employee, Strategist, Stakeholder
etc), Wholesalers (Electronic & Computer, Beverages, Groceries) . Retailers (General Store,
E Commerce, Smoke Shops, Medical Stores) and also Banks (Consumer, Investment,
General), Manufacturer( Beverages, Medical, Tobacco, Cooking Oil, Communication )

The most common elements used to separate consumer markets are

demographic factors,
Such factors include the area, language, nature and traditionally acceptance of product.
Education level, banking services etc.

psychographic characteristics,
Such factors include consumer are being benefited or left blind, pinpointing buyer which
same needs, wants from the demographic area, same level of education, family status, etc

geographic location,
From manufacturer, banking point of view the information of adoptability, preferences of
buyers will help them to make good fortune by making good efforts in designing such types
of product

perceived product benefits.

The advantage the consumer receive from goods or services over alternatives. Use of card
can be valued, benefited by incentives to individuals on purchase, wholesalers and retailers
on cash rewards etc.

Adopting a market-segmentation approach

can benefit a company in several specific areas.

First, it can give customer-driven direction to the management of current products.

Second, it can result in more efficient use of marketing resources.

Third, it can help identify new opportunities for growth and expansion. At the same time, it
can bring a company the broad benefit of a competitive advantage


The term marketing mix refers to the four major areas of decision making in the marketing
process that are blended to obtain the results desired by the organization called the Four Ps:
product, price, place (of distribution), and promotion. All these functions are considered in
planning a marketing strategy, and any one may be enhanced, deducted, or changed in some
degree in order to create the strategy necessary to efficiently and effectively sell a product.


POS terminal is taking on a new meaning in retail as

retailers begin to deploy advanced POS software systems that
go beyond the standard function of ringing up and recording sales.
Retailers that needs upgrade their POS software or new to implement are
reaping major benefits out of new multi-functional POS capabilities. With increased and
advanced functionalities, our leading-edge POS systems are faster, can integrate with other
applications easier and provide powerful data-driven insight into the customer experience.

Beyond customer insight, retailers/wholesalers that are buying POS system choose systems
with flexible functionality. According to our small research and study, some of the latest POS
functions that retailers plan to incorporate into their POS systems include loyalty and
customer relationship management (CRM), inventory visibility, gift card and phone
activation, and returns and refunds management. These four functions ranked as the top four
POS functions on retailer's high priority lists, emphasizing the fact that customer-related
capabilities are front of mind.

Merchants will see a variety of benefits in moving to our privatized system:

• Updated security measures on new technology that has been certified with Interact
• Faster, more efficient payment
• Eliminate 100% of all bank fees on debit card transactions.

• Move your Interact payment expense to a profit item on your financials
• Conversion is seamless. One only needs to disconnect the existing terminal, and plug
in our new terminal to be up and running with us.
• Options for merchants to choose a "surcharge" or "non-surcharge" mode***
• Quicken response time if equipment needs replacement
• Merchants have the option to purchase their own terminals or to lease, rent and in
some cases, have free placement of terminals.
• Friendly service professionals always willing to help!
• Tremendous REVENUE GENERATING opportunity
• Our customers are very important to us. They are the reason we are in business, and
therefore, our first priority is to offer the best service in the industry.
• Prompt and informed call centre
• Long distance phone cards and cell phone minutes
• 24 Hour, TOLL FREE Customer Care Program
• Local operated service
• Programs that meet your budget
• Electrical receipt capture function
• Smart Card ready
• Rental program available!


POS SOLUTION presents a new concept for merchants to GENERATE REVENUE with
every debit or cash-back transaction they process. Use our POS machines to make money!

If you’re not certain POS SOLUTION can benefit your bottom line, look at these stats based
on a very moderate 685 complete transactions. Costs are averaged and can actually be much
higher! *


Monthly Rent Rs.500 Rs.0
Transaction Cost /Swipe 3% per trans Rs.0
Transaction Revenue/Swipe 0 Rs 7
Monthly Merchant Cost Rs.1,000 Rs.0
Monthly Merchant Revenue Rs. (1,500) Rs. 1,497


Industry standard is a 3% for customers using their debit card, of which 5%-10% is
paid back to you, the merchant.

Banking charges are a reality, and in reality the card-holding consumer is paying these
charges, although these costs are traditionally hidden.

Surcharging allows merchants to expose their costs.


The threshold feature works well with the surcharge feature. It allows you, the merchant
to set a fee minimum…the surcharging option will jump in to effect for ticket items priced
under that minimum. For example, the threshold is set for Rs.500, all items purchased below
Rs.500 will be charged the “convenience fee” for debit purchases, and all items over Rs.500
will not be charged the fee. The merchant will bear the cost of those transactions.


Promotion can be done using disseminating information about a product, product line, brand,
packaging, or company. It comprises of four subcategories
2)Personal Selling
3) Sales Promotions
4) Publicity and public relations


wall paintings, billboards (outdoor advertising),street furniture components, radio, cinema,
television ads, web banners, web popup, skywriting, bus stop benches, magazines,

newspapers, town criers, sides of buses, taxicab, musical stage shows, subway, platforms
and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the
opening section of streaming audio and video, and the backs of event tickets and supermarket
receipts, Any place an "identified" sponsor pays to deliver their message through a medium is
advertising. printed flyers etc

We are going to follow the marketing communications planning framework (MCPF)


Certain areas in our planning including north, south, east and west part of our region. Such
areas including merchants focusing on retailers/wholesalers etc. from different background
based on the size of their business. Minimum turnover requirement for a business is Rs.
500,000/- to start using our product.


Marketing Management, Virtual University of Pakistan, Dr. Amjad Habib Mirza Lecture

Marketing Management by Philip Kotler , for additional resources

Daily Times, Newspaper

Different Banking Web Sites

Wholesalers/Retailers in the region