2009

Focused Speakers With AudioSpotlightTM Technology

“Listen to the sounds That Only You Can Hear”

Group 2 Rupaj Dash Lagnajit Mohapatra Sujit Sahoo Udayabhanu Satpathy Swarup Kumar Kar
XIMB

The Product

Situation Analysis
Market Analysis
The market for sound directing devices is in nascent stage. Till now most efforts have been towards sound controlling methods in B2B sector and have been limited to noise control solutions for manufacturing industries, Commercial buildings, corporate offices, Music Industry etc. The offerings from such companies are not electronic, and are made up of materials such as wood, honey comb, fibers etc. Besides, the offerings are not audio control and amplification devices i.e. all they can do are preventing the noise from propagating. With the omnipresence of audio devices causing noise disturbances and pollution, the acoustics noise control and soundproofing industry has started to look towards new markets e.g. homes, airports, restaurants, public venues etc. Audio spotlight thus will create a new market for focused sound amplification and directional speaker devices. The market for top end audio devises is in a very lucrative stage in India. “Times of India” estimates the size of the market to be around Rs. 100 crore. Philips, Sony and Bose dominate the market in this segment. The products from Philips traverses from popular to premium price ranges. Sony is mostly present in the premium ranges, while Bose is completely in the premium range with its prices ranging from Rs 29000 to Rs. 191138.

Competitive Analysis
Possible competitors
1. Soundproofing industry: With heavy research going into better soundproofing materials and acoustics, this industry can be a possible competitor. 2. Wireless personal acoustics: Devices like Wireless headsets can be a possible competition, but these devices have not been positioned as sound segregators and do not have the function of direction propagation of sound. 3. Quality sound and advanced acoustics companies like Bose, which specializes in higher end products giving best quality sound.

Competitive advantages
1. First mover advantage: As no other significant player is present in directional speaker industry, so Audio Spotlight will enjoy the first mover’s advantage. 2. Unique product: The product is based on a novel, innovative and patented technology, which will provide an edge over other competitors. 3. Satisfies a genuine need: Need for privacy and freedom from outside disturbance is a genuine and growing need among people.

SWOT Analysis

Segmentation and Targeting
Description of Idea
The product is similar to a spotlight, but with sound instead of light. As in the case with a spotlight people on whom the audio spotlight is focused on will be able to hear the sound be transmitted. The diameter of the audio spotlight is about 2 meters and the range is about 5 meters. The audio leakage out if this spot is minimal and reduces to less than 10% just outside the spot. The product consists of a thin rectangular speaker and the audio amplification and transmission device.

What will be the concept used for?
The concept has application both for commercial users as well as domestic users. • Commercial Users: o o o o o o o • Movie theatres – multiple languages simultaneously Billboards with sound Shopping Malls Showrooms Waiting lounges at Airports, Service stations etc Pubs, bars and discotheques Museums

Domestic Users o o o o Families whose members have different tastes and preferences when it comes to entertainment Families with babies and infants who tend to get affected by sound from TVs and Sound Systems. Families with older members who tend to get affected by sound from TVs and Sound Systems Individuals who would like to get their entertainment without disturbing others

Segmentation Behavioral:
• • Usage pattern of the population. Consumer behavior towards the usage of entertainment devices like TV, music systems or Home theater systems

Psychographic
• • • • • Attitude towards themselves Family Values Attitude towards entertainment Quality consciousness Risk taking ability

Geographic
• • • Metropolis Tier I City Tier II City

Demographic
• • • Occupation Education Age

Targeting Psychographic Segments Aspirational
• Functional benefit of exclusive audio speaker goes beyond a normal speaker or a headphone

The exclusivity provided is a boost to the self esteem

Hedonistic
• • • Believe in listening to music or watching a movie anytime they want Don’t want to reduce the audio experience But, it is a problem with others in the family

Connoisseurs
• • People have a taste for music which is very different from others. This distinct taste is a hindrance when there are other people around

Innovators
• • Gizmo freaks Music lovers

Other Classifications
• • • • Metros, Tier 1 cities SEC A 25+ Age Group High Usage of entertainment equipment(s)

Our Target Customers
We will be focusing on the B2C segment. “Renaissance” is the ultimate style statement for audio aficionados. Our target customer is one who portrays an arrogance and contempt for established ideals of the society. Who said loud music at the dead of the night is a picture of hell. For him it’s Nirvana. Blasting music destresses him at the end of a long day at the office. At the same time, he is responsible enough to not harm his wife’s sleep nor does he enjoy keeping his neighborhood awake. He just wants to assert his Individuality, his Essence, his Independence. He just wants to be Himself.

Where do our prospects go for recreation?
Multiplexes, Theatres, Amusement parks, Discotheques, Sports Bars etc

Where do our prospects go for shopping?
Boutiques, Malls and Shopping Centres

What types of newspaper, magazines, and newsletters do our prospects read?
• Commercial User: o o Magazines: FHM, Man’s World, Gadgets and Gizmos, Design Today, Photography Today Newspaper: Economic Times, Times of India, Hindu

What TV and Radio Station do our prospects watch and listen to?
• TV o o o All major English New Channels Discovery Channels, History Channel English Entertainment Channels, English Movie Channels

What internet sites do our prospects visit?
Wired.com, Bloomeberg.com, NYT.com

What price can our prospect afford? What value do they expect for that price?
The price will be around to Bose sound system depending on the range and strength of the audio spotlights. A Bose home theatre system costs around Rupees 2, 00,000. The target market has a huge overall overlap with Bose target customers; they will not mind paying a similar price.

Positioning
Positioning of the Product: Audio Spotlight would be positioned as product which can keep away unwanted noises. Unique Selling Proposition: One of the only devices which can limit sound within intangible borders. Functional Benefits: The functional benefits would be like Entertainment without disturbing anyone else in the family, having a non intrusive, personalized and high quality Audio experience and enjoying Hi decibel parties without disturbing the surrounding. Emotional Positioning: It would be positioned as an aspirational product across all target segments Comparison with Competitors: Our competitors like Bose India which provide quality sound and advanced acoustic systems. However our product not only provides quality sound but also can define the boundaries of the sound spread. Our other competitor is sound proofing equipments. Audio spot light is different from these as well, as Audio Spotlight does not have any tangible boundaries.

Sound Source

Discotheq ue

No Sound Zone

Positioning Strategies
1) Product Attributes: Uses Audio Beam Technique. Directed Audio System ( only those within the beam can hear the sound) 2) Product Benefits : a. Audio Spotlight defines the boundaries of the sound and hence can be used in • Open terrace pubs and discos • Airport waiting lounge • TV room in houses b. Only the interested audience would be exposed to the sound waves, without disturbing the neighbors. 3) Customer Usage Occasions: a. TV freaks can watch their favorite late night shows without disturbing the sleeping family members, studying children or people involved in other important activities. b. Pubs and Discos can continue their regular operations in the terrace without disturbing others in that locality. c. Multiple TV channels can e played in the waiting lounge of Airports/ Railway station without creating any interference to the announcements or to each other.

4) Positioning of the products will remain same across all the segments.

BRANDING STRATEGY
The branding strategy has been designed consideration all the elements to be used in a campaign. It is aimed at establishing a roadmap for implementation in a manner that provides clarity, consistency and maximum impact. Smaller plans have been developed to ensure all the strategy components succeed in meeting the established objectives and generate measurable results. BRAND NAME: Renaissance Renaissance means a rebirth or revival. It also refers to the humanistic revival of classical art, architecture, literature, and learning that originated in Italy in the 14th century and later spread throughout Europe.1
1

http://www.answers.com/topic/renaissance

The following parameters were considered when the brand name was chosen:
• • •

Uniqueness – can be trademarked easily no hardware product relating to sound exists with this name. Aptness– It gives cues about freedom, newness Meanings associated– the meaning of the name conveys a new wave – something whose time has come. It also gives a sense of innovation and freedom. The name sounds stylish and can be easily understood and related to by the upscale target audience

BRAND ROADMAP The following brand roadmap will be the blueprint for all future branding initiatives thereby ensuring consistency and accuracy throughout the branding process. It has all the elements that will go into building a successful brand experience for Renaissance. CORE VALUES – The Unique value on which our brand is built can be described as “Truly Independent Sound Experience”. This come from the following attributes of the product: 1. Strongest segregation of sound possible among all the sound system 2. High quality of sound owing to world class audio technology 3. Original feel of sound as opposed to speakers which diminish the audio experience PRIMARY BRAND MESSAGE– The message that we want to communicate is that of sophistication and high value for the premium price the customer pays. To appeal our target segment - upper middle class to high class male customers, the tone of message will be assertive and appealing at the same time. The idea is to create position Renaissance as an aspirational brand. SECONDARY BRAND MESSAGE – The secondary message consists of the smaller elements of the brand to be highlighted. For Renaissance the secondary brand message is “Not compromising with your taste”. This message can be used as secondary taglines for Renaissance. BRAND PERSONALITY – The overall personality of the brand is stylish, cognizant and intelligent. BRAND ICONS -

The above are the two logos for the brand – one full version and the other a shortened one. The larger one will be used on the products and stores whereas the shortened one will be the brand symbol and will be used in ads and other promotional materials. The logo has been deliberately kept simple yet classy to appeal to the upper class consumer. This will reflects the no nonsense approach that is expected from the customer while choosing the brand. This is also in line with all the upmarket tech and lifestyle products like Sony, Gucci or Rolex. The following are the application of the brand on the product line:

The following shows the application of the Logo for stores

The following is the application in Ads (The ad is only indicative and not the actual one)

COMPETITIVE ADVANTAGES –

STRATEGIES – Our strategy seeks a high level of involvement with the target consumer. Renaissance would place itself in the position to match its stylish products with demanding customers who put the same, if not a greater, amount of thought and money into their entertainment choices as they do their furniture and art. The strategy's primary focus is on the product. The product is simple and userfriendly and will score over other sound systems which are very complex in nature. We assume the customer irrespective of his level involvement will prefer a simple product (e.g. most geeks prefer Google Chrome as their browser and iPod as their MP3 player). Renaissance will have a very simplistic yet classy design (similar to an iPod or a macBook). In fact Apple will be our benchmark in product design. Renaissance products will be elegant and streamlined. But each Renaissance product will be highly relevant both functionally and technically. SKILLS – The product is completely unique and has nothing similar in the market at present. This will be leveraged to impress the maximum number of customers. For commercial customers we will Custom-design sound systems for auditoriums, hotels, restaurants, and other performance venues and business uses.

Offer ready to install systems which will require minimal amount of customization.

KNOWLEDGE – The product patent will prevent any other competitor from coming up with a similar product in the immediate future. RESOURCES – The distribution of Renaissance will happen at two fronts. For the business customers direct selling, trade shows and trade catalogues will be used. For private customers the primary contact point will be at the retailer’s end. Renaissance will be placed in most of the high end malls. Renaissance will have brand stores in at least one mall in every metro to start with. This will be ramped up in the future to all the tier 1 cities in India. Mass distribution in typical white goods stores will be avoided in order to prevent devaluation of the brand. Also none of our products will be economically priced or discounted. COMPETENCIES – Apart from the elegant, stylish design and the functional benefit of superior segregated sound, the biggest competency for Renaissance will be the purchase and post purchase experience. Since the target customer will be having a busy schedule and a high level of awareness, our stores and sales force will be designed keeping these factors in mind. Renaissance store staff and sales persons will be qualified and trained so that they can speak to a novice as well as a

geek in their language. In store and onsite demos will be done with potential customers by these trained personnel. Keeping the busy schedule of the customers the after sales service will be provided on site. The lead time for each service will typically be one day and a maximum of two days. For the after sales service the Dell model of direct selling through the internet will be adopted.

CREATIVE APPROACH
CREATIVE DIRECTION
This will provide a direction for the brand to combine the organisations objectives, the research done on the brand and the roadmap developed to create an identity by visual communications. The following will typically be the creative brief given to the ad agency to come up with both print and TV ads along with POS ads and materials. CREATIVE BRIEF FOR AGENCY:

Advertising challenge
What is the advertising trying to do for the brand? What challenge must creativity rise to meet? • • Advertising is aimed at announcing the launch of Renaissance – an audio spotlight or a source of directed audio. The challenge is the prior absence of any such product in the market satisfying the need for directed audio for both individual. Also the need for such a product is latent. So, the attention of consumer needs to be pulled towards for the first time.

Target Consumer
Describe the typical person we are talking to. Rohit is a modern and stylish 29 year old who stays in Bangalore. With 7 years experience, he has oriented himself towards the lifestyle of a highly paid corporate.

He spends his weekends shopping, partying and dining. His penchant for fashion and new gadgets is satisfied by regularly going through niche magazines like Design today, Gadgets & Gizmo, Man’s world and AutoCAD. He regularly updates himself with current business world by going through newspapers like Economic Times and magazines like Business World. He is a person who wants to get noticed by being the first to adopt a new trend. He loves his individuality and has built a network of like-minded people around himself.

Key perceptions & characteristics
Summarize his or her feelings about the brand/category in relation to the task at hand. The category in the current scenario is of higher end music devices. He loves music. Music for him is a getaway from the busyness of life. Just like him, the music he listens to is also special and exclusive. His idea of good music is something in which he can immerse himself totally. He thinks the kind of music he listens to and the kind of music devices he uses portrays him as a person of style and status. He doesn’t mind paying more for any device if the quality is better.

Single–minded proposition
Describe the one reward or benefit we are promising, from the consumer’s perspective. The feeling of listening to music without any headphones, that too without disturbing anybody else provides the customer with a relaxing feeling, enhances the experience of listening to music and makes him/her feel exclusive and special.

Support
Why should the consumer believe what we are trying to say? People who listen to music using a headphone have a feeling of individuality and contentment. Renaissance will offer people even higher feelings of individuality and ownership of the music by doing away with the headphones. The consumer would now listen without the intrusion of any headphone and without caring whether anyone is disturbed or not.

Personality
Use at the most three words and phrases to describe the desired tone of voice. Three words: Philosophical, Assertive & Aspirational

Examples of three phrases: • • • “Leave the world behind” “Because I am special” “Nothing between me and myself”

Media
• • • • • Language - English TV Commercial – 20-30 sec edits Print Ads – Newspapers’ colour pages Point of sale items – Posters, Store branding Product placements – Movies

COMMUNICATION MODEL

APPROACH: NEW ADOPTER HIERARCHY

( Source: Google Images for New Adopter Hierarchy)

Since the product is new, the focus of our approach is to start off by creating an awareness of the product in the right audience through the right channels. The advertisements and the nature of the product should suffice to generate interest enough to warrant a trial. We suggest that our product experience is intriguing and will ensure adoption once trial happens. Further in the Familiarity-Attitude Grid, we expect our position to be low on familiarity and high on attitude once the brand is established.

We suggest a blend of rational and emotional type of advertisement appeal. Our creative approach for “Renaissance” is rather more of an emotional appeal than rational approach. The product is a high involvement product. Also the product caters to a specific need, and not generic need. It can also be implied that the product is a latent need, a potential customer of ““Renaissance” might have always felt a latent need for a product which gives him exclusivity over the sounds he listens, however he would not just drop by an electronics shop demanding for such a product. Thus the Advertising challenges are twofold 1. We have to make the customers aware of the product attributes 2. To achieve an emotional connect with the customers which will make them like and use our product even more. ADVERTISEMENT TYPE: ROSSITER PERCY GRID

The advertisement campaign has to be higher on emotional content and hence transformational ads need to be used. Also since the product is new, niche product the public needs to be enticed in to buying by portraying a picture that is larger than life. Further, it is imperative that the advertisements have a feel-good factor about them. Rational Creative Approach would be used for informing the target segment product attributes as well as benefits of the products, and about the usage product. We would be using one sided approach. We would not be comparative advertising, as our focus is to make people aware of our product than compare it with some other products. of the of the using rather

However since, the product is a high end product, the ad should similarly have a strong emotional appeal to back up the rational approach. The product is in the initial stages of PLC, where product awareness is paramount, and hence rational advertisement is required. However rational approach can take you as far as some initial sales and high product awareness we would recommend using the print channel to focus on mainly on rational approach. The print ad can be used to highlight the product features and attributes. The television media would use primarily emotional approach. A highly aspirational and exclusive product needs an emotional touch to get deeply entrenched in the minds of the person. This strategy would also involve the prospective consumer in completing the circle, thus bringing in a lot of involvement into the product as we perceive our consumer to be high on intelligence. Description #1: Emotional-cum-Rational Approach to be used for the Television Media

Imagine a bustling metropolis, cacophonic noises of cars honking incessantly, people rushing and walking along with the flow of a typical city life. All in all, a discordant and chaotic picture. Just the next scene shows a man coming out of a small tent in the woods, high atop a mountain. He enjoys hearing the sweet chirping of the birds and the sweet melodious sounds of nature complete harmonic settings. Then the ad proceeds to show that such a melodious settings was created by “Renaissance”, which has obstructed unwanted cacophonic sounds and filtered in joyous, harmonious choicest melodies of nature for the user. The emotional connect being used here is giving complete peace of mind to the user, even in the midst of noisy surroundings (typical city life). The ad ends with the tagline bringing out the tangible benefit of the product. Description #2: Emotional Approach to be used for the television medium “Renaissance” is the ultimate style statement for audio aficionados. The user portrays an arrogance and contempt for established ideals of the society. Who said loud music at the dead of the night is a picture of hell. For him it’s Nirvana. Blasting music de-stresses him at the end of a long day at the office. At the same time, he is responsible enough not to harm his wife’s sleep nor does he enjoy keeping his neighbourhood awake. He just wants to assert his Individuality, his Essence and his Independence. He just wants to be Himself. The product placement in the FCB grid-

(Source

http://upload.wikimedia.org/wikibooks/en/thumb/4/4d/Fcb_grid.png/300px-Fcb_grid.png)

As discussed above in detail, it can be inferred that Renaissance will be placed in the third quadrant (High Involvement and High feel). Our product placement will be slightly high on involvement but much higher on feel.

PROMOTIONAL CAMPAIGN
The entire promotion campaign for such a product has to be Different. It should be a signature of the product itself. In the introductory phase Product demonstration is THE way to go about in the PLC the launch of the product. No amount of literature or promotion material is sufficient to create the kind of impact that a well thought of demonstration can do. The demos should be organized in premium malls, frequented by the target audience. The demo should not be explicit and all the better if it is involuntary. Consider a spotlight placed in a particular section of the mall frequented by the target audience. As the subject enters the area, he should be greeted by a pub kind of ambience and music, which would definitely surprise him. As he looks up to see the source, he should be able to see promotional material for the product. Pre launch teasers will be placed in print medium(leading national dailies and magazines) and in shopping malls to generate curiosity about the brand. The product will not be revealed but subtle hints will be provided for the consumer to infer the philosophy behind the brand.

Ad Campaign

An Ad campaign should be launched after the initial aura around the product has been created. Our ad campaign as will have extensive use of both print and television medium to first introduce the product and then to sell in large volumes by connecting to the consumers. The approaches mentioned above will be implemented. No misidentification This is very unlikely to happen as the product is problems not into any existing category, but a new category in itself. Also, the communication would always emphasize the product characteristic of personal sound through the visuals.

OTHER ISSUES IN THE CREATIVE APPROACH We would not be adopting the Endorser approach during the initial stages as the product is very new concept and an endorser endorsing the product at this stage would not bring in a lot of credibility to the endorsement in terms of usage. Also we believe that in the initial stages, the product deserves High Involvement on the part of the consumer to catch on to the concept and involving an endorser might just dilute the effort. However, during the later stages, we might consider reigning in some Endorsers from high adrenaline individual sports like F1 racing or Lawn Tennis to endorse the product. This would also effectively counter the fatigue effect from the initial round of campaigns.

MEDIA BUDGETING
The media allocation for this product was done taking into account a lot of assumptions. This is because this is the launch of a completely new product, and one of the safest method to allocate media budgets is to apportion an appropriate percentage of your sales (turnover). The following steps were taken to arrive at the media budget for our product. Step 1 The product will be launched in 7 major cities of Orissa viz. Kolkata, Delhi NCR, Mumbai, Bangalore, Hyderabad, Ahmedabad. The Population figures of these cities has been given in the table below ( Census data 2001). Our Target segment is chiefly SEC A. We are assuming roughly 8% (pessimistic estimate) of the population

from these cities in SEC A category. So the expected number of prospects are (8% of population). We are assuming, we can have a 3% penetration level in the first six months of our product, chiefly because it is an innovative product and a satisfies a major need in these sound cluttered cities. Also we expect our focused advertisement and focused point of sales to work in our favour.

The average selling price of one unit of “Renaissance” has been kept at 28333 Rs/unit. The pricing has been done keeping in view the industry statistics (price ranges of high end audio products). The total sales ( turnover) from the assumptions taken above is expected to be around 348.5 crore rupees. STEP 2 Since, we had already decided that our advertisement approach would be a mix of Rational (informational ads) and emotional (Transformational ads). We have chosen Population (2001 census data) Expect ed Sales in nos. Average sales price per unit (Rs.)

Sales (Rs.) 810,17 Mumbai 11914398 28595 953152 28333 9,064.00 937,24 Delhi-NCR 13782976 33079 1102638 28333 2,368.00 353,60 Bangalore 5200000 12480 416000 28333 0,000.00 295,50 Chennai 4345678 10430 347654 28333 6,104.00 325,07 Kolkata 4780544 11473 382444 28333 6,992.00 307,70 Ahmedabad 4525013 10860 362001 28333 0,884.00 455,60 Hyderabad 6700000 16080 536000 28333 0,000.00 3,484,9 122997 4099889 Total 05,412.00 print and television, along with direct demo and trial shows (Media planning has been explained in detail subsequently).

City

Expected number of prospects

The chief decision makers when it comes to buying Electronics goods are the chief wage earners of the family ( it may be the male member or the female member), according to data derived from Marketing White Book 2009-10. The table below shows the percentage break up of decision making process in the case of electronics goods. 58 % of the decisions regarding the same is taken by CWE ( chief wage earners)

According to a news report in Financial Express ( Sept 2008), the chief wage earners ( CWE’s) in major Indian metropolis and cities prefer to watch News Channels more than any other program category. Also Information channels are also preffered and watched by CWE’s. The rough break up of TV viewership pattern has been shown below (Pie Chart)

Also from the same source (Financial Express, 2007 data), we have found that Chief wage earners across major cities prefer to read business magazine and news papers slightly more than other category. Hence our Media planning has been focused on TV news channels and Business magazines, to reach out to our Target Segment more efficiently and effectively. We have also chosen lifestyle magazine, as our product is a premium product, and targeted to SEC A category, who read these kind of magazines.

Step 3 To decide upon the frequency of the ads, we have used a model from Batra, Myers and Aaker book. The source of the model is “ Batra and Ray, Indentifying oppurtunities for Repetition Minimization”. According to the model, the frequency of exposure should be 3-4 times in 4 weeks for a growing product, to have the maximum behavioural change over no exposure condition. However for newer product, the frequency can be slightly higher, (4 exposures in 4 weeks ). These statistics are true for high involvement products. The graph below roughly describes the model

Since ours is an new product and it is an high involvement product, we have chosen the frequency of exposure to be 4 exposures in 4 weeks, or correspondingly 6 exposures in 6 weeks. Our media budgeting for print ads have followed this model.

STEP 4 We have also decided to budget our media expenses towards live demo and trials. For that choosing the right place and location of promotion is critical. Again from the Marketing White Book 2009-10, we found that, shoppers ( as high as 67%) prefer speciality shops (product category shops) or speacility shops ( brand shops) to shop for high end electronics products. The following table depicts the trend in percentage figures. In our selected 7 cities, we found out that most of these speciality shops are in Shopping malls or large shopping complexes. Thus we have decided to launch out live demo shows and trial shows at these locations.

Media Planning:
One of the most important Ps in Marketing is Promotion. With growing competition, more and more importance is paid to the promotion of the product. Media planning is used more synonymously for promotion. Media planning is basically conceptualising the communication methodology for the product. The parameters those are taken into consideration are the underlying costs, budget, scope of the planning etc. The three main questions those revolve around media planning are: 1. What is to be promoted? This describes about the product to be promoted which is the “Audio Spotlight” in our case. 2. When and How to start the promotion? The idea is to start the promotion before the product launch by some teasers. 3. Where to promote the product? When the product will be launched, then different media vehicles like TV, News Papers, Magazines etc would be used for the promotion. And, after gaining some awareness, the plan is to place the product in the movies.

Media Class:
1. Live Product Shows: (Outdoor) a. Malls b. Moving Vans 2. TV Commercial
a. During News Serials

3. Print Ads

a. News Paper
b. Life style and Business Magazines

4. Point of sale items a. Posters b. Store branding 5. Billboards

Rationale:
Renaissance is a high end category product and is targeted towards the elite class. India is considered to be a young country as the Gen-X population is growing. Also, a wide range of malls are coming up in Indian market. Hence, there is an increasing trend of youths visiting the malls. So, in process of the media planning Live Product Shows plays an important role as it is a complete new product with breakthrough innovation and it can best be promoted by demonstrating the product in high density areas. As the target consumer base belongs to the SEC A and SEC B category, we can assume that they must be using various TV channels through the Cable connection or through dish TVs. The idea is to first launch teasers and then the ads about product. So, by this we can reach to the target audience quite easily and can draw their attention too. Print Ads and Point of sales items are in radar to capture the attention of future consumers too as it is widespread in nature. Showing the product on Billboards on busy streets and places near airport are highly expensive but we decide to go for that as the target audience would like to watch out for those while going through those roots.

Competitor Analysis:
As the product is completely one of its kind, till now nobody else has actually into the particular “Audio Spotlight” industry. So, the nearest competitors can be companies which are into the digital audio and sound industry. As per the brand status in Indian Music and Sound industry Philips and Sony are considered to have pioneered. Though our product is not so easy to be replicated, but there is a high possibility that these two companies might so their interest to gain the market share. So, we would consider them to be our top most competitors. The actual media spent for the companies are not available to public information. So, the method of calculation we adopted is to get the total Communication spent from the income statement and then apportion the same by the sales value of audio components to total sales. All the data have been taken from the Prowess database. Sony 802 355.96 2340 0.1521 Audio 122.000 13.632 Philips 46 455.1 1535.7 0.2963

Total Communication Spent Sales of Audio Instruments Total Sales Ratio of Sales Communication Spent on Instruments *All the figures are in Crores

Hence, the media budget of Sony; 122/355.96 = 34.27% And for Philips; 13.632/455.1 = 3% As our company is a new company and with the little seed money, the Communication Spent would be lesser than these players. At the same time we are planning to spend a proportionate Communication Expense to Sales ratio as Sony as promotion plays an important role for a product like ours at the early stage of business.

Strategy for Media Planning:
When comparing the cost and effectiveness of various advertising media, we considered the following factors:

• Reach: Expressed as a percentage, reach is the number of individuals (or homes) we want to expose our product to through specific media scheduled over a given period of time. • Frequency. Using specific media, how many times, on average, should the individuals in our target audience is exposed to our advertising message? It takes an average of three or more exposures to an advertising message before consumers take action. • Cost per thousand. How much will it cost to reach a thousand of our prospective customers (a method used in comparing print media)? To determine a publication's cost per thousand, also known as CPM, we divided the cost of the advertising by the publication's circulation in thousands. • Cost per point. How much will it cost to buy one rating point for our target audience, a method used in comparing broadcast media? One rating point equals 1 percent of our target audience. Dividing the cost of the schedule being considered by the number of rating points it delivers gives the cost per point. • Impact. Does the medium in question offer full opportunities for appealing to the appropriate senses, such as sight and hearing, in its graphic design and production quality? • Selectivity. To what degree can the message be restricted to those people who are known to be the most logical prospects? Reach and frequency are important aspects of an advertising plan and are used to analyze alternative advertising schedules to determine which produce the best results relative to the media plan's objectives.

MEDIA VEHICLES
Media Vehicle is defined as specific print or electronic medium employed for the promotion of the product. The challenge is to optimise the media vehicle for the target consumers’ behaviour and the cost associated with the campaign. Our target segment is SEC A with age group of 25+. This segment is more towards building their career and enjoying life at the same time. So, the media vehicles chosen are more of linked towards the sophisticated business Magazines, popular newspapers and business news channels which are famous for attracting the youth. The newspaper like Time of India is generally read by all kind of people in India. So, this will give us the exposure to the potential consumers for the future growth of the company. Certain schedules work best with different media. For example, the rule of thumb is that a print ad must run three times before it gets noticed.

Hence for the print media, the vehicles chosen are: – Times of India – Outlook – India Today – Man’s World

From our secondary data analysis, it is found that most of the young population watch TV after coming from office while relaxing at home. They prefer to go through the news channels mostly related to business and markets. So, the vehicles chosen for Electronic media with time slot of 8:00PM to 11:00PM are: – NDTV Profit – CNBC TV 18

MEDIA VEHICLE SOURCES
Expertness: The expertise of the media vehicle like lifestyle magazines is sure to promote our product to a great extent when advertised in those. Prestige: Taking the prestige and the credibility of the media vehicles into account, we have decided on back page of the Magazines as that is viewed the most after the front page. We have decided on channels and newspapers/magazines of national and regional repute for our campaign. Audience involvement: Noticing the trade off between high involvement programs-low ad attention and low involvement programs-high ad attention, we have decided to not to take it into account as all depends on our ad and its strength.

Media Budget: Actuals
The market size for top end audio device is of around Rs 100 Cr which has 3 major players as of now.[1] The actual break up of media budget is presented below

1) Print Media

Total Media Budget

Total ATL Promotion Budget (Cr.) Total BTL Promotion Budget (Cr.) Total promotion budget (Rs. Cr.) Ratio of promotion to sales

11.59

0.50 12.09

3%

References [1]http://timesofindia.indiatimes.com/NEWS/Business/India-Business/Top-end-audio-marketsees-10-15-price-cut/articleshow/1129719.cms
http://www.financialexpress.com/news/chief-wage-earners-prefer-tv-news-to-soaps&-cricket/114541/ Marketing White Book 2009-10 Advertisement Management- Batra, Myers, Aaker