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Table of contents Executive Summary 1.Situation Analysis 1.1. Industry Analysis 1.2 Sales Analysis 1.

3 Competitive Analysis 1.4 Customer Analysis 1.5 SWOT Analysis 2. Objectives 2.1 Corporate Objectives 2.2 Marketing Objectives 3.1 Market Segmentation Strategy 3.2 Targeting Strategy 3.3 Product Life Cycle 3.4 Potential Strategy 3.5 Core Strategy 4. Marketing Programs 4.1 Marketing Mix 4.2 Loyalty Programs 4.3 Customer Service & Support 4.4 Market Research 4.5 Trust and Credibility 4.6 Trade Promotions 5 Implementation Plan 5.1 Product Design and Development 5.2 Marketing & Sales 5.3 Distributors 5.4 Resource Requirements 5.5 Scheduling 6 Performance Evaluation And Monitoring 6.1 Monitoring Ad Campaigns 6.2 Sales Analysis 6.3 Profit and Loss Statements 6.4 Customer Profiling 6.5 Salesforce Evaluation

7 Financial Information 7.1 Financial Capsule 7.2 Financial Assumptions 7.3 Budget 7.4 Sales Projections (5 years) 8 Contingency Plans 8.1 Symptoms of Failure Appendices

EXECUTIVE SUMMARY The corporate objective is to make APEX a truly excellent company that is admired, respected and to strive to join the ranks of the top 3 companies in terms of digital camera manufacturing. In terms of the current digital camera market, APEX is still in fierce competition. We have several main competitors such as Olympus, Sony, Samsung and Canon; experiencing the competition based on the attributes such as price, design, quality, and features. We obviously have our outstanding R&D Department as competitive advantage and we also should continue to develop new innovation. APEX focused on strengthening product competitiveness along with the changing times, stepping up efforts to digitize its products to deliver new value in an increasingly networked world. The company also improved its processes through various management reforms across all divisions. The new product___ Power Shot SD4500 is digital compact camera with a slim, stylish camera body. It has the following features. 1. 10.0 Mega pixel back-illuminated CMOS sensor combined with the DIGIC 4 Image Processor create Canons HS SYSTEM for improved low light performance and better image quality. 2. 1080p HD movie shooting capability plus HDMI output connector for easy playback of video and photos on your HDTV 3. Advanced Smart AUTO now identifies 28 shooting scenes, making automatic shooting even more intelligent. 4. Shoot slow motion video with the Super Slow Motion Movie function and playback at 30fps. 5. High-Speed Burst mode for capturing sports and action shots. 6. Cool new features like Best Image Selection and Handheld Night Scene, give you greater flexibility when shooting your favorite images. We select the followings as our target markets: 1. The young who has received higher education, and are interested in new technology innovation, as well as pursue individualistics.

2. The middle-aged people(always the female), who have established their occupation and their social status. They purchase digital camera mainly to record their daily life. Distribution channel is the link connecting manufacturers and consumers, APEX is beginning with Head office in Islamabad and distribution offices in Lahore, Karachi, Peshawar and Quetta to increase market share in Pakistan. We select multi-level selling method which means that directly through the agents or retailers and internet; delivering superior service to consumers.

1. SITUATION ANALYSIS 1.1 1.1.1 Industry Analysis Market Characteristics

Our target market Pakistan, as a large population of more than 18 million, is developing rapidly recent years. There is no doubt for regarding the large Pakistani market as a main potential development area, since it is in growth stage. Sony, Canon, Olympus and Samsung is playing a leaders role in the Pakistani digital camera market. All these brands threaten APEX most, since they occupy particular market share as well as own advanced technologies. Others Chinese brands will not have obvious effect on us because of their shortage of technology and time to market. 1.1.2 Trends and Drivers

According to our market research, the major trends change a little in digital camera industry. These changes attribute to the improvement of peoples living standards. To some extend, fashionable home appliances has become a symbol of ones status. Most people purchase new digital cameras mainly because of the limitation of current cameras functions. They pursue not only a slim and stylish camera body, but also a high quality of its functions, such as high pixel, highly effective optical image stabilizer and so on. Most of our consumers are the young who have received higher education, and the middle-aged people who have established their occupation and their social status. 1.1.3 Technological Factors

The appearance of advanced computers and digital machines has brought us into a technology age with rapid rate of technological innovation. This has made lots of contributions to the digital industry. We will bring in the advanced face, motion and scene detection technology to our new digital compact camera, so that it can not only improve the qualities of our new camera, but also help us cut down our companys cost in research and development for updating current technologies. 1.3 Competitive Analysis

1.3.1 Competitive landscape In terms of the current digital camera market, APEX is in fierce competition. We have several main competitors such as Sony, Samsung, Canon,Olympus and experience the competition based on the following attributes such as price, design, quality, and features. Players having backward innovation cannot survive in current situation. We obviously

have our outstanding R&D Department as competitive advantage in this aspect, and we also should continue to develop new innovation. 1.3.2 Key Players

Our main direct competitors are Sony, Canon, Samsung and Olympus so far. Sony has highly established popularity in the area of home appliances, based on which its consumer digital camera market in Pakistan has exceeded. Canon has a long history and is also famous for its quality of professional expertise as well as its well-known images. It is the company who threaten Sony most in the field of digital camera. We have some indirect competitors such as mobile manufacturers. Now a days most mobiles have the function of shooting, and usually have high pixel. Even though they have these features, they will not threaten us as it is difficult to well combine functions of camera into mobiles so far. But it may be a big threat in the future since technology is developing. Sony has 20% market share, Canon has 26%, Olympus has 8% and Samsung is having 2%. Other includes Chinese brands and mobile phones 1.3.3 Key Players vs. Your Company

We select our main competitors and compare them to our company. Evaluate the performance of their marketing activities and identify the intensity and type of threat they pose, main strategies, recent initiatives and offensive tactics (directed towards our company). Briefly analyze the following elements and compare them to our company: Product/service offering (characteristics, features, benefits) Size (in terms of sales, market share, infrastructure and customer base) objectives Strengths and weaknesses Brand equity; customer loyalty, brand awareness, brand recognition and brand reputation Past, present and future strategies Marketing strategies (positioning, branding, advertising, media expenditures) Probable actions in response to market changes and to our company. Efficiencies in cost structure (e.g. economies of scale or scope, streamlined processes, JIT, etc.) Degree of vertical integration History of innovations Strength of management Strength of distribution Financial resources TABLE 2. Main Competitors

1.3.4 Competitive Advantage We have the following competitive advantages: 1. Brand advantage: Based on the constant technological accumulation and innovation, we can be among the leaders of digital camera. 2. Product Innovation: Our strong innovation ability and advanced technology has enable the APEX camera to have an extraordinary quality and performance. For example, the CMOS image sensor is the key to the core of a digital camera imaging device. Compared with the conventional CCD, Canon original CMOS signal processing has a higher capacity, higher resolution, power consumption is also lower. There are also EOS Integrated Cleaning System, EF innovations such as e-focus lensAll this makes its EOS series of cameras become photography equipment. 3. Service advantage: APEX recently emphasize the always moved concept to improve customer satisfaction. In order to implement this idea, we devote ourselves to build a comprehensive, professional, convenient and diversified service during the pre-sale, sale, after-slae. 4. Channel advantage, Channel is the link connecting manufacturers and consumers. We are beginning with channel flat, and directly service consumers through the agents and distributors, and quickly increase our market share .

1.4

Customer Analysis

1.4.1 Segmentation Dimensions We segment our target market mainly according to the following dimensions. Demographics Psychographics Behavioral Nature of relationship with customers 1.4.2 Target Market Briefly identified our target market (s) (see section 3.2.1 for profile of target market) 1.4.3 Forecasted Changes

1. People tend to pursue digital cameras with many functions, not only shooting one. 2. Targets markets buying behavior is mostly determined by their disposable income, which concerned with economy. 3. Target consumers of consumption cameras will become rarely to use their digital camera. On the one hand, their mobiles also have the shooting function; on the other hand, they may have less

4. time to enjoy and record their life, because more time will be spent on their jobs. 1.5 SWOT Analysis The following table shows APEXs key internal strengths and weaknesses, the threats it faces and the opportunities that the market presents. STRENGTHS - High technology innovation ability - Efficient production lines - Superior product - High qualified workforce - Board distribution channels OPPORTUNITIES - Expanding markets - Growing demand - New distribution channels - Building innovation reputation WEAKNESSES - Weak response to complaints - Lack of customer awareness - financial resources - Low consumer satisfication

THREATS - New competitors - Economy changes - Substitutes/Mobiles - Market Saturation

TABLE 1. SWOT

2. OBJECTIVES 2.1 Corporate Objectives The corporate objective is to make APEX a truly excellent company that is admired, respected and to strive to join the ranks of the top 3 companies in terms of digital camera manufacturing. 2.2 Marketing Objectives

2.2.1 Short-term (upcoming year) In the short-term (upcoming year), we strive to reach the following goals: Improve customer loyality Increase brand awareness in middle-aged consumer market from 11.21% to 31.51% in year 1) Extend reach of communications to 90% of target customers for each campaign. Create brand awareness for new product to be launched in forth quarther. Sell 200 digital cameras per week Achieve a high level of customer satisfaction among 95% of target customers Increase market share in digital compact camera market segment by 5% this year. 2.2.2 Long-term (3 to 5 years) APEX focuses on strengthening product competitiveness along with the changing times, stepping up efforts to digitize its products to deliver new value in an increasingly networked world. The company will improve its corporate financial health through various management reforms across all APEX businesses and divisions. Aim to be among leaders in all major products and businesses. Strengthen product competitiveness along with the changing times. Step up efforts to digitilize our products to deliver new value in an increasingly networked world Build strong awareness for digital compact camera over next three years. Acquire 20% of our competitors customers by year 4s Increase profit margin by 12% by year 3s Secure partnership with all major distributors in market.

3. MARKETING STRATEGY 3.1 Market Segmentation Strategy We adopt the combination of the following strategies to segment the market: 1. Demographic segmentation (Age, Gender, Social class, Occupation, and Nationality) 2. Psychographic segmentation (Lifestyle, Attitudes and beliefs, Adopter category, and Personality) 3. Behavioral segmentation (Benefits, User status, User rates, Attitude towards product, and Brand loyalty) Through the above segmentation method and market research, we position our target market. 3.2 Targeting Strategy

We select the target marketing strategy, which can enable us make great achievements, to launch our new camera. 3.2.1 Target Market We select the following as our target markets: 1. They teenagers, young who have received higher education, and are interested in new technology innovation, as well as pursue individualistics. 2. The middle-aged people , who have established their occupation and their social status. They purchase digital camera mainly to record their daily life. Specified profile of target markets as the following: Demographics Age Gender Nationality Occupation Social class Psychographics Lifestyle Attitudes and beliefs 15-40 Both male and female Pakistani Professional; ,officials, businessmen and students middle class, high class Strivers; Achievers Optimistic, Enthusiastic

Personality Adopter category

Outgoing, Life-enjoying Innovators, Early majority

Behavioral Benefits User status User rates Brand loyalty Attitude towards product

Quality, Service, Convenience Regular user Medium user Medium Positive

Nature of relationship with customers We maintain a regular relationship with our consumers by telephone and Internet. We often request their feedback twice a quarter through the Internet. 3.3 Product Life Cycle

Identify the developmental stage of your product (i.e. the degree of acceptance your product has earned in the market) and identify the appropriate message to convey in your advertising. The three primary stages are: Pioneering stage o We use magazines and billboards advertising in this stage to build an awareness of the new digital compact , and briefly introduce the diversified characteristics of our camera. The purpose of this is to enhance the popularity of our new launched camera. Competitive stage o We use TV advertising in this stage to establish your products superiority over competing products. We mainly emphasize on the real demonstration to publicize functions and quality. Retentive stage o We use magazines and newspaper advertising in the stage simply to reinforce or remind customers of the qualities and acceptance our new digital camera is already recognized for.

3.4

Potential Strategies

3.4.1 Strategy Formulation We have identified the marketing strategies that are available to APEX. We provide the underlining segmentation and targeting strategy and briefly describe the major elements of the marketing mix for each strategy (product, place, promotion, price) (marketing mix

element will be detailed in section 4.1 Marketing Mix). Marketing strategies may be based on the following generic business strategies:

Differentiation Strategy o Marketing strategy will involve differentiating your company from competitors by highlighting key variables such as price, quality, features, customer service, etc. Cost Leadership Strategy o Marketing strategy may involve cost-cutting initiatives across the distribution/production process and/or may involve offering a heavily discounted and standard product to all market segments. Cost Focus Strategy o Marketing strategy will involve offering a basic low-cost product to a small market segment. 3.4.2 Strategy Pros & Cons Strategy#1: Differentiation strategy Pros: -Diversify our product from other competitors -Build good product reputation . Cons: -High cost used to publicize the image -Strong imitation from competitors . Strategy#2: Cost leadership strategy Pros: -Make lower prices possible -Increase the sales and market share. . Cons: -Bad Influences on product quality -Reduce companys credibility Strategy#3: Differentiation Focus Strategy or Niche Strategy Pros: -Meet customers needs easily -Make more profits .. Cons: -Slow increase in market share -Need to position target market accurately .

3.5 Core Strategy We select the combination of the demographic, behavioral, psychographic segmentation strategy to segment our market. Then we select our target market, and adopt differentiated marketing strategy to offer them diversified product. In order to response to the competitors aggressive behaviors occurring in implementing marketing strategies, we make up several potential emergency strategies, such as differentiation strategy and cost leadership strategy. We also identify the youth-oriented marketing, unique packaging and loyalty marketing as part of our core strategy. Above strategies will contribute to our launch of new digital compact cameras. 3.5.1 Positioning Strategy

We can develop our distinctive advantage in selling new product. We have established a logistics distribution center in Islamabad and formed a nationwide distribution network to ensure that products can be smoothly and quickly passed to the camera user. In fact, APEXs logistics system has been able to guarantee delivery within 48 hours(max) across the country. We set up an experimental system, which enable our customers to witness our high quality through experiencing by themselves. We are convinced that we can acquire a particular scale of our competitors customers. Once we have established our reputation, we can position and select our target market according to the popularity in technology innovation. Our product concept is enjoying innovation, so that it can attract attention of our target consumers who purchase advanced innovation. 3.5.2 Branding

The detailed brand names and other elements are: Company APEX Product logo Brand identity Brand personality Creative, Innovative, Quality, Smart and Contemporary image of independence, dynamism, and brilliance Powershot

Brand names (trademarks)

4.MARKETING PROGRAMS 4.1 Marketing Mix

In order to enable our company to make profits, we have to consider the marketing mix which includes product, price, place, and promotion. Only implemented appropriately can we create synergy among them. 4.1.1 Product

We identify the digital camera production as our main product line. There are several key product attributes that we should take into consideration according to marketing strategy. The specific approach to each attribute is as the following: Attribute: features Differentiated product in features Attribute: deep product assortment Large selection of different products within same product line Attribute: quality Very high quality product Attribute: trust/warranty Strong warranty and return policy The PowerShot SD4500 is digital compact camera with a slim, stylish camera body. It has the following features \ 7 10.0 Megapixel back-illuminated CMOS sensor combinedwith the DIGIC 4 Image Processor create Canons HS SYSTEM for improved low light performance and better image quality. 8 1080p HD movie shooting capability plus HDMI output connector for easy playback of video and photos on your HDTV. 9 Advanced Smart AUTO now identifies 28 shooting scenes, making automatic shooting even more intelligent. 10 School slow motion video with the Super Slow Motion Movie function and playback at 30 fps. 11 High-Speed Burst mode for capturing sports and action shots. 12 Cool new features like Best Image Selection and Handheld Night Scene, give you greater flexibility when shooting your favorite images. In order to ensure consistent product quality, we are working to establish fully automated production lines built around automated machinery and robots. Also, in addition to promoting the in-house production of key components and major parts to enhance product differentiation, we are putting in place regionally optimized global production system that comprehensively considers product quality, transportation, employment practices, and production costs. We hope to launch our new product in the fourth quarter.

4.1.2

Pricing

According to the market research on the customer perceived value, most of the consumers think the price should be positioned in less than Rs 18000. In order to achieve our short-term objectives, we adopt market penetration pricing strategy so that we can occupy target market quickly, and build our companys reputation. Since we have established automatic production system, our production line becomes more efficient. This enable us to produce the camera with high quality in low cost. There will be many factors that may effect our implementation of pricing strategy, such as competitors low price. In view of the above problems, we can hold promotion activities depending on the specified market situation, so that we increase the sales. 4.1.3 Distribution (Place)

Distribution channel is the link connecting manufacturers and consumers, APEX is having distribution offices in Lahore, Karachi and Peshawar. . We select multi-level selling method which means that directly through the agents or retailers or by other means as Internet, delivering superior service to consumers. At the same time, we need our agents or retailers regularly negotiate with our consumers to gather and provide marketing information directly to our Logistic Department, so that we can response to consumers requirements in time. 4.1.4 Advertising (Promotion) 4.1.4.1 Copy

The ad themes selected according to marketing strategy show the appeal of enjoying new technology and convenience these innovation has brought to them. It also can communicate the message that our product are delivering the best service to customers. Our ad styles: Factual o Stating facts/ scientific evidence Comparative o Comparing your product directly with competitors

We appoint Ad Department for effective advertising. 4.1.4.2 Media

We choose media in combination with ad type 1. TV ad. It can directly communicate the main message to customers. Consumers also can perceive our information through visual sense, and be impressed by the demonstration we have designed in our advertisement. It is of advantage to stimulate customers emotion and increase their purchasing confidence as well as their determination. In addition, It can highlight our products differentiated features from other competitors. 2. Professional magazines. They are aiming at attracting professionals attention such as the professional cameramen. Customers like them usually read to the professional camera magazines when they have new demands. 3. Billboards advertising. It can take better advantage of the time that people spend on walking. 4. Internet advertising. It can be cost effective as well as effectively targeted. Youngsters and professionals spend more time on internet.The company will focus on the social network website including face book, which has more than 500 million active users worldwide, and can be easily targeted using it face book page, which is not posting any new post currently. Secondly Twitter, YouTube, and Google are also having huge traffic which can be targeted for increasing the company sales. If we combine the above advertising methods efficiently, they will bring us more profits. 4.2 Loyalty Programs

1. Rebate program: Canon provide our loyal customers a discount or a free product once customers reach a certain amount of purchases, so that it can stimulate customers purchasing desire. 4.3 Customer Service & Support

Customers purchase of any APEX product is automatically covered by APEXs 12month warranty. To make a warranty claim customers will need to provide proof of purchase. Customers can register their APEX product online via myapex, or they can post in a completed warranty card (supplied with their product). 4.4 Market Research

The needed customer information will be: Demographic information (Age, Gender, Nationality, Occupation, Income, Social class), Psychographics information (Lifestyle, Attitudes and beliefs, Personality, Adopter category)

Behavioral information (Benefits, Brand loyalty, User rates, Attitude towards product, User status) The above information can be gained easily from APEXs customer database. The essential information we need to search is the changes of their preference, value, belief and unmeeted demands, as well as the factors that may influence their purchasing behaviors. The above information may determine our marketing strategies directly. The needed information will be obtained by Internet questionnaire and service calling lines. All the searched information will be stored and updated in our customer database in time. 4.5 Trust and Credibility

The trust and credibility of products will be obtained by the real demonstrations by customers themselves. Our regular customers are a source to establish trust and credibility, because they usually use and purchase our products and they are familiar with our products. Customers can be deeply convinced by their words. We also can provide our customers warranty to enhance their trust and confidence to our products, therefore promote their determination to purchase. 4.6 Trade Promotions In order to attract our target market, we have to provide promotion activities to our customers. Our company can collaborate with another company to offer loyal customers a special deal on their product. We can set up a system which provides a discount or a free product once customers reach a certain amount of purchases. These contribute to our sales. 5 IMPLEMENTATION PLAN

5.1

Product Design and Development 5.1.1 Technical Requirements

Face Detection technology can recognize human faces in a picture and adjust such factors as focus and exposure accordingly, With Face Detection, DIGICs high-speed response makes possible the rapid detection of a large number of different faces (up to 35 faces in a frame, of which up to 9 can be tracked). Motion Detection technology detects subject movement and ensures optimal sensitivity, shutter speed, and aperture settings; Motion Detection technology enables DIGIC to

detect whether the subject is moving and its speed, while immediately selecting the optimal sensitivity and shutter speed. Scene Detection technology detects scenes by making comprehensive judgments based on the brightness and contrast of the subject, distance to the subject and overall color. Scene Detection technology enables DIGIC to identify the type of scene (up to 22 scenes) based on information such as the presence of people, distance and brightness, and adjusts the brightness and color to the optima levels for the scene. The combination of these latest technologies significantly improves the versatilility of automatic shooting by enabling automatic shooting with setting optimized for each scene and enabling users to take beautiful photos even in difficult scenes such as backlit scenes and night scenes. Shooting Information People Distance Brightness Color Movement
(Detects faces,smiles) (Detects whether (Detects light the subject is within levels and Color) macro range) backlighting) (Detects (Detects Camera shake and movement of the subject)

Detection of shooting scenes (up to 22 scenes) Determines optimal shutter speed and aperture value for the scene Optimal image processing for each scene Fine pictures can be taken of any scene Overview of Scene Detection Technology 5.1.1.1 Outsourcing Requirements The Human Resource Department will be in charge of establishing provider requirements, requesting proposals, comparing offers, selecting provider and negotiating. 5.1.2 Marketing Requirements

The Administration Department will be in charge of writing up new product description and collateral material. The product description will include products features and differentiated function; the collagteral material include user guide and warranty. The needed information will be sent to them by email. 5.2 Marketing & Sales 5.2.1 Pricing Requirements

When pricing product, we have to consider the following factors: Costs

Wholesale price Suggested retail price Customers perceived value The Marketing Department will be responsible for collecting and updating the information about the wholesale price and the customers perceived value as well as the target customers disposable income. 5.2.2 Positioning, Branding & Corporate Literature

The following creative briefs must be filled: Brand: [APEX] DESIRED BRAND EQUITY Emotional Elements Dynamism Smart Brilliance Contemporary ALL COMMUNICATIONS Should Deliver corporate core concepts Highlight our differentiated features Of our product Be able to motivate customers

Rational Elements Leader Quality Creative, Innovative, Should not Cheat our customer Boring

Brand or product: [DIGITAL CAMERA] KEY OBSERVATION Customers preference Lifestyle Familiarity of our cameras CONSUMER INSIGHT COMMUNICATION OBJECTIVE Quality Increase brand popularity Functions Deliver products differentiated functions PROMISE APEX stands for quality warranty, innovation and fashion AUDIENCE SUPPORT Young customers who are interested in [What drives the brands promise? What Innovation and fashion allows consumers to believe in promise?] Middle-aged customers who have The words of professional people or experts

established their achievement and pursue or regular customers high quality The quality certificate by word of mouth or viral marketing

5.2.3

Advertising

Advertising Department; will be responsible for researching, planning, creating, reviewing, approving and testing advertisements and for placing media buys. The Internet sale website are needed to be outsourced to the professional designing company. 5.2.4 Loyalty Program

We provide our regular customers the following loyalty program: 1. Rebate program: Canon provide our loyal customers a discount or a free product once customers reach a certain amount of purchases, so that it can stimulate customers purchasing desire. The Administration Department will be in charge of defining and securing elements of loyalty program as identified in marketing strategy such as reward system and gift certificates, implantation of customer sales-history tracking etc. 5.2.5 Trust and Credibility

The trust and credibility of products will be obtained by the real demonstrations by customers themselves. The expert recommendation also can increase the trust and credibility of products, since customers believe the expert are more familiar with camera than themselves. Consumers are easily convinced by the certificates, which are certificated by authorities. 5.2.6 Sales force

We organize 4 teams based on the segmentation approach. Assign sales team A to geographic region. Assign sales team B to specific product lines. Assign sales team C to specific clients or to client types. Assign sales team D to specific functions. Each of teams requires 15 sales people to do marketing research in order to obtain the needed information. They are in charge of collecting sales material about demographic information (Age, Gender, Nationality, Occupation, Income, Social class),

psychographics information (Lifestyle, Attitudes and beliefs, Personality, Adopter category), and behavioral information (Benefits, Brand loyalty, User rates, Attitude towards product, User status). The Marketing research assistant will be responsible for sorting our the data and developing sales presentation. The Human Resource director will be in charge of hiring, motivating and scheduling the training center.

5.2.7

Customer Service

Apex emphasize the always moved concept to improve customer satisfaction. In order to implement this idea, we set up a customer service team with 10 part-time employees. They are responsible for taking turns to satisfy customers needs. We devote ourselves to build a comprehensive, professional, convenient and diversified service during the presale, sale , after sale. 5.2.8 Market Research

The primary market research information, which include their income, lifestyle, buying motives, usage rate, customer satisfaction, familiarity with brand, should be gathered from personal selling, surveys, and customer correspondence (telephone, email) The customers demographic information and buying behaviors should be collected from our customer database to support present and future marketing strategies. 5.3 Distributors

We select multi level selling method which means that directly through the agents or retailers and INTERNET, delivering superior service to customers. The agents or retailers who regularly negotiate with our consumers to gather and provide marketing information will be the right people. Logistic Department will be in charge of establishing supplier requirements, requesting proposals, comparing offers, selecting provider and negotiating. 5.3.1 Marketing Material

The Administration Department will be in charge of planning, reviewing and approving sales literature to be supplied to distributors. 6 PERFORMANCE EVALUATION AND MONITORING 6.1 Monitoring Ad Campaigns

6.1.1

Performance Metrics

The following metrics will be used to measure the success of ad campaigns.

Number of website visitors, length of stay, depth of navigation, number of clicks Number of calls received. Number of complaints Change in customer behavior/buying patterns Customer satisfaction level Customer impression of brand/product (assessed through surveys and feedback) Brand awareness/recognition levels (assessed through surveys and feedback) Customer loyalty levels 6.1.2 Advertising Costs

The table 6 below show that the overall advertising costs in relation to sales and profits occupies separately by 12 %. We spend a lot on print advertising and TV advertising and outdoor advertising as the follower as well as the online advertising. We can attract clients this way only. 6.2.3 Benchmarking The most relevant benchmarks against which sales of new product must be compared. Industry sales Research data/publications Sales goals/quotas Past sales period figures Forecasts (done by industry analysis) 6.3 Profit and Loss Statements

Establish the profits per product OR per territory OR per market segment OR per department: May be done on a quarterly or yearly basis.

Profit and Loss Statements for 1st Year ended, [2009] Total Product A (OR Territory 1 OR Market X OR Department) 6,700,000 Product B Product C Product D

Net Sales 13,700,000 Less

3,100,000

1,500,000

2,400,000

Cost of Goods sold 6,810,000 Equals Gross margin 6.890,000 Less Operating Exp Advertising 1,370,000 Personal selling 878,000 Warehousing 537,000 Administration 250,000 Total expenses 3,390,000 equals Net profit 3,500,000 Divided by Sales x 100 Equals Net profit as % Of sales 6.4 51%

3,700,000 3,000,000 700,000 530,000 200,000 100,000 1,640,000 1,360,000

1,600,000 1,500,000 280,000 150,000 130,000 90,000 750,000 750,000

550,000 950,000 100,000 28,000 27,000 20,000 190,000 (760,000)

960,000 1,440,000 290,000 170,000 180,000 40,000 810,000 (630,000)

45%

50%

Customer Profiling

We need to find out as much as possible about customers to build a customer profiling (but always inform them or ask for their permission when gathering/sharing personal information and always securely store and transmit such data) The information to be gathered: 1. Demographic segmentation (Age, Gender, Social class, Occupation Ethnicity, Income, and Nationality) 2. Psychographic segmentation (Lifestyle, Attitudes and beliefs, Adopter category, and Personality) 3. Behavioral segmentation (Benefits, User status, User rates, Attitude towards product, and Brand loyalty) The essential information we need to search is the changes of their preference, value, belief and un meted demand as well as the factors that may influence their purchasing behaviors. The above information may determine our marketing strategies directly. The needed information will be obtained by Internet questionnaire and service calling lines. All the searched information will be stored and updated in our customer database in time. We will regularly send customer web questionnaires in order to get feedback from them. And we also will give our customers regular calls to ask for feedback so that we can get the essential data with reality. It can make contribution to meeting customer satisfaction.

3. Balance Sheet Assets 2005 2006


10.49B 6.86B 4.85B 2.84B 25.04B

2007
8.68B 7.15B 5.07B 2.57B 23.48B

2008
7.55B 6.54B 5.57B 3.03B 22.69B

2009
8.85B 6.05 4.06B 2.98B 21.93B

Cash & short tem 8.52B investments Receivables 5.84B Inventory 4.32B Prepaid Expenses Other current 2.15B assets Total Current 20.84B Assets Gross Property, Plant & Equipment Accumulated Depriciation Net Property, 9.74B Plant & Equipment Long term 885.47M Investments Goodwill & 0.00 Intangibles Other long term 2.81B assets Total Long term 20.84B Assets Total Assets 34.27B Liabilities 2005 Current Portion of Long term Debt Accounts Payable 4.28B Accrued Expenses 2.10B Deferred Revenues Other Current 1.77B Liabilities Total Current 9.14B Liabilities Total Long term 229.50M debt Deferred Income Tax Minority Interest 1.70B Other Long term 1.13B liabilities Total Long Term 3.05B Liabilities Total Liabilities 12.19B Deferred Income Tax Minority Interest 1.70B Other Long term 1.13B liabilities Total Long Term 3.05B Liabilities

11.40B 993.76M 0.00 3.26B 25.04B 4o.70B 2006 4.44B 2.73B 1.96B 10.47B 142.10M 1.95B 1.25B 3.35B 13.82B 1.95B 1.25B 3.35B

12.28B 10.77M 0.00 4.04B 23.48B 40.61B 2007 4.63B 3.22B 1.94B 11.31B 78.12M 2.01B 918.30B 3.00B 14.31B 2.01B 918.30B 3.00B

14.91B 76.09M 1.31B 3.74B 22.69B 43.63B 2008 4.47B 3.05B 2.03B 10.37B 92.56M 2.10B 1.83B 4.02B 14.40B 2.10B 1.83B 4.02B

13.80B 1.24B 1.28B 3.57B 21.93B 41.82B 2009 3.69B 2.98B 1.25B 8.52B 53.39M 0.00 1.95B 2.01B 10.52B 0.00 1.95B 2.01B

Total Liabilities

12.19B

13.82B

14.31B

14.40B

10.52B