Marketing Management (Final Project

)

Product: Mobile Sensor

Launching of Innovative Product

By: Zaira Hassan Omair Shahid Nagi Ahmad Farooq Butt Arooj Naseem

073605-004 073605-016 073605-034 073605-037

Serial Serial Serial Serial

# # # #

(06) (12) (18) (21)

To: Mr. Aly Raza Syed
Date: May 23, 2009

University of Management & Technology

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Executive Summary
We are the new company in the market of mobiles tracker with the name of WAG Pakistan. The location of the company head office is in Building XYZ, Floor # X, ABC Road Lahore, Pakistan (www.absolutemobiletracker.com). The product we are going to launch is an innovation in Pakistan. The name of our product is WAG and its logo is

Our product is an automatic mobile tracker which connects with the cell phone through Bluetooth. Whenever this connection breaks the tracking device starts beeping. The range of the connection is 5 to 8 meters. Our tracking device is also equipped with GPS, the Global Positioning System, through which the users can do navigation while traveling and track their mobile after theft even the mobile is switched off. The mission statement of our company is as follows:

“Our vision is to be the best Cell Phone Tracker Company of the world. We will make this by providing our respected customers the full tracking solution of superior quality at fair prices as to earn adequate profit for the growth of the company”
We are going to target the people of age ranging from 14 to onwards, both males and females but the condition is that they should have the cell phone having Bluetooth facility. The consumers can get the product from the company maintained outlets firstly in metropolitan cities of Pakistan. Then we will arrive at other cities. The price of the tracking device is $19.99

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Regarding promotion, we will use both ATL and BTL. This report contains the proper budget allocation for different forms of advertising. Our Slogan is “Absolute Mobile Tracker”. We are going to use the By-Pass strategy to enter into the market, because the product we are going to launch is very technological and people would have much confusion regarding our product in their minds so, it would be difficult to spread awareness of our product. We start from small achievements to bigger and bigger. The report contains the 7P’s analysis and SWOT Matrix analysis. The full financial analysis is also included in this report.

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Acknowledgements
Firstly we would thank Allah for giving us the opportunity and the resources to be able to do something productive with our lives. Without His blessings we would not have been able to come as far as we have. Then our sincere thanks to Mr. Muhammad Saleh, most respectful teacher, for helping us throughout this project. His guidelines have been very useful for us in preparing this report. I feel great pleasure in expressing my gratitude to him for providing all possible help and encouragement in carrying out this Project. We would like to thanks our Professor Mr. Aly Raza Syed, who gave this Project to us to. He helped us a lot in the making of this Project. We would like to thanks our friends who gave us information and their opinions to make this Project. Last but not the least we would like to thank our families for their incessant support and approval.

Omair Shahid Nagi Ahmad Farooq Butt Arooj Naseem Zaira Hassan

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Table of Contents
Our Innovation.......................................................................................................... 10 Explanation of Innovation:.....................................................................................10 How is it creating a Differentiating? .....................................................................11 Need Gap Analysis.................................................................................................12 How our Product fulfill these need?.......................................................................15 Why it’s going to sell? ..........................................................................................16 Current Market Situation.......................................................................................18 DEEP-LIST Analysis ..................................................................................................20 Why focus on mobile?...........................................................................................20 Demographics:......................................................................................................20 Technology: .......................................................................................................... 21 Corporate Intent....................................................................................................... 21 Mission Statement ................................................................................................21 Corporate Goals and Objectives............................................................................21 Sales Goals and Objective.....................................................................................22 Major Market Trend...............................................................................................22 Key success factors...............................................................................................22 Competitive Analysis:...............................................................................................24 Market Segmentation ..............................................................................................24 Demographic......................................................................................................... 24 Geographic............................................................................................................25 Psychographic......................................................................................................25 Behavioral.............................................................................................................26 Target Market Analysis .........................................................................................26 Age Structure of Pakistan: ....................................................................................26 The Product Analysis................................................................................................ 29 Brand Name..........................................................................................................29 Logo...................................................................................................................... 30 FAB Analysis .........................................................................................................30 Quality Statement................................................................................................. 31 Placement strategy ..................................................................................................35

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Channels of Distribution........................................................................................36 Promotion Strategy...................................................................................................36 Product Positioning Strategy.................................................................................36 Key features and benefit:......................................................................................36 Packet content:..................................................................................................... 37 ATL/BTL.................................................................................................................37 Advertising objectives...........................................................................................38 Frequency and Media Vehicle Selection:...............................................................39 Proper Budget Allocations Advertising:.................................................................40 USP........................................................................................................................40 Slogan................................................................................................................... 41 Direct selling strategy:..........................................................................................42 Push vs. pull strategy:...........................................................................................42 Promotional materials:..........................................................................................43 Leaflets:................................................................................................................. 43 Banners.................................................................................................................44 Hoardings ............................................................................................................. 45 Market Entry Strategy:.............................................................................................47 Bypass attack........................................................................................................ 47 Launch plan:.......................................................................................................... 48 Soft launch strategy:.............................................................................................48 Official launch:.......................................................................................................48 Event Marketing At Launch Stage;........................................................................49 Publicity and Public Relations Activities:...............................................................49 Gantt chart:........................................................................................................... 50 Pricing ...................................................................................................................... 50 Penetration pricing................................................................................................51 Computation of Price.............................................................................................51 People ......................................................................................................................52 Processes:................................................................................................................. 53 Physical evidence:....................................................................................................54 Land and building:.................................................................................................54 Outlets/shops:....................................................................................................... 54

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Location and site details:.......................................................................................55 Quantitative SWOT Matrix Analysis:.........................................................................55 Strengths .............................................................................................................. 55 Weaknesses ..........................................................................................................56 Opportunities.........................................................................................................56 Threats.................................................................................................................. 56 Financial Analysis .................................................................................................... 57 Start up Cost – One Time Expense........................................................................57 Cash Flow..............................................................................................................59

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Our Innovation
Explanation of Innovation:
T

he product we are going to launch is a new Bluetooth Testing Device, the WAG Compatible with Cell Phones having the facility of Bluetooth connectivity. This Tracking Device benefits the user in two ways:

Our product is a tracking device connected with the mobiles having Bluetooth and our small software. The mobile users just have to install our software & after this we will provide him with a tracking device which is moveable and small in size and weight that you can put it in your pocket, attach with your collar, belt, tie means you can acquire it anywhere – connected to the cell phone through Bluetooth which helps the user of the cell phone in a way that whenever the connection of the tracking device and cell phones breaks, the tracking device starts beeping and vice versa. The range of the connection of tracking device and cell phone is about 8 to 10m. Our product shows you the direction of your mobile phone through an arrow. Whenever the tracking device starts beeping, an arrow shows you the direction of your mobile phone. As you come in the range of Bluetooth the device a stop beeping but the arrow shows you the direction until you pick your mobile and press any button.

Our product is equipped with Global Positioning System (GPS) network so the users can accurately locate where they are and easily navigate to where they want to go, whether walking, driving, or traveling. The other benefit of GPS is that if your cell phone has been theft, you have the facility to track it, for this you have to follow the following steps:

Make a phone call to our Mobile Tracking Department (MTD)

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o

Tell the representative the PIN code (would be provided when you purchase the cell phone) You will get the location of your cell phone in few minutes.

o

How is it creating a Differentiating?
O

ur product is an innovation in Pakistan – it already doesn’t exist in Pakistan and that is the major differentiating point. No such kinds of tracking device along with GPS System have been launched in Pakistan. Before the mobile tracking was a difficult job even it was impossible for most of the users to track his or her cell phones. We are going to fashion a new trend by “Giving the Customer the Facility to Track His Mobile on It Own” Our innovation is making an ease for mobile tracking even it has theft. Now our customers don’t have to worry if they have lost their cell phones. Why? Because our cell phones are equipped with the GPS technology through which our customers can track their mobile in just few minutes by simply making a call on our help line. This technology is not only for Pakistan, you can enjoy this facility in every corner of the world by subscribing as both international and domestic customer. Our customers can enjoy all the features that other mobiles have along with the above mentioned facilities. All of these facilities are when combined together differentiate not only us but our respected customers as well in the market and make us ahead of our competitors.

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Need Gap Analysis

Years 2000

Total number of mobile user 306,493

Population

Percentage

146,404, 914 0.21 150,399, 566 0.49 2001 742,606 153,470, 779 1.11 2002 1,698,536 156,196, 488 1.54 2003 2,404,400 159,266, 367 3.15 2004 5,022,908 162,490, 385 7.86 2005 12,771,203 Table 1: Showing the Percentage of Mobile Users from 2000 to March 2009 165,873, 928 20.80 2006 34,506,557 169,340, 538 37.30 2007 63,159,857 172,800, 051 50.94 2008 88,019,812 176,242, 949 51.88 Mar-09 91,442,341

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Figure 1: Graph of Percentage of Pakistan Population Using Cell Phones from 2000 to March 2009

According to above information as the population of Pakistan is increasing, the number of people using cell phones is also increasing and the graph is going up continuously. As we draw a trend line we find that in coming years the number of cell phones users in Pakistan will increase more (Fig. 2).

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Figure 2: Trend line for Cell Phones user in Pakistan

Now, what are the problems the cell phones users are facing? The problems are as follows: Most of the mobile phone users often forget where they have put their mobile in their homes and offices, so what happens then? They have to leave their work and spend time on finding their cell phones. Sometimes the cell phone users have to make an important phone call but they forget that where they have put their mobiles phones, so they have to face a problem. Sometime the people are in urgency fail to remember to pick up the cell phone when leaving for office or for home. Again a problem! The ratio of the mobile theft catastrophe is increasing day by day. The people not only lose their money but also face nervous tension. So … again a problem!! What are the needs of a cell phone user that have not been fulfilled still now? The needs are as follows:

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They want a device which reminds them that they haven’t pick up their cell phone.

They want to track their cell phones when theft

How our Product fulfill these need?

As mentioned above our Tracking Device has two new features that can fulfill these needs: the two new features are:

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The tracking device connected with cell phones through Bluetooth which starts beeping when the connection of the Bluetooth breaks. The range of the Bluetooth connection is about 8 to 10m. Whenever the cell phone user, who has the tracking device, comes out of this radius, the tracking device starts beeping. “This helps the customer a lot because it makes the user to remember to pick up his or her cell phone” Now here the question arises that if the user has the cell phone in his pocket and he forget to pick up the tracking device, then? The user don’t have to worry because if he picks up the phone but don’t pick up the tracking device – again the same case – the mobile phone starts beeping after you are out of the range of Bluetooth. Now one of the need of the cell phones users have been fulfilled.

The second need of the cell phone users is to track their phones after they have theft. To fulfill this need our product is equipped with GPS system and our company has the GPS network. Now our customer can track their mobiles even after theft. Our customers just have to make a phone call to our MT department, tell the representative the PIN code of their mobile phone and then they will get the location of the cell phones in just few minutes

So our product fulfills both needs.

Why it’s going to sell?
We are going to modernize the cell phones trend by introducing two fabulous features in our product (Tracking Device & GPS System). No doubt the cell phones are fulfilling the need of communication but what if your mobile phone is missing?

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We are in the market with the solution; we are one step ahead then others, our product provide full control on tracking your mobiles anywhere like in homes, in offices, in shopping malls etc. Moreover, our product has the GPS system through which you can track your mobile even after theft. That’s why it is going to sell. People will spend little more once rather then spending money again and again. People will bear a small loss rather then a big one. While making a decision for purchasing a mobile phone people mostly look the voice quality, features like memory space, software installation, music player, camera and other, but when they know that they can have all the above features plus our unique features (Tracking device & GPS) in little more cost they would love to buy it. We have asked people in Hafeez centre and hall road to get the feed back of the mobile users and inquire about such kind of product and their willingness to purchase and get that 64% people are willing to get this device.

Number Observed Total Asked Say Yes Say

of

Days

We 4

number

of

people 100 0 639 360

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People Willing to Buy out of 1000
80% Percentage 60% 40% 20% 0% Yes Series1 64% Ye s or No no 36% 36% 64%

Current Market Situation
The current market situation is shown in the following figure:

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Table 2: Full Data of Mobile Usage & Spending on Mobile Phones from 2001 to 2008

According to the above figure The market size is:

The total number of cell phone users in Pakistan from 2001 to 2008 is about 90,340,050 people

• •

About 50,366,577 people enter into the cell phone market in 2008 The entire mobile phone users have mobiles with Bluetooth.

The market potential is: •

The total cell phones bought from 2001 to 2008 is about 161,800,408 The total cell phone bought in 2008 is 5,794,385

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The total spending on cell phones from 2001 to 2008 in Pakistan is $16,180,040,795

DEEP-LIST Analysis
Why focus on mobile?
Mobile phones are no longer just for talking. Many of the new devices being released by manufacturers today include the ability to surf the web, send emails and SMS text messages, store mp3’s, take pictures, watch video and many other great features. Did you know that?

There are twice as many mobiles phones as PCs in the world (over 2.2 billion). Mobile phones are selling four times faster than PCs. 70% of mobile phones worldwide are already configured for Internet access. The number of wireless subscribers using the mobile Internet is expected to triple from 577 million today to over 1.3 billion by 2013. Mobile phone users will create and consume 25 percent of the world’s entertainment.

• •

Demographics:
Nearly the 60% whole nation is mobile phone users. This includes all age groups from teens to middle aged people. However use of high tech mobile phones is more observed in men as compare to women. The favor of variant features in mobiles are rated both my men and women but men practice more to buy them. The demographic trait for our product is all the customers and potential customers of mobile phones. Our product is suitable for the middle, upper middle and higher income holders. The device is costly but beneficial for the more precious cell phones

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that are often misplaced, or unbarred from eye. These income levels can be the potential customers for our product. The WAG do not require high technicalities in its usage. It is self sufficiently programmed to operate on its own. This is an advantage for the users to do not interrupt into lengthy procedures. Due to the simplicity, it can be used by any person without technical caliber.

Technology:
In the 21st century, the telecom sector has advanced from simpler to complex structure at one end and friendly user at the customer step. The understanding to these inventions has made it simpler by now to use such item of use. As mentioned earlier WAG is highly sensitive to the minor changes in distances and detects out of defined radius it is very user friendly at the same time. The technological approach has simplified it for its users.

Corporate Intent
Mission Statement

“Our vision is to be the best Cell Phone Tracker Company of the world. We will make this by providing our respected customers the full tracking solution of superior quality at fair prices as to earn adequate profit for the growth of the company”

Corporate Goals and Objectives

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“To achieve the image of the most favored Cell Phone Tracker Company in the minds of our customers by delivering the value through superior quality, Price and reliability”

Sales Goals and Objective
• • •

Achieve Break even sale of 870 units Achieve an internal rate of return of about 20% Achieve an average growth in sales of about 25% per year

Major Market Trend
Market is not ever stable; there are different trends in different times. The market trends related to our product are:

The population of Pakistan is increasing and with this the number of people using cell phones is also increasing. Keeping the cell phone is now a fashion and the mobile market contains people of age 13 to onwards. The cell phones in Pakistan are mostly of high costs which have features like mp3 player, camera, Bluetooth and other facilities. Mobiles phones are the major mean of communication It’s the age of technology and the technology of the cell phones is enhancing continuously. People now want more and more facilities and features in their mobiles.

• •

As people spend high amount on mobiles phones they want its security – that is the need of the customers.

Key success factors

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Wag is an oriental product. It is a need that has not been focused so far in the local market. The cellular companies have so far focused in one body (handset) features and capacities. Our product is capable of accommodating with cell phones thus securing them. It is a plus point for WAG that it can perform its function with featured mobiles. It does not require changing technical design for any specific cell phone. Rather it has features that will be appreciated by the customers. Another key factor is its modesty yet simplicity that will be adored by its users. Wag design is considered on the basis of age groups. From a young intellectual to an average, aged person will find it very simple. The design focuses mainly to the need of its customers. The product is shaped up into easy handling. Its size, weight and material all are well considered in designing. The weight and size has made it lighter and material used is free of environment hazards. Its weight is 8grams, with a dimension of 1.2 and 2.0 inches (3.04 into 5.08 cm) and a radius of alarming approximately 8-9 meters. It is a trim body with a specified use and functions.

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Competitive Analysis:
The WAG tracking device is an innovation in Pakistan, but a tracking system exists in the market but it is only for LG mobiles. These is built-in in which a message is send to the chosen number whenever the Sim of the LG mobile changes. This is our substitute competitor and there is no indirect competitor of ours in the market.

Market Segmentation
The purposes of segmenting a market to allow the marketing program to focus on subset of prospect those are most likely to purchase the offer. This offer meet the functional requirement of the customer that if you lost your mobile than the device WAG beep as a reminder within the radius of 5 to 8 meters. Variable used for segmentation

Demographic

Demography focuses on population structure, processes and dynamics, whereas demographics are most often used in the fields of marketing. Provides enough information about the typical member of this group to create a mental picture of this hypothetical aggregate. For example, a marketer might speak of the single, female, middle-class, age 18 to 24, college educated demographic.

Age: friendly usage wag from adolescence 13-19 to late adulthood 65+ (e.g. person who had low memory).

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• •

Gender: male and female Income: from middle to upper class. It is cheaper and easily purchasable for the entire mobile user having mobile with Bluetooth connection.

Occupation: students, professional, traveler, technicals to unemployed people. Basically it is easily usable for all type of workers in this growing age.

Geographic
It divides market into different geographical units such as nation, state, region but WAG firstly operate in main cities and pay attention to other cities

Region: firstly wag is introduced in metropolitan cities of Pakistan i.e. Karachi & Lahore and then to Islamabad Multan, Sialkot, Sargodha and small cities etc…

• •

Country: Pakistan Density: urban, suburban

Psychographic

In the field of marketing, psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles.

Psychographic lifestyle: outdoor-oriented, trend and fun living people, young seeker and impulsive people. Experiencer’s.

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Behavioral

Occasion: regular occasion and special occasion. User status: regular user, first time user and potential user. Usage rate: light user, medium user and heavy user Readiness stage: unaware, interested, desirous and intending to buy. Attitude towards product: may be negative, hostile, indifferent, positive and enthusiastic.

• • • •

Variable Demographic Geographic Behavioral Psychographi c

Description Age, Income, Gender, Occupation Pakistan, Firstly Metropolitan Cities, Urban & Suburban Occasion, usage Rate, User Status, Readiness Stage, Attitude towards product Lifestyle

Target Market Analysis

Age Structure of Pakistan:
The age structure of Pakistan is as follows:
• • •

0-14 years: 37.8% 15-64 years: 58%
65 years and over: 4.2%

Figure 3: The Age Structure of Pakistan

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As the highest percentage is of age group ranging from 15 to 64 years and the second highest percentage goes to the age group of 0 to 14 years so we will target some part of category 3 (0 – 14) and full part of above two categories.

Gender structure of Pakistan
Males 0 - 14 43,617,953 15 - 64 64 and above Total 51,892,539 4,908,749 100,419,24 1 Females 36,741,25 8 48,951,02 3 3,818,533 89,510,81 4

Table 3: The Number of Males & Females in Pakistan

We will target both males and females

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Figure 4: Showing the Males & Females of Pakistan

In general we will focus the people having the cell phone equipped with Bluetooth because our product can use only with the mobile have Bluetooth.

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The 7 P’s Analysis

The Product Analysis
Brand Name

The Brand of our product – Tracking Device – is WAG

Wag is the word of English which means “wave to and fro”. The reasons to choose this word are: • •

It is easy to pronounce It is easy to remember It is easy to speak It’s a unique word Fits with brand portfolio Linguistically clean

• •

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Logo
The logo of our brand is as follows:

Why
• • • • •

we

choose

this

has

following reason.

Uniqueness Relevancy Appealing Simple Space efficient

FAB Analysis

Features

Attributes

Benefits

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Innovation Automatic process Bluetooth connection Point out the direction Portable GPS System GPS System Vise versa system Mobile lock system No operational cost Choose the beeping style and volume Low weight Small size

Track mobiles You don’t have to do anything Compatible with your mobile only Arrow blink in the direction of your mobile Attach with your belt or pocket Navigation Anti-theft technology Mobile and tracking device are interconnected After 3 minutes of beeping, mobile locks automatically Use as many time as you want Differentiate with other subscriber Easy to carry Can be put in pocket

Fulfills the tracking needs Easy to use No interruption to others near by Save time of searching Acquire it anywhere Easy travelling Track your mobile anywhere in the Pakistan after theft If mobile comes out of range of Bluetooth mobile starts beeping No one can use your mobile Non-expensive Your convenience Take it anywhere Acquire it anywhere

Table 4: The FAB Analysis of WAG

These are the some features that our product has to fulfill all of your tracking needs. It is easy to use, easy to carry; you can acquire it anywhere, with no operational cost. Your device is compatible with your mobile only so no one can track your mobile without your device. It is also equipped with GPS system with helps you in finding ways while traveling anywhere across Pakistan. It also helps you in tracking your mobile after theft even it is switched off.

Quality Statement

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Promises

you

Innovative,

quality

products

and

service

excellence from a company you can Trust. Our Quality Policy is to develop, produce, and deliver on time, products and services that meet or exceed customer expectations. In order to do this, we have implemented quality systems and processes that are continually being improved to satisfy our customers’ changing needs. Background WAG Pakistan provides an innovative product to the mobile users. Our plant in Pakistan manufactures the tracking device for the domestic market and we provide our customers with the product that meet the needs of our customers. Because of our complex business, we have developed this Quality Statement that we believe will satisfy customer inquiries regarding our quality system and test certification. WAG Pakistan understands the need for continuous improvement. We are pleased to provide this information about how our Quality Systems operate, and how we insure our products meet our customers’ needs. Quality System WAG Pakistan manufacturing and service operations are registered to the internationally recognized ISO 9001 quality standard, assurance that these plants maintain consistently high standards. Product WAG Pakistan is committed to providing our customers with superior quality and have implemented exact quality systems to promise this. We place a strong emphasis on quality design, utilizing problem and waste prevention to build quality into our products and processes. Quality Function Deployment, highly recognized for its systematic approach to product design and development, is a key tool used at WAG to help us determine customer

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needs and the internal testing protocol needed to assure product quality. By including customers in this process, we are able to prioritize their requirements and prevent deviations in our performance. All our products are manufactured to WAG specifications and undergo testing to assure conformance. Additional test verifications are included to assure compliance with unique industry and customer specifications when requested. Environmental we recognize the necessity for responsible environmental management and conservation of resources. Pollution prevention, recycling, and reduction of all types of waste and emissions are integral parts of WAG Pakistan environmental program. WAG Pakistan’s main manufacturing plants are registered to the internationally recognized ISO 14001 environmental standard. Continuous Improvement and Customer Satisfaction Continuous improvement at WAG Pakistan has become a way of life. One of the key strategies of our manufacturing location is to constantly improve our processes. Our manufacturing sites use a quality tool kit that includes Statistical Process Control, Design of Experiments, and Process Capability (Cp,Cpk) to help us meet our objective. WAG also uses many customer satisfaction measurements to determine our performance in the marketplace with distributors, major customers, and the ultimate end users of our products.

Supply Chain Excellence WAG Pakistan focuses on providing Supply Chain Excellence for all the customers and markets we serve. We track our performance across the entire supply chain against a thorough set of metrics. The way we purchase

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raw materials has a major impact on our ability to give our customers consistent, quality products, on time and at competitive prices. Our Supplier improvement process measures ongoing performance and emphasizes ISO 9000 registration. Our goal is to achieve operational excellence in all aspects of procurement, manufacturing and supply, and customer order fulfillment. We will do this through the use of new technologies, innovation, a dedicated and talented workforce, and a commitment to the principles of continuous improvement.

Product Range and Mix
WAG Pakistan produce only one product and that is the mobile Tracking Device. This product is an innovative in Pakistan. WAG allows you to track your mobile in your home and even after theft. In this technology a tracking device is connected with the mobile phone through Bluetooth and the tracking device starts beeping whenever the connection breaks. It breaks due to one reason only and that is the range of the Bluetooth connection is 5 to 8m. Whenever the device comes out of this range the connection breaks and the device starts beeping. Same is the case when you forget to pick up your tracking device, when the mobile comes out of the above mentioned range the mobile starts beeping. The arrow in the direction of the cell phone makes it easy to find the phone. The mobile would automatically switch off when there is no response of beeping in 3 minutes and this would be unlocked if and only if you press a button on your tracking device. The device stops beeping when you come in the range of Bluetooth but the arrow will continuously blink in the direction of your mobile until you press any button of your cell phone.

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Moreover, our product is equipped with the GPS System through which the user can benefit in traveling because of Navigation across the Pakistan. Besides this, the user can find or track their mobile after theft by simply calling us and telling the PIN code of their mobile.

Placement strategy
Refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. WAG Pakistan will not engage in any wholesaling and retailing distribution strategy. Company has its own multiple outlets (3 – 4) in the major areas of major cities of Pakistan. The people can acquire our product by ordering online because we are using brick and click or online strategy. WAG Company sells its device directly to consumers with the express purpose of eliminating retailers that supposedly add cost. This product is also selling through internet. Customers can be quite effectively targeted in many situations because of the context that they, themselves, have sought out. For example, when a consumer searches for a specific term in a search engine, a “banner” or link to a firm selling products in that area can be displayed. Print and television advertisements can also feature the firm’s Zero Level Strategy Customers Manufacturers

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web address, thus inexpensively drawing in those who would like additional information. Data can be collected relatively inexpensively on the Net. Hence the WAG will engage in zero level of distribution strategy.

Channels of Distribution
As we mentioned above we have only 3 to 4 outlets in one city so we’ll use selective distribution of our product. The product will directly transferred to the end customers without any intermediaries involved through the company outlets and the company’s website (Charged Home Delivery, Terms & Condition Apply)

Promotion Strategy
Product Positioning Strategy
In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

The tracking device WAG is for all type of mobile user who lost their mobiles in their homes and offices. Not only this, the device tracks the mobile after theft anywhere in the Pakistan. Within the area of 8-9 meters. This device helps you to find you’re mobile and is an ideal device to search your mobile. It gives an audio cue through a small device and also point out the right direction of your mobile. If you are in the right direction than the beep sound signal become low.

Key features and benefit:

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• •

Find missing mobile quickly and easily Locate mode find mobile up to 5-8 meters. And audio directional technology guides you.

Easy to use setup in seconds through Bluetooth. Once the software is transferred through Bluetooth than no need to switch on the Bluetooth.

Automatic locked the mobile if within the three minuets mobile not detected.

It is only for one mobile and issued by proper documentation. And it has a one year license.

Handset size is 1.22 inches by 1 inch. (w) 1 by (h) 1.22 and weight is 8 gram.

Free of environmental hazards.

Packet content:

1 little handheld wag gadget Two languages user guide i.e. English and Urdu.

ATL/BTL

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WAG Pakistan will engage in a different strategy because it will first use the following strategy: • • • • • Shop display stands (POS Promotion) Brouchers and Leaflets Posters Sale Girls Price Discounts

Then we will engage in the following strategies • • • • TV Internet Radio Newspaper

Advertising objectives
Wag has specified its advertising objectives. The advertisement will be used as a tool to incorporate the device name to all its potential customers. These objectives are set prior to the knowledge of it valuable customers who shall seek benefits in the product. The advertising is outlined with strategy of penetrating into the market. Every ad and every advertising campaign should have clearly defined objectives. The advertisement motto is to promote our product in all geography.

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The advertising objectives include:

1. To position company and brand name 2. To get immediate buying actions 3. To introduce new products to customers by the company name 4. To provide ongoing contact with target customers 5. To maintain relationship with satisfied customers

Frequency and Media Vehicle Selection:
The advertisements are designed to reach maximum of its potential customers. The advertising parameters both print and electronic are used to attract the target market. The frequency is set for the timely hours when the electronic media is the best availing. Similarly, print media is taken into interest for the high rating. The frequency is chosen between rushed hours for viewers whereas weekend magazines and weekly news papers for readers.

At the beginning we shall be targeting the popular TV stations as well as radio channels like Geo, ARY and FM 101 and 106.2 respectively Through our advertisement strategy we shall be able to set a frequency of exposure through print and electronic media. The frequency is based on the high traffic time of the channels such as news bullet in, sit comps and sports matches etc. the purpose is to expose the customers at least twice on electronic media while regularly through prints.

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Proper Budget Allocations Advertising:

The advertising budget has been set initially of 80 lacs. This budget is further estimated for print and electronic media. 40% is allocated to TV stations, while 15% to radio channels. 25% is allocated to print media that includes advertisement in daily news papers, magazines and 20% is budgeted for out door campaigns such as hoardings, holistic marketing. Total budget = Rs 1,500,000/Media Percentage of budget Posters 40% POS 5% Broachers & Leaflets 25% Sales Girls 10%

SG 28%

pos 14% POS 10%

B&F 48%

USP

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WAG Absolute Mobile Tracker, by thinking about it increase the curiosity level in the mind of people that what is WAG is a small device for those people who have the shortage of time and in hurry they lost their mobile. It is the solution for them not to worry about their mobiles because WAG helps you to find their lost mobile in three minutes and after three minuets mobile will be atomically locked with a sound of beep when you are in exact directional location within the area of 8-9 meters. WAG is a registered product and issued through license by proper documentation by company and company has a password for its record of the product. It has a one year life span and a one year license, after one year license is re-issued, if you purchase the product in the beginning than the first re-issuance of license is free. The USP’s of WAG tracking device are as follows: Innovation Automatic process, you don’t have to do nothing Bluetooth connection Point out the direction of mobile with an arrow Portable, acquire it anywhere GPS System, do navigation and track after theft Vise versa system, device track mobile and mobile tracks device Mobile lock system, after 3 minutes of beeping if there is no response the mobile locks No operational cost Choose the beeping style and volume Low weight Small size

Slogan
The Slogan of WAG Pakistan is “The Smart Log” means the smart monitor of your mobile

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Direct selling strategy:
The gadget WAG would be directly sold to the consumer away from the company owned outlets because it is the registered trademark and issued through license so nobody else is the owner of the product only it is sell directly through the company outlet. It has the few reasons:

• • • • •

Direct selling is a good way to meet and socialize with people. Direct selling offers flexible work schedules. Direct selling is a good way to earn extra income. Direct selling is a good way to own a business. Earnings are in proportion to efforts.

In the beginning it provides the opportunity to earn the income and business of their own, and the cost is low, Consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products.

Push vs. pull strategy:
By analyzing the demand of the consumer WAG is introduced in the market, because it is more time wastage to find a lost mobile. Consumers "pulls” information they demand for their needs, while the officers or suppliers "pushes" them toward the consumers. In the beginning it requires high spending on advertisement. Product is advertised through advertisement to

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give more information to consumer and in the beginning it is more time consuming to push the customer to increase the demand of WAG. It is the product which is innovative to the consumer and is push to the customer by advertisement.

Promotional materials:
Point of sale WAG is using POS system for cash transaction. It can be made through credit cards but not cheques. The POS system can include the ability to record and track customer orders, process credit, connect to other systems in a network, and manage inventory. And the transactions are also made through directly through cash payments and than the receipts to the customer. We are using the software AccuPOS, are easy to use, and works seamlessly for Business Works or, making it simple to manage business. It is easy to process, quickly and efficiently.

Leaflets:
The leaflets of WAG Pakistan would be available on the sales counters of the company outlets. The design for the leaflets would be as follows:

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How it Helps?
We are going to fashion a new trend by giving the facility of cell phone tracking in YOUR hands. This device track your www.thesmartlog.com mobile phone automatically when its Bluetooth connection with your mobile breaks, its start beeping. Not only this, you can track your cell phone even after theft through our GPS System. So, enjoy full communication
Enabling Safety with Communication Creating Change

If You Would Like To Talk Further Please Contact Building XYZ, Floor X XYZ Road Lahore +92 42 1234567 Or email us at osnagi@gmail.com

Visit us at: www.thesmartlog.com

Banners
The design of banners is

as follows:

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Absolute Mobile Tracker

Hoardings

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www.thesmartlog.com

Building XYZ, Floor X, XYZ Road Lahore +92 42 1234567

Market Entry Strategy:
Bypass attack
Entering in the new is not as easy task to gain a market share in a situation where the product is not served by existing market. As WAG is innovative so

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we are using the bypass strategy to attract the customers. In a bypass attack to gain market share, a firm identifies segments not served by the existing firms and makes efforts to gain market share. It is easier to target market and in this Way the demand for product will increase. And it is the easy way to satisfy the customers in the beginning. And it is the new segmenting of the marketing where leader is no standing.

Launch plan:
It is important while launching a new innovative product i8n market to keep in mind the target market before the official launching of WAG it is advertised through electronic and print media and it is necessary to launch it before the actual; launch date. Here we will use both the soft launch and official launch strategy. But firstly WAG is launched through soft launch strategy.

Soft launch strategy:
For the success and for the more demand of the WAG it is introduced in the market by internet or by print media because the internet is the perfect media for launching. A Web site that is implemented for it. A Web site can easily be deployed in pieces. The Web medium allows for an ever-expanding online publication that can be routinely updated. And it is one of the ways to inform the target market about their needs. It creates a buzz about the product and has a greater impact on media coverage. In this way curiosities of customer increase about the innovation and can help of the official launching of the WAG.

Official launch:

After that we will advertise the benefit by selling it. By giving the leaf lets CD, and we will try it to the customer before purchasing. We will fixed the date of official launching of the product and than send invitations to the

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different companies CEO’S e.g. telecom and mobile phone companies and give a brief introduction of a product. And also send the mails to the company employees for the promotion and welfare of our product.

Event Marketing At Launch Stage;
At the event marketing launch we shall be looking forward for the telecom sector. Wag is introduced for the mobile phones. It is a tracker that is build outside the handsets. The event marketing will include the mobile phone companies’ collaboration day for the welfare of the industry. The agenda of this event is to promote the cell phones in urban as well as rural areas and accommodating space for small accessories supports. The value added features and the technology advancement user friendliness of WAG-tracker shall be discussed among the industry. As it is hand in hand technology the idea to bring all onto one platform shall be beneficial. The event management can be catered for the sponsorships at universities, colleges for their academic and co curricular activities. Similarly, the events can be sponsored to companies’ employees’ tournaments etc.

Publicity and Public Relations Activities:
For publicity and relationships we shall be making certain objectives to achieve such as product idea, good will, company name and sales forecasting. Our initial steps will include: • • • Seminars Press media briefings Event sponsorships

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• •

Letters to the editors Speaking engagements

In addition we will accelerate closer to the launch with intensive marketing campaign from closed to on rood publicities. The activities will include visits to universities, colleges, community centers, public playing grounds etc.

Gantt chart:

Pricing
Pricing a new product that you are introducing to the market provides additional advantages and challenges. Educating the buyers on what your

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product is and why they want to purchase it is important. According to our research pricing your product when the buyer is just learning about your product and before you have competitors (at least yet) is unique the penetration strategy is better then others.

Penetration pricing
As our product is innovative Penetration pricing is the opposite of skimming. Penetration pricing involves setting your price low so you can penetrate your target market with a large number of sales and garner a large market share. Once market share is captured, price may be increased. An advantage of penetration pricing is that it will make the industry less attractive to competitors. Penetration pricing works well when the buyer is sensitive to price. In other words, demand is elastic. It is also a good strategy if your cost of production involves high fixed costs because these costs can be spread over many units creating economies of scale.

Computation of Price

number of units produced/month Variable Cost/Unit Contribution/Unit fixed cost / unit price selling Price

15000 $6.4 $202,50 0 $13.1 $19.5 $19.99

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Table 5: The Calculation of one Unit of WAG Tracking Device

So our selling price would be $19.99

People
Wag has collected a team with excel competency. Our team is dedicated and well qualified persons. The specific skills include understanding of the product as well as the business. This team will be initially trained for the job enlargement purpose. The training will mainly feature on the managerial prospective. The team has experience in the industrial field and requires some managerial tools. The key people will include: • • • • Marketers Selling and forecasting sales Communicational skills Customer service

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Operations management

In addition to these key people company has plans for managerial and non managerial staff. Managers will be appointed to marketing, sales and forecasts, customer services and operational management. This will monitor the activities as well evaluate the goals over performances. The mangers have been appointed with the valuable experiences and competencies. These managers will take the initial steps of the company and formulate strategic planning. However, the spokesperson will be appointed within the team who is capable of the technology as well as the business goals. The liaison is an important key person who is majorly responsible for the communicating companies’ objectives. Therefore the person appointed needs to be specific in technology as well as well communicator for the company. His initial responsibility is to convey the message between company and its customers. Initially the managerial staff has been appointed who can meet up the company mission with its resources in the best way. The non managerial staff will be a cross functional team oriented people. This staff will be appointed on need basis to each department with contractual jobs. However, for sales department the sales representatives will be appointed on weighted method that is, depending on outlets size, density and location.

Processes:
The sales process has been simplified. There will be no intermediaries in sales channel. The role of intermediaries has been exempt and direct selling has been targeted. This strategy is useful in two ways:

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Firstly it gives us direct data about the sales that will be valuable in building database and forecasting sales.

Secondly it will reduce the cost of putting intermediaries in selling channel.

Initially the product will be launch in brick n click. The physical and visual appearance of Wag is an opportunity for the company to build its name. The website as well as small advertisements on networking sites will be beneficial. For physical sales customers will be attended on independent outlets. ……………………………………………………………………. The sales of products are based on receipts and database entries with customer information. The first license re issuance will be free whereas onwards will be charged.

Physical evidence:
Land and building:
The head office is planned to be in Lahore. The land and building will be rented for the operations of the company. The company will rent a floor at a commercial building in prime location of the area. This main office will serve the purpose for all the managerial staff to plan, organize, and control the activities. This specific office will also collect data from various outlets, formalize its strategies and train its employees. As the business will grow more land shall be arranged for working purposes.

Outlets/shops:
The intermediary role is avoided in our selling strategy. Therefore, direct outlets shall be rented in big cities initially. These outlets will be again selected at prime locations in Karachi, Islamabad/Rawalpindi and Lahore. The

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number of outlets will be determined on numeric and weighted average method. Thus the density of potential will be taken in account. outlets will be opened in other cities on nationwide. Later the

Location and site details:
The location of the outlets and main building is very important in the initial period of the company. The company has decided to rent some places. It is worthy to take rental lands at prominent locations. The availability of parking, surroundings, building structure location and condition is given importance. The outlets will be made customer friendly. The outlets will be provided with sufficient information about the product, its mechanism, and benefits and also to the related categories. The customer will be provided on time free trial of product thru testers.

Quantitative SWOT Matrix Analysis:
Strengths
• Wag is an innovative product in Lahore. It is a tracker that is outside the mobile phone. The product makes respective mobile phones secured and prevents from short memory loss instants. The quality of the product is the small distance in which it works and response to the small changes.

Wag is designed so that it does not cost much over charging or battery usage.

Its user friendliness, simplicity and design add to its strengths.

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The unique programming of Wag (device) can be used in mobile phones via Bluetooth. It does not require specifications in its design for the mobile phones.

It response to its programming autonomously that saves both time and psychic tensions.

It is a product that has been produced with materials that are environmental safe thus it is not polluting the endangered ecological system.

Weaknesses
• • It is a young product whose compatibility will measure with time. Wag team has to plan strategic and tactfully, the planning should meet the best for our limited resources. • • Difficulty in brand awareness as a start up company in the market. The capital necessary to grow the business.

Opportunities
• • • Collaborating with the growing telecom industry. More precision in technology advancement Helping to grow the general products market with technology.

Threats
• • Future/ potential competition from telecom industry. Imitate poor quality software’s companies.

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Decreased competitors/substitutes prices. o

Figure 5: SWOT Matrix Analysis of WAG Pakistan

Financial Analysis
Start up Cost – One Time Expense
Firstly we are going to launch our product in two cities Lahore and Islamabad. The estimated budget is as follows:

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Particulars Software Cost Rent (Security) for 6 shops Rent (Security) for Factory Decoration & Infrastructure of Buildings Training of Employees Machinery Cost Total

Cost (Rs) 600,000 80,000 800,000 1,500,000 15,000 2500000 5,495,00 0

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Cash Flow

Beginning Cash Balance Cash Inflows (Income): Cash Collections Credit Collections Investment Income Other: Total Cash Inflows Available Cash Balance Cash Outflows (Expenses): Advertising Software Cost Inventory Purchases Maintenance & Repairs Operating Supplies Office Supplies Permits & Licenses Utilities & Telephone *Sales training Subtotal Other Cash Out Flows: Subtotal Total Cash Outflows Ending Cash Balance

0 0 0

$0 $0 1483000 600,000 250,000 1,500,000 25,000 1,000,000 15000 $4,873,000

$0 $4,873,000 ($4,873,000 )

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