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Navyzic Phone

1.Company Info: (Anuj)

1.1 key to success


1.3 objective

2. Products and market plan(Prerak)

2.1 Market Segmentation

2.2 Industry Analysis

2.3 Competition and Buying Pattern

2.4 Target Market Segment

3.Strategy and Implementation Summary:

Navyzic Phone will be using an aggressive strategy to keep hold on New Technology services: Assuming-

 Every person has a desire for using the most advanced technology available in the market.
 Focusing to one segment of the population will lead to an expansion in overall market growth.

The following sections review the various strategies that will support this effort.

Marketing and Sales Strategy:

Company will try to be much more flexible to adapt the frequent technological disruptions in the
industry and will be trying to extract the maximum opportunity according to the market conditions that
are prevailing for short term:

For US:
In US market we feels that major sells will be coming from Tech 1 product and demand for weak 2 will
be weak, thinking this in mind the 3.3X margin has been decided for Tech1 and for TECH2 the sales will
be first covered in US and then to Europe (More TECH2 sales is expected in Europe so the margin in US is
kept at 4.8X because even if it doesn’t got sold in US, it will definitely be sold in Europe market).

For Asia:

For the fastest growing market, we feel that the competition is going to be so harsh that it will lead the
lower margin company to cover the major share in the market and to capture the market we will going
only with the margin of 3X and as TECH2 is much in focus the margin is kept around 3X.

The company future plan is to only sell products of advanced technology with more Margin as compare
to Asia and US, we feel other company’s might not be much interested in Europe and we can take
advantage by keeping higher margins(TECH1: 4.2X and TECH2: 3.25X)

R&D Strategy:

Our motive is “new technology is our strength”. With this in mind we are planning to buy all the
technology and then develop new features using our in house R&D. we are planning to acquire Tech 3
by next year and tech 4 by the year after that. Our strategy is based on the assumption that we will see
only an evolutionary shit to technology by the consumer. Thus having multiple technology under us we
can even be first movers and also even cater to such markets where our competitors don’t cater to but
demand still exists.

Developing in house features for new technology will help reduce the cost of these technology reducing
the unit cost of production. Our ultimate goal is to develop almost every feature and technology
available so that in future when demand starts flowing in it will make it easier for our firm to compete
with others in terms of price as well as flexibility in product.

Production Strategy:

We have estimated that the demand for tech 1 will be similar to the network coverage forecasts given
wherein tech1 being the most sort after technology by the consumers. We also feel that the demand for
new generation tech will fluctuate since they have yet to be fully tested and proven a stable technology.

Inventory: at the end of year one for tech 1

Keeping this in mind our production strategy to produce tech 1 in excess for now and keep it in
inventory. This will also give us a cushion if we have to produce a new technology in excess to meet the
demand in future.

Investments made:

Based on our estimates the demand for tech 1 is going to be increasing at a faster rate than tech 2 based
on the demand forecasts and also on the fact that tech 2 even with the hype still have problems and not
a fully build technology i.e. it’s still relatively new and have to grow before establishing in the market.
Our strategy is to meet maximum of this demand with the minimum of cost. We have invested on 5
plants in Asia so that we can avoid contract manufacturing as much as possible. This is also on the
assumption that the political situation between US and China will remain stressed for at least next 5
years. Secondly because of the tariff rates are considerably low when moving products from china to
Europe and USA to Europe. Having factories in china will help us in the cost advantage necessary for the
price sensitive market there.
Fig: Demand and production for the next 2 rounds

Financial Plan (Gaurav)