90375597 final marketing report

7/31/2019 90375597 Final Marketing Report

1/28

Contents

Executive Summary .................................................................................................................... 2

Current Marketing Situation ...................................................................................................... 2

Market Description .................................................................................................................... 3

Product review ........................................................................................................................... 4

Competitive Review ................................................................................................................... 7

Channels and Logistics Review .................................................................................................. 9

Strengths, Weaknesses, Opportunites and Threats (SWOT) Analysis. .................................... 11

Objectives and Issues ............................................................................................................... 15

First-year Objectives ................................................................................................................ 15

Second- year Objectives........................................................................................................... 15

Issues ........................................................................................................................................ 15

Market Segmentation .............................................................................................................. 15

Marketing Strategy .................................................................................................................. 17

Positioning ............................................................................................................................... 18

Product Strategy ...................................................................................................................... 18

Pricing Strategy ........................................................................................................................ 19

Distribution Strategy ................................................................................................................ 21

Promotion Strategy .................................................................................................................. 23

Marketing Communication Strategy ........................................................................................ 24

Marketing Research ................................................................................................................. 25

Action Programs ....................................................................................................................... 25

Budgets .................................................................................................................................... 26

Controls .................................................................................................................................... 27

References ............................................................................................................................... 28


2/28

Executive Summary

The mission of Casio's product development is to create something where there was

nothing before. Casio adds fun and convenience to daily life and pioneers new cultural trends.

Developing products that ensure ease of use for everyone by realizing new ideas with

advanced technologies to creating new value in the customers mind has become our goal.

Casio is preparing to launch a new product, Casio Multifunction-Glamour Moment watch. It

provides a host of functions from digital timers to thermometers. These ranges are great for a

variety of outdoor and everyday tasks when require a little more functionality than simple

time. The features include general simple timers with extra features like compass, water

resistant and large LCD screen displays.

The primary marketing objectives is to achieve first-year 20,000 unit. The primary

financial objectives are to achieve first-year sales revenues of, keep first-year losses to less

than RM 1 million, and break even early in the second year.

Current Marketing Situation

Timepieces, one of Casio core businesses, boasts a stable share in world markets, and

continues to achieve a high level of profitability. The world timepiece market, as a saturated

market, cannot be expected to show substantial growth in the future. Our main strategy has

been to develop a market for solar-powered watches; a high-value-added product that makes

our product offers a competitively unique functionality watch.

Casio will maintain its high market share by working to accurately identify its customers

needs and develop products that incorporate the latest features. The Company has already

made inroads in such markets as South Korea, Germany and Spanish-speaking countries, and

now China. In this way, we are making steady efforts to cultivate new markets and expand

existing markets. We are making full use of the know-how gained in the domestic market to

identify potential demand in overseas markets.


3/28

Market demand is not always steady, and demand for Casio Multifunction-GlamourMoment watch maybe concentrated in short periods of time. To address this situation,

production and sales teams at Casio must work together to provide a stable supply of

products while carefully adjust for changes in demand.

Market Description

A watch is now looked at as a personal accessory, an extension of a persons lifestyle.

The design of the watch and its additional combination of advances features influence a

buyers choice. Consumers especially professionals and students always looking for

multifunction, full face digital and analogue display provides them a wealth of at-a-glance

information whenever they need it. They pursue on features like thermometer, world time,

water resistant, electro-luminescent backlight, digital compass, and full function digital watch

with alarm functions.

Since a whole new range of technologically superior watches has also entered the

market, we are going to design watch that employs power generated by a solar battery to

charge a rechargeable battery that operates the watch functions. The solar power system is

capable of operating high-load functions, such as alarms and sensors, with large power

requirements. It is also eco-friendly because this watch never needs a battery replacement.

Consumer buying habits are based on the quality and outlook on the product. Since the price

of the product matches its quality, then customers will buy it and become consumers. So, the

51.70%

16.50%

13.70%

18.10%

Net sales by region in 2009 518,036 million

Japan

NorthAmerica

Europe

Asia and Others


4/28

price of this watch is matches its quality and its outlook is attractive, youngsters will decide

to buy it too even the price is higher.

Casio needs to handle its supply chain more successfully by introducing a regular

monitoring system that ensures that these guidelines are properly fulfilled.

Product review

We named our product as Casio GLAMOUR MOMENT because glamour symbolised

an appearance of enhanced attractiveness while moment represents time. The Casio

GLAMOUR MOMENT watch is equipped with direction and temperature sensors function.

Information appears on the large LCD screen making it easier to view essential information,

even when the going is rough. This feature packed GLAMOUR MOMENT has just about

every tool consumer could need wherever they are. The compass, barometer and timer

functions are assigned their own buttons, allowing instant operation and providing the

information you need at a moment's notice. All these powerful features and functions come in

a streamline configuration that reduces the chance of becoming caught up in clothing.

Approx. battery operating time:

13 months on rechargeable battery (operation period with normal use without

exposure to light after charge)


5/28

34 months on rechargeable battery (operation period when stored in total darkness

with the power save function on after full charge)

30 Telememo pages

8 letters and 16 numerals per page

EL Backlight (with Auto Light)

An electro-luminescent panel causes the entire face to glow for easy reading. Auto

Light automatically turns on the EL backlight when the watch is tilted towards the

face for reading.

Temperature Measurement

A built-in temperature sensor measures the temperature

Display range: -10 to 60C (14 to 140F)

Display unit: 0.1C (0.2F) *Interchangeable between Celsius (C) and Fahrenheit

(F)

Digital compass

Measures and displays direction as one of 16 points)

Measuring range: 0 to 359

Measuring unit: 1

Abnormal magnetic field detect function

Bi-directional calibration and northerly calibration function

Barometer

Display range: 260 to 1,100 hPa/mb (7.65 to 32.45 inHg)

Display unit: 1 hPa/mb (0.05 inHg)

Atmospheric pressure tendency graph *Interchangeable between hPa and inHg

World Time

Displays the current time in major cities and specific areas around the world.

Timer

Counts down from a start time that have been specified.

Input range: 1 second to 60 minutes

Unit: 1 second

Other: Auto-repeat function, reset time setting, with repeat timing, stopwatch

automatically starts, when countdown is complete

1 second stopwatch operation when started from 0'00" display Measuring capacity: 99:59'59


6/28

Measuring modes: Elapsed time, split times, 1st-2nd place times

5 daily alarms

Hourly time signals

12/ 24 hour formats

Daily Alarm, Hourly Time Signal

The daily alarm sounds each day at the time we set. The value indicates how many

daily alarms are available. The hourly time signal causes the watch to beep every

hour on the hour.

Full Auto Calendar

Allowances are made automatically for months of different lengths, in case date

corrections for leap years are required.

12/24-hour Timekeeping

Times can be displayed in either a 12-hour or 24-hour format.

Spherical Glass

The surface of the glass is rounded.

Stainless steel resin case and band

Water resistance classification (10 bar / 100m)

Perfect for swimming and snorkelling: the watch is water resistant to 10 bar / 100

metres. The metres value does not relate to a diving depth but to the air pressure used

in the course of the water resistance test. (ISO 2281)

Accuracy

+/- 30 seconds per month

Dimensions

44,20mm x 43,00mm x 14,10mm (H x W x D)

Weight

43.00 g


7/28

Competitive Review

The emergence of lower-priced watches, stylish, multicoloured straps has increased

competitive pressure. Key competitors include the following :

1) Fossil.The reasons why these Fossil watches are so popular could be the fact that these

timepieces are accessible to those in the middle-class. These wrist pieces are priced

reasonably and Fossil watches can be found in most department stores and retail

stores. Teenagers and other younger people find these watches popular for the well-

known characters that these pieces are designed with. There are Fossil watches

designed with Snoopy, Star Wars, Mickey Mouse, Pluto, Green Lantern and many

other well-known characters. Another reason these pieces are popular is because of

the watchs interchangeable dials and adjustable straps so that it can fit any wrist

perfectly. The multicoloured straps and dials are extremely popular, and also perfect if

buyer want their watch to match the outfit they are wearing. This is a demand in the

world today.

2) TitanIt has 60% of the watch market in India today because companies existing have a

niche market. It gives the flexibility to the customer to choose a watch more or less

than his budget giving buyer the same guarantee. Titan creates competitive advantage

through differentiation. The first concentration is on technological leadership. They

decided to manufacture only quartz (analogue and digital) and not mechanicals, and

they would set up state-of-the-art plant to manufacture watches in a wide variety of

designs and prices. They projected the watch as a fashion accessory. Style is a very

evident factor in Titan watches and is a part and parcel of the company.

3 Gucci

It has a promotion that if consumers buy a Gucci watch, then can get a free gift.

Their product is quite expensive and only those in upper middle class would patronize

it to reflect their role and status in company for an instance.


8/28

4Swatch

This watch will selling fast at everywhere because of its outlook that is attractive and

lovely for girls. Therefore, within the lifestyle of youngsters, Swatch is well-known

brand, simple and has an easy function compare to Casio.

5) Citizen watches

Eco-Drive wristwatches are powered by light. Eco Drive wrist watches never need a

battery because these watches take light as the source for power.

6 Seiko

Seiko believes that the wristwatch is an intimate accessory. The best watches live in

harmony and interact with the wearer, and their functions offer a reassuring and

emotionally satisfying bond. Seiko's technological development is focused on the

creation of 'emotional technologies. The appeal of emotional technology strongly

position this brand in the mind of buyer that Seiko creates the interaction between the

wearer and the product.

Competitors Model Features Price

Fossil Chronograph BrownDial Watch

The bright and brushed hardware of this watch is a

bold contrast to the deep brown strap and gradedthree-eyed dial.

$105.00

Titan

Nevada Titan Watch

This superb quality timepiece features a quartz

accurate movement, stainless steel band and your

favourite collegiate logo. The Titan Steel's stylish

design enables wearer to express their loyal school

spirit with a more formal flair.

$149.95

Gucci YA115203 Bracelet is black leather strap with crocodile

pattern. Crystal is made up of scratch resistant

$625.00


9/28

sapphire crystal. Case material is polished with

brushed steel and dial is black anthracite colour.

Swatch Playa Look GZ215 Cassette Playa has created Playa Lookthe Club

Watch in a Special Packaging - a plastic eyeball

case. By buying this watch you will become a

Member of Swatch Club for one year.

$85.00

Citizen

Watches

Citizen Eco Drive

AT0980-63L

Use the power of light to continuously recharge

their lithium ion batteries. This revolutionary

process works so well that the battery is able to

store enough power. Even if for some reason the

watch does run completely down all you need to

do to re-power it is to place it in the sunlight or

artificial light for a few hours. This special batterytype doesnt get affected during charging or

discharging cycles and is durable enough for a

long life cycle.

$ 189.00

Seiko Kinetic Direct Drive The wearer automatically generates electrical

energy by her/his wrist movement. With Kinetic

Direct Drive, however, the wearer can also

generate energy by winding the crown. The wearer

can see and feel, in real time, the direct transfer of

power from his or her winding of the crown to the

power reserve.

$679.99

Table: Sample of competitive products and pricing

Channels and Logistics Review


10/28

Casio-branded products will be distributed and through a network of retailers in Asia. The

subsidiaries include China-Guangzhou, India-New Delhi and Taiwan-Taipei. In Malaysia,

Casio product is available through. CASIO products are available here as to where to buy and

where to get technical support in our native language, Malay and English. Casio using

selective distribution to choose the retailer according to region because this can develop good

working relationships with selected channels members and expected a better-than-average

selling effort. Casio has evaluate that the stores customers, location, and future growth

potential. MARCO CORPORATION (M) SDN BHD is located in Kuala Lumpur and this

location is suitable for distributing our product to:

Watch Stores. Independent watch retailers will carry Casio products. Online purchasing. The online product catalogue also clearly indicates products that

Casio is selling.

Indirect distribution involves distributing product by the use of an intermediary.

Casio is also managing its supply chain more successfully by introducing a regular

monitoring system that ensures that these guidelines are properly fulfilled.To promote more

efficient procurement and logistical activities in the Asian region, Casio is cooperating with

its parts vendors to improve its distribution routes.

When procuring parts manufactured in Malaysia, Casio had previously been having

items delivered first to Japan, which were then shipped back out to its plants in China. Now

the company is shortening transportation distances by having those parts delivered directly to

a warehouse in Hong Kong, and shipped from there to plants in China.

The parts had been delivered to Japan because parts transactions are handled by Casio


11/28

headquarters, but since this causes transportation loss, Casio switched to a system that

bypasses Japan entirely, and allows parts to be stored at its Hong Kong warehouse.

Reducing these transportation distances reduces costs by about 90% and CO2

emissions by 85%, yielding major reductions in environmental impact. This also reduces our

expense by providing a better service or lower prices to our customer.

Strengths, Weaknesses, Opportunites and Threats (SWOT) Analysis.

SWOT analysis is a tool for auditing an organization and its environment. It is the

first stage of planning and helps marketers to focus on key issues. SWOTstands for strengths,

weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.

Opportunities and threats are external factors. Casio company have several powerful

strengths on which to build or maintain of high brand awareness and image and we have

independent research and development on watches product line industry. However, our

weaknesses arephysical specification and lack of advertising efforts. The major opportunity

is Increasing demand for multiple functions of watch and the political factors that encourage

the sales growths. We also face the threat of ever-higher competition from consumer watches

manufacturers, as well as the downward pricing stress and fluctuation of economy.

Strengths

1. Brand awarenessCasio has established higher brand awareness and image in customers mind. Brand

awareness is a marketing concept that measures consumers' knowledge of a brand's

existence. Creation of brand awareness is the primary goal of advertising at the beginning

of any product's life cycle in target markets. In fact, brand awareness has influence onbuying behaviour of a buyer. This is because brand has a reputation for value for money,

glamour, distinctions and a wide range of products all in one store.

2.

Innovative product


12/28

Due to Casio Company it has the independent research and development department,

which cooperated together with the marketing department in promoting the new products.

The R&D department also monitors the fashion of watch in Malaysia and in other leading

countries. This allows them to benefit from being the first to produce according to

consumers' needs and wants, thus having an ability to increase market share, as more

consumers would purchase from Casio.

3. Application of advance technologiesUses latest computerized technologies in formulating appropriate designs, material

selection, pattern and colour combinations for new accessories. This provides better

service to consumers as Casio will produce high quality products that goes beyond

consumers' expectations.

From that, Casio GLAMOUR MOMENT watch is launching by offering a combination

of features that would otherwise to fulfil the customers requirement. With advance

technologies, the Casio GLAMOUR MOMENT watch is equipped with direction and

temperature sensors function. In formation appears on the large LCD screen making it

easier to view essential information, even when the going is rough. This feature packed

GLAMOUR MOMENT has just about every tool consumer could need wherever they are.

The compass, barometer and timer functions are assigned their own buttons.Since our product employ solar power system, wearers can enjoy unrestricted use of

various watch functions - such as a full-auto backlight; advanced sensors for measuring

the temperature, atmospheric pressure and direction as the watch recharges itself with

solar energy through ultra-small solar panel featuring highly efficient electric power

generation and a large-capacity rechargeable battery.

4. PricingOur product price setting at lower level than competitor in the market even thought Casio

GLAMOUR MOMENT have offers bundle of features. Since the price of the product

matches its quality, then customers will buy it and become consumers. So, the price of

this watch is matches its quality and its outlook are attractive, youngsters will decide to

buy it.

Weaknesses


13/28

1. Physical specificationDue to the multiple features that incorporate in this Casio GLAMOUR MOMENT,

causing this watch is slightly heavier and thicker than most competing models. To

counteract this weakness, we will emphasize on our watch products benefits and value -

added pricing.

2. Lack of advertisement effortsAdvertisement or promotion efforts will help increasing the customers awareness of

latest launching of new products. Therefore, we will address this issue by aggressive

doing the promotion occasionally. The advertisement efforts may be done through the

mass media such as on internet, through television, radio and others methods.

Opportunities

1. Political factorsMalaysia has been made a shopping heaven when the government had implemented the

Mega carnival sale to be held 3 times a year. This is to increase the sales and consumer

spending because after the 97'crisis, consumers had been reluctant to spend. Furthermore,

this would help Casio achieve it sales

2. Cost-efficient technologyBetter technology is now available in the market by offering at a lower cost than ever

before. Thus, Casio can incorporate advanced features at a value-added price that allows

for reasonable profits.

3. Increasing demand for multiple functions of watchThe market for multifunction devices of watch is growing faster than few or single -usedevices .Growth will accelerate as dual-mode capabilities become

mainstream .Nowadays, many watches also provide a great deal of information or more

functions beyond the basic function of displaying the time and the date , which called a

complicated watch . Casio GLAMOUR MOMENT has provided digital compass, EL

Backlight (with Auto Light) and also lightpowered operating structure that giving

customers the flexibility to make the watch more widely uses.

Threat


14/28

1. Increased competitionMore companies are now entering the local market with offering the watch that having

the equivalence features and benefits products at same prices or even more lower in price

setting. This would create fierce price wars with competitors and only the best can

survive. Thus, Casio company marketing strategy must be stressed on clear differentiation

and positioning as well as the valueadded pricing.

2. Downward pressure on pricingIncreasing competition and market share strategies are surely pushing down the watch

product prices down. Competitors are considering a price reduction may wish to estimate

the likelihood that competing firms would also lower their prices and possibly trigger a

ruinous price war. This created a high degree of interdependence and need to be aware of

what the other guy is doing or might do is to be contrasted with lack of interdependence

in other market structures. Therefore, we are trying to achieve our objective of seeking a

10 percent profit on second year sales of the origin model is realistic, given the lower

margin in this market.

3. Compressed product life cycleWhen Casio GLAMOUR MOMENT has reached the maturity stage of their life cycle,

then we need to apply the contingency plans to keep the sales growing by adding new

features, targeting additional market segment, and also may required prices adjusting as

well.

4. Economic fluctuateLately, there have been many economic downturns and mishaps that have affected

businesses. It started with the 97'crisis, then the September 11 attack, the war on Iraq, and

the situation will affect the market price as well as a threat to businesses are unable to

grow due to fears of spending.


15/28

Objectives and Issues

We have set aggressive but achievable objectives for the first and second years of

market entry.

First-year Objectives

During the Casio Glamour Moment watch product initial year on the market, we are

aiming for unit sales volume of 20,000. The reason our company setting this objective is to

investigate the global market and consumers responses on our new launching product, so that

we can make a improvement if customer or market do not have any intense reaction or

responses.

Second- year Objectives

Our second- year objectives are to sell a total of 30,000 units of our new model and

achieve breakeven early in this period.

Issues

In reaction to product launching, our major issue is the ability to establish a high

awareness of customer toward our products by taking a meaningful positioning and having a

distinction differentiation from other company products. We will heavily promote our

products by marketing our existence well know brand in the market place, which already

have recognition of memorable and distinctive brand image projecting innovation , quality

and as well as a beneficial value.

Market Segmentation

Markets consist of buyers and buyers may differ in one or more ways such as wants,

buying attitudes and locations. Therefore, as a company, we will divide the large markets into

smaller segments that can be reached more efficiently and effectively with products that

match their needs. Our company will concern about what the consumers want, how they use

the products and how to reach them. Main consumer market is the middle income

professionals or working people who need a watch to improve their time management,

recognizing the direction and measuring the barometer when diving with friends or

business partners .Besides, we will also target the consumers from the age of 21 to 35 who


16/28

have stable income. The segmentation variables used are geographic, demographic,

behavioral and psychographic.

Demography is the study of human population in terms of age, gender, household size,

family life cycle, education and population age mix whereas demographic segmentation

means dividing a market into groups based on their age, gender, income, occupation and

nationality. Generally, the segmentation of demographic is based on consumers needs. We

recognizes the need of business people who always busy for their work and sometimes may

need to attend some social event, so our company decide to launch a new product in 2011 to

fulfill their needs and create more customer values. Besides, we found that the middle income

consumers will prefer some fashion in their watches but to them price did matter. While they

had the capacity to pay the price required for a good watch, they would not purchase a watch

without comparing various offers in the market. Students may need to watch the time when

they are studying in school.

For geographic segmentation, Malaysia is generally warm throughout the year with

temperatures ranging from 21C to 32 C in the lowlands. However, this can be as low as

16C in the highlands. Annual rainfall is heavy at 2,500mm (100 inches). Generally, Malaysia

has two distinct seasons. The dry season occurs during the south-west monsoon from May

and September. The northeast monsoon brings the rainy season to the country during mid-

November till March. We change the function of GLAMOUR MOMENT watch to fit the

climate of Malaysia. Besides, our new product will be firstly launched in the urban area. This

is because we found that the people in urban area are style-conscious and trendy. They will

prefer a watch which is stylish and possess everlasting quality. GLAMOUR MOMENT will

be able to fulfill their needs as it is fashionable and sporty in appearance. The people in urban

area can wear this watch in any functions or ball because this watch can be easily matched

with the clothing. Besides, mostly young generation use watches to improve their outlook.

Apart from that, psychographic segmentation is dividing a market into different

groups based on social class, lifestyle or personality. These characteristics can be general,

such as conservative or liberal, outgoing or introverted, social or private. But psychographic

profiles can also be quite specific. We segment our market by consumer lifestyles or

personality. Sometimes, the working people share the same interest or opinion about an


17/28

activity. They go diving, playing golf or taking part in strenuous activity like rock climbing.

Thus, they will prefer a watch which has multifunction and are able to provide the optimum

convenience when they involve in outdoor activities. For this reason, we use psychographic

segmentation to target them. Our new product possess many functions especially the digital

compass and measurement of barometer.

Marketing Strategy

Casios marketing strategy is based on the positioning of product differentiation.

Product differentiation means there is a little variation in the product produced or another

extreme are the highly differentiated products. Such products can be differentiated on

features, performance, style and design. Regarding to style, our company projected the watch

as a fashion accessory. Style is a very evident factor in Casio watches and is a part and parcel

of the company. Over the year, Casio had built a formidable distribution and support network.

Casios customer orientation was reflected through their advertising campaigns. By providing

a lifestyle product, Casio not only got a premium but also convinced consumers to buy

multiple watches. Our company also guard against the leaders homogenization. We utilize

managerial resources that are not possessed by the leader and implement the differentiationthat the leader cannot homogenize.


18/28

Positioning

Positioning techniques are used to be sure that the image in consumers' minds about

our company is the one we want them to have. Besides, positioning also means the ways thatGLAMOUR MOMENT is defined by customers on important attributes or the place the

GLAMOUR MOMENT occupies in our customers mind relative to competing products. We

have positioned businesses that have maintained high market share and yield steady profits as

Stable Businesses. We have positioned businesses that are expected to experience significant

global market growth in the future, while also seeing intensifying competition as a large

number of companies enter the market, as Expansive Businesses. We are following a

successful strategy of securing stable profits from the Stable Businesses while increasing both

sales and operating income in Expansive Businesses. This approach to management has been

securing both growth and profitability, and is expected to continue to deliver superior

sustainable results.

Product Strategy

Our product is aimed at the middle income customers and students. The Casio

GLAMOUR MOMENT, including all the features described in the earlier Product Review

section will be sold with 2 years warranty. We provide the customers with a fashionable

watch. Building Casio brand is an integral part of our product strategy. The value of brands in

todays environment is phenomenal. Brands have the power of instant sales, they convey a

message of confidence, quality and reliability to their target market. We built the solar panel

in the watch that will generate electricity when it senses light. This feature will enable us to

obtain differential advantage over competitors when we offer the product to our customers.

Since a whole new range of technologically superior watches has also entered the market, we

are going to design watch that employs power generated by a solar battery to charge a


19/28

rechargeable battery that operates the watch functions. The solar power system is capable of

operating high-load functions, such as alarms and sensors, with large power requirements. It

is also eco-friendly because this watch never needs a battery replacement. Besides, we also

utilise E-Product Strategies. When e walk into a shop and see a product we like, we can

assess it, touch it. Online, this immediate tangibility disappears. Firstly, there are clear online

facts about the product that consumers are purchasing. The buying process is also customised

for returning visitors, making repeat purchases easier. Our organisation can also offer

immediately ancillary products along with the main purchase.

Pricing Strategy

The pricing strategy portion of the marketing plan involves determining how

marketers will price their product or service; the price they charge has to be competitive but

still allow us to make a reasonable profit. Accurate product or service pricing is key for

maximizing profits, minimizing unsold inventory and meeting company sales goals. Through

matching the product and current market conditions to an appropriate pricing strategy,

marketer can gain market share or a price premium that enhances the company's revenue and

profitability. The keyword here is "reasonable. Marketers can charge any price they want to,

but for every product or service there's a limit to how much the target consumer is willing to

pay. Thus, our pricing strategy needs to take this consumer threshold into account. We set our

prices by examining how much it costs us to produce the product or service such as the fixed

and variable cost and adding a fair price for the benefits that the customer will enjoy. In break

even analysis, the price is set to break even on the costs of making and marketing a product

or in other words setting a price to make a target profit. Casio consists of watches that cater

to various segments and to various categories and so our pricing strategy is also in

accordance our products and the features offered us cashing in on monopoly, unique features,

outstanding performance and the name CASIO. The pricing strategies that we use for the new

product Glamour Moment include competition based pricing and value based pricing.

In value based pricing, the price is based on the buyers perception of value rather than

on the sellers cost. As a company which always concern about the consumer perceived value

on the products that we introduced, we are basing their prices on the products perceived value.

And we can use it here as well as the consumers already dont have an image of this newproduct in mind so there is a need to base its new price on its value. We change the view


20/28

point of the customers by powerful and attractive advertising. For competition based pricing,

we set the prices based on the prices the competitors charge for similar product. Customers

will base their judgments of a products value on the prices that competitors charge for similar

products. We base our prices largely on competitors prices, with less attention paid to our

costs or to demand. We charge the same as competitors like Guess, Titan or Alba. However,

we provide more benefits than the competitors so that we can satisfied the customers who

seek for benefits from the watch they purchase. Glamour Moment will be introduced at

RM340 wholesale ($100)/RM369 retail price per unit ($100). This price is quite reasonable

for the middle income population and the high income professional. We use the high quality

materials like stainless steel and water proof materials to make our watch, yet we sell it at

same price compared to other companies. By using this pricing strategy, we will able to

attract the desirable partners like wholesaler and retailers in urban areas in helping us to

promote and sell Glamour Moment. Wholesaler and retailers are important partners for Casio

because they are more familiar with the buying behavior of customers, thus can help us in

setting the price of new products that meet the customers des ire. Besides, we can take share

from the competitors of our company like Guess, Titan, Alba and Titus as we set a lower

price than them. As a result, more consumers will buy Glamour Moment from us. In addition,

we also use penetration pricing in our pricing strategy. Penetration pricing can be used when

introducing a new product in a crowded market of similar product, or for introducing a new

type of product for the first time. This kind of pricing is suitable since we launch Glamour

Moment for the first time. For this method, we place a low price on Glamour Moment or

service to quickly gain market share. Once we have obtained market share, we increase the

price to a profitable level. This pricing method is effective for products or services where

there is consumer barrier to change. Apart from that, we will introduce a special package

during celebration or occasion. We offer the customers with Valentines Day, Fathers Day

and Mothers Day duo pack, which mean the customers are able to get a free watch by

purchasing Glamour Moment during the day. We believe that this kind of strategy will able to

attract the potential or new customers who looks for optimum benefits from the same price

watch.


21/28

Distribution Strategy

When Casio manufacturer decides to adopt selective strategy, we have select a

intermediary which has experience of handling similar products, credible and is known by the

customers.

For the distribution of our new product, we will firstly consider the distribution

channels such as direct, retail and distributors. Our channel strategy is to use selective

distribution since GLAMOUR MOMENT is a new product. When Casio manufacturer

decides to adopt selective strategy, we have select a intermediary which has experience of

handling similar products, credible and is known by the target customers. We will distribute

GLAMOUR MOMENT via a number of well-known stores and retailers, where a place thatconsumer is willing to shop around and where manufacturers want a large geographical

spread. Our retail operations are a mix of company-owned and franchised outlets, with the

idea being to ensure a dominant presence in all market areas through different kinds of stores,

and to assure the availability of every Casio product to all regions in Malaysia or other

foreign countries when we introduce the products in global market during the second year.

Our distribution channels include jewellery shop, ladies / gents fashion stores, watch shops,

duty free shops, gift shops and so on. We concentrate on customer perspective, and have

engineered the entire chain to suit different customers. The franchisee is a critical cog in our

retail matrix. For this reason, we will organize various programs for franchisees, their

managers and customer relationships officers. These include training workshops and

seminars on market trends, visual merchandising, store operations and maintenance, and

customer service initiative. However, the real challenge in retailing is managing the

franchisee network through processes and systems that ensure a superior brand experience for

every customer.

Franchisee relationship management is important because of increasing competition,

not only from the watch business but also from other business in the retail industry. Besides

the franchisees and our own show rooms, we also sell our products in different outlets of the

shopping centre such as Pavilion in Malaysia. A lot of business people like to go to Pavilion

as they look for the star-rated or branded products there. We will make sure that our products

occupied the shelves so that customers will easily be attracted by the appearance of

GLAMOUR MOMENT. For our many customers, we aim to build relationships throughrewards, regular discounts and special offers. Customers can also count on a service-centre


22/28

network thats 550-strong and spread over 30-odd cities and towns across the country. The

service centres have been deliberately kept apart from Casio show rooms. The customer

shopping to suit him in a variety of ways which not only makes him to want to buy more but

also to come back more frequently and to catch the customer to buy a Casio than the other

brands, when we spend so much on our product development, our show rooms, the image of

the brand support us very well to enhance the brand image. Casio is also managing its supply

chain more successfully by introducing a regular monitoring system that ensures that these

guidelines are properly fulfilled. To promote more efficient procurement and logistical

activities in the Asian region, we are cooperating with vendors to improve our distribution

routes. When procuring parts manufactured in Malaysia, Casio had previously been having

items delivered first to Japan, which were then shipped back out to its plants in China. Now

the company is shortening transportation distances by having those parts delivered directly to

a warehouse in Hong Kong, and shipped from there to plants in China. The parts had been

delivered to Japan because parts transactions are handled by Casio headquarters, but since

this causes transportation loss, Casio switched to a system that bypasses Japan entirely, and

allows parts to be stored at its Hong Kong warehouse. Casio's strategy is to popularize

multimedia with innovative products that capitalize on new opportunities, that expand

creativity for the users, and that can be used now--with existing infrastructure and new

media--for reasonable prices. With unique functions and product concepts, we are expanding

our product line up for various lifestyles and consumer groups. We are also helping

businesses increase creativity and productivity with advanced data and communications

equipment. Our experience and exclusive technologies via online allow us to create

personalized devices that are light, compact, and energy efficient.


23/28


24/28

sales promotion at different occasions like birthday and Independence Day, greeting cards

will be sent in order to stay in contact with our loyally and potential customers.

Marketing Communication Strategy

Marketing & Communication Strategies offers a full range of consulting, design and

planning services to help our organization succeed. We will work with customers to find

solutions that help us best reach our marketing and communications goals. It all depends on

customers needs. A professional marketing and communication consultant will work directly

with customers to help identify the services that best meet their needs and budget and willprovide for the best use of our marketing resources. When customers patronize the Casio

Shop, the workers of Casio Shop will explain and describe every features of GLAMOUR

MOMENT to customers. Customers can also refer to the consultant about the price or

functions of GLAMOUR MOMENT. This will enhance the relationship between Casio with

customers. Besides, after sales service is essential. We will provide the customers with 2

years warranty on the purchasing of GLAMOUR MOMENT. Apart from that, advertising

will appear on a pulsing basis to maintain brand awareness and communicate a great variety

of differentiation messages. We use push trade sales promotions to motivate the retailers for

push strategy. We also use direct mail to spread the information about Casio GLAMOUR

MOMENT. Direct mail allows us to use our resources more effectively by allowing us to

send publicity material to a named person within our target segment. By personalizing

advertising, response rates increase thus increasing the chance of improving sales of Casio

GLAMOUR MOMENT.


25/28

Marketing Research

Using research, we are identifying the specific features and benefits that our target

market segments value. We will also use the feedback form with different question about the

product performance, its weaknesses (if any), and the need for quality improvement and other

questions regarding service approachability and affordability will be available. We are also

measuring and analyzing customers buying attitudes towards competing brands and products.

Brand awareness research will help us to determine the efficiency and effectiveness of our

messages and media .We will also analyze the market and find potential buyers during certain

period. Finally, we will use customer satisfaction studies to gauge market reaction.

Action Programs

The CasioGLAMOUR MOMENT will be in introduced in February. Following are

summaries of the action program we will use during the first six months of the next to

achieve our stated objective.

January we will launch a $150,000 trade sales promotion campaign and exhibit at the major

industry trade shows to educate dealers and generate channel support for the product launch

in February. In addition, we will create buzz by providing samples to selected product

reviewers, opinion leaders, influential bloggers, and celebrities like Rain. Our training staff

will work with retail sales personnel at major chains to explain the Casio GLAMOUR


26/28

MOMENT features, benefits, and advantages so that they can explain to customers when they

deal with customers.

February we will start an integrated print/ radio/ Internet campaign targeting professionals

and consumers. The campaign will show Casio GLAMOUR MOMENT can perform well

and emphasize its features. This multimedia campaign will be supported by point-of sale

signage as well as online-only ads and video tours.

March As the multimedia advertising campaign continues, we will add customer sales

promotion such as a contest in which customer post the messages to our Website, showing

the advantages that using this watch. We will also distribute new point-of purchase displays

to support our retailers.

April We will hold a trade sales contest offering prizes for the salesperson and retail

organization that sells the most Casio GLAMOUR MOMENT during the four- week period.

May we plan to roll out a new national advertising campaign this month. The ratio ads will

feature celebrity telling Casio GLAMOUR MOMENT to perform function such as our

product employ solar power system, wearers can enjoy unrestricted use of various watch

functions

June Our radio campaign will add a new voice-over tagline promoting the Casio

GLAMOUR MOMENT as a graduation gift. We will also exhibit at the watch trade show

and provide channel partners with new competitive comparison handouts as sales aid. In

addition, we will tally and analyze the results of customer satisfaction surveys for use in

future promotions and to provide feedback for product and marketing activities,

Budgets

Total first-year sales revenue Casio Company is projected RM8.5 million, withaverage wholesale price of RM340 per unit and variable cost per unit of RM200 for unit sales.


27/28

Casio Company anticipates a first-year loss of RM 0.5 million on the Casio GLAMOUR

MOMENT. Break-even calculations indicate that Casio GLAMOUR MOMENT will

become profitable after the sales volume exceeds 30,000 packets, early in the second year.

Casio Company break-even analysis of Casio GLAMOUR MOMENT assumes per-unit

wholesale revenue of RM340 per unit, variable cost of RM240 per unit, and estimated first-

year fixed costs of RM3 million. Based on these assumptions, the break-even calculation is:

Break-even =

=

= 30,000 units

Financial Projection for 3 Years

Year 1 (25,000 units) Year 2 (30,000 units) Year 3 (50,000 packets)

Total

Cost(RM)

Cost Per Unit

(RM)

Total

Cost(RM)

Cost Per Unit

(RM)

Total Cost

(RM)

Cost Per Unit

(RM)

Sales Revenues 8,500,000 340 10,200,000 340 17,000,000 340

(-)Variable

Costs 6,000,000 240 7,200,000 240 12,000,000 240

Contribution

Margin 2,500,000 100 3,000,000 100 5,000,000 100

(-)Fixed Costs 3,000,000 3,000,000 3,000,000

Net Profits -500,000 0 2,000,000

Controls

We are planning tight control measures to closely monitor quality and customer-service

satisfaction. This will enable us to react very quickly in correcting any problems that may


28/28

occur. To offer products and services that please and impress customers, Casio is committed

to making products that earn high marks in every possible aspect, including safety, of course,

as well as function, design, price, reliability and durability, serviceability, and environmental

conservation. Casio maintains a strong quality assurance system, based on its belief in

Quality First. This system requires all employees to make quality their first concern in

every task they perform, enabling the company to offer products and services that please and

impress customers. The companys commitment to quality supports its corporate growth and

makes social contributions possible, while at the same time winning customers trust and

giving them peace of mind. We need to monitor the monthly sales and expenses by segment

and channels to address fast-moving environmental changes.

References

1. Philip Kotler,2008, Principles of Marketing, 12th edition, Pearson Education Inc.(pg350-357)

2. http://www.stadiumcraze.com/st-co3-new-titanm-l.html3.

http://www.24diamonds.com/gucci-115-pantheon-mens-watch-ya115203_14373

4. http://www.casio-intl.com/products/5. http://world.casio.com/env/pdf/report_2009/CASIO-WEB_P20_P25_E.pdf6. http://business-science.blogspot.com/
http://www.stadiumcraze.com/st-co3-new-titanm-l.htmlhttp://www.24diamonds.com/gucci-115-pantheon-mens-watch-ya115203_14373http://www.casio-intl.com/products/http://world.casio.com/env/pdf/report_2009/CASIO-WEB_P20_P25_E.pdfhttp://business-science.blogspot.com/http://business-science.blogspot.com/http://world.casio.com/env/pdf/report_2009/CASIO-WEB_P20_P25_E.pdfhttp://www.casio-intl.com/products/http://www.24diamonds.com/gucci-115-pantheon-mens-watch-ya115203_14373http://www.stadiumcraze.com/st-co3-new-titanm-l.html

90375597 final marketing report

Documents