edited mktng report

8/9/2019 Edited Mktng Report

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PRINCIPLES OF MARKETING REPORT

I-holoCOMPLETING YOURLIFE!

BY:

Areej Naeem

Anas Zavary

Fatima Burhanuddin


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Contents

Introduction.............................................................................................................................................. 4

New Product Development Process: ......................................................................................................... 4

Idea Generation: ................................................................................................................................... 4

Screening Out The Ideas:...................................................................................................................... 4

Concept Testing: .................................................................................................................................. 4

Marketing Strategy: .............................................................................................................................. 4

Business Analysis:................................................................................................................................ 5

Product Development: .......................................................................................................................... 5

Test Marketing: .................................................................................................................................... 5

Commercialization: .............................................................................................................................. 5

Mission Statement:................................................................................................................................... 5

Branding: ................................................................................................................................................. 5

Micro Environment: ................................................................................................................................. 6

Suppliers: ............................................................................................................................................. 6

Customers: ........................................................................................................................................... 6

Competitors:......................................................................................................................................... 6

Market Intermediaries:.......................................................................................................................... 6

Publics: ................................................................................................................................................ 6

Macro Environment:................................................................................................................................. 6

Demographic Environment: .................................................................................................................. 6

Economic Environment: ....................................................................................................................... 6

Political Environment: .......................................................................................................................... 7

Social Environment: ............................................................................................................................. 7

Technological Environment: ................................................................................................................. 7

Marketing Plan ......................................................................................................................................... 7

Executive Summary:............................................................................................................................. 7

Current Market Situation: ..................................................................................................................... 7

Marketing Concept: .............................................................................................................................. 8

Market Description:.............................................................................................................................. 8

Figure 1a ........................................................................................................................................ 10

Product Review: ................................................................................................................................. 11

Competitive Review: .......................................................................................................................... 11Distribution Review:........................................................................................................................... 12

Swot Analysis: ....................................................................................................................................... 13

Strengths: ........................................................................................................................................... 13

Weaknesses: ....................................................................................................................................... 13

Opportunities:..................................................................................................................................... 13

Threats: .............................................................................................................................................. 14


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Objectives And Issues:........................................................................................................................ 14

First Year Objective: ....................................................................................................................... 14

SecondYear Objective:................................................................................................................... 14

Issues: ................................................................................................................................................ 14

Marketing Strategy: ................................................................................................................................ 15

The Four Marketing Ps: ..................................................................................................................... 15

Product: .......................................................................................................................................... 15

Price:.............................................................................................................................................. 15

Promotions: .................................................................................................................................... 15

Place: ............................................................................................................................................. 15

Positioning: ........................................................................................................................................ 15

Product strategy:................................................................................................................................. 16

Pricing Strategy: ................................................................................................................................. 16

Distribution Strategy:.......................................................................................................................... 16

Marketing Communication Strategy:................................................................................................... 16

Marketing Research:........................................................................................................................... 17

Marketing Organization: ..................................................................................................................... 17

Figure 2a ........................................................................................................................................ 17

Action Programs:................................................................................................................................ 17

January: .......................................................................................................................................... 17

February: ........................................................................................................................................ 17

March:............................................................................................................................................ 18

Budgets: ............................................................................................................................................. 18

Control:.............................................................................................................................................. 18Packaging And Labeling:........................................................................................................................ 18

Conclusion: ............................................................................................................................................ 19


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INTRODUCTIONOurcompany FABLED ABSTRACT is developing a multipurpose cell phone for sa-

tisfying the need ofcompatibility anduser friendliness of the youth and the people be-longing to the business class. This state of the art cell phone uses holographic technology

which gives it a touch of the future and adds greatly to its pulchritude. This cell phone isgoing to be a breakthrough in the cell phone world as it will be introducing a new dimen-

sion in this market in the name of holographic technology which will enable our smartphone to create a 3D image projection which will make cell phone usage a lot of more

interesting. We have gone through an extensive process to devise anddevelop this pio-neering idea, the entire process has been thoroughly mentionedbelow:

NEWPRODUCTDEVELOPMENTPROCESS:

IDEAGENERATION:

The first step that we took for the development process of our product was generatingdifferent ideas. We generated a number of ideas through brain storming andusing the ex-ternal sources like, keeping a track of the competitors offerings andby conducting market

surveys. At the end the ideas that we came up with were:

y A smart phone using holographic technologyy Micro speakers with an extra ordinary voice qualityy A television using a holographic set of technologyy Multi-purpose DVD player

SCREENINGOUTTHEIDEAS:

Afterconsidering all the ideas we decidedupon choosing the holographiccell phone idea.

CONCEPTTESTING:

Afterconducting a survey in the market we concluded that a demand for holographic smartphones couldbe generated. We choose a sample group from the market and interviewed

them regarding ourcellphone idea. We made out that our product idea would encourageprofitable sales and so being a hit in the market. Thus the concept testing was successful.

MARKETING STRATEGY:

Our holographic smart phone is going to have all the useful and entertaining features that a

usercould ask for, like an 8MP camera, a sliding touch pad, an mP3 and video player,wireless internet. Also our smart phone would guarantee a high security from virus and

hacking attacks through a strong licensed Linux based OS. This is not going to be it; oursmart phone is going to be a complete package for the users of today keeping in mind the

phenomenal attributes of our smart phone! About the pricing, aftercareful analysis wehave decided to skim the market with a high price which will be value based. As far as the

distribution strategy is concerned we are going to adopt direct marketing thus the distri-bution channel would have a single level without any intermediaries.


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BUSINESSANALYSIS:We conducted a careful business analysis and windedup that the production of this smart

phone would though cost us a high amount but wouldundoubtedly earn us a great deal ofprofits as well. We have cautiously calculated the cost, both fixed and variable for our

smart phone and after adding a profit margin in it. We have reached to a suitable retail price

for our Holographic Smart Phone which will not only help us cross the break-even pointbut would also produce forus the expected profits.

PRODUCTDEVELOPMENT:

Now we are finally going to give a physical shape to our product concept. It is we who aregoing to produce the product from its memory card to its LCD, from chargers to batteries;

we will be the soul suppliers, manufacturers and retailers of this phenomenal smart phone.

TESTMARKETING:

This stage of the new product development crosses will be eliminated in ourcase due to

cost related issues, also test marketing takes a lot of time which might give ourcompetitors

an advantage overus if our idea leaks out in the market.

COMMERCIALIZATION:

Finally our product is going to be transported from the point of manufacturing to the pointofconsumption. After passing through all the above stages, our product is going to be

full-fledged available in the market for our targetedconsumers.

MISSIONSTATEMENT:The mission statement for our smart phone, I-holo is:

Our Product oriented mission statement is:We presentto the world a new dimension insmart phones using the holographic

means of communication

Our market oriented mission statement is:

Weenabletodays youth to communicate with style

BRANDING:We have created a brand name for our product, I-holo in order to differentiate it from therest of the somewhat similar products. The branding is in the form of a logo. Through

creating a foundation for I-holo, i.e.: its brand name, our main objectives are to: Authenticate ourcredibility Concrete user loyalty Motivate the buyer Connect to our target consumers emotionally Clearly communicate the message To make our target consumers believe that we are the only company in the market to

fulfill their needs in the best possible way

As our product will start facing the day to day competition in the market, ourbrand name


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would help us survive as it is more like a promise of an innovative and quality product forthem.

MICROENVIRONMENT:

SUPPLIERS:

We are our own suppliers as we are creating the product on our own. Hence a change in any

activity we conduct will not affect our marketing strategy in any way.

CUSTOMERS:

Our primary target is the youth and our secondary target is the business sector. Ourcus-

tomers are those who are interested in the cell phone market and the ups anddown that takeplace in this market.

COMPETITORS:

No one is currently selling a cell phone with such features. However, apart from the ho-

lographic projection and slide touch pad feature of this cell phone, other such products areavailable from NOKIA and APPLE.

MARKETINTERMEDIARIES:

There are no intermediaries as we have adopteddirect marketing.

PUBLICS:

Our publics are multiple investing firms and individual investors who predict a bright fu-

ture in this product and in their profit statements due to this product. Furthermore, mediachannels are also included in our publics as they are always interested in new develop-

ments especially regarding technology.

MACROENVIRONMENT:

DEMOGRAPHIC ENVIRONMENT:

The demographics of our targeted market include individuals between the ages of 23 and

35, including both males and females and having monthly income between 40,000 to150,000.

ECONOMICENVIRONMENT:The economy of the country in which we are launching our product is unstable between theconditions of recession andboom. Hence there are a number of individuals who will be

interested in buying our product.


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POLITICALENVIRONMENT:

Government policies do not directly affect us; hence the political environment factordoes

not influence ourcompany and product in any effective way.

SOCIALENVIRONMENT:

Cell phones are always in style and it is currently socially accepted on a massive scale.Hence, such a product will be highly profitable.

TECHNOLOGICALENVIRONMENT:

The required machinery for this product is available in the market except from the holo-graphic feature which will be our own invention and hence it will be our trademark.

MARKETINGPLAN

EXECUTIVESUMMARY:Ourcompany, the FABLED ABSTRACT has prepared a marketing plan for the launch ofour first and exceptional new smart phone, the I-HOLO. For the first time in the history,we are bringing to the world a smart phone using the HOLOGRAPHIC TECHNOL-

OGY, which will allow the projection of a 3D image in the air, which is several times thesize of the projecting device without a projection screen. This phone not only has useful

features but has an enhanced entertainment factor as well. Also, the phone is not just userfriendly but also guarantees a high security as well through a Linux based OP. Since the

I-holo offers all the features that a usercan wish for in a single device thus it reduces theburden of keep multiple gadgets to fulfill the different needs.

Segmentingthe market on the basis of income, the general target for our smart phone is

going to be the elite class of the market, since our smart phone is a specialty productand isgoing to be priced highly to skim the market thus the only the superiorclass can affordI-holo. We have segmented the market further on the basis of age and have decidedupon

our primary and secondary targets. The primary targetsbeing the youth ranging from18-25 years who crave to communicate with style and the secondary targetbeing thecorporate users who look for a multi-functional PDA to fulfill their work related needs.

Our marketing objectives for the first year of our launch is to create the maximumawareness regarding I-holo amongst our targetedconsumers andcapture at least a 2.5-3%

share of the smart phone market.On the other hand ourfinancial objectivefor the first year of our launch is going to be,

selling at least 100,000-150,000 units and not just crossing the breakeven point but gene-

rating a profit as well. Fab

led

ab

stract will not j

ust man

ufactu

re the I-holobu

t willb

e theretailers itself too, through launching its own outlets across Pakistans top 50 posh mar-kets first and then after accomplishing its first year objectives, I-holo will be launched in

the international market as well.

CURRENTMARKETSITUATION:

Our product I-holo is a completely innovative and fresh creation in the cell phone market.

Multipurpose cell phones are very common in todays cell phone market but a cell phone


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with a holographic technology has not yet been createdby any cell phone company.Though the idea has been thought of in the history but no company took a step towards its

creation thus the idea remainedbeing just an idea rather than being an existing product inthe market until now. Not forgetting to mention, Dennis Gabor is considered the Father of

Holography which in todays date is one of the most fascinating technologies. There hadb

een several MajorB

reakthroughs in Holographi

cTe

ch, espe

cially in the EntertainmentIndustry. Holographic Projection Technologies of the Future are moving forward really

fast and soon this science is going to take over the cell phone market. When the idea for

holographiccell phones was created and researchedupon, it was acknowledged that thenew Holographic Projection technologies in cell phones have a market value of 500 million

to 1.5 Billion Dollars in the first 18 months to two years and that wouldbe just the Intro-duction. Since this is a new product in the market, ourcompany would not have to face any

intense competition from any othercell phone companies and the effort to gain a marketshare would not be an extreme one. Although there are cell phones in the market which

have a few similar features to our product but we sure do have a competitive edge overthem which would help us position our product without a high degree difficulty.

MARKETING CONCEPT:

The marketing management philosophy that we have chosen upon for our smart phone is a

blend of two, the PRODUCT CONCEPT and the MARKETING CONCEPT. Wepursued the idea that the consumers will favor the product that offers the most quality,

performance and features, on the condition that the product fulfills all their needs accu-rately. Thus we have devoted our energy to making a smart phone which not just guaran-

tees quality but also a high performance and out of the ordinary features, but at the sametime we tried not to indulge in marketing myopia, we recognized the needs and wants of

the consumers first and then designed our smart phone accordingly. This is the philosophy

that we have followed

for our smart phone so that o

ur targete

dmarket segment remainsfully satisfied and pleased with I-holos attributes.

MARKETDESCRIPTION:

The type of market for ourcomplete package smart phone, I-holo, is going to be the con-

sumer market. Its going to be an exclusive one, since the product is exclusive itself. It isgoing to include consumers as well as business users. Like we mentioned above, that we

have segmented the market on the basis of age and income, in the introduction phase of ourproduct, our specific target market is going to be the youth, I.e.: teenage students whobelieve in fun gadgets denoting a style statement as well, who need a compact gadget to

support all their needs, the major one being entertainment. As the awareness of ourcell

phone will start to grow, we will start targeting thebu

sinessclass as well who

believe incompact gadgets with all the features they need in just one hand heldcell phone. This light

weighted multi-functional unit is going to have a Linux based system thus making it a very

secure, smart, stylish and a useful minicomputer, also providing a 5GB memory card forinformation as well as entertainment storage. Also this gadget not only facilitates quick

communication but also a quick access to the applications through a voice-activated smartsearch system.

Our main target through the life cycle of our product is going to be the Todays youth, who


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crave for gadgets which are not only useful andcompact but are classy as well, which theycan show off to their social circle, hence we are presenting them the I-holo which is a

complete package smart phone. This cell phone would not just be an extremely useful pieceof technology for them but is also elegantly designed and is full of fun features which will

make them fall in love with it!

In view of the fact that I-holo is q

uite inventive, th

us the people to a

dopt it the first wo

uld

be the innovatorcategory of our targeted segment followedby the early adopters, the earlyand late majority and finally the laggards will be the last one to adopt I-holo but they are all

equally important to ourcompany since they all will be contributing to the success of oursmart phone. Table 1A shows the needs of our targetedconsumers and the corresponding

features of I-holo that will fulfill their requirements.


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Targeted segment Customer need Corresponding feature

Business class user

The youth

(teenage students)

Security Quick communication Organized contact book Quick access to applications Driving directions to business

meetings An application which could

schedule and remind them oftheir meetings

Denoting style and exclusive-ness

Performing functions handsfree without bothering tocarry multiple gadgets

Entertainment Security

A strong licensed Linux basedsystem which makes it less vulnerabletohackers and viruses A smart search applicationwhich is voice sensitive as well andalso a speed dial option for quickcommunication A calendar, address book and a Voice memo application whichwould save your appointments, also areminder alarm could be set for im-

portant events. A built in voice sensitive systemwhich could give you the direction toyour destination and provides youwith a map

A classy gadget, with an elegantdesigning to denote the perfectstyle

Voice-activated applications foreasy access

An mp3, a 5GB memory, a 8 megapixel camera with an image editorapplication to add further enter-tainment

A strong security code system onthe phone and a mobile tracker

application as well A call and text blocking option A Wi-Fi option to provide you with

internet access 24/7 A range of modish changeable

cases with different colors andpatterns

FIGURE1A


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PRODUCTREVIEW:

Our excusive cell phone, the I-holo has the following standard features which makes it a

complete package: Uses holographic technology which will allow the projection of a 3D image in the air

that is several times the size of the projecting device without a projection screen.

It has a sliding touch pad which on sliding enables the holographic image projectionfeature of the phone.

A Linux based operating system which enhances the security. A touch sensitive device and a voice-activated smart search application for quick hands

free access, which will also facilitate more natural human-and-computer interaction

and is more feasible than using a keyboard. A speeddial application for a quickcommunication through instant calling and a video

calling option as well. A 64GB memory chip for information and entertainment storage. An Mp3/Mpeg/avi supporting player as well as a radio which can work even without a

headset.

Wireless internet and emailing option and also a Bluetooth application. Instant messaging through text and multimedia messages. A built in digital compass which gives you directions and point you towards your

destination.

Holographic imaging will enable high-resolution views of things. A voice memo application, which will help you record your important events schedule

easily, also an alarm option which would keep reminding you of the important eventsthat you need to attend thus acting like your personal assistant and giving you all the

features of a PDA. An 8 Mega pixel holocam which will click 3D real-time pictures using holographic

applied science and also an image editor which adds further to the entertainment. A beautiful range ofchangeable cases with different colors and patterns. Otherchief features include, mobile tracker, a calendar and a map, a converter and a

translator, a worldclock and a calculator, a TV-out option, audio/video/animations and

games downloading through the internet access. A double power rechargeable lithium-ion battery with a talk time up to 10hrs and stand

by up to 800hrs. The size and weight of the phone being:

Height: 5 inches Width:2.5 inches Depth:0.5 inch Weight:4.5 ounces

COMPETITIVEREVIEW:

The competition in the cell phone market is very intense in todays date, since every other

company is trying to create a gadget with as many useful features as possible. They aretrying to cut down theircosts as well as their prices and trying to bring the latest technology

to theirconsumers in order to win the maximum market share. Though our product is a newinvention in the market and no existing cell phone has a holographic technology, thus we

would not be facing an acute competition. There are some cell phones in the market which


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have features other than the holographic technology that are similar to ourcell phone, thusthese cell phones will be our only competitors. The MAJOR rivals for I-holo include:

1. I-Phoneby apple: though I-Phone does not use a holographic technology but has a lotof other similar features like, an mp4, a camera, a radio, compass, voice memo appli-

cation, audio and video downloading and wireless internet. I-Phone is a gadget which is

qu

ite popular an

ddesire

damong the yo

uth in to

days

date an

dalso has a sta

ble marketshare thus wouldbe our toughest competitor.

2. Nokia: Nokia being the market leader and the corporate class users all time favorite, isalso going to be a key competitor since it has very wide range ofcell phones with avariety ofuseful and entertaining features, also Nokia has introduced a wide series of

useful and fashionable PDAs which adds to the competition further.3. Samsung: Samsung is also showing continuous innovation and has introduced an array

of PDAs, with a lot ofuseful features united in a single hand held gadget. Features likea map, worldclock, mobile tracker, mp3 player, speeddial, calendar, Wi-Fi accessi-

bility, high resolution cameras are now common in Samsung smart phones which meana significant competition for I-holo.

4.

RIM:

a Canad

iancompany, resear

ch in motion has

develope

db

lackb

erry, which is aline of mobile email and smart phone devices. Blackberry is primarily known for its

ability to send and receive Internet e-mails and It commands a 20.8% share of world-wide smart phone sales, making it the second most popular platform after Nokia's

Symbian OS, and is the most popular smart phone among U.S. business users thusbeing a big time competitor for ourcell phone.

Despite of the substantial competition, I-holo will surely be able to capture a share

in the smart phone market since its holographic technology, its packed together

useful and entertaining features, as well as its modish designing gives it a com-

petitive edge over the other phones. Its ability to facilitate quick personal and

business interactions while making it interesting, stylish and fun at the same time

sure makes it different from other smart phones in the market, thus I-holo will surelybe able to wrestle its competitors and win its share in the market.

DISTRIBUTIONREVIEW:

Since our product I-holo is completely an exclusive product thus the distribution

wouldbe elite as well! Adopting the direct marketing strategy, we are going to

launch our own outlets in the top 50 markets in Pakistan. To denote the exclusive-

ness of our product, we are going to create a high-class atmosphere in each and

every outlet so that the image of ourcell phone remains elite in the eyes of our

consumers. Also launching our own outlets would attract our target market to visit

the store and probably purchase the phone as well. Apart from an extraordinaryatmosphere, Hiring highly trained salespersons with striking dealing skills would

further add to the specialty of our outlets. The distribution channel has a single

level, since us, the producers will be the retailers as well.

The launch of our product will be done within Pakistan first, when our products

awareness and local market share would start growing, then we would launch our

phone internationally as well. We have planned to launch our product in the Europe

as well as in the United States, once it gains the required awareness and recognition


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among our target market.

SWOTANALYSIS:I-holo has several dominant strengths which gives it a competitive edge over the othersmart phones, but at the same time has its own weaknesses as well, like a high price and

deficiency in brand awareness. Though the opportunities, like a high demand forcompacthand held smart phones with all the useful and entertaining features welcome I-holo in the

smart phone market to a great deal but on the other hand, the market serves up with a fewthreats to I-holo as well, the threats being a continuous pressure to reduce the high prices

plus the considerable competition from the existing reputable, convenient and low pricesmart phones.

STRENGTHS:

1. 3D holographic imaging: The beauty of this hand held touch screen device is that the3-D Holographic Image not only protects your phone lens and looks extremely cool,

but at the same time it does not make the screen hard to view.2. Security: I-holo uses a Linux-based OP which makes it less vulnerable to attacks by

hackers and viruses plus this smart phone also supports personal security by offering acall and text blocking option. A mobile tracker in our gadget further adds to its safe-

keeping.3. Innovative and eye-catching: I-holo is a completely new product development due to

the holographic technology used in it and is very dazzling due to its elegant designing.

WEAKNESSES:

1. User friendliness: I-holo being a Linux-based OP, also a touch sensitive and partially avoice-activateddevice is less convenient for the corporate class users who look for

gadgets that are easier to use in theirbusy lifestyle.2. Lack ofbrand awareness: Since we have launched a new company and a completely

fresh and ground-breaking product thus people are not aware of it which might elon-gate the introduction phase of our product life cycle and would also mean a high

promotion budget, since our novel product would need to be promoted highly in orderto attain the target markets attentiveness. Also ourcompetitors would have an ad-

vantage overus in this case since they have already created awareness for their product.

OPPORTUNITIES:

1. Increasing demand: There is an increasing demand in the market for smart phones withuseful as well as entertainment features. In todays date people desire for a mul-ti-functional gadget which will reduce theirburden ofcarrying multiple devices thus

this high demand will be an opportunity for the I-holo.2. Demand fordevices using latest technology: The demand for the devices using the up

to date technology keeps boosting continuously thus would help I-holo in being asought after product in the market.


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THREATS:

1. Condensed life cycle: Since the technology keeps advancing and replacing the olderversions of it thus the technological devices usually have a condensed life cycle. Inorder to keep the sales moving we wouldbe introducing newer versions I-holo with

even more highly developed features, thus helping we revive our sales.

2. Price war: The competition among the smart phones in the market wouldcreate a highdegree price war which wouldcontinuously threaten us to reduce our prices in order tofirst capture and then later on maintain our market share.

OBJECTIVESANDISSUES:

We have set our objectives for the first two years after the launch of I-holo, these objectives

are measurable, specific, achievable as well as challenging.

FIRSTYEAROBJECTIVE:During I-holos first year in the market, creating awareness of our smart phone is our prime

goal. Apart from this we have set a target of achieving a 2.5-3% share of the local market

through selling at least 100,000-150,000 sets to our target market.Creating awareness is our principal objective in the first yearbecause it is the first step inthe adoption process when it comes to a new product in the market, this process comprises

of five steps which we would have to take care of: The consumerbecomes aware of the product His interest arises in the product He evaluates it Opts for a trial Finally adopt the productThe adoption of the product though is all that we want for I-holo but the first four steps inthe process lead to the acceptance of the product thus they are very crucial to us. For this

reason we have decidedupon keeping the awareness factor as our prime motive in the firstyear of I-holos launch. One of our targets throughout the life cycle of our product will be

to achieve highercustomer equity rather than a highercustomer life time value.

SECONDYEAROBJECTIVE:

In the second year of our products launch, we plan to introduce I-holo internationally as

well, and thus capturing at least a 6-7% share of the overall smart phone market. Also ouraim wouldbe to develop a stronger relationship with ourconsumers and transform them

into our TRUE FRIENDS who will be beneficial as well as loyal to ourbrand. We also planto introduce another superior version of the I-holo till the end of the second year.

ISSUES:The issues that we are going to face during the launch of I-holo will be the establishment ofourbrand name which is completely a novel one. Since we wouldbe facing a lack ofbrand

awareness thus we have fixed a high promotion budget which has increased in our overallcosts to a great deal. Plus creating our own outlets is a big responsibility, since we would

have to craft an exclusive image of our product in the eyes of our targetedconsumers sothey wouldbe sure about it being elite, worthy and quality product!


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MARKETING STRATEGY:Our marketing strategy for I-holo wouldbe to position it on the basis of product differen-

tiation since it uses a novel technology which hasnt yet been introduced in the market. Ourprime target for I-holo wouldbe the youth belonging to an elite class and ranging from

18-25 years. Once our smart phone becomes popular amongst our primary target, then weare going to go for our secondary target which is going to be the business class like we

mentioned above, because the high income corporate users look for a gadget which ismulti-functional and reduces the need to carry separate devices for all their needs.

THEFOURMARKETINGPS:PRODUCT:

Our product which is a smart phone using a holographic technology has multiple useful

and entertaining features which will not just enhance the style which the youth carry thesedays but also will also be highly instrumental for the corporate man.

PRICE:

We have based our pricing on the value of our smart phone, through which we are going toskim the market and earn probably a lower sales but it will fulfill our projected profit goals.Price skimming will be our strategy in the introduction phase of our product which we

might alter in the growth or the maturity stage according to the market andcompetitionsituation.

PROMOTIONS:

We will be promoting our smart phone heavily through the visual as well as the print me-dia. We are going to use the advertisement and promotional sales tool for the media hype of

our product. We are going to advertise in the newspapers, radio, televisions, billboards andinternet. Furthermore, we will also offer a 10% cash discount for the first hundred sales of

our product.

PLACE:We are going to create our own exclusive outlets in the top fifty markets of Pakistan. Wewill hire highly trained sales persons who will personally deal with every person and en-

hance the customer relationship management of Fabled Abstract.

POSITIONING:

We are positioning ourcell phone on the basis of the benefits that it offers and its distinc-

tive attributes. Since we are using an original and innovative technology which is going tobe introduced in the market for the very first time, thus product differentiation gives us an

edge over our opponents. Plus the holographic imaging adds tons of value to our productand makes it different from the rest of the smart phones, features like voice activation ap-

plication and a sliding touch pad adds further to the distinctiveness of our multi-functionalI-holo.


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PRODUCTSTRATEGY:

Like mentioned in the product review, the I-holo has all the useful and amusing features a

usercould ask for, also we are giving a one year warranty with our smart phone. We will beattempting to strengthen ourbrand name throughout our launch and also will be displaying

ourbrand name and logo on our products packaging. Also like we have mentioned above,

we have planned to launch another highly advanced version of I-holo after its demandstarts to reach the decline stage of the product life cycle.

PRICING STRATEGY:

The retail price perunit for I-holo is going to Rs.65, 000, we are going to follow the priceskimming strategy for our smart phone, I.e.:charging a higher price in the introductory

phase of the product in order to make the maximum profits and as the competition becomesmore concentrated, we will reduce our prices to beat out ourcompetitors and sustain our

market share. Since our product is price-elastic, reducing price would mean a higherde-mand which might help us survive in front of our opponents. We would then attempt to

introduce a new version of I-holo as well using the same strategy of skimming the market

again.

DISTRIBUTIONSTRATEGY:

Like we mentioned above that we the manufacturers will be the retailers as well, thus it isgoing to be a single level distribution channel. We have decided to open our outlets in the

top 50 markets of Pakistan. Our target is to create an elite andconvincing atmosphere inour outlets thus we have decided to give out detailed specification handouts, colored

photos to reveal the holocam results and most importantly the live demonstration of oursmart phones features which will not just attract our targetedconsumers to our outlets but

would surely also act as a convincing factor when it wouldcome to purchasing I-holo. Alsowe are going to adopt business-to-consumer online marketing, through creating our own

website where people can purchase our smart phone online conveniently.

MARKETING COMMUNICATIONSTRATEGY:

In order to communicate with our target market andcreate awareness for our product, we

have selected some of the finest ways to convey our message. We are going to advertise oursmart phone on the most known and huge social networking platform in todays date, used

by both the youth as well as the middle aged people, i.e.: FACEBOOK. This would surelycreate awareness among the peoplebecause face book is so commonly used nowadays, thatpeople will very likely notice I-holo advertisement. Using hoardings throughout the posh

areas andbusy roads of Pakistan wouldbe another way. Also we would advertise ourphone through television, radio and print media. In addition to this, since due to the high

involvement of the consumers in the purchasing process and a high number of somewhatcomparable alternatives, the consumers will be facing a complex buying behavior, hence

we have decided to offer a 10% cash discount on the first 100 sales of I-holo which wouldsurely help us communicate with and encourage our targetedcustomers very well.


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MARKETINGRESEARCH:

Using research, we are going to analyze customers attitude toward ourcompetitors and

their reaction towards our product which will help us in correcting any flaws present in ourproduct. This research will be done by taking feedback through surveys and market tests.

This feedback will help us in perking up anddetermining the efficiency as well as the ef-

fectiveness of our marketing strategies.

MARKETINGORGANIZATION:

Fabled Abstractss chief marketing officer, Faizan Riaz, holds overall responsibility for all

the companys marketing activities. Forcost-cutting reasons, the company will internallyhandle marketing campaigns, rather than relying on external parties. Sales, advertising and

promotions will be handledby Anas, Hassaan and Maria, the managers of the respectivesectors. Fig 2A represents the hierarchy.

FIGURE2A

ACTIONPROGRAMS:

I-holo will be introduced in January. Following are the summaries of our action programs

which we will be using during the first three months of our launch

JANUARY:We will promote our product through advertisements and exhibit our product in electronicshows. We will promote our product in Keynote, a major electronic event held every

year. We will give a 10% discount on our first 100 sales.

FEBRUARY:We will contact BBCs Click Online and ask them to review our product in their pro-

gram. We will start our national tour and promote our product in various central locations

Faizan Riaz

Chief Marketing

Officer

Anas

Sales Manager

Hassaan

Advertising

Manager

Maria

Promotions

Manager


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in Pakistan.

MARCH:

We will arrange a lucky draw in an event organizedby ourcompany for youngsters andbusiness giants. The sole purpose wouldbe awareness, as here in this event, apart from fun

and

games, we willcon

duct a mini seminar to

discu

ss the features of o

ur pro

duct. Thisseminar will be conductedby various celebrities.

BUDGETS:We have predicted a sale of 100,000 units in the first year of our launch. Keeping in mind

the retail price of I-holo which is Rs.65,000 including a variable cost of Rs.40,000, we havecalculated the break-even point which is 160,000 units.

Break-even point= 4,000,000,000/(65,000-40,000)

= 160,000 units

CONTROL:

We have decided to use the total quality management and zero defect technique to ensure

the phenomenal quality of our smart phone throughout. Also we will have exceptionalcustomer services provided at our outlets which will not just satisfy our targetedcustomers

but will also help us cope up with ourcompetitors. Apart from this we will keep a closecheck on the performance of ourcompetitors so that we can prepare our self for future

challenges!

PACKAGINGANDLABELING:The last step in the value creating activities of the VALUE CHAIN is the packaging of

I-holo. We have decided to show some innovation with the packaging as well. Just like oursmart phone projects a 3D image, we are going to make a 3D triangularbox for I-holowhich is going to be very trendy and attractive ! I-holo will be created in 3 dazzling colors:

shining black Sleek mudbrown Striking purpleWith each of the above colors will be the similar colored packaging. Our phenomenal

I-holo, comes along with augmented products like charger, headsets, a USBcable, 3 at-tention-grabbing and trendy changeable cases in different colors and patterns, a detailed

guidance booklet about all the features of the I-holo and how and when to use the differentoptions, a 64GB memory chip for information and entertainment storage, last but not the

least, a sales support service, i.e.: a one year warranty card with stern but highly satisfac-tory repair and exchange policies for the consumers!

As far as the labeling is concerned which is the last step towards the launch of our smartphone, the packagings of I-holo will be labeledbrilliantly with our LOGO which indicates

ourbrand name and the name of ourcompany, FABLED ABSTRACT plus a depiction ofour smart phone projecting a holographic image would also be printed on the packagingsmaking it look more complete.


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CONCLUSION:Fabled abstract is not just expecting I-holo to create a great deal of hype in the market but is

also expecting it to generate ourcompany a great deal of profit since the holographic im-aging technology is absolutely novel and is going to be presented in the market for the very

first time. I-holo is anticipated to bring a revolution in the world of smart phones whichsure will tag ourcompany as the TREND SETTERS of the 21stcentury!

In the end we would like to appreciate the assistance of Sir. Faisal Kazi as he was a guiding

hand through the entire report. His lectures in the course ofPrinciples of Marketing werevery valuable from a practical and theoretical point of view

edited mktng report

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