European Project Semester at ISEP - EPS@ISEP

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--- mark [2012/03/29 12:27] – created epsatisep
+++ mark [2012/04/15 18:43] (current) – team3
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+**Marketing Plan**
+After the development of the Smart Object is finished and the production has started
+we have to put it in the market. Our company will be called Smart Interfaces JATH.
+Nowadays in order to sell the product it is not enough to produce it. If we want
+to sell our product we have to concentrate on customer, cost, communication and
+convenience. It is important to concentrate on meeting the needs of our customers.
+Moreover a observation of the market is necessary to recognize changes on the market.
+To do it we need some special tools and analysis.
+ **The market environment analysis**
+In general two types of environment are distinguished: micro and macro. Firstly
+we will analyze the micro environment, which includes the company’s internal environment,
+suppliers, marketing intermediaries, customers, competitions, publics.
+Secondly we will analyze the macro environment.
+**Micro environment analysis**
+Our product will be made of high quality materials and we are trying to get a
+modern and innovative solution. Furthermore it is important to know, that are no
+identical products in the market. In the first phase of the project our supplier is
+ISEP. If the product goes in production we are going to address a mass market.
+When we are introducing the object to the market we will need some suppliers. We
+have to remember, that all companies which are cooperating with us, are going to
+be checked carefully. Important things are the price and quality of resources and
+time of delivery.
+The product will be advertised and sold on the Internet. The distribution will
+be done by a logistic company. The object is small so we can put it into special
+package which prevents damage.
+We can identify the market by:
+• Type of goods traded: market for goods
+• According to geographical: now local in the future could be global
+• According to the criterion of scale or size of transactions: retail but in the
+future could be wholesale
+• According to the character of the merchandise: goods and services
+• According to the degree of satisfaction of needs: consumer
+Competitors
+At the moment the same product that we are offering does not exist on the market.
+But the market for smart electronic devices, that simplify life is huge and rapidly
+growing. However, one competitor for our product can be the 3D mouse. 3D mouse
+devices generally function through ultrasound and provide at least three degrees of
+freedom. On the market there are a lot of companies producing 3D mousses. The
+product is gaining popularity. An Example of such a product can be found here:
+{{http://www.3dconnexion.de/nc/videos.html|}}
+Our product is more innovative, because one can also use voice command and the user can hold it in his/hers hand. It does not have to lie on the table,  but it can.
+The other competitive product is the Wii Remote. It is not our direct competitor,
+but the product uses some same components and it can be used for the same purposes.
+The Wii remote is used for games. It is the primary controller for Nintendo’s
+Wii console. Wii Remote has a motion sensing capability, which allows the user to
+interact with the game and manipulate items on screen via gesture recognition and
+pointing through the use of accelerometer and optical sensor technology. Another
+feature is its expandability through the use of attachments. The attachment bundled
+with the Wii console is the Nunchuk, which complements the Wii Remote by
+providing functions similar to those in gamepad controllers. This is an example of
+the Wii Remote:{{http://www.gameseek.co.uk/images/products/official_nintendo_wii_remote_wii.jpg|}}
+Another product is the typical gamepad. It is a type of game controlled, held in two
+hands, where the fingers (especially thumbs) are used to provide input.{{|http://images.speed-link.de/prodpics/_spl/SL-6555-SBK-A/large/sl-6555-sbk-a_rgb_004.jpg}}
+However, these two products can be used only for gaming. So our product can be
+distinguished from the exiting product, because it gives more possibilities and can
+be used for a professional purpose and also for fun.
+ **Macro environment analysis**
+Macro environment includes demographic, economic, natural, technological, political,
+and cultural forces.
+Demographic forces result from population age structure, sex structure, etc. Our
+product is addressed particularly to professionals and younger people (between 17
+to 35 years) , because they follow the course of time more. For example young
+people play games which need a certain freedom of movement that comes from our
+product. Professionals,who work a lot with computers need a product which gives
+more possibilities than the ordinary mouse. These people can work for example in
+design field, as engineers or architects.
+Economic forces stem from the overall economic condition. Nowadays in many countries
+there is the economic recession. In this phase of development we are not 100%
+sure how much our product will cost. However we would like that the price is not
+higher than the price for a professional 3D mouse, which is between 100 € to 400 €.
+But we also do not want to sacrifice quality.
+Technological forces are arising from the level of technological development. Currently
+technological progress is huge. It is a threat, sell new version and earn money,
+but it can be threats because if the company does not track the development of competition,
+market it is easy to be left behind.
+Political forces: In our opinion the EU is a good place to produce, buy and sell
+electronic products, because the EU has similar standards for production, quality
+and sales of products and services.
+Cultural forces result from the prevailing fashion, lifestyle or habits and culture prevailing
+in the area. Nowadays everyone has at least one computer, mobile phone or
+iPad. Our product can cooperate with any of these devices.
+To summarize the environmental analysis we did a SWOT analysis. In our case
+we will concerted on our company which is our team and our product which is the
+Smart Object.
+The following table shows the SWOT analyses:
+^**Strengths**^ **Weaknesses**^
+|•ability to think logically| • problem with communication |
+|• use new technology| • lack competitive edge|
+|• well-equipped laboratories|• inexperience|
+|• quality of product|• lack of a position in the market|
+|• own sales network|• only advertising on the Internet|
+|• sales by Internet (7days a week, 24h per day)|• small financial resources|
+|• possibility of selling the product around the world |• instability of the production line|
+|• good quality of materials used in production |• need to build a positive image|
+|• modern solutions|• difficulty with the first customers|
+|• functionality of the product produced |• short product life cycle|
+|• human potential|
+|• average price of product |
+|• possible to adapt the|
+|**Opportunitiess**| **Threats**|
+|• patronage of ISEP|• unemployment|
+|• opportunity to work with a qualified people|• low income of society|
+|• ISEP-s good reputation|• rapid development of technology|
+|• demand for such products|• increasing competition in the market|
+|• EU membership|• strong position of technology leaders|
+|• common currency in the EU|• existence substitute product on the market|
+|• absorbent, growing market|• customer loyalty relative to our competitors|
+**Market segmentation**
+The next step in the marketing procedure is to choose the market segment. This
+is important because we have to know the needs of our customers to meet them.
+Market segmentation is to make a distribution of the market into a relatively homogeneous
+group of consumers, because of the similarities of characteristics reveal
+a similar demand. Knowing the target segment will help us to prepare a product
+that meets the needs of our clients and helps us to obtain advantage in the market.
+We chose two segments for our product. The first one is people who are working
+with engineering programs meant for drawing. They are designers, architects or
+engineers. They spend a lot of their time using computer to draw sketches, diagrams,
+plans and models. Our product can facilitate the implementation of these
+activities. We are particularly interested in this segment. The other target group
+can be young people (17-35 years) who use their computers or mobile phones to play
+games. Our product gives them freedom of movement. Moreover young people like
+modern things and technical innovations.
+**Objectives:**
+• meet customer needs – satisfied customers 90%
+• achieve operational excellence in the internal processes of marketing, supplier,
+product development, logistics
+• make that brand recognizable about 30% in the end of year 2013
+• occupy 20% of the market by the end of 2012
+• by higher sales reduce the price of the product about 10% when our sales rise
+to 20 000 pieces
+• expand product lines (new version of product) after first year on market
+**Basic marketing strategy**
+Marketing strategy is actions and producing plan, the sales of the product and dealing
+with problems. The prototype is product for the ISEP, but the product can
+be sold in open market. Our Smart Object is addressed to young people and older
+workers as designers, architects and engineers. We are going to sell our product on
+the Internet, because this distribution way is cheap and we are able the a address a
+big market. We do not have to rent space in the shop. Our offer will be in website,
+we want to generate a bookmark with the product order form. Moreover on our
+website we would like to place a description of the product along with photos, video
+illustrating the use of the product. The website will be in Portuguese, English and
+German language. We will pay for position in Google. We are thinking about place
+to advertising on complementary products for example: PC, drawing programs, etc.
+That will be a source of additional earnings. If we have to think about distribution,
+we use companies in the fast delivery of mail, shipments of goods and advertising.
+The object is small so we can put it to special package which prevents damage. If
+our product will be well received by users of ISEP, we would like to sell it on a
+broader market. If there is big demand for our product we can afford to cut prices.
+When it comes to promotion we will do posters and some leaflets. In the future we
+are thinking about two types of advertising. First we will address to young people
+and the other to workers. Advertising for young people should be more modern and
+we can do some animations, 3D effects, etc. advertising for older people should be
+more professional and factual.
+If we think about the long-term strategy we would like to develop a product line.
+For example we can develop a product for professionals with very precise sensors
+and a support for many engineering software. On the other hand we can develop
+a cheaper product for the gaming market. Another aspect is the aesthetics of the
+product. It is possible to extend the color variations of the product, change shape
+or do our product smaller to better fit a woman’s hand and to meet the need of
+young consumers. We extend our offer also for various types of connection to the
+computer object, it need not be only Bluetooth, but we can use WiFi or ZigBee. A
+second option might be installing a larger battery that allows for longer use of the
+product, but this solution might make the object bigger so that the battery would
+fit inside of it.
+**Marketing MIX**
+Marketing mix is a business tool used for marketing products. It is composed of
+four Ps/Cs .
+• Product / Customer
+• Price / Cost
+• Promotion / Communication
+• Place / Convenience
+Ad1. Product / customer
+One can use the SO as an input device for CAD-programs. By using the device
+one can turn the model (with the sensor data) in the program 3D space, zoom in
+and out (with touch pad) and use some voice commands (microphone). With the
+acceleration data the program decides if the SO is held in hand or lies on the table.
+The wireless connection is achieved via Bluetooth.
+Ad2. Price / cost
+We do not know yet how much our product will cost, but the price includes: cost
+of materials, cost of packaging, distribution costs, advertising costs and labor costs.
+But we know that we have to remember the fact that the price can not be too high
+because no one will buy the product. If we will have production lines we will buy
+materials in bulk so price of material will be lower. Advertising costs will be spread
+over more units so that the price of the product in mass production will be lower.
+As for the price of the product, we can give only the costs incurred for materials
+and it is around 300 € for the prototype.
+In terms of the method of payment available are:
+• Prepayment
+• Transfer
+• Check
+• Credit Card and Online Transfer
+The payment will be facilitated to customer preference. Furthermore we want to
+apply some discounts for the customers who purchase 5 units of our product we offer
+a discount of 5%. The customers who purchase more than 10 units of our product
+we offer a discount of 10%.
+Ad3. Promotion / communication
+Promotion is various types of advertising the product. Discovery in the clients
+wish to own the product and encourage the customer to buy it. Moreover it is
+communication with client. We would like to in this phase of project do some poster
+and leaflet. We are thinking about some slogans:
+• Feel the corner
+• Catch the corner
+• touch the corner
+• Feel the motion
+• touch the motion
+• It’s the smart thing
+• See what you keep in mind
+• Let’s make things better/rotate/easier
+• Easy as XXX
+• Control your power/motion of mind
+When we generate a web page we are going to put a description of the product
+there along with photos, videos illustrating the use of the product. The web page
+will be available in Portuguese, English and German language . We will pay for
+position in Google, because for the clients it will be easier to find us. We want to
+design two types of it: for people playing games and for professionals.First one can
+be modern and less official. Second one should be more professional and factual.
+If ISEP agrees we could put a link to our offer at ISEPs web page. Moreover we
+will have opportunities to present our Smart Object for clients in events organized
+by ISEP that will be cheap promotion addressed to the large number of consumers.
+Collaboration with ISEP gains the trust of customers thanks to their good opinion
+of ISEP. To attract the attention of customers and encourage them to purchase our
+product we want to send our product to reporters working in specialist / professional
+magazines. These reporters can test our product and write an objective view about
+it. We would like to send our product to four the biggest professional magazines.
+The readers will have independent opinion about the product. Good opinions in
+these magazines are the best publicity.
+For younger people we can generate a profile on Facebook. Nowadays everyone has
+Facebook and get a lot of information from this page. There we can put information
+about our product, some simulation, prices and promotion. Users can share their
+opinion between then.
+Ad4. Place convenience
+Place is a really important thing. If you have a shop near the main street you have
+more clients. But currently a lot of people use online shops in the Internet. We
+want to sell our product in the Internet. It is better because we do not have to
+pay rent for the shop. It is more convenient for the client because he/she can do
+his/her shopping seven days a week, twenty four hours a day without leaving home.
+To distribute our product we use outsourcing, it is a cheaper alternative for us than
+creating our own department, at least at this stage. We want to sign a contract
+with a company that shipments drop distribution. Moreover we need some special
+packages to carry the product. This package should prevent damage. In our opinion
+this solution is convenient for client. They send to us their order and after five days
+they have the product in their house. This is a good solution, because it is cheap.
+But in the first phase of the product life no one knows it a better solution would be
+to place it in the store. The client can see the product and buy it in chain stores.
+After signing the contract because our product is in every chain store.
+**Action program**
+We will sale the Smart Object in stores with multimedia devices and in the internet.
+On the first phase of promotion we are going to do some posters and leaflets
+addressed to all users from ISEP. In this time we are going to generate a web page.
+Moreover on our website we would like to place a description of the product along
+with photos, videos illustrating the use of the product. After that we want to do
+more posters, leaflets and advertising in web pages addressed to the two segments
+we have already presented. Advertising for young people should be more modern
+and we can use some animations and 3D effects. Advertising for engineers should
+be more professional and factual.
+To promotion we want use also professional magazines. For an example:
+• PCWorld: {{http://www.pcworld.com/|}}
+• PCPro: {{http://www.pcpro.co.uk/|}}
+• Blueprint Magazin: {{http://www.blueprintmagazine.co.uk/|}}
+• DesignEngenieering: {{http://www.canadianmanufacturing.com/design-engineering|}}
+We will offer the magazines a free exemplar of the product to test it and to write
+an article about it. Another way to promote the product can be Facebook. If our
+promotion will be effective we can get a goals (occupy 20% of the market by the end
+of 2012, by higher sales reduce the price of the product about 10% when our sales rise
+to 20 000 pieces, make that brand recognizable about 30% in the end of year 2013).
+All time we have to observe situations on the market and we have to be flexible
+to adapt to customer requirements. If we do that we can satisfy our customers.
+We have to pay particular attention to the objectives set. Operational excellence
+in internal processes, marketing, supply, product development and logistics can be
+achieved through appropriate management of resources. In the next year we would
+like expand product lines (new version of product) that will be possible if we sell
+000 products. The last one but not the least is to make that brand recognizable
+about 30% in the end of year 2013. It can happen if we will have good cooperation
+with publicity and our client will be satisfied with the use of the product.
+**Budget**
+To well manage the project it is necessary to have permanent control over the costs
+incurred. Everyone remembers about cost of materials and employment costs but
+usually we forget to think about marketing costs. This cost include: advertising,
+leaflets, posters, websites, etc.
+The estimated annual costs on our marketing plan might be:
+• Cost of posters: 100€ per month /1200€ per year
+• Cost of leaflets: 100€ per month /1200€ per year
+• Cost of the web-site: 450€ (one-time cost)
+• Cost of position in Google: about 35€ per month /420€ per year
+• Cost of advertising in media: about 120€ per month /1440 per year
+**Control**
+To control, if our marketing strategy is successful, we have to observe all time the
+micro and macro environment. It is important to study the strategies of our competitors,
+analyses their product, promotion and clients. Otherwise we will not follow
+the changes and we will be left behind. We are also planning to look at customer
+needs and adapt to changes, keep customers and attract new. We should all the time
+look at offers for the materials because in the market new businesses can develop
+and they might have more favorable contracts. Good solution is to change your
+ad at least every six months to attract customers’ attention. Otherwise it becomes
+monotonous and not effective. Another important thing is to monitor changes in
+macro environment. We have to be up to date with law and economical situation in
+Portugal and around the world. Of course the most important thing in our case is
+technological forces, because the technological development in these field is very fast.
+We must be up to date and continuously improve the product because otherwise it
+will be obsolete soon. Also we should follow fashion, because one of the segments is
+young people, and they like to be fashionable.
+Moreover we have to have control on our objectives. This control will consist in
+comparing the present state of theoretical assumptions. To have a good control the
+situation we are going to prepared quarterly reports. Then we compare the results
+with previous ones, and the strategy plan and draw conclusions. After that we
+should do a plan for the next quarter and try realizing them.
+**Conclusion**
+We did a market analysis which includes micro and macro environment. After
+that we choose two segments for our product. First one is people who work with
+engineering programs that are meant for drawing. They are designers, architects
+and engineers. They spend a lot of their time using computers to draw sketches,
+diagrams, plans, models. Our product can facilitate the implementation of these
+activities. The other target group can be young people between 17 to 35 years who
+use their computers or mobile phones to play games. In our marketing plan we
+adapt our promotion to these segments. We set up goals and prepare an action and
+control plan, which helps us to achieve our objectives.

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