European Project Semester at ISEP - EPS@ISEP

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mark [2012/04/15 18:38] – team3mark [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
 +3 000 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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