Product Launch Project by Imtiaz

8/13/2019 Product Launch Project by Imtiaz

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Marketing Management 2011

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Marketing Management

Submitted to:

Mr. UMER MALIK

Submitted by:

H M IMTIAZ

ASMA TARIQ

SYEDA MALAKA ZAHRA

UMT

Table of contents






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Executive SummaryCalifon telephones have revolutionized the coounications arena, redefining how we perceivevoice communications, Traditionally, Califon phones remained out of the hands of most

consumers due to their high cost. As a result, cell phone carriers have invested time andresources into finding ways to give the systems higher capacity and thus lower cost. Cell systemsare benefiting from this research and starting to develop into large-scale consumer products.Today, Califone phones are truly consumer electronics devices with over 59million subscribers.The nokia bowl and QUALCOMM stadium are further evidence of the idea that cell phones areconsumer electronics devices. Cell phones have ceased to be an exclusive status symbol of high- powered lawyers and are now in the hands of millions of consumers.In order to achieve this goal, garbles Califone phones critical success factors will be to identifyemerging trends and integrate them into our company operations, respond quickly to technologychanges/be there early, provide high-quality services, invest time and money in marketing andadvertising, expand into specialty markets, and stay ahead of the technology curve.

Brand management




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A new product launch

Califone mobile

Company introduction

Califone private limited start in 2010 to provide a new mobile hand set for Lahore consumers

and surrounding areas. Miss Sameera who is working as chief executive officer of the company.

Chief executive officer (CEO)

CEO stands for Chief Executive Officer, and is often the title of a person who holds the highest position in a company or on a board. A related title is president, which may be used in placeof CEO. The title of president of a company was commonly used for years, but in the democraticsense, the people choose a president. In the sense of a company, the workers of the company inmost cases do not choose a president, so CEO makes more sense since companies frequently arenot run on democratic principles.

General Manager

A General Manager has broad, overall responsibility for a business or organization. Whereas amanager may be responsible for one functional area, the General Manager is responsible for allareas.General Managers manage through subordinate manager. However, a General Managermay have individuals reporting to him/her who are not managers. A General Manager has the power to hire, fire, or promote employees. A General Manager is responsible for higher level planning than a manager. A General Manager is often responsible for the overall strategic planning and direction of the company or organization and leaves the day-to-day management ofthe various functions to the managers.

Human Resource Management

Human resources are the people that work for an organization, and Human Resource

Management is concerned with how these people are managed. However, the term HumanResource Management (HRM) has come to mean more than this because people are differentfrom the other resources that work for an organization. People have thoughts and feelings,aspirations and needs. The term HRM has thus come to refer to an approach, which takes into

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account both:

1.the needs of the organization2.the needs of its people.

Training and development

Different individuals have their own needs and aspirations. HRM therefore involves finding outabout the needs and aspirations of individual employees, for example through the appraisal process and then creating the opportunities within the organization (e.g. through jobenlargement) and outside the organization (e.g. through taking up educational opportunities atlocal colleges/universities) for employees to improve themselves. HRM therefore relates to everyaspect of the way in which the organization interacts with its people, e.g. by providing trainingand development opportunities, appraisal to find out about individual needs, training anddevelopment needs analysis, etc.

Training - opportunities and courses for individuals to develop skills, knowledge and attitudesthat help the organization to achieve its objectives. Development - the provision of opportunitiesand courses for individuals to develop skills, knowledge and attitudes that help themselves toachieve personal objectives. Training and development needs analysis - an analysis of theopportunities and experiences that are required for individuals to train and develop in order tomeet organizational and personal objectives. A training and development plan can then becreated to set out how these needs can be addressed in practical steps.

Operation manager

One of the keys to success with any business is to have a good business operations manager. Ofcourse, in a small business the owner and business operations manager may be one and the same person, but the principles are still the same. The business, regardless of its size, must be runefficiently and have every aspect of the operation coordinated. This includes the overseeing andmanaging of employees’ and maintaining and controlling inventory in the case of a business thatsell products.

A good business operations manager is also usually responsible for keeping the customers happy by dealing with customer complaints. All of this requires continuous on the training no matterhow much formal schooling has taken place. It is also usually helpful to get expert advice andthis can be obtained in a variety of ways. There are courses offered by many companies to helptrain a new business operations manager or to bring an existing one up on new techniques andinnovations.

There is good training available from many sources the internet to help a business operationsmanager keep abreast of important developments. The important thing is to remember that businesses products and services are always changing and it’s important not to fall behind ineither marketing or development. It is very important for a business operations manager to keep

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up with all of the laws and regulations that may impact the business such as employment relatedlaws and ordinances. This includes everything that is adopted on the federal, state, or local levelthat may day-today operations. Again, the internet can be a good source for this information.

Financial manager

Nature of work

Employment

Job outlook

Projections

Earnings

Wages

Related occupations

Sources of additional information

Almost every firm, government agency, and other type of organization employ one or morefinancial managers. Financial managers oversee the preparation of financial reports, directinvestment activities, and implement cash management strategies. Managers also developstrategies and implement the long-term goals of their organization.

Vision

Our company vision to attract all of generation and to set a model in the mobile phonemanufacturing industry through ideal for small to medium size rooms. Lightweight and fully portable, this fully digital boom box allows you to record and play music or speech. Great formusic recording and playback, or close-range speech recording and review. Remote controlincluded.

Keys to success

Our company keys to success will include:

1. provide excellent customer service2. grow and maintain a referral network of customers3. respond rapidly to customer problems with product or plan






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The market potential is huge for our products, evidenced by what appears to be the unstoppablegrowth of the telecom industry. Currently, the telecom industry is among the strongest growthindustries and is responsible for huge gains in the capital markets. Future growth of themarket/products is projected in the following areas:

Text messages between friends (in Japan this big). Users can send regular Short-Message Service(SMS) or email on their phones. Email is of course limited to small file sizes, but many of the phones allow for English characters to be sent. Each provider also allows special characters to besent, such as an array of happy and sad faces, small animated images, animals, people, hearts,etc. When special characters are not available, people often use a specialized set of faces to showemotion. Email can also be sent between different provider phones, but many of the specialcharacters are lost, hence users may try to keep a circle of friends on the same provider to receivethe special characters. Email, of course, may be sent from computers as well, but files are oftenstripped of headers and attachments when received on cell phones.

One of the recent popular additions to many of the Japanese and Korean phone models is a CCDCamera that is mounted either on the outside of the clamshell or on the clamshell hinge. The

camera lens is slightly smaller than a dime and takes 4x4 cm pictures to display on the phone'sscreen or to send to others. Not only can users take pictures, they can take video clips as well.Most phones take between 5-15 seconds of footage due to memory limitations, but they can sendstreaming video. Many of the advertisements for camera phones show people taking to eachother and watching each other on the screen (both holding the phone and camera at arm's lengthand using a hands-free microphone and earpiece). The camera also has a couple of neataccessories including an external flash that pops into an accessory port and a miniature printerthat will print out pictures.

Our company will try to take advantage of these developments and serve its customers in allthese new trends and developments.

Market Segmentation:

Garbles Cellular Phones, Inc. will focus on five customer groups, bearing in mind that it is quitecustomary today to have more than one cell phone per family:

Children in the age group of 10-17 years old Students General public Professionals Service organizations and companies that need to be in constant communication with their

employees.




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Market Analysis:

Year 1

Potential

Customers

Growth

Children 10-

17 years old

3% 90,000

Students 2% 50,000

Professionals 2% 40,000

General

Public

2% 250,000

Operating

Service

Companies

4% 40,000

Other 1% 30,000

Total 2.29% 500,000

Industry Analysis:

The market is dominated today by three large companies:

T-Mobile Wireless Owned by a subsidiary of Deutsche Telekom since May 31, 2001. Revenues: Exceeding $13.6 billion in 2001. Wireless Phone Service Subscribers: Cellular voice, messaging and high-speed wireless data

services to more than 8 million customers. Cellular Phone Service and Technology: T-Mobile Wireless operates the largest all digital,

wireless networks based exclusively on GSM (Global System for Mobile Communications)




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technology. GSM is the most widely used digital standard worldwide, accounting for morethan 70 percent of the total digital wireless market.

Cingular Wireless

Cingular wireless is the second largest wireless company in the U.S. A leader in mobile voiceand data communications, Cingular is a wireless company determined to promote the individualto a new level. Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of

SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Headquarters in Atlanta, Georgia. SBCowns 60 percent of the company and BellSouth owns 40 percent, based on the value of theassets both contributed to the venture.

Revenue on the cellular service in Year 2002 was more than $14.7 billion. Cellular Phone Service Subscribers: more than 22 million voice and data customers across

the U.S.A. Cellular Phone Service and Technology: A leader in mobile voice and data communications,

Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that letscustomers keep their unused monthly minutes. Cingular provides cellular/PCS service in 43of the top 50 markets nationwide, and provides corporate e-mail and other advanced dataservices through its GPRS and Mobitex packet data networks

Nextel Communications Nextel communication based in Reston, VA, is a leading provider of fully integrated, wirelesscommunications services on the largest guaranteed, all-digital, wireless network in the country. Ownership: Nextel Wireless is traded on the NASDAQ National Market under the symbol

NXTL. Nextel Partners is a separate company traded on the NASDAQ National Market. Revenue on the cellular service $8.7 billion (2002). Cellular Phone Service Subscribers: 10.61 million (Q4 2002). Cellular Phone Service and Technology: Nextel uses a packet-based platform, the integrated

Digital Enhanced Network (iDEN™) technology, developed by Motorola. The Nextel 4-in-1 service — Nextel Digital Cellular, Direct Connects, Nextel Mobile Messaging, and NextelOnline® — covers thousands of communities across the United States. Nextel and NextelPartners, Inc., currently serve 197 of the top 200 U.S. markets.

Garbles Cellular Phones is aiming to gather a share of the market from these three.

Competition and Buying Patterns

Brand names are of little, if any, importance. The key to the buying decision on the part of theconsumer is the salesman and the cell phone being in front of them. As has been pointed out in

the Competitive Analysis section there are other sellers with similar brand names as thosesupplied by Garbles Cellular Phones, Inc. which may even be less expensive. It is essential thatthe salesman point out the salient features and selling points favoring our products. Mostimportantly, our products must be available in the retail outlet, since whatever products ourstore carries are the ones that are going to be sold.

The need to attract, acquires, leverage, and retain customer’s remains a primary concern to business. Revenue growth through customer acquisition and retention is as important arequirement in e-commerce as it is in other business. Customers, especially in the Western




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business culture, count speed of service as a key reason why they do business with a company.They resent delays and hate waiting for service. In the United States, almost 80% of the grossdomestic product (GDP) is generated through different kinds of services, and speed of service nolonger distinguishes an enterprise as providing superior value. Customers generally are notthrilled if they receive good service, but they are highly dissatisfied if they do not. Garbles

Cellular will provide the necessary framework to cope with these demands by cutting the waitingtime for a service.

Customers also want consistent, reliable, and easy-to-use service. As the speed of serviceincreases, customer expectations grow, making friendly, easy, and solution-oriented customerservice an important business trend.

Reflective shoppers get some support from e-commerce as well. They like to investigate products precisely and consciously. However, when browsing costs a lot because of on-linecharges, they do less of it. Consequently, they do not get a holistic view of the available options,and their expectations often are not met. Reference-spending customers do not let themselves behurried or forced. They use alternative offline sources to get information. They refuse aggressive

marketing, which is accepted in Western e-commerce.

Soon, shoppers will simply wave their cell phone over the item they want and the charge willautomatically appear on their cell phone bill. It’s happening in some cities overseas already. And

right now, MasterCard and Motorola are testing out a similar program here in the States.Retailers have registers that will take the signal from the cell phone, and the purchase isautomatically converted to a MasterCard charge. Buyers don’t have to sign anything. The scary

part is what could happen when people lose their cell phones or have them stolen. There are lotsof technical and legal issues to work out here, but paying wirelessly is going to gain momentumquickly.

Garbles Cellular is planning to take advantage of these trends of buying patterns. We shall also

be very quick in establishing our own website to take advantage of E-trade.

Target Market Segment Strategy

The market for cellular phones and their accessories is very fragmented, crowded andcompetitive. Among these, there are only a few large local firms that serve the entire city of Nice burg and its surroundings. The remainder is small firms that sell from kiosks in the surroundingmalls. Garbles Cellular Phones current niche in its location, variety of products and expertise inserving the public will assure the projected sales.

We expect to take full advantage of the trends described in the Market Analysis above, and try to penetrate the market with new innovations and gadgets — mainly with the younger generation,

using advertisements and demonstrations. We shall also try to lure independent small sellers to join our effort.

Strategy and Implementation Summary

Garbles Cellular Phones will use a strategy of total market service. Assumptions:

1. Every person is a potential customer and all our potential markets will experience growth.




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2. Marketing to one segment of the population will lead to an expansion in overall marketgrowth.

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

Competitive Edge

The Seamed Communication's competitive edge will be:

Location:Locating the company in a suburb of nice burg, Home state enables the company to cover a largeand rapidly developing customer populace.

Customer Service:Miss Sameera Garbles, owner and CEO of Garbles Califone Inc., has been the CEO ofthe Garbles Califone Phones Ltd. in the East Atlantic Island Archipelago for many years past,and accumulated a vast knowledge and experience in the Califone phone market, with a special

expertise in GSM phones. He is very familiar with his target customer base. He has an excellentreputation for customer service.E-Commerce:The company will make an effort to enhance its sales through a serious and advantageouswebsite in order to attract customers that are reluctant to do business with large companies.

Marketing Strategy

Short-term marketing strategies are those that bring will bring us a temporary boost in traffic.Although these techniques are very important to our over-all plan, they are only a temporarytraffic source and must not be solely relied upon. Short-term marketing strategies include:

Purchasing Advertising Bulletin Boards Search Engines

Long-term marketing strategies are those that will bring us a steady stream of targeted trafficover time. These strategies will continue to produce results even years down the road. Long-termmarketing strategies include:

Opt-in Lists Freebies Content

By creating and implementing a balanced marketing strategy, using both short-term and long-

term strategies, Garbles Cellular will drive a steady stream of targeted traffic to our website.

Using this simple formula when creating our Internet marketing strategy and excelling at allthree, we hope to guarantee our success.

Our short-term marketing strategy will focus heavily on sales promotion, niche positioning in themarket and customer service with loyalty and retention in sales.

Our promotions will always stay in tune with our company objectives and mission statement.




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Sales Strategy

Constructing our Sales Strategy we shall follow the following steps:

Sales Success Requires Planning We shall formulate our sales strategy and tactics to achieve our sales success.

Analyze Our Potential We shall step through a structured process that will prepare us for the development of our salesstrategy.Strategize Around Strengths The description of our sales activity will be analyzed producing a report that reveals factorsimpacting our sales potential.

Develop Our Tactics

We shall receive guidance to develop a comprehensive tactical plan to achieve our success.

Measure Our Success We shall constantly develop key measurements that mark the progress of financial estimates thatguide our growth.Employ an Action Plan for Success We shall provide our sales force a clear tactical plan that is also aligned with management'sstrategic objectives.

The sales strategy of Garbles Califone Phones is simple. The key to customer satisfaction ishaving the product and services that meet the customer's needs. A crucial part of that is to alsohave knowledgeable employees to help customers quickly find what they want.

Sales Forecast

Sales forecast displayed here is very conservative — although we aim very high, we decided to

show a very slow growth and revise the plan on a yearly basis. As a rule we expect to expand thevolume much more rapidly.




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Sales Forecast

Year 1

Sales

Califone Phones $138,000Cellular Phones Accessories $126,000

Fixed Wireless Phones $46,500

Other Services $46,500

Total Sales $357,000

Direct Cost of Sales Year 1

Califone Phones $31,650

Califone Phones Accessories $30,450

Fixed Wireless Phones $11,700

Other Services $11,710Subtotal Direct Cost of Sales $85,510

Milestones

The Milestones table hereunder is destined to be a working plan for the formation of the neworganization, including legal negotiations, hiring of personnel, rental of the facility, building ofinitial inventory, beginning of marketing and start of physical operation.

The team to execute the chores will have to follow up on the timetable and make sure thateverything falls in place — to ensure smooth start of sales and success of the organization.

Milestones

Milestone Start Date End Date Budget Manager Department

Preview of 1/1/2010 1/15/2010 CEO Department




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Business

Plan by

Investor

$1,000

Concluding

Legal

Matters

1/10/2010 2/10/2010 $4,000 Owner Department

Hiring of

Operators

2/1/2010 3/1/2010 $500 CEO Department

Conclusion

of Rentals

1/15/2010 2/15/2010 $2,000 Owner Department

Preparation

of Website

1/15/2010 3/1/2010 $2,500 Programmer Department

Acquiring

Initial

Inventory

2/15/2010 3/15/2010 $31,000 StorePersonnel

Department

Start of

Marketing

3/1/2010 4/1/2010 $0 Marketing

Mgr.

Department

Start of

Operation

4/1/2010 4/10/2010 $2,000 All Department

Totals $43,000

Management Summary

The management of Garbles Califone Phones, Inc. is made up of the owner, a Marketingmanager and three other members who will be hired locally and will be added: a Programmer,and two store attendants with one serving at the beginning as secretary.

Personnel Plan

The Garbles Califone Phones' store will operate virtually 24 hours a day 7 days a week.Although the store opening hours will be officially 10:00 a.m. to 6:00 p.m., it is clear that due toour Internet operation the customer support will be a non-stop one. The personnel plan, asdetailed in the following table, has been developed to support these hours.

Financial Plan

It is assumed that the owner's private resources will be sufficient to finance any monthly cash-

flow shortage. However, it would be advisable to establish a bank relationship as soon as possible. Sales could very well increase at a much sharper rate than assumed in theseconservative projections. Sharper sales will result in a greater need for funds in support ofinventory and receivables. An over-draft line of credit with the bank will be an excellent cushionto fall back on.




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This is considered a very good time to start a new business. The economy is beginning itstrek up, and consumer spending is up. The Commerce Department reported, "Consumers hadincreased their spending, the largest advance in nine months."

A shorter learning curve will be brought to the business by the owner due to his extensive

background and in-depth market knowledge. He has a clear understanding of the need to managecosts and forecast future needs so that the business is not "broadsided" by the unexpected.

One other component on which the financial plan is based is wise purchases. Finding the right product, at the right price will enable the business to meet planned margins and maintaininventory at an attractive level with a high turn rate.

Important Assumptions

As a general rule our company will not sell on credit. However for very special cases we mightoffer short-term credit against valid assurances. We shall accept cash and checks, Visa,MasterCard, Discover and American Express, and PayPal on the Internet. All sales paid viacredit cards will be deposited in our business checking account within 48 hours.

Break-even Analysis

Our break-even analysis is summarized by the following chart and table.

Break-even Analysis

Monthly Revenue Break-even $17,916

Assumptions:




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Average Percent Variable Cost 24%

Estimated Monthly Fixed Cost $13,625

Projected Profit and Loss

There are many factors to include when determining a projected profit and loss statement; theseare included in the following table.

Net Worth $138,816 $253,742 $449,392

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on theStandard Industrial Classification (SIC) code 5731.9902, Consumer electronic equipment, NEC,

are shown for comparison.

Inventory Turnover 8.67 12.65 12.54

Accounts Payable Turnover 9.78 12.17 12.17




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Payment Days 27 26 25

Total Asset Turnover 2.31 1.82 1.48

Debt Ratios

Debt to Net Worth 0.11 0.08 0.07

Current Liab. To Liab. 1.00 1.00 1.00

Liquidity Ratios

Net Working Capital $138,816 $253,742 $449,392

Interest Coverage 0.00 0.00 0.00

Additional Ratios

Assets to Sales 0.43 0.55 0.68

Current Debt/Total Assets 10% 8% 6%

Acid Test 9.24 12.66 15.21

Sales/Net Worth 2.57 1.97 1.58

Dividend Payout 0.00 0.00 0.00

Conclusion

Califone brand, the battle of Califone in Thailand’s mobile phone operator market Strategic

question how can Califone gain higher market share by focusing on customers in Bangkok?Purpose The purpose of this research is to investigate, analyze current competition betweenCalifone and other competitors with customer insight in order to find out the possibility forCalifone to gain more market share in Thai telecommunication market by focusing on customersin Bangkok area. Theory and Method Researchers apply ‘Business Strategy theory andMarketing mix for service company or 7Ps’ to answer the strategic question by collecting primary data from questionnaire and interview, while the secondary data are collected fromvarious reliable sources.

Documents

Product Launch Project by Imtiaz