Transcript
MARKETING PLAN
Fenway
Mario Castro
Key Question• Can Connect market a low-price tablet to a low-middle class in Brazil
while being profitable?
Answer• Yes, Connect cannot only market a tablet for over 100 million
people in its target market (low-middle class in Brazil), but also recover its initial investment within 2 to 3 years.
A basic low-cost tablet that allows access to internet and use of electronic standard tools for an affordable price
It is a pure product company, assistance will be outsourced by partners in the country. Equipment will be produced by partners in China, India and Indonesia.Consists of a large scale economy to generate profits.
Our main target is Brazil. In the subsequent years, emerging countries such as India, Indonesia, South Africa, Mexico and other emerging countries will be considered.
Segment - Low-middle income class, ages 18 to 40; In the long-term, we will target educational institutions to extend the possibility to access Internet information
Price is $99.99 USD for the Connect Tablet for orders less than 1000; $89.99 for larger orders. Sales price is$149.99
Offer
Pure Product Production
Target Countries
Target
Price
Executive Summary
Executive Summary
First Year Sales Units
Revenues and Profits
First Year
Second Year
Third Year
Marketing Budget
Initial Investment
Our objective for the first year is to sell 1.13 million tablets.
Revenues will be $113 million and it will generate 13% net profit.
First year revenue will be $113 million with a net profit of $14 million.
For the second year our revenues will be $150 million with $19 million net income.
Third year revenue $200 million with $26 million net income.
Our marketing budget will be $8 million. We will start our business in Brazil; in the third year we will go to Mexico, Indonesia or South Africa.
Connect will need an initial investment of $10 million to pay marketing campaign and operations.
Customer Analysis – Persona and Purchase Process
Word of Mouth
Evaluation
Accessories
Price and Brand
App Store Access
Space and Speed
Processor
Source: Castro, Mario research in Best Buy, Cambridge, MA, USA, 2013
Persona: Low-middle class, male or female, between 18 to 40 years old and students (30%).
JoséMaria
For anyone that wants to learn, be informed, entertained and connected to the world, those who feel secluded and have no tools to join the information era, our accessible and indispensable, low-cost Connect tablet is the answer to your problems; it will allow you to socialize, network, play, learn and be Connected to the universe.
By selecting our Connect tablet you will experience technology at your fingertips, opening the possibility to be innovative, modern, informed and sociable. With the world’s information at your disposal, your life will change completely.
No other company will offer you an easier or more affordable way to step into the 21st Century: the virtual era.
Value Proposition
Brazil - PESTEL Analysis
PESTEL
EconomicBrazil’s GDP is growing 5% on
average 1
An open economyDemographicBrazil has 200
million people, 52% are middle
class3
Social and Cultural
Brazilians amply accept imported
technology products
Only 10% of the population is
illiterate
TechnologicalQuickly improving
in Brazil, population positively
responds to the growth
Political/LegalBureaucracy
makes process very slow
IndustryPeople are buying tablets and smart
phonesSecond highest in internet use with high social media
use
Source: 1. http://en.wikipedia.org/wiki/Demographics_of_Brazil 2. http://www.languageconnect.net 3. http://www.brasil.gov.br/para/press/press-releases/november-1/brazilian-middle-class-reaches-52-of-total-population/br_model1?set_language=en
Brazil in Social Media
SWOT ANALYSIS
Strengths* Connect is a low-cost tablet available in the market
* All basic accessories for the lowest price * Excellent sales staff with strong knowledge of the product
* More campaigns than any other competitor* Aggressive Media Campaign (TV, Radio, Magazines and
Newspapers)* Relational oriented company which fits Brazil profile
Weaknesses* Not an established brand
* People may not trust an unknown brand even if it is available at a low cost
* No friend recommendations at the beginning* Weak relationship with suppliers and vendors
* Low demand for the brand
Threats* Closed bureaucracy in Brazil to enter the market
* Insecure country creates losses (stealing)* Financial pressure for results* Low demand for the brand
* Easy to enter into the market
Opportunities* Fast growing economy
* Low and low-middle class improving and consuming* Untapped market
* No competitor at this price in this market* More than 100 million people within our target
* No other competitor takes such an aggressive media campaign in stores
SWOT
Target - Emerging Markets for Tablet
• People are buying more tablets at a cheaper price. 2,5
• Emerging markets have a higher growth
rate than mature markets. 6
Source:2. http://www.the-digital-reader.com/2012/01/27/kindle-fire-has-dethroned-samsung-galaxy-tab-as-most-popular-android-tablet/#.UTizlhxm_NM5.http://searchengineland.com/3-x-major-tablet-smartphone-seo-opportunities-for-multinational-websites-148967 6. NPD Display/Search Q4’ 11 Tablet Quaterly
Tablet Sales
In 2010, Brazil was the 12th ranking country for Ipad sales in Ebay.8
Brazil represented 3 % of total Ebay Ipad demand; world sales were 60 million tablets in 2011. Brazil should have sold at least 1,800,000 tablets.8
Souce: 4. NPD, Morgan Stanley Research, 2011 7. Ebay, Annual Report 2011 8. http://news.cnet.com/8301-13579_3-20049011-37.html
When comparing the first 5 years of unit sales for smart phones, tablets, notebooks, mp3, e-readers and gaming devices, tablets sold more. 4
Industry Analysis2010 2011 2012E 2013E 2014E
Growth 333% 250% 33% 25%
Profitability 60% 50% 45% 40% 30%
Global Units 18 60 150 200 250
Dollars 42B 90B 100B 110B
Brazil Units 600K 1,8 6E 10E 14E
Source: 10. http://www.itproportal.com/2012/08/07/olympic-mobile-searches-reach-new-records-google-says/8. http://news.cnet.com/8301-13579_3-20049011-37.html
Customer Analysis
• Low-middle class is growing in purchase power and need to interact socially.3
• Emerging markets are getting more demanding.3
• Price is very important during the decision-making process when buying a tablet; Internet access is available to most customers.3
80%
• Customer’s priority is Internet access: browsing, reading, emails.3
Source: 3. http://www.technobuffalo.com/2011/12/07/the-fire-to-kindle-ipad-sales/
Competitive Analysis – KSF Framework
Factors Connect Apple Acer Google Nexus Amazon Kindle Samsung Asus Importance to customers
Product Connect Mini Ipad Acer Nexus Kindle Fire Galaxy Asus
Price 150 400 250 300 250 350 250 5
Camera 4 5 3 4 4 5 5 4
Space 8GB 5 8GB 8GB 8GB 8GB 8GB 5
Speed 4 5 3 4 4 5 4 4
Screen Size 7” 7” 7” 7” 7” 7” 7” 4
Distribution Internet/Stores
Internet/Stores Stores Internet/Stores Internet/Stores Internet/Stores Stores 3
Reliability NA 5 3 4 4 5 4 4
Expertise 3 3 3 4 3 5 3 3
Stability 3 3 3 3 3 3 3 3
Reputation 3 3 2 5 4 5 3 3
Location USA 3 China USA USA Japan China 3
Credit Policies Financing 5 Financing Financing Financing 5
Advertising 5 3 3 5 5 5 3 4
Market Share 0 50 2 5 5 35 3
Score from 1 to 5, 1 the worst, 5 the best, 3 neuter
Source: Castro, Mario research in Best Buy, Cambridge, MA, USA, 2013
Marketing Objectives – Sales Forecast for the First Year
Total units: 1,130,000Total revenues: $113 million (US Dollars)Total Market Units: 14 MillionMarket Share: 8%
We expect to enlarge Brazil’s market for tablets in an untapped market (low-middle class).
Fiscal Year Begins jan/14
12-month Sales Forecast
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Annual TotalsTablet Connect units 15,000 40,000 50,000 60,000 75,000 85,000 90,000 110,000 120,000 135,000 150,000 200,000 1.130.000Sale price @ unit 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 99,99 Market share unit 1,39 3,71 4,64 5,57 6,96 7,89 8,36 10,21 11,14 12,54 13,93 9,29 8,07Revenues 1.499.850 3.999.600 4.999.500 5.999.400 7.499.250 8.499.150 8.999.100 10.998.900 11.998.800 13.498.650 14.998.500 19.998.000 112.988.700Total market 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 1.076.923 2.154.000 14.000.154
Marketing Budget
Promotional Material Public Relations Sales Prizes Advertising Research Suppliers Promotion Stores Campaign Newspaper Magazine
Totals by Month, Quarter & Year-
to-Date
Week of Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj Actual Proj
Jan Total $50.000 $0 $10.000 $0 $0 $0 $1.400.000 $0 $35.000 $0 $80.000 $0 $50.000 $0 $0 $0 $200.000 $0 $400.000 $0 $2.225.000
Feb Total $40.000 $0 $10.000 $0 $10.000 $0 $400.000 $0 $10.000 $0 $10.000 $0 $20.000 $0 $50.000 $0 $100.000 $0 $200.000 $0 $850.000
Mar Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $10.000 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $200.000 $0 $500.000
Total 1Q $130.000 $0 $30.000 $0 $20.000 $0 $1.900.000 $0 $55.000 $0 $100.000 $0 $90.000 $0 $100.000 $0 $350.000 $0 $800.000 $0 $3.575.000
Apr Total $40.000 $0 $10.000 $0 $10.000 $0 $200.000 $0 $10.000 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $200.000 $0 $600.000
May Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $10.000 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $400.000
Jun Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $10.000 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $400.000
Total 2Q $120.000 $0 $30.000 $0 $30.000 $0 $400.000 $0 $30.000 $0 $30.000 $0 $60.000 $0 $150.000 $0 $150.000 $0 $400.000 $0 $1.400.000
July Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $0 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $390.000
Aug Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $0 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $390.000
Sept Total $40.000 $0 $10.000 $0 $10.000 $0 $100.000 $0 $0 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $390.000
Total 3Q $120.000 $0 $30.000 $0 $30.000 $0 $300.000 $0 $0 $0 $30.000 $0 $60.000 $0 $150.000 $0 $150.000 $0 $300.000 $0 $1.170.000
Oct Total $40.000 $0 $10.000 $0 $10.000 $0 $200.000 $0 $0 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $490.000
Nov Total $40.000 $0 $10.000 $0 $10.000 $0 $300.000 $0 $0 $0 $10.000 $0 $20.000 $0 $50.000 $0 $50.000 $0 $100.000 $0 $590.000
Dec Total $90.000 $0 $10.000 $0 $20.000 $0 $500.000 $0 $0 $0 $30.000 $0 $20.000 $0 $150.000 $0 $50.000 $0 $100.000 $0 $970.000
Total 4Q $170.000 $0 $30.000 $0 $40.000 $0 $1.000.000 $0 $0 $0 $50.000 $0 $60.000 $0 $250.000 $0 $150.000 $0 $300.000 $0 $2.050.000
Total 2011 $540.000 $0 $120.000 $0 $120.000 $0 $3.600.000 $0 $85.000 $0 $210.000 $0 $270.000 $0 $650.000 $0 $800.000 $0 $1.800.000 $0 $8.055.000
Marketing Budget - First Year: $8 million Second Year: $9 million Third Year: $10 million
Implementation Plan
Jul Aug
Sept Oct
Nov Dec
Jan Feb Mar Apr Mai Jun Jul Aug Sept Oct Nov Dec
Selling at Sao PauloSelling at Rio de Janeiro
Hire People
Training
Research
Suppliers Contact
Stores Campaign
Magazines
News PapersPromotions
Marketing Strategy – 4P’s and Brand
• Product: Tablet • Price
• Promotion• Place
Internet access
CameraAndroid system8GB, 7” screen
Retail Price$150.00
Vendors Price$99.99
Larger Orders$89,99
OnlineTV, Radio, Magazine,
News PaperStore
Campaigns
Brazil Department
StoresSmall stores
Online
BRANDThe word connect, remember what we
want say, also the three people connected also reinforce our VALUE
PROPOSITION
Cheap but reliable tablet brand
Internet access
Connect you to
the world
Cheap
It works
Marketing Communications
Value Opportunity Discovery: Creating the Market Analysis• Customer research• Market segmentation and selection• Capabilities and experience scope
• Primary research: • Focus groups• 1000 surveys (both physically and online)• Social media (for listening and convening)• DILO for 4 days
• Secondary Research:
• Social Media• Basic research (literature and website)
In order to better inform ourselves about our client, we need to directly listen to the customer’s voice and have a better understanding of our persona or personas.
The tools we have chosen will allow us the insight into the lives of our customers, it will give us a wide range of samples, most of these methods are inexpensive to implement, and we can cover a large range of issues we need to address: price willing to pay, need and uses for the product, etc.
For example…
Social Media Research
• Listening It will be important to listen to our potential customers that are already active in the internet. This will help us conclude how many people are using internet and observe customer perceptions of our product.
• ConveningIn the same social media networks where we can observe and listen, we can actively convene a chat group to create important focus groups for valuable information about our potential customers.
• Gender, Age, Income, Level of Schooling
• Do you currently go to school? Yes/No
• At which level?
• Do you own a tablet? Yes/No
• If you had a tablet, what would you use it for? – Entertainment (Music, TV shows, Games)
– Connecting with other people (Social Media, Facebook, Twitter)
– Education (Reading, Excel, Word, PowerPoint)
– Work (Excel, Word, PowerPoint)
– Other (Please specify)
• Do you have access to internet? Yes/No
• How much would you be willing to pay for a tablet?– $60 - $80 USD
– $90 - $110 USD
– $120 - $140 USD
• Would you buy a tablet for $99.99 USD?
• Where would you buy a tablet?– Online
– In-Store
– Through a friend
Surveys
Sales Enablement
Sales People
Action Key Accounts Specialist Promoter
Promotional MaterialFocus on
profitability and our media campaign
Focus on profitability and our media campaign, as well as, our incentive
stores campaigns
Sales PitchProfitability and a media campaign will help with the
demand
Profitability and a media campaign that will help with the demand. Also
the relationship through focused campaigns
Training We will train sales people to be able to train store’s sales employees
Sales Championship Top 10 sales people will be given a prize each month
Bonus At the end of 6 months, a bonus based on units versus profitability will be paid to our top sales people
Stores Actions
Action Hyper Chains Super ChainsMedium and
Small
Pretend Customer
A pretend customer will approach a sales person and ask for a cheap tablet, if the sales person offers
a Connect tablet, sales person will receive $50, if he does not say Connect, the pretend customer will tell him he lost $50 and will explain the campaign
of offering Connect for random $50.
Sales Championship Championship in top stores
for the three top sales person will receive, $200, $150 and
$100.
Trainings Top StoresTop stores will receive training so the sales
peoplein the stores will be able to explain our product and our sales people will get closer to
sales team within top stores.
Coffee-BreaksSometimes our sales team and free lance promoters will offer a coffee break to give some trainings and relate to sales people.
Goals with an extra discount
Over a certain amount of purchase an extra discount
will be offered.
Budget and Pro Forma Income Statement
Manufacturing cost
Direct Material → 0
Direct Labor → $24/ unit
How much will it cost?
Budget: $ 500,000
Promotional Plan Cost
Budget: $ 200,000
→ Social Media
→ Build consumer confidence and trust
→ Cultivate new markets
Risk Analysis
→ Preparing for events such as equipment or technology failure, theft, staff sickness, or natural disasters
→ Planning for changes in your environment, such as new competitors coming into the market, or changes to government policy.
Income Statement for Break Even
Sales:
→ Gross Sales : $1,099,890
→ Less COGS: ($264,000)
Expenses:
→ $13,359
Net Profit: $822,531 /SHIFT
Breakeven sales
Fixed Cost: $5,500
Variable Cost: $24
Selling price: $99.99
BREAK EVEN: 73 UNITS/SHIFT
112.988.700,00 Total Revenues
28.247.175,00 COGS 25%
84.741.525,00 EBITDA
11.298.870,00 Operational Costs
1.000.000,00 Interest
56.494.350,00 Taxes 50%
1.694.830,50 Amortization and Depreciation 3%
14.253.474,50 Net Profit
Income Statement
Questions
top related