Kulvant iPod

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Contents

Executive summary ................................ ................................ ................................ ........................ 3

Mission ................................ ................................ ................................ ................................ ............. 5

Our vision................................ ................................ ................................ ................................ ......... 5

Methods of Research to be Used ................................ ................................ ................................ .. 5

Questionnaire ................................ ................................ ................................ ................................ .. 8

Analyze the competition ................................ ................................ ................................ ............... 10

Prodution and HR plan ................................ ................................ ................................ ................. 10

Electronic assembling................................ ................................ ................................ ............... 10

Software installers ................................ ................................ ................................ ..................... 11

Case assembling................................ ................................ ................................ ....................... 11

DETERMINE ENVIRONMNETAL ISSUE ................................ ................................ ................... 11

SUBSTANCE M AN AGEMENT ................................ ................................ ................................ 11

TAKE BACK AND RECYLING................................ ................................ ................................ . 11

ENERGY EFFIENCY ................................ ................................ ................................ ................ 12

PORJECTION FOR SALES ................................ ................................ ................................ ..... 12

Projection for sales ................................ ................................ ................................ ................... 12

Projection of sales ................................ ................................ ................................ ..................... 12

PRODUCT BRIEF................................ ................................ ................................ ...................... 13

Zerronic Mp3 ................................ ................................ ................................ ............................. 13

Target market ................................ ................................ ................................ ................................ 15

POSITIONING STRATEGY ................................ ................................ ................................ ......... 15

Marketing Mix ................................ ................................ ................................ ................................ 16



Executive summary

Chinese electronic items - booming in international market

In last couple of years, the Chinese electronic market has witnessed some dramaticincrease in demand and sales chart of electronic items. The country has turn out to

be the world's major producer of consumer electronics and other high tech products

than any other country. Starting from digital cameras, mp3 players, computer

accessories to cell phones, and other electronic goods that are manufactured in

China is gaining tremendous popularity. In recent times Chinese electronic products

industry has been dynamic in contributing in international trades as well. All china

wholesale electronic goods feature good quality that is far better in comparison to

other electronic products available in international market.

The recent studies of the technological capability of the China electronics industry

also states that the China is likely to equal South Korea, Taiwan, and even Japan as

a major Asian force in the world electronic consumer goods industry in twenty -first

century. Besides this, amongst the E7 developing countries, China is ranked as the

most eye-catching consumer electronics market from investment point of view.

Moreover, its consumer electronics market has increased at a CAGR of 11.71%

during 2002-2006 and is further anticipated boosting at a CAGR of 12% during theforecasted period (2007-2011).

The electronic items made in China products are exported in huge amount all over

the world, especially in countries like United States of America, different European

countries and all other parts of Asia. In fact the way the demand for the Chinese

electronic products are increasing day by day, it seems that China is already on the

way to become the leading exporter of electronic products in international market.

China has now been tagged as the world's f actory as they produce almost all types

of electronic products at extremely lower cost than anywhere else in the world. The

major highlight of Chinese electronic industry is that almost everything is in low cost,

starting from low human resources cost to a low corporate tax burden. This in turn

helps every leading production centers in China employ cheap labor and still

produce superb quality products.



Apart from all this, on the consumption front, the constant declining cost of consumer

electronics together with increasing disposable income are playing important role in

attracting consumers select Chinese electronics products. Moreover, looking at the

present scenario, China's youth are spending freely on Chinese made consumer

digital products and the trend will continue to rise with the growing middle class.They are creating a multi-billion dollar market for electronic products and services.

These few factors certainly indicate a booming future for the consumer electronics

industry in China.

Today, the electronic items of China are far more reliable than ever before. The

manufacturers are now providing a whole new range of electronic products with

trendy new features. In addition to this, the Chinese electronic markets are also

providing consumers and re-sellers a quick and profitable resource to build sales.

The trend is gaining its popularity and expected to boom in coming years.

This becomes to take an competitive advantage to make a chine product to the mid

range markets of india wer the cheap and affo rdable and comparitively a good

quality electonics is highly in demand. So our team decided to assemble the MP3

player with Bluetooth technology. The company Zerronic elctronics will

manufacture with the same brand name to this player. This may be new to the

technlological industry and make a revolution with the top leading MP3 manufactures

in the world.



Mission ± Zerronics is working to create value for our stake holders, and improve

the quality of life for the next generation through our innovations.

Our vision is to become THE communication entertainment brand. We inspirepeople to do more than just communicate. We enabl e everyone to create and

participate in entertainment experiences. Experiences that blur the lines between

communication and entertainment.

Methods of Research to be Used

F

or this study, the descriptive method will be utilized.I

n this method, it ispossible that the study would be cheap and quick. It could also suggest

unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative

explanations and especially infer causations. Thus, this study will use the descripti ve

approach. This descriptive type of research utilizes observations in the study. To

illustrate the descriptive type of research, Creswell (1994) guided the researcher.

The purpose of employing this method is to describe the nature of a situation, as it

exists at the time of the study and to explore the cause/s of particular phenomena.

The researcher opted to use this kind of research considering the desire of the

researcher to obtain first hand data from the respondents so as to formulate rational

and sound conclusions and recommendations for the study.

To come up with pertinent findings and provide credible recommendations,

this study will utilize two sources of research: primary and secondary. Primary

research data will be obtained through this new res earch study. Questionnaire

survey and in-depth interview will be conducted. On the other hand, the secondary

research data will be obtained from previous studies on the same topic.

The Research Design

In order to come up with the most suitable research approaches and

strategies for this study, the research process "onion" will be undertaken. This is

because conducting a research is like peeling the back layers of an onion ²in order



to come to the central issue of how to collect the necessary dat a needed to answer

the research questions and objectives, important layers should be first peeled away.

With the said process, the researcher was able to create an outline on what

measures are most appropriate to be applied in the study.

Saunders et al (2003) said that while it is not unusual for a researcher to first

think of his research undertaking by considering whether one should, for instance,

administer a questionnaire or conduct interviews, thoughts on this question should

belong to the centre of the research 'onion'. That is, in order to come to the central

issue of how to collect the data needed to answer one's research questions, there

are important layers of the onion that need to be peeled away: the first layer raises

the question of the research philosophy to adopt, the second considers the subject of

research approach that flows from the research philosophy, the third examines theresearch strategy most applicable, the fourth layer refers to the time horizon a

researcher applies to his research, and the fifth layer is the data collection methods

to be used.

Figure 1 shows how the researcher conceptualized the research approach to

be applied in this study by Saunder et al (2003), in order to come up with the

pertinent data needed to answer the research questions stated in the first chapter, as

well as to arrive to the fulfillment of this research undertaking'sobjectives. Then again, the research philosophy that is reflected in this study

is posi t ivism. With this research philosophy, a researcher prefers to work with an

observable social reality in order to come up with law-like generalizations similar to

those produced by the physical and natural scientists (Remenyi et al , 1998), and in

this tradition, the researcher becomes an objective analyst, coolly making detached

interpretations about those data that have been collected in an apparently value -free

manner (Saunders et al , 2003). In addition, the emphasis is on a highly structured

methodology to facilitate replication (Gi ll & Johnson, 1997) and on quantifiable

observations that lend themselves to statistical analysis (Saunders et al , 2003). In

here, the assumption is that the researcher is independent of and neither affects nor

is affected by the subject of the research (R emenyi et al , 1998; Saunders et al ,

1998).



Meanwhile, the second layer shows that this study has undertaken

a d educ t iv e approach. Accordingly, this approach has five sequential stages:

deducing a hypothesis; expressing the hypothesis in operational terms; testing this

operational hypothesis; examining the specific outcome of the inquiry to either

confirm the theory or indicate the need for its modification; and finally, modifying thetheory in the light of the findings (if necessary) (Robson, 1993, p.

19). Further, the deductive approach has a number of important

characteristics. First, this approach is a sear ch t o explain c ausal relat ionshi ps

between v ar i ables, which consequently leading to the development of a hypothesis.

Second, it involves the c ollec t ion of a quant i tat iv e d ata (although it can, as well, use

qualitative data), and these data are important to test a hypothesis that has been

previously developed. The third characteristic of a deductive approach is that i t

c ontr ol s t o all ow t he test ing of hy pot hesis. However, one must remember that with

this approach, it is important that the researcher is independent of what is being

observed²that is, the researcher should be objective and not subjective²so that

the principle of scientific strictness will be pursued, as this approach emphasizes

scientific principles. (Saunders et al, 2003) Also, it is important that concepts

are o perat ional iz ed , which will enable facts to be measured quantitatively. Finally,

the deductive approach is g eneral iz at ion (e.g., to be able to generalize about

regularities in human social behavior, one must be able to select a sufficient

numerical size of samples). (Saunders et al, 2003)

Instruments to be used

A sel f-ad ministered quest ionnai re, or the type of questionnaire that is usually

completed by respondents (Saunders et al , 2003), had been constructed by the

researcher to gather the needed data. To further enhance the study on the customer

satisfaction, the researcher prepared a survey-questionnaire wherein the

respondents graded each statement. The equivalent weights for the answers were:

Range Interpretation

5 Strongly Agree

4 Agree

3 Uncertain



2 Disagree

1 Strongly Disagree

The decision was made to use a questionnaire for the data collection for this

project due to the sensitivity of the information being obtained. It is important for the

respondents to be open and honest in their responses. The use of the questionnaireprovides the researcher with the ability to test the views and attitudes of the patients.

The survey-questionnaires also will use open-ended questions to obtain as

much information as possible about how the interviewee feels about the research

topic. Interviews will take between one and two hours. The questions that will be

used during the interview will be based on the research questions for this project;

they have been reviewed, refined and approved by the project supervisor. The

researcher designed a semi-structured interview. Here, the researcher will

encourage the interviewee to clarify vague statements and to further elaborate on

brief comments. The interviewer did not sha re his/her own beliefs and opinions.

Questionnaire

1. Are you at least 18 years of age?

Yes No

2. Are you a student ?

Yes No

If yes, how would you classify yourself?

Freshman Sophomore Junior Senior

3. Do you currently own an Mp3 player?

Yes No

Name:_______________________

Phone #:_____________________



If yes, please list the make and model.

_______________________________________

If yes, where did you purchase your Mp3 player?

a. at an electronic store (like big bazaar, Ezone)

b. at a discount retailer (like Walmart, Target)

c. online through the company (like apple.com)

d. online through another website (other than the company)

e. at the company store (like Apple store)

f. other

4. Have you purchased an Mp3 player within the last 6 months?

Yes No

5. Have you purchased an Mp3 player within the last year?

Yes No

6. When considering buying an Mp3 player, where do you get most of your

information?

a. Consumer electronic or other magazines

b. Through friends/family

c. Online

d. Other If C, please be more specific (blogs, reviews, company webpages, etc).

___________

___________________________________________________________

__________



7. Please list Mp3 player brands that come to mind.

_____________________________________________________ _________

______________________________________________________________

____________________

Ethical Considerations

In keeping with the procedures and in the interest of maintaining the integrity

of the proposed research, the researcher will make every effort to ensure that the

ethical guidelines will be strictly followed. All data collected from the sites will be

kept in a secure location. The names of the participants and their scores will not be

revealed. The appropriate measures of the data will be obtained with the statistical

instruments selected, and all results will be revealed in the study.

There will be minimal risk involved to the participants of the study. The

participants' names and pertinent information will not be re vealed. Information will be

recorded as part of the entire group.

Analyze the competition

Since the product is made from chinese elctronics. The competitor will be from

kroean electronic manufacturer who can take an advantagbut due to the cheap

labour and the wholesale elctronics at more cheaper price than any other elctronics

manufature in the world.

Prodution and HR plan

Since we assemble the elctronics and need not to have so many emplyees to be

employed the following table shows about the manufaturing stages and the HR plan.

Electronic assembling



Electronic assembly of the Mp3 player is done by the pcb assembly production

process in which all the elctronic of the player is fed in to the machine and a CNC

operator who will operate the machine and the machine is capable of producing 50

pcb assmbled boards with complete testing capabilities.

Software installers

A couple of persons will update the software in the MP3 player and test the

performace of it.

Case assembling

This is manual assembling unit with a employes of 5, who will assemble the PCB

board with MP3 case and backing in packing box.

Managers 3 (Prodution, HR,

Marketing)

Rs.60,000 PCM

Software Technicians 2 Rs. 24,000 PCM

Hardware technicians 2 Rs. 21,000 PCM

Marketing 4 Rs. 21,000 PCM

Logistics and supply 5 Rs. 25,000 PCM

Total salaries Rs. 151,000 PCM

DETERMINE ENVIRONMNETAL ISSUE

Three important global issues remain at the forefront of much of environmental work.

They are substance management, arrangements for the take back and recycling of

end-of life products, and energy efficiency.

SUBSTANCE MANAGEMENT

During the planning and design of our products, one of our main focus areas is their

material content. We are continuously analyzing the material used in our produ ctswith the aim of reducing the amount of potentially hazardous or harmful content.

TAKE BACK AND RECYLING

In take back and recycling, we have for years had in place our own arrangement for

mobile devices and accessories, as well as for mobile network and IP network

security equipment. All Nokia products are also covered by the European Union¶s



new waste Electrical and Electronic Equipment (WEEE) directive. Nokia is assuming

product responsibility as defined by the directive as it is implemented throughout

Europe. In addition, take back of Nokia mobile devices will also continue at

authorized Nokia Service Centres and flagship stores in all markets where we do

business.

ENERG Y EFFIENCY

In our production creation as well as our own operational activities, an important area

for continuous performance improvement is in energy efficiency. We have

consistently been able to reduce the energy intensity of our products.

Finance

The company will had pre-research investment of 100,000 thousands and a further

setting up of the company will financed by a loan sactioned by the bank.

PORJECTION FOR SALES

The company will sell the player all over the India with huge marketing ads and so

many promotions

The selling price of the unit will be Rs.800 and the company will sell one thousand

unit ina month and projected sales is as follows

Projection for sales

(In units)

Years India

2011 1200

2012 1800

2013 2500

2014 3150

2015 3500

Projection of sales

(in Rupees)



Years India

2011 Rs. 9.6 million


2013 Rs. 20 million


2015 Rs. 28 million

Number prodution unit 1

Total number of MP3 players

per year

1200

Cost of a MP3 player Rs. 800

Total revenue sales per year Rs. 9.6 million

Total Staff expenses Rs. 1.8 million

Advertisement, Utility and

others

Rs. 2.5 million

Total revenue for the year 2011 Rs. 5.3 million

PRODUCT BRIEF

Zerronic Mp3

Zerronic has chosen to position their product

based on several platforms of performance.

They stress the capabilities of the series that

set it apart from other touch screen Mp3

players. The series comes standard with



Bluetooth capability. This capability allows the user to use a wireless headset up to a

distance of 38.2 ft and also enables traswer the mmultimedia between any bluetooth

enabled elctronic instrument. The MP3 is also lighter and faster, weighing 2.88

ounces and boasting a playback rate of 30 frames per second on the 3-inch screen.

Also mentioned in the Mp3 advertisement is that it is multi -format friendly, capable of playing Mp3, WM A, WM A-DRM, MPEG4, and WMV9 files.

The brand personality can be summed up in three words: ³Compact, Fresh and

Innovative.´ These three qualities describe the three components that consumers

are looking for in an Mp3 player. The new MP3 is very compact with a measurement

of 3.94x2.05x0.39 inches and a weight of 2.88 ounces, making it smaller than the

iPod touch, which is the market leader. The MP3 is innovative with faster loading

speeds, Bluetooth capability, and multiple format capability. The MP3 is fresh with a

new sleek design and a choice of three snazzy colors (black, white, and burgundy).

The current MP3 strategy centers on the new technological capabilities, size, clarity,

and sleekness of the product.

The Zerronic MP3 package includes an USB connector cable, a rechargeable

battery with a life of up to 30 hours, and music management software. (See Image 1

in Appendix) The promotions used so far are limited to one TV slot that mimics the

iPod touch ad, by demonstrating all the cool features of the zerronic MP3.

Activities Time

Research 20 days

Development prototype 80 days

HR Planning 25 days



Marketing Planning 15 days

EXPECTED TIME TO COMPLETE

THE ALL THE ACTIVITIES (asper CPM)

140 DA YS

Target market

The Product has especially been made for middle and upper class families

particularly and students.

Geographic:

Zerronic player immediate geographic target is urban India.

The total targeted population is estimated at 100 million.

Demographic:

Male and female.

Ages 25-50, this is the segment that makes up 80%.

Professionals and college students.

POSITIONING STRATEG Y

When Zerronic MP3 player positions its brand in the crowded MP3 marketplace, its

message must clearly bring together the technology and human side of its offer in a

powerful way. The specific message that is conveyed to consumers in every

advertisement and market communication. In many cases, this is represented by the

tag line, ³we call this human technology´. This gives consumers sense of trust and

consideration by the company, as though to say that Zerronic MP3 player

understand what they want in life, and ho w it can help. And it knows that technology



is really only an enabler so that you-the customer-can enjoy a better

life.(K otler,2004, pg.7 2 )

Marketing Mix

Price

The price of Rs. 800 is really a very cheap affordable price. With all the features

including the bluetooth technology.

Distribution

Coverage: all over India to all the retailer elctronics.

Advertising:

1. Through TV, sign boards, Bill boards, Radio and newspaper

2. Broachers, posters, Dummies and display stands

Personal selling

By product training to Distributor (what is product)

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