Marketing Plan for New Innovative Product Inschill

PRESENTED BY:FOZAIB SHAHZAD

AHSAN MALIKHARRIS WAHID

HARRIS QARIJAWAD ARSHAD

SYED ABID SALAR HUSSAINISMAIL ASAD RASUL

HAIER

Haier was incorporated in 1984 producing household refrigerators .

Haier now manufactures a wide range of house electrical appliances in 86 categories with 13,000 specifications and exports products to more than 160 countries.

Haier’s international promotion framework encompasses globalized trading, design, production, distribution and after-sales service network.

SWOT ANALYSIS

INSCHILL

Inschill is an electronic chilller which can chill all sorts of drinks.

The timing and temperature can be set by the user from 10 seconds to 10 minutes.

The mission of Inschill is to provide consumers with instantly chilled drinks.

The goal of Inschill is to provide consumers with a product that can not only chill various types of drinks but is also economical and less bulky as compared to freezers etc.

SMART OBJECTIVES

Specific:

TARGET MARKET

The target market consists of two basic users, households and offices.

Households for the reason that INSCHILL is a home appliance and soft drinks and other drinks like squashes, juices, water are highly consumed by households.

INSCHILL can also be used in offices as there is shortage of time and less place for freezers etc.

Time constraint is also a major consideration in choosing INSCHILL not only at homes but also in offices

Target market can be further separate or divided on the basis of demographics, geographic and behavioral characteristics.

Demographics: segmenting on the basis of age, gender, family size, family life cycle, income, education and martial status.

INSCHILL’s target age bracket is individuals who are below fifty years. The reason for this is that as people grow older, they prefer tea, coffee etc.

Geographic: segmentation based on location.Target market of INSCHILL cannot be

segmented on the basis of geography as people all over the world prefer some drinks if they are chilled.

Behavioral: segmentation based on variables like media usage, specific media usage, payment method, loyalty status, usage rate, user situation.

For office the most suitable is magazine while for households newspaper is the best front.

INSCHILL like other Haier product comes with the feature of lease and easy installments.

For the ease of households credit cards are entertained as well as cash payment.

Credit is allowed for offices to maintain long-term relationships.

POSITIONING

Positioning basically deals with making the right image of the product in the minds of consumers at large.

Proper positioning strategy is to be made so that firm’s product is clearly distinguished from that of competitors and more preference must be given to company’s product.

Products can be positioned in five ways:by focusing on their superiority to

competitive products based on one or more attributes

products can be positioned on the basis of use or application

on the basis of particular types of product users

on the basis of product class and lastly on the basis of direct competitors.

INSCHILL’s positioning focuses basically on two components of positioning types.

Firstly, superiority to competitive products and secondly on the basis of use or application.

INSCHILL can be positioned on the basis of use or application as well.

COMPETITOR ANALYSIS

Inschill will compete in the electronic applianes industry.

INSCHILL is a product new to the world and consumers so it has no direct competitors at this point in time.

The indirect competitors are basically refrigerators, deep freezers or ice used by local consumers.

FIVE COMPETITIVE FORCES

Existing competitive rivalry between suppliers: Haier need a strong suppliers base for promoting and increasing sales of INSCHILL otherwise product can loose out in the initial stages.

Threat of new market entrantsBargaining power of buyersPower of suppliersThreat of substitute products (including

technology change)

MARKETING STRATEGY

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

A marketing strategy should be centered around the key concept that customer satisfaction is the main goal

SMART MARKETING OBJECTIVES

Specific: Our specific marketing objectives are to reach out to potential markets as accurately as possible and waste minimum time.

Measurable: We intend to achieve our measurable objectives in terms of the sales revenue earned soon after launch of INCHILL.

Attainable:The fixed cost must be covered by attaining objectives of quick marketing, and effective use of marketing skills to maximize sales.

Relevant: INSCHILL fits in perfectly with the marketing objectives of Haier.

Time: All this needs to be achieved within ten to twelve months after launch of our product and it is our desire and strong commitment to do everything according to this time frame.

PRICING

INSCHILL will make use of penetration pricing as it is priced at Rs. 15000/.

Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.

The strategy works on the expectation that customers will switch to the new brand because of the lower price.

Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.

PROMOTION

For promotion of our product we intend to use television commercials, banners, personal selling, billboards, brochures and direct selling.

As our target markets are households and offices personal selling is very effective for offices.

Along with personal selling another way of marketing our product are brochures for offices and households, both.

The services we provide with brochures are that we offer delivery free of cost in major cities that are provincial capitals across the country.

DISTRIBUTION

Distribution of our product would be available throughout Pakistan.

This includes free delivery in major cities but other can also order at an additional cost equivalent to transportation costs from the nearest major city.

INSCHILL will follow a push strategy.Push strategy in marketing is used when

there has been developed or improved a new product which is unknown to the consumer.

As there is no consumer demand in the product launch, the product and the information are "pushed" to the consumer by distribution and promotion.

POSTERS

Billboard

TVC

Marketing wing of Haier’s INSHILL

GM Marketing

Haier

Brand manager Inschill

Manager marketing

Inschill

Asst Brand manager(prod and

fin)

Asst Brand manager

(marketing) Junior

manager(marketing)

Supervisor (sales and marketing)

BUDGETING of INSCHILL

RS 000's

SALES(@15000 each) 225000

Less:

COST OF GOOD SOLD(@ 5000 each) 75000

GROSS PROFIT(margin 66.7%) 150000

EXPENSES:

TOTAL MARKETING COST 45500

GENERAL EXPENSES 7500

Other 1500

NET PROFIT( for 1 month) 95500

FIRT MONTH

SALES AND PROFTS FORECAST:

Marketing cost break-up

RS 000's

ADVERTISING(TVC and BILLBOARDS) 32000

Direct mkting 2500

Internet mktng 5000

Consumer Promotion 2000

Trade promotion 1000

salesforce expenses 500

public relations 500

customer service 1000

other 1000

TOTAL MARKETING COST 45500

ADVERTISING:

At (400000@10) 4000

at (450000@10) 4500

at & peshawer(300000@5) 3000

at (200000@5) 1000

at (150000@5) 750

First six months profit and sales break-up

Rs 000's

Sales(@15000 each) 1500000

Less:

Cost of good sold(@5000) 500000

Gross Profit 1000000

Less:

Marketing expenses 199000

General expenses 10000

others 2500

Net Profit 788500

Marketing cost for 6 monthsRS 000's

ADVERTISING(TVC and BILLBOARDS) 175000

Direct mkting 4000

Internet mktng 5000

Consumer Promotion 3000

Trade promotion 3000

salesforce expenses 2500

public relations 3000

customer service 2500

other 1000

total marketing cost 6 months 199000

Advertsing cost : rs 000's

at (300000@20) 60000

at (400000@15) 60000

at islambad and peshawer(300000@10) 30000

at (150000@10) 15000

at (100000@10) 10000

CONTINGENCY PLAN

Contingency plan is a plan made of what actions to be taken if product fails in the market after its entry to the market.

If INSCHILL fails in the market the first step which company is likely to take are changing two of the P’s out of total of four P’s.

The first P which is most likely to be altered is the promotion.

Second P of the four P’s which will be likely changed is the Price component.

Recommendations

Advertise INSCHILL separately from other products of Haier

Increase the number of cities in which INSCHILL is sold

Produce INSCHILL in various colours to attract various groups

Put greater emphasis on the channel of distribution

Increase expenditure on personal selling and direct marketing

Make separate blogs and websites for INSCHILL so that customers have a platform to raise the positive and negative aspects of INSHILL