Marketing Plan for a Camera Phone - Essay Example

I.   Executive Summary: This paper is a marketing plan for a camera phone that is to be launched shortly in the domestic market. The plan details thestrategy employed by the company and the various mechanisms that the company is bringing to the table with respect to the market for its flagship product. The document details the product and marketing strategy that the company is planning to employ for the marketing and the distribution of the products. II.   The Challenge: The product to be marketed is a camera phone and the challenge before the company is to effectively market it so that sales go up and brand recognition is obtained from the marketing campaign. The key challenge before the company is to highlight the special features of the camera phone and ensure that it meets the specifications of the consumers and it is to their liking. III.   Situation Analysis Company Analysis Goals: The goals of the company are to launch the camera phone and capture at least 10% of the market in the first year. This means that the company has to ensure that the marketing is targeted and focused on the particular segments it wants the phone to be sold. Focus: The Company is focusing on the youth and teenage segments as they are the primary users of camera phones and it is by targeting these segments that the company hopes to realize its objectives. Culture: The Company has a laissez faire and democratic culture in its dealings with employees and other stakeholders. This is part of the strategy to ensure that it remains in touch with the latest trends in the telecom space by aligning itself to the needs of the youth. Strengths: Apart from the technical strengths of the mobile phone and its perceived edge over the others in the design and features of the camera phone, the company also focuses on the emerging trends and tries to be ahead of the curve. Weaknesses: The Company is focusing exclusively on the youth and adolescent segment and this is a potential weakness for the company. Market share: The Company hopes to gain market share proportional to the products that it is marketing and feels that this can be done. One of the aims of this marketing plan is to detail ways in which the company can gain market share by targeting the customer segments appropriately. Competitor Analysis Market position: The Company does not have the market leader position but hopes to gain market share by launching its products into the market targeted at a particular segment and aimed at the brand conscious and style conscious customers. By this way, the company hopes to do well in the chosen market segments. Strengths: The competitors are well established and have a presence that is formidable. Only by playing to the company’s strengths in terms of features and style can the company hope to gain market share. Weaknesses: The competitors do not have substantial presence in the market segments that the company is targeting and this is a potential weakness that the company can exploit to gain market share. Market shares: The market shares of the competitors are formidable but the company can rely on the product doing well in the market place. This is a sure way of ensuring that the market share is gained in a short time. Climate Political and legal environment: The Political and Legal environment is conducive to the mobile phone market and the manufacturers as the government has recently de-regulated the market for mobile phones and the tariff structures have been liberalized leading to the telecom majors passing on some benefit to the customers while retaining some of the advantages for themselves. Economic environment: The segmentation of the market is conducive to the company as it can hope to maximize shareholder value and gain market share by targeting the product to its customers effectively. Further, the market is growing rapidly and this is a sign that the company can hope to do well in the chosen segment. Social and cultural environment: The social and cultural environment for the market is good as the indicators seem to indicate that the youth market is poised to grow at a faster rate than it was doing all these years. This is a sure sign that the company is well positioned to take advantage of the segmentation in the market. Technological environment: The recent advances in mobile telephony means that the company can market its products embedded with the latest technological advances and that the company can gain market share because of its technologically superior model. SWOT Analysis The SWOT analysis of the company provides guidance on how the company hopes to market its products and break even in the highly fragmented market and how the company plans to increase its market share. As described in the previous sections, the SWOT analysis proves that the company has to play to its strengths of the particular segment that it operates in and that the company needs to ensure that the brand stays at the top of the mind recall among the youth and the target segments. IV.   Market Segmentation Segment Description: The market segment that the company hopes to reach is the youth and adolescent segment that is estimated to grow at an annual range of around 10-15%. What they want: This segment is style conscious and brand conscious and the company hopes to target them accordingly. How they use product: They use the product for personal purposes with the majority using it to keep in touch with their partners and friends. How to reach them: The Company is focusing on reaching them through the channels of the media and the youth channels in particular that the target market watches. Price sensitivity: The target segment is highly conscious of the price as they are the ones who are not yet earning. Hence the company has to ensure that the pricing is done appropriately. V.   Alternative Marketing Strategies List and discuss the alternatives that were considered before arriving at the recommended strategy. Alternatives might include discontinuing a product, re-branding, positioning as a premium or value product, etc. VI.   Selected Marketing Strategy The reason why the strategy was selected, then the marketing mix decisions (4 Ps) of product, price, place (distribution), and promotion. Product The product decisions should consider the products advantages and how they will be leveraged. Product decisions should include: Brand name: The Company is banking on the appropriate brand name for the product. Quality: The Company hopes to produce defect free products that can withstand the rigor of the usage and withstand the rough use of the mobile phones. Warranty: The Company is planning to cover a year of warranty on its product line and this would ensure that the target segment remains loyal to the company for its service and product warranties and guarantees. Price Discuss pricing strategy, expected volume, and decisions for the following pricing variables: List price: Priced according to the segment Discounts: On bulk purchases Bundling: Along with other accessories and style leaders. Payment terms and financing options: Installment options available Distribution (Place) Decision variables include: Distribution channels, such as direct, retail, distributors & intermediates Motivating the channel - for example, distributor margins Criteria for evaluating distributors: Established and new comers alike Locations: At places where the youth come together or “hang out”. Logistics, including transportation, warehousing, and order fulfillment Promotion Advertising, including how much and which media. Public relations: In conjunction with media outlets. Promotional programs: Targeted at the segment with specific emphasis on youth and associated segments. Budget; determine break-even point for any additional spending Projected results of the promotional programs: Ensure top of the mind recall. VII.   Short & Long-Term Projections: The Company hopes to break even in the second year of its operation and hopes to gain a 10% share in the market by the second year of operation. Subsequently, the projection is to gain traction and ensure that the company gains a respectable market share and retains its position in the market. The company hopes to gain market share and top of the mind recall with each successive year of operation and the long term projection is to branch out into other segments and ensure brand loyalty by the customers as they age. VIII.   Conclusion The marketing plan described above is a summary of the strategies and the plans for the company to gain market share and ensure that it remains ahead of the pack for marketing its products. The marketing plan takes into account the variables involved in the launch and distribution of new products as well as branding and other steps needed to gain market share. Sources Bangs, Jr., David H. The Market Planning Guide: Creating a Plan to Successfully Market Your Business, Products, or Service Read More