Marketing Report for a Leading Electronics Manufacturer - Case Study Example

Marketing Report By [Print Here] [Department & Given Scenario I am the marketing manager for a leading electronics manufacturer, which specialises in televisions and digital devices such as MP3/MP4 players. I have been asked to produce a marketing report for the company. Assumptions The firm under consideration has a share of 15% (for televisions), and 5% (for MP3-MP4), in domestic market (U.K.). The firm competes with some of the best brands, Sony, Samsung, Phillips, and Apple. The firm has surplus production capacity, and is vying for foreign markets (initially through exports), in the Indian subcontinent, African countries, Singapore, Malaysia, Philippines, Thailand and Indonesia; and later, into middle-east, and European markets in a big way. The firm also has vigorous plans to increase its domestic market share in the coming year. Current Market Trends The global market for LCD televisions in fiscal year 2008 was approximately 107 million units (Sony Annual Report, 2009), which implies a growth of 24% over 2007 sales. The unit selling prices are declining and economic slowdown is expected to hamper growth. The global market for media players is pegged at 275 million units by 2011 (Research and Markets, 2007). The market trend is shifting toward pocket gaming mobile telephony with multimedia features available on the fly. Marketing Strategy Report Marketing Objectives Marketing objectives should favourably affect the company's top-line. These should be challenging, specific, measurable, and have a set time-line in which the objectives are to be achieved (Palmer, 2009). The marketing objectives in the current context, hinge upon domestic and international market. It is pertinent therefore, to analyse the company's core strength, market opportunities, threats from competition, and limitations if any, so that, the objectives set forth can be achieved with stretched resources in hand. The annual marketing objectives for the company are:- a) Increase product awareness among target domestic audience by 30% in one year. b) Introduce product awareness in target international market (Indian subcontinent, African countries, Singapore, Malaysia, Philippines, Thailand and Indonesia) by 15% in one year. c) Increase the combined sales of all products in the domestic market to show a revenue growth by 15%. d) Effect a 10% combined sales in targeted international market in one year. e) Effect 20% of overall sales through e-marketing, and the balance 80% via established dealerships. f) Effect sales of MP3-MP4 players to the target group of university students in England, Wales, Scotland and Ireland, such that, every fifth student, uses the company's product. Market Segments LCD televisions and multimedia players are perceived as status symbols that reflect a "digital, cool lifestyle," which provides a sense of belonging in the peer group. It's an icon product that "needs to be owned," as a mark of a high culture lifestyle. These products also serve the "social need" for entertainment with no dangling wires, and plug-and-play convenience. With regard to MP3 and MP4 media players, these products are popular with the youth, as also, with joggers, travellers, and music lovers. The current trends are moving towards lightweight, compact, wireless units that have huge gigabyte memories, and can be connected to the internet on the fly. Market Segment by Age The major market segment by age, for the company's product lines, would be the 15 to 64 year old group that is projected at approximately 3100 million in emerging economy, and 800 million in the developed world (UN & Morgan Stanley, n.d.). Currently, around 60% of population in U.K. qualify under the working age category, which roughly amounts to 37 million people (Office for National Statistics on-line, 2009). Reports indicate that the unemployment rate at the end of third quarter of 2009 stood at 7.8%. Market Segment by Geography 80% of revenue would be slated to come from domestic market segment, and the balance from international market. Market Segment by Lifestyle 20% of the domestic revenue would be expected to come from university students in the age group of 16 to 24 years old, which is roughly 12% to15% of the working population in U.K. Product differentiation and convenience shall be the major features that would appeal to market segment envisioned for company's product lines. While those at the higher end of age-spectrum would be attracted by convenience factors (addressing social needs); those at the lower age group shall gravitate towards product features, appearance (addressing lifestyle appeal). The products of the company shall be accordingly positioned to meet specific categories of market segment that include:- Features that involve sleek design and appeal: Touch-pads, wireless ear phones, music quality, download via Bluetooth, size and colour. Customized features to suit gender, belief, and values, to leverage niche market. Benefits that involve convenience, without tangles of wire, and ease to carry the players as part of garment accessory. Product positioning customized to user needs, cool-look, trendy, and reflecting the values of millennial population. Marketing Strategy Segment 1: Based on lifestyle of university students Product Strategy: Multimedia players would have cool sleek style loaded with features. The product would be perceived as a fashion statement, and be easy to wear with the garment as accessory. The product would necessarily be meshed with the personality of students. Price Strategy: This would hinge upon customer demand, potential substitute products, and stage of product in the life cycle. Promotion Strategy: Group discounts linked with gifts (as free with a laptop, or substantial discount with 3G mobile phone) can be considered. Seasonal offerings, as at the start of a semester could also boost up the sales. Segment 2: Based on age group, both domestic and international markets Price Strategy: For domestic market, pricing against competition, especially, the products of foreign manufacturers, will be the driving force. With high volumes of sales against customer demand and market share, pricing advantage could be gained with increased volume of sales. For international markets, market penetration may be achieved with lower profit margins to begin with, beating competition both on price, and equivalent, or better quality. Promotion Strategy: Branding of product, and top-of-the-head recall, should be the sales mantra. Aggressive marketing in media, print, and on-line, would be particularly required to penetrate foreign markets, and compete with other international brands. Unique jingles, catchy tag-lines, and gift schemes, along with other forms of attracting the customer (like lottery or package tours), will also be considered based on volume of sales, and market demand. Promoting the product through popular brand ambassador would help positioning the product in foreign markets. Sales exhibitions and consumer product expo's could also be used, as necessary, Place strategy: On-line stores, retail stores, or direct sales could be employed to reach the customers swiftly and effectively. On-line marketing for global markets would especially be useful. Product Servicing: This could be a great differentiator with 24x7 service facility or on-line help desk to assist the customers in cases of difficulties or emergency. Backup service to sales could also help in establishing a unique selling proposition. Marketing Mix Product Life cycle: LCD television is still on the growth phase of product life cycle. However to retain competitive edge, product enhancements would become necessary. New features could include all-in-one combo offerings to include cable broadcasts, internet, and gaming. It would be necessary to scan the markets, and assess the market demand for such features. While MP3 sales is beginning to decline in developed markets, they still hold sales potential in developing markets, more so, with luring cash discounts. MP4, although it is on the growth curve, would need to compete with products like iBangle of Apple, and mobile phone segment which feature, multimedia players. MP5 is already making waves in the market. Product Offerings: The product offerings could be broadly classified into three categories: standard, premium, and customized, which would meet customer expectations of different market segments. Pricing: For international markets, under-pricing, and discounts, may help penetrate the market, more so, against established competition. Of course most of pricing decisions would rest on the customer demand, and disposition of competition. It has to be borne in mind that shelf life in consumer electronics is small, and therefore, market would be rapidly flooded with new generation products. Place Decision: Retail stores, on-line stores, and direct sales are options that can be exercised. For international markets, on-line stores could help penetrate unknown markets effectively. Road shows in universities in U.K. (which is one of our chosen market segment) would help boost sales, especially during academic start periods. 200 additional retail stores worldwide would be opened in the next one year, by the company. Promotion: Vigorous promotion strategies must be executed with finesse. Since there is so much talk about climate change, products with a "green orientation" would appeal. Electronic and print advertising, prominent display boards, mailers, and bulk messaging can also help. Strong presence in exhibitions and road shows will immensely help in branding of products and the company. Service Centres: Product guarantees, and prompt servicing, or 24x7 help desk, would help building customer trust and credibility in the market. For international markets in particular, this could be a big differentiator. Franchisee model for sales and service can be exercised, both in domestic, and international markets. Overall, despite current economic slowdown, LCD televisions and media players would remain in vogue with growing market trends worldwide. Competition would grow, more so, from Chinese and the developing world, where lower cost of production would be a major pricing advantage. The technological convergence between communication and entertainment would continue to demand introduction of new products loaded with latest features. References Office for National Statistics, 2008. Population Estimates. Available at: http://www.statistics.gov.uk/cci/nugget.aspID=6 Palmer, A., 2009. Managing the Marketing Effort. Introduction to Marketing. OUP, U.K. Research and Market, 2007. Worldwide Demand Remains Strong for MP3 and Portable Media Players. Available at: http://www.researchandmarkets.com/reports/549755 Sony Annual Report, 2009. Annual Report and Business Growth. Available at: http://www.sony.net/SonyInfo/IR/financial/ar/2009/index.html U.N., & Morgan Stanley, n.d. Emerging Markets. Available at: https://www.invescoaim.com/pdf/emergingmarkts-graphs.pdf Read More