Marketing Plan of Gorilla Glass Screen and Tempered Glass Protectors - Case Study Example

Marketing plan Name: Institution 6.0 Executive summary As technology advances so does the need to become a global village. Smart phones help make the world a global village since it allows for connectivity just at a tap (Ackloo, 967). These are expensive gadgets and therefore once one purchases one, they need to protect it against screen breaking and scratches. This is because a crack on the screen can easily make the smart phone not perform as efficiently as it otherwise would (Ballagas, 75). A smart phone can get a crack or scratch on its screen when the phone falls down from a high surface or even simply from sand in a pocket. It is therefore important to have a good screen protector for the smart phones in order to retain its original screen intact (Ross, 837). It is also overly expensive to replace the screen of the smart phone when it gets broken from the manufacturer. This report highlights on the various advantages that the plastic screen protector has over the tempered glass protectors and the Gorilla glass. It also puts across guidelines, goals and objectives for the first financial year. It also incorporates a budget forecast that reveals the outlook of the proposed business as positive considering the high profit margin. The business aims at providing value for its customers at an affordable price without compromising on the quality of the product. The business also incorporates the element of environmental conservation since it focuses on using recycled plastic material. This therefore makes it an eco friendly business. 6.1 Current situation Smart phones are expensive gadgets which are overly essential in the day to day operations of people as it guarantees convenience. Spending a lot of dollars on one then having to deal with a scratched screen should be something of the past (Ross, 7). The consumer needs to get value for their money bearing in mind the expensive nature of these gadgets without having to worry about having the screen broken every time their smart phones drop (Chen, 245). Many people opt for screen protectors to protect those screens, but they have become less necessary. Now, modern devices have more advanced screen protection that is built-in known as Gorilla Glass. Screen protectors aren't however not as necessary as they once were, but they can still be useful. This is so because Gorilla Glass screen and tempered glass protectors can still get scratches and can even crack if the phone is cracked (Long, 177). But tacking a closer look, they still come in handy especially because it's far easier to replace the glass protector than our phone's screen itself. People are now opting for plastic screens because they are much cheaper than tempered glass ones. The price difference is because of the quality of the plastic or glass, and technologies applied to it like an oleo phobic coating (Richardson, 864). Due to the poor quality, plastic protector feel different especially in terms of how smoothly the finger glides while tempered glass protectors feel more like the original screen.   Our company will aims at integrating both quality and affordability without having to compromise on the standards of the product.  The company will incorporate the sensor on the lens approach which has a great advantage over on-cell solutions. Moreover, a plastic screen will be used as an alternative for tempered glass ones because despite its affordability, it is resistant to scratches and breakages (Ross, 070). Therefore, sensor on a special kind of plastic screen will be ideal especially because it will reduce the difficulties created by having a plastic screen by providing a similar feel like an actual screen (Richardson, 646). The business will have humble beginnings but will expand its operations and increase its market share in the long term. 6.2 Marketing objectives In the first year of operations, the company aims at making remarkable strides in terms of its marketing objectives. It has set out SMART objectives which are specific, measurable, accurate, realistic and time-bound. The marketing objectives include: Achieve a 90% customer satisfaction Complete at least 2 surveys based on customer satisfaction within the first year of operation Attract 190 new clients per month Have an insurance plan for clients in case of screen breakage 6.3 Target market A target market refers to a specific classification of clients upon which the company aims its services and products. The company aims at offering a reliable and quality smart phone screen protection, reducing the cost of life and environmental preservation through plastic recycling. The company targets every smart phone user, which is approximately 50% of the entire population that uses cell phones. The company has made a set of segmentation that is usable, a process that is very useful in creating profiles of clients based on a deep understanding of the needs of clients in the various segments (Norris, 19). This profile will also come in handy in the process of business opportunity identification. Behavioral segmentation aims at dividing the client base on their response to the product, how well they know the product and how often they use the product. With this kind of segmentation, it will be easy for the business to identify the niche of people who will frequently need the product (Ross, 070). Such details will come in handy especially in the marketing strategy of the business in the quest to maintain its loyal customers while attracting new clients. 6.4 Marketing strategy 6.4.1 Positioning and product/service In order to gain an upper hand with competitors, it is necessary that the business understands the criteria that their target consumers employed while evaluating competitor products available in the market. This way, the business will have a leeway at convincing the clients of the advantage of its product as compared to that of the competitors (Kita, 592). It is important that the business appears to be providing a superior customer value and it is through this way that it will gain competitive advantage. For the business, it is necessary that the clients understand that the plastic screen protectors, unlike the Gorilla glass and tempered glass screen protectors, are scratch and break resistant no matter how many times the phone drops (Park, 867). Moreover, the plastic screen protector will be enhanced with a sensor on the lens approach which takes away the different feel of plastic screen protectors as compared to the usual screen. This sensor on the lens approach has a greater advantage over the usual on cell solutions. The business also intends to provide information about phone insurance to their clients. Replacing a broken phone screen from the manufacturer is very expensive but having an insurance cover takes a little weight off the customer’s shoulders. In a competitive environment, the business ought to offer quality products. Plastic screens are not only affordable but they also come in handy in the process of environmental conservation. A lot of recycling will come into play and by so doing the amount of waste will be reduced (Thomas, 454). This will not only provide the consumers with value for their money but also expose them to a more reliable product that is eco friendly. Having a clear cut distinction between us and other competitors is essential. In order to achieve this, the business seeks to utilize the loyalty scheme. This will be able to categorize the frequent customers and tokens will be awarded to them. 6.4.2 Price Pricing strategies and goals are determined by various factors including outside competition and economic trends. Prices can be equated to the non monetary and monetary value that customers are willing to exchange for a particular product. Outside forces like the economic trends and competitors can have a negative influence on the operations of the business in terms of pricing. However, the business aims at keeping such negative effects at the very minimal by keeping a strong focus on long lasting customer relationships which will result from customer satisfaction. Considering the fact that this business environment is a monopolistic one, the business needs to thrive nevertheless. In order for this to be attained, the business needs to keen on the value they offer their customers. It is also essential that we consider the pricing range of competitors and it is only through this way that we are going to remain relevant. Also, while doing this, customer delight should be a priority at all times regardless and in the long run, this will lead to the generation of a lot of profits for the business. The business aims to use a value based pricing strategy which will place it as a mid range product in the market. This will be able to have high appeal for the young people who are the majority users of smart phones. It is of great importance to build customer confidence and trust in the product since they will know they are receiving excellent value. The major driving force for our pricing goal will be a combination of sales and profit oriented factors. Research conducted revealed that the cost of producing one plastic screen protector will be approximately $8.00. This means that the protector will be sold at approximately $12 leaving a markup of $4 per plastic screen protector. The table below shows a forecast on the estimated demand for the plastic screen protector. Population in local area 53832 No of plastic screen protectors sold per week 70 Total annual demand 203,484,960 Predicted share of market 10% Estimated annual demand 20348496 Estimated monthly demand 1,695,708 It is also necessary for the business to analyze its cost of production and what markup it has after deducting all the costs involved in production including expenses on wages which have been set at approximately 14% of the sales. The forecasted profit is estimated at $142,765 with a -3.9% return on investment. The pricing strategy will be based on a penetrative type strategy with the anticipation that the demand for the product will grow and since the customers will have gained the confidence in our product, they will be willing to pay a little extra for the product. 6.4.3 Place/distribution Channel structure- The involving process of recycling will not be part of our production process. We will be purchasing the processed plastics from recycling industries after which we come and do the shaping based on the screen sizes of the various smart phones available in the market. A direct channel structure will be used where the plastic screen protectors are made on site and sold to customers over the counter for immediate consumption. This will however be effective for the early stages of the business because as demand increases, we will also need to consider having a warehouse for storage before distributing them to the various established stores. Distribution intensity-In the early stages of the business, there will only be one outlet. The business will be using an exclusive type distribution intensity level where the products will only be available at the store that has been chosen. As the business grows in subsequent years, the tactic will have to change to incorporate the intensive level where all the designated stores will have in stock the same products with the same pricing. This will come in handy as it will help with increasing demand satisfaction for the product as it continues to gain popularity. Logistics- The supply chain will consist of three elements. The processed plastic will be purchased from recycling industries and delivered to the warehouse. It is from the warehouse that they will be transported to the site in required amounts for production and immediate consumption. 6.4.4 Promotion Target audience- The immediate communications target will comprise of the general population that uses smart phones. This does not have to be the immediate users but also friends and family who use smart phones. Communication goals- The business aims at informing its potential customers about the goods and services they offer as well what they gain in terms of value and advantage over the competitors. It is also necessary that there is generation of interest and awareness among smart phone users so that they know of the existence of such a product as plastic screen protectors. Further, the business aims at creating demand for the product and this will be achieved by letting the customer know its value (Thomas, 30). Lastly, the business will provide contact details including location. Message design- The business will communicate and promote the uniqueness of the product they are bringing to the market, the advantage it has over its competitors, its value and the competitive prices offered and the contact details of the business location and website details. Medium Advertising; $52,000 p/a a) Daily newspaper: combination of ½ full page ad and a banner at scheduled intervals b) Local radio station advertisements at peak times to ensure maximum exposure Sales promotion; $6,000 p/a a) Offer reduction in prices for the first 200 customers who visit the store and purchase b) Offer token bundles for loyal customers including installing free smart phone applications c) Offering advice to customers on the importance of having insurance policies for their smart phones 6.5 Marketing implementation Marketing and advertising our products is essential and do achieve effective levels of this, the following action plan will be implemented: Marketing activity Brochures and handouts of the products and the discount prices available Advertisements in newspapers and radio Have a database of loyal customers Have public relation campaigns emphasizing on the importance of insurance for smart phones 6.6 Budget Revenues Sales: 20348496 units @ approximately $12 each $244,181,952 Less production costs Ingredients: 20348496 units @ approximately $8 each $162,787,968 Less distribution costs Fuel $10,000 Less marketing costs Advertising $55,000 Public relation $5,000 Sales promotion $15,000 Database $5,000 Less other costs Utilities $50,000 Insurance $10,000 Rent $250,000 Projected profit $80,993,984 RETURN ON INVESTMENT Equipment purchased $37,000 Delivery truck $35,000 ROI= $80,921,984 (-3.9%) 6.7 Evaluation and control The success of the marketing strategies will be evaluated depending on the objectives including: Financial Wages are to be monitored every week after which they will be calculated against the sales. This will help ensure the store uses less than 15% of the total amount of sales on wages. Sales will be monitored weekly and this will be done through cash register reports to ensure that the targets are met. The ROI and profits will be calculated on an annual basis after every financial year. A comparison will be made to the budget Marketing Gauge customer satisfaction through having customers fill either online and in-store questionnaires Sales will be calculated after every financial year in the quest to determine the market share and if we have achieved the set targets Sustainability Recycling of the plastic wastes will go a long way in ensuring waste reduction and management. This makes this process an eco friendly one Societal Public relation campaigns on the importance of having insurance policy for the smart phones. This will come in handy as it will enlighten the public further. APPENDIX EXAMPLE OF PLASTIC SCREEN PROTECTOR References Ackloo, Andrew. "Protective cover." U.S. Patent Application No. 13/329,967. Ballagas, Rafael, et al. "The smart phone: a ubiquitous input device." IEEE Pervasive Computing 5.1 (2006): 70-77. Chen, Jengchung V., David C. Yen, and Kuanchin Chen. "The acceptance and diffusion of the innovative smart phone use: A case study of a delivery service company in logistics." Information & Management 46.4 (2009): 241-248. Norris, Cathleen, Akhlaq Hossain, and Elliot Soloway. "Using smartphones as essential tools for learning." Educational Technology 51.3 (2011): 18-25. Kita, Tetsuya, and Makoto Koizumi. "Attachable protective screen for image display device and installation method therefore." U.S. Patent No. 5,592,241. 7 Jan. 1997. Long, Bernard. "Tempered glass article and method of manufacturing the same." U.S. Patent No. 2,177,324. 24 Oct. 1939. Park, Han Jong. "Protector for smartphone." U.S. Patent Application No. 12/949,382. Richardson, Curtis R. "Protective case for touch screen device." U.S. Patent No. 6,646,864. 11 Nov. 2003. Ross, Mark. "Screen protector." U.S. Patent No. 7,070,837. 4 Jul. 2006. Thomas, Judith, and Robert Dean. "Screen protection kit having a sizing grid." U.S. Patent Application No. 10/454,030. Read More