A 3-Year Marketing Plan for a new smart phone - Coursework Example

Matching international standards would not be easy and the company would need a massive investment (shown in detail in the Financials heading) and the capital will mostly be used in marketing activities and recruiting trained professionals. In addition to that, Vertigo would be operating on a low margin as we plan to keep prices competitive in order to attract more customers. This would limit the revenue earning capacity of Vertigo however this will be refuted by overall increase in sales as a greater market will be attracted towards a low priced high quality product.

Because of the growing market, Vertigo is projected to generate a steady rising revenue increasing Contribution Margin to Sales. On 7th May, 2009, a long-awaited recommendation on the mobile termination rates to reduce termination charges was adapted by EU by the end of 2012. (berr.gov.uk). On 1st April, 2010, a statement with a further consultation was issued to the mobile number porting process in which the porting time took one day (berr.gov.uk). The standard Value Added Tax rate is 17.5%, however, it will be increased to 20% in January 2011 (hmrc.gov.uk).

The call tariffs indicate that calls may be charged by any residential or business package selected as the Charge Costing Package (telecom-tarriffs.co.uk). This implies that the market for mobile phone users is likely to be damaged as the call rates may rise because of the increases in tariffs mentioned above. Apart from that, the mobile operator companies are likely to introduce new packages to attract more consumers. This would directly have an impact on Vertigo as the demand for cell phones would rise pertaining to offers and packages introduced by Operators (Gruber, 2005).

UKs economy grew to 0.4% in the first quarter, 1.2% in the second quarter and 0.8% in the third quarter of the year 2010 and inflation stands at approximately 4% (statistics.gov.uk). The average employment income is £16761 (worldsalaries.org/uk.shtml). The exchange