Marketing Plan for Orange Inc 1
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Transcript of Marketing Plan for Orange Inc 1
MARKETING PLAN FOR
ORANGE INC.
SUBMITTED TO: SUBMITTED BY:
PROF. RADHAKRISHNA ANKITA MISHRA
JAYASHREE KOTAGI
SHAINIKA MURTHY
SHILPI SARKAR
SUMALYA CHAKRABORTY
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TABLE OF CONTENTS
1. Executive summary……………………………………………………………………………………..03
2. Company description…………………………………………………………………………………...03
3. Strategic focus and plan………………………………………………………………………………...04
3.1 Mission………………………………………………………………………………………….04
3.2 Goals……………………………………………………………………………………………04
3.3 Core competency and sustainable competitive advantage……………………………………..04
4. Situation analysis……………………………………………………………………………………….05
4.1 Company analysis………………………………………………………………………………05
4.2 Customer analysis……………………………………………………………………………....06
5. Product market focus…………………………………………………………………………………...06
5.1 Marketing and product objectives……………………………………………………………...06
5.2 Target market…………………………………………………………………………………..07
5.3 Customer value proposition……………………………………………………………………07
5.4 Point of difference……………………………………………………………………………..08
6. Marketing program…………………………………………………………………………………….08
6.1 Product strategy………………………………………………………………………………..08
6.1.1 Product line………………………………………………………………………………..08
6.1.2 Unique product quality…………………………………………………………………….08
6.3 Price strategy……………………………………………………………………………………09
6.4 Promotion strategy……………………………………………………………………………...10
6.5 Distribution strategy…………………………………………………………………………….10
7. Five year projections……………………………………………………………………………………11
8. Implementation plan……………………………………………………………………………………11
9. Evaluation and control………………………………………………………………………………….12
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1. EXECUTIVE SUMMARY
Orange Incorporation is into the microcomputer business and has introduced two new brands Securus
and Optimus targeted at the Workhorse and the Innovators segment respectively. The two brands will be
sold through company-owned sales offices located in Chicago, Berlin and Rome. The products will not
be sold through the retail stores. The marketing strategy will be tightly focused on direct sales to
business customers. Orange Inc is competing with Masstech, Innovatus Computing and Globosoft
Computers Ltd. in the Workhorse segment and Innovatus Computing and Graph Infosystems Ltd. in the
Innovators segment. The brands were designed keeping in mind the interest of each segment like ease of
use for the workhorse segment and high performance for the innovators segment.
2. COMPANY DESCRIPTION
Orange Inc was started by Ankita Mishra ,Jayashree Kotagi, Shainika Murthy, Shilpi Sarkar and Sumalya
Chakraborty to manufacture and market a unique line of microcomputers for business markets.
Accordingly the company has hired highly qualified people from similar industries having sufficient
experience in the specific roles and is ready to pay them compensation which is slightly above than the
industry standards. The various personnel who have been given the job roles are as follows:
RESPONSIBILITIES
Officer Name Primary Responsibility Secondary Responsibility
JAYASHREE KOTAGI VP-Finance VP-Marketing Research
SHAINIKA MURTHY VP-Brand Management VP-Advertising
SHILPI SARKAR VP-Sales Management VP-Brand Management
ANKITA MISHRA VP-Advertising VP-Sales Management
SUMALYA CHAKRABORTY President-Overall Leadership VP-Finance
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3. STRATEGIC FOCUS AND PLAN
The strategic focus and plan mainly deals with the mission, the goals and the core competency of
Orange Inc.
3.1 Mission statement for Orange Inc
Orange Inc. is committed to bringing the best personal computing experience for creative professionals
around the world through the invention, development and manufacture of the industry’s most advanced
computer systems.
3.2 Goals
The main goals of Orange Inc are:
i) Focus on smaller high margin segments
ii) Focus on geographic markets with highest potential demand
iii) Establish brand image and brand loyalty in the market by giving maximum importance to
quality.
3.3. Core Competency and Sustainable Competitive Advantage
Orange Inc believes that its core competency lies in the ease of use of its products and their high
performance. Hence Orange Inc has entered the Workhorse segment.
Also it wanted to manufacture a different variety of PC’s which would help in handling large
computational problems faced by many and wants to use the latest technology as far as possible. This
made Orange Inc to enter the Innovator segment. However overall the core competencies of Orange Inc
can be summarized as:
i) High performance and ease of use.
ii) Flexible rugged products with capacity of handling large computational problems.
iii) Made for the common man.
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4. SITUATION ANALYSIS
Present condition of the PC-Manufacturing Industry:
A market research plan was brought by Orange Inc before they went ahead with the actual sales to
gauge the potential demand in the various market segments. The Competitors of Orange Inc were
i) Masstech
ii) Innovatus Computing
iii) Graph Infosystems limited
iv) Globosoft Computers limited
From the results of the marketing survey the following information could be inferred about the
industry.
In the Workhorse segment maximum demand existed for Masstech and Innovatus Computing
followed by Orange Inc.
In the Innovators segment Masstech and Graph Infosystems were leading.
Overall total demand was least for Orange Inc as per the results of the Marketing research report
which raises significant concerns.
The industry was as such fragmented with various players entering various market
segments.Workhorse, Innovators & Cost Cutter segments were mostly entered by all the competitors
and stiff competition existed in the same.
Post test market results after actual implementation it was found that in the Workhorse segment,
maximum demand existed for Innovatus Computing and Globosoft Computers Ltd.
Innovatus Computing outperformed all the other players in the Innovators segment by creating a blue
in red with staggering results. Though with a significant division Orange Inc held the second position.
4.1 Company Analysis:
Orange Inc’s products compete in the Workhorse and Innovators segments in the U.S and European
markets. The company’s commitment towards bringing the best computing experience for creative
professionals around the world through the invention, development and manufacture of the industry’s
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most advanced computer systems will ensure that the company stays ahead in terms of competition and
market share. The company does not sell through retail outlets and focuses only on direct selling. Orange
Inc’s brands Securus has been well received by the workhorse segment because of its low price and
distinctive features. One of the differentiating factors of Orange Inc’s products are that they make use of
green technology which makes them environment friendly.
4.2 Customer Analysis:
Workhorse segment: The Workhorse segment is the largest group of customers. They want an easy to
use PC for office workers. It should also have a modest price.
Innovators segment: The Innovator segment is a small segment that needs a computer to handle large
computational problems (accounting, inventory management, engineering). This segment wants the latest
technology and will pay a small premium for this high performance.
5. PRODUCT MARKET FOCUS
Our marketing and product objective is to start of and concentrate on the work horse and innovators
segment. These segments were chosen, so that we could cater to the needs of the low end and high end
customer without changing too many characteristics of the product and prices though different will not
vastly vary.
5.1 Marketing and Product objectives
Current market
We have currently opened sales offices in Chicago ,Berlin and Rome. Chicago and Berlin offices
were opened in the first quarter and have been operating ever since. We opened offices in Chicago
and Berlin because they had the best market for innovator and workhorse segment.
New market
Sales office has been opened in Rome as there was a great demand of 4,529 in the work horse
segment, while an equally good demad of 2,711 for the innovatus segment. Since our business was
doing well in the work horse segment, we decided to concenrate there.
Products
The products we choose for the 2 market segments were Securus and Optimus , while Securus is for
the workhorse segment,Optimus is for the innovators segment.The features for Securus initially
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included basic features like standard desktop,standard hardisk size,mid range processor etc and the
core requirements like safety and ease of use required by this segment were not compromised upon.
Optimus for the innovatus segment had better features like High capacity hard drive, Business
graphics software, Engineering graphics software, High performance processor etc
New Products
Since our competitor’s products were priced much higher than our, we saw that our customers were
willing to pay more for our products .Hence improvised our products with better features and
increased the prices .Our new products were -
Securus 1.1 which had features like high capacity hard drive, accounting/bookkeeping software, 15"
monitor for desktop, mid-range processor, expansion slots for adding new devices etc
Optimus Pro which had features like very high capacity hard drive, business graphics software,
engineering graphics software, web design software, 19" high resolution monitor for desktop, high
performance processor etc
5.2 Target Market
We choose the Innovators and Work horse segment as their needs were close to each other , besides
we wanted to target 2 niche set of customers. The other reason for choosing these segments was the
market size available, the innovators had a huge market size of 3284 in Berlin and 2692 in
Chicago.The Workhorse has a market size of 5672 in Chicago and 4922 in Berlin. The innovators
segment had most important needs like fast access to graphical images , quick response speed , fast
computer links, ability to handle large tasks.The Workhorse segment needs were safety , security,
ease of use, low price etc.
5.3 Customer Value Proposition
To give our customers an advantage over our competitors we concentrated on product features,
we made sure our customers were always beyond satisfied to own our products.
The distictive competitative advantages we concentrated on were –
To be the market share leader
To be the high service provider in the market
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To provide the most reliable product on the market
To make sure we provided all the above mentioned advantages we concentrated more on the
product, we made sure the product satisfied all the customer’s needs even if it meant incuring
more costs.
5.4 Point of Difference
To make sure we provided the above mentioned advantages we provided service support in each
market , and also to make sure the services provided were upto standards we quartely training to
the sales and support staff. The quarterly training was provided only for the staff catering to the
innovators segment as they were more demanding and needed better sales force to drive sales.
6. MARKETING PROGRAM
The four marketing mix elements for the products Securus and Optimus are detailed below:
6.1 Product strategy:
Orange Incorporation has two brands Securus and Optimus targeted towards the Workhorse segment and
Innovators segment respectively.
6.1.1 Product Line: Securus 1.1 is the first product to be launched under the Securus brand.
Optimus Pro is the first product to be launched under the Optimus brand.
6.1.2 Unique Product quality:
Securus 1.1 is the ultimate desktop workhorse with features that promote a hassle-free experience. One
advantage of Securus 1.1 is the LED backlit display. Unlike displays that take up time to warm up before
they reach maximum brightness, an LED backlit display is instantly on and uniformly bright which is
easy on the eyes. It also lets the user finely tune the display to suit the ambient light even the dimmest
room. The user can also have the perfect cord-free setup with the wireless mouse. Besides these, there’s
no shortage of ports on the Securus 1.1 with 4 USB ports which enables the user to simultaneously work
on multiple things.
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Optimus Pro is the all-in-one wonder with multiple features that enable high performance. Powered by
quad-core processors, the Optimus Pro is ultrafast and ultraflexible. with advanced HD graphics
processors, Optimus Pro can perform upto 3 times faster. The latest wireless technology in Optimus Pro
makes it effortless to connect to a Wi-Fi network. It automatically finds available networks and lets the
user join them with a click. Bluetooth wireless technology is also built in, so the user can use their
favorite wireless accessories right out of the box.
Both Securus 1.1 and Optimus Pro make use of green technology which makes them environment
friendly.
6.2 Price strategy:
Securus 1.1 is priced at $3040 for a 15” display screen in both US and Europe markets. Optimus Pro is
priced at $3940 for a 15” display screen in both US and Europe markets. The significant high
performance advantage that Optimus Pro has over Securus 1.1 justifies this pricing strategy.
6.3 Promotion Strategy:
Securus 1.1
Optimus Pro
Key promotion features for Securus 1.1 are detailed below:
Print media: Targeted newspaper and magazine ads can be effective brand builders and acquisition tools.
The ads of Securus 1.1 will be placed in business newspapers and journals, trade and technology
magazines which will ensure wider coverage.
Television: Featuring ads of Securus 1.1 on TV will offer a unique combination of audio and visual
impact and audience reach.
Outdoor: Billboard ads can be a cost-effective way to reach out to a larger number of potential customers.
Event marketing: Promoting Securus 1.1 through live activities such as seminars, company-sponsored
meetings and trade shows will help in qualifying leads and enhancing customer relationships.
Website: The website will enable customers to have complete and up-to-date information about Securus
1.1 and also provide prospects an easy way to contact the company.
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Search Engine Optimization (SEO): This will ensure that the web page of Securus 1.1 appears at the top
of search engine results when certain keywords or phrases such as “Securus”, “Orange Incorporation”,
“Securus Orange Inc”, etc are typed in search engines.
Key promotion strategies for Optimus Pro are listed below:
Print media: The ads will be placed in business newspapers, magazines, journals, trade and technology
magazines which will enable wider coverage.
Television: the ads of Optimus Pro will be featured on TV which will ensure a wider audience reach.
Outdoor: Billboard ads will be placed for Optimus Pro in order to reach out to a larger number of
potential customers.
Event Marketing: Live activities such as seminars, company sponsored meetings and trade shows will be
held.
Partnerships: Orange Incorporation will tie up with corporate giants to create a customized webpage for
each of them that will be accessible only to the employees of those companies.
Collaterals and giveaways: Business cards, brochures, mouse pads, etc will be given away to make an
impression.
Email marketing: This will provide a quick and inexpensive way to inform customers and prospects
about offers in turn strengthening customer relationships.
Website: The website will provide the product details, offers, etc.
Search Engine Optimization (SEO): this will ensure that the web page of Optimus Pro will appear at the
top of search engine results.
6.4 Distribution:
Both Securus 1.1 and Optimus Pro will be distributed through direct selling. Both the products can also be
purchased online through the company website.
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7. FIVE YEAR PROJECTIONS
8. IMPLEMENTATION PLAN
Introducing Orange Inc’s products to top cities in U.S. and Europe is a complex task and requires that
creative promotional activities gain consumer awareness and initial trial among the target market. The
anticipated rollout schedule to enter these markets is as follows:
Roll out schedule to enter new US and Europe markets:
Quarter New markets added Cumulative markets Cumulative predicted
market share
4 1 3 2%
5 2 5 20%
6 5 10 40%
7 3 13 50%
8 2 15 60%
The diverse demand for the products will be monitored carefully to assess whether minor modifications
may be required in Orange Inc’s products.
Projections
Financial Element Actual Q5 Q6 Q7 Q8
No of PC's sold 121 300 760 1900 4800
Net Sales 444340 1110850 2777125 6942812.5 17357031.3
Gross Profit 130439 247834.1 470884.79 894681.101 1699894.09
Operating Expenses 788339 804105.78 844311.069 886526.622 930852.954
Operating
Profit/Loss
-1529111 -556271.68 -373426.28 8154.47855 769041.138
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9. EVALUATION AND CONTROL
Monthly sales targets have been set for Orange Inc for each market. Actual sales will be compared with
these targets and tactical marketing programs modified to reflect the unique sets of factors in each market.
The speed of the roll out program may increase or decrease depending on Orange Inc’s performance in
the successive markets it enters.