Marketing Plan for Pixelart

8/9/2019 Marketing Plan for Pixelart

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Marketing plan for Pixelart

IMT Ghaziabad

Raghav Agarwal 09IB-041

Rahul Chatterjee 09IB-043

Rohan Agrawal 09IB-047 Saahil Juneja 09IB-049

Anuj Kalra 09IB-061



Executive Summary

Target group for these paintings have been elite group or high networth individuals in India.

Digital paintings are an innovation simply being evolved to bring art intothe mainstream of Indian society. The idea is to take the paintings of eminent artists to the broader segment of the Indian society who are

either art enthusiasts or want to flaunt affordable luxury. The art works will be licensed from eminent painters and their digitalillustrations will be presented in the digital frames.

With the use of LCD or more advanced technology high qualityillustrations can be produced.

The top .5% segment of Delhi NCR and luxury, First class hotels are

being targeted with this product. Total households targeted are 60750and 36 hotels. For the first 3 years we plan to operate in Delhi NCR only.

We will use interior designers for getting clients on revenue sharingmodel.

A web portal will be established for easy order and display.

We will actively promote and display our product in art galleries.



Company Description

Pixelart has been established by five very innovative entrepreneurs of

IMT-IB batch 2011.

The company has the philosophy of combining new age technology with

traditional art works by budding artists to make art affordable to a larger

segment of society.

The company is striving to first exploit the lucrative market of Delhi NCR.

The company also believes in CSR and has a goal to promote art from

budding and lesser known artists.



Mission and Goals

Pixelart¶s mission is to be the leading vendor and

marketer of digitized paintings in India. Pixelart wants to

provide complete digitized painting setups to consumers

including the plasma screens and the high quality digitallicenses of the latest artwork. The goal is to make works

of art affordable to more people and to give an

opportunity to emerging artists to exhibit their talent and

gain exposure. Pixelart intends to bring modern Indian

art to Indian homes using the latest digital technology.



Financial Goals

1. Obtain financing for purchasing licenses of known faces

in Indian art apart from the new artists.

2. Reduce Plasma screen costs by at least 25% and pass

on half the benefit to customers.

3. Increase sales by at least 30% for the first three years

and at least 50% for the following two years.



Non Financial Goals

1. Own licenses for at least 75 works belonging to

emerging and mid-career artists and at least 15

belonging to established Indian artists.

2. Spread operations from Delhi-NCR to other major cities

including Mumbai, Kolkata, Chennai, Bangalore andHyderabad.

3. Develop a successful and secure Internet site providing

product details and channel for sales.

4. Form a large network of partners including prominentart galleries, interior decorators and artists.



Core Competencies

P ixelart wants to capitalize on the first mover¶s advantage in

the Indian market and build a strong foothold developing the

following core competencies in the process:

High-quality digitization of original licensed artwork using

latest camera and scanning technology; and advancedtechniques including digital stitching.

Panel of art connoisseurs and experts for making decisions

related to investment in upcoming and established artist.

Marketing of acquired licenses through a strong network of interior decorators and art galleries.

Developing a reputation among emerging artists as a

credible platform for exhibiting their work.

Making contemporary art affordable



SWOT Analysis

Strengths

Ease of access and payment through interactive website. High-quality digitization capability.

High-quality Plasma screens obtained from single manufacturer, ensuringgood quality control.

Weaknesses

Limited cash flow. Will have to look for credit options for high funding requiredinitially.

Too much reliance on expert panel, owners themselves not experts on art.

Reliance on single manufacturer.

Opportunities

Boom in Indian art scene in the recent years with price doubling in 4-5 years.

Increasing income levels especially among urban youth

Understanding and owning art considered a status symbol amongst the rich.

Use of modern technology. Expansion into related services in the future.

Threats

Product is not a substitute for real art work for art lovers.

Canvas prints of original paintings

Purchase of paintings as an investment rather than ownership-related-prestige

Pirated and fake prints



Marketing Objectives

There are two types of marketing goals

prevalent before us:

Short Term Goals

Long Term Goals



Short term Goals:

The fundamental objective of PIXELART is to first create

awareness about the product and its format which is first in its

class and also to gradually increase the sales volume.

Creating a good image of the company is of paramountimportance. Profitability is our primary concern.

Long Term Goals:

Expanding beyond the NCR region.

Collaboration with artists of national and international

importance.

Retention of our loyal customers.

Introduction of a sensor based GUI that changes the

paintings in its memory automatically according to the ambient

physical conditions and mood of the surroundings.

Marketing Objectives (Contd.)



Market Segmentation

Geographical Region

World Region: AS I A

Country: INDI A

City: DELHI-NCR

Demographic Factors for Households Age: 25+

Gender: ANY

Household Income: MORE TH AN 1 L AK N/MONTH

Occupation: S ELF-INCOMED; COR P OR ATE EXECUTIVE S ; BU S INE SS HOU S E S ; ENTERT AINMENT INDU S TRY P ROFFE SS ION ALS

sychographic Factors

Social Class: U PP ER-MIDDLE AND U PP ER-U PP ER

ife Style: ACHIEVER S

ersonality: EX P RE SS IVE; S TYLI S H; OP EN MINDED; CRE ATIVE



Target Segment

Particulars Value Total

Total Population 48600266

No. of households (avg.

4 members)

12150066

Target Percentage 0.5%Target Population 60750 60750

*percentage calculated on basis of consumer demographics

(Source: Wallet Monitor, IMRB International)

We have dual target of reaching civilian population and

branded hotels (Luxury and first class). In the first phase

which will last for 3 years we will target Delhi NCR.

S ocio-economic classification of households in Delhi NCR



Target Segment

Particulars Value Total

Total Hotels in Delhi

NCR

140

r 4.

irst Class

Target

So r e: HVS International

.h sinternational. om

Branded hotels in Delhi NCR represent a major target segment for o r

inno ati e prod t. Hotels ha e good finan ial strength and strong desire

to appeal their g ests. We ill target l r and first lass branded hotels

a ross the region



Marketing Mix



Product Strategy

Characteristics of the Paintings

The paintings will be available only

through the internet (company

website).

They will be original rendition of theart wherein a copyrighted scanned

image of the painting will be used.

The digitized format of the painting

will be compatible with only the

technology provided in the GUI.

The size of the painting is going to

be modified to have the best fit for

the GUI screen.

Certificate of originality for the

paintings is going to be provided for

every purchase

Specifications of GUI

Resolution: 1920 X 1820 pixels

Size: Fixed sized GUI of 42inches diagonally.

Memory space: Depending onthe model the memory spacewill be either 125MB; 256MB;512 MB or 1 GB.

Format: The GUI will only becompatible with paintings withthe unique extension provided

by the company. Incorporated technology will

allow a slideshow representationthe paintings if multiple paintingsare stored in the GUI¶s memory.



Placement Strategy

Direct Marketing Channel

The company website http://www.pixelart.com will serve as

the direct point of contact for the customers.

This website will be a comprehensive database of all

available paintings and will contain details of the artists

along with the prices. The paintings will be on display.

The GUI will also be on display in the site along with all the

necessary details with the specifications and technicalities.Consumers can buy the paintings and the GUI from this

portal.



Strategic tie ups with Interior Designers: Thetarget market is fashion conscious and aestheticallyinclined. Tying up with interior designers is a logicalstep to cater to our TG. According to prevailingmarket conditions an interior designer demands acut off of about 3% to 5% for any luxury goods sold

through their reference. We will offer a cut of 3% onthe selling price of the product.

Advertising and showcasing in galleries: Theproduct (GUI and digitally formatted painting) can bedisplayed at various galleries which showcase theproducts of budding artists. Advertisements of theweb portal alongside the product can be done to

raise awareness. Through contracted artists: Art shows of thecontracted artists can serve as a channel of marketing our product. The personal web sites of the artists under consideration will also be used as a

iral Marketing strategy of the company¶s webportal.

Indirect Marketing Channels



Region Decorator

Delhi Sudesh & Associates

Shriji Mercantile Co.

Noida Sonali Decor Design

Singh Decors

New Tech Interiors & Art

Gallery

Gurgaon MLS & Co.

Parichya Interiors

S.G. Lakhanpal &

Associates

Faridabad Modern Design

Consortuim

Concept Designers

This is the list of

potential decorators we

have zeroed in on for

strategic tie-ups.

This distribution

strategy is only for the

first 3 years.

After that more

aggressive distribution

strategies will be

formulated based ondemand.

Electronic retail stores

can be targeted in the

future for stocking the

GUI.

Distribution Strategy



Promotion Strategy

Our promotion planner takes into account:

The type of market

Sales promotion objectives

Competitive conditions

Cost Effectiveness of the promotion tool



P romotional Tools

Tie-in Promotions: We will use the leverage of alreadyestablished Interior Designer brand names to sell our products. It will be a win-win situation in which they will get acut off of 3% on the selling price.

Point of Purchase Displays and Demonstrations:Demonstration of the GUI at galleries portraying art work of budding artists.

Product Warranty: The GUI will come with an explicitwarranty of 5 years.

Advertisement in life style magazines: we have targeted 3life style magazines with a healthy distribution rate in the NCRregion for advertisement of the product and the web portal.They are namely Architectural Digest; Inside-Outside;Best Interiors.



Pricing Techniques

Cost based pricing:

It involves adding a markup to the cost of the product.

Competition based pricing:

Setting prices based on the prices the competitorscharge for similar products is called competition basedpricing. Consumers will base their judgments of aproducts value on the prices that the competitorscharge for a similar product.

alue based pricing:

In value based pricing price is based on the buyersperception of value rather than on sellers cost. Anincreasing number of companies are basing their priceon the products perceived value.



Pricing for LCD screens or GUI

alue to the customer for a 42¶¶ LCD screen

is Rs. 50000

Doing a cost analysis of the same we arrived

that it can be obtained from the manufacturer

at a cost of Rs. 35000.

Hence we will be providing the LCD screen at

a price of Rs. 40000 sharing the benefit of Rs15000 between the customers and ourselves

in the ratio of 2:1.



Pricing for the digitized painting

The pricing for the painting will be on a differentialbasis. Every painting is distinct in its own and alsothe copyright deals vary from artist to artist. Itdepends on the negotiations and other deal

factors.So the cost details are:

Digitization cost: Rs 2000/ Painting

Licensing cost: 10% of the market value of the

painting plus 7% to 15% as royalty The price of the painting will lie in the range of 30% to 60% depending on the popularity andexclusivity of the painting.



Future Projections

Particulars 2010%

change2011

%change

2012

Households 608 30 790 30 1027

Hotels 70 15 81 15 93

Total sales 678 871 1120



Future Projections

Particular value

Target households* 60750

1st year target 1%

sales 608

Yearly increase 30%

2011 sales 790

2012 sales 1027

Total marketcaptured 2012 end

4.4%

Particular alue

Total hotels In

Delhi NCR# 140Luxury 24.8%

First class 27%

Total 73

2010 sales 702011 84

2012 97

Hotel CustomersHousehold Customers

*Source: IMRB #Source: H S International



TH AN K YOU

Marketing Plan for Pixelart

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