Welcome to our presentation

Welcome to our presentation Group no 02

Marketing plan for Walton Air Conditioner

Walton Hi-Tech Industries Ltd. is the one and only manufacturer of multi-staged Refrigerator, Freezer, Air Conditioner, Television and Motorcycle and is treated as one of the sophisticated manufacturing plant in Bangladesh and South Asia. Now Walton is going to emerge as an AC producer.

Marketing objective Be a market leader in Air conditioner market in Bangladesh within Five years. To build profitable customer relationship by producing environmentally better AC and getting them to market faster at lower cost.

Financial objective To achieve break even at the first year To achieve 25% sales growth in subsequent years and to achieve at least 30% mark up Capture 50% of local market share and contribute billion taka profit in company balance sheet from this business unit

Market analysis Intensity of rivalry Bargaining power of suppliers Bargaining power of buyers

Threat of entry

Threat of substitute

Bargaining power of suppliers No backward linkage is developed locally Raw materials are mostly imported Depended on foreign technological support Low influence over Suppliers

Bargaining power of Buyers Distributed through Own outlet Dealers and agents Local electronics retailers showroom Final customers have lots of option as reputed brands are offering high tech products Medium influence over buyers

Threat of entry Need high technological support and expertise to set industryHigh capital requirement and fixed cost High sunk cost Low threat of new entry in this industry from local market

Threat of substitute Substitute product of AC may be cooling fan , ventilator fan but those can not serve as required. So no close substitution for AC is available Very low threat of substitute product

Intensity among competitors Market is very much saturated with renowned brandsWorld class brands are competing with cutting edge technologyRapid innovation and diversification by competitors

Competition is very acute in market

Internal External

Low pricevariety of features After sales service Brand awareness

Dependency on Imported raw materialsInadequate Research and developmentLow differentiation

Increasing demandCost-efficient technologyGovernment support

Tight competitionCustomers perceptionContinuous change in technology

High income corporate customers Middle income and SME Lower middle income Lower income Market segments

Target marketHigher class customers

Economic class customers

Customers having higher income mostly corporate and business customers and household customers living in metropolitan cities having income of above 50,000 tk. market size: about 65-%70% users are located in this segments Market growth: market is growing about 40%-50% each yearAttractiveness: this customers are willing to pay premium price for environmental friendly and innovative product more over its market growth is moderate . Those data make the segment Attractive Segmented marketing

Higher class customers

Economic class customers

House hold customers having middle income, living in zilla towns, suburb or small town and villages: small and medium enterprises

Market size: comprises 30%-40%of market share Growth rate: 80%-120% growth rate.Attractiveness: this customers income is growing and they are demanding AC more and more. So this customers can be reached by already established brand and distribution channel . Those situations makes this segment Lucrative. Target market Concentrated or niche marketing

Positioning strategy Sophisticated ACOffering an environment friendly AC with sophisticated tech innovation like Eco- navigation and HD filter good sleep and anti bacteria coating tech. turbo cooling and anti-humidification tech.

Economic ACOffering a low cost, energy efficient user friendly AC with

durability and reliability Low wattTriple weather protected tech comfort air flow and efficient tech.

More For The Same Same For The Less

Pricing strategy Sophisticated AC

Adopting More For The Same strategy

Price range may be 90,000 to 120,000 tk.

Economic AC

Adopting Same For The Less strategy

Price range may be 45,000 to 50,000 tk.

Distribution channel Own outlet Dealer and agents Local electronics suppliers E- commerce

ACs marketHigher class corporate classMiddle income SMELower middle income Low income

Target marketHigher income and economic classMiddle and lower middle income

Objective Be Market leader in ACs market

Price

Product Promotion

Place

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