Business Strategy Development

Executive summary

Now a day’s marketing involved with business and most of the issues of business world deals with marketing. Technology is growing fast in Bangladesh, causing the cell phone is necessity at this time but a want amongst the Bangladeshi people. The next few years will show that more people in Bangladesh will be purchasing cell phones. Today customers expect more, have more choices and they needed the best for the amount they spend. So, marketing strategic plan has become so important in this aspect.

Keeping in mind the present global and Bangladeshi market scenario I have prepared the report to the best of my knowledge and suggested strategic frame work that they could have to implement to have competitive advantage in the market.

The objective of this project is to provide us with experience in applying the concepts and methods of marketing to a real – world opportunity.

History of mobile phone

The history of mobile phones records the development of interconnection between the public switched telephone systems to radio transceivers. From the earliest days of transmitting speech by radio, connection of the radio system to the telephone network had obvious benefits of eliminating the wires. Early systems used bulky, high power consuming equipment and supported only a few conversations at a time, with required manual set-up of the interconnection. Today cellular technology and microprocessor control systems allow automatic and pervasive use of mobile phones for voice and data.

By 1930, telephone customers in the United States could place a call to a passenger on a liner in the Atlantic Ocean. Air time charges were quite high, at $7(1930)/minute (about $92.50/minute in 2011 dollars). In areas with Marine VHF radio and a shore station, it is still possible to arrange a call from the public telephone network to a ship, still using manual call set-up and the services of a human marine radio operator.

However it was the 1940s onwards that saw the seeds of technological development which would eventually produce the mobile phone that we know today. Motorola developed a backpacked two-way radio, the Walkie-Talkie and a large hand-held two-way radio for the US military. This battery powered “Handie-Talkie” (HT) was about the size of a man’s forearm.

In 1946 in St. Louis, the Mobile Telephone Service was introduced. Only three radio channels were available, and call set-up required manual operation by a mobile operator. Although very popular and commercially successful, the service was limited by having only a few voice channels per district.

In 1964 Improved Mobile Telephone Service was introduced with additional channels and more automatic handling of calls to the public switched telephone network. Even the addition of radio channels in three bands was insufficient to meet demand for vehicle-mounted mobile radio systems.

Introduction:

We produce a new mobile set and launch in the market “name Orbit”. Orbit is preparing to launch a new multimedia, duel mode smartphone, the Orbit, in a mature market. Our product offers a competitively unique combination of advanced features and functionality at a value added price. We are targeting specific segments in the consumer and business markets, taking advantage of opportunities indicates by higher for easy to use smartphones with expended communications, entertainment and storage functionality.

OBJECTIVE:

Our purpose is to analyze the segmentation and current situation of our product.

The specific objectives are following-

• To analyze the segmentation.
• To analyze the consumer choice and preference.
• To analyze the positioning of our product.

Methodology

   Primary Data

   The primary data was collected from create a questioner about product feature to different type of people.

   Secondary data

   Follow different Mobile phone brand’s marketing strategy.

   Text Books.

   Internet.

Market Demand and Size

Demand

• Bangladesh has a young consumer market.
• This will be a potential target market because young adults in the Bangladeshi community want to be up to date with technology.
• Young people of Bangladesh today are more likely to spend money on technological items.
• Bangladesh will be advertising cheaper cell phones throughout the country so that more young people can afford them based on their income.
• With Bangladesh’s increasing GDP and average income, younger people will benefit from this growth and purchase more expensive goods.
• The cell phone trend is going to take off within the next couple of years throughout Bangladesh.
• Rise in per-capita will allow people to spend more on luxury items.
• The phones will be less expensive.
• The cell phone will eventually be considered a necessity

Market Size

• Estimated mobile user in Bangladesh approx 5.5 -6 million

• Estimated Sales last year of mobile Phones is 3.5-4 lakh

• This year sales would reach approx 5-6 lakh

Customer Analysis /Target Market.

Executive working class people, corporate people are our main target customer.

Besides young generation and students are also are our target customer because our product feature attract all of them.

Life style

College Youths

Working Executives

Geographical Profile

Urban and Semi Urban

Where there is mobile connectivity.

Multinational company and corporate office are developed every urban area of Bangladesh, these corporate people need smartphone.

Now young generation want luxury goods for digital life style.

PRODUCT OFFERING

The Orbit offers the following standard features:

• Voice recognition for hands-free commands and communication
• Hand writing recognition
• Voice recognition in set functionality
• Unlimited call recording
• Built in 120 GB space
• Processor – 528 MHz
•  All Android application support
• Wireless Web access and e-mail capabilities
• MP3 music downloading and player capabilities
• Business Tools – Calendar,  Alarm, Reminder, Notes, Converter, World Clock, Calculator, e-book, STK
• 4 inch LED display
•  Virtual keyboard for input
• Cradle for synchronizing data with PC
• Interchangeable case wardrobe of different colours and patterns for both male and female
• Global positioning system (GPS) for identifying locations, obtaining directions
• Built-in 10 mega pixel digital camera
• Translation capabilities from English text to Bangle text (other languages to be offered as add-on options)

Marketing environment of Orbit:

The current market of this product is changing very rapidly. This change varies for products quality, promotion, place (location) and price and also according to the needs, wants and factors in market environment. We know that the need of customer is very flexible and changeable. They turn into from one brand to another brand according to their needs, wants and demands what they preferences. On the other hand every product has a market environment and its factors also affect customer’s purchasing decision.

Micro-environment-

Micro-environments are fully controlled by a company it refers to the internal factors of a company that directly affect the concern’s ability to operate in the market effectively.

Macro-environment:

Macro-environments are out of control for a company it refers to the external factors that indirectly affect the concern’s ability to operate in the market effectively.

Demographic environment –

About more than 16 million people are living in Bangladesh where more than 60% people are educated. The market segment and targeted at men and women in the age groups of 17- 59 for mobile phone users.

Economic environment –

Economic growths are positive for last five years but pattern of income distribution is not good enough. People here want products of cheaper rate. The more lowly the price the more higher the customers want to purchase. So in this case our product price is standards for all level of customer.

Competitive Analysis

Direct competitors:

Nokia, LG, Samsung, Motorola and other Chinese brand

Indirect competitors:

Walkie-talkies, PDA’s

Market Share

Market Share of smart phones of different Brands in Bangladesh:

With the outstanding market potential the objectives on how much volume and share are nearly limitless for the next few years. Since there is such a huge market that needs the supply of phones as long as we have a good brand image almost all, if not all of our stock should be purchased. However setting initial goal of 70 thousand phones is not unreasonable and not to cost problematic.

This will also establish a decent market share. However, the market share of individual phones is ever changing. Since we are with a company which dominates the market share (Nokia, Samsung, and Motorola) and image. We must be having at lease 10-12% of market share for this fiscal year and gradually improve to be No.1 in days to come and I believe it is not at all impossible and ultimately.

Market segmentation

Geographically- our special concentration is on Dhaka. Moreover, we will concentrate at Chittagong, Rajshahi, Rangpur, Khulna and also Jessore.

Demographically – we divide our customers into two parts (base on design) according to age.

• For men 17-59.
• For women 17-59.

MARKET RESEARCH:

Marketing mix in our product that is 4Ps and 4Cs –

Price- Quality is oriented with price. Our product feature is slandered but we fixed competitive price.

Product- Well communication through entertainment and official work.

Place- Own branches and online.

Promotion- Advertisement and brand ambassador.

Marketing strategy

Orbit’s marketing strategy is based on a positioning of product differentiation. Our primary consumer target is middle- to upper-income professionals who need one portable device to coordinate their busy schedules and communicate with family and colleagues. Our secondary consumer target is high school, college, and graduate students who need a multifunction device. This segment can be described by age (16–30) and education.

Positioning

Using product differentiation, we are positioning the Orbit as the most versatile, convenient, value-added model for personal and professional use. Our marketing strategy will focus on the voice-recognition and hands free operation of multiple communication, entertainment and information capabilities differentiation the Orbit.

Marketing Strategies

The Orbit, including all the features described in the Product Review section, will be sold with a one-year warranty. We will introduce a more compact, more powerful high-end model during the following year, with GPS functionality and other features. The brand and logo will be displayed on the product and packaging and reinforced by its prominence in the introductory marketing campaign.

Pricing strategy

The Orbit will be introduced at 18590/=(customer ) estimated price per unit. Products feature is very standard, although we fixed competitive price.

Distribution Strategy

Our channel strategy is to use selective distribution to have Orbit Smartphone sold through our own area branches and online retailers. During the first year, we will add channel partners until we have coverage in all major Bangladesh mobile markets and the product is included in the major electronics catalogues and Web sites.

Warranty

Orbit Smartphone comes with a standard 1-year warranty for parts and functionality and 6 months for battery. The warranty excludes cosmetic damage whereas replacement casing may be purchased and then applied free of charge in Orbit Repair Centers.

Promotional Strategy

Advertising

The aim of advertising strategy is to increase the brand-awareness and brand-recall. While Orbit has been not able to establish its name in the mobile phone market and it has not successfully implanted its image in customers’ minds as the first mobile phone of their choices. The high priority of advertising strategy is to be able to communicate Orbit’s stance on giving its customers the ultimate mobile phones equipped with functionality suitable for the professionals and state of the art technology.

When marketing to the rural area we have to realize that they do not have various methods of communication such as internet and television. To market to the rural area markets we will place add in popular newspapers and magazines as well as send out mobile vans to market our product. Lastly we will participate in trade fairs and flea markets which are immensely popular in the rural area

Orbit SWOT Analysis:

Orbit has several powerful strengths on which to build, but our major weakness is lack of brand awareness and image. The major opportunity is growing demand for multimedia

Smartphones that deliver communication-specific benefits. We also face the threat of ever-greater competition and downward pressure on pricing.

Strengths Orbit can build on three important strengths:

1. Innovative product: The Orbit offers a combination of features that would otherwise require customers to carry multiple devices: speedy, hands free duel mode cell/Wi-Fi telecommunications capabilities, GPS functions and digital video, music, TV program storage, playback.

2. Compatibility: Our Smartphone uses a Linux based operating system that is less vulnerable to hackers and other security threats that can result in stolen or corrupted data.

3. Pricing. Our product is priced lower than competing multifunction models- none of which offer the same bundle of features- which gives us an edge with price-conscious customers.

Weaknesses

By waiting to enter the Smartphone market until the initial shakeout and consolidation of competitors has occurred, Orbit has learned from the successes and mistakes of others.

We have two main weaknesses:

1. Lack of brand awareness: Orbit has not yet established a brand or image in the marketplace, whereas Nokia and others have strong brand recognition.

2. Heavier weight: To accommodate the multifunction features, the Orbit is slightly heavier than most competing models.

3. Price: In the Bangladeshi perspective product’s price is high.

Opportunities

The major opportunity is demand for multimedia smartphones that deliver a number of benefits.

Threats

We face three main threats at the introduction of the Orbit:

1. Increased competition: More companies are entering the Bangladesh mobile market with different models that offer some but not all of the features and benefits provided by Orbit. Therefore, Orbit’s marketing communications must stress our clear differentiation and value-added pricing.

2. Downward pressure on pricing: Increased competition and market-share strategies are pushing Phone prices down. Still, our objective of seeking a 10% profit on sales of the original model is realistic, given the lower margins in this market.

3. Compressed product life cycle: Smartphone have reached the maturity stage of their life cycle more quickly than earlier technology products. We have contingency plans to keep sales growing by adding new features, targeting additional segments and adjusting prices.

Conclusion:

Orbit has come into the market with heavy quality and strong feature. But most of the people purchase mobile due to strong brand image. So lack of brand awareness which might result in low capturing of market share. Target customer is not large so it is also risk oriented. Nevertheless we hope our product exists in the market and capture the market day by day.