Report on Marketing Plan of a New Product of AIRRYS Bangladesh Ltd

Executive Summary:

AIRRYS is one of the respected and reputed new business houses in Bangladesh. It has crossed 2 years of operation. AIRRYS has endured turbulences of the last 2 years and has been able to transform itself from a small trading company into a leading diversified business house. This is, indeed, a milestone, which AIRRYS has achieved with trust, support and dedication of all stakeholders, past and present, most importantly to its customers.

AIRRYS is preparing to launch a new mobile phone accessory, in a maturing market. Despite the dominance of mobile phone accessories leader Anik Telecom, we can compete because our offering combines exclusive features at a value-added price. We are targeting specific segments in the consumer and new business market, taking advantage of opportunities indicated by higher demand for easy-to-use, wireless-enabled mobile phone’s accessory with expanded communications functionality.

Launching a new product is very difficult for other existing products. To take place in the very competitive market, a well-planned marketing strategy is necessary. Marketing plan by which the business unit hopes to achieve its marketing objectives through marketing strategy: market segmentation, targeting, and position. By marketing strategy, the company designs a marketing mix made up of factors under its control- Product, Price, Place and Promotion. To find the best marketing plan, the company engages in marketing analysis, planning, and implementation control. Marketing plan results in making effective market position of a new product. In this assignment, I have tried my level of best to explore a new product marketing plan through practical implication.

Introduction:

I would glad to introduce our new technical product under our existing company “AIRRYS Bangladesh Ltd.”. This is a totally new different product for mobile phone users. This product is act as a police when thief steals our favorite mobile phone sets or we lost our valuable mobile phone sets. To maintain brand strategy we have decided a brand name of our product. Our Product’s name is “AIRRYS Easy Mobile Phone Tracker”. And our positioning statement is “We made products for giving security to your mobile phone set”. This product can save our mobile phone sets and can be took top place of the market by its exciting feature and technology.

Goal Settings:

As a new comer, we also set some marketing goals for our management. The primary marketing objectives of this new product plan are to achieve fist-year Bangladesh technology market share of 30 percent and unit sales of 8,00,000.The primary financial objectives are to achieve first-year sales revenues of TK 4 billion, keep losses to less than TK 5 million and break even middle in the second year.

Data collect and data analysis

Methodology: There are two types of methodology thos are given bellow :

• Primary Data ;
• Secondary Data;

Primary data: Primary data collect from Internet , magazine , newspaper etc.

Secondary data :Secondary data collect from field work.

Mobile Terminal Sales in Bangladesh in 2008

Table I

Source: Primary and secondary data collected from field & Internet.

Mobile set Function & Design Discusion

Market Description:

AIRRYS’s market consists of consumers, employed and business users who need to communicate exchange and secure mobile phone set on the go. Specific segments being targeted during the fist year include geographic, demographic, psychographic, behavioral variables.

Easy Mobile Phone Tracker is a new product and initially it has no competitors. AIRRYS licenses the market dominant Anik Telecom because thousands of mobile phone accessories are produced by Anik Telecom and our product must have to comfortable with these accessories. Product proliferation and increased competition have resulted in lower price and lower profit margins. Lower price are helping sales of mobile phone accessories in the lower end of consumer market, but at the expenses of gross margins. Customers with mobile phones are always waited for new mobile phone accessories.

Product Review

Our first product, the Easy Mobile Phone Tracker, offers the following standard features:

A pair of devices consists of a set device which will attach with the mobile phone set and another one is home device which will keep at home.

Voice recognition for hands-free commands and communication.

Attached device has a hydraulic ring tone.

Devices can cope with any cell phone set and cell phone network and exchange signals about mobile phone situation.

Voice command locked code system and cannot remove attached device from mobile phone set without owner’s voice command.

Set device has the ability to identify owner through voice and according to the voice, can send frequent messages to the home device.

Home device has a monitor and two switches. Monitor shows the messages received from set device and one switch works to ring the hydraulic ring tone and another switch works to measure the approximate distance.

First-year sales revenues are projected to be TK 4 billion, based on sales of 8,00,000 AIRRYS Easy Mobile Phone Tracker units at a wholesale price of TK500 each. During second year, we plan to introduce the AIRRYS Easy Mobile Phone Tracker 2 as a higher-end product with the following standard features:

Global positioning system for identifying location, obtaining direction.

Electric shock system.

Touching sensitiveness and according to this sensitiveness this product will exchange signals.

Distribution Review

AIRRYS branded products will be distributed through a network of select store and non-store retailers in the all Bangladesh markets. Among the most important channel partners being contacted are:

GrameenPhone: GrameenPhone, 62 percent owned by Norway’s Telenor, led with 16.48 million users and the market leader will sell our product with their package offer. They include the price of our product with their packages.

Nokia: Nokia one of the most popular mobile phone set manufacturer and held the market share 34% will sell product with their sets as a package.

Motorola: Motorola will also sell our product. But they will sell this product if this customer wants.

Online retailers: Amazon.com will carry AIRRYS Easy Mobile Phone Tracker and for a promotional fee will give AIRRYS prominent placement on its page during the introduction.

SWOT Analysis

AIRRYS 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 mobile phone that delivers communication-specific benefits. We also face the threat of ever-higher competition and downward pressure on pricing.

Strengths:

AIRRYS can build on three important strengths:

Innovative product: The AIRRYS Easy Mobile Phone Tracker includes a voice-recognition system that gives more security to mobile phone sets. It also offers features such as hydraulic ring tone, home monitor, cope with any network, wireless communication.

2. Compatibility: Our AIRRYS Easy Mobile Phone Tracker is a totally new product in Bangladesh. Initially we do not have any competitors except one, Samsung gives this facility only for their sets but our product is for all sets.

3. Pricing: Our product is priced lower than any high quality mobile phone accessories models which give us an edge with price-conscious customers.

Weakness:

By waiting to enter the mobile phone accessories market until the initial shakeout and consolidation of competitors has occurred, AIRRYS has learned from the successes and mistakes of others. Nonetheless, we have two main weaknesses:

Lack of brand awareness: As a start-up, AIRRYS has not yet established a brand or image in the market place, whereas Anik Telecom has strong brand recognition. This is an area we will address with promotion.

Heavier weight: To accommodate the multifunction features, the AIRRYS Easy Mobile Phone Tracker is slightly heavier than most mobile phone accessories. To counteract this, we will emphasize our multifunction features and value-added pricing, two important competitive strengths.

Opportunities:

AIRRYS can take advantage of two major market opportunities:

Increasing demand for multiple communication methods:  The market for cell phone is projected to grow faster than the market for non wireless models. More prospects are seeing users with cell phone in giving security to their mobile phones, which is boosting primary demand.

Diverse applications: The wide range of mobile phone network available for home and business use allows the AIRRYS Easy Mobile Phone Tracker to security needs.

Threats:                    

We face two main threats at the introduction of the AIRRYS Easy Mobile Phone Tracker:

Increased competition: More Increased competition: More companies are entering Bangladesh mobile accessories market with models that can offer same or more features and benefits with high quality at a initial level. Therefore, AIRRYS’s marketing communications must stress our clear differentiation and value-added pricing.

Compressed product life cycle: Mobile phone accessories seem to be reaching the maturity stage of their life cycle more quality than earlier technology products. We have contingency plans to keep sales growing by adding new features, targeting additional segments, and adjusting prices.

Objectives

Objectives

We have set aggressive but achievable objectives for the first and second years of market entry.

First-year objectives: During the AIRRYS Easy Mobile Phone Tracker initial year on the market, we are aiming for a 30 percent share of the Bangladesh mobile accessories market through unit sales volume of 8,00,000 units.

Second-year objectives: Our second-year objectives are to achieve a 60 percent share based on sales of two models and to achieve break-even early in this period.

Our target market can be reached with a cost effective media and channel.

AIRRYS marketing strategy is based on a positioning of product diversification. Our primary consumer target is lower to upper income professionals who need one portable security device to protect their mobile phone sets. Our secondary consumer target is high school, college, graduate student, unemployed and also housewives who need a security device for their valuable cell phone set. This segment can be described by the mixed of geographical, demographical and behavioral variables.

Our primary business target is mid- to large-sized corporations that want help their customers save their mobile phone set on the go. This segment consists of companies with more than TK 6 billion in annual sales and more than 500 employees.

Each of the four marketing-mix strategies conveys AIRRYS’s diversification to the target market segments identified above.

Market Segmentation:

Marketing Strategy

AIRRYS’s highlighted marketing strategies are:

Positioning

Using product diversification, we are positioning the AIRRYS Easy Mobile Phone Tracker as the most versatile, convenient, value-added model for personal and professional use. The marketing strategy will focus on the security with voice-recognition system as the main feature diversification the AIRRYS Easy Mobile Phone Tracker.

Product Strategy

As we already know our product name is AIRRYS Easy Mobile Phone Tracker. The AIRRYS Easy Mobile Phone Tracker, including all the features described in the earlier Product Review section, will be sold with one-year warranty. We will introduce a more compact, powerful high-end model (the AIRRYS Easy Mobile Phone tracker 2) during the following year, with GPS functionally and other features. Building the AIRRYS brand is an integral part of our product strategy. The brand and logo will be displayed on the product and its packaging and reinforced by its prominence in the introductory marketing campaign.

Pricing strategy

The AIRRYS Easy Mobile Phone Tracker will be introducing at TK 500 estimated retail price per unit. We expect to lower the price of this first model when we expand the product line by lunching the AIRRYS Easy Mobile phone Tracker 2, to be priced at TK 850 wholesale per unit. These prices reflect a strategy of (1) attracting desirable channel partners and (2) taking the most of market share as a leader.

Distribution Strategy

Our channel strategy is to selective distribution to have AIRRYS Easy Mobile Phone Trackers sold through well-known stores and online retailers. During the first-year, we will add channel partners until we have coverage in all major Bangladesh market and the product is included in the major electronics catalogs and web sites. We will also investigate distribution through cell phone outlets maintained by major carriers such as Nokia. In support of our channel partners, AIRRYS will provide demonstration products, detailed specification handouts, and full-color photos and displays featuring the product. We will specific trade terms for retailers that place volume orders.

Marketing Communication Strategy

By integrating all massages in all media, we will reinforce the brand name and the main points of product diversification, especially our exclusive voice-recognition feature. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction.

TV Advertisement:

Television is the most effective to create brand assurance. BTV, NTV, ATN, CHANNEL- I are the most popular TV Channel in Bangladesh and all kind of audiences are watched TV once in a day and all the premium brands of mobile set accessories are presently focusing through electronic media campaign. So, to choose the TV advertisement as the prime options according to the budget and the promotional expenditure available for the quarter is obvious for us. AIRRYS media planning will also include the selection of right program, at the right time for the right group of viewers and we are preparing through this way.

Radio Advertisement:

A huge number of our targeted consumers are rural based where radio coverage and listeners are large in number. Some of the special sponsored programs will be developed focusing the stories of our brand. Recently some new radio station is introduced and getting much popularity especially from younger. So, we should use this media for our campaign.

Outdoor Advertisement

We plan to have an exciting, informative, and actively managed outdoor advertisement. We will campaign via outdoor events like concert, theater etc. There will be wall painting all around the country.

Press Conference

We will undertake a considerable amount (based on promotional expenditure) of press advertising in order to advertise our special promotion like consumer offer and to enhance our brand image activity. More often our targeted potential consumers go through daily newspapers, magazines so we decided to target this media. And we will advertise in this media until our brand image will establish.

Marketing Research

Using research, we are identifying the specific features and benefits that our targeted market segments value. The company should measure brand awareness before, after and during the marketing campaign, study consumer satisfaction and identify opportunities will help us to develop the AIRRYS Easy Mobile Phone Tracker 2. To determine the effectiveness and efficiency of our messages and media, brand awareness research will help us.

Marketing Organization

AIRRYS’s chief marketing officer, Md. Ashraful Islam, holds overall responsibility for marketing strategy and direction. Figure-1 shows the structure of the eight-person marketing organization. AIRRYS has hired worldwide Marketing to handle national sales campaigns, trade and consumer sales promotions and public relation efforts.

Figure-1

AIRRYS’s Marketing

 Organization

Md. Ashraful Islam

Chief Marketing Office

Md. Riazul Islam                          Md. Aminul Islam                           Md. Shakibul Haque

Sales Manager                            Advertising Manager                          Promotion Manager

Raj Pal Yadav                          Md. Ahsan Hossain Bhuiyan                      Fahmida Haider

Regional Manager                           Advertising Analyst                        Promotion Analyst

ACTION PROGRAM

The AIRRYS Easy Mobile Phone Tracker will introduce in July. Through a series of scheduled program AIRRYS will carry out its marketing strategy and achieve its objectives. A monthly basis detail about these programs are given below

June

We will initiate a huge amount trade sales promotion ad. Campaign to educate dealers and generate excitement for the product launch.

Send catalogs & brochures to 50000 likely customers

Set-up showrooms

Provide samples product reviewers, opinion leaders and celebrities as the part of our public relation strategy.

Create own website.

July

Collecting marketing information.

Start an integrated print/radio/TV/ Internet campaign targeting consumers.

Launching AIRRYS Easy Mobile Phone Tracker.

August

Study consumer satisfaction and identify opportunities.

FINANCIAL PROJECTION

Total first-year revenue is Tk.4 billion; average wholesale price is Tk.500 per unit. Variable cost per unit of TK 250 for units sales volume of 8,00,000. We anticipate a first-year lose of TK 5 million on our product.

On quarterly basis AIRRYS Easy Mobile Phone Tracker projects sales of Tk.70 million on 1^st quarter and consequently Tk. 150 million, Tk. 50 million and Tk. 130million.

IMPLEMENTATION CONTROLS:

This product plan includes a detailed budget, schedule, and managerial assignment for every action program. I am planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales (by segment and channel) and monthly expenses. A contingency plan, attached, has been developed for implementation in the context of severe downward pricing pressure.   

Conclusion:

I am planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales (by segment and channel) and monthly expenses.