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Class : Marketing ManagementGroup : 2Team Member :陳崇智 Chung-Chih Chen 9562511 余國守 Kuo-Shou Yu 9562508 詹信元 Hsin-Yuan Chan 9562509 謝志明 Chih-Ming Hsieh 9562526 陳海源 Hai-Yuan Chen 9562527 郭寶麟 Pao-Lin Guo 9562533 Director : Professor Charles V. Trappey
I-Baby Mobile Business PlanI-Baby Mobile Business Plan
Dec. 20.2007
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Agenda
Forecast Product of Comparison & Competition SWOT Analysis Distribution, Communication and Promotion Brand Image & Custom Service Implementation and Marketing Organization Contingency Planning Pricing Strategy and Financial Forecast Conclusion
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Situation Analysis
I-BABY mobile phone know your requests!
Have you ever lost connection with your kid?
How should I do now?Looking for my kid by calling 911 or?
Kid’s safety is priceless!
4
Kid’s Mobile Market Summary
Enormous growth opportunities for Enormous growth opportunities for Kid-Mobile in developed & Kid-Mobile in developed &
developing countriesdeveloping countries
Target on the top & Target on the top & intermediate income parentsintermediate income parents
Target on the top & Target on the top & intermediate income parentsintermediate income parents
Lead over other Lead over other competitors to competitors to
MarketMarket
Lead over other Lead over other competitors to competitors to
MarketMarket
Product & Service & Quality Product & Service & Quality DifferentiationDifferentiation
Product & Service & Quality Product & Service & Quality DifferentiationDifferentiation
Marketing Marketing communication & communication & financial strategyfinancial strategy
Marketing Marketing communication & communication & financial strategyfinancial strategy
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Demand Forecast
Target market : 5~10 years old children ( 30~40 years old parents )
Purchases of transport equipment: 1 new handset per year ( about NTD10,000 )
Other communications expenditures: NTD 2,000 per month
Education and research expenditures: NTD 28,599 (30~34 years) ,NTD 55,099 (35~39 years)
Family income: 1,227,155 NTD/Yr (30~34 years) , 1,289,538 NTD/Yr
(35~39 years)
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Average Family Income & Expenditure Per Household 2006 Unit: NTD
Under 30 30~34 35~39 40~44
years years years years
Purchases of transport equipment
8,924 10,995 10,030 11,139
Other communications 26,020 24,282 22,955 24,019
Education and research 21,023 28,599 55,099 75,499
Miscellaneous 49,755 56,899 59,733 56,983
Disposable income 850,241 969,135 1,014,173 969,634
Final consumption expenditure
670,069 743,436 786,490 792,289
Saving 180,172 225,699 227,683 177,346
Family income 1,061,577 1,227,155 1,289,538 1,235,374
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Market Forecast
Market Forecast : 2004 population of 5~9 years in Taipei City & County : 40
3,106 2005 population of 5~9 years in Taipei City & County : 40
5,939 Target market forecast :
5% population of 5~9 years in Taipei : 20,300
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Population by 5 Year Age GroupEnd of Dec., 2004
Age 0~4 Age 5~9 Age 10~14
Locality Years Years Years
Taiwan Area 1,239,602 1,517,011 1,617,943
Taipei County 189,634 246,481 268,947
Taipei City 133,010 159,458 171,870
End of May, 2005
Age 0~4 Age 5~9 Age 10~14
Locality Years Years Years
Taiwan Area 1,203,392 1,508,957 1,614,653
Taipei County 185,395 245,494 267,240
Taipei City 127,935 157,612 171,579
Source : Dept. of Household Registration Affairs, MOI.
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Product of Comparison & Competition
Category General Mobile phone
General Kid phone
GPS smart phone I-BABY MOBILE PHONE
GPS Fix N/A N/A YES YES
Price NTD 3,000~ NTD 5,000
Under NTD 2,000
NTD 20,000 Under NTD 2,000
Shape Not for Kid Charming design Not for Kid Charming design
Strength 1.Easy to acquire 1.Cheap2.Design for Kid
1.GPS fix function 1.Design for kid2.Safety & security3.Accuracy4.Cheap & customization
Weakness 1.High alternative2.No GPS function3.Not specific design for kid
1.High alternative2.No GPS function
1.Low battery life2.Expensive
1.Low battery life
!
Niles Baby 1.Design for Kid
2.safety & security3.Accuracy4.Cheap & customization
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!
Niles Baby
!
Carol Baby
Hole of ear phone, recharge, PC connection
Graphic interface
GPS system inside
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Mobile Phone Tariff
PlanMonthly
RentPreferential
Benefit
Mobile phone conversation tariff
Conversation with same system
Annotation
Peak timeOff-peak
timePeak time
Off-peak time
I-Baby
Free Month Rent
0 0 0.1 0.05 0.08 0.04
588 588 588 0.08 0.04 0.05 0.0410 Messages free
888 888 888 0.06 0.03 0.04 0.0320 Messages free
Each message costs NTD 5 (includes GPS position)
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SWOT AnalysisStrengthEasy to get R&D and manufacturing resources.Taiwan has mature cell phone manufacturing industry.Capital sufficent. Don‘t need too much capital.First-mover advantage
WeaknessThe birth rate is declining.Internal needs scale is too small.The ability of R&D and creativity can‘t compare with international mobile companies.R&D and manufacturing costs are higher than China.GPS searching expense may too high for some families.The difficulty of developing brand or service awareness as a start-up company.
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SWOT AnalysisOpportunity
The baby mobile selling price is low. Can arouse the parents needs.Some parents have high controllability toward their kids.The needs of safety are growing up.There are no such GPS searching service and baby mobile in domestic market.
ThreatenCompetition from low cost China company.The probability of international company enters baby mobile market.Creative speed can‘t reach the change speed of customers needs.The telcompany may charge high fees for using their devices.Entry barrier is low. Easy to replace.
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Marketing Distribution
Strategy: Cooperate with Telecommunication company
Location: Taipei City and Taipei Country Place: service centers 、 retailers, Kids’ shop
s …etc Service: Application 、 Sales 、 Repair 、 C
hange data 、 Bill Consultation …etc Warehouse and Logistics
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Mass Communication Cooperate with Telecom Cooperate with Outlets Mail (printer media) Catalogs Telemarketing Interactive TV Web sites Mobile devices Car dealers
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Promotion
Subject: to promote safety experience to parents Slogan: Kid’s safety is priceless!Event 1: To prepare free mobiles for 5 classes in 5 primary
school in Taipei city and try to associate with parents and teachers in school
Event 2: To prepare free mobiles in retailers, as long as
consumers deposit NTD 2,000, free mobile can be used 1 month (trail). If customers are unsatisfied the services, deposit can be returned .
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Brand Image Cheaper Safety & security Charming shape design Closed relationship
Perform
ance
Excellenc
e
˙ I-BABY Kid Mobile phone
˙GPS Smart phone
Normal
˙Normal Kid Mobile phone
˙Mobile phone
Low High
Price
Kid’s safety is priceless
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Custom Service
Professional customer service Toll-free customer service number Technical staff to databases tracking individu
al customers' preferences
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Implementation
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
Milestones
Concept
Marketing requirements spec
DevelopmentProduct specDevice design PrototypingProductizationManufacturingCertificationMarketingMarketing PlanMedia PlanTrial Launch Plan Distibution Plan & Trial SupportPre lanuch review
2008 Q32007 Q4TASK
2008 Q1 2008 Q2
LaunchPorject kick off Function acceptUnit test
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Chairman & CEO
.
PHS Business Mobile Business
Quality service
Kid’s Mobile Business
Business Center
Production center
Finance Human resource
Marketing Organization
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Contingency Planning
Difficulties & Risks :a.Already established market competitor !b. Marketing visibility unclear !
Worst Case Risks Include :a.Poor performance in operation !b. Liquidate equipments & intellectual capitals to cover liabilities !
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Pricing Strategy
Step 1: Selecting the Pricing Objective ─ Initial period → Maximize profit ─ After initial period → Maximize revenue
Step 2: Determining Demand─ Let marketing research department to survey─ Questionnaire ─ Price sensitivity analysis
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Pricing StrategyStep 3: Estimating CostFixed cost
Fixed costs are USD$50,000 with each batch. USD$5 per piece if each batch is 10K.Total estimated cost= USD$ 26+4+7+5= USD$ 42
If we use the same supplier for CPU, GPS and GSM, the electronic cost may decrease to $20~$25
Initial total cost will be USD $42.
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Pricing Strategy
Step 4: Analyzing Competitors’ Costs, Prices, and Offers
─ There is NO competitor in the baby mobile market in Taiwan so far. We are the first manufacturer targeting the age from 5 to 10.
Step 5: Selecting a Pricing MethodMarkup pricing
─ The estimated cost is USD$ 42 and added 30% margin rate equals USD$ 55 (or NTD$ 1,750).
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Pricing Strategy
Step 6: Selecting the Final Price─ Skimming pricing, odd pricing
─ Initial period, pricing at 50% markup rate which means the selling price would be USD$ 63 (or NTD$ 2,000).
─ After, pricing at 30% markup rate to increase the sales volume.
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Pricing Strategy - other considerations
A. Internal factors1. Cost
Curtail the cost to make selling price more competitive.2. Marketing strategy Target different customer groups comparing existing
mobile manufacturers.
B. External factors1. Marketing channels
If selling via department stores, we can increase the price. But if selling via retailers, we should maintain markup rate at 30%.
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Sales Forecast
2008 2009 2010
Taipei area 5-10 yrs children total amount 411,320 398,060 378,040 Potential buyers percentage 5% 6% 7%Potential buyers 20,566 23,884 26,463 Sales forecast (NTD$ 1,750 per unit) 35,990,500 41,796,300 46,309,900 Direct cost of sales (NTD$ 1,350 per unit) 27,764,100 32,242,860 35,724,780
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Expense Forecast
2008 2009 2010
Administrative (1.5% of sales) 539,858 626,945 694,649 Marketing (3% of sales) 1,079,715 1,253,889 1,389,297 Research and development (2% of sales) 719,810 835,926 926,198 Contribution margin 5,887,018 6,836,681 7,574,977
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Conclusion
QualityQuality
ServiceService
PricePrice Customization Customization
CustomerSatisfaction
CustomerSatisfaction
ExpenseExpense
Revenue Revenue
Kid’sMobile
Kid’sMobile