04/10/2023 Neato Marketing Plan 1

Neato RoboticsMarketing Plan

Presented By: Marian Nazmy

Alaa El-Din AbdulhameedGeorge Adel

Mohamed SalahAhmed Salim

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Implementation Plans Distributors

Performance Evaluation Monitoring Ad Campaigns Sales Analysis Profit and Loss Statements Sales Force Evaluation

Financial Information Financial Assumptions Sales Projections (5 years) Budgets

Contingency Plans Symptoms of Failure Alternative Strategies

Appendices

Table Of Contents Situational Analysis

Robotic Vacuums Specifications. Industry Analysis. Market Characteristics. PESTEL Analysis.

Sales Analysis Competitor Analysis. Competitor Advantage.

OBJECTIVES Corporate Objectives Marketing Objectives Financial Objective

MARKETING STRATEGY Market Segmentation Strategy Targeting Strategy Core & Alternative Strategy

MARKETING PROGRAMS Marketing Mix Customer Service & Support

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• We’re a partnership co. specialized in sales distribution for a unique product of SDA, tending to target & occupy our brand “NEATO” a slice from people who’re seeking a high tech. & Luxurious facilities using Target Marketing segmentation strategies.

• Located our business in Cairo office we’re tending to target 14% from families living in greater Cairo & Alexandria geographical sectors.

• Such product will change the perceiving of the word “Vaccum”, more facilities than such an ordinary SDA, with enjoying the home work “Netao Robotics XV-11” is saving your valuable time to take care…

• Based on our Financial projections at the 3rd year of operation our product will be matured enough to reach the breakeven point and to reach a total profits of 111 million EGP at the fifth year, with a projected ROI of 2.2x

Executive summery

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Robotic Vacuums Specifications

• Able to navigate safely around obstacles while cleaning the floor

• Navigation is controlled by the robots motherboard and sensors

• Can be used not only for private homes but also for offices

• Change the way we clean• Ease of Use • Compact Design

Situational Analysis

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`

Current Population of Egypt is about 83 millions

Age structure0-14 years (31.8%)15-64 years (63.5%) 65 years and over (4.7%)

Population growth rate1.96%

Major cities - populationGreater Cairo (14.2 million) Alexandria (4.387 million)

Labor force26.2 millionLabor force - by occupationagriculture: 32%industry: 17%services: 51%

Unemployment rate9%

Population Density80.7

Situational AnalysisMarket Characteristics

Ref.: CIA-Factbook

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`

Demographical Characteristics

Governorates Families no.# Total Population

Beni-Suef 495,687.00 2291618

Fayoum 562,847.00 2511027

El-Menya 910,529.00 4166299

Assyout 729,302.00 3444967

Sohag 818,553.00 3747289

Kenna 632,882.00 3001681

Aswan 269,899.00 1186482

Luxor City 99,811.00 457286

El-Wadi El-Gedid 42,889.00 187263

Total Region Pop. 4,562,399.00 20,993,912.00

Governorates Families no.# Total Population

Damietta 283,944.00 1,097,339.00

Matrouh 60,030.00 323381

El-Dakahlia 1,264,276.00 4989997

El-Sharkia 1,261,502.00 5354041

El-Qaliobia 1,043,785.00 4251672

Kafr-El Sheikh 614,392.00 2620208

El-Gharbia 995,746.00 4011320

El=Mnofya 769,451.00 3270431

El-Beheira 1,094,141.00 4747283

Total Region Pop. 7,387,267.00 30,665,672.00

Governorates Families no.# Total Population

Port Said 141,982.00 570,603.00

Suez 122,431.00 512,135.00

El-Ismailia 227,713.00 953,006.00

North Sinai 74,489.00 343,681.00

South Sinai 23,546.00 150,088.00

Red Sea 61,423.00 288,661.00

Total Region Pop. 651,584.00 2,818,174.00

Governorates Families no.# Total Population

Cairo 1,783,335.00 6,758,581.00

Helwan 411,019.00 1,713,278.00 6th of October 619,711.00 2,581,059.00

Giza 802,402.00 3,143,486.00

Total Region Pop. 3,616,467.00 14,196,404.00

Governorates Families no.# Total Population

Alexandria 1,071,582.00 4,123,869.00

Ref: واإلحصاء للتعبئة المصري الجهاز

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Economical Analysis

7.22008 4.72009 5.12010 1.62011GDPGrowth

Inflation Rate

18.32008 11.92009 11.12010 11.12011

Cons. Expend (US M $)

126,22008 150,22009 172,92010 175,12011

Disp. Income(US M $)

132,52008 153,52009 176,42010 178,32011

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Direct Competitors• R

oomba 581

• Roomba 531

Substitutes• N

iche ordinary vacuums i.e. Electro Lux

Potential

• L

G Robotic Vacuum

• Samsung Robotic Vacuums

Sales AnalysisCompetitor Analysis

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Competitor Product Specifications

Roomba 581 Roomba 531

•Spot Clean provides quick clean-up of spills and concentrated messes•A further Vacuum Dust Bin for day to day cleaning•Tangle-resistant brushes and hair-removing cleaning tools•Efficiently vacuums dirt, debris, pet hair, dust, allergens and more from carpets and hard floors.

Price 4,999 L.E

•Automatically returns to its compact self-charging Home Base to dock and recharge between cleanings•Wireless Command Centre allows you to steer and control Roomba from across the room.•Each Virtual Wall® Lighthouse TM (3 included) confines Roomba to one room until the entire floor is vacuumed before Roomba moves on to the next room.•improved filter captures more dust and allergens while a larger bin holds more debris

Price 6,666 L.E

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Objectives

Corporate Objective

Marketing Objectives

To be one of the leading firms of the Robotic Small Devices Appliance industry in Egypt by the End of 2014 Financial year.

To achieve 197K Sold unit and 111 million EGP Net Profit by the End of 2017 Financial year.

To Reach the break even point after 24 months of operation.

Financial Objectives

To be the most desirable brand in SDA industry in Egypt by the End of 2014 Financial year.

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Organizational Chart

1 Marketing Officer: Responsible for procurement and budgeting.1 Marketing Officer:Responsible for Market analysis and risk Mgt.

Chair Man

Marketing Dpt. Sales Dpt. Finance Dpt. Customer service Dpt.

1 HOD3 sales teams 3 members each

1 HOD1 Payable accountant 1 Receivable accountant

1 HOD 1 On field Supervisor5 Outsourced Seats at Raya Outsourcing Company

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MARKETING STRATEGY

Market Segmentation Strategy

Below 150K a Year70%

Above 20M a Year2%

Above 2M a Year8%

Above 150K a Year20%

Egyptian Wealth Distribution

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• Our targeted segment will be the above 150K a year as these are the segments how have the enough disposable income and the sufficient purchasing power.

• These segments are mainly concentrated in Cairo and Alexandria.

MARKETING STRATEGY

Total families within the targeted segments Are 1,406,000 family (total market size)Our target is 14% out of this segment which will be 196,896 Family that reflects on 196,896 Device by the end of 5 financial years

Targeting Strategy Total no. of

familiespercentage of Pop.

According to Disposal Income

weighting for Target

Targeted Segment

pop.Cairo

3,600,000

Alex

1,088,000

4,688,000 2%Above20

MIO 93,760 30% 28,128

8% Above2 MIO 375,040 20% 75,008 20% Above150 937,600 10% 93,760

Total Targeted 1,406,400 196,896 14%

Market Segmentation Strategy

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Product

Marketing Programs

Marketing Mix

SimplicityIt’s as easy as that. Place the Neato vacuum in any room you’d like it to clean, press start and off it goes. Or, simply set a schedule and the Neato XV-11 will automatically clean at the time you set—daily, every other day, or 3 days a week. Keeping your floors clean has never been easier.

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Product

Marketing Programs

Marketing Mix

Low-Maintenance Just press the START button and off Neato goes, keeping your floors cleaner on a daily basis. Neato cleans methodically like you do, leaving straight-line paths on your carpet so you can come home and see that ‘just cleaned’ look. All you have to do is empty the dirt bin between cleanings and your robotic vacuum does the rest.

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Price

Marketing Programs

Marketing Mix

The Product will be price With 3500 EGP/ Unit.

Will

be illustr

ated la

ter

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Promotion

Marketing Programs

Marketing Mix

We will use the 3 ways of promotion

Above the line :TV Ads : one month campaign/ year.Radio Ads: one month campaign/ year.Leaflets: 100K to be distributed in the mega markets to ensure high awareness in the Targeted segments.Bill Boards: 10 Billboards to be distributed in Cairo (ring Road , Mehwar & October bridge) And Alex ( Alex road , International Road).street Cairo & Alex Rich districts(5 streets per governorate)5 gov.(2 per street).Newspapers & Magazines: 2 weekly magazines, 3 monthly magazines.Web site: to be used for online ordering and advertising

Intensive Promotional

Plan in Mothers day

and Christmas

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Promotion

Marketing Programs

Marketing Mix

Below the line :Personal Selling through our own sales Team.

Through the Line :Mail Advertisements.

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Promotion Campaign

Marketing Programs

Marketing Mix

Without Neato Spare Time

With Neato Spare Time

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Without Neato Spare Time

With Neato Spare Time

Promotion Campaign

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Promotion Campaign

Wasn't going to make it without Neato

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Place

Marketing Programs

Marketing Mix

Direct/sales team•Three sales teams, each team consists of 3 sales representatives ; Placed at three booths.We’ll have one booth in Cairo; City Stars branch, another one in Giza; Carrefour Dandy Mall & the last one in Alex Green plaza.Each team will be responsible for:•Presenting the Robotics in a gentle way to the customers.•Persuading the customers by how much Robotics is more effective & efficient than any vacuum machine. •Answering all questions concerning the Robotics and how anyone can use its functions easily.• Selling the Robotics.• Supporting to the salespeople that is employed at home appliances stores.• Build up relationships with those salespeople simply to facilitate the selling process & in order to get feedback.

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Place

Marketing Programs

Marketing Mix

Retailers sell directly to end-users via a physical store, website, catalog.

Direct/internetSelling through our own e-commerce website. The Web channel, Facebook remains wildly popular among our Targeting and segmentation consumers.

Customer service & SupportWe will Outsource a call Center at Raya Outsourcing Company to answer Customers Queries And issue online purchasing order for uneducated customers.

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Implementation PlansPerformance EvaluationFinancial Information

Years Year 1 Year 2 Year 3 Year 4 Year 5

Pct of Sales Occurred 7% 18% 32% 29% 14%NO.of targeted families 13,783 35,441 63,007 57,100 27,565 Sales Price 3,500.00EGP 3,500.00EGP 3,500.00EGP 3,500.00EGP 3,500.00EGP

Revenues 48,239,520.00 124,044,480.00 220,523,520.00 199,849,440.00 96,479,040.00

Expenses 52,658,805.80EGP 106,586,616.36EGP 175,195,630.96EGP 155,434,503.21EGP 82,308,131.54EGP COGS Include Tax & Custom 23,754,517.92EGP 61,083,046.08EGP 108,592,081.92EGP 98,411,574.24EGP 47,509,035.84EGP No.os Purchased units 13,783 35,441 63,007 57,100 27,565 Unit purchase Price(Contracteul) 1,723.50EGP 1,723.50EGP 1,723.50EGP 1,723.50EGP 1,723.50EGP

Advertising Budget 15,125,000.00EGP 15,147,000.00EGP 15,175,000.00EGP 9,889,000.00EGP 9,859,000.00EGP Buildings & Warehouses Rentals 1,800,000.00EGP 1,800,000.00EGP 1,800,000.00EGP 1,800,000.00EGP 1,800,000.00EGP Cost of Freight 72,000.00EGP 79,200.00EGP 87,120.00EGP 95,832.00EGP 105,415.20EGP Outsoyrcing Customer Service & Training Cost 420,000.00EGP 462,000.00EGP 508,200.00EGP 559,020.00EGP 614,922.00EGP

OPEX 11,907,288 28,477,370 49,541,429 45,238,097 23,034,680 Taxes 2,375,452 6,108,305 10,859,208 9,841,157 4,750,904 Customs 8,076,536 20,768,236 36,921,308 33,459,935 16,153,072 Staff Salaries Fixed 1,176,000 1,293,600 1,422,960 1,565,256 1,721,782 Staff Salaries Variable 147,000 161,700 177,870 195,657 215,223 Others 132,300.0 145,530.0 160,083.0 176,091.3 193,700.4

Net PL (4,839,285.80)EGP 16,995,863.64EGP 44,819,689.04EGP 43,855,916.79EGP 13,555,986.46EGP

Invested Capital 50,000,000 R.O.I. -9.68% 33.99% 89.64% 87.71% 27.11%

Syptoms of Failure 50% (Sold Units) 10,337 26,581 47,255 42,825 20,674 Net PL (16,479,166) (13,553,256) (9,802,991) (5,547,423) (9,948,852)

See the Excel Sheet`

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Symptoms of FailureAs we assumed that the total

invested capital is 50 Mio, so the symptoms of failure is when we achieve 75% of the sales , as by so we are going to lose the total invested Capital.

Contingency Plans

Years Year 1 Year 2 Year 3 Year 4 Year 5 Totals

Sold Units 10,337 26,581 47,255 42,485 20,674 147,672

Net PL 16,690,066 13,455,246 9,695,180 5,428,831 9,818,400 55,087,723

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• Our alternative strategy is to monitor the sales for the first 2 years if it didn’t meet the Plan, we will implement two years installment plan with the proper interest rate, in order to penetrate 70% of the segment which have over 150K income as a corrective action to increase the ROI.

Alternative Strategies

Contingency Plans

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CIA Factbook.com

للتعبئة المصري الجهازواإلحصاء

المصرية الجمارك مصلحه

NeatoRobotics.com.

RadioShackEgypt.com.

Study on SDA industry.

Appendices

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Thank You