foundations of marketing

7/22/2019 foundations of marketing

1/19

J U S T 5 B y M A N G O T E L E C O M M U N I C A T I O N P R I V A T E L I M I T E D .

FOUNDATION OF MARKETIG

CELL PHONE FOR SENIOR CITIZEN

APRIL

2012


2/19

1

Contents

Executive Summary...3

1. Mission Statement ..3

2. Theoretical Framework......3

3. Company....4

3.1 Current Status.....4

3.2 Business Outline....4

3.3Companys Origin (Business Background)4

4.Business Objective..4

5 Key Feature..5

6. Competition-SWOT Analysis6

6.1 SOWT Analysis for Just 5 in urban and rural area of India.6

7 Barriers to Entry Porters 5 ForcesAnalysis7

7.1 The threat of new entrants..8

7.2The threat of substitute products or services..8

7.3 The bargaining power of customers (buyers).8

7.4 The bargaining power of Supplier..8

7.5 The degree of Rivalry ......8-9

8.Organisational Structure ...10

8.1Management Team Personnel..10

8.2 Profiles of Directors of JUST 5..11

9. Target Market. 12

10. Marketing Strategy- Product .12


3/19

2

11. Pricing Strategy.12

12 Placement Strategy..13

13. Promotion and Advertising14

14. STP (segmenting targeting placement).14

14.1Segmenting....14

14.2 Targeting.15

14.3 Positioning..16

15. differentiated strategy...17

16. Bibliography...18


4/19

3

Executive Summary

Our research focus on the developing of a new segment in the cell phone industry as we aim toproduce phones that is technology easy for different ages of people. The need of the research was toproduce a cell phone that is customized with the features that can be easily utilized for aged people touse. Before penetrating into the market few market analysis were conducted by the research team .Formy research I have used the following analytical tools :

Porters Five Forces Marketing mix - 4Ps of marketing. SWOT Analysis STP (segmenting, targeting and positioning)

the abovce tools will be helping me to correctly and effectly focous on my research and the successof my product .

1. Mission StatementMango telecommunication invents a new generation cell phone product which is

especially designed for the use of aged people , easy to use product with extraordinary

features such as SOS and IEAS at an very economical prices . This is a niche product

. Our main mission is to help aged people who cannot cope up with the new

technology cell phones so we have decided to vitalize the technology and make it easy

for them to use . Mango telecommunication is the future leading India based companyin manufacturing cell phones .

2. Theoretical Framework:The decision to launch a new cell phone for senior citizens in a niche market Can be

calculated and analyzed various business concepts and tools. The concepts that I will includeare:

Demographics S.T.P (segmenting, targeting, positing) SWOT analysis 4 Ps of Marketing ( Product Price Promotion Place )This will help us judge if the decision to launch the product is beneficial or unfavorable.


5/19

4

3. Company4.1 Current Status

JUST 5 will begin with slowly developing, as well as increasing familiarity with the brand name andexcellent services to the area of focus,The future aim of Just 5 would be to be useful to the aged people and keep on making the technologyeasy for them.

4.2 Business Outline

Mango Telecommunications is an Indian based company in New Delhi, with its main motto to maketechnology simpler for the senior gent=ration of the country yet keeping it very economical. Mangotechnology is aiming to release Just 5, a cell phone which is very easy to use with added specialfeatures which primarily focus on the senior citizen. JUST 5 has done hardcore research on its productand services so that it reducing the chance of clients hesitations about the service.

4.3 Companys Origin (Business Background)

In this modern techno savy world, where technology is booming to new dimension, it is incorporatingitself into everyones day-to-day lifestyle, but this isnt always an advantage to the society. For elderlypeople, using a normal mobile phone is quite a task in itself.Mango Telecommunication PVT LTD has been researching on a new segment of cell phone, whichwill target the senior citizens. This mobile phone is economical and equipped with easy use

technology for aged people. The cell phone also has a special feature of SOS service and IEAS(instant emergency alarming system).The cellphone our company has come up with has been named Just 5 which stands for the fiveunique features which are very helpful for the elderly people as using technology could be a hard taskfor them.

Some of the features that are present in the phone are very helpful to the users especially the seniorcitizens like the SOS service and the IEAS feature.

We as a company wanted to do something for the old people of our community and make life easierfor them by introducing a phone which is easy to use and at the same time not that big on the pocket,we have successfully come up with the Just 5 witch fits every need of an elderly person. It took a lotof hard work and dedication to research to finally be able to launch the cell phone into the marketsince its a new market so we plan to take it slow and research more and make it as close to perfection

as we can. As a company we had to use various strategies to make this cell phone. The price of thecellphone is ranging from 1600 to 1800 which is very competitive looking at the features it has but italso overlap other cellphones in this price rage as it has feature that are focused for the targetedaudience. We want to target the elderly citizens because no other company has actually gone beyondtheir boundary to do something for old people. We as a company believe that we are doing our part

for the people by making this cell phone and we have put our heart and soul into the whole process ofmaking this cell phone. It is going to be a revolutionary addition to the world of technology and one

which is going to be playing an important role in the senior citizens lifestyle as it makes theircommuting task easier.

4. Business Objectives1. Mango communication is expecting to become the most successful cell phone company

in India which will bring a new approach for aged people to use cell phones .2. Becoming successful in the invented product .3. Bring the excitement back for the old people to use cell phones.4. Expect the brand name to be established soon .5. To gain the market share as soon as possible .6. Be the leading Company in the India.7. Expand the business globally


6/19

5

5. Key Features Of Just 5Talking keypad with large buttons:

This feature helps the elderly to access the phone easily. As we know, aged people tend to suffer fromeye diseases like cataracts, blurring in eyes, glaucoma. Considering this, they find it difficult toaccess normal phones, as they are very fancy and difficult to operate. The talking keypad makes itfeasible for them to dial numbers and send texts, and the large buttons help their fingers to quick-click.

Emergency SOS Button:

The Emergency SOS Button, is one of the main key feature which makes our product different. Its asmall button behind the phone which is to be used for emergency purpose. Simultaneously, a SMS isautomatically sent to 3 predefined numbers.Following that, Phone starts calling the 3 numbers one after the other till a call is answered. If the callremains unanswered, the entire loop gets repeated three times. This feature empowers our seniors.

IEAS (Instant Emergency Alarming System):Activation of the IEAS (Instant Emergency Alarming System) button results in a siren which helps

alert people nearby. This button is right next to the SOS button. A loud siren is rung as soon as thisbutton is pressed. The seniors can access this button in case of any emergency, to alert people nearby.And they shall be helped then and there.

Special LED Indicator:

The Special LED Indicator makes it easy to indicate the actions of the phone to the elderly. If theresan incoming call, Blue LED light is flashed simultaneously. If theres a missed call, Yellow LED lightis flashed simultaneously. And same way, if the battery is low, Red LED light is flashed. So it makeseasy for our seniors to understand if they have a missed call, an incoming call or when they have toput their handset on charge.

KLIQ SWITCH:

This feature allows the seniors to lock and unlock the key pad easily, with just one click. And withtwo clicks The KLIQ SWITCH feature allows the elderly to access an amazing Bright LED Torch.This torch ranges from 6-7feet. So now they wont find it hard to get that glass of water at night.


7/19

6

6. Competition SWOT AnalysisSWOT Analysis is a simple tool that helps to measure the strength ,weakens, opportunities and thethreats, internal and external factors that can affect a business decision. The name SWOT stands for:

7.1 S.W.O.T analysis for Just 5

Strengths:

Have a base developed in the capital city of India which will give cost cutting advantage inDistribution and promotion of the product.

Specially designed cellphone for aged people As we are the first one to entering a nice market their will be a No competition or substitute . Due to non-competitive, monopoly can be archived for a period of time.

Weakness:

Promotion in the rural parts of India could be a problem as there is no major sourcing ofadvertising and marketing the product. People might find the product too flashy and bold. As we are new entrant in the cell phone industry, people might not have great faiths in our

cell phone.

Opportunity:

There is a huge potential and opportunity for Just 5 as they can introduce cellphones for blind& deaf people.

As it is still a raw market, Just 5 can easily introduce other variants of the phone if somethingdoesnt fall into place.


8/19

7

Threats:

There are great threats as Just 5 is just a new entrant, other big companies have an advantageof economic of scale which will help them cut down the cost of the cell phone withoutreducing on the features.

Other big corporate companies might use Just 5 special feature and incorporate in theircellphone

Other companies might use Just 5 the promotional technique to expand themselves. As they are prior in this industry, they have a huge customer base which is difficult to attract.

7. 6. Porters 5 ForcesAnalysis


9/19

8

8.1 The threat of new entrants

JUST 5 sooner or later will have threat of new entrants as we are introducing a new segment and a

product in the market. The only thing that can be predicted right now Is that new entrants will enjoy

the already developed market and use Just 5 as their base to make enormous profit.

The new entrant will also lean from the mistakes of Just 5 and would fix these kind of issues before

launching their product in the market.

8.2 The threat of substi tute products or services

There is no substitute available in Indian market, which can compete Just 5. As per we predict, Just 5

can enjoy its monopoly for 6moths2years depending upon how fast other companies coupe up with

our technology and be ready to compete.

8.3The bargaining power of customers (buyers)

Even though JUST 5 is offering a unique service, the negotiating authority of customers will still tendto increase. To reduce the bargaining power of customer, Just 5 has kept the price of the cell phone so

economical that byers wont have any scope of bargaining on the product. The product is total valuefor money and when it will be launched in the market, it will be necessity for every senior to buybecause of its amazing features. (Porter's 5 Forces)

8.4 The bargaining power of suppli ers

The supplier power for just 5 would not be in much of its favour as Just 5 is a new product and has

just entered the market; it cannot enjoy the benefits of economies of scale. Just 5 might also have to

bare the whole cost of few cell phones in the initial stage to market the product using different

promotional strategies.

8.5 The Degree of Rivalry

The degree of rivalry, is one of the most common of the five forces as well as the most obvious in the

industry, but for JUST 5 the chances are less as there is not much of a competition in the initial stage

but soon there will become a competitive market and JUST 5 might have to face rivalry from the top

most industry in this segment.The rivalry between other companies as well as JUST 5 will determine

how attractive JUST 5 is to the community and the customers looking for tuition.

* This force is located at the centre of the diagram;


10/19

9

(Tutor2U)

* Is most likely to be high in those industries where there is a threat of substitute products; and

existing power of suppliers and buyers in the market. (which will not occur in tut companies like

JUST 5 for its initial years) (Porter's 5 Forces)


11/19

10

8. Organizational Structure9.1 Management Team Personnel.

Mango Telecommunications PVT LTD will begin with slowly establishing itself and provide

excellent services to the Business world. We are a company based in India for now but we plan toreach out to the world, we are a new organization but we have are goals set towards being well knownin the field and doing exceptionally well by maintaining a hardworking environment in our company.The main goal for the company right now is the successful launch of its new cell phone, which weexpect to do wonderfully good in the market. We will make sure that we stay on track and achieve ourgoals.

JUST 5 have chosen the organizational structure comprising of both a flat system with

decentralization. Decentralized system possesses a meaning in which managers and directors havemore time to focus on the essence of the organization, rather than worry about the little detail.Decision making becomes and empowerment, meaning that the company directors will be able tomotivate our tutors giving them the right push to gain their best performance in tuition as well as

encouraging them to be loyal to the company. The reason for the decentralized structure is due to thefact that it is a cell phone company, which means that the company will not focus on the little detail ofevery single cellphone, distributing this responsibility will help to increase knowledge and theirexperience.The flat system will give the decision making an ease, allowing all the members of the directors toparticipate and be equal, especially that everyone on the directing team owns a fifth of JUST 5.Having a flat structure also means that all the relevant information will be relevant to any staffmember, allowing them to plan for the future as well as being aware of what is going on in thecompany both financially and overall progressively.

ManagingDirector

Sanhit Jain

Service&QualityDirector

Milan Bir

HR Director

Ujwal Garg

MarketingDirector

Sonali Katyal

Service&Quality

Dhruv Dutt

Finance Director

Aditya Jain


12/19

11

9.2 Profiles of Directors of JUST 5.

Managing DirectorSanhit Jain

Sanhit is a young entrepreneur with a diverse culture who has the flexibility to adapt quickly to newsituations making him the perfect aspirant for the Managing Director position.What mostly makes Sanhit suitable for this job position is his determination and his results drivenattitude, he is spot on perfect on managing the company, setting realistic deadlines to tasks and takingfull responsibility for motivation and keeping up the motivation of the employees.

Finance DirectorAditya Jain

Aditya is brilliant at Mathematics and he is very sharpened in terms of Accounting and therefore isperfect for the financial director. Aditya has had past experiences in parents business and thereforecan be seen as reliable and trustworthy after completing several projects successfully. He is also quiteaccomplished and careful and therefore has an exceptional understanding of what is required of afinance manager and therefore will be able to work on own initiative or part of a team.

Service and Quality DirectorMilan Bir

Milan is a young passionate and a flexible hard working character. We have chosen him as we believethat he is reliable and motivated to develop the quality and service of our company, having a strongand clear sense of judgment just makes him the more suitable applicant for the Quality and Servicedirector position.We believe that Milan will be more than an asset to the company.

Marketing Director: Sonali Katyal

Sonali is a young striving lady from the business world who has had both family and businessinvolvements in the Marketing side of a business, therefore her being trustworthy for the know-how inmarketing helps her to become exactly the person we would need for applicable marketing.

Human Resources Director- Ujwal Garg

Ujwal is a young hardworking and self-driven motivator. He is capable and deserving for the role ofbecoming the Human Resources Director for several reasons including his qualifications, He fits inwell based on his experiences and accountability, it is anticipated that he will be an extremelyresponsible HR Director and will be successful.

Service and Quality-Dhruv Dutt

Dhruv Dutt is a hard working character and is widely experienced with the standard of the product ashe has been working with his fathers cell phone manufacturing company. He has given his heart andsoul to the company with his unique way of tackling the quality check of the product.


13/19

12

9. Target MarketJUST 5starget market is quite diverse, but specific. Targeting students from the youngest age up

until university, there will be a tutor allocated to any student with a difficulty in any subject theyrequire. However, narrowing the target market, the company will be for any students all aroundUxbridge and Hillingdon, but not any further, that is from the geographic perspective.Demographically, it is targeted towards students with a secondary and a higher education that is ifmore specified. Considering the market from the psychographic perspective, it is customarily towardsstudents who want to do comparatively well and who are willing to pursue a career in the future,typically students who have a problem in their certain part of studies as tuition with a higher educationprofessor becomes too expensive and boring, the solution is always JUST 5- making educationsimple. Behaviourally it is generally for students who have difficulty in learning and are not able tocomplete something due to not having the right approach to learning, targeted at the students who findeducation too difficult to consider, not understanding certain concepts thoroughly and need in depthtime in that certain area.

The 4 ps mentioned above are as called The Marketing Mix. These are used by marketers on how

to help the new product or service grow in the existing market in comparison to all the othercompetitors which may exist in the market already for similar products or services.

Now we will talk about on how we think the 4 psare beneficial to our product and how we will use

to for our new product to grow in the current existing market


14/19

13

10.12 ProductProductProduct basically means the features that that actual service or good

possesses, also how it may satisfy the consumers needs and wants. Any average

product includes basic warranties, guarantees and consumer services.

Just 5 has large key pads and large screen for easy reading, a torch and a sturdy body

that can take falls. The phone will have an additional feature of a sensor which can be

carried on the user. If one moves say 10 to 15 feet away from the phone, a beep will

alert them that they've left the phone behind. A person can even leave the mobile in a

suitcase and it will alert you if someone moves it without your knowledge. In case of

any emergency where the owner of the phone needs any kind of medical help and he

presses a red SOS button on the back of his mobile phone which activates a loud

siren, alerting passers-by to his plight. We would also install a application The

Jitterbug, by Samsung introduced new application specific for older citizens. Jitterbug

Medication Reminders service helps the elderly to stay up-to-date and on schedulewith their prescription schedule. This service is similar to the Auto-Med iPhone

Application.

11.Pricing StrategyPricingpricing is the process by which the company decides the finally selling price

of the good or service which will be charged of the final user or consumer for that

product .it is not necessary for the price to be in monetary terms it may also and

exchange in order to procure a good or a service; for e.g. energy time or attention.

Pricethe pricing of the phone is from Rs 35004000 depending on weather the

phone is a single or dual sim phone. The pricing of the product includes all the

production costs such as cost of raw material, labour, battery, packaging etc. and it

also includes overhead costs such as transportation or the retailer commission etc.

12.Marketing Strategy-PlacePlacement - (or distribution): placement refers to the distribution channels used to

circulate the product or service within the market. Its how the product or service may

reach the buyer be it through retailing wholesaling or point-of-sale assignment. The

place includes the distribution channels weather by retail store or online buying and

the industry or geographic locations that is the division component that says weather it

caters to senior citizens business citizens families children or young adults. It may

also include the surrounding environment for the sale of the product, as it may be a

contributing factor in the sales for that product or service.

Placethe product will be circulated all over the Indian Market as the target market

itself is small so if we reduce the boundary of the distribution it may cause the

company or our product to go into heavy losses .As mentioned above the place refers

to two types of distribution. The product will be sold through retailers as well as

Internet selling. It targets a niche market of middle ages men and women who may

want to give this phone to their partners to due increase in nuclear families or the

senior citizens them self so that they may be able to contact their children or doctors

in case of any emergency.


15/19

14

13.Promotion & AdvertisingPromotionpromotion basically means on how to familiarize the target market that

the product or service exists in the market and its features also we may familiarize the

brand or company of which the product is. Methods of promotion may include

individual selling, advertising, publicity.

The promotion for Just 5 will be carried out through advertisement like new paper ads

or television commercials as the older generation is found to read the news paper and

well as more engaged in watching television which is a general observation in

majority of the households. We are also publicizing it through the internet as it is an

easier platform to reach the middle aged people as majority of them work and have

access to the internet and work through it . We have also though of a using a

technique, which is not quite followed by the majority of the existing market the

product will be circulated in hospital as it has an emergency medical feature to it,

which can contact your doctor or give a call to ambulance in case of an emergency.

14.Segmenting Targeting Positioning Of Just 5Segmenting relates to dividing the market into different segments or part which we want to sell our

product to. It relates to fragmenting the entire mass market into segments of customers as differentsegments of have a different variety of needs, as marketers offer them a variety of choices marketing

segmentation is also a very important part in the segmenting aspect of the market as it needs to attendto both the customer as well as the organizations marketing strategies.in the case of our product our segmented buyer are middle aged and elderly population of India .


16/19

15

How can we segment and target markets?

Make a group of our expected buyers into segments Divide the products into categories Create a product-marketed graph and estimate

The market size Demark your target market Perform marketing function to capture the market

14..1 BASES OF SEGMENTATION

Geographyall over the Indian sub-continent Demographicselderly, middle class , aged 55-80 Psychographicsfairly decent lifestyle which any middle class family would carry Benefits soughtSOS button, IEAS feature (alarm feature ) , big keypad , large screen . Usage patternrate of usage 80 -90%

Criteria for selecting target segments

Market sizesustainable (niche market but since we cover the entire country it becomes alarge market)

Expected growthpotential future Competitive positionfairly none (only one such competitor exists iball whose phone had

failed to be marketed)

cost of reaching the segmentaccessibility (through promotion strategies) Compatible with the organizations Objectives & resources

14.2 POSITIONING our productProduct positioning:

The image it creates that the product has in the mind of the potential buyer in comparison to ourcompetitors

PERCEPTUAL MAPS

Point put the important features of the class of the product Find out whether existing brands in the same market have these features or not Features which are prominent in an ideal brand

Knowledge about a brand has two aspects to it brand image and brand awareness help to position theproduct in the consumers. Connection between brand and consumer leads to long term partnershipand loyalty.

The most important factor in the positioning of a brand is that we need to find a suitable placefor the brand to be marketed in as well as to be marketed in the consumers. A consumer shouldeasily identify that for a given need or want this is the brand. If brand fails to do this, it simplybecomes

just another product or commodity on supermarket or mall shelf.

The target market will always have a personal consumption profile as in our case the personal

consumption profile refers to marital status (as the elderly strata are usually married), consumption ofproduct will always be at an high (as in todays world its a necessity more than a want ),


17/19

16

14.3 Demographics Income level: could be anything from 10,000 to 50,000(a month) Age: 5580 Sex: no preferred sex Race: none Family: no fixed family size.

What are Targeting Strategies?

Targeting strategies may also be defined as advertising to attract the target market and increase salesas well as profits by using consumer friendly techniques.

Types of targeting strategies

Consumer marketing strategythe activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value for customers, clients,

partners, and society at large

Behavioral targetingbehavioural targeting refers to observing the consumer pattern ofpurchasing .

Contextual targeting- Segmenting marketApproaches to subdivision of a market or population into segments with

defined similar characteristics. Five major segmentation strategies are (1) behaviorsegmentation, (2) benefit segmentation, (3) demographic segmentation, (4) geographicsegmentation, and (5) psychographic segmentation

15.Differentiated strategy .Differentiation strategy means that the valued good is provided to customers with new unique featuresand characteristics of a company at economical price. Differentiated products satisfy customers'unique needs or preferences for differentiated products. Companies that follow a differentiationstrategy concentrate or focus on product innovation and developing product features that customersvalue rather than on maintaining the lowest competitive price .

Drivers of Differentiation .

Unique product features . Unique product performance .

Exceptional services . New technologies . Quality of inputs . Exceptional skill or experience . Detailed information .

Products can be differentiated through various number of ways so that they stand apart from

standardised products:

additional features an image of prestige or status unusual or unique features more responsive customer service rapid product innovation advanced technological fear


18/19

17

16.BibliographyTutor2U. Porters Five Forces. 2011. 18 November 2011

.

Porter. Porter's 5 Forces. 1998. November 2011

.

Porter's 5 Forces. 2011. 2011 .

Porter, Michael E. Differentiating Features That Raise the Performance a User Gets. 1985.

New York: Free Press.

.


19/19

Documents

foundations of marketing