Marketing Management 2011

Marketing Management
Submitted to: Mr. UMER MALIK Submitted by: H M IMTIAZ ASMA TARIQ SYEDA MALAKA ZAHRA

UMT

Table of contents

Page 1

Marketing Management 2011

Executive summary Company introduction Training and development Vision Keys to success Mission Objective Business Objective Financial Objective Market Objective Market Analysis Summary Market segmentation Industry analysis Competition and Buying Partner Target market segment strategy Strategy and implement summary Market Strategy Sales strategy Sales forecast Milestone Management summary Personal plan Financial plan Important assumptions Break even analysis Projected profit and loss Business ratios Conclusion

Page 2

Marketing Management 2011

Executive Summary
Califon telephones have revolutionized the coounications arena, redefining how we perceive voice communications, Traditionally, Califon phones remained out of the hands of most consumers due to their high cost. As a result, cell phone carriers have invested time and resources into finding ways to give the systems higher capacity and thus lower cost. Cell systems are benefiting from this research and starting to develop into large-scale consumer products. Today, Califone phones are truly consumer electronics devices with over 59million subscribers. The nokia bowl and QUALCOMM stadium are further evidence of the idea that cell phones are consumer electronics devices. Cell phones have ceased to be an exclusive status symbol of highpowered lawyers and are now in the hands of millions of consumers. In order to achieve this goal, garbles Califone phones critical success factors will be to identify emerging trends and integrate them into our company operations, respond quickly to technology changes/be there early, provide high-quality services, invest time and money in marketing and advertising, expand into specialty markets, and stay ahead of the technology curve.

Brand management

Page 3

Marketing Management 2011

A new product launch Califone mobile

Company introduction
Califone private limited start in 2010 to provide a new mobile hand set for Lahore consumers and surrounding areas. Miss Sameera who is working as chief executive officer of the company. Chief executive officer (CEO) CEO stands for Chief Executive Officer, and is often the title of a person who holds the highest position in a company or on a board. A related title is president, which may be used in place of CEO. The title of president of a company was commonly used for years, but in the democratic sense, the people choose a president. In the sense of a company, the workers of the company in most cases do not choose a president, so CEO makes more sense since companies frequently are not run on democratic principles. General Manager A General Manager has broad, overall responsibility for a business or organization. Whereas a manager may be responsible for one functional area, the General Manager is responsible for all areas.General Managers manage through subordinate manager. However, a General Manager may have individuals reporting to him/her who are not managers. A General Manager has the power to hire, fire, or promote employees. A General Manager is responsible for higher level planning than a manager. A General Manager is often responsible for the overall strategic planning and direction of the company or organization and leaves the day-to-day management of the various functions to the managers. Human Resource Management Human resources are the people that work for an organization, and Human Resource Management is concerned with how these people are managed. However, the term Human Resource Management (HRM) has come to mean more than this because people are different from the other resources that work for an organization. People have thoughts and feelings, aspirations and needs. The term HRM has thus come to refer to an approach, which takes into

Page 4

Marketing Management 2011

account both: 1.the needs of the organization 2.the needs of its people.

Training and development

Different individuals have their own needs and aspirations. HRM therefore involves finding out about the needs and aspirations of individual employees, for example through the appraisal process and then creating the opportunities within the organization (e.g. through job enlargement) and outside the organization (e.g. through taking up educational opportunities at local colleges/universities) for employees to improve themselves. HRM therefore relates to every aspect of the way in which the organization interacts with its people, e.g. by providing training and development opportunities, appraisal to find out about individual needs, training and development needs analysis, etc. Training - opportunities and courses for individuals to develop skills, knowledge and attitudes that help the organization to achieve its objectives. Development - the provision of opportunities and courses for individuals to develop skills, knowledge and attitudes that help themselves to achieve personal objectives. Training and development needs analysis - an analysis of the opportunities and experiences that are required for individuals to train and develop in order to meet organizational and personal objectives. A training and development plan can then be created to set out how these needs can be addressed in practical steps. Operation manager One of the keys to success with any business is to have a good business operations manager. Of course, in a small business the owner and business operations manager may be one and the same person, but the principles are still the same. The business, regardless of its size, must be run efficiently and have every aspect of the operation coordinated. This includes the overseeing and managing of employees and maintaining and controlling inventory in the case of a business that sell products. A good business operations manager is also usually responsible for keeping the customers happy by dealing with customer complaints. All of this requires continuous on the training no matter how much formal schooling has taken place. It is also usually helpful to get expert advice and this can be obtained in a variety of ways. There are courses offered by many companies to help train a new business operations manager or to bring an existing one up on new techniques and innovations. There is good training available from many sources the internet to help a business operations manager keep abreast of important developments. The important thing is to remember that businesses products and services are always changing and its important not to fall behind in either marketing or development. It is very important for a business operations manager to keep

Page 5

Marketing Management 2011

up with all of the laws and regulations that may impact the business such as employment related laws and ordinances. This includes everything that is adopted on the federal, state, or local level that may day-today operations. Again, the internet can be a good source for this information.

Financial manager Nature of work Employment Job outlook Projections Earnings Wages Related occupations Sources of additional information

Almost every firm, government agency, and other type of organization employ one or more financial managers. Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization. Vision Our company vision to attract all of generation and to set a model in the mobile phone manufacturing industry through ideal for small to medium size rooms. Lightweight and fully portable, this fully digital boom box allows you to record and play music or speech. Great for music recording and playback, or close-range speech recording and review. Remote control included.

Keys to success
Our company keys to success will include: 1. provide excellent customer service 2. grow and maintain a referral network of customers 3. respond rapidly to customer problems with product or plan

Page 6

Marketing Management 2011

Mission
Garbles Califone mission is to offer its customers the highest quality cell phone products and services. Its owner focuses on personalized service to his customers by offering convenience and rapid service. Additionally, garble Califone has the technological expertise to assist customers in picking the product and service that best meets their needs. Finally, our staff will have strong vendor relationships with the product suppliers and will be able to meet their needs. Finally, our staff will have strong vendor relationships with the product suppliers and will be able to meet customers demand for the newest innovation in Califone phone technology.

Objectives:
The company plans to focus on the following target markets that will provide us with the greatest market penetration: The specialty business users, the general business users, and the personal users. We intend to offer products and service packages that are priced appropriately for each segment and will offer the services that best suit each segments needs. Public and private partnerships with business, financial and nonprofit communities are key to spurring quality job creation and investment throughout the citys neighborhoods. Our company will center on serving on the nice burg community (presently at a 6% per year rate) as well as concentrating on the local pleasant village population, banking on the current growing trend of using mobile phones. Our company will concentrate on selling global system for mobile communications protocol cellular phones-sales, services and support.

Business objectives:
Company growth Become established as the leading distribution of cellular phones and wireless communications services Increase number of retail outlet

Financial objectives:
create and increase revenue

Marketing objectives:
increase marketing efforts expanding market area expanding marketing reach brand recognition increase telemarketing efforts

Market Analysis Summary:

Page 7

Marketing Management 2011

The market potential is huge for our products, evidenced by what appears to be the unstoppable growth of the telecom industry. Currently, the telecom industry is among the strongest growth industries and is responsible for huge gains in the capital markets. Future growth of the market/products is projected in the following areas: Text messages between friends (in Japan this big). Users can send regular Short-Message Service (SMS) or email on their phones. Email is of course limited to small file sizes, but many of the phones allow for English characters to be sent. Each provider also allows special characters to be sent, such as an array of happy and sad faces, small animated images, animals, people, hearts, etc. When special characters are not available, people often use a specialized set of faces to show emotion. Email can also be sent between different provider phones, but many of the special characters are lost, hence users may try to keep a circle of friends on the same provider to receive the special characters. Email, of course, may be sent from computers as well, but files are often stripped of headers and attachments when received on cell phones. One of the recent popular additions to many of the Japanese and Korean phone models is a CCD Camera that is mounted either on the outside of the clamshell or on the clamshell hinge. The camera lens is slightly smaller than a dime and takes 4x4 cm pictures to display on the phone's screen or to send to others. Not only can users take pictures, they can take video clips as well. Most phones take between 5-15 seconds of footage due to memory limitations, but they can send streaming video. Many of the advertisements for camera phones show people taking to each other and watching each other on the screen (both holding the phone and camera at arm's length and using a hands-free microphone and earpiece). The camera also has a couple of neat accessories including an external flash that pops into an accessory port and a miniature printer that will print out pictures. Our company will try to take advantage of these developments and serve its customers in all these new trends and developments.

Market Segmentation:
Garbles Cellular Phones, Inc. will focus on five customer groups, bearing in mind that it is quite customary today to have more than one cell phone per family:

Children in the age group of 10-17 years old Students General public Professionals Service organizations and companies that need to be in constant communication with their employees.

Page 8

Marketing Management 2011

Market Analysis:
Year 1 Potential Customers Children 1017 years old Students Professionals General Public Operating Service Companies Other Total Growth 3% 2% 2% 2% 4% 90,000 50,000 40,000 250,000 40,000

1% 2.29%

30,000 500,000

Industry Analysis:
The market is dominated today by three large companies: T-Mobile Wireless Owned by a subsidiary of Deutsche Telekom since May 31, 2001. Revenues: Exceeding $13.6 billion in 2001. Wireless Phone Service Subscribers: Cellular voice, messaging and high-speed wireless data services to more than 8 million customers. Cellular Phone Service and Technology: T-Mobile Wireless operates the largest all digital, wireless networks based exclusively on GSM (Global System for Mobile Communications)

Page 9

Marketing Management 2011

technology. GSM is the most widely used digital standard worldwide, accounting for more than 70 percent of the total digital wireless market.

Cingular Wireless Cingular wireless is the second largest wireless company in the U.S. A leader in mobile voice and data communications, Cingular is a wireless company determined to promote the individual to a new level. Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Headquarters in Atlanta, Georgia. SBC owns 60 percent of the company and BellSouth owns 40 percent, based on the value of the assets both contributed to the venture. Revenue on the cellular service in Year 2002 was more than $14.7 billion. Cellular Phone Service Subscribers: more than 22 million voice and data customers across the U.S.A. Cellular Phone Service and Technology: A leader in mobile voice and data communications, Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that lets customers keep their unused monthly minutes. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide, and provides corporate e-mail and other advanced data services through its GPRS and Mobitex packet data networks Nextel Communications Nextel communication based in Reston, VA, is a leading provider of fully integrated, wireless communications services on the largest guaranteed, all-digital, wireless network in the country. Ownership: Nextel Wireless is traded on the NASDAQ National Market under the symbol NXTL. Nextel Partners is a separate company traded on the NASDAQ National Market. Revenue on the cellular service $8.7 billion (2002). Cellular Phone Service Subscribers: 10.61 million (Q4 2002). Cellular Phone Service and Technology: Nextel uses a packet-based platform, the integrated Digital Enhanced Network (iDEN) technology, developed by Motorola. The Nextel 4-in1 serviceNextel Digital Cellular, Direct Connects, Nextel Mobile Messaging, and Nextel Onlinecovers thousands of communities across the United States. Nextel and Nextel Partners, Inc., currently serve 197 of the top 200 U.S. markets. Garbles Cellular Phones is aiming to gather a share of the market from these three.

Competition and Buying Patterns

Brand names are of little, if any, importance. The key to the buying decision on the part of the consumer is the salesman and the cell phone being in front of them. As has been pointed out in the Competitive Analysis section there are other sellers with similar brand names as those supplied by Garbles Cellular Phones, Inc. which may even be less expensive. It is essential that the salesman point out the salient features and selling points favoring our products. Most importantly, our products must be available in the retail outlet, since whatever products our store carries are the ones that are going to be sold. The need to attract, acquires, leverage, and retain customers remains a primary concern to business. Revenue growth through customer acquisition and retention is as important a requirement in e-commerce as it is in other business. Customers, especially in the Western
Page 10

Marketing Management 2011

business culture, count speed of service as a key reason why they do business with a company. They resent delays and hate waiting for service. In the United States, almost 80% of the gross domestic product (GDP) is generated through different kinds of services, and speed of service no longer distinguishes an enterprise as providing superior value. Customers generally are not thrilled if they receive good service, but they are highly dissatisfied if they do not. Garbles Cellular will provide the necessary framework to cope with these demands by cutting the waiting time for a service. Customers also want consistent, reliable, and easy-to-use service. As the speed of service increases, customer expectations grow, making friendly, easy, and solution-oriented customer service an important business trend. Reflective shoppers get some support from e-commerce as well. They like to investigate products precisely and consciously. However, when browsing costs a lot because of on-line charges, they do less of it. Consequently, they do not get a holistic view of the available options, and their expectations often are not met. Reference-spending customers do not let themselves be hurried or forced. They use alternative offline sources to get information. They refuse aggressive marketing, which is accepted in Western e-commerce. Soon, shoppers will simply wave their cell phone over the item they want and the charge will automatically appear on their cell phone bill. Its happening in some cities overseas already. And right now, MasterCard and Motorola are testing out a similar program here in the States. Retailers have registers that will take the signal from the cell phone, and the purchase is automatically converted to a MasterCard charge. Buyers dont have to sign anything. The scary part is what could happen when people lose their cell phones or have them stolen. There are lots of technical and legal issues to work out here, but paying wirelessly is going to gain momentum quickly. Garbles Cellular is planning to take advantage of these trends of buying patterns. We shall also be very quick in establishing our own website to take advantage of E-trade.

Target Market Segment Strategy

The market for cellular phones and their accessories is very fragmented, crowded and competitive. Among these, there are only a few large local firms that serve the entire city of Nice burg and its surroundings. The remainder is small firms that sell from kiosks in the surrounding malls. Garbles Cellular Phones current niche in its location, variety of products and expertise in serving the public will assure the projected sales. We expect to take full advantage of the trends described in the Market Analysis above, and try to penetrate the market with new innovations and gadgets mainly with the younger generation, using advertisements and demonstrations. We shall also try to lure independent small sellers to join our effort.

Strategy and Implementation Summary

Garbles Cellular Phones will use a strategy of total market service. Assumptions: 1. Every person is a potential customer and all our potential markets will experience growth.

Page 11

Marketing Management 2011

2. Marketing to one segment of the population will lead to an expansion in overall market growth. The following sections review the various strategies that will support this effort. Competitive Edge The Seamed Communication's competitive edge will be: Location: Locating the company in a suburb of nice burg, Home state enables the company to cover a large and rapidly developing customer populace.

Customer Service: Miss Sameera Garbles, owner and CEO of Garbles Califone Inc., has been the CEO of the Garbles Califone Phones Ltd. in the East Atlantic Island Archipelago for many years past, and accumulated a vast knowledge and experience in the Califone phone market, with a special expertise in GSM phones. He is very familiar with his target customer base. He has an excellent reputation for customer service. E-Commerce: The company will make an effort to enhance its sales through a serious and advantageous website in order to attract customers that are reluctant to do business with large companies.

Marketing Strategy
Short-term marketing strategies are those that bring will bring us a temporary boost in traffic. Although these techniques are very important to our over-all plan, they are only a temporary traffic source and must not be solely relied upon. Short-term marketing strategies include:

Purchasing Advertising Bulletin Boards Search Engines

Long-term marketing strategies are those that will bring us a steady stream of targeted traffic over time. These strategies will continue to produce results even years down the road. Long-term marketing strategies include:

Opt-in Lists Freebies Content

By creating and implementing a balanced marketing strategy, using both short-term and longterm strategies, Garbles Cellular will drive a steady stream of targeted traffic to our website. Using this simple formula when creating our Internet marketing strategy and excelling at all three, we hope to guarantee our success. Our short-term marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales. Our promotions will always stay in tune with our company objectives and mission statement.

Page 12

Marketing Management 2011

Sales Strategy
Constructing our Sales Strategy we shall follow the following steps: Sales Success Requires Planning We shall formulate our sales strategy and tactics to achieve our sales success. Analyze Our Potential We shall step through a structured process that will prepare us for the development of our sales strategy. Strategize Around Strengths The description of our sales activity will be analyzed producing a report that reveals factors impacting our sales potential. Develop Our Tactics We shall receive guidance to develop a comprehensive tactical plan to achieve our success. Measure Our Success We shall constantly develop key measurements that mark the progress of financial estimates that guide our growth. Employ an Action Plan for Success We shall provide our sales force a clear tactical plan that is also aligned with management's strategic objectives. The sales strategy of Garbles Califone Phones is simple. The key to customer satisfaction is having the product and services that meet the customer's needs. A crucial part of that is to also have knowledgeable employees to help customers quickly find what they want.

Sales Forecast
Sales forecast displayed here is very conservative although we aim very high, we decided to show a very slow growth and revise the plan on a yearly basis. As a rule we expect to expand the volume much more rapidly.

Page 13

Marketing Management 2011

Sales Forecast
Year 1 Sales Califone Phones Cellular Phones Accessories Fixed Wireless Phones Other Services Total Sales Direct Cost of Sales Califone Phones Califone Phones Accessories Fixed Wireless Phones Other Services Subtotal Direct Cost of Sales $138,000 $126,000 $46,500 $46,500 $357,000 Year 1 $31,650 $30,450 $11,700 $11,710 $85,510

Milestones
The Milestones table hereunder is destined to be a working plan for the formation of the new organization, including legal negotiations, hiring of personnel, rental of the facility, building of initial inventory, beginning of marketing and start of physical operation. The team to execute the chores will have to follow up on the timetable and make sure that everything falls in place to ensure smooth start of sales and success of the organization.

Milestones
Milestone Preview of Start Date End Date 1/1/2010 1/15/2010 Budget Manager Department CEO Department

Page 14

Marketing Management 2011

Business Plan by Investor Concluding Legal Matters Hiring of Operators Conclusion of Rentals Preparation of Website Acquiring Initial Inventory Start of Marketing Start of Operation Totals $1,000

1/10/2010 2/10/2010

$4,000

Owner Department

2/1/2010

3/1/2010

$500 $2,000

CEO Department Owner Department

1/15/2010 2/15/2010 1/15/2010 3/1/2010

$2,500 Programmer Department Store Department Personnel Marketing Department Mgr. All Department

2/15/2010 3/15/2010 $31,000

3/1/2010

4/1/2010

$0 $2,000 $43,000

4/1/2010 4/10/2010

Management Summary
The management of Garbles Califone Phones, Inc. is made up of the owner, a Marketing manager and three other members who will be hired locally and will be added: a Programmer, and two store attendants with one serving at the beginning as secretary.

Personnel Plan
The Garbles Califone Phones' store will operate virtually 24 hours a day 7 days a week. Although the store opening hours will be officially 10:00 a.m. to 6:00 p.m., it is clear that due to our Internet operation the customer support will be a non-stop one. The personnel plan, as detailed in the following table, has been developed to support these hours.

Financial Plan
It is assumed that the owner's private resources will be sufficient to finance any monthly cashflow shortage. However, it would be advisable to establish a bank relationship as soon as possible. Sales could very well increase at a much sharper rate than assumed in these conservative projections. Sharper sales will result in a greater need for funds in support of inventory and receivables. An over-draft line of credit with the bank will be an excellent cushion to fall back on.

Page 15

Marketing Management 2011

This is considered a very good time to start a new business. The economy is beginning its trek up, and consumer spending is up. The Commerce Department reported, "Consumers had increased their spending, the largest advance in nine months." A shorter learning curve will be brought to the business by the owner due to his extensive background and in-depth market knowledge. He has a clear understanding of the need to manage costs and forecast future needs so that the business is not "broadsided" by the unexpected. One other component on which the financial plan is based is wise purchases. Finding the right product, at the right price will enable the business to meet planned margins and maintain inventory at an attractive level with a high turn rate.

Important Assumptions
As a general rule our company will not sell on credit. However for very special cases we might offer short-term credit against valid assurances. We shall accept cash and checks, Visa, MasterCard, Discover and American Express, and PayPal on the Internet. All sales paid via credit cards will be deposited in our business checking account within 48 hours.

Break-even Analysis
Our break-even analysis is summarized by the following chart and table.

Break-even Analysis

Monthly Revenue Break-even

$17,916

Assumptions:

Page 16

Marketing Management 2011

Average Percent Variable Cost 24%

Estimated Monthly Fixed Cost

$13,625

Projected Profit and Loss

There are many factors to include when determining a projected profit and loss statement; these are included in the following table.

Net Worth

$138,816

$253,742

$449,392

Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5731.9902, Consumer electronic equipment, NEC, are shown for comparison. Inventory Turnover 8.67 12.65 12.54

Accounts Payable Turnover

9.78

12.17

12.17

Page 17

Marketing Management 2011

Payment Days Total Asset Turnover 27 2.31 26 1.82 25 1.48

Debt Ratios Debt to Net Worth Current Liab. To Liab. 0.11 1.00 0.08 1.00 0.07 1.00

Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets 0.43 10% 0.55 8% 0.68 6% $138,816 0.00 $253,742 0.00 $449,392 0.00

Acid Test Sales/Net Worth Dividend Payout

9.24 2.57 0.00

12.66 1.97 0.00

15.21 1.58 0.00

Conclusion Califone brand, the battle of Califone in Thailands mobile phone operator market Strategic
question how can Califone gain higher market share by focusing on customers in Bangkok? Purpose The purpose of this research is to investigate, analyze current competition between Califone and other competitors with customer insight in order to find out the possibility for Califone to gain more market share in Thai telecommunication market by focusing on customers in Bangkok area. Theory and Method Researchers apply Business Strategy theory and Marketing mix for service company or 7Ps to answer the strategic question by collecting primary data from questionnaire and interview, while the secondary data are collected from various reliable sources.

Page 18