MARKETING PLAN

MICRON MICROWAVE

WRITTEN BY
ANDI AZHAR
101183052

DEPARTEMENT OF BUSINESS ADMINISTRATION

COLLEGE OF MANAGEMENT
ASIA UNIVERSITY
2014

1. Introducing The Case Company

Micron is entering the growing market of microwave ovens. All though in US, the
sales of microwaves have been declining as nine out of every four households
now have an oven. It is still a growing market in many international markets as it
is a tried and true technology and is greatly becoming one of the standard kitchen
appliances. Micron is targeting this kitchen appliance market in south-east Asia
and also restaurants where microwaves have become a de-facto standard for
heating foods. All though the market leader Samsung has an edge, they believe
that they can compete because the unique features of the product offering a morefor-less pricing.
Microwave Oven as a consumer product, does not have much exposure in the

Bangladesh market. In this country, most consumers tend to heat their food using
gas stoves. The objective is to make consumers shift from stoves to microwave
ovens as a primary way to heat foods. The following marketing plan include
strategy based on 4Ps of marketing-product, pricing, promotion, and positioning.
Focus has also been enforced upon advertisements and budgeting, since all
companies do worry about financial limitations even if the companies are
achieving break even by the year end.
Microwave oven, being a consumer product, is still in the growth stage in terms of
usage and sales although the market is already flooded with Chinese product.
Every brand even the cheapest once, knows what a costumer desires and invests
heavily on R&D to provide them with those necessities. Therefore its rather
difficult to select an area to focus, for gaining competitive advantage. Some top
brands such as Samsung, Sanyo, and etc have already captured majority of the
market and the rest are occupied by the cheap Chinese brand.
2. Situation Analysis
Microwave oven first introduced in the commercial market in 1952 and gaining
popularity since the mid 1980s, have been growing to become a standard kitchen
appliance in most households across the world. However, the potential of growth
still exist in the vastly untapped market of South East Asia. Even in the world
market there are huge potential to export microwaves as the kitchen appliance
market is substantial. New households are formed everyday and each needs their
own microwave.
Micron, though a new company, is a well funded startup with a unique selling
proposition. We plan to release a wave of microwaves to penetrate all the major
segments with several different features that will vary with the price.
2.1 Marketing Summary
Professional chefs have often complained that microwave are not ideal for
cooking as they are of limited usefulness because browning, caramelization, and
other flavor-enhancing reactions cannot due to the small temperature range.
Specific segments targeted by Micron are consumers in the kitchen appliance
market as well as restaurant in need of quick reheating of foods.
Microwave oven come in various standard sizes. Micron plan to market their
product in the three major sizes. Furthermore, as technology cost decreases we can
now add several value added features without increasing the price. We believe that
this will give us a competitive edge.

2.1.1

Target Market
Market segmentation is necessary, which is dividing a market into distinct
group of buyers with different needs or behavior who might require separate
products or marketing mixes. Of the four level of marketing (segment, niche,
local and individual), we shall use segment marketing. In todays world, it
has become necessary to divide the market using several such segmentation
techniques, and we will use four.
- Geographical Segmentation : urban and suburban regions of Bangladesh.
-

Notably, but not limited to Dhaka and Chittagong.

Demographic Segmentation : we are targeting people with a stable income

of over 20.000 taka

Life stage Segmentation : our micron 1000 model is targeted to single

young people and newly married young couples.

Behavioral Segmentation : Micron 1200 will be most useful for heavy
users whereas the Micron 1000 for light users. The 1200 model will also
be advertised heavily during Eid and other special occasions where
convection heating.

2.2 SWOT Analysis

Strength
- Convection heating methods which combine traditional oven heating with
-

microwave. Completely new in Bangladesh

Value Pricing

Weakness
-

Lacking brand awareness and image

Opportunities
-

Low cost even through more value added add-ons

Increasing demand in the kitchen appliance market as microwaves become
a necessary accessory

Threat
-

Entrance to a well established market will result intense competition

The well established brands may use their market share as an advantage if
they decide to advertise

2.3 Competition
As noted before Microwave oven have been around since 1960s and have gained
popularity to now become a default kitchen appliance. Many well-reputed
business have already an established market in the microwave industry. Yet, it
cannot be forgotten that is still a growing market and as such, penetration to this
market is possible. Competition from such well established firms is a major factor
to consider.
Here is the following is an ranking of brand value for both studies result about the
microwave brands :

As such primary research was taken to analyze the countries market. The biggest
competitors are, in order :
1.
2.
3.
4.
5.
6.

Philips 34 %
Sharps 25 %
Samsung 14 %
Moulinax 12 %
Sanyo 7 %
Others 8 %

2.4 Product Offering

Our first product line of microwaves will come in three sizes, compact, mediumcapacity, and large capacity.
- Compact : A compact microwave also called small, portable, or
countertop, is the smallest type of typically available consumer
microwave. Compacts are the most popular size of microwave oven,
dominating the market. Our will be 50 cm wide, 35 cm or deep and 30 cm
or tall. These ovens are primarily used for reheating food and making
microwave meals and popcorn. These ovens are not made to cook large
amount of food. Micron 1000 compact is the cheapest product of the line
targeting small fast food shops and people in need of quick reheating, such
-

as single youngs.
Medium capacity : these microwaves are larger than compact microwaves.

Their height and depths are only marginally larger that compact, but they
will be 50 c, wide or more. Their interior will be 45 litres and power runs
at 1000 watss. These are standard family sized microwave. They will
have few more auto cook features and incorporate grills. Micron 1100
medium is targeted towards those who want to do some cooking at home,
-

typically a growing family.

Large capacity : these are big microwaves designed for cooking large
meals. This size will come with additional features including combining
them with convection cooking and top browning elements that will brown
food. This product offers the best value for money. Micron 1200 large is
targeted towards aspiring cooks, as well as fast food and traditional food
shops.

3. Marketing Strategy
Microns marketing strategy will be to through extensive promotion to create
demand for a yet properly untapped market. Our consumer targets have been
discussed above in Market segmentation. The primary consumers are households,
but we are also targeting fast-food shops with our more expensive micron 1200
model.
3.1 Product Strategy
Micron microwave product line will come with all the features as described in the
earlier product review section, plus a three year warranty. Depending on sales
volume, we plan to introduce several more ovens with specific features next year.
Microns distinctive logo will be featured prominently in all our electronics and
packaging and the logo will be further reinforced into prominence during the
marketing campaign.
4. Conclusion
We realize that the above marketing plan focuses mostly on advertising and
promotion, however that has to do with our belief that a new product should be
extensively advertised in a new market. However we all know that first year is all
about gaining share and not about profit. We believe that micron can achieve the
highest possible market share and build a great brand image while maintaining
break even provided the guidelines are being followed.