new device presentation (marketing management, b-school)
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DVC-1000 Marketing Plan
Marketing Management, Professor O’NeilCreated by James Igoe
Executive Summary• The Marketing Opportunity
– increased dollars spent on computers and media devices– an underserved, as well as a growing, market
• The Product– interconnection between media devices with computer hardware
– targeted to satisfy the demands of the home and youth markets • The Marketing Strategy
– collaboration with PC retailers– print ads in design and home-oriented computer media– Internet advertising we expect to tap various segment types
• Objectives and Results– generate 1.5 Millions dollars of profit over the next three years– provide entry into an underserved and growing market
The Product
• Increased interconnectivity between media devices
• FireWire Connection (to Apple or PC)
• RCA and S Connectors (stereo connection,VCR)
• USB Port (iPod and MP3 connectivity)
• Digital Video connections
• Skins: Additional color and textures
• High quality, average price
Production Plan Timeline
Task Time Period Team Responsible Cost/Expenses
Design basic structure and layout 2002 Q3 Marketing Team, R&D, Production TBD
Negotiate vendors for subcomponents 2002 Q3 Marketing Team, Purchasing, Legal TBD
Design alternative skins for product 2002 Q3 Marketing Team, External Design Firms TBD
Evaluate (consumer test) basic design and skins 2002 Q4 Marketing Team, Consumer Testing TBD
Negotiate manufacturers for skins 2002 Q4 Marketing Team, Purchasing, Legal TBD
Develop manufacturing plan 2002 Q4 Marketing Team, Production TBD
The Fulfilled Customer Profile
Age-groupIncome
(Median) Career Focus Geography Education25 to 44 55,000 White-collar East coast, but varied College
• Alert to opportunities to broaden their knowledge• Leisure activities tend toward family and home• Open-minded to new ideas and social change• Conservative, practical consumers• Look for durability, functionality and value
The Experiencer Customer Profile
• Young, vital, enthusiastic, impulsive and rebellious• Seek variety and excitement• Savor the new, the offbeat, and the risky• Enthusiastic about the new, quick to cool• Abstract disdain for conformity• Exercise, outdoor recreation and social activities
Age-groupIncome
(Median) Career Focus Geography Education15 to 35 33,000 White-collar East and West Coasts College, College-oriented
Promotional Campaigns• Magazine Advertising: Golf and PC Magazines
• Internet OEM Market
• Editorial evaluations
• Additionally, youth and music magazines
Promotional Plan Timeline
Task Time Period Team Responsible Cost/Expenses
Release press materials detailing plans 2002 Q3 Marketing Team, R&D, Production TBD
Develop trade show promotions and schedule 2002 Q3 Marketing Team, R&D, Production TBD
Design website displays for Samsung sites 2002 Q4 Marketing Team, Web Development TBD
Design magazine advertising for product 2002 Q4 Marketing Team, Sales, External Ad Firms TBD
Provide evaluation units to major computer magazines 2002 Q4 Marketing Team, R&D, Production TBD
Negotiate vendor tie-ins and advertising 2002 Q4 Marketing Team, Sales, Legal TBD
Product release 2003 Q1 Marketing Team, Sales, Production TBD
Product PositioningPrice (Y) and Quality (X)
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
1 2 3 4 5
Sony
Formac
Canopus
Samsung
Our Competition
Sony Canopus ProMax Formac
DVMC-DA1 Media Converter ADVC-100 DA-MAX+ Studio DV/TV
$500 $299 $1,795 $399Strengths
Size Very largeImage Excellent Positive
Resources ExtensiveDistribution Extensive
WeakenssesSize Small Small Small
Image None NoneResources Limited Limited Limited
Distribution Japan only Limited Limited Limited
Projected P & L2003 2004 2005
(Year 1) (Year 2) (Year 3)
Units 40,000 30,000 15,000Price (retail, est.) 250.00 250.00 250.00Price (cost of goods, est.) 150.00 125.00 100.00
Net Sales 10,000,000.00 7,500,000.00 3,750,000.00Cost of Sales 6,000,000.00 3,750,000.00 1,500,000.00
Gross Margin 4,000,000.00 3,750,000.00 2,250,000.00
ExpensesDepreciation 900,000.00 900,000.00 900,000.00
Marketing 2,000,000.00 1,500,000.00 500,000.00Administrative 500,000.00 500,000.00 500,000.00
Total Expenses 3,400,000.00 2,900,000.00 1,900,000.00
Operating Earnings 600,000.00 850,000.00 350,000.00
Taxes 204,000.00 289,000.00 119,000.00
Net Income 396,000.00 561,000.00 231,000.00
