sony ericsson - nepal - market plan

8/2/2019 Sony Ericsson - Nepal - Market Plan

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MarketingPlan

Sony Ericsson

Sony Ericsson

Going to

Nepal


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Prepared by:

Ahmed KhalifaAmira Elsayed

Hossam MoustafaMoataz SadatRana Rasslan

Rawda Sayed

Presented to:

Dr/Amr Kheir Eldin

Market Plansteps

1- Executive Summary

2- Environmental Analysis

3- Strength & Weaknesses

4-Opportunities & Threats

5- Marketing Objectives

6- Marketing Strategies

7- Implementation

8- Budget

9- Control


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7- Implementation

8- Budget

9- Control

Market Plan

steps

Our Vision

Our vision is to become THE communicationentertainment brand inspiring you for more than

communication tool.

Our Mission

To provide quality end to end communications

services.

Penetrating Nepal with Fashionable & Trendy

mobiles among Youth using Sony influence inside

Nepal.

Shifting the mobile trend from being a luxury to

being a necessity

Contributing in introducing new communication

technologies to the Nepalese market


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7- Implementation

8- Budget

9- Control

Market Plan

steps

Business Environment

Global liberalization has influenced Nepaleseeconomy.

Nowadays, Nepal pursues market-basedeconomy.

Nepal has privatized many public enterprisesthat might be favorable to business community.

Nepal has membership of WTO that has provided

some opportunities to the Nepalesebusinessmen.

All of the above are prime issues related to theglobal business environment that affectsNepalese business community.


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Nepalese Political Legal Business Environment

Following a nation-wide election in April 2008, the newlyformed Constituent Assembly declared Nepal a federaldemocratic republic and abolished the monarchy at itsfirst meeting the following month.

The Constituent Assembly elected the country's firstpresident in July. The Maoists, who received a plurality ofvotes in the Constituent Assembly election, formed acoalition government in August 2008.

Maoist revolution was found as one of the adverselyaffecting factors in Nepalese business community.

Legal system is based on Hindu legal concepts and Englishcommon law; has not accepted compulsory ICJjurisdiction


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Nepalese Economic Business Environment

Govt. Nepal provides normal subsidy to Businessmen.

Tax system is very tedious for Nepalese businessmen.

Nepal is a poor country has low income and low purchasingpower of customer which is one of the major limitation.

Nepalese commercial banking lending interest rate as one of the

challenge in Nepalese economic business environment.

Nepal is an agriculture country. About 80 present of its

population is engaged in agriculture. So, the Nepalese economic

system has depended on agriculture.


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Nepalese Socio Cultural Business Environment

Western culture has led development and variety in Nepalesebusiness sector.

Applied education is lacking for the development of Nepalesebusiness sector.

Nepalese customers are expecting interested products from theforeign (Western) investors, especially the new generations.

Nepalese businessmen have a lack of social responsibilityfulfillment.

Nepal has always remained a land of religious harmony.


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Nepalese Technological Business Environment

Nepal lags behind in the sector of science and technology.

A country should be economically sound for the development inscience and technology sector.

Hence, Nepal has adopted the policy for the transfer of newtechnology, in the following ways:

Directly importing new technology,

Opening branches of multinational companies,

Handing over management of organizations to foreign firms orpersons, and

Sending existing manpower for training and development to enhanceadministrative and technical know how.


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Market Plan

steps1- Executive Summary






7- Implementation

8- Budget

9- Control

Strengths

Brand equity: SONY Ericsson has the equity of twobrands Ericsson that is known as a pioneer in the

telecommunication business and SONY that is known

for its power in entertainment

Diversification: The brand has a wide range ofproducts that could be attractive to different target

segments


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Weaknesses


Lack in understandingCustomer Preferences:the

market is new and hard to predict

Less technology advancement: comparing to

competitors SONY Ericsson has the lower hand

Lack of user centered designs:Nepalese consumer

is a challenge because their preferences are not

yet clear

Modest brand awareness globally:the merged

brand SONY Ericsson is not well established in

that part of the world


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Market Plan







7- Implementation

8- Budget

9- Control

Opportunities

Mostly young market: because young adults tend to

be up to date with the technology

The Nepalese market is growing and cell phones are

going to be a necessity

The cell phone trend is going to take off within thenext couple of years throughout Nepal

The new generation is affected by the western

culture


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Threats Intense competition.

Nokia is dominating the market (42% marketshare)

Bargaining power of consumers: because cellphone is yet considered a luxury

Landline penetration and comparative cost

Poor country (80% of economy is based onagriculture)

Tax system is very tedious and unfriendly to newinvestments

Interest rates are very high

Government subsidies are very weak



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Market Plan







7- Implementation

8- Budget

9- Control

1- Objectives

Since there is such a huge market that needs the

supply of phones as long as you have a good brand

image.

1. We will set their objectives as follows:

2. Setting initial goal of70 thousand phones.

3. Having at least 10-12% of market sharefor the first year.

4. Gradually improve to be No.1in days to come.

Grow by doing sales. Leading to Growth inRevenues!!!


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2- Target Market


The young consumer market can be a potential target market forSony Ericsson mobile phones in Nepal Due to :

young adults in Nepalese community have the desire to be up

to date with technology.

young adults are likely to spend more moneyon technological

items and devices.

Nepal will be advertising cheaper cell phones throughout the

country so that more young people can afford thembased ontheir income.

There has been a marked increase in income per capita, which

allows most people tospend more money on luxury itemssuch

as mobile phones


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2- Target Market


Estimates mobile users in Nepal are approximately 3-4 million.

Out of the total number of mobile users, 7% use Sony Ericsson

mobile phones.

Gender : The target market comprises of both male and female

individuals. (aged between 15 to 50 years).

Lifestyle: The target customers are working executives and college

youths.

Geographical Profile :in both the urban and rural areas where there

is mobile connectivity.


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Market Plan







7- Implementation

8- Budget

9- Control

Product Strategy

Place & DistributingStrategy

Promotion Strategy

Price Strategy


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1- Product Strategies

Segmentation & Style of Mobile Phone

The style of mobile phone would play a major role as

the Nepalese consumers are mostly young adults

with an increasing amount of disposable income and

they look for brands which are fashionable,

especially.

Penetration Technique

SonyEricsson should be differentiated according to

pricing and product features. With heavy competition

cutting down on the profits, SonyEricsson shouldlook into new markets using the penetration pricing

technique and create a new market segment, like

what Nokia did in India with their Nokia 1130 mobile

which was a dust proof phone with a torch.


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Product Differentiation

It could be done on the basis of the respective

sub-segment; if it focuses on music player then

it should be placed in a separate category from

the handset which has camera as its specialty.


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After Sale service - Service Plus

The excellent customer service to further competitive

advantage over the competitors brands.

This could be done by Sony Ericsson Privilege Card

holders silver / gold / platinum. The Card will be

contingent on the points accumulated.

Sony customer care service centers will promise a one-

day maximum period within which to respond to

queries.

Service representatives handling repairs may extend the

option of loaning temporary units at a nominal charge

until the user's phone has been completely repaired.

They will also provide assistance to clients who need to

retrieve data or contact numbers from damaged units.


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Branding and Rebranding

For Sony Ericsson to boost its the corporate identity; it is recommended the re-branding of mobile phones under the umbrella brand, "Sony-.." . The concept is

similar to that utilized by Motorola (Moto-Razor, Moto-Flip, etc.).

This strategy will help leverage upon the existing strong brand equity of Sony in the"appliance" industry, as well as its reputation for product innovation.

This not only reinforces the existing brand awareness of Sony but also tells customers

about what advantages Sony Ericsson mobile phones are capable of bringing tothem.

It is proposed to establish strategic partnerships that will help Sony Ericsson to reachthe primary target market as well as the secondary target market more effectively.

This will help create a stronger brand recall for Sony Ericsson mobile phones in each

category.

In addition, a club of Sony mobile users and users of Sony home appliances withcross product discounts, and membership perks in other establishments will beprovided upon purchase of the said appliances.

For instance, a customer will be entitled to a certain number of credits which may beused in purchasing a Sony Ericsson mobile phone when he purchases a television


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The aim of advertising strategy:

is to increase the brand-awareness and brand-recall, while Sony Ericsson has beenable to establish its name in the mobile phone market; it has not successfullyimplanted its image in customers' minds as the first mobile phone of their choices.

The high priority of advertising strategy is to be able to communicate SonyEricsson's stance on giving its customers the ultimate mobile phones equippedwith functionality suitable for the professionals and state of the art technology.

When marketing goes to the rural area we have to realize that they do not havevarious methods of communication such as internet and television.

To market to the rural area markets we will place add in popular newspapers and

magazines as well as send out mobile vans to market our product.

Lastly we will participate in trade fairs and flea markets which are immenselypopular in the rural area.

1- Promotion Strategies

1-Advertising


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2-Executive Series

"professional edge" should be rooted in the heart of advertisingcampaign.

The message to be delivered through advertising and promotion strategiesis:

"Be yourself! Be a Pro!This is to take into account that Sony Ericssonsprimary target segment is young professionals in the age group of 25 to 40years who have been able to prove themselves in their fields of work.

They know who they are and they are pleased with what they haveachieved in their life so far.

Their "center of gravity" lies in how they feel and how they look ,They areconfident, sure of themselves and know what they want to look for in life.

They accept themselves and are keenly interested in the "Pro world" butnot transform into someone else rather than themselves.

Our target is more mature, more pleased with himself/herself. That's notto say that s/he's perfect.


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2-Executive Series cont.

The advertisement of the above should be featured ontelevision between news or/and informative programs as these are mostwatched by this target segment.

In addition, it should be printed on magazines such as Himal Magazine,Boss, as well as Nepal which are of high interest to the target segment.

Internet advertisement is also highly recommended for this segment.

Strategic advertising partnership with the car distributors such asHyundai, Maruti, Toyota and the like are strongly encouraged so as to

build a co-brand awareness and existence for both Sony Ericsson and carmanufacturers.

The majority of this target segment is existing car owners as well as

professionals that will be seeking to own mid to high-end cars once.


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3-Walkman Series

Sony Ericsson secondary target segment is the urban population in the agegroup from 15 to 25.

People at this age group are seeking to find themselves and their places inthe society. Their sense of belonging is of significant importance.

They yearn to belong to a certain group and are greatly influenced by theirfriends/peers. It could be said that this group's behavior is entirelydifferent from that of the primary target segment. Besides the emotionalaspect, they are looking for entertainment features in mobile phones suchas music, games.

As such, there arises the need for a different advertising strategy.


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3-Walkman Series cont.

Advertisements should focus on featuring Sony Ericsson mobile phones asa way to connect friends and as a status symbol of being recognized as amember of a circle of friends/peers.

In addition, they can derive great music, and games out of Sony mobilephones.

Television still remains one of the choices of the media, however, cinema,billboard, internet and radio advertising are also chosen for the mainreason that this target segment spends much time for these channels.

These could prove to be highly effective advertising means.

Sponsorship of Musical programs or live concerts by mean ofambushmarketing will be an added advantage to the Walkman series.


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1- Place & distributionStrategies

Existing Distribution system

Sony Ericssons current distribution system consists of

one national supplier who acts as exclusive distributor

agent to the Nepal.

This supplier distributes to:a. 3 distribution centers which are Future tech own

store and display ONLY Sony phones.

b. Over 150 Authorized dealers which are multi-

brand stores.


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Channels Members: Proposed Distribution System

Traditional Distribution Channels

Distributor Retailer / Distributor Consumer

Maintaining the traditional Channel will allow us to:

a) Reselling units to a network of retailers.

OR

b) Vending to consumers.

In order to optimize product exposure in the retailchannels, Sony can issue display racks to high-volume

retailers, for free.


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Sony Ericsson Outlet Stores

Sony Ericsson should explore the possibility of

establishing company-owned outlets, whose

product line consists exclusively of Sony Ericsson

mobile phones.

Repair provisions, however, will not be limited to

units within their prescriptive warranty, provided

the customer is willing to shoulder incidental costs.


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Factors Affecting Channel Decision:

It is recommended that Future tech has a good

reputation given by years in trade as well as sales

force capabilities in order to maximize market reach

while keeping the number of distributors.

Those distributors will undergo training for repair of

Sony Ericsson products.

Dealers should likewise be assessed in terms of

store location, reputation.

Sony Ericsson outlet stores target the brand loyal

segment.


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4- Price Strategy

Our pricing strategy is the price penetration strategy.

Which means we are aiming to provide an affordable mobile

lower in price relatively to competitors but without affectingthe quality & brand image.


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Market Plansteps







7- Implementation

8- Budget

9- Control

2- Place:Place will be used as a

sign of differentiation &excellence.

So Sony Ericsson mobile

phone will be placed in

Mega Malls & mobile

stores with fashionabledesign to attract youth

attention.

Dealers store

development &

fashionable physical

displays.

Licensing some new

retailers

3- Price:

Discounts will be tied

up with corporations

to allow the

employees orprofessionals get the

mobile at a lower

price than the market.

To generate sales

volume & create

brand awareness.

Payment Facilities for

Teenage

1- Product:

Two product categories:

1- Fun Mobiles:

Attractive colors

Multimedia & Screen

resolution. Good camera.

Entertainment package.2- Professional Mobiles:

Supporting Microsoft windows

with business applications &

MS office.

Building professional

customer service team.

R&D investments.


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a) Personal Selling:

Special regular

training programs on

how to bepresentable,

pleasing, and well-

mannered and how

to handle the

customers efficiently.

b) Advertising:

Strategic tie-ups with TV, FM.

For example, audience tuning to

popular TV programs answering

questions correctly can get SonyEricsson mobile phones as

prizes.

In turn, KTV will indirectly

promote Sony Ericsson brand

awareness by mentioning the

Sony Ericsson as prize-givers.

7- Implementation

4- Promotionc) Public Relations:

Participating in trade shows

and fairs. This will help in

spreading informationabout the various products

to be marketed.

Ex1: Flash Mob in malls D.J

for playing music.

Ex2: Cartoon Shows for kids.

In between some ads for

products.

Ex3: Sponsoring Football &

art museum events.

Successful trade fairs will

provide a perfect

opportunity to get in touch

with the consumers and get

to understand their needs

regarding the products.


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d) Sales Promotion :

Strategic tie-ups with music stores:

customers purchasing CDs, VCDs, DVDs from music stores will get their

points added in their.

Sony Ericsson Privilege Card Club:

This club is not only exclusively for Sony Ericsson mobile phone users but

also for users of other Sony Ericsson products.

Based on the amount of purchase, there will be 4 tiers of membership:

1) Regular.

2) Silver.

3) Gold.4) Platinum.

In this system, customers may earn loyalty points commensurate to the

amount of their purchase.

Upon accumulating a certain number of points, their membership will be

upgraded to Silver or Gold status, allowing them increasing privileges.

4- Promotion


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d) Sales Promotion :

a) Sales Promotion :

Sony Ericsson Privilege Cards membership

benefits:

1- Redemption of loyalty points will be in

the form of discounts among an extensive

range of Sony Ericsson Products.2- Offers for extended warranties and

product services depending on level of

membership.

3- Replacements can be purchased at a

discount, using loyalty points as credit.

4- Special promotions and exclusivediscounts will be exclusive to members of

Sony Ericsson Privilege Cards.

4- Promotion

e) Direct Marketing:

Online advertisings in popular sites

usually visited by youth. like for

example songs & tunes sites to place

an ad for Sony Ericson in return for

promoting the site by Sony Ericson.


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Market Plan







7- Implementation

8- Budget

9- Control

Budget Basic Elements:

1- Research & Development for innovative mobile

sets & software.

2- Corporate image package (i.e., logo, stationery pieces,

Expenses on developing the poor retailers).

3- Outsourcing advertising professionals to cooperate withSony for designing the advertising campaigns, Sony club

membership cards.

4- Salaries & incentives for the sales persons

5- Professional Call Center to handle any complaints orqueries. and also to send direct messages for customers

about offers.

6- Online Marketing expenses such as developing & hosting

Sony website. And online alliances.


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Budgeting Approach:

Activity base costing or The Dollar Approach:

More Accurate & safer.

Defining the dollar figure is challenging the first time round

but becomes much easier once you have records of several

years marketing expenditures to work from.

8- Budget

MarketingExpense

Budget Jan Feb March Q1 Q2 Q3 Q4

2012

Advertising $30,000 $30,000 $40,000 $100,000

Online

Marketing $10,000 $15,000 $20,000 $45,000

Promotions $0 $0 $10,000 $10,000Public

Relations $0 $10,000 $15,000 $25,000

Training $20,000 $20,000 $20,000 $60,000

Corporate

image

expenses $50,000 $0 $0 $50,000

Total $110,000 $75,000 $105,000 $290,000 $580,000


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Market Plan






6- Marketing Strategies7- Implementation

8- Budget

9- Control

1- Annual Plan Control

Include:

a) Sales Analysis (comparing

the final results with the

forecasted).

b) Market share analysis

based on relative &

served market share.

c) Marketing expense to

sales analysis .

Four essential Types of Control:

2- Strategic Control

Include:a) Marketing Audit.

b) Review of

excellence

3- Profitability

Control

4- EfficiencyControl


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Finally : Personal:

Develop Certain standards to evaluate the quality of serving the

customer across all outlets.

Then make a monthly evaluation report on each employee.

Based on the total score incentives will be given on a quarterly

basis (every 3 months).

Sales commission for achieving the sales target.

Any one achieved beyond the sales target consequently will get a

job raise to motivate employees.

9- Control


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References

Marketing Management, 13th edition, Philip

Kotler.

http://www.jpec.org/handouts/jpec32.pdf

http://gettingattention.org/articles/195/plann

ing-budgets/nonprofit-marketing-budget.html http://www.aafp.org/fpm/2001/1100/p39.ht

ml
http://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdfhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://www.aafp.org/fpm/2001/1100/p39.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://gettingattention.org/articles/195/planning-budgets/nonprofit-marketing-budget.htmlhttp://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdfhttp://www.jpec.org/handouts/jpec32.pdf

sony ericsson - nepal - market plan

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