Capstone marketing plan (final) PDF

Preview

Summary

CAPSTONE PROJECT MARKETING PLAN...

Description

Part 5 : Marketing Plan

Our Product Smart home is a home automation that provides homeowners security, comfort, convenience and energy efficiency by allowing them to control smart devices, often by a smart home app on their smartphone or other networked device. Vision The smart home of the future promise to deliver our best innovative services to homeowners using Huawei best technology. Objective of smart home project 

To design and implement a high accessibility wireless smart home system



To increase safety of house



To improve the comfort of living environment

Goals 1. We will increase our sales by 15% in every season to ensure the growth of our profitability. 2. We will ramp up productivity in our business by eliminating distractions during the work day and improving the way we use business tools. 3. We will increase our market share to make our business more competitive and increase the profitability.

How does our product benefit the customer? Smart Home aim to release the burden of people to manage all sort of household making everyone to have a worry less household experience. It helps the user to control everything in the house with an app so that the user doesn’t have to move but at the same time they can control all appliances they want. The difference of our product Our product is using latest Huawei technology includes AI chip and 5G network that help the system to process faster and better. The 5G network is 1,000 times faster than 4G. Therefore, it makes our system more compatible and outstand our competitor easily. There are few home systems in the market and our business is consider as an expansion of Huawei.

Have you heard about Smart home ?

18.00%

82.00%

YES

NO

Our product will be profitable because we have conducted a survey and we discovered that people have a very high acceptance about our product. Besides, Huawei is now the leading technology company and it have many users that are confident with their technology.

Furthermore, we can’t doubt that technology nowadays had infiltrate into people’s life and is inseparable with us. Therefore, this product can become mainstream of future living style. Our product is to bring simple but futuristic lifestyle to everyone so that everyone will feel the enjoyment of life. Our geographic marketing area is focusing on cities and urban area such as midhigh-level residential area.

2. Conduct a Situation Analysis

Strengths 1. Expertise. As we know that Huawei is now the leading technology company so we have many experts in this relevant field. Our experience and expertise are better than anybody we know in this particular niche area. 2. Contacts. Years of industry experience means a lot of word-ofmouth marketing, contacts and networking.

Opportunities 1. Internet growth. Companies are being dragged into worldwide marketing through internet. Growth rates are very high, and opportunities are obvious. 2. International market growth. Our product has potential to be expanded to international market because it brings revolution to modern lifestyle.

Weaknesses 1. Staff. Without the overhead of staff, we can’t leverage on people to develop documents and presentations as well as research in detail. 2. Smart Home is reactive rather than assertive in its marketing efforts because of its heavy reliance on positive word-of-mouth communication for obtaining new business.

Threats 1. The larger, branded competition is recognizing our niche. They are beginning to compete in our area. 2. New competitors are developing in new markets. Particularly as the European market grows, competitors developing in that area become more significant.

3. Define Your Customers Our main competitors in Penang are Senzo Smart Home System and PentaMaster Smart Home. Senzo Smart Home System target on middle social class people and PentaMaster Smart Home target on multinational companies in Malaysia. Perfect customer and Client base In the other hand, our product’s perfect customers are Generation X and Generation Y from middle-high social class because they are good at using technological products and have considerable income. However, we choose to target on variant and different customers due to it is just a starting business. Our current customers should between 25 to 40 years old and their income should achieve the average value in Malaysia. The first running of our product will take place in Penang so our first batch of clients will be mostly be the middle social class from Penang. Habits of customer One of the habits that our customers and potential customers share is be in touch with smart phone in daily life. With the usage of smart phone, customers are more familiar with the modern technology and Iot. Therefore, they can quickly understand the principle of operation of our smart home system. Furthermore, our customers are tech-savvy who like to visit technology exhibition, read and watch technology related news and videos as well as purchase electronic product frequently as our potential customers do so. Prospective customers that not reaching The prospective customers who we currently not reaching are Gen-X who are traditionalists, conservative and price-conscious. Hence, we plan to organise campaign to change their prejudice and also release a simplified version of smart home system with lower price in order to meet their needs. Qualities that customers value the most The qualities that our customers value the most about our product are the after sales service, convenience, security and safety, and lastly the affordability to the price. We are providing the best after sales service to our customer. For example, we provide free charge of electronic elements replacement and adjustment in the first 18 months.

Qualities that need to improve We are still collecting data on how to improve the convenience, security and affordability of our product. We will update our system regularly to improve the practicality and security and provide the best experience to our customers. Then, we will adjust the price of our product after we develop a cheaper model and also the adjustment must base on the feedback from our first batch customers.

4. Strategize Your Market Entry Our direct competitor is PentaMaster Smart Home. One of their promote plan was university or college visitation. Students from various university such as Unimap, UTAR and University of Santo Tomas had visited their company to learn about their technologies. PentaMaster also offers their smart home system to condo projects in Malaysia and Asia. They were exploring several high-end condominium projects in Malaysia and Asia to equip them with the group’s new intelligent home system. Therefore, their mainly targeted customer group are Luxury-seekers and quality-conscious which is based on behavioural segmentation. Based on demographic and behavioural segmentation, we are targeting at GenX and Y who has a family, high buying power and high purchase frequency. These group of consumers usually have more family members and high socio-economic status so they are able to purchase this high-end product. We studies about buyer readiness through our advertising and promotional programs. We get to contact with our potential customers and make our name conspicuous to attract serious buyers. Once prospective clients know our name, they begin the process of acquiring knowledge about what we can offer. Other than that, according to geographic segmentation, the consumers from cities in Malaysia such as Penang, Kuala Lumpur and Johor are our priority customers because their purchase level are higher than other states. But, our next marketing plan will expand and focus on the other states in order to provide our service for those consumers.

5. Forecast Sales or Demand Measurement

Would you be willing to live in a Smart home ? NO; 10.00%

According to the data we surveyed, there are 90% of the users willing to live in a Smart Home System household because they feel that living in a technology household is simple and convenient. However, 10% of users feel that living in a Smart Home System is unnecessary

YES; 90.00%

and unaffordable so they disagree to our idea. The pie chart shows that China occupied the

YES

NO

largest portion in the market share. However,

Malaysia is gradually increasing due to the rapid development of our country. So, we notice that Smart home in Malaysia has the potential

to

become

the

mainstream.

6. Marketing budget Showroom SmartHome has rented a landed house at Pulau Tikus near the Huawei main service centre as a showroom. This showroom is fully equipped with the latest product from SmartHome and its purpose is to demonstrate the usage for consumers who have brought the product and consumers who interested with the product. The rental for the two-story semi-d is RM3000.00 per month.

Salary

Other than the showroom, the salary will be RM38,000. CEO will be paid RM10,000 per month and the Executive Manager will be paid RM8,000. All managers will be paid the same for RM5000 per month.

Advertisement For advertisement, we maximum the budget to RM44,000. Advertisement on social media (Facebook, Insta Ads), we are investing RM12,000 to create a video. Another RM12,000 will be the cost for all campaigns and road shows which includes all the equipment’s and delivery. The other RM20,000 is for the electronic billboard per year. We also sponsor Youtubers with our product which will help us to advertise our product. We are expecting the lowest cost for the ‘investment’ on YouTubers by inviting them to make a review on our showroom which benefits both of us.

Cost of programme The SmartHome programme is the main core of the company, so the quality and the safety of the programme is our first concern, so SmartHome is paying up to RM240K for the technology. However, the engineering team is from Huawei, so we could minimise the cost.

7. Integrate Your Marketing Communication

Product In Marketing Mix, 4P’s are product, price, promotion and place. Our product is a compact and developed system. It comes with latest technologies such as world first 5G network and humanize AI chip that makes the system run intelligently. Next, our basic price is reasonable and excellent value for money which is RM 4999 for condominiums, RM 6999 for single and 2 storey house, RM 8999 for 3 storey house. The customers won’t feel the burden because the

price is already included in the house price. In next few years, we will explore and adjust the price based on our research on market demands.

Promotion Of our Smart Home System, the main advertising method is through internet and social media. First, we will create company website and pages in Facebook, Instagram. Then, we will post the details of our product to gain attention from the public and they can also easily access to us online. In Facebook and Instagram page, we post videos about Smart Home such as smart home review, and apply the advertising system to boost the views of the video. For our commercial video, we plan to spend RM10, 000 annually for the animation, video editing for all social media; on Facebook, we aim to reach around 8,000 to 40,000 views. For Instagram Ad campaign we are expecting more than 100,000 visitor which will cost around RM 2,000 per year in order to increase advertising efficiency. Meanwhile, we also plan to do our advertisement in traditional way. For instance, we will place billboard ads along the roadsides and LED ads in public transportation stations. Electronic billboard for 11ft X 41ft, the cost will be RM20, 000 per year. Our marketing group also map out event marketing which is attend Science and Technology Exhibitions as well as sponsor major event such as technology creation competition. We are budgeting the all road show to under RM 12,000 annually. Moreover, we plan to cooperate with influential YouTuber to promote our product through his/her channel. We will be sponsoring the YouTubers with our products and requesting them to assist us in our advertising. We will search for the YouTuber with the highest subscriber in our area to best promote our reputation. Example, YouTuber will make a review or tour on our showroom which will benefits both of us which they advertise our product and we help them to get more views.

Place

Our marketplace divided into offline and online. Our offline marketplace are retails in Penang, Kuala Lumpur and Johor where they focus on reaching the right target audience at the right time. The consumers will have deeper understanding and experience of our product when they visit the retails. In the other hand, the potential customers are able to gain knowledge about our product through our online platform such as official website and purchase it online. Online marketplace is instant and effective way to get information and make purchase. Our event management will be constantly joining large campaigns and also setting one for our own at Gurney Plaza and Gurney Paragon. RM12, 000 is the budget for our campaign including all the delivery of our equipment and place rental. Gurney Drive have only two shopping mall which have more than 5000 visitors during weekends and special events like Christmas, New Year and etc. The higher the population, the higher then chances of purchase.

8. Identify Sales Channels

Developer

Smart home project D

Control your home

Consumer

The distribution methods to use for our business are retails, wholesale and cyber-marketing. We will set up our stores in selected cities to sell our product to final consumer buyers and increase our sales. Our retail stores provide simulation of smart home system to the customers. The simulation will brings concept and impression of the product to them. In addition, we will cooperate with developers to insert our smart home system in their projects. This cooperation helps our business to reach higher sales and simultaneously increase our profit. Apart from that, we are also using cyber-marketing to promote and sell our product via computer networks. We have social media pages and official website which can effectively access

to

the

current

and

potential

customers.

Our

official

website

is

www.huaweismarthome.com. Customers can also search for ‘Huawei Smart Home’ on Facebook and Instagram to follow our pages.

9. Track Marketing Activities First of all, the tracking marketing activities for our traditional display advertising include compare the volume of sales before and after ad posting. Our marketing group will measure the existing sales volumes over a stipulated time period and compare to the sales volumes before we employ our traditional ad campaigns. Moreover, we will use different phone number in different channel in order to compare the results of each channel and find out the best traditional channel for our business. We will also request our customers to give feedback to our company after product consultation. For internet-marketing, Facebook and Instagram provide a tracking system onto the views and reactions of our videos and posts. This allows us to analyse the public reactions to our product. For example, after we apply the promote system, we can check how many viewers actually click in and watch our full video. Furthermore, we are using Google Analytics to track our online events and activities. For instance, Google Analytics can track viewing of a video, clicking on a button, viewing video footage of certain length, scrolling down the page and clicking on an image or an external link, sharing/printing a blog post, article, video or image. For our event marketing, we will collect the right information such as numbers of visitors of our stall in any exhibition. Then, we will also collect consumers’ data in order to follow up with them after the show. We have a well-trained customer service department to follow up with the potential customers in the exhibition and increase their interests to our company. 10. Evaluate Your Progress Measure our Business’s Success a. Check the Financial Statements One of the methods that we will use to measure our success is look at our business financial statements. We need to see how much money is going in and out of our business and then grow our business by analysing the statements’ data. The three main financial statements we use are the income statement, balance sheet, and cash flow statement. The income statement measures the profitability of our business. The balance sheet shows financial health while the cash flow statement shows how liquid cash is.

b. Measure Customer Satisfaction The other method is measure customer satisfaction. We keep on request feedback from our customers to make sure they are satisfied with our product and if we receive negative feedback, it helps us to improve our product’s quality and after sales service. c. Calculate and Analysis New Customers Besides, we also calculate the amount of new customers we get for a period of time. For example, we will count the amount of new customer we get from each business action and if there is no growth after a period of time, we will adjust or change our marketing strategy. d. Evaluate Employee Performance In addition, our company will evaluate employee performance to measure our success within the company. Employees are essential to the company because they are supporting the operation of the business. An annually performance review will be organised and every employee of our business will have to take part in it. This is to check whether the employees are happy and how effectively they complete the given tasks. We reached our goals as we successfully increase our sales and profits as we targeted. Based on our financial statement, we discovered significant growth in our sales. Besides, the marketing campaign is successful because we attracted huge amount of new customers after we carried out our promoting plan. Thus, we plan to continue our advertising programs in future and improve the quality of advertisements to attract more new audience. After we applied the Return on Investment (ROI) to evaluate our profitability of our business, we obtain a positive result. Through our customer survey, we discovered that most of our customers have a very good first impression to our product thus they wish to visit our retail shop to get further information of our concept. This showed that our marketing plan is effective and efficient. When they visit our retail shop, our well-trained staffs had successfully convert 63% of visitors to our customers. In our utilization of database, we can capture additional information and establish a more comprehensive customer relationship program. By receiving feedbacks from our valuable customers, we would definitely be able to make a change in order to prolong the sustainability of our business....