Office Machines of Iran Co.

Commercial Department Network Monitors Marketing Plan Provided by: Mahtab Shahbazi

Tehran. June 2010

Introduction: With the decision to launch LG Network monitors into the Iranian market by Office Machines Company of Iran, the following is devised as introductory Marketing Plan to penetrate the market and shall be executed upon management approval. The Product is new to Iranian market and no similar product by other brands has entered the market before. Therefore, any such plan must consider and invest on Customer Education and Market Development at the very first stages. The Plan tries to explain the market and propose clear step by step action road map.

1- Product Definition: LG Network Monitor is a new product in the Iranian market that can replace ordinary PC and Terminal settings widely used in schools, labs, educational centers, government offices, factories and companies, etc. The product potentially reduces primary system expenses as well as remarkable reduction in setup and maintenance expenditures. However, the product may have a weak point, which has difficulty in backup and information security during critical events and system crashes. 2- Market Definition The Products market is basically institutional and does not extend to retail outlets although exceptional sales may be requested by retail units. For the same reason, our sales force through seminars shall educate the target customers, advertising brochures, person to person briefing and alike. However, attacking the market, three different layers shall be considered at three different time stages. These three layers are: a. Universities, high schools, educational and vocational centers. b. Factories, plants, business ventures and companies. c. Government agencies, armed and disciplinary forces, government aligned offices, centers and organizations. Page 1 of 4

Presently there is no similar product in the market and the nearest competitor or substitute product is Thin Client. Due to this fact, evidences leading to assess market volume and value are not available and thus the marketing plan should generate such information in the course of progress. Eventually, it is important to consider that Iranian market is price sensitive and pricing policies play an important role in market penetration. 3- Potentials and restrictions of the Company: Office Machines Company of Iran enjoys 45 years market reputation, a decade and half production experience, efficient and fast after sales service, reliable call center, and extensive retail outlets. Moreover, the Company is providing the market with renowned brands and specifically LG monitors that adds to reliability from both sides of the consumer and brand owner. Technical and service potentialities help the Product in launching period; however, market ignorance for the new product is a severe restriction. This unawareness may lead to setting up unrealistic sales targets ending in desperation and sales disappointment. To cover this restriction, the present plan uses some measures that are brought in the other parts. 4- Market Targets : a. Target Market start up layer: This plan proposes to attack the market only in the primary layer in the launch period of six months. The results of introducing the product to the universities, high schools, educational and vocational centers shall light up the path for penetration to the two other layers. b. Key Activity Chart Activity\Month 1st 2nd 3rd 4th 5th 6th Prospect client data gathering Advertising planning and performance Establishment of sales contacts and promotion Follow up sales projects (person to person) Market potential projection c. Volume sales target tables Since the market potential and acceptance is not known yet, any volume target setting will not be more than speculation. The company Sales Department proposes 1,500 units per month on a flat sales rate from the beginning of sales project. Nevertheless, this plan proposes to start sales project more cautiously and test market response for a better programming. It must be noted that starting from zero to 1,500 units in the first month asks for very high acceleration and thus heavy advertising and promotional costs that perhaps evade profits of the project. To assess target figures, the plan has considered sales figures for nearest substitute that is Thin Client. The data from their sales were acquired through private channels and used as indicative only. Further attention shall be paid to the summer season and schools closure that makes decisionmakings longer and slower at the target market segment. Overall, the plan had to be Page 2 of 4

conservative in justifying first and tentative targets setting. The plans volume proposal is shown below: Unit Sales\ Month 1st 2nd 3rd 4th 5th 6th 200 400 600 800 1000 5- Marketing Tools Requirements: In order to achieve planned targets, certain facilities are required. These facilities are brought under following subjects: a. Advertising facilities The plan requires starting advertising in two renowned specialized monthly magazines in colored full page at least three times plus colored quarter inner page of one popular weekly specialized paper. The designs and budget has yet to be discussed and planned together with its timetable. b. Promotional facilities Iranian clients are mostly attracted by words of mouth and others recommendation versus personal judgment and decision processing. With due consideration to this fact, promotional activities such as the followings are required: I. Holding presentations for regional schools II. Conferencing for educational authorities in Tehran districts 1, 2, and 3. III. Printing brochures and posters for distribution to the school managers. IV. Gifts and presents for related people c. Sales tools e.g. Price policies, Sales Terms, etc. As already commented, Iranian market is highly price sensitive and any sales force shall be able to exercise some measures of maneuverability. Therefore, the sales force must be equipped with flexible payment terms and some percentage discounts. After initial launch period and after penetrating the market such tools may be discarded. d. Sales Force Since the product requires direct person-to-person marketing, the number of sales force is directly connected to the volume sales target. Any sales agent is not able to meet and brief more than two prospects per day. By this token, setting sales target of 800 units per month means 160 clients or 80 man/day work. Considering 5 days week and one day for follow up jobs at the office, around 5 salesmen are required to maintain such volume steady. Drastic increase in the targets will certainly increase the demand for sales force. Decision upon staffing shall be made on the end of the second month of the plan. e. Office requirements

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f.

After setting up the sales targets, the sales force and its management require adequate office space, communication facilities, clerical facilities, office room and furniture, and administration services. Decision upon such requirements shall be made on the end of the third month of the plan. Sales bonus and benefits By the end of the first six months of the plan, the company as well as the project management will be in position to review sales activities, set new realistic targets and ignite internal competition between the sales forces by introduction of bonus scheme. The scheme specifications will be devised in time.

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