APRIL

2012

FOUNDATION OF MARKETIG

CELL PHONE FOR SENIOR CITIZEN

JUST 5 By MANGO TELECOMMUNICATION PRIVATE LIMITED.

Contents Executive Summary...3 1. Mission Statement..3 2. Theoretical Framework......3 3. Company....4 3.1 Current Status.....4 3.2 Business Outline....4 3.3 Companys Origin (Business Background)4 4.Business Objective..4 5 Key Feature..5 6. Competition-SWOT Analysis6 6.1 SOWT Analysis for Just 5 in urban and rural area of India.6 7 Barriers to Entry Porters 5 Forces Analysis7 7.1 The threat of new entrants..8 7.2 The threat of substitute products or services..8 7.3 The bargaining power of customers (buyers).8 7.4 The bargaining power of Supplier..8 7.5 The degree of Rivalry......8-9 8.Organisational Structure...10 8.1 Management Team Personnel..10 8.2 Profiles of Directors of JUST 5..11 9. Target Market.12 10. Marketing Strategy- Product .12

11. Pricing Strategy.12 12 Placement Strategy..13 13. Promotion and Advertising14 14. STP (segmenting targeting placement).14 14.1 Segmenting....14 14.2 Targeting.15 14.3 Positioning..16 15. differentiated strategy ...17 16. Bibliography...18

Executive Summary Our research focus on the developing of a new segment in the cell phone industry as we aim to produce phones that is technology easy for different ages of people. The need of the research was to produce a cell phone that is customized with the features that can be easily utilized for aged people to use. Before penetrating into the market few market analysis were conducted by the research team .For my research I have used the following analytical tools : Porters Five Forces Marketing mix - 4Ps of marketing. SWOT Analysis STP (segmenting, targeting and positioning)

the abovce tools will be helping me to correctly and effectly focous on my research and the success of my product .

1.

Mission Statement

Mango telecommunication invents a new generation cell phone product which is especially designed for the use of aged people , easy to use product with extraordinary features such as SOS and IEAS at an very economical prices . This is a niche product . Our main mission is to help aged people who cannot cope up with the new technology cell phones so we have decided to vitalize the technology and make it easy for them to use . Mango telecommunication is the future leading India based company in manufacturing cell phones . 2. Theoretical Framework:
The decision to launch a new cell phone for senior citizens in a niche market Can be calculated and analyzed various business concepts and tools. The concepts that I will include are: Demographics S.T.P (segmenting, targeting, positing) SWOT analysis 4 Ps of Marketing ( Product Price Promotion Place )

This will help us judge if the decision to launch the product is beneficial or unfavorable.

3. Company 4.1 Current Status JUST 5 will begin with slowly developing, as well as increasing familiarity with the brand name and excellent services to the area of focus, The future aim of Just 5 would be to be useful to the aged people and keep on making the technology easy for them. 4.2 Business Outline Mango Telecommunications is an Indian based company in New Delhi, with its main motto to make technology simpler for the senior gent=ration of the country yet keeping it very economical. Mango technology is aiming to release Just 5, a cell phone which is very easy to use with added special features which primarily focus on the senior citizen. JUST 5 has done hardcore research on its product and services so that it reducing the chance of clients hesitations about the service. 4.3 Companys Origin (Business Background) In this modern techno savy world, where technology is booming to new dimension, it is incorporating itself into everyones day-to-day lifestyle, but this isnt always an advantage to the society. For elderly people, using a normal mobile phone is quite a task in itself. Mango Telecommunication PVT LTD has been researching on a new segment of cell phone, which will target the senior citizens. This mobile phone is economical and equipped with easy use technology for aged people. The cell phone also has a special feature of SOS service and IEAS (instant emergency alarming system). The cellphone our company has come up with has been named Just 5 which stands for the five unique features which are very helpful for the elderly people as using technology could be a hard task for them. Some of the features that are present in the phone are very helpful to the users especially the senior citizens like the SOS service and the IEAS feature. We as a company wanted to do something for the old people of our community and make life easier for them by introducing a phone which is easy to use and at the same time not that big on the pocket, we have successfully come up with the Just 5 witch fits every need of an elderly person. It took a lot of hard work and dedication to research to finally be able to launch the cell phone into the market since its a new market so we plan to take it slow and research more and make it as close to perfection as we can. As a company we had to use various strategies to make this cell phone. The price of the cellphone is ranging from 1600 to 1800 which is very competitive looking at the features it has but it also overlap other cellphones in this price rage as it has feature that are focused for the targeted audience. We want to target the elderly citizens because no other company has actually gone beyond their boundary to do something for old people. We as a company believe that we are doing our part for the people by making this cell phone and we have put our heart and soul into the whole process of making this cell phone. It is going to be a revolutionary addition to the world of technology and one which is going to be playing an important role in the senior citizens lifestyle as it makes their commuting task easier. 4. Business Objectives 1. 2. 3. 4. 5. 6. 7. Mango communication is expecting to become the most successful cell phone company in India which will bring a new approach for aged people to use cell phones . Becoming successful in the invented product . Bring the excitement back for the old people to use cell phones. Expect the brand name to be established soon . To gain the market share as soon as possible . Be the leading Company in the India. Expand the business globally

5. Key Features Of Just 5 Talking keypad with large buttons: This feature helps the elderly to access the phone easily. As we know, aged people tend to suffer from eye diseases like cataracts, blurring in eyes, glaucoma. Considering this, they find it difficult to access normal phones, as they are very fancy and difficult to operate. The talking keypad makes it feasible for them to dial numbers and send texts, and the large buttons help their fingers to quickclick. Emergency SOS Button: The Emergency SOS Button, is one of the main key feature which makes our product different. Its a small button behind the phone which is to be used for emergency purpose. Simultaneously, a SMS is automatically sent to 3 predefined numbers. Following that, Phone starts calling the 3 numbers one after the other till a call is answered. If the call remains unanswered, the entire loop gets repeated three times. This feature empowers our seniors. IEAS (Instant Emergency Alarming System): Activation of the IEAS (Instant Emergency Alarming System) button results in a siren which helps alert people nearby. This button is right next to the SOS button. A loud siren is rung as soon as this button is pressed. The seniors can access this button in case of any emergency, to alert people nearby. And they shall be helped then and there. Special LED Indicator: The Special LED Indicator makes it easy to indicate the actions of the phone to the elderly. If theres an incoming call, Blue LED light is flashed simultaneously. If theres a missed call, Yellow LED light is flashed simultaneously. And same way, if the battery is low, Red LED light is flashed. So it makes easy for our seniors to understand if they have a missed call, an incoming call or when they have to put their handset on charge. KLIQ SWITCH: This feature allows the seniors to lock and unlock the key pad easily, with just one click. And with two clicks The KLIQ SWITCH feature allows the elderly to access an amazing Bright LED Torch. This torch ranges from 6-7feet. So now they wont find it hard to get that glass of water at night.

6. Competition SWOT Analysis SWOT Analysis is a simple tool that helps to measure the strength ,weakens, opportunities and the threats, internal and external factors that can affect a business decision. The name SWOT stands for:

7.1 S.W.O.T analysis for Just 5

Strengths: Have a base developed in the capital city of India which will give cost cutting advantage in Distribution and promotion of the product. Specially designed cellphone for aged people As we are the first one to entering a nice market their will be a No competition or substitute . Due to non-competitive, monopoly can be archived for a period of time.

Weakness: Promotion in the rural parts of India could be a problem as there is no major sourcing of advertising and marketing the product. People might find the product too flashy and bold. As we are new entrant in the cell phone industry, people might not have great faiths in our cell phone.

Opportunity: There is a huge potential and opportunity for Just 5 as they can introduce cellphones for blind & deaf people. As it is still a raw market, Just 5 can easily introduce other variants of the phone if something doesnt fall into place.

Threats: There are great threats as Just 5 is just a new entrant, other big companies have an advantage of economic of scale which will help them cut down the cost of the cell phone without reducing on the features. Other big corporate companies might use Just 5 special feature and incorporate in their cellphone Other companies might use Just 5 the promotional technique to expand themselves. As they are prior in this industry, they have a huge customer base which is difficult to attract.

7. 6. Porters 5 Forces Analysis

8.1 The threat of new entrants JUST 5 sooner or later will have threat of new entrants as we are introducing a new segment and a product in the market. The only thing that can be predicted right now Is that new entrants will enjoy the already developed market and use Just 5 as their base to make enormous profit. The new entrant will also lean from the mistakes of Just 5 and would fix these kind of issues before launching their product in the market. 8.2 The threat of substitute products or services There is no substitute available in Indian market, which can compete Just 5. As per we predict, Just 5 can enjoy its monopoly for 6moths 2years depending upon how fast other companies coupe up with our technology and be ready to compete. 8.3The bargaining power of customers (buyers) Even though JUST 5 is offering a unique service, the negotiating authority of customers will still tend to increase. To reduce the bargaining power of customer, Just 5 has kept the price of the cell phone so economical that byers wont have any scope of bargaining on the product. The product is total value for money and when it will be launched in the market, it will be necessity for every senior to buy because of its amazing features. (Porter's 5 Forces) 8.4 The bargaining power of suppliers The supplier power for just 5 would not be in much of its favour as Just 5 is a new product and has just entered the market; it cannot enjoy the benefits of economies of scale. Just 5 might also have to bare the whole cost of few cell phones in the initial stage to market the product using different promotional strategies. 8.5 The Degree of Rivalry The degree of rivalry, is one of the most common of the five forces as well as the most obvious in the industry, but for JUST 5 the chances are less as there is not much of a competition in the initial stage but soon there will become a competitive market and JUST 5 might have to face rivalry from the top most industry in this segment.The rivalry between other companies as well as JUST 5 will determine how attractive JUST 5 is to the community and the customers looking for tuition. * This force is located at the centre of the diagram;

(Tutor2U)

* Is most likely to be high in those industries where there is a threat of substitute products; and existing power of suppliers and buyers in the market. (which will not occur in tut companies like JUST 5 for its initial years) (Porter's 5 Forces)

8. Organizational Structure 9.1 Management Team Personnel.

Managing Director Sanhit Jain

Finance Director Aditya Jain

Service&Quality Director Milan Bir

HR Director Ujwal Garg

Marketing Director Sonali Katyal

Service&Quality Dhruv Dutt

Mango Telecommunications PVT LTD will begin with slowly establishing itself and provide excellent services to the Business world. We are a company based in India for now but we plan to reach out to the world, we are a new organization but we have are goals set towards being well known in the field and doing exceptionally well by maintaining a hardworking environment in our company. The main goal for the company right now is the successful launch of its new cell phone, which we expect to do wonderfully good in the market. We will make sure that we stay on track and achieve our goals. JUST 5 have chosen the organizational structure comprising of both a flat system with decentralization. Decentralized system possesses a meaning in which managers and directors have more time to focus on the essence of the organization, rather than worry about the little detail. Decision making becomes and empowerment, meaning that the company directors will be able to motivate our tutors giving them the right push to gain their best performance in tuition as well as encouraging them to be loyal to the company. The reason for the decentralized structure is due to the fact that it is a cell phone company, which means that the company will not focus on the little detail of every single cellphone, distributing this responsibility will help to increase knowledge and their experience. The flat system will give the decision making an ease, allowing all the members of the directors to participate and be equal, especially that everyone on the directing team owns a fifth of JUST 5. Having a flat structure also means that all the relevant information will be relevant to any staff member, allowing them to plan for the future as well as being aware of what is going on in the company both financially and overall progressively.

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9.2 Profiles of Directors of JUST 5. Managing Director Sanhit Jain Sanhit is a young entrepreneur with a diverse culture who has the flexibility to adapt quickly to new situations making him the perfect aspirant for the Managing Director position. What mostly makes Sanhit suitable for this job position is his determination and his results driven attitude, he is spot on perfect on managing the company, setting realistic deadlines to tasks and taking full responsibility for motivation and keeping up the motivation of the employees. Finance Director Aditya Jain Aditya is brilliant at Mathematics and he is very sharpened in terms of Accounting and therefore is perfect for the financial director. Aditya has had past experiences in parents business and therefore can be seen as reliable and trustworthy after completing several projects successfully. He is also quite accomplished and careful and therefore has an exceptional understanding of what is required of a finance manager and therefore will be able to work on own initiative or part of a team. Service and Quality Director Milan Bir Milan is a young passionate and a flexible hard working character. We have chosen him as we believe that he is reliable and motivated to develop the quality and service of our company, having a strong and clear sense of judgment just makes him the more suitable applicant for the Quality and Service director position. We believe that Milan will be more than an asset to the company. Marketing Director: Sonali Katyal Sonali is a young striving lady from the business world who has had both family and business involvements in the Marketing side of a business, therefore her being trustworthy for the know-how in marketing helps her to become exactly the person we would need for applicable marketing. Human Resources Director- Ujwal Garg Ujwal is a young hardworking and self-driven motivator. He is capable and deserving for the role of becoming the Human Resources Director for several reasons including his qualifications, He fits in well based on his experiences and accountability, it is anticipated that he will be an extremely responsible HR Director and will be successful. Service and Quality-Dhruv Dutt Dhruv Dutt is a hard working character and is widely experienced with the standard of the product as he has been working with his fathers cell phone manufacturing company. He has given his heart and soul to the company with his unique way of tackling the quality check of the product.

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9. Target Market JUST 5s target market is quite diverse, but specific. Targeting students from the youngest age up until university, there will be a tutor allocated to any student with a difficulty in any subject they require. However, narrowing the target market, the company will be for any students all around Uxbridge and Hillingdon, but not any further, that is from the geographic perspective. Demographically, it is targeted towards students with a secondary and a higher education that is if more specified. Considering the market from the psychographic perspective, it is customarily towards students who want to do comparatively well and who are willing to pursue a career in the future, typically students who have a problem in their certain part of studies as tuition with a higher education professor becomes too expensive and boring, the solution is always JUST 5- making education simple. Behaviourally it is generally for students who have difficulty in learning and are not able to complete something due to not having the right approach to learning, targeted at the students who find education too difficult to consider, not understanding certain concepts thoroughly and need in depth time in that certain area. The 4 ps mentioned above are as called The Marketing Mix. These are used by marketers on how to help the new product or service grow in the existing market in comparison to all the other competitors which may exist in the market already for similar products or services.

Now we will talk about on how we think the 4 ps are beneficial to our product and how we will use to for our new product to grow in the current existing market

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10. 12 Product

Product Product basically means the features that that actual service or good possesses, also how it may satisfy the consumers needs and wants. Any average product includes basic warranties, guarantees and consumer services. Just 5 has large key pads and large screen for easy reading, a torch and a sturdy body that can take falls. The phone will have an additional feature of a sensor which can be carried on the user. If one moves say 10 to 15 feet away from the phone, a beep will alert them that they've left the phone behind. A person can even leave the mobile in a suitcase and it will alert you if someone moves it without your knowledge. In case of any emergency where the owner of the phone needs any kind of medical help and he presses a red SOS button on the back of his mobile phone which activates a loud siren, alerting passers-by to his plight. We would also install a application The Jitterbug, by Samsung introduced new application specific for older citizens. Jitterbug Medication Reminders service helps the elderly to stay up-to-date and on schedule with their prescription schedule. This service is similar to the Auto-Med iPhone Application.

11. Pricing Strategy

Pricing pricing is the process by which the company decides the finally selling price of the good or service which will be charged of the final user or consumer for that product .it is not necessary for the price to be in monetary terms it may also and exchange in order to procure a good or a service; for e.g. energy time or attention. Price the pricing of the phone is from Rs 3500 4000 depending on weather the phone is a single or dual sim phone. The pricing of the product includes all the production costs such as cost of raw material, labour, battery, packaging etc. and it also includes overhead costs such as transportation or the retailer commission etc.
12. Marketing Strategy-Place

Placement - (or distribution): placement refers to the distribution channels used to circulate the product or service within the market. Its how the product or service may reach the buyer be it through retailing wholesaling or point-of-sale assignment. The place includes the distribution channels weather by retail store or online buying and the industry or geographic locations that is the division component that says weather it caters to senior citizens business citizens families children or young adults. It may also include the surrounding environment for the sale of the product, as it may be a contributing factor in the sales for that product or service. Place the product will be circulated all over the Indian Market as the target market itself is small so if we reduce the boundary of the distribution it may cause the company or our product to go into heavy losses .As mentioned above the place refers to two types of distribution. The product will be sold through retailers as well as Internet selling. It targets a niche market of middle ages men and women who may want to give this phone to their partners to due increase in nuclear families or the senior citizens them self so that they may be able to contact their children or doctors in case of any emergency.

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13. Promotion & Advertising

Promotion promotion basically means on how to familiarize the target market that the product or service exists in the market and its features also we may familiarize the brand or company of which the product is. Methods of promotion may include individual selling, advertising, publicity. The promotion for Just 5 will be carried out through advertisement like new paper ads or television commercials as the older generation is found to read the news paper and well as more engaged in watching television which is a general observation in majority of the households. We are also publicizing it through the internet as it is an easier platform to reach the middle aged people as majority of them work and have access to the internet and work through it . We have also though of a using a technique, which is not quite followed by the majority of the existing market the product will be circulated in hospital as it has an emergency medical feature to it, which can contact your doctor or give a call to ambulance in case of an emergency. 14. Segmenting Targeting Positioning Of Just 5
Segmenting relates to dividing the market into different segments or part which we want to sell our product to. It relates to fragmenting the entire mass market into segments of customers as different segments of have a different variety of needs, as marketers offer them a variety of choices marketing segmentation is also a very important part in the segmenting aspect of the market as it needs to attend to both the customer as well as the organizations marketing strategies. in the case of our product our segmented buyer are middle aged and elderly population of India .

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How can we segment and target markets? Make a group of our expected buyers into segments Divide the products into categories Create a product-marketed graph and estimate The market size Demark your target market Perform marketing function to capture the market 14..1 BASES OF SEGMENTATION Geography all over the Indian sub-continent Demographics elderly, middle class , aged 55-80 Psychographics fairly decent lifestyle which any middle class family would carry Benefits sought SOS button, IEAS feature (alarm feature ) , big keypad , large screen . Usage pattern rate of usage 80 -90%

Criteria for selecting target segments Market size sustainable (niche market but since we cover the entire country it becomes a large market) Expected growth potential future Competitive position fairly none (only one such competitor exists iball whose phone had failed to be marketed) cost of reaching the segment accessibility (through promotion strategies) Compatible with the organizations Objectives & resources 14.2 POSITIONING our product

Product positioning: The image it creates that the product has in the mind of the potential buyer in comparison to our competitors PERCEPTUAL MAPS Point put the important features of the class of the product Find out whether existing brands in the same market have these features or not Features which are prominent in an ideal brand

Knowledge about a brand has two aspects to it brand image and brand awareness help to position the product in the consumers. Connection between brand and consumer leads to long term partnership and loyalty. The most important factor in the positioning of a brand is that we need to find a suitable place for the brand to be marketed in as well as to be marketed in the consumers. A consumer should easily identify that for a given need or want this is the brand. If brand fails to do this, it simply becomes just another product or commodity on supermarket or mall shelf. The target market will always have a personal consumption profile as in our case the personal consumption profile refers to marital status (as the elderly strata are usually married), consumption of product will always be at an high (as in todays world its a necessity more than a want ),

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14.3 Demographics Income level: could be anything from 10,000 to 50,000(a month) Age: 55 80 Sex: no preferred sex Race: none Family: no fixed family size. What are Targeting Strategies? Targeting strategies may also be defined as advertising to attract the target market and increase sales as well as profits by using consumer friendly techniques. Types of targeting strategies Consumer marketing strategy the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Behavioral targeting behavioural targeting refers to observing the consumer pattern of purchasing . Contextual targetingSegmenting market Approaches to subdivision of a market or population into segments with defined similar characteristics. Five major segmentation strategies are (1) behavior segmentation, (2) benefit segmentation, (3) demographic segmentation, (4) geographic segmentation, and (5) psychographic segmentation

15. Differentiated strategy . Differentiation strategy means that the valued good is provided to customers with new unique features and characteristics of a company at economical price. Differentiated products satisfy customers' unique needs or preferences for differentiated products. Companies that follow a differentiation strategy concentrate or focus on product innovation and developing product features that customers value rather than on maintaining the lowest competitive price .

Drivers of Differentiation . Unique product features . Unique product performance . Exceptional services . New technologies . Quality of inputs . Exceptional skill or experience . Detailed information .

Products can be differentiated through various number of ways so that they stand apart from standardised products:

additional features an image of prestige or status unusual or unique features more responsive customer service rapid product innovation advanced technological fear

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16. Bibliography Tutor2U. Porters Five Forces. 2011. 18 November 2011 <http://tutor2u.net/business/strategy/porter_five_forces.htm>. Porter. Porter's 5 Forces. 1998. November 2011 <(http://www.coursework4you.co.uk/essays-and-dissertations/porter-5-forces.php) >. Porter's 5 Forces. 2011. 2011 <http://www.coursework4you.co.uk/essays-anddissertations/porter-5-forces.php>. Porter, Michael E. Differentiating Features That Raise the Performance a User Gets. 1985. New York: Free Press. <http://www.openlearningworld.com/books/Business%20Strategies/Business%20Strategy/ Differentiation%20Strategy.html>.

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