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Prepared for:

Introducing new computer device

Prepared by:

Bareqdarwishahmad

22/5/2010
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xur company (004) is start to lunch our first product (HI-TEC1000) will have
unique feature and itƞs the fourth generation of PC. We are targeting specific
segments in the customer and business market. Taking advantage of
opportunities indicated by high demand on the computer with more technology.

xur primary objective is to Take 12% of US market share in the first year and
unite sales of 10,000. The financial objectives are to achieve break-even in the
second year.









  

Êarket of computer is full of competitors but its large market. The demand of the
computer increase. We concern in upper income that we see as the primary
customer target is, which need the pc for to coordinate their job with other.

xur secondary customer target is the business man/women, graduate students,

engineers who need the multifunction device. This segment can be describe
demographically by age (24-45) and social status.

xur primary business target is mid-to large corporations that Need to enter data
in fast way, also they need Small and efficient device in the company to fit
space.

This segment consists of companies with more than $30 million annual sales.
Secondary business targets are Video game players, photographers, and other
specialized workers who need our product.

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xur product the (Hi-TEC1000) offers the following standard features:

1- Small light computer with laser Keyboard

2- The screen is 3D and high quality
3- Connect to net from anywhere
4- Used GPS system to identify location.
5- Loud speaker sound
6- Built-in cell phone functionality
7- Its software is like windows and support program like word Ʀ.etc
8- Use the Bluetooth device to connect any other device without using wires
9- Itƞs in two color white a black
10-Use very powerful and high process
11-2 years warranty
12-Had system that measure temperature and fixed the problem.
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mirst year sales revenues are projected to be $250 million based on sales of
100,000 (Hi-TEC1000) units at a wholesales of$2,500 each. During the second
year, we plan to introduce the (Hi-TEC2000) as a higher-end with the following
features:

1) Built in camera with high quality to take shot and record video
2) Auto-writer its new device make the computer record your talk in words.




Increasing demand of the cell phone and computer so many companies has
produced computer, laptops and cell phones. These companies innovate and had
so great market share in this field and example of these companies is:

6 Dell:
Dell Computer's strategy was built around a number of core elements:
build-to-order manufacturing, mass customization, partnerships with
suppliers, just-in-time components inventories, direct sales, market
segmentation, customer service, and extensive data and information
sharing with both supply partners and customers. However, The Company
start to produce product with low quality and her were our company
produce product with high quality.

6 Apple:
The company will open the iPhone to various companies, also it will
release an iPod Touch that will come with a camera, broadening its retail
footprint, launching the tablet PC. But Apple starts focuses on iPod and
other device. xur company focuses only on producing high quality and
next generation computers.

6 Intel :
The main strategy is manageability, raise productivity and lower overall
costs. Itƞs so large and strong company that how will be hard to defeat
them. But our product is has new feature and it has new process that the
company doesnƞt produce so what we going to do is to sale our product
and take a large market share away from Intel. Intel focuses on only
computer components and not computers as a whole.
6 Sony:
Start to focus on high-end electronics and on products that would have a
healthy growth rate in future. Although Sony has been facing straight
losses over the past couple of years owing to increased competition and
lower demand on account of the global economic, for this reason what will
happen is that the company wants to produce 3D TV screen and our
company will produce it before them.




 

Competitor Model Features Price

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market share now

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(Hi-TEC1000) product will be distributed through a network of select store

and non-store retailers in the top 20 markets. Among the most important
channel partners Bing contacted are:
1) Computer stores:
Pc zone, Best Buy, Wal-Êart, Target and Circuit City
2) Electronic stores :
Radio Shack, Carrefour.
3) xnline retailers:
amazon.com,Altrec.com, BestBuy.Com, PCUniverse.com, newegg.com
online auctions:
ubid.com, ebay.com
4) xur company store

xur distribution will not be restricted to the U.S and we will eventually go global
and distribute our product in many international stores, according to demand.

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We put achievable object for the first and the second years:

  

!




(Take 12% of US market share in the first year)

(Reduce marketing cost by 10% over the year)

!

"#$

(Increase the market share by 10% to reach an overall 22% market share in the
second year)

(Achieve break-even in the second year)

(Become the number one brand in US market in year 3)

Issue:

xur major issue is to establish strong brand name in strong position and will
connect the brand with quality and technology. Also measure awareness and
response

 

xur mission is to provide people with a brief escape of fun over the course of
their normal day. We do this by providing them the technical device ever. That
can be work and connect other in easy way also with its 3D screen can play
video game also see movies.
xur marketing challenge is to attract visibility quickly and we intend to
accomplish this by leveraging a multi-pronged approach that involves social
media, email marketing and search

Engine optimization strategies to gain market share. As we gain traction in the

marketplace, word of mouth will lift our computer sales significantly.

- 

To be a leader in the computer industry






(Hi-TEC1000) Êarketing strategy based on a positioning of product

differentiation. xur primary customer target is upper income,which need
the pc for to coordinate their job with other.
xur secondary customer target is the business man/women, graduate
students, engineers who need the multifunction device. This segment can
be describe demographically by age (24-45) and social status.
xur primary business target is mid-to large corporations that Need to
enter data in fast way, also they need Small and efficient device in the
company to fit space.
This segment consists of companies with more than $30 million annual
sales. Secondary business targets are Video game players, photographers,
and other specialized workers who need our product.

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1) Competitors are:

— Dell: ‰

— Apple: 

— Intel : O

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— Sony:
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We are positioning our product (Hi-TEC1000) as the most technology device with
high price product. The marketing strategy will focus on the 3D screen as the
main feature differentiating the (Hi-TEC1000).

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The (Hi-TEC1000) including all feature that has been describe before, will be sold
with 2 year warranty. We will introduce the (Hi-TEC2000) a more technical and
powerful model which had built in camera and use the new feature auto writer.
We will do an eye- catching packaging with red and black color; also we will put
the logo and the brand name of our company.


a 




High-Tec will be sold to wholesalers for $2,500, and retailers are going to sell it
to consumers for $3,500 per unit, we expect to lower our price in the second
year which will be sold to wholesaler for $2,200 and $3,000 from retailers to
consumers, in order to have a good response from consumers that are using
which will help us in increasing our market share.

This pricing plan will help us to:

1) Building our company and product name

2) Increase our profitand market share





We will make a powerful distribution channel by sold (HI-TEC1000) to the 20 top

market and E-Commerce retailers. The product will be distributed to the
electronic websites like amazon.com, Altrec.com. We will use 3PL like Aramex to
transport goods to retailers/customers because of the poor supply chain. We will
provide color photos and posters that contain information about our product;
these posters will be distribution to the customer by the retailers. In next year
we tend develop more channel points like sales agents: we expected the agentƞs
sales sell about 10% of our product.



   



We found that one of the best places to reach the target (customer)is the local
newspaper. Also Radio is potentially a good opportunity. xur SB target buyers
listen to local news, talk shows, and sports. Sponsoring a technology
discussion/call-in talk show is a possibility.And TV is powerful media to send our
massage to the customer. Through this media we will reinforce our brand name
and encourage customer to purchase.









 

We definitely need to know moreabout our customers. mor this we will do:
1) Primary research because we need to know about existing customersby
using Random telephone calls, through-the mail surveys, and website
surveys. What do our customers think about us? How do they grade our
services?
2) Secondary research on the Internet and in published magazines that will
help us to know what's available about buying patterns anddemographics,
business needsfor our main target users

This research will help us in develop our product, service and much more in our
company.

 



The (HI-TEC1000) will be introduced in Êarch. So we divided the year to 4

quarters as following:

mirst quarter (January, mebruary):

We will initiate $300 million for the advertisement in our campaign. This will
include a large advertisement in TVs, billboard, radio, magazine and internet.
About our brand name and our product, to 22/febwe will continue in our
campaign with more advertisements but after 22/feb we will make Press
conference about our product, and we will explain to them about this product.
And we start to tell the customer what is our product and make the media (TV,
radioƦetc) talk about it. Also start the distribution.

Second quarter (Êarch, April, Êay, June):

At 1/march is the big day for our company in this day will make a big party and
invite the Celebrities because itƞs the day we will lunch our product. Also we will
make offer that anyone buy our product in this day will have the chance to talk
and take pictures with Tom Cruise because he is the one who  our product.
And this party will cost us $2million.in the next months we will expand our
distribution channel to include more stores and retailers. This expand include
Canada and England. Also we will make trail product in our company store and in
the main retailers stores this will make the consumer more confident to our
products.

To improve our campaign, we lunch our important TV advertisement Tom Cruise

is explain to customer about the product as sales customer in the company store
and other places. We also make large advertisement that buy the product and
register his name he had the chance toTom Cruise came to his home and explain
to him about the product.

Third quarter (July,August,September,xctober):

We are going to start deal with universities and companies to buy our product.
Also we will continue our campaign in more advertisement with 2 times a day in
the TV and three times in radio. And we will be concern more in the movies so
we support movies like the (Hobbet) itƞs the fourth part of lord of the ring.Also
we invest more in magazines advertisement.

We also improve our supply chain by buying big inventory and some
transportation equipmentƞs. This cost us $5million.

mourth quarter (November, December):

Start new campaign about our next product the (HI-TEC2000) and make this
campaign similar to the first one except few things. The distributions expand to
reach Êiddle East.

Year 2:

Expand our advertisement and start lunch our own magazine. We discount our
product price to be $2,200 to the wholesaler and $3,000 to the customer. We
lunch our new product (HI-TEC2000) in the middle of the year. We make our
campaign concern more in the UEmA Euro 2012.

Year3:

Innovate more products and we start to distribute around the world, we become
the number one brand in our market, we reduce cost to 50%. We start negotiate
with Sony company to produce the best 3D screen.




Each unite of (HI-TEC1000) cost us $1,500

Expected costs:

Name Initial startup Y1 Y2 Y3

Labor x $5 million $10 million $20 million
Production $15 million $15 million $20 million $40 million
manufacturing
Advertisement X $300 million $320 million $250 million
Equipmentƞs $6 million $20,000 $30,000 $25 million
Transportation x x $8 million $12 million
xthers x $6 million $2 million $1 million

Expected revenue:

Name Y1 Y2 Y3
Sales revenue 250 million $440 million $900 million
Salvage value 0 $2,000 $5,000
xthers 0 0 $200,000

Expected loss/ profit:

Name Initial startup Y1 Y2 Y3

Total cost $21 million $326 million $360 million $348 million
Total x $250 million $440 million $900 million
revenues
Total cost/ -$21 million -$76 million $80 million $552 million
revenue

 

We plan to carefully monitor customer service so we can always know just what
consumers need. And this will prepare us for any problem that comes along. Also
we plan to keep a close eye on our effectiveness and efficiency.