Marketing plan for Rainbow

Infotech

PC Industry/Market Size
The computer industry consists of hardware, software, service
and an endless array of products our group chose to narrow
the research to PCs. The worldwide PC market finished 2004
on a strong note, with double-digit percentage growth for the
year, according to research released by IDC and Gartner.
U.S. and Worldwide PC Shipments and Growth, 2004-2008
Region
2004
2005
USA (M units)
Consumer
Commercial
Total

82.0
Worldwide (M units)
Consumer
Commercial
Total
284.5

2006

21.8
36.5
58.3

23.6
40.3
63.9

25.6
41.9
67.5

64.9
114.4
179.2

78.4
129.4
207.9

88.4
141.9
230.2

2007
29.0
46.0
75.0

2008
32.6
49.4

100.0
111.2
157.1
173.3
257.1

PEST ANALYSIS
Government focus on digital education: Various state
governments in the country, like Tamil Nadu and Uttar
Pradesh, have mandated laptops for all school children. This
is driving a massive spike in the demand for laptops and
other computer hardware
Tax issues: When compared to low cost destinations such as
China and Taiwan, Indias current tax structure makes the
final product less competitive

Question as to PC manufacturers are delivering value to

customers or not
PC sales declined 4% in 2001-02
Recessionary trends in the Indian Economy
Further 12.5% decline projected

Political

Economical

Social

Technologic
al

SOHO Segment Untapped (Has tremendous

potential)
Mentality of the customers to be kept updated of
the new technologies.
SOHO divided into three segments.
Large population ownes a PC at home.

No proper sales channel for SOHO segment

SOHO dealers need to deal with the every
growing technological advancements in the PC
industry.

Number of Companies within the

Industry
Dell - The world's #1 direct-sale computer vendor

provides a broad range of computer and entertainment

products for the consumer and enterprise markets.
Sony - Sony has refocused its approach to selling
computers: Instead of appealing primarily to consumers, it is
now targeting business customers (mostly small and
medium-sized companies).
HP - HP's Personal Systems Group (PSG) markets desktop
and notebook PCs to consumer, businesses, government
agencies, and schools.
Apple - Once the world's top PC maker, Apple Computer
has been relegated to niche status in a market dominated
by "Wintel" machines (computers using Microsoft Windows
software and Intel processors).
Gateway - Perhaps the purest PC play among the leading
computer makers, Gateway has been hit particularly hard by
slowing sales in that industry.
All the above are global giants of the computer Industry.

Marketing Plan (STP)

Segmentation
More than one third of the PC sales in India account for SOHO segment
Segment 1
* Not knowlegeable about computers.
* Very price sensitive.
* Needs realiable, prompt, after sales service.
* Needs training.
Segment 2
* Somewhat knowlegeable about computers.
* Needs prompt, reliable after sales service and on ways to upgrade.
* Are willing to pay a premium for these services.
* Does not need training.
Segment 3
* Very knowlegeable about computers.
* Does not need after sales service.
* Very price sensitive.
* Does not need training.

Target Market
Small offices
Home use
As an education medium in institutes

Positioning
The Rainbow infotechs main target segment will be the SOHO
segment customers. They need to position their PCs as most reliable
after sales service providers. Competitive pricing will give them the
initial kick in the market but the service quality is what that will keep
it running.
Distribution
The distribution strategy should be focused more in the urban areas
targeting the Middle class of the society as they are the ones who
will be the majority of the customers from the SOHO segment. The
after sales service centers should be easily accessible by the
customers as the main pain point of the customers is service.