Mobile Services Industries, Essay Example

Marketing Plan

A marketing plan refers to a comprehensive, researched, and well-written report that companies use to outline actions and steps that should be taken to clients and customers (Cohen, 2012). Marketing plan also includes measures a business aims to take to persuade customers into purchasing the product. This report presents the development of a simple marketing plan for the launch of new product line, self-charging replacement cell phone battery, which will be introduced into the market in the next three months.

Description of the Product

Gema Self-charging battery is a solar powered self-charging battery line compatible with all Smart phones in the industry, as it is designed to replace all existing standard battery types currently available in the market. Unlike the existing batteries in the market that requires smart phone users to plug their phones into the socket in order to recharge, Gema Self-charging Battery is a unique cell phone battery rechargeable by simply pacing it under the sun. Cell phone users would simply need to take their battery out and let it charge under the sun.

Therefore, this battery will not require electrical outlets for charging. In addition, the average battery life before next charging will be 72 hours. Besides, this product would be very reliable, as cell phone users would be able to charge their batteries anywhere during the day for free. Therefore, the battery is also economical because once purchased, the cell phone users will not have to recharge their batteries at a cost or incur electricity bills related to phone charging.

Market Analysis

The current global battery market is approximately 50 billion US dollars, of which about 5.5 billion dollars is allocated to cell phone batteries. The growth for Smartphone batteries is estimated at an annual growth of 6 percent, with various regions including china, South Korea, and Czech Republic likely to record the highest or strongest market margins. Nabeel Al-Qirin (2014) predicts that the demand for rechargeable batteries in the United States will reach a record high of 14 billion dollars by 2017 owing to the increasing use of devices such as camera phones, digital cameras, and other high performance computing devices such as tablets. The increasing production of Smartphone would also result increased demand for batteries, as most batteries that comes with Smartphone often have low lifespan. Consumers have to replace them regularly.

Statistics compiled by In Lee (2013) also reveal that most consumers in the US markets often do not carry their battery backup, such as external battery or cell phone chargers when leaving their home.

As shown in figure 1, in average, 85 percent of consumers in the U.S market often do not carry backup for their phone batteries. While 11 percent of cell phone users often carry spare charger, only eleven percent carry an external battery. Consumers who do not carry backup often require very reliable batteries. These consumers in the market, therefore, will find the self-charging battery more relevant to their needs. Since the product would only be sold in the United States in the first three years following its introduction, the company aims that it would gain about 10 percent of the total market by the end of the three years. Most consumers in the market have expressed their desire for reliable, self-recharging battery. To that degree, it is expected that the battery will gain this market share only after three years.

Size and Demographic of the Target Market

Gema self-recharging batteries are standardized batteries product line that is compatible with almost all Smartphone currently available in the market including Samsung Smartphone, Apple iPhone, and Windows phones. Therefore, the target market for these products in the United States comprises of all individuals using Smart phones. In respect to age demographics, this battery will serve individuals between 15 years and 50 years.

Statistics by Nabeel Al-Qirin (2014) reveals that people between these ages are likely to poses one or more Smart phones. However, students are the major target market for this battery. Compared to adults aged between 30 and 50 years, students aged between 16 and 29 years tend to spend more time speaking on the phone. In terms of market size, about 64 percent of population in the United States own Smartphone. This population will form the main market for the product.

Potential Competitor

The main potential competitor for Gema self-charging battery is Li-ion (Lithium Ion) Batteries. Li-Ion Batteries are thin, light batteries that have become very popular in the US cell phone industry in the recent years. Li-Ion manufactures original battery replacements for various Smartphone models including iPhone, CloudMobile, Sony Xperia Series, LG Google Nexus, and Samsung Galaxy, as well as other Smart phone brands. Since Gema Self-rechargeable battery target the same market, Li-Ion will be the main competitor in the market.

Marketing strategy

Marketing Strategy shows a business’s best opinion as to how it can most profitably apply its resources and skills to the marketplace (Wood, 2013). The product would be manufactured in-house before it is introduced into the market. Secondly, a team of highly qualified researchers will be sent to the market to analyze consumer behaviors for replacement cell phone batteries. The company will then analyze and develop a marketing plan, which will be executed during the product launch. The company will review the plan on a yearly basis to ascertain whether the product is performing well in the market.

Pricing

The pricing for this product will be in consistency with the value afforded to customers relative to similar or comparable substitutes. Therefore, the prices will not go beyond the average prices of replacement batteries for different cell phone categories by more than a third of the prices.

Promotion

Gema Self-charging batteries will mainly focus on personal selling. After a year in the market, the company would explore different marketing strategies including the use of traditional marketing platforms such as Television and print advertisement, as well as the use of website and social media platform. The products would also be promoted through volume discounts, direct sales promotion, free trials, and coupons. Direct sales discount will be the main promotion tool that will be used to promote the product during the first year of its introduction into the market.

Distribution

The product will be distributed to consumers through various means. The product will be distributed mainly through local distributors in the United States including wholesalers and warehousing companies who then distribute the product to retail stores and other outlets. Some of the products would also be distributed to retailers directly. In addition, the product would be sold directly to the customers through online and company’s website.

Sales Support

The company would have a competitive sale support, which will be filled with highly competent personnel with wide-ranging training background. In this light, the company will have online support tools, on-going press releases concerning new replacement battery types, as well as a team of customer care who will be available 24 hours every day.

In conclusion, the product will be able to penetrate the market faster given its uniqueness and reliability. Therefore, as ascertained in this plan, the product will be expected to a reach more people in the United States. If the product becomes successful in the United States, then it would be introduced to markets outside the country.

References

Cohen, W. A. (2012). The marketing plan. New York: Wiley.

Wood, M. B. (2013). The marketing plan: A handbook. Upper Saddle River, NJ: Prentice Hall.

Al-Qirin, N. (January 01, 2014). The Application of the Innovative Mobile Technologies in the Business Environment. New York, NY: Wiley.

Lee, I. (2013). Mobile services industries, technologies, and applications in the global economy. Hershey, Pa: IGI Global