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06/10/2012

International Marketing Plan for Creative Technology Ltd: Marketing Plan of Creative Zen MP3 Players in the UK


 

1.0 Executive Summary

This marketing plan is about the launch of new product line dubbed as the Creative Zen MP3 players by Creative Technology in the following year in the UK market. Tech-savvy, music enthusiasts requires for musicalities that only innovative digital music companies can provide. So, Creative Technology came up with music players that are equipped of everything that the users are waiting for a digital music player to provide them. Creative Zen players represent an advanced yet diverse MP3 player with the latest digital applications. It reflects the radical changes MP3 technology moving from the analogue service to the digital era.

This plan will provide the information about Creative Zen MP3 players and its marketing strategy. Key features of Creative Zen that is said to rival other MP3 players are evident in its capacities, expansion supported audio and video format and the extra features which include album art, photo viewer and FM radio among others. The success of Creative Zen in the UK would illustrate that product innovation is the key to success into the market.

Other ambitions for this marketing plan include:

v  Product life cycle analysis

v  Analysis of STEEP, SWOT and the digital music player industry

v  The target markets and promotional opportunities

v  Marketing mix for product, place, price and promotion.

v  1-yr product finance forecast

2.0 Company Background

Founded in Singapore in 1981, Creative Technology is a worldwide leader in the digital entertainment products for the personal computer and the Internet. Today, Creative is widely recognized as a global leader for product innovation in the audio and PDE segments, offering consumers a complete, high quality digital entertainment experience through Creative's hardware, software applications and services. Finding the perfect balance between form and function, Creative strives for every product to be a sensory feast for the eyes and ears (Creative Technology online, 2010). Creative Technology’s mission is to provide consumers with innovative digital convergence products that possess exceptional technology, quality, features, performance and value. Its simple mantra is a passion for technology wherein users are tapping on their own passionate inclination when it comes to music through MP3 players, for instance.

Creative's product innovations have won numerous international awards and accolades throughout the years. The more recent and notable awards include the Consumer Electronics Show "Best of CES" awards for four consecutive years for Prodikeys PC and music keyboard (2003), ZEN Portable Media Centre (2004), ZEN MicroPhoto MP3 player (2005) and ZEN Vision:M MP3 player (2006). The ZEN Micro MP3 player also won the Ziff Davis Media "Best of DigitalLife 2004" award. Creative has also set new audio standards with the launch of its latest Xtreme Fidelity (X-Fi) audio platform. The cutting-edge technology has gained wide industry recognition and was selected by Popular Science as the "Best of What's New in Home Entertainment" in 2006 for bringing outstanding audio quality to MP3 music. Creative has forged partnerships with some of the industry's top technology companies and developers worldwide, fortifying our strength and leadership in product innovation and research & development. Creative also made strategic investments in a number of US-based companies.

2.1 Creative Zen MP3 Players

Basically, with its great sound, a crisp and clear screen, and the effective video playback, Creative Zen is a serious iPod competitor. Although the interface is not quite as sleek as the iPod, it is user-friendly and quite full-featured. Creative Zen MP3 player main specifications include: 

  • Size: 3.26" x 2.16" x 0.44" (82.3 x 54.86 x 11.17 mm)
  • Weight: 2.1 oz (60 g)
  • Display: 2.5" High resolution color TFT display (320 x 240 pixels, 16.7 million color support)
  • Capacities: 2 GB, 4 GB, 8 GB, 16 GB and 32 GB
  • Expansion: SD card slot (compatible with microSD, miniSD, SD, and SDHC)
  • Supported audio: MP3, WMA, WMA-DRM, WAV, AAC, Audible
  • Supported video: MPEG4-SP, WMV9, DivX, XviD, MJPEG
  • Extras: Album art, photo viewer, FM radio, voice recorder, organizer (contacts, calendar, tasks), clock and alarm
  • Suggested Retail Price: Between £80 (2 GB version) and £299 (32 GB version)

2.2 Product Analysis

Each MP3 player has a product life cycle and almost a player’s is one year.  But Creative Zen MP3 players have more functions and professional style, Creative Technology can extend the life cycle for around two years.

In the introduction stage (1-3 months), the consumer, the market has not any information about Creative Zen as well as its feature and function. This will require Creative Technology for a lot of advertising and promotion to introduce the consumer and the new market.  In this stage, the outcome cost is larger than income.  The majority cost is included development cost, consultant fee, advertising fee and promotion fee.  The company also expects advertising and promotional costs to be as high as in the introduction stage as more companies will enter the market and competition for market share will also increase.  Advertising is a proven way of promoting technological advances within a market so higher advertising costs can be expected as the technologies available get better and more advanced. 

The growth stage (4-12 months), Creative Zen will start to make a profit, based on good market research and a strong sense of branding and a successful marketing scheme. Creative technology also has high promotions cost involved in this stage.  In the growth stage profit isn't the only thing that will start to develop, as in the market it is obvious that more difference MP3 players will be developed and that will drive prices higher, this is a good time to make a profits because consumers have accepted the product, as a necessity they will be more willing to pay higher prices for new digital music players that emerge in the market.

When a product enters the maturity stage (13-18 months), advertising and promotional prices should decrease, as consumers are more aware of the product and will research new additions to the market instead of being told what is new.  At this point in the product life cycle, Creative Technology should be clear as they will have the most money to develop and promote Creative Zen MP3 players while the other, less popular producers of MP3 players will be struggling to survive and will drop out of the market either here or they will seriously struggle in the next stage, decline.

The final stage, decline stage (over 18 months), Creative Zen MP3 players have entered, and Creative Technology will try to re-launch Creative Zen range to the existing market or entering new markets (outside of UK and other than Singapore).  At this point MP3 players’ sales will be decreasing and promotion and advertising costs will start to rise again as companies fight for the remaining market share and struggle to make a profit.  This will back into to growth stage.

Sales and Profit (£)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profits

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

Time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

Introduction

Growth

Maturity

Decline

 

 

Development

 

 

 

 

 

 

Stage

 

 

 

 

 

Losses / investments (£)

 

 

 

 

 

3.0 Business Environment

3.1 STEEP Analysis

          Creative Technology is also a global brand hence there is a need to analyse the macro environment to which it uniquely operates. Macro environmental factors include social, technological, economical and ecological and political. When Creative Technology provides a new product in the market or penetrates a new market, it needs to know what is happening in the host country at the moment, for instance. So, Creative Technology has to adjust its strategic plan in order to develop an international market as there are different culture and different external factors between different countries.

3.1.1 Social

Creative Technology produces necessary information for their stakeholders such as the environmental declarations, product material declarations as responses to the information requirement of media, officials, recyclers and other stakeholders and new question on other substances.

3.1.2 Technological

In the digital music player market, this is probably the most important external factor affecting Creative Technology’s development of their marketing strategy as they must always keep up to date with every change within the market. It has to keep up to date with all the newest technological advances if they are going to capture the biggest market share and be successful in it, hold on to their market share as hopefully gain more and stay ahead of their competitors. Creative Technology has an array of Creative Zen players continuously rethink its brand portfolio strategy and how new product categories can subvert incumbent brands as part of strategic brand management.

3.1.3 Economical

          Creative Technology is basically adding value to its produce. MP3 products are equipped with various features, accessories and applications as part of its value-added services. Although the company is not very particular with the first-in approach, though it is producing music players long before Apple introduces the iPod, Creative Technology takes a more conservative approach but of optimal performance to the products.

3.1.4 Ecological

Many companies may view profit as more important than ethical practice and this can lead them to making illegal decisions and this has been a big contribution to many companies going out of business or losing their entire market share to eco-friendly companies. Creative Technology have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons, they are such a popular brand of audio equipments from large to small ones such as MP3s. Creative Technology takes full responsibility in sustainable product development wherein all produce are environmentally-friendly in its entire life cycle. The goal is to take part in the world’s fight against natural environment contamination and global resource consumption and emissions.

3.1.5 Political

It is important for Creative Technology to acquire resources from government, such as economic policies and science and technology policies. UK is a free trade zone, to operate efficiently, a modern knowledge and technology based economy that is highly specialized and internationalized and undergoing rapid technological changes. The success of Creative Technology in the UK is evident on following government requirements including in the establishment of Creative Labs in London which assist the company to advance its products. High safety standards of the design have direct implications on the quality of life and wellbeing of end users that is why Creative Technology is committed in complying with standards and regulations.

3.2 SWOT Analysis

SWOT analysis is also another way of deciding on a successful marketing scheme, it must look at Strength, Weakness, Opportunity and Threat.  The SWOT analysis provides information that is helpful in matching Creative Technology’s resources and a capability to the competitive environment in which it operates.  As such, it is instrumental in strategy formulation and selection.

3.2.1 Strengths

Considerably, Creative Technology is a big brand in the world wherein their product can make a confidence to customer buy. Creative Technology have strong strengths than other company.

Ø   Popularity in niche digital music players in Asia, America and Europe

Ø   Excellent marketing and promotion

Ø   Solid manufacturing

Ø   Effective research and development facilities

Ø   High quality product and function

Ø   Variety of products to keep them in the game

3.2.2 Weaknesses

This is basically looking at where the product is failing or mot doing as well as it should in the market. Creative Technology’s problems are that:

Ø   Currently aiming their products as a saturated market segment

Ø   Products lack user centered design

Ø   Products lack the slick and fashionable appeal

3.2.3 Opportunities

This is the area in which Creative Technology can make more profit or gain more market share.

Ø   Improve the technology that they are using to make their MP3 players and use in their products.  The camera MP3s and advanced picture and video storing would attract new consumer to purchase MP3 players under the Creative Technology and specifically Creative Zen brand name.

Ø   Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. 

3.2.4 Threats

This is looking mainly at the competitions that are taking away Creative Technology’s current market share.

Ø   Asian OEMs (original equipment manufacturer) who are entering the market very aggressively

Ø   ODMs (original design manufacturer) enabling carriers to leverage their customer power

Ø   Apple is just one of the many other digital music player producers which operate globally and are selling their own brand of MP3 players.

3.3 Digital Music Player Industry Analysis

          Fereira et al (2010) noted that MP3 is becoming a de facto standard in the digital music industry and for good reasons. First, it involves the reputation of the companies. Companies producing MP3 players are expert in both technical and musical industries as well as the marketing aspect. They tap the influential buyers as they create the critical mass necessary to get the standard adopted and so that buyers can take notice of these companies as well.

          Second, there is a wide availability of the standard although it is controlled by ISO. Any company can use such for free hence MPEG tools (decoders and encoders) and many of them are available free of charge.

          Third, there is a network effects on both supply and demand sides. An increasing number of companies are producing products based on MP3. There are also an increasing number of customers that are creating their own MP3 music libraries. As such, the availability of software and hardware has caused users to find the adaption of the standard as a worthwhile endeavour.

          In sum, the MP3 players is a more convenient and usable form of portable entertainment. An expected development of MP3 players is that it will continue to be developed in terms of capacity and robustness. Nonetheless, MP3 players will become cheaper. To remain popular MP3 players will have to keep an edge over devices such as portable PCs and games consoles as well as mobile phones. This means that designers will have to incorporate larger screens and better sound quality if they are to retain this competitive edge. It may even become the case that devices incorporate the ability to record digital images, audio files and videos to improve their worth to the consumer (Pretty, 2010).   

4.0 Marketing Strategy

4.1 Justified 1-yr Objectives

          Creative Technology shall set objectives aggressively to sell the diverse MP3 players to achieve one year in the UK market. These objectives include:

Ø  Acquire 8-10% of the market share in the UK

Ø  Achieve 500,000 - 1 million units sales in one year

Ø  Achieve 3-5% share based on sales

An important objective will be extended on the Creative Technology brand name and link to the established meaningful positioning.  Creative Technology has invested heavily on the diverse MP3 players and it plans to capitalise on the brand when marketing the Zen players, extending on Creative Technology’s image of innovation, quality, market share and value.  In additions, it will measure the awareness and response in order to make adjustments to our marketing campaigns as necessary.

4.2 Concept

Evidently, Creative Zen conforms to a product marketing concept. Kotler and Armstrong (2004) assert that consumers will favor those products which offer the most quality, performance and features. As Merholz et al (2008, pp. 84-85) put it, Creative Zen’s success boils down to superficial discussion of design focusing either on its form with its undeniable aesthetic appeal or its elegant interface and its ability to provide access to thousands of songs. With MP3 players, Creative Technology embraces the concept as it makes continuous improvements in order that they could provide value for money, that is, from Nomad Jukebox Zen to simply Zen. As such, Creative Technology had recognized consumer demand for more features with an experience strategy of creative technology anywhere. Creative Zen is now an all-inclusive media whereby the focus shifted from design of form or interface into design of the entire system the supports the media consumer.  

          Product concept, however, has its pitfalls such that it develops complacency regarding consumer preference and leads to marketing myopia (Kotler and Armstrong, 2004). Creative Technology understands that the potential for rapid change and it is in this sense that it continuously innovate the brand to create more market share. As such, Creative Technology would be far from developing complacency since its focus is change wherein the Zen architecture has the fundamental capability of developing adding product features (Carroll, 2007, p. 162). Marketing myopia is said to be developed when electronic consumer companies would not be able to tap into green marketing as it is now regarded as the yardstick. The argument is that a more sustainable business model requires product dematerialization by which commerce will shift from the sale of goods to the sale of services (Ottman, Stafford and Hartman, 2006, p. 35). This would be also far from happening when it comes to Creative Zen because of the fact that the very business model of Zen follows the dematerialization concept. Zen gives the consumers the convenience to download, store and play various media formats (Ottman, Stafford and Hartman, 2006, p. 35).  

4.3 Targeting

Everyone who has access to computers could take advantage of what Creative Zen is capable of. People who have passion for entertainment are the main target of Zen players therefore. As it also appeals to both genders, product desirability is its main crowd drawer. Simpson, Siddique and Jiao (2006, p. 77) made mention that Creative Technology, through its wide range of MP3 players, targets thee different market segments such as low cost, standard and high cost/high feature. A market niche can be described as a particular market area where price and performance requirements are unique. Price and performance targets are specifications set by the consumers and/or market leaders.

With this said, in the digital music player market, a niche can be considered players from £40 to £60 that are small, easy to use and hold more than a few hundred songs. Zen Style 100/300, which should be sold at £48 for 2GB and £62 for 4GB, will cater to these customer requirements. When a niche would consider increased memory capacity, Zen has X-Fi and Mozaic in 8GB for £115 and 16GB for £135. Other niche would consider £140 and up products such as Zen MX, Zen X-Fi2 and Zen X-Fi style touch in 8GB (£149), 32GB (£229) and 64GB (£299) and Zen Zii0 and Zen touch for £150 and up.  Overall, the strategy could be said derived from a standard platform of creating market value through various segmentation strategies. For Zen players, such platform draws from the support of the component, system and features, allowing the MP3s to cater to a particular segment and be easily modified for other market segment and/or higher level tiers within the same segment. Users of Zen players could be considered as technically sophisticated which could be also regarded as early adapters of technology. Moreover, one of the challenges for Creative Technology is to get the product beyond the early adapters into the mainstream market to sustain market share.  

4.4 Positioning

4.4.1 Product

Creative Technology can convince users that through Zen MP3s’ design customer experienced could be enhanced. Specific questions about Zen MP3 players must be answered such as: What kind of experience does Zen provides? What kind of performance does Zen offers? What value does Zen offers? What kind of user interaction is required to use Zen? Is Zen optimally designed for its possible use? Does Zen has quality construction? Does the performance live up to expectations?

          Zen, from a personal standpoint, is an iconic device that enables people to mobilize pleasure from one place to another. This is particularly sensible since the demands of the consumers today require that lifestyle should be diverse and responsive enough to cater to those needs. Chadha and Husband (2006, p. 287) explain this as an on-person technology which is a new area of luxe branding. Creative Zen, in simpler terms, is a luxury brand and specifically a techno-luxe brand that caters to high-end lifestyles.      

4.4.2 Price

Creative Zen MP3 players’ prices should be based on the perceived quality of the product, making use of the product-price interaction. To wit, despite the high prices of Zen players which covers segment from £30 to £500 consumers across the country are willing to buy. Sliwinska, Ranasinghe and Kardava (2008, p. 5) referred to this pricing strategy as skimming whereby Creative Technology could sell its Zen MP3s at a higher price, gaining high profits in the process. The company can make use of such a strategy in order to reimburse the cost of investment put in the research and development processes. Because of the combined brand personality of Creative Technology and Zen, the company is not forced to risk a depressed sales volume. On the other end of the spectrum, Creative Technology should be wary of falling off a victim of its own pricing strategy when it reduces prices after the launch of a product.

When Creative Technology launches Creative Zen, it cut the price of the old generation known as the Creative Nomad Jukebox Zen. As such, skimming would work for Creative Technology since prices of MP3s could diminish with time especially when new versions of the same model will be introduced. The price of every generation model launched on the market is less expensive than its predecessor (MP3.com, 2010).

Creative Technology should also utilise a versioning pricing strategy, or pricing discrimination, since it can charge customers different prices on the same product. This is highly dependent on the locations of the buyers and seasons and added features wherein Creative Technology as the seller charges each customer the maximum price that s/he is willing to pay. The company can practice this strategy because they are already able to gain wide profit margins from those who are willing to pay the premium price and that they would benefit from high volume by building a wider customer base for the product later.  

4.4.3 Place

Distribution channels of Creative Zen MP3 players will be a combination of distributors and retailers. Creative Technology should start its line of retail stores which will house their brands and distributors for selling the brands in geographically-scattered areas in the UK. This would be easy considering a Creative Lab is already inexistence in London. At the retail level, reseller stores and electronic shops should be utilized to penetrate a larger audience in different cities and regions in the UK. Creative Technology should hire a retail executive to develop retail strategies that relied heavily on company-owned stores (Lamb, Hair and McDaniel, 2008, p. 339), reflecting design sensibilities of Zen and Creative Technology itself. Basically, such mixed distribution channeling strategy can enable Creative Technology to hold a tremendous control over the Zen brand. Not just the brand, the company would be also able to control retail prices, inventory levels and post-sale service.  

          As such, the Internet is an important distribution channel for Creative Technology since the company has no offline music businesses. MediaSource which refers to the software used to sync and transfer digital media is a complement to the downloadable music player where the former is offered as a physical product. This is a sound distribution strategy considering the fact that downloaded music is on a per piece basis. Royer (2005, p. 173) asserted that Creative Technology, with its MediaSource, had found a way to increase the willingness of customers to pay for downloadable music and therefore can reduce innovative marketing activities to the marketing of its own intangible web goods.

          Viardot (2004, p. 196) noted that for products that are neither entirely standard nor truly non-standardized but rather in between these two categories, a marketing channel should be selected depending upon the technical complexity of the product and the need for customer service depending upon the distributor’s ability. What Creative Technology should do for Zen MP3 players on the distributor’s level is that they can raise the margins for large dealers that can provide customized solutions, demo facilities and after-sale support with a well-trained staff and third-party products stocks. 

          Today, Creative Technology is also expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world especially in up-market, quality shopping venues like that of high streets in London. Creative Technology, nevertheless, should also provide experts on retail floor to address the needs of the people in real-time. Strategic alliances to co-brand with other leading companies are another strategy that Creative Technology should attempt to pursue such as iTunes.

4.4.4 Promotion

To promote the Creative Zen MP3 players in the UK, Creative Technology should embrace the AIDA concept or where attention, interest, desire and action shall took place eventually. Awareness of the existence of the Zen players would be made possible by excessive advertisements on TV, in magazines and on the Internet. Because Creative Zen is a brand extension of the Audio Blasters, for instance, it requires less effort than it had been a new brand. At the same time, Creative Zen is an innovative product hence building brand awareness would be relatively easy. Such growing public awareness could lead to sales as Creative Zen advertisements tap on the interest of the people. In particular, Creative Technology could arrange demonstrations and target messages to innovators and early adopters to create interest in the new portable music players. Through this, people can be made not only of the product itself but also of all the features and benefits of the MP3 players to its user.

          Moreover, potential customers for the Creative Zen may initially like the concept of a portable music player. The paradox is that they may not feel the necessity of it. Creative Technology shall create a brand preference through emphasizing its features. For one, Zen MP3 players are equipped with X-Fi technology and powerful built-in speaker. Creative Technology had to convinced potential customers that the Zen product was the best solution to meet their desire for a portable digital music player. Afterward, target customers are now actually convinced to buy the product. This was made possible by the continued advertising to more effectively communicate the features and benefits and also used promotions and price discounts.

          Thereby, not only Creative Technology should introduce Creative Zen MP3 players but also provide the people the mindset of acquisition based on the functionality and benefits of the product. With every stage of the process, consumer involvement with the product message is aimed at. Lamb, Hair and McDaniel (2008, p. 497) described this as the process of tapping on the responsiveness of the consumers to marketing messages. These are through cognitive (thinking), affective (feeling) and conative (doing) processes. 

4.5 Communication

Prestige marketing should be the core of Creative Technology’s marketing communication plans. This means that the corporate Creative Technology shall endorse the Creative Zen brand of MP3 player through the premium image which added prestige and credibility to the launch of the Creative Zen products. Flanker branding is used to target message (Gorchels, 2006, p. 77) that the new MP3 players is being launched and introduced to the market. Hiraoka (2009, p. 28) argued that there is the dominance of hedonic factors than utilitarian elements on Creative Technology brands that rival that of Apple’s. This would be true considering the fact that the marketing approach for Creative Zen should centre on the ‘coolness’ of the product and its brand. Prestige and desirability is gained because of this ‘coolness’ factor which could be also associated with the exclusivity. This is termed as the monolithic strategy of branding wherein Creative Technology shall make use of its legacy to associate with the “technological creativeness” to all its products (Management Paradise, 2009). To wit, not all people can afford Creative Zen MP3 players especially those players that are newly launched in the market hence the MP3 player phenomenon is more concentrated on the prestige-seeking customers. 

Speaking of brand, Creative Technology should have a branding strategy that focuses on the emotion. Creative’s Zen brand personality speaks of lifestyle, imagination, liberty regained, innovation, passion, hopes, dreams and aspirations and, the most remarkable, power to the people through technology. The paradox is Creative is also about simplicity and the exclusion of complexity from people’s lives, people-driven product design aside from being a humanistic company with a warm connection with its customers. As such, Zen would probably be embraced by the people from all walks of life even in the low-tiers; Zen shall create a sense of community among the users of its product lines. With this community, Creative would be able to remain competitive and sustainable following the entry of Apple through its iPod in the digital audio market (Management Paradise, 2009). 

5.0 Financial Summary

Forecast income and outcome for the Creative Zen MP3 players:

Stage

Month

Estimate Sales

Qty

Advertising

Other expenses

Introduction

1

360,000.00

100

300,000.00

100,000.00

2

396,000.00

110

400,000.00

150,000.00

3

432,000.00

120

500,000.00

120,000.00

Growth

4

702,000.00

195

200,000.00

100,000.00

5

900,000.00

250

350,000.00

110,000.00

6

720,000.00

200

220,000.00

130,000.00

7

756,000.00

210

240,000.00

135,000.00

8

720,000.00

200

190,000.00

140,000.00

9

648,000.00

180

170,000.00

85,000.00

10

684,000.00

190

180,000.00

99,000.00

11

666,000.00

185

160,000.00

110,000.00

12

792,000.00

220

175,000.00

105,000.00

Maturity

13

630,000.00

175

200,000.00

70,000.00

14

540,000.00

150

150,000.00

63,000.00

15

594,000.00

165

120,000.00

57,000.00

16

612,000.00

170

130,000.00

43,000.00

17

558,000.00

155

90,000.00

31,000.00

18

504,000.00

140

76,000.00

20,800.00

Decline

19

468,000.00

130

50,000.00

10,000.00

20

360,000.00

100

30,000.00

8,000.00

21

324,000.00

90

20,000.00

7,000.00

22

378,000.00

105

22,000.00

7,500.00

23

288,000.00

80

15,000.00

6,000.00

24

108,000.00

30

12,000.00

2,000.00

 

 

 

 

 

 

 

Total

13,140,000.00

3650

4,000,000.00

1,709,300.00

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

      13,140,000.00

 

 

 

Less: Expenses

 

 

 

 

 

Development cost

3,500,000.00

 

 

 

 

Advertising costs

4,000,000.00

 

 

 

 

Other expenses

1,709,300.00

        9,209,300.00

 

 

 

 

 

 

 

 

 

Estimate 1-yr Net profit

 

        3,930,700.00

 

 

 

 

7.0 Implementation and Control Mechanisms

One appropriate recommendation is setting measuring success criteria. The measures of criteria for the four areas are determined below. Both of these will measure the effectiveness of the marketing strategies that Creative Technology should employ to increase the public awareness of Creative Zen MP3 players and draw profitability from this brand.

First, in terms of expected sales wherein the company should make use of a financial equity scoreboard, as shown below, to further determine the financial strength of the MP3 players line. The criteria will be two-fold – asset and monetary. Under asset, the scoreboard will measure intangible, conditional and beneficial performance. The monetary aspect will centre on stock price performance (optional); return on investment including costs of setting-up of website, online collaborations and convergence with computer superstores; return on sales and cash flow.

 

From (date)

Estimate- Decision A

Estimate- Decision B

To (date)

ASSETS

1 Intangible

2 Conditional

3 Beneficial

 

 

 

 

MONETARY

1 Stock Price Performance

2 Return on Investment (ROI)

3 Return on Sales

4 Cash Flow (ROI)

 

 

 

 

 

Second is through establishing criteria to control performance. The criteria to be included in measuring control performance are shown below. It will demonstrate the brand strength indicators and how poor or well does the product, Creative Zen MP3 players, performs in the market.

BRAND STRENGTH INDICATORS

YES/NO

REMARKS

Value-added Attributes

- non-duplication

- distribution

- promotion

- pricing

- customer service

- access

 

 

Brand Knowledge

- levels of familiarity

- image awareness

- customer recalls

 

 

Brand Preference

- individual motivation

- ability to purchase

- attitudes and behaviors toward consumption

-levels of attachment

 

 

 

8.0 Business Conclusion

During to the last five year, Creative Technology continues to innovate the digital music player industry.  Creative Technology is well-aware that the essence of the future MP3 players is all about high functional and capacity and features and the successful integration of new technologies such as powerful speakers and X-Fi.  And then, Creative Technology has its inclination set on creating niche markets in the steadily growing MP3 players’ arena in the form of Nomad Jukebox Zen and now Creative Zen. The company has managed gearing up to roll out a range of multimedia and diverse digital music players including Creative Zen.

To take the maximum advantage of our marketing plan, the progress of the plan will be carefully monitored. The measurement of progress will center on establishing targets and standards, and whenever necessary, corrective actions will be implanted. Deliverables will be closely watched so as the activities generally outlined above could be followed without interruptions. The plan will be reviewed on a monthly basis with the quantifiable aspects of the plan: sales, market share, expense and financial.

References

Carroll, J 2007, Ready, Set, Done: How to Innovate When Faster in the New Fast, Oblio Press.

Chadha, R & Husband, P 2006, The cult of the luxury brand: inside Asia’s love affair with luxury, Nicolas Brealey Publishing.

Creative ZEN reviews and specs, 2010, MP3.com.

Fereira, P, Martin, J, Yuang, J & Yuan, H S 2010, Impact of MP3 on the Music Industry.

Gorchels, L 2006, The product manager’s handbook, McGraw-Hill Professional.

Hiraoka, C 2009, Technology Acceptance of Connected Services in the Automotive Industry, Gabler Verlag.

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