NDU Term Paper | Marketing Fundamentals - Fastlink

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NDU Term Paper | Marketing Fundamentals - Fastlink by Naja Faysal

NDU Term Paper | Marketing Fundamentals - Fastlink by Naja Faysal

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  • 1. Notre Dame University Course #: MRK201 Instructor: Goerge Ghaleb NDU – Fall 2003/2004 Prepared By: NAJA FAYSAL MAHER BOU DIAB 1
  • 2. Our new company is a cellular phone company. It manufactures cellular phones and concentrates on developing current models, introduce new models for modern ways especially to be connected to the Internet. Our company is named: Fastlink company. Cellular phones nowadays became an important product. Primarily businessmen originally used cellular phones for mobility and accessibility, but even teenagers now have them. The growth in the market of cellular phones has promotes our top management to start a new company. As a new company we should penetrate the market with a big idea that makes our product special than other original products. The new cellular phone will have a card connected to Internet, a small size and new options that facilitate the usage of our product. The market information system of Fastlink have studied the customer needs and decided to manufacture this new product based on technical devices and special features and design in order to satisfy the market needs. The mission of Fastlink is to manufacture a product that satisfies the needs of economical class. Fastlink intended to produce its new product as a unique product that has a competitive advantage on other products. A large advertising campaign 2
  • 3. will introduce the product to the market, in order to create a clear idea about the product in the consumer’s mind. Fastlink Company is taking in consideration the marketing environment that includes the micro and macro environment forces.Each force has a large impact on the relation between the company and its customers. Starting with the microenvironment forces. The company by its managers and employees are important factors that should be satisfied in their work by giving them the right salaries. The right salaries given push the employees to produce the best quality and give a good reputation about the company. Our top management used to settle new strategies and marketing plans were the managers have chosen the best strategy based on their experience. Concerning suppliers our company have made contracts with many suppliers to have the opportunity to choose the cheapest resources for manufacturing. Fastlink focused on having a good relation with our intermediaries. A discount is given to our financial intermediaries for a certain amount of sales (3% on the price of each cellular phone). That’s why our relation with our marketing intermediaries is excellent which push them to give a good image about our product for our customers. 3
  • 4. The most important factor in our marketing plan is the customer who is purchasing our product. In order to keep our customer in satisfaction our company is working hard to produce a product with a good quality at a fair price. This strategy “marketing penetration” tends to increase the market share in order to gain more profit. Publics also are a factor found in the microenvironment that should be taken in consideration. Fastlink is trying hard as a new company to satisfy government rules concerning product’s safety and truth advertising. Besides, Fastlink has submitted a budget of 200,000$ for media publics that have an important role in promoting customers to purchase their product. In fact, our company is concentrating on these public types that they are the key for the whole public. When Fastlink took the risk of starting a new company, the company was aware of the competitor’s products, plans and media. The MIS of Fastlink have studied the cellular phones found in the market and found an important segment that they can reach. Most of the companies nowadays are focusing in delivering the high product quality with a high price, which leads to a decrease in the amount of sales and profit. These companies are marketing their product by using several medias such as: Radio/TV, newspapers, magazines and Internet websites 4
  • 5. The price of their phones is considered high with respect to the bad economic situation found. The price of the competitors cellular phones is among 150 to 200$ per one unit that is considered expensive for economical class market. Rather than making a complete analysis on the microenvironment forces, Fastlink has studied the macro environment forces of the marketing environment: Demography: The size of our human population in Lebanon is about 3 million that is considered good for a new company that have limited resources. The capital of Lebanon “Beirut” shows the largest density of people that pushed Fastlink to focus on this city as an important place for distributing its cellular phones. Geography: Lebanon is the geographical place that our company has chosen to start manufacturing new cellular phones in order to spread its product to the whole world. The current state of technology: Due to the rapid change in the technological environment, our company is staying in touch with all new techniques in order to stay in contact with new market needs. Fastlink has given instructions to the managers to keep online with every technological change, which gives the company a clear idea about new customer’s needs. 5
  • 6. The manager of our company always says: Being the first company in finding the new needs of the market permits our company to have the competitive advantage. Political environment: Rules oblige cellular phone companies to have a competition based on truth in advertising and giving convincing prices. Where government rules prevent companies to put prices bellow the manufacturing costs. This force encouraged our company to enter the market where unfair competition isn’t allowed. Economic conditions: Studying the economic situation of the market helped company to determine the price of its new product. Our target is to segment the economical class and not the whole market since it is impossible for a new company to manufacture a product that satisfies all the needs. Fastlink MIS have shown that the income of our segment is among 700 $ per month which fits with the price of our product. Sociocultural aspects: Our company has taken in consideration all the society’s basic values, perceptions and behaviors. The rings that are found in our cellular phone have the eastern musical style. Many interviews were done by our focus groups to study the cultural aspects of our market. The studies have shown that a large number of our segment is still affected by the music style that is related to the eastern music. 6
  • 7. Stakeholders interests: Some businessmen started investing in our company. Our top management has made contracts with the stakeholders. A certain percentage of the sales are given as an interest to the stakeholders. As our company follows this strategy there is no fear of any bankrupt. Besides stakeholders will give a good reputation about the company. These stakeholders have various relationships which promise that our company will spread by time due to the investment of other businessmen. Fastlink is trying to take an advantage of the opportunities the environment provides. Our top management is settling its new strategies based on the environmental change and rapid technology development. Demand trends: Our new product is designed to meet market trends. The MIS of our company have shown that most of the market is looking for the product depending on its style and not its quality. That’s why our product has been designed with a fashionable look. Fastlink Company has taken an advantage from the marketing environment. Our company has collected good information about the environment that helps in determining the design of the product in addition to its price. The advertising campaign will include most of the medias: Internet, newspapers, magazines, and radio/TV. A new website on the Internet www.Fastlink.com will be found to give a clear idea about the 7
  • 8. product concerning its features, options, price and other information. Our top management is studying all the promotions given about Fastlink product in all its medias. Truth in advertising is taken in consideration where all the characteristics that are shown in the promotion are really found in Fastlink product. With respect to the objectives, our top management is working hard to settle smart objectives about the whole marketing plan. Fastlink intends to introduce itself to the market as a strong company able to specify its objectives and achieve it with a limited time. The contracts made by the company and the suppliers facilitate the company’s mission in finding the resources to manufacture its product. Our objectives are to produce a cellular phone manufactured with new designs and features. The characteristics are added to give our product a fashionable look. Our goal is to achieve a 20% of the market share. There are many customers who are loyal to a product in addition to many consumers who don’t respond quickly to new products “late majority”. That’s why we should be realistic in the percentage of the market share the company is intending to achieve. All the resources for manufacturing the new cellular are available. There are 100 machines in our company, where each one is responsible to manufacture a part of the cellular phone. The company now 8
  • 9. contains 450 employees, which are classified into groups of work with different salaries. Our objective will be achieved completely at Dec 01-2006. Fastlink Company saw that its resources couldn’t afford to produce a product that satisfies all the needs; moreover, it cannot plan for a mass marketing especially at the introduction stage of its brands in the market. It found that market segmentation could do a better job to achieve the companies mission and objectives. Fastlink, and according to its MIS, found that there is a gab in the market for the middle social class especially those who cannot afford more than 700$ a month, and those who are still students at the university and willing to buy a good quality cellular phones with all the new and technological features in an affordable price. Fastlink decided to target consumers under 700$ income, including small business men, business women, university students, free workers, small employees… this target market can be interested in having a fancy cellular phones with all the new features that they can found in cellular phones that are more expensive. Using advertisements showing university students and small businessmen can be one of the ways to create our image. In addition, the price of our product could automatically segment the market especially 9
  • 10. when doing sales promotions and a good communication plan. Generating the message of our product, which should be clear and differentiated to be used in advertising, is also a very beneficial way to segment the market. Fastlink also can use groups and subgroups in its segments and target them by different brands satisfying their special needs. For example university students varies between the official universities and the private universities and between the sciences students and humanities students and every subgroup could be targeted with different brands. We can also target students by their personalities; some students are romantic and use cellular phones to chat with their friends and some use cellular phones for different usage. Fastlink chooses this segment and not others since it’s research found that there is a gab in satisfying this group of people who have a low income and like to have a good cellular phone with the new features provided by more expensive brands. Moreover, we found that this segment is reliable for new brands and like to be stylish and go for fashion. Usually teenagers have many things in common and mostly they imitate each others, so penetration to this market will increase our market share, position, and sales. Our segment is mostly built on teenagers and under 30 years old people from both sexes. Our consumers are from middle and low social 10
  • 11. class. We should position ourselves as a good quality product with the new features in a very reasonable price. One of the most important stages in our marketing strategy is the marketing mix or the marketing tactics. The product, price, place, and promotion are being taken in a special care especially in the operation stage of Fastlink. Fastlink developed its marketing strategies in all directions; it developed it pricing strategy as well as the product, place, and promotion. Product development: We as manufacturers care about delivering a good quality for our brands, even more than they expected and more than we promote. We also care to have a good design with all new features and accessibility to the technological population. New features are an important factor in the world of cellular phones; each day there are new cellular phones with new features. Fastlink take this into a lot of consideration, it is paying for employees and managers to just be always online and aware for new technologies not only in cellular phones but in all electronics field, this can made Fastlink aware for all the technology in the world and be able to introduce the new technologies when it sees the right time to do so. Moreover, in Fastlink there is a creative section specialized in creating new features to make them unique in their features and have a real competitive advantage. 11
  • 12. Fastlink always make sure to have a good packaging for its products in order to convince its consumers about its image. Our top management is working to satisfy all the needs Fastlink believes that a good relation ship with customers and with the intermediaries benefit. It worked on building a good relation with the consumers and gain trust so than it will gain the potential consumers to be initial consumers. It built an after selling service or warranty for their products. Fastlink was willing to enter the market and make a shock. It didn’t aim for immediate profit; it was just want to hit, to gain a wide market share from the beginning. So, it worked on a pricing strategy than can fulfill the manufacture’s and promotion’s investment. It includes in its strategy to make discounts, cash or early payment discounts, price discrimination, price flexibility… Fastlink believes that its brands should be deliver for the right segment of the market in the right place at the right time. It made sure to have a great coverage and wide distribution channels that support a large number of ware houses in most villages and cities across Lebanon at a fast time and good quality transportation.Promoting its brands is a major issue in Fastlink. Public relations were needed to build the image of the company 12
  • 13. and make it aware by the public. Advertising was also as important, they concentrated on their ads in which they deliver the companies image by a creative messages and ideas using very known media. They also have created a net of sales force, telemarketing and personal selling employees. Moreover, they used well-known TVs, radio stations, sales force, and sponsorship. The new web site www.Fastlink.com will provide all the information about our products for the customer that helps in marketing our product. When the product will be introduced to the market. Our top management will control all the costs required for manufacturing its product. Salaries that will be given to the employees in the company in addition to the distribution costs and interests paid to the stakeholders will be calculated. The sales manager of the company will study the market share after month of distribution. The percentage of the market share will be studied by our top management whether it is compatible to the company’s objectives or not. When people are aware of our products our focus group will ask the interviewers about our product. Interviewers will be asked many questions: whether they are buying our product or not, what is the feature that they 13
  • 14. have liked in our cellular phone and what are the defaults in our product that should be developed. References: • www.google.com: key word: “marketing strategy of cellular phones” • A:Network Marketing Strategies.htm • A:Reactivating Lost Cellular Phone Customers.htm • A:ComTrue Technologies, Inc_ Products.htm • A:cellphone.htm • A:Search Results for Marketing Strategy.htm • A:Successful Marketing Strategy Goes For What Women Want.htm • A:Cell Phones - Helping Consumer Make Sense of the Market.htm 14