Toshiba laptop

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an economic view for Toshiba laptop, marketing view.

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Toshiba laptop

  1. 1. An Economic View of: Toshiba Laptops Presented by: Presented to: Dr. Doaa Salman Mohamed M.Osman
  2. 2. Outline • Mission, Vision and Goal. • • Social Responsibility o Business to Customer • Executive Summary: o Business to Business o Retail Segment o Pest Analysis Supply and Demand o Market Analysis. • Supply Analysis o Market Share. • Elasticity o Market Type. • Pricing Approach • Cost and Benefit Analysis Positioning • Demand Analysis o Statistical Facts. • • • Findings Our Product • References • Social Responsibility Segmentation, Targeting and
  3. 3. Goal & Vision • Our Goal is to be the best Arab and African Egyptian company in this field by the end of 2014. • Our Vision is to be the African and Middle Eastern leader in the field.
  4. 4. Our Mission • To provide high quality products that incorporate high technology to meet the needs and expectations of our consumers.
  5. 5. Executive Summary About IDC, International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. http://www.idc.com
  6. 6. Environment of the Company
  7. 7. Market analysis • Target markets: we Segmented the market to “B2C, B2B and Retail” • Demographic: High Population, • “Egypt will also benefit from youthful demographics and improving information and communication technology infrastructure” • Geographic: “The geographical location is good for trade, as Egypt has access to both the Mediterranean and the Red Sea” • Behavior factors: Price sensitive but with a high potentiality to buy
  8. 8. Market analysis • Market needs: Innovation and convenience associated with valuable price. • Market Growth: Egypt's computer hardware sales are projected at US$862mn in 2010 and are forecast to reach around US$1.6bn in 2014. Computer penetration is forecast to rise from a little above 10% currently to about 19% in 2014, and annual computer sales could increase to nearly 470,000 by the end of BMI's forecast period. Reference: http://www.prlog.org/10788906-new-market-research-reportegypt-information-technology-report-q3-2010.html
  9. 9. Statistical Facts IDC EMEA PC Tracker Forecast Update Q3 and Q4 2011 IDC, May 2011 FOR INTERNAL USE ONLY Region Country Product Category Middle East & Africa Egypt Notebooks Consumer/Commerc ial (All) Home/SMB/Corp (All) End User Segment (All) Year 2011 Data Quarter Q1 2011 Q2 2011 Q3 2011 Q4 2011 Grand Total Units 67,706 67,740 74,781 79,611 289,838 Value ($M) $79.15 $81.05 $91.66 $95.82 $347.68 Value (€M) €52.89 €54.16 €61.26 €64.04 €232.35 ASP ($) $1,169 $1,196 $1,226 $1,204 $1,200 ASP (€) €781 €800 €819 €804 €802
  10. 10. Market Share
  11. 11. Market Type • Monopolistic competition: • Differentiated product is where the product has options or technology or colors or knowhow, any value added for the product. • Here comes The Positioning: • We are positioning our product in the area of Durability and Security
  12. 12. STP • Segmentation: • Business to Business, Business to Customer and Retail • Targeting: • In B2B we are targeting Banks, In B2C we are targeting loyal customers seeking high end technology, In Retail we are targeting Hyper markets • Positioning: • Durability and Security
  13. 13. Our Product • The diminishing of the PC market shows how the trend leans towards laptops • Although the market of new tablet devices is emerging strongly but still consumers perceive the tablets as a secondary device “as tablets rely on laptops as power and data sources”
  14. 14. Business to Customer Satellite C660-21G
  15. 15. B2C Segmentation: Age: 18 : 40 years old “College students, Gamers, Multimedia and Internet users and IT personnel” Sex: Any Product features: • Core I3, 15.6“ full keyboard, HD 500 GB, 4 GB Ram Satellite C660 1ME Price Q Sold “3700 Total” Satellite C660 21G Price Q Sold “4500 Total” 4666 452 4199 900 4444 461 4099 1043 4299 854 3999 1057 4099 1933 3700 1500
  16. 16. B2C Supply and Demand Supply Demand
  17. 17. Business to Business Tecra M11 Tecra R840
  18. 18. B2B • Here we are targeting Banks and big entities via tenders Segmentation: Age: 30 : 55 years old “Businessmen who are travelling a lot, Managers seeking data protection and light weight laptop, IT personnel on the move” Sex: Any Product features: • Core I7, 13.3“ with finger print security system, HD 128 SSD technology, 4GB Ram Tecra M11 Price Q Sold “750 Total” Tecra R840 Price Q Sold “750 Total” 7000 100 7900 150 6500 250 7500 250 5900 400 6900 350
  19. 19. B2B Supply and Demand Supply Demand
  20. 20. Retail • Satellite C660-1DV 3500 total • Here we are targeting big hyper markets like Carrefour, CompuMe & Hyper 1 Segmentation: Hyper markets that are willing to buy big quantities Product features: • Core I3, 15.6“ Full Keyboard, HD 500 GB, 4GB Ram Price Quantity 2900 1800 2900 1100 2900 600
  21. 21. Retail Demand Curve Retail Retail
  22. 22. Total Demand and Supply Demand Supply
  23. 23. Demand Analysis Demand is affected by below variables: • Innovations • PLC • Promotions. • Competition.
  24. 24. Supply Analysis • Supply is affected by below Variables: • Pros: • No Customs • Cons: • Currency exchange rate • PLC
  25. 25. Elasticity Our Product is Elastic due to below: • Many Substitutes available • Perceived as between necessity and luxury • Isn’t unique in all features • Consumer can easily compare our product with competitors products • Our product is a shopping product “Consumer is comparing, deciding and paying high amount of money and doesn’t buy it frequently” • Price is an indicator of quality by customer
  26. 26. B2C Segment Elasticity Satellite C660-1ME Price Quantity ∆ Price ∆ Quantity Elasticity Description 4666 452 No change No change _ _ 4444 461 .0487 .0197 .40 Inelastic 4299 854 .0331 .5977 18.05 Elastic 4099 1933 .0476 .787 16.5 Elastic Satellite C660-21G Price Quantity ∆ Price ∆ Quantity Elasticity Description 4199 900 No change No change _ _ 4099 1043 .0241 .147 .61 Inelastic 3999 1057 .0246 .0133 .0542 Inelastic 3700 1500 .0776 .346 4.465 Elastic
  27. 27. B2B Segment Elasticity Tecra M11 Price Quantity ∆ Price ∆ Quantity Elasticity Description 7000 100 No change No change _ _ 6500 250 .0740 .857 11.58 Elastic 5900 400 .0967 .461 4.77 Elastic Tecra R840 Price Quantity ∆ Price ∆ Quantity Elasticity Description 7900 150 No change No change _ _ 7500 250 .0519 .5 9.634 Elastic 6900 350 .0833 .333 4.0002 Elastic
  28. 28. Retailers Satellite C660-1DV Price Quantity ∆ Price ∆ Quantity 2900 1800 0 0 2900 1100 0 .482 2900 600 0 .588 Elasticity Description ∞ ∞ Perfectly Elastic Perfectly Elastic
  29. 29. Pricing Approach • Cost Based Pricing Approach
  30. 30. Cost and Benefit Analysis • Profit margin is 25% of total cost • Risk margin is considering the exchange rate of 1 USD at 10 EGP
  31. 31. Total Units 13200 Total Revenue 54591520 AVG Price 4135.721 Basic AVG cost of unit 2922.668 Fixed Cost Rents & utilities 1800000 100 employees * Avg salary 2000 * 6 months Variable cost Shipment $13 per unit Internal Transportation Total cost of units 1716000 78000 38579216 Total Cost Profit AVG Cost of Unit 43673216 10918304 3308.577 Break Even Quantity 1500000 10560
  32. 32. Findings • Market is a Monopolistic Competition. • We need to sell 10560 units to get to the Breakeven point • ROI = 25% which is better that any interest given by any risk free investment • Market Share is 20% which can be enhanced via extending in the Retail segment • Highest profit comes from the B2C segment • Short Product life cycle due to innovations
  33. 33. • Market is open for any new competitors to enter. • Consumers are price sensitive but with a high potentiality to buy. • Price cutting raises the Demand. • Supply Curve follows the Demand curve because we are limited in share from Toshiba headquarters. • Demand is always increasing against the decrease in price which reflects the elasticity of our product.
  34. 34. References • Our internal Sales department • World Fact Book “CIA.Gov” • IDC “private research company” • Central Bank of Egypt http://www.cbe.org.eg/Publications.htm
  35. 35. Supporting Websites • • Ministry of Trade and Industry http://www.tpegypt.gov.eg/Statistics/Electronic_%20Engineering.pdf • • http://www.capmas.gov.eg/ • • General Organization of Export and Import Control http://www.goeic.gov.eg/ • • The World Bank http://data.worldbank.org/country/egypt-arab-republic • • Wikipedia the free encyclopedia http://en.wikipedia.org/wiki/Economy_of_Egypt • • Central Intelligence Agency – The World Fact Book https://www.cia.gov/library/publications/the-world-factbook/geos/eg.html
  36. 36. Social Responsibilities • Masjid “Al Rahman Al Raheem” Salah Salem road, • Built on 2500 square meters • REF: http://www.youm7.com/News.asp?NewsID=127440&

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