Project Management in Marketing Final Report

PRODUCT MANAGEMENT ( VIDEO CONFERENCE)

Personal Statement:

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applied the CIM policies relating to word count, plagiarism and collusion for all

tasks. This assignment/project is the result of my own independent

work/investigation except where otherwise stated. Other sources are

acknowledged in the body of the text and/or a bibliography is appended. The work

that I have submitted has not previously been accepted in substance for any other

award and is not concurrently submitted in candidature for any other award.’

CIM Membership No.
Total Word Count: 8, 175 June 2011
11860681

543- Project Management in Marketing

543 - Project Management in Marketing Membership No. 11860681

TABLE OF CONTENTS

Page

EXECUTIVE SUMMARY ...................................................................................... 1

Product Management (Task Two) ......................................................................... 2
2.1 Critically analysis of findings from the audit ......................................... 2
2.2 Recommendations on improving Product performance ....................... 7
2.3 Critical Assessment of the organization resources ............................ 18
2.4 Project Plan ....................................................................................... 20
2.5 Critical Assessment of the sources of risk from internal and external
perspectives and its’ mitigation ................................................................ 33
2.6 Evaluation of the Operational Implications to the organization if
recomendations are not implemented ...................................................... 37

REFERENCES ................................................................................................... 38

APPENDIX I ........................................................................................................ 39

Brief Background of the Organization ................................................................. 39

APPENDIX II ....................................................................................................... 41

Marketing Audit (Task One) ................................................................................ 41
1.1 Audit of the organization’s approaches to portfolio management ...... 41
1.2 Assessment – how organization can improve the performance of the
chosen product in the context of its overall portfolio................................. 44
1.3 : Key issues identification .................................................................. 46

APPENDIX III ...................................................................................................... 47

Personal Statement ............................................................................................ 47

APPENDIX IV ..................................................................................................... 48

InfoComm exhibition booking form – sample ...................................................... 48

TEAM 220 vs. HDX 700 price & technical comparison - sample ........................ 49

TEAM 220 vs. C40 price & technical comparison - Sample ................................ 50

ii


EXECUTIVE SUMMARY

This report has been prepared to find out issues causing low performance of
TEAM 220 video conference system in the fast growing UAE collaboration
systems market. With the rapid developments in the collaboration technologies,
businesses are more likely to adopt solutions which provide the flexibility of
connectivity, best in class performance and competitive cost of ownership.
The researcher has collected data about past, present & future market trends of
video conference systems through primary and secondary data collection
sources. The information has been analysed and used as a base for developing
recommendations for the improvement in the product performance.
TEAM 220 was introduced in UAE during 2009. The product has excellent
features and a competitive price but its performance has not been satisfactory
due to certain marketing related factors
The proposed recommendations provide and understating of the current external
and internal situation as well as it provides guidelines for developing a plan to
achieve desired objectives.
A project has been planned to launch a penetration based marketing strategy for
increasing the market share of the product by 5% during next 12 months. Project
implementation plan has also been developed including financial budget
following set industry standards of project management and evaluated on
rigorous evaluation methods of marketing project management.
Internal and external sources of risks identified, analysed and mitigation tactics of
such risks have been proposed. Risk management plan and implementation has
also been developed and evaluated.
Organizational resources have also been evaluated and recommendations have
been given for utilizing the resources for performance improvement of the
product.
Operational implications of not implementing the project as per proposed
schedule have also been highlighted for management review and approval.

1


Product Management (Task Two)

2.1 Critically analysis of findings from the audit

According to InfoComm International statistics, Middle East and Africa’s (MEA)
audiovisual market is expected to grow at 13% annually to reach $ 3.15 billion
by 2013 from $ 1.4 billion in 2008. Current market of MEA is estimated $ 2.25
billion by InfoComm experts.

Middle East Africa AV Market
350
Annual Growth in $Millions

300 314

250 262
224
200 190
150 162
140
100
50
0
2008 2009 2010 2011 2012 2013
Years

Figure 1

The largest country by market share is Saudi Arabia with 40% share, followed by
Qatar with 20% and UAE with 17% market share. Further has been explained in
the below country wise market share chart of Pro AV systems in Middle East &
Africa.

2


County wise Market Share of AV
Saudi Arabia ,
120 106.4
100
80
60 Qatar , 53.2 Others, 61.18
40 UAE, 45.22
Saudi Arabia ,
20
40%
0 Qatar , 20%
UAE, 17%
Others, 23%
Saudi Arabia
Qatar
UAE
Others

Figure 2

UAE audiovisual market is estimated to be US $ 45 Million by year 2011. Its’
growing with an average rate of 13% annually since 2008.

UAE Audiovisual Market
20
38%
15
25%
10 22% Market Share %
17.1836
15%
5 11.305 9.9484
6.783 Financial Value of current
0 Market
Vido Control Projection Other AV
Conference Systems Systems systems
Systems

Figure 3

Video Conference Market in UAE:
As shown in the above table, UAE Video conference market is estimated as
USD. 17.18 Millions. The market is divided into 4 sections of Audiovisual
Systems; Video conference systems have majority share of 38% in the overall
systems.

3


HD VC Systems Market

25% HDX 7000
C40
53% Team 220
16%
Other(products & softwares)
6%

Figure 4

As shown in the above table, Video conference market is dominated by Polycom
and others ( other products &Software based services (WEbex, gotomeetings,
etc) TEAM 220 has so only 8% of the market share but there is a big market
which can be exploited by using proper marketing strategies.

The internal audit proves that TEAM 220 has some latest features which are not
been conveyed to the target audience. Below table is elaborates the most
concerned part of the buying decision making factor which are price and
performance.

Price has been considered as an important buying decision making vehicle for
followed by performance. The below figures prove this with reference to detailed
comparison in the attached Audit, this relates to affordable overall cost of
ownership.
On the technical side we conducted to detailed financial & technical comparison
table in the attached Audit. TEAM 220 has higher rating of features compared its
competing products.
Technical comparison by RADAR chart method

4


Competetive Analysis
Price
5

4

Bandwidth 3
Product Quality
Efficiency
2

1 Team 220
0 HDX 7000
C 40

HD Support Performance
Score :
Team 220 : 23.5
HDX 7000 : 17
Userfriendly C 40 : 17.5

Figure 5

Above figure shows some of the unique features which products carries, these
features include;
Findings of the Analysis:

Excellent Performance compared to competing products
Best price than the compeering product of same quality
Full HD support which is unbeatable till yet by competing products.
Bandwidth efficiency has far higher than competing products.

5


Price comparison chart
Team 220 HDX 7000 C 40

$30,000.00
$26,900.00

$25,000.00

$20,000.00 $18,098.00
Price

$15,000.00 $12,974.00

$10,000.00

$5,000.00

$0.00
Video Conference Product Comparison

Figure 6

The above figure speaks well about the pricing advantage of TEAM 220 over its
competition.
The price advantage can be used in following ways to expand the market share
of TEAM 220.
Price has been seen a major concern in the Post recession situation which
can be used in advertising and PR campaigns.
It’s difficult for competitors to reduce the prices at TEAM 220 level due to
their higher costs of manufacturing.
More services can be bundled with TEAM 220 with a little increase in price
which would be difficult to beat by the competition.

Based on above figures we can see that TEAM 220 offers a best value for money
to the customers.

The product has best performing standards using the optimum bandwidth to
support the collaboration.

Team 220 has a clear edge in Price; we have found in the audit as well as in the
above comparison chart the Team 220 has full HD Video capture and delivery
capability

6


2.2 Recommendations on improving Product performance

These recommendations are based on the internal Audit and critical analysis of
the findings.

Objectives:

Audiviz has not set clear revenue targets for TEAM 220 over the past years.
Having no clear marketing objectives have resulted lower sales of the product.

The objectives for the TEAM 220 for next one year are following;
Increase product market share from current 6% to 11% over the period of
next 12 months.
Enhance the channel effectiveness and develop new channels to reach all
target segments.
Increase the sales revenue by 12% over next 12 months from current $
780,000 to $ $ 850,000.
Increase product awareness in the target market by 25% over next 12
months.

7


2.2.1 Marketing Strategy

Given the current situation based on finding from the market Audit. Market
Penetration strategy will be adopted to achieve set marketing objectives.
Marketing tactics would be used to implement the penetration strategy;
Team 220 Growth Matrix
Business Unit Strength

High Medium Low

High Medium corporate Small corporate Large corporate

Medium Education Legal services healthcare

Low Construction Semi Government Government

Table 1
SOURCE: David J. Collis, Andrew Campbell, Michael Goold, Harvard Business Review on Corporate Strategy (Harvard
Business Review Paperback Series)
http://www.quickmba.com/strategy/matrix/ge-mckinsey/

The above growth matrix shows some segments which have potential for TEAM 220.
The company should target these segments with the right marketing mix and other
marketing tactics.

2.2.1.1 Segmentation
Product specific segmentation to reach the target market of
TEAM 220 as the product caters to specific need of a team
meeting environment within an organization. Recent
increase in the volume of small and medium size businesses

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have expanded segments of Video conference potential
customers.
2.2.1.2 Targeting
Undifferentiated targeting strategy will be used to target the
market. TEAM 220 can be used across various industries
and market segments. This can be in an educational institute
or a branch office of a company, or a meeting room of a
business centre.
2.2.1.3 Positioning
TEAM 220 has not been positioned properly in past. The
redefined positioning will be based upon its excellent
features and economical price along with other benefits
which makes it an ideal product for the target customers.

9


TEAM 220 Re- Positioning Perceptual map

High Price

C 40

HDX 7000

Low Quality TEAM High Quality
220

Others

Low Price

Figure 7

The Above repositioning perceptual map clearly shows the quality and price
advantages of TEAM 220 against its competing products which were not used in
the communication campaigns for the product.

2.2.2 Marketing Mix
2.2.2.1 Product
Product TEAM 220 has been developed to meet the growing
needs of high definition video conference system which can
perform on a small bandwidth on internet.
2.2.2.2 Price
As shown in the price comparison table of attached Audit,
TEAM 220 offers best value for money to its customers.

10


2.2.2.3 Place
Channel expansion is critical to achieve the desired
marketing objectives of TEAM 220 recommended plan.
Existing channel partners have limited reach to all target
segments hence new partnerships have to develop to reach
all potential segments. Digital distribution channel can be
added to extend the reach to the SOHO segment which may
not be focus of the channel partners.

.
2.2.2.4 Promotion
Promotion is the strongest factor lacking in the current
marketing mix of TEAM 220. Promotion can be done by
using few of following promotion media
• Participation in Gulf Information Technology
Exhibition (GITEX), The Largest IT exhibition in the
Middle East which will be organized in September
2011.
• Channel partners sales promotional activities would
be initiated by offering bundle prices and incentives
over achieving a specific purchase value.
• Digital promotion channels will be used to run
sponsored ads on Google.
• Search engine optimization will be done for Google,
yahoo, and bing to generate more leads.
2.2.2.5 People

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TEAM 220 is service mixed products hence people involve in
the transaction have to be trained to serve the customers
better.
• Sales, customer service employees to be fully train on
all commercial as well as on few technical aspects of
the product to explain it better. Same applies to the
staff of channel partners who would be facing end
users most often, extensive trainings to be conducted
for enhancing the peoples’ skills.
• Technical support employees of the company as well
technical teams, installation teams of the channel
partners to be provided with extensive product
trainings on quarterly basis.

2.2.2.6 Process
The process of product delivery and installation and
commissioning are the points of a service encounter which
builds the rapport of the service provider in mind of the
company.
• Audiviz will strive to improve the process of product
delivery, installation and commissioning. The channel
partners commissioning teams will be equipped with
training to improve the efficiency of delivery.

2.2.2.7 Physical evidence
Audiviz will make sure that all Installation and testing tools
as well as other technical equipment will be provided to the
technical teams for delivering the service within promised
time frame to achieve higher customer satisfaction.

12


2.2.3 Communication Strategy
Push communication strategy will be used to reach the target
audience through various media vehicles;
• Below the line advertising- Trade magazines, research
articles
• Participation in Trade show i.e. INFOCOMM Middle East
during GITEX, the largest IT exhibition in the Middle East.
• Digital media advertising – Facebook, Linkedin, search
engines
• Free Video conference sessions: to give a touch and feel
message to the trade visitors during the exhibition.

2.2.4 Cost & Benefit Analysis

The proposed recommendations have certain associated financial and non
financial costs which have to incur to gain financial and non financial benefits
during the project duration and in the long run.

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The cost and benefit analysis is shown in the below table:

Costs
Cost of resources invested in the proposed Possible reduction in the sales revenue due to lack
recommendations. of marketing activities.

Internal and external cost of employing resources to Slow growth of the product in a fast growing market
execute the project. will reduce the market share of the product.

Expenditure on training and development of the Lower awareness of the product as well as
employees during the project. company’s other services.

Opportunity cost of the time which employees will Weaken relationship with channel partners due to
spend in the project related activities and slow response and less marketing focus compared
arrangements of their alternatives during the to the competition.
proposed period.
Opportunity cost of not implementing the project as
Increase in revenue of other portfolio products due recommended by the researcher.
to awareness among the customers about the

Non-Financial
Financial

services of the company.

Increase in revenues will increase the profit of the Increased credibility among the suppliers due to a
shareholders. better position in the market.

Increase in the revenues will result into increments Identification of any loop holes to ratify in due course
for employees.
Identification of challenges and preparation of
Increased revenues will lead to new markets solutions according to the
development.
Increased service quality due to employees’
Strong financial position will increase the confidence trainings will improve the productivity.
of the investors and lenders to provide more funds
for expansion to new markets. A better understanding of competitors’ activities and
their strengths as well as weaknesses.
Expansion in the distribution channel will open more
markets. Identification of the actual position among the

14


competition will help to set up growth plan for future.
fo

Benefits

2.2.5 Revenue Projection
The above made recommendations will help the company to
increase the market share of TEAM 220 by approximately 5%
within the existing markets by year 2012. A rigorous forecast of
.
revenue growth is given below.

TEAM 220 Revenue Growth
Growth(Actual + Projection) Table
Actual Forecast
Year 2009 2010 2011 2012
revenue $730,000.00 $780,000.00 $850,000.00 $1,030,000.00
Gross Profit $219,000.00 $234,000.00 $255,000.00 $309,000.00
Yearly Growth
Rate (%) 6% 9% 18%
Table 2

Actual Performance Table for 2009 ~ 2010

TEAM 220 Past revenue
$780,000.00
$730,000.00

$800,000.00
Annual Revenue and profit

$600,000.00

$400,000.00 $234,000.00
$219,000.00
revenue
$200,000.00
Gross Profit
$0.00
2009 2010

Year

Figure 8

The above Table shows the previous two years product revenue and growth in
the profits.

15


TEAM 220 Revenue forecast for 2011 & 2012

TEAM 220 Sales Forecast
$1,200,000.00

$1,030,000.00
$1,000,000.00 $850,000.00
$800,000.00
$600,000.00
$309,000.00 revenue
$400,000.00 $255,000.00
Gross Profit
$200,000.00
$0.00
2011 2012

Year

Figure 9

The revenue forecasts shown in the above table are based on the rigorous
analysis and research as well and it has a direct relation with the proposed
project to increase the awareness of the product and expand the distribution
channels of the product which will run for 12months starting in June 2011.
will

With reference to detailed Audit in the Appendix II, it has been analysed to make
recommendation for improvement in the sales performance of LifeSize Team 220
through adoption of marketing tools. Following the below steps will improve the
below
performance of TEAM 220 in the UAE market

The company should do following activities to increase the market share and revenue of Team
200 product along with other products in the portfolio.
Lunch aggressive channel expansion campaign
Product demonstrations and road shows at several occasions.
Promotional campaign to increase product awareness in the target market

Re define the product marketing strategy
Repositioning the product with a new positioning strategy based on STP ap
approach
16


Developing a marketing oriented culture to support the growth in
Improving channel performance with training and support
Road Shows and live demo Kits to be provided to channel partners at cost to cost basis.
Expanding the existing channels and removing any barriers to entrants
Launching channel support initiatives
Developing Key account management concept to strengthen the relationship with the
channel partners.
After Sales services improvement.

17


2.3 Critical Assessment of the organization resources

Resources are pre requisite for initiation and success of the proposed product
management project. Below table explains the resource requirements for the
proposed recommendations.

Human Resource

Project Sponsor, Project Manager, Project Event management company organize the
Facilitator and Project team. building of stand during the exhibition

Project team would consist of people from Channel partners sales force, customer
Marketing & Sales department, support staff to execute promotion
Operations, Finance, Customer Services campaigns.
department.
Few customers to collect their feedback
Project team would require some support about the project, awareness campaign
from their colleagues to provide back up and the product.
during their absence from their desk.
Training consultants to train the internal
Management to provide required support sales force.
to the team in running the project
successfully. Training consultants for the training of
customer services department staff.
Staff to be trained about developing their
marketing skills to run promotional Female models to assist visitors during the
campaigns. exhibition

External
Internal

Additional office space required for project Studio rental to conduct press releases
team to manage the project activities. about the product

Meeting room to conduct meetings Advertising agency to create promotional
materials and brochures for the project and
Facilities to store project related materials, channel partners
advertising materials, demo units.
Printing of brochures, other advertising
Computers, IT support, Software, mobile materials to be used for the project
phones for the new team members.
Delivery arrangement for promotional
Telecommunication services, like Instant material and demo kits to channel
messenger, email services on mobile partners/customers by courier or higher
phones for all team members to stay in packer/removing company/own vehicles
touch with other colleagues and response
instantly if required Liability Insurance for project team and the
equipment.
Data mining facility for the team from the
company data base. Vehicles for project team members who

18


are not having own vehicles during their
special assignments

Non –Human Resources

19


2.4 Project Plan, Implementation & Evaluation

1. Project Introduction

The project has been initiated to increase the market and revenue share
of TEAM 220 video conference system.

2. Project Organization – Project Team

Project Team consists of following members within the company;

Project Sponsor: Manoj – General Manager
Project Manager: Zafar – Channel Account Manager
Project Facilitator: Marj – coordinator
Project Team members:
Perfecto – IT support
Suzee – HR Manager
Sunil – Financial Controller
Vinod - Operations Manager
Von – Graphic Designer
Thomas – Sales Manager
Rijoy – Service coordinator

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Project
Sponsor

Projec t
Manager

Projec Facilitator

Team Team Team Team
Team Team Member - Team
Member- Member- Member - Member -
Member - Rijoy Member - Von
Suzee Sunil Perfecto Thomas
Vinod

2.1 Roles & Responsibilities
2.1.1 Project Manager: Zafar
Project manager will initiate the activities and successfully implement
the task including;
i. Identify, track, resolve project issues
ii. Disseminate project information to the team and other
stakeholders
iii. Manage implementation of the tasks and make sure that
deadlines are not ignored.
iv. Define the progress of project during scheduled project update
meetings.
v. Manage overall project activities within the specified budget.

2.1.2 Project Facilitator - Marj
i. Support the project manager in all the activities related to
project.
ii. Liaise with all team members and keep them updated about the
developments in all stages of the projects
iii. Coordinate with suppliers for procurement and supply of
equipments and other materials required for the project.
2.1.3 Project Team Members
i. Suzee: HR Manager – To support the project manager in
allocation of human resources for various project tasks.

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ii. Vinod: Operation Manager - Arrange for logistics and other
support required for delivering goods to channel partners and
organizing events for product promotion.
iii. Perfecto – IT support – Update company website and social
media sites about the developments in the project. Arrange for
IT support to the project team.
iv. Sunil – Financial Controller – review and manage the financial
resources of the project, control payments to supplier, take
necessary approvals from the G.M ( Project Sponsor)
v. Von – Graphic Designer – Design brochures, POS materials,
product data sheets, compile technical comparisons.
vi. Thomas – Sales Manager – Invite existing channel partners to
events, take market intelligence about competitors’ movements
during all the stages of the project.
vii. Rijoy – Service coordinator – Upgrade CRM database about
the new inquiries received from vendors, take customers
feedbacks about the product performance and provides required
support to the project team.

3 Project Planning & Design
3.1 : Project scope & objectives
The scope of the project is to improve the performance of TEAM 220
video conference system in the UAE market.
Objectives of the project are following;
i. Increase market share of TEAM 220 by 5%
ii. Increase Sales revenue by 12% in next 12 months
iii. Increase product awareness by 20%

3.2 : Project duration
i. Project Duration : 12 months
ii. Start Date: June 10, 2011
iii. Completion Date : June 9,2012

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3.3 : Project deliverables
i. Developing and execution of the marketing strategy to increase
the performance and market share growth of TEAM 220 Video
conference systems.
ii. Marketing tactics will be divided into small tasks to complete the
big picture project objectives.

3.4 : Project management methodologies
Project implementation will be managed by Openproj software and
controlled by Gantt chart application.

3.5 Project Resource requirements
Please refer to Task 2.3 for where detailed resources requirements
have been explained. The financial resources required for project are
explained under Project Budget heading 3.8.

3.6 Project constraints
Marketing Project would be having some constraints in terms of its
scope and deliverables. The project requires full implementation based
on duration give above to deliver set objectives.

3.7 Potential Risks
Risk Management & Mitigation of those risks of internal and external
nature and their mitigation haves been evaluated in the task No. 2.5

3.8 Project Budget
The project budget is based on percentage of sales method. The
researcher has proposed approximately 8% of year 2010 sales revenue
of TEAM 220 to be utilised for marketing project.

Project Budget: $ 62,000.00
Contingency: $ 5,000.00

Project Budget for Product Management

Project Duration: 4 Q1 (June - Q2 (Sept- Q3 (Dec- Q4 (March-
Quarters Aug 11 Nov 11 Feb-12) May 12) TOTAL
Public Relations
PR Firm $ 500.00 $ 500.00 $ 1,000.00
Press release wire fees $ -
Review Program $ 300.00 $ 300.00 $ 600.00
Analyst
subscription/reports $ -
Press tour(s) $ -
TOTAL Public
Relations $ - $ 800.00 $ 300.00 $ 500.00 $ 1,600.00

23


Web Marketing
Online advertising
creative $ -
Google Ads program $ 400.00 $ 400.00 $ 800.00
Search Engine
Optimization (SEO) $ 1,000.00 $ 300.00 $ 1,200.00 $ 2,500.00
Website
development/updates $ - $ - $ -
TOTAL Web
Marketing $ 1,400.00 $ 300.00 $ 1,600.00 $ - $ 3,300.00

Advertising
VAR/Channel
advertising $ 1,500.00 $ 500.00 $ 1,000.00 $ 500.00 $ 3,500.00
TOTAL Advertising $ 1,500.00 $ 500.00 $ 1,000.00 $ 500.00 $ 3,500.00

Collateral
Data sheet $ 150.00 $ 300.00 $ 450.00
Brochure $ 300.00 $ 1,200.00 $ 200.00 $ 200.00 $ 1,900.00
White Paper $ 400.00 $ 400.00
Web Content $ 600.00 $ 300.00 $ 900.00
FAQs $ - $ -
Training materials $ 400.00 $ 350.00 $ 200.00 $ 200.00 $ 1,150.00
TOTAL Collateral $ 1,850.00 $ 1,850.00 $ 700.00 $ 400.00 $ 4,800.00

Events (GITEX
Exhibition)
15 SQM shell space
with 2 sides open $ 7,233.00 $ 7,233.00
Travel expenses $ 1,000.00 $ 1,000.00
Booth Signage $ 300.00 $ 300.00
Telecommunications
Rental $ 450.00 $ 450.00
Refreshments $ 250.00 $ 250.00
Invitations $ 150.00 $ 150.00
Lunch - Dinner for
channel partners $ 1,200.00 $ 1,200.00
Give Away, promotional
items $ 800.00 $ 800.00
TOTAL EVENTS $ 7,233.00 $ 4,150.00 $ - $ - $ 11,383.00

Direct Marketing
Campaigns
Creative development $ 100.00 $ 100.00
Emails to trade visitors
during exhibition $ 300.00 $ 300.00
Emails to existing
customers $ 200.00 $ 200.00
TOTAL Direct
Marketing Campaigns $ 300.00 $ 300.00 $ - $ - $ 600.00

Channel Marketing
Programs

24


Cost of Demo Units to
be provided to Partners $ 16,000.00 $ 8,000.00 $ 24,000.00
Channel Partners Sales
Force Training $ 3,000.00 $ 2,500.00 $ 2,500.00 $ 8,000.00
Road Show shared with
channel parnters $ 1,500.00 $ 1,500.00 $ 3,000.00
$ -
$ -
Marketing programs
with retail partners $ 1,000.00 $ 800.00 $ 1,800.00
$ -
TOTAL Channel
Marketing Programs $ 21,500.00 $ 10,500.00 $ 4,800.00 $ - $ 36,800.00

Q1 (June - Q2 (Sept- Q3 (Dec- Q4 (March- % of
SUMMARY Aug 11 Nov 11 Feb-12) May 12) TOTALS TOTAL
$
Public Relations $ - $ 800.00 $ 300.00 $ 500.00 $ 1,600.00 0.03
$
Web Marketing $ 1,400.00 $ 300.00 $ 1,600.00 $ - $ 3,300.00 0.05
$
Advertising $ 1,500.00 $ 500.00 $ 1,000.00 $ 500.00 $ 3,500.00 0.06
$
Collateral $ 1,850.00 $ 1,850.00 $ 700.00 $ 400.00 $ 4,800.00 0.08
Events (GITEX $
Exhibition) $ 7,233.00 $ 4,150.00 $ - $ - $ 11,383.00 0.18
Direct Marketing $
Campaigns $ 300.00 $ 300.00 $ - $ - $ 600.00 0.01
Channel Management, $
and development $ 21,500.00 $ 10,500.00 $ 4,800.00 $ - $ 36,800.00 0.59
TOTALS $ 33,783.00 $ 18,400.00 $ 8,400.00 $ 1,400.00 $ 61,983.00
% of TOTAL 0.545036542 0.296855589 0.13552103 0.022586838

Important Budget Highlights:
60% of the budget will be spent on channel
1 management & development.
2 20% of budget will be spent on the GITEX exhibition
20% of the budget will be spent on other marketing
3 activities
Table 3

4 Project Implementation schedules

4.1 : Implementation schedules;
Below attached Gantt chart explains the implementation schedule of the
project over the planned time.

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26


27


28


29


Figure 10
Note: Gantt chart has been printed using MS office one note, it has been
prepared using openproj software which doesn’t support the printing to
a word document. All 15 pages (3.56MB) couldn’t be attached due to
4MB maximum file size limitation by CIM. All pages attached to hard
copy of the report.

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5 Project Termination and Evaluation
5.1 : Project Termination Decision
Upon the completion of the duration, the project will be terminated and
project evaluation will be conducted by the project manager.
5.2 : Project evaluation
5.2.2.1 Direct method of evaluation
Direct evolution method quantifies the changes occurred due
to implementation of the project.
Increase in Sales Revenue: Sales revenue can be measured over the
period of project duration. Sales can also be compared to last year’s
growth rate+ average sales over the years compared to the year of
project.
Cost – Benefit Analysis:
Another direct method of evaluation where cost of a project is deducted
from the benefit of the project
Cost of TEAM 220 Projects: (C) $ 62,000
Projected Profit from the project for 2011: (P) $255,000
Profit = (P - C): Profit: 255,000 – 62000 = 193,000
Projected NET Profit after for year 2011 = $ 193,000.00

5.2.2.2 : Indirect method of evaluation
Increase in Customer Inquiries:
Increase in the number of inquires shows a sign of increased awareness
among the target markets. The customer inquiries will be routed through
channel partners.
Profitability margins:
Change in profitability is a result of change in the sales revenue. This can
also be a measure of project implementation.

31


5.3 : Potential Growth Forecast
Potential growth forecast for TEAM 220 is given in below table:

TEAM 220 Sales Forecast
$1,200,000.00

$1,030,000.00
$1,000,000.00 $850,000.00
$800,000.00
$600,000.00
$309,000.00 revenue
$400,000.00 $255,000.00
Gross Profit
$200,000.00
$0.00
2011 2012

Year

Figure 11

The researcher has rigorously estimated the forecast of the sales during
and after the implementation of the project. The Project will start at end
of 2nd quarter of 2011 and will finish by end of 2nd quarter of 2012.

32


2.5 Critical Assessment of the sources of risk from

internal and external perspectives and its’ mitigation

2.5.1 Risk Identification
Risk is the defined as the probability of a threat which can cause damage to an
activity and affects the ability of an organization to achieve its objectives.
There are mainly four types of risks involved in the projects.

i. Performance Risk
Performance risk is also known as quality or technical risk. This risk is
mostly associated with technological products and services. the
probability of performance risk occurrence with the TEAM 220 project
is moderate but not major because the product has been tested and
evaluated by the manufacturer as we as by the Audiviz Team.

ii. Project Management Risk
Project management risk occurs when project planning, resources and
schedules are either not prepared or not being implemented.
The project management in the TEAM 220 project is minor as the
project implementation is under control of the project manager and
implementation team is being closely observed by the project
manager.
iii. Organizational Risk
The organization can cause risk to the project by poor planning of
funding, delays in release of funds or lower priorities of project during
funds imbursement. The organizational risk can be seen as a major
risk for the project TEAM 220, accurate planning has been done and
project management team would make sure that supplies of funds
keep its flow running during project duration.

iv. External Risk
External risk is a major risk during the project. This risk is caused by
external sources, either competitors or by another party without an
intention to harm, changes in broader macro environment and industry
may cause some risk, mitigation of this risk can be done by identifying
it timely. Marketing intelligence to be regularly collected to and
competitor environment has to be regularly analysed by the marketing
team to find sources of external risk and mitigate them.

33


Risk Probability and Impact Rating

Probability of Impact of the
Occurrence risk
Description Risk Description Risk
Rating Rating
Almost certain 5 Catastrophic 5

High 4 Major 4
Moderate 3 Moderate 3
Unlikely 2 Minor 2
Rare 1 Insignificant 1
Table 5

2.5.2 Risk Analysis
Risk analysis has been carried out by using Fish Bone Analysis method.

Fish Bone Analysis:

Knowledge
Compliance

Communication

Tools & Implementation
Techniques
Failure of
the Project

No expertise Commitment
Inadequate
skills

Operation
al risk Strategic risk

Figure 12

34


2.5.3 Risk Mitigation

Risk Managements Table
Risk Identification, Analysis and Mitigation
Risk Impact + Rating Prob Ratin Causes Mitigation
( 1 - 5) abilit g (1-
y 5)
Of
occu
rren
ce
1 No full-time project Project delivery Project team Project team members would
team to deliver all may not be members still have be motivated to work with
tasks before the adhered to the their regular job tasks plan and inform the project
deadlines. planned date (5) to be performed along manager for any urgent task
5 25
with the project tasks. they prioritize upon the
Assigned task may project schedule
not be completed
according to schedule.
2 Lower response May drop the moral Distributers have not Convincing the channel
from the channel of project team (3) introduced the culture partners’ management about
partners bout the 5 15 of providing trainings the benefits of higher sales
marketing initiative to channel partners’ after the staff training.
and training staff.
delayed release of reduces the pace delay in cheques sign Financial control to keep the
payments to task scheduled process or banks reserve funds for project
suppliers resulting plan as well as clearance of account related payments to
in delayed overall project receivables due to an suppliers for smooth activity
3 12
deliveries of growth (4) external factor processing.
Project related
equipment,
material
3 Late deliveries of Channel partners Delayed bank Purchase order only
orders to channel would be more transfers and cheque acknowledged once the
partners due to likely to abstain clearance hence advance payment received,
delays in imported refrain from 4 16 making the order All P.Os to be acknowledged
goods delivery ordering in future process slow only after payment receipt.
unless sure about
stock. (4)
4 Slow product more likely to affect Engagement of All service calls to be
repairing and repeat purchases customer support staff entered into database with a
service requests from existing 4 12 with ongoing projects clear deadline to be met
response customers (3) due to manpower using all possible means
shortage.
5 Lack of less interest in This may be caused HR Manager to keep
Commitment project related due to some other information about any
among team tasks assigned to 4 16 internal issues within ongoing issues and provide
members them (4) organization support to team members for
resolving such issues

35


6 Lack of direct impact over caused due to work Project facilitator to make
communication the project load of regular duties sure the messages have
among team progress and been delivered to right
members assigned task 3 9 people by employing 'read
completion (3) receipts' while sending email
and other web based
communication
7 shortage of product delayed delivery to stock shortages due
stock channel partners to unexpected sales
and negative 2 6 or delays in the import new orders to be placed
impact on rapport ( shipments immediately when stock level
3) decreases till reserve stock
8 Employees turn directly affecting Better job HR manager to take quick
over during the the project activity if opportunities available action by offering equal
project activity the team member with other incentives to employees or
4 20
has been assigned organizations that higher a suitable person
the role in the may attract the before the employee leave
project (5) employees. the organization.
Table 6

36


2.6 Evaluation of the Operational Implications to the

organization if recommendations are not implemented

The above project would cause following implications if not implemented as
proposed;

i. Decrease in Product Market Share
As analysed in attached audit in the appendix, market share for
TEAM 220 has grown slowly over the past two years. Development
of a new technology will reduce the market share causing to phase
out gradually.

ii. Decline in marginal revenues
The competition has not yet been able to develop solution which
provides same quality with competitive price of TEAM 220, If
competitors develop such product, it will directly affect the marginal
revenues of TEAM 220.

iii. Lower product awareness
The project will increase the brand equity and product awareness
among stakeholders. Delays in implementing the project will have a
negative impact over the product awareness.

iv. Weak position among the competition
Project implementation will enhance the image of company
compared to its’ competitors due to a stronger product, delays or
cancellation of the project will keep the company in the weaker
position among the key competitors.

v. Employees development
The project team in particular and other employees in general
would get motivation due to implementation of the project as
success of the project will result into increments and bonuses for
them, cancellation of the project may decrease the morale of the
employees.

37


REFERENCES

McKee. F., Cox,E., Housden, M., & Parkinson,L., 2009, Project
Management in Marketing. Butterworth-Heinemann, Oxford, UK.

Magicks, P, Donnally, R. & Harrison, G., 2009, The Marketing Planning
Process. Butterworth-Heinemann, Oxford, UK.

Kotler, P., Keller, K.L., Koshy,A., Jha, M.,2009, Marketing Management.
13th Edition, PESRSON, Delhi, India.

InfoComm International, January 2011, Economic Snapshot survey, New
York, USA.

LifeSize Product Comparison, 2011, LifeSize Corporation, IL, USA.

Videoconferencing industry report, February 2011, Weinhouse Research
LLC, New York, USA.

Fishbone, 2004, available at :
http://www.ibm.com/developerworks/lotus/library/fishbone/ (accessed on 20-
May- 2011)

Beattie, M., Austin, S., Priest, K., 2010 Asia Pacific Market Forecast &
Provider Review, Weinhouse Research LLC, New York, USA.

David J., Andrew C., Michael G., Harvard Business Review on Corporate
Strategy (Harvard Business Review Paperback Series) available at:
http://www.quickmba.com/strategy/matrix/ge-mckinsey/ (accessed 15-05-
11)

38


APPENDIX I

Brief Background of the Organization

Introduction
Audiviz Technologies is an audiovisual systems integrator based in Dubai, UAE.
Audiviz is a privately held business established in year 2002, since inception.
Corporate office is in Dubai and a branch in Abu Dhabi UAE. Audiviz has completed
more than 700 systems integration projects since 2002.Audiviz specializes in
ystems
audiovisual systems, and has done some high profile projects in recent years.
Management Structure
The company operates on a function structure. Business is run by General Manager
who acts as a CEO while Managing Director (President) is the owner of the
business.

Customer Base
Audiviz has been serving customers from Government, corporate, hospitality,
military, Oil and Gas, Education and financial services sectors. It has built a credible
reputation among these sectors. Audiviz channel partnerships are with several ICT
(Information and Communication Technologies) who serve major and smaller
customers across the county.
As company operates in Business to Business environment, it targets qual quality
conscious corporations who strive to create a difference from their competitors even
in terms of audiovisual systems design and implementation. Bringing latest
technology for customers has always been a goal of the management. The latest
technology offering differentiates Audiviz from its competitors.
ering
Position in Market
Audiviz positions itself as a Value added distributer and premium integrator with a
philosophy of serving customer needs with suitable technology. Today, Audiviz is
known as one of leading audiovisual systems distributer in the country. The market
ing
leader takes around 35% of the market share while Audiviz has approximately 13%
market share. Audiviz stays ahead of many competitors due to its well trained and
experienced workforce. The Team includes some of the best project managers,
Engineers, and technicians in the country. They are certified from industry bodies
39


and leading manufacturers’..I.e. InfoComm International, Crestron, Extron,
LIFESIZE, BOSE, etc.
Industry Memberships:
Audiviz is a certified member of Infocomm International;
InfoComm International® is the leading non-profit association serving the
professional AV communications industry worldwide. Founded in 1939, the
association offers industry expertise and market research serving press and others
seeking information about the industry
Services
Audiviz provides following services;
A. Systems Distribution

Audiviz provides systems distribution to UAE market. Major focus of products is
on Projection equipment, Video conferencing equipment, and sound systems.

B. Systems Integration

Systems integration highly depends upon the skills on technical team. With some
of the well known and certified people on board, Audiviz has been involved in
some of the high profile projects over the past few years. There is lot of design
work involved in integration and company has resources who meet the lead
consultant’s requirements in terms of providing wonderful designs. Audiviz
integrates following systems

C. Maintenance and Service

The company offers comprehensive programs to its customers for systems
maintenance support. Guaranteed uptime of technology, hardware /software repair
are part of the maintenance service. The support service is not only for company’s
own clientele but also for competitors’ clients who want to change the vendor. Many
new accounts have been won due to excellent service being offered by Audiviz.
Ensuring that presentation equipment delivers maximum reliability and optimum
performance are the daily targets of support team

40


APPENDIX II

Marketing Audit (Task One)

1.1 Audit of the organization’s approaches to portfolio management

1.0 PEST ANALYSIS

Political Economical

Stable Political situation compared with other Reduced corporate budgets post recession.
Regional courtiers. Businesses closures during recession
Government initiatives for technology adoption Reduced lending available to businesses
Government initiatives to expand the technology Global stock markets impact.
Infrastructure. Growth in business start ups – services sector
Impacts of global political developments Exchange rate fluctuations
Low interest rates and inflation

Social Technological
Wise spending methodologies are being adopted UAE has 23rd ranking on Global IT acceptance
Trends to develop price based buying models Report after Belgium and ahead of Ireland.
Recession created ‘value-focused’ buyers High speed IT infrastructures (Fibre optic based)
Go green initiatives by social groups Low IP based communication solutions
An expansion in usage of internet over past few E-marketing developments (customers & users)
Years’ shows the changing social trends.’ Online purchasing making buying easier
Reduced life cycle of technological products
Increased rate of technological upgrades and
Replacements.

2.0 PORTERS 5 FORCES: Industry Analysis

Threat of New Entrants (Low Risk) Supplier bargaining power (Low Risk)
Developments in services offerings from Telecom OEM manufacturing
Services Providers. Higher technological involvement
Tough procedure of qualification Some vertical integration via acquisition
Credibility is an important factor of selection
Cheaper manufacturing in China, India etc

Competitive rivalry in industry (High Risk) Customer bargaining power(High Risk) Threat of substitute (High Risk)
Strong, capable rivals with good track record Alternatives products are of lower cost and quality Lower cost/quality alternatives available
Long presence. Difficult t switch from one brand to another Greater availability/comparison via web
lower quality brands also available Developing retail market for HD cameras segments Conferencing services.
Pro-active competitor investing in marketing Economic downturn increasing customer Movement to mobile based 3G services
Online buying making price comparisons easier Promiscuity Price.
Similar dist. channels so substitution possible

41


3.0 Industry SWOT Analysis

Strengths… Weaknesses…
Research & Development based organization focusing on innovation Weak direct distribution channel to end users
Full HD support with minimum bandwidth requirements Intermediaries between distributor and end user (+ high involvement product)
Competitive prices in the industry Poor marketing of product features to the target segments restricting high sales
Superior user experience during the conference Small turnover restricting marketing budgets
Product range can meet the needs of the target segments Confusion over current & future direction of business due to economic melt
Selling point of being low cost than competing brands of same quality Down.
Reduced costs due to economies of scales Low response levels during previous campaigns
Little differentiation between physical appearance of other product offerings
Perceptions of ‘ ‘ low quality brand’ due to competitive pricing
Competitors’ propaganda against the quality vs. Low prices

Opportunities… Threats…
More than 25,000 small and medium sized prospective customers in UAE. HD capable web based conferencing can cause damage.
Business are more interested to adopt cost efficient systems due to impacts More aggressive competitors’ strategies to counter the LifeSize expansion plans
2009 recession. Huge marketing budgets of competitors who have larger market shares.
Opportunities to expand the market share by an aggressive penetration Competitors enjoy rapport with in the target markets due to long presence.
Supported by marketing efforts. Higher market spends from the competition especially TANDBERG
Expansion in the distribution channels can increase the reach to many Reduced funds for new technology adoption in some segments (Real Estate)
Target segments. Competitive pressures & marketing spend from Cisco for TANDBERG
Number of new start ups /branch offices increased compare to 2009 Increasing rate of android based mobile apps and services offered to attract
Numbers. New prospects by 3G mobile video calling service providers.
Lower equipment prices help the customer decision making process
Effective use of digital marketing can increase the customer awareness

4.0 Product Competitive Analysis

Product Features & Price Comparison Table
S. LifeSize Polycom HDX TANDBERG
No Product Futures Team 220 7000 C40
1 Video Modes:
1.1 1920x1080p 30fps Yes Yes Yes - Option
1.2 1280x720p 60fps Yes Yes Yes - Option
1.3 1280x720p 30fps Yes Yes Yes
1.4 Dual Stream @1280x720p 30fps Yes No Yes
1.5 Spatial resolutions >200 9 13
Bandwidth Utilization/efficiency 1080p
2 30fps 1700 kbps >2500 Kbps 2500kbps
2.1 720p 60fps 1100 kbps 2048 Kbps 2200kbps
2.2 720p 30fps 768 kbps 1728 Kbps 1792kbps
1280x720p 704x480p
2.3 resolution @ 768kbps 30fps 30fps 720x480p 30fps
2.4 Max. bandwidth point to point 6 Mbps 6 Mbps 6 Mbps
3 Multipoint (MCU) Participants 4 CP 4 CP 4 CP
3.1 1080p 30fps Yes No No
3.2 720p 60fps Yes No No
3.3 720p 30fps Yes Yes No
4 way @ 2 4 way @ 2 4 way @
3.4 Max bandwidth per CP participant Mbps Mbps 2.5Mbps

42


4 Transcoding video/audio Yes Yes Yes
5 Custom layouts for each participant Yes No No
6 H.460 Yes Yes Yes
7 HD Multi camera HD Yes Yes Yes
8 Multi display Yes Yes Yes
9 MSRP Hardware $11,999.00 $12,999.00 $16,900.00
10 Options:
10.1 HD Audio Speakerphone Included $1,000.00 Not Available
10.2 Software Included $3,099.00 $8,200.00
10.3 1 year support $975.00 $1,000.00 $1,800.00
11 End User Selling Price (MRSP) $12,974.00 $18,098.00 $26,900.00
Source.LifesSize comparison documents – sample attached in appendix IV

5.0 Product SWOT Analysis

Strength Weaknesses
Team 220 has latest Full HD video capturing and Poor product positioning
delivery Core features driven strategies rather than value
The product performs better than the competing addition
products Lack of marketing activates and procedures
The prices are competitive than the competitors resulting in
which Lower revenues against the competition.
Gives an edge of ‘being affordable for many’

Opportunities Threats

Market has good potential for high quality product Web based video conference services
with an affordable initial investment Offered with HD cameras.
Development of technology is leading people to consider reduction from the competitors
Price
Growing market of collaboration systems
Expanding customers segments creating many
opportunities.

6.0 PORTFOLIO ANALYSIS

Stars Question Marks

Projection Systems Video Conference Systems ( TEAM 220)
Build selectively

Cash Cows Dogs

Other AV systems Control systems

43


1.2 Assessment – how organization can improve the performance of the

chosen product in the context of its overall portfolio

Audiviz Technologies is a leading audiovisual systems provider to UAE market.
The company carries systems which help people in collaboration.
One of the products offered by Audiviz is LifeSize® TEAM 220 Video conference
solution for a team environment.
Team 220 has excellent features but its revenue has been lower than expected
as compared to competing products of same range.
As been part of Marketing team at Audiviz I have conducted research to find out
what are reasons behind the lower performance of TEAM 220.
The research has been conducted to assess the performance of TEAM 220
video conference systems by utilizing all possible means available with
permission from the Management.

1.2.1 Research Methodologies Adopted
Due to lack of available resources to organize and exclusive field research, I have
conducted internal and desk research to identify the causes of lower sales of Team
220.
1.2.1.1 Internal Research
Company’s Database, financial records, Sales leads, inquiries and
invoices have been used to collect data about the performance of the
company.
1.2.1.2 Depth Interviews
Depth Interviews have been conducted with Sales Manager, Channel
Sales team, technical support team supervisor, and during the research
process.
1.2.1.3 Desk Research
The desk research has also been conducted to identify the causes of poor
performance of TEAM 220. It has also helped in understanding trends and
competition offerings. This research has proven to be very helpful as it
employs many independent research organizations, i.e. Weinhouse
Research, IDC, and industry bodies like InfoComm International. I have

44


also searched through the company website and other material available
online at various platforms.
1.2.1.4 Qualitative Research
The Qualitative research has been conducted by utilizing interview
techniques in a casual manner within the company as well as with the
channel partners. The qualitative research has helped to understand the
partners’ perspective about the understanding of product actual and
perceived performance. Both single and double barrel questions have
been asked to respondents to get relevant answers.

Life Size Team 200 has been developed to meet the needs of teams meetings in Full
HD 1080 format data video capabilities. Even having best features and a competitive
price, Team 220 could not do well in the UAE market since its introduction in year
2009.
Below are some interesting factors about the product which have been assessed
during the audit analysis for product performance improvement.

LifeSize TEAM 220 provides Full HD Video conference solution with most
competitive prices in the market
It provides best quality of image with the lowest bandwidth consumption
The HD standard has not been promoted as the USP of the product
Product perception is negative among the target customers due to lack of
awareness
Lack of Awareness about the product salient features, advantages and
technology on the basis of any marketing and promotion campaign.
Road shows and Demos have not been conducted for new prospects.
Market has potential which can result into higher reverences and profits.

45


1.3 : Key issues identification

Existing approach to portfolio management is based on sales oriented system
of supplying and installation. The approach core focus is on volume sales
using existing distribution channels.
Available resources utilization is not at the optimum level due to lack of
management processes.
After sales services are not up to the industry standard due to poor training of
the staff.
Distribution channels are not contacted for improving the delivery of service
and other operational matters.
Promotional materials and product support is not considered as an important
factor of sales performance.
Existing channel are not exploited with a key account management approach
in focus.
Product awareness is lacking among the sales & marketing teams and
channel partners’ sales force.
Merchandising is not monitored and stocks are being kept for more than 60
days in stock.
Easy to sell products are being kept in the stock.

Total word count for Task 1: 1635

46


APPENDIX III

Personal Statement

Provide a brief statement confirming the following:

‘I confirm that in forwarding this assessment for marking, I understand and

have applied the CIM policies relating to word count, plagiarism and collusion for all

tasks. This assignment/project is the result of my own independent

work/investigation except where otherwise stated. Other sources are acknowledged

in the body of the text and/or a bibliography is appended. The work that I have

submitted has not previously been accepted in substance for any other award and is

not concurrently submitted in candidature for any other award.’

Zafar Iqbal
CIM Membership No. 11860681

47


APPENDIX IV

InfoComm exhibition booking form – sample

48


TEAM 220 vs. HDX 700 price & technical comparison - sample

49


TEAM 220 vs. C40 price & technical comparison - Sample

50

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