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  1. 1. WorldTVNet ,.
  2. 2. Table of Contents Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities. 1. Executive Summary.........................................................................................................4 2. Situation Analysis............................................................................................................4 2.1. Market Needs............................................................................................................4 2.2. The Market................................................................................................................4 2.2.1. Market Demographics........................................................................................5 2.2.2. Market Trends....................................................................................................6 2.2.3. Market Growth...................................................................................................7 2.2.4. Macroenvironment.............................................................................................8 2.3. The Company............................................................................................................8 2.3.1. Mission...............................................................................................................9 2.3.2. Service Offering.................................................................................................9 2.3.3. Positioning.......................................................................................................10 2.3.4. SWOT Summary..............................................................................................10 2.3.4.1. Strengths...................................................................................................10 2.3.4.2. Weaknesses...............................................................................................10 2.3.4.3. Opportunities.............................................................................................10 2.3.4.4. Threats.......................................................................................................11 2.4. Competition.............................................................................................................11 2.4.1. Direct Competition...........................................................................................12 2.4.2. Indirect Competition........................................................................................15
  3. 3. Table of Contents 3. Marketing Strategy.........................................................................................................15 3.1. Value Proposition....................................................................................................15 3.2. Critical Issues..........................................................................................................16 3.3. Financial Objectives................................................................................................16 3.4. Marketing Objectives..............................................................................................16 3.5. Target Market Strategy...........................................................................................16 3.6. Messaging...............................................................................................................17 3.6.1. Branding...........................................................................................................17 3.7. Strategy Pyramids...................................................................................................18 4. Marketing Mix...............................................................................................................18 4.1. Product Marketing..................................................................................................18 4.2. Pricing.....................................................................................................................18 4.3. Promotion................................................................................................................19 4.3.1. Advertising.......................................................................................................19 4.3.2. Public Relations...............................................................................................20 4.3.3. Direct Marketing..............................................................................................21 4.4. Service.....................................................................................................................22 4.5. International Markets..............................................................................................23 4.6. Implementation Schedule........................................................................................23 5. Financials.......................................................................................................................25 5.1. Break-even Analysis...............................................................................................26 5.2. Sales Forecast..........................................................................................................27 5.3. Expense Forecast....................................................................................................28 5.4. Linking Expenses to Strategy and Tactics..............................................................29 5.5. Contribution Margin...............................................................................................30 6. Controls..........................................................................................................................32 6.1. Implementation.......................................................................................................32 6.2. Keys to Success.......................................................................................................32 6.3. Market Research.....................................................................................................32 6.4. Contingency Planning.............................................................................................32
  4. 4. 1. Executive Summary Item body here 2. Situation Analysis Item body here 2.1. Market Needs Military service members who are stationed abroad and their families want to have access to their favorite TV shows from back home. Plus, having access to U.S. TV content is a channel to help military personnel and their families to stay connected to the people, events, and social and cultural trends back home. Moreover, some local cable and satellite television providers offer a limited selection of foreign language channels; and charge premium fees for the foreign language packages. Our services satisfy the market need for a convenient, reliable, and affordable channel for people living aboard to access TV content from major U.S. networks. Furthermore, subscribers to our service do not need to buy additional electronic equipments to access the TV content. They can watch TV from their computers or download the shows to their mobile devices. In addition to accessibility, our customers also want flexibility in how they can view the shows. Therefore, we offer both on-demand and real-time viewing options 2.2. The Market Item body here
  5. 5. Market Analysis 2008 2009 2010 2011 2012 Potential Customers Growt CAG h R Segment Name 0% 0 0 0 0 0 0.00% Segment Name 0% 0 0 0 0 0 0.00% Other 0% 0 0 0 0 0 0.00% Total 0.00% 0 0 0 0 0 0.00% Market Analysis (Pie) Segment Name Segment Name Other 2.2.1.Market Demographics The profile of the customers consists of the following geographic, demographic, psychographic, and behavior factors: Geographics • International • People who are living outside of their native country or people who are interested in international TV programming • Approximately over 4 Million Americans are living aboard Demographics • Female and male • Younger people who are comfortable with using technology • Have access to high-speed internet
  6. 6. • Majority have attended college • Age range of 18 to 45 years, with a median age of 25 • Own there technological gadgets, which may include: o cell phone/PDA o laptop o flat screen TV o digital camera o MP3 player o video game consoles Psychographics: • Keep up with the latest technology • Want convenient, reliable, and easy access to their favorite TV shows • Interested in keeping up with the news, fashion, and happenings of their home country or a country of their interest Behaviors • Use current technology at home, at work, or at school • Use the Internet as their main source of information • Expect technology to be user-friendly and enhance their daily-life Market Demographics Market Segments Characteri Characteri Characteri Characteri Characteris stic stic stic stic tic Segment Name - - - - - Segment Name - - - - - Other - - - - - 2.2.2.Market Trends The significant market trends are as follows: • According to Conference Board and TNS's TV online study, close to 16% of household in the US with internet watch TV online. Online TV viewership has doubled from a year ago (Bulik, 2007). • Majority of the people believe online video watching is becoming mainstream and the under-25 population group view online video is a way of life (Bulik). • The wall Street Street Journal reported on Jan 10, 2008 that as U.S economy sours, more Americans are inclined to keep their less expensive Internet service than their cable-TV subscriptions (Chamy, 2008).
  7. 7. Market Analysis (Trends) 1 1 1 1 1 Segment Name 1 Segment Name 0 Other 0 0 0 0 2008 2009 2010 2011 2012 2.2.3.Market Growth • In January, 2008 Issue of PC magazine, author John Dvorak writes "The IPTV revolution will begin within the next 5 years. It will be mature but not universal in 10 years, and in 25 years people will be baffled by stories about how this sort of media was delivered in the past" (Dvorak, p 75) • Telecom companies across the global are moving into the IPTV to market. The major players in Asia are Hong Kong's PCCW Ltd., SignTel, Taiwan's Chunghwa Telecom Co. and Japan's KDDI Corp. A London market research firm, Ovum, estimated there were 4.4 million IPTV subscribers in Europe, 900,000 in Asian-Pacific region, and 1.9 million in North America as of 2007. And the firm expects the number of subscribers to increase to 30.8 million in Europe, 11.7 million in North America and 6.3 million in Asia-Pacific region by 2011 (Guevarra and Lee, 2008).
  8. 8. Market Analysis (C.A.G.R) 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Segment Name Segment Name Other 2.2.4.Macroenvironment The following issues impact market acceptance and WorldTVNet ability to generate revenue: Consumer trends - Consumers are moving to the web for video, news, and entertainment. Consumers are looking for accessible entertainment. Economic changes - High speed broadband internet connection has become cheaper and more affordable globally. Technology advancements - Networking technologies and widespread of broadband internet have made IPTV a viable broadcast channel. TV manufacturers such as Fujitsu LTD., Matsushita Electric Industrial Co.'s Pannasonic and Sharp Corp, and Sony are adding features to access Internet programming on their TV sets. Sandisk Crop, digital storage products maker, introduced its Take TV product, a device transfer video contents stored on computers directly to most televisions. MatrixSystmes Inc. also recently have introduced similar computer to TV content ferrying devices. Competitive activity - Competition is strong in the marketplace. Telecom and technology firms in the states and aboard are launching their IPTV services. Content download service providers like Apple with its iTune and AppleTV remain to be strong competitors. 2.3. The Company Item body here
  9. 9. 2.3.1.Mission Our multimedia company brings entertainment to people around the world. People anywhere in the world can utilize their broadband internet connection to access television programs from other parts of the world in real-time and on-demand. We exist to make entertainment more accessible to more people in more places in the world. Our company's dedication to superior customer service, on-going technology innovation, and exceptional user experience will set us apart from our competitors. 2.3.2.Service Offering The "WorldTVNet" is designed to offer the following to each participant: • Information from "Home" via live News Broadcasts. • A source of entertainment that's culturally familiar or new. • A resource to help individuals immerse themselves in learning a new language. • A means to learn/understand differences in local/sub-cultural dialects. • A source of fun and enjoyment to enrich family time. • A resource to enhance world knowledge and situational awareness. • An opportunity to watch your favorite sport/sport team. Teachers greatly realize the benefits. They are able to offer their students a culturally relevant experience that does not require travel. Professors, Researchers, Politicians and Intelligence analysts also realize the benefit as they gain first-hand interpretations directly from the people impacted by situations, policies or occurrences. Additionally, businesses realize the benefit as they can discover/analyze the mindset of people in foreign nations and measure the impact on profit/revenue. Finally coaches of world traveling sports team also realize the benefit as they can scout the international competition without travel. Our primary points of differentiation offer these qualities: • Selective program watching; enables our customers to choose their own channel line-up. • Real-time, on-demand or on-the-go viewing capability. • No charge 24 hour direct access via live chat, email or telephone to a multi- language team of customer service experts • Complementary product offering/trial subscription. WorldTVNet will provide its customers with full access to television programs via the Internet and enabling software programs, accessible via our Website at no additional charge. WorldTVet will provide a brief instructional, how-to-guide and a brief troubleshooting checklist to help customers navigate the system and troubleshoot minor technical issues, accessible via our Website.
  10. 10. 2.3.3.Positioning For consumers who are living abroad and have basic technical savviness, computer equipment and an broadband internet connection, our company offers those wishing to experience television as if they were "Home" a home-television experience from anywhere in the world, at anytime of the day with a few clicks of a mouse button. Unlike other companies offering IPTV services, our company enables the customer to watch television at their discretion without the hassles of difficult technology, bogged down servers and lack of program choice. Our main competitors have chosen which programs its customers will watch. Our competitors also do not offer on-demand viewing which limits server/computer memory and speed issues. Our competitors have also experienced high-levels of complaints from customers, expressing dissatisfaction with technical difficulty and downloading problems. Our company's product is designed so that even the most novice-user can enjoy WorldTVNet. We've also ensured that there are no downloading difficulties, by partnering with our program providers and using multiple servers already in-place and proven adequate for large-scale on-demand viewing and downloading. 2.3.4.SWOT Summary Item body here 2.3.4.1.Strengths • Flexible viewing options with real-time access and on-demand feature. • Comprehensive programming offerings that include shows from multiple countries and in multiple languages. • User friendly interface that is developed for average computer users' skill level. • Shows can be downloaded to and store on portable media player such as iPod, Zune, and PSP and cell phones with video playback capability. • Service is accessible anywhere in the world. • Viewers only need the broadband internet connection and the computer they already have; no additional electronic equipment is neccessary to access our service. • 24 hours customer service is availible on line and over the phone. 2.3.4.2.Weaknesses • Marketing to diverse groups of people in different locations around the world is both expensive and challenging. • Service is limited to people who have broadband internet access. • We have smaller marketing budget than our main competitions, the cable and satellite TV providers. • We are a newcomer to the marketplace without an established brand identity and public awareness of our service. 2.3.4.3.Opportunities • The surge in broadband has made internet broadcast a credible TV content distribution channel (New Media Age, 2008). • Electronic companies are working on television sets that have internet connectivity capabilities. In January, 2008, Matsushita Electric Industrial announced it will start selling internet-connected televisions
  11. 11. in the US that can access Google's YouTube. Moreover, Sharp and Song also announced in the same week that they are going to launch similar TV sets and online content partnerships (Sanchanta, 2008). • In March, 2007, Thinkbox CEO, Tess Alps, reassured the audience at 'Third Age of Television' event in Camden, London, that TV is in good health and the next evolution for television is to deliver TV content across multiple platforms and devices (New Media Age, 2007). • The growth for the first internet TV services such as Joost and Babelgum has been slower than expected; however, analysts has predicted dramatic growth as the services become easier to use (Marketing Week, 2007). 2.3.4.4.Threats • Competition is strong with several companies that have been trying to bring TV content to the web. Microsoft TV launched its premium IPTV service which streams high-def programs over the internet. They had about 400,000 subscribers at the end of 2007 (Porges, 2007). • Major content owners are launching their own online services. For example, News Corporation's Fox Network and NBC Universal have partnered to stream The Simpsons and The Office through Hulu.com, AOL, MSN, MySpace, and Yahoo! (New Media Age, 2007). • Apple is also an threat as it expands its entertainment service offerings. Apple's iTune allows people download TV shows and store the shows on iPods, and AppleTV allows people to purchase TV shows, download music, and rent movies. • Online TV market is still at an immature stage and lacks a dominant business model. Business models such as pay-on-demand, ad- supported, revenue share and subscription models are still all being tested (New Media Age, 2007). 2.4. Competition Our competition is both direct and indirect. Our most direct competitors are Joost and Babelgum, companies offering limited IPTV services. Currently we do not feel threatened by Joost or Babelgum as their services are notoriously not user-friendly and their market share has been greatly affected by its difficult applications and slow process speeds. Other direct competitors are Microsoft TV, Fox/NBC, AOL, MSN, Yahoo and other international IPTV companies such as PCCW, Signtel, Chunhuua Telecom and KDDI. For now, none of these competitors represent a great threat as they do not offer unlimited viewing and channel options experienced just like one would if they were sitting in front of a television set in their home country. On the other hand, we do see companies such as Microsoft TV, Fox/NBC, and AOL/MSN as a future threat. These companies have the resources/relationships to offer the exact technology we are offering our customers. They also have name recognition and history to promote their advance into the market. Our indirect competitors are local street-corner businesses whose owners illegally copy and sell media and sell it to the public for pennies on the dollar. Because we will allow our product to be downloaded to portable devices, we expect competition from local merchants who will illegally download our media and sell it on the black market. This is a major threat that could significantly cut into our profits if we do not stay ahead of security measures and securing our net.
  12. 12. 2.4.1.Direct Competition Item body here
  13. 13. Growth and Share Competitor Price Growth Rate Market Share Competitor $0 0% 0% Competitor $0 0% 0% Competitor $0 0% 0% Competitor $0 0% 0% Competitor $0 0% 0% Other $0 0% 0% Average $0.00 0.00% 0.00%
  14. 14. Total $0.00 0.00% 0.00% Competitive Analysis #1 #2 #3 #4 #5 #6 Competitor Name Name Name Name Name Name me me me me me me Product and/or Service Name Name Name Name Name Name me me me me me me Quality 0 0 0 0 0 0 Selection 0 0 0 0 0 0 Price 0 0 0 0 0 0 Other 0 0 0 0 0 0 Location and Physical Name Name Name Name Name Name Appearance me me me me me me Traffic 0 0 0 0 0 0 Appearance 0 0 0 0 0 0 Visibility 0 0 0 0 0 0 Convenience Factors 0 0 0 0 0 0 Other 0 0 0 0 0 0 Added Value Factors Name Name Name Name Name Name me me me me me me Pre and Post Sales Service 0 0 0 0 0 0 Experience 0 0 0 0 0 0 Expertise 0 0 0 0 0 0 Reputation 0 0 0 0 0 0 Image 0 0 0 0 0 0 Stability 0 0 0 0 0 0 Strategic Alliances 0 0 0 0 0 0 Other 0 0 0 0 0 0 Other Marketing Activities Name Name Name Name Name Name me me me me me me Established Sales Channels 0 0 0 0 0 0 Advertising 0 0 0 0 0 0 Post-purchase Support 0 0 0 0 0 0 Incentives 0 0 0 0 0 0 Loyalty Components 0 0 0 0 0 0 Other 0 0 0 0 0 0 Total 0 0 0 0 0 0
  15. 15. Competitor by Growth and Share 1% 1% 1% Competitor 1% Competitor Competitor 0% Competitor Competitor 0% Other 0% 0% -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2.4.2.Indirect Competition Item body here 3. Marketing Strategy Item body here 3.1. Value Proposition WorldTVNet specializes in delivering high quality international TV programming to people anywhere in the world. We deliver our digital TV content through the Internet which means anyone with a computer and a broadband internet connection can access most of the world's major entertainment stations. Our company is geared to serve the global community. We have formed partnerships with major networks and broadcasters from most of the countries in the world to bring our customers quality entertainment from around the world. Subscribers of our service have the opportunity to access entertainment, news, and information from their home country or to experience a foreign culture through its TV contents. Our programming is also portable; subscribers can download the content to their moblie devices to enjoy quality entertainment on-the-go. In addition to quality TV programming, we also provide outstanding customer service. We are conscious that we serve the global community and strive to address the diverse needs of our international customers. Subscribers can reach our well trained, multilingual customer service team 24 hours a day, 7 days a week. We strive to resolve most issues within three hours of customers' initial contact. Customers can reach us via phone, live chat, or email.
  16. 16. 3.2. Critical Issues We have many strengths including our diverse multilingual programming, investment in our technological infrastructure, strong partnership with networks and broadcasters around the world, and well trained staff. Our challenges involve the need to differentiate our service offering from other IPTV providers, formulate a global marketing strategy to reach diverse consumer bases, establish our brand identity in a global market, and compete for market share with major TV content providers from around the world. Critical issues for the WorldTVNet include: • Differentiate ourselves from our competition and offering added value to our customers. • Recruit subscribers and developing further customer loyalty in a competitive market. • Establish the brand image of world leader in IPTV services. • Generate revenue from advertising sales by recruiting advertises. • Continue improvement of our technological infrastructure. • On-going employee training, customer service, technological support, sales, adminstrative, and management. 3.3. Financial Objectives Thr goal of WorldNetTV is to realize sales of $2,500,000 the first year, increasing at a double digit growth year for the first two years, then increase 15% annaually. Develop/Improve delivery of IPTV through continual/advance training and continuous technology improvement/updates. Contribution margin 30% of sales by third year. 3.4. Marketing Objectives • Establish ourselves as the leading provider of Internet TV service • Increase public awareness of our service and brand • Communicate our service advantage to potential customers • Secure subscribers to our service 3.5. Target Market Strategy Because other companies such as Joost, have already entered the IPTV market and companies such as Microsoft TV, Fox/NBC, AOL, MSN, Yahoo and other international IPTV companies such as PCCW, Signtel, Chunhuua Telecom and KDDI are attempting to establish a market in IPTV, the theory behind our market segmentation strategy is to challenge the market and increase our market share. Because this technology is somewhat recent, there is no clear market leader and therefore we do not feel attacking is high-risk. We plan to use a bypass market challenger strategy, by differentiating ourselves and offering a diverse product not currently offered by other providers in the market. Our plan to offer real-time and on-demand telebroadcasting leapfrogs the other companies' technology and offers our consumers the capability to watch television at their discretion without bogging down PC memory and speed, as we will partner with other media providers, enabling us access and use of multiple servers. We also plan to enter geographical areas currently not being served by our competitors. Our product will appeal to people in all geographic areas as we will offer programs from multiple countries in multiple languages.
  17. 17. We are focusing on the technology generation familiar with uploading/downloading and manipulating websites/WebPages and media gadgets and those with the technology in-place and ready-to-go. We chose this group based on its psychographic makeup. These consumers are away from their country of origin, yet consider issues, politics and happenings in their homeland of significant importance. Currently the majority of these consumers are without a resource or information source to help them stay abreast of situations in their home country. We will offer these consumers an inexpensive, continual direct channel to all required information, issues and happenings...much cheaper than a daily international phone call to Uncle Know-it-All! These consumers also desire to watch regular programming in their native language as learning a new language can be time-consuming, expensive and sometimes not worth the effort. Spending years watching movies by subscript can be just as tormenting. There are also cultural differences that make watching television in your native language, produced in your native country a lot more enjoyable and satisfying than watching television produced in a culture somewhat foreign to you. We will offer our customers the opportunity to watch programs in which they will "get" the joke without explanation from the neighbor! We selected the technology generation because they easily accept new technology are unafraid of innovative ideas and trying new things. These particular consumers also prefer the internet over other media sources of information. The computer is also a ticket item that you don't have to repurchase every time you move. It will be compatible no matter which country you travel to. Another bonus is many of these consumers have laptops and other portable media devices, meaning they can experience television from their home country on-the-go. The astounding response to Apple's iPOD is just one success story that encourages our company to target our product toward the technology generation. These consumers are the key to success as we are not currently interested in persuading non-techies to join the tech band-wagon, we feel that would be too much of an expensive venture for our organization, therefore we're sticking with the target group who already have the technical know-how and the equipment. 3.6. Messaging WorldTVNet specializes in bringing the world to its customers' doorstep, anywhere, anytime, anyplace. WorldTVNet offers a customer-oriented experience, by providing the most comprehensive and user-friendly internet television network. In mere minutes, we blast directly to the customers media of choice personalized, high quality, world-wide, internet television that can be watched at the customer's discretion, at home or on-the-go. Keeping the world at your fingertips, by bringing the world to you! 3.6.1.Branding Our company name, "WorldTVNet" is our brand, along with our slogan, "We bring the world to you!" Our name and our slogan details our mission of bringing television via the internet from around the world to anywhere in the world. The brand highlights the fact that just because one has left home, home doesn't have to be left behind.
  18. 18. Our name and slogan ensure our product is positioned with consumers who are away from home, would like to experience television from a place and in a language that resonates most with them, who are familiar with technology and who have access to a computer and the internet. Our brand promises a professional, customer-oriented and personalized internet television experience. We will measure the brand's effectiveness by quantifying subscription contracts at the end of promotional offers, repeat customers and customers who reach out to WorldTVNet to switch from our competitors' product in favor of ours. Target Market Messaging Market Segments Messaging Segment Name - Segment Name - Other - 3.7. Strategy Pyramids Item body here 4. Marketing Mix Item body here 4.1. Product Marketing As the economic market becomes increasingly global, many organizations are moving portions of its employee base to overseas locations. WorldTVNet provides people living abroad with the ability to access real-time television programs through the internet. People from all over the world whether living abroad or desiring a foreign television viewing experience will be able to watch television programs from anywhere in the world, no matter where in the world they are located. Our team of multi-language customer service experts will be available 24 hours a day via a live internet chat room, email or telephone to ensure our customers have a pleasant and fulfilling internet television experience. Our most exciting offer will enable our customers to pick and choose their own channel line-up. We will not dictate channel packages like our competitors. WorldTVNet promises discretionary viewing for customers world-wide. Our customers pick the time they desire to watch television, they pick the place they wish to watch television from and they pick the program they want to watch, real-time, on-demand, in-place or on-the-go, from anywhere, anytime and anyplace. 4.2. Pricing WorldTVNet will minimize costs, ensuring everyone who desires to enjoy our service has the opportunity to do so. We will offer better value and quality to our customers at a lower price than most competitors, offering substitute service.
  19. 19. WorldTVNet's competitors are having a difficult time providing quality, user-friendly IPTV service to its customers. With this in mind, WorldTVNet will price its product to gain the maximum market share, pricing its product lower than its competitors, assuming lower prices will stimulate growth and high quality will encourage customer loyalty. Price List Item Description Per Unit Price Bronze Package Choice of 30 Channels plus $35 3 Premium channels Silver Package Choice of 50 channels plus $55 choice of 5 premium channels & access to on- demand service Gold Package Choice of 70 Channels plus $75 choice of 7 premium channels & access to on- demand service Platinum Package Choice of unlimted channels $105 plus 15 premium channels, one sports package & access to on-demand service Diamond Package Choice of unlimited channels $150 plus unlimited premium channels, unlimited sports package, access to on- demand service & video gamming 4.3. Promotion WorldTVNet uses the integrated marketing communications (IMC) approach. The comprehensive promotion plan is designed to assure that the marketing message received by the customers for our product and services are relevant and consistent. The promotions plan uses advertising, public relations, and direct marketing to achieve the communications objectives of brand awareness and brand purchase 4.3.1.Advertising The informative advertising aim is the appropriate approach for a new product like ours. The goal is to create awareness and knowledge of our product, service, and brand. Our target customers are military servicemembers and their families stationed in Germany. We need media that allows us to target customers in Germany. We have chosen to advertise in base newspapers that are distributed on bases in Germany. We will evaluate the reach and impact of each newspaper publication. In the beginning, we will have high frequency to help build awareness. We will decrease frequency after the initial product introduction period.
  20. 20. In addition to newspaper advertising, we will purchase out-of-home advertising, including billboards and diorama displays on the bases. Moreover, we will create collateral marketing materials including brochures, product data sheets, and company fact sheets to support sales. To obtain maximum impact, we will use the pulsing scheduling approach. We will hit the market hard with advertising in the initial product introduction. After the initial product launch we will advertise continuously at a lower level and reinforce our brand awareness and market position with periodical heavier activities. Furthermore, in addition to brand awareness advertising, we will promote free trails to invite customers to try our service free for a period of time. Our target advertising in market date is August 1, 2008 Milestones Advertising Start Date End Date Budget Manager Departmen t Creative Concepting 5/1/2008 5/31/2008 $50,000 Yu Wu Marketing Media planning 5/10/2008 5/31/2008 $2,000 Staci Marketing Coleman Review creative and media 6/1/2008 6/5/2008 $0 Yu wu Marketing plan (revision if needed) Place media buys 6/6/2008 6/15/2008 $100,000 Staci Marketing Coleman Print ad design 6/16/2005 6/30/2008 $15,000 Yu Wu Marketing Out of Home design 6/16/2005 6/30/2008 $10,000 Yu Wu Marketing Collateral materials design 6/16/2005 6/30/2008 $8,500 Staci Marketing Coleman Collateral material - printing 7/1/2008 7/15/2008 $25,000 Yu Wu Marketing Print ad visioning 7/1/2008 7/15/2008 $5,000 Yu Wu Marketing Creative trafficking 7/16/2008 7/20/2008 $1,000 Staci Marketing Coleman Total Advertising Budget $216,500 4.3.2.Public Relations We will utilize marketing public relations (MPR) to support our product promotion and brand building efforts. The PR team will generate publicity by sending press releases of product and service launch and other company news and information to local media outlets. In order to create positive relation with the military community and promote the WorldTVNet brand, we will seek sponsorship opportunities to local military base events.
  21. 21. Milestones PR Start Date End Date Budget Manager Departmen t PR plan development 5/1/2008 5/12/2008 $2,000 Staci Marketing Coleman PR Plan review 5/13/2008 5/18/2008 $0 Staci Marketing Coleman Finalize Plan 5/19/2008 5/25/2008 $1,500 Staci Marketing Coleman First press release 5/26/2008 6/1/2008 $800 Yu Wu Marketing Internal newsletter 5/26/2008 6/1/2008 $3,000 Yu Wu Marketing Follow up press release 7/20/2008 8/1/2008 $500 Yu Wu Marketing Total PR Budget $7,800 4.3.3.Direct Marketing Direct marketing will be a major part of the integrated marketing communications plan. Our direct marketing communication plan is a pronged approach of direct mail, telemarketing and interactive marketing. First, we will purchase the mailing list of military servicemembers in Germany and directly send mail pieces to their residents. The direct mail will encourage potential customers to call us on the phone or visit our website to sign up for a free trial of our service. Secondly, our inbound call center staff will answer customers' questions, explain our services, and sign up new subscribers. We also have a 24-hr customer support center that provides current customers technical support and customer service. Lastly, interactive marketing will give use the opportunity to directly interact with the customers. Internet advertising like banner ads, web site, and search-related ads are part of our e-marketing strategy. We will purchase banner ad placement on military web sites. The banner ads will link to our website where customer can learn more of our service and make purchases. Moreover, we will purchase targeted internet search key words to ensure our website will be found by customers within our service area.
  22. 22. Milestones Direct Marketing Start Date End Date Budget Manager Departmen t Direct Mail Planning 6/1/2008 6/5/2008 $500 Staci Coleman Mailing List purchase 6/6/2008 6/10/2008 $1,500 Staci Departmen Coleman t Direct Mail Design 6/6/2008 6/30/2008 $5,000 Yu Wu Departmen t Direct Mail Printing 7/1/2008 7/15/2008 $10,000 Staci Departmen Coleman t Direct mail mailing 7/16/2008 7/31/2008 $6,000 Staci Departmen Coleman t Banner ad Planning 6/1/2008 6/5/2008 $500 David Departmen D'Orr t Banner ad Design 6/6/2008 6/25/2008 $2,500 David Departmen D'Orr t Splash page design 6/6/2008 6/25/2008 $1,500 David Departmen D'Orr t Splash Pages go live 6/25/2008 6/25/2008 $0 David Departmen D'Orr t Web site planning 5/1/2008 5/25/2008 $500 David Departmen D'Orr t Web site design 5/26/2008 6/15/2008 $3,500 David Departmen D'Orr t Web site testing 6/15/2008 6/30/2008 $2,500 David Departmen D'Orr t Web site Launch 7/1/2008 7/1/2008 $0 David Departmen D'Orr t Total Direct Marketing $34,000 Budget 4.4. Service WorldTVNet is a service business. Our success is dependent on how well we deliver our service. WorldTVNet is committed to delivering quality entertainment our customers can count on. To ensure quality service: • We've made it our business to recruit people with strong customer service backgrounds with a passion for resolving issues. Furthermore, we've implemented policies which empower our employees to make decisions and resolve customer problems/complaints. Our staff is very knowledgeable and system savvy. To ensure our customer service representatives have more than the basic knowledge to manipulate the internet television system, we provide our customer representatives a full complimentary
  23. 23. internet television package for home use. Our expert team will always be on staff ready to provide service and instant resolve to WorldTVNet customers. Our staff's performance will be evaluated internally on a quarterly basis and randomly through customer surveys. • We've setup dedicated communication lines that connect directly to our channel providers to resolve technical issues not initiated on our service-end. Additionally, we have quality agreements with our channel providers and will continually evaluate channel provider service/quality as it is a major component of our quality promise. • WorldTVNet will also survey the customer service team quarterly to measure its morale and ensure the company is taking care of its team that takes care of its customers. The survey will include morale, personal, professional, health and wellness questions and contain a free narrative comment section, enabling employees to comment on relevant issues not covered in the questionnaire. Management will have one week to address employee concerns and will annotate lessons learned and best practices for future discussion/possible implementation at the monthly manager's meeting. 4.5. International Markets WorldTVNet's aims to be a global firm and will primarily provide services to US military service members who are stationed overseas. We will initially launch the service in Germany and expand to the rest of Europe and eventually extend into Asia and Africa. We will use the direct investment strategy to enter new foreign markets. The company will invest in technology infrastructure to support the increased demand of broadcasting TV content to additional subscribers and hire local staff to provide customer service. Furthermore, our main target customer base is American military service members which allow us to adapt a globally standardized marketing mix. Running the same marketing communications programs in all markets will keep the marketing cost low and create a consistent brand image and enables us to communicate the brand message quickly and efficiently. Moreover, straight extension method will be used to introduce our services to new foreign markets. Our business is web-based and the Internet is our distribution channel. To prevent any possible problem for subscribers to gain access to our service, we will thoroughly investigate the Internet law and e-commerce regulation of each country prior to launching our product in a new foreign market. 4.6. Implementation Schedule Item body here
  24. 24. Milestones Advertising Start Date End Date Budget Manager Departmen t Creative Concepting 5/1/2008 5/31/2008 $50,000 Yu Wu Marketing Media planning 5/10/2008 5/31/2008 $2,000 Staci Marketing Coleman Review creative and media 6/1/2008 6/5/2008 $0 Yu wu Marketing plan (revision if needed) Place media buys 6/6/2008 6/15/2008 $100,000 Staci Marketing Coleman Print ad design 6/16/2005 6/30/2008 $15,000 Yu Wu Marketing Out of Home design 6/16/2005 6/30/2008 $10,000 Yu Wu Marketing Collateral materials design 6/16/2005 6/30/2008 $8,500 Staci Marketing Coleman Collateral material - printing 7/1/2008 7/15/2008 $25,000 Yu Wu Marketing Print ad visioning 7/1/2008 7/15/2008 $5,000 Yu Wu Marketing Creative trafficking 7/16/2008 7/20/2008 $1,000 Staci Marketing Coleman Total Advertising Budget $216,500 PR Start Date End Date Budget Manager Departmen t PR plan development 5/1/2008 5/12/2008 $2,000 Staci Marketing Coleman PR Plan review 5/13/2008 5/18/2008 $0 Staci Marketing Coleman Finalize Plan 5/19/2008 5/25/2008 $1,500 Staci Marketing Coleman First press release 5/26/2008 6/1/2008 $800 Yu Wu Marketing Internal newsletter 5/26/2008 6/1/2008 $3,000 Yu Wu Marketing Follow up press release 7/20/2008 8/1/2008 $500 Yu Wu Marketing Total PR Budget $7,800 Direct Marketing Start Date End Date Budget Manager Departmen t Direct Mail Planning 6/1/2008 6/5/2008 $500 Staci Coleman Mailing List purchase 6/6/2008 6/10/2008 $1,500 Staci Departmen Coleman t Direct Mail Design 6/6/2008 6/30/2008 $5,000 Yu Wu Departmen t Direct Mail Printing 7/1/2008 7/15/2008 $10,000 Staci Departmen Coleman t Direct mail mailing 7/16/2008 7/31/2008 $6,000 Staci Departmen Coleman t Banner ad Planning 6/1/2008 6/5/2008 $500 David Departmen D'Orr t
  25. 25. Banner ad Design 6/6/2008 6/25/2008 $2,500 David Departmen D'Orr t Splash page design 6/6/2008 6/25/2008 $1,500 David Departmen D'Orr t Splash Pages go live 6/25/2008 6/25/2008 $0 David Departmen D'Orr t Web site planning 5/1/2008 5/25/2008 $500 David Departmen D'Orr t Web site design 5/26/2008 6/15/2008 $3,500 David Departmen D'Orr t Web site testing 6/15/2008 6/30/2008 $2,500 David Departmen D'Orr t Web site Launch 7/1/2008 7/1/2008 $0 David Departmen D'Orr t Total Direct Marketing $34,000 Budget Web Development Start Date End Date Budget Manager Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Other 1/1/2006 1/15/2006 $0 ABC Departmen t Total Web Development $0 Budget Other Start Date End Date Budget Manager Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Name me 1/1/2006 1/15/2006 $0 ABC Departmen t Other 1/1/2006 1/15/2006 $0 ABC Departmen t Total Other Budget $0 Totals $258,300 5. Financials Item body here
  26. 26. 5.1. Break-even Analysis Based on the break-even analysis, WorldTVNet will currently break even at a monthly sales point of $18,862. Fixed Costs Cost Rent or Lease $2,200 Professional Services $1,000 Payroll $9,583 Interest Payments $1,250 Utilities & Telephone $1,000 Non-discretionary Marketing Expenses $1,000 Other $0 Total Fixed Costs $16,033 Break-even Analysis Monthly Revenue Break-even $18,862 Assumptions: Average Percent Variable Cost 15% Estimated Monthly Fixed Cost $16,033 Break-even Analysis $15,000 $10,000 $5,000 $0 ($5,000) ($10,000) ($15,000) ($20,000) $0 $6,000 $12,000 $18,000 $24,000 $30,000 Monthly break-even point Break-even point = where line intersects with 0
  27. 27. 5.2. Sales Forecast Department of Defense reported in September 30, 2007 that there are 57,080 active duty military personnel stationed in Germany. We forecast 1% of the personnel, 570 people, will sign up for our service at the initial launch. We project that 75% of the initial customers will sign up for our $35 per month, Bronze Package. In addition, we project a 5% increase in number of subscribers each month for the first year. We share a portion of our sales revenue with some of the US Television networks for the rights to broadcast their TV contents. The direct cost of sales is 14% of the price of each service package. The direct cost of sales for Bronze, Silver, Gold, Platinum, and Diamond Packages are $5, $7.70, $10.50, $14.7, and $21 respectively.
  28. 28. Sales Forecast 2008 2009 2010 Sales Bronze Package $238,160 $0 $0 Silver Package $49,900 $0 $0 Gold Package $47,632 $0 $0 Platinum Package $57,158 $0 $0 Diamond Package $27,218 $0 $0 Total Sales $420,069 $0 $0 Direct Cost of Sales 2008 2009 2010 Bronze Package $34,023 $0 $0 Silver Package $6,986 $0 $0 Gold Package $6,668 $0 $0 Platinum Package $8,002 $0 $0 Diamond Package $3,811 $0 $0 Subtotal Direct Cost of Sales $59,490 $0 $0 Sales Monthly $50,000 $45,000 $40,000 $35,000 Bronze Package $30,000 Silver Package $25,000 Gold Package $20,000 Platinum Package $15,000 Diamond Package $10,000 $5,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5.3. Expense Forecast Item body here
  29. 29. Marketing Expense Budget 2008 2009 2010 Name me $0 $0 $0 Name me $0 $0 $0 Other $0 $0 $0 ------------ ------------ ------------ Total Sales and Marketing $0 $0 $0 Expenses Percent of Sales 0.00% 0.00% 0.00% Monthly Expense Budget $1 $1 $1 $1 $1 Name me $1 Name me $0 Other $0 $0 $0 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5.4. Linking Expenses to Strategy and Tactics Item body here
  30. 30. Sales vs. Expenses Monthly $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 Sales Expenses $20,000 $15,000 $10,000 $5,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5.5. Contribution Margin Item body here
  31. 31. Contribution Margin 2008 2009 2010 Sales $420,069 $0 $0 Direct Cost of Sales $59,490 $0 $0 Costs of Sales $0 $0 $0 ------------ ------------ ------------ Total Cost of Sales $59,490 $0 $0 Gross Margin $360,579 $0 $0 Gross Margin % 85.84% 0.00% 0.00% Marketing Expense Budget 2008 2009 2010 Name me $0 $0 $0 Name me $0 $0 $0 Other $0 $0 $0 ------------ ------------ ------------ Total Sales and Marketing $0 $0 $0 Expenses Percent of Sales 0.00% 0.00% 0.00% Contribution Margin $360,579 $0 $0 Contribution Margin / Sales 85.84% 0.00% 0.00% Contribution Margin Monthly $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
  32. 32. 6. Controls Item body here 6.1. Implementation Item body here 6.2. Keys to Success Item body here 6.3. Market Research We need to cover two main elements of market research: 1. Competitors - We need to research our competitors' services and their technology. 1. Demographics - We need to monitor the changing demographics of our consumers as IPTV becomes more and more mainstream. 2. Technology - We need to keep on with the latest technological development in order to provide our customer with the best service possible. 6.4. Contingency Planning Item body here
  33. 33. Appendix Sales Forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales Bronze Package 75 $14, $15, $16, $17, $18, $19, $20, $21, $22, $23, $24, $25, % 963 711 496 321 187 096 051 054 106 212 372 591 Silver Package 10 $3,1 $3,2 $3,4 $3,6 $3,8 $4,0 $4,2 $4,4 $4,6 $4,8 $5,1 $5,3 % 35 92 56 29 11 01 01 11 32 63 07 62 Gold Package 7 $2,9 $3,1 $3,2 $3,4 $3,6 $3,8 $4,0 $4,2 $4,4 $4,6 $4,8 $5,1 % 93 42 99 64 37 19 10 11 21 42 74 18 Platinum Package 6 $3,5 $3,7 $3,9 $4,1 $4,3 $4,5 $4,8 $5,0 $5,3 $5,5 $5,8 $6,1 % 91 71 59 57 65 83 12 53 06 71 49 42 Diamond Package 2 $1,7 $1,7 $1,8 $1,9 $2,0 $2,1 $2,2 $2,4 $2,5 $2,6 $2,7 $2,9 % 10 96 85 80 79 82 92 06 26 53 85 25 Total Sales $26, $27, $29, $30, $32, $33, $35, $37, $38, $40, $42, $45, 391 711 096 551 078 682 366 135 992 941 988 138 Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bronze Package 75 $2,1 $2,2 $2,3 $2,4 $2,5 $2,7 $2,8 $3,0 $3,1 $3,3 $3,4 $3,6 % 38 44 57 74 98 28 64 08 58 16 82 56 Silver Package 10 $439 $461 $484 $508 $533 $560 $588 $618 $648 $681 $715 $751 % Gold Package 7 $419 $440 $462 $485 $509 $535 $561 $590 $619 $650 $682 $717 % Platinum Package 6 $503 $528 $554 $582 $611 $642 $674 $707 $743 $780 $819 $860 % Diamond Package 2 $239 $251 $264 $277 $291 $306 $321 $337 $354 $371 $390 $409 % Subtotal Direct Cost of Sales $3,7 $3,9 $4,1 $4,3 $4,5 $4,7 $5,0 $5,2 $5,5 $5,7 $6,0 $6,3 37 24 21 27 43 70 09 59 22 98 88 92 Page 33
  34. 34. Appendix Page 34
  35. 35. Appendix Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ------ -- -- -- -- -- -- -- -- -- -- -- Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Percent of Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 % % % % % % % % % % % % Page 35
  36. 36. Appendix Contribution Margin Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales $26, $27, $29, $30, $32, $33, $35, $37, $38, $40, $42, $45, 391 711 096 551 078 682 366 135 992 941 988 138 Direct Cost of Sales $3,7 $3,9 $4,1 $4,3 $4,5 $4,7 $5,0 $5,2 $5,5 $5,7 $6,0 $6,3 37 24 21 27 43 70 09 59 22 98 88 92 Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total Cost of Sales $3,7 $3,9 $4,1 $4,3 $4,5 $4,7 $5,0 $5,2 $5,5 $5,7 $6,0 $6,3 37 24 21 27 43 70 09 59 22 98 88 92 Gross Margin $22, $23, $24, $26, $27, $28, $30, $31, $33, $35, $36, $38, 654 786 975 224 535 912 358 876 470 143 900 745 Gross Margin % 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Percent of Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 % % % % % % % % % % % % Contribution Margin $22, $23, $24, $26, $27, $28, $30, $31, $33, $35, $36, $38, 654 786 975 224 535 912 358 876 470 143 900 745 Contribution Margin / Sales 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 85.8 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% Page 36

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