it is related to marketing. a brief fine description of innovative product cross x1 helmet. the full proof marketing plan is given. it is basically a marketing assessment of launching a new product. so it will assist you in better understanding marketing mix structure. every aspect is very keenly analysed and will help you in making presentation.
1. SMART HELMET X1
MARKETING SEMESTER PROJECT
Team Shakshambu | Fundamentals of Marketing | 17th
Dec 2018
Department of Management Sciences
COMSATS University, Islamabad Campus
2. PAGE 1
Table of Contents
CHAPTER NO 1. INTRODUCTION ......................................................................................3
1.1 INTRODUCTION TO PRODUCT:..........................................................................3
1.1.1 Difference between Traditional & Cross Helmet:................................................3
1.1.2 Features of Product:..........................................................................................4
1.2 BRAND NAME:.....................................................................................................5
1.3 MARKETING PLAN:.................................................................................................5
1.3.1 SEGMENTATION:..............................................................................................5
1.3.2 TARGETING: .....................................................................................................5
1.3.3 POSITIONING:...................................................................................................6
1.3.3.1 Selecting an overall Positioning Strategy:...........................................................6
1.3.4 DIFFERENTIATION EDGE (Strengths):..............................................................7
1.4 HOW DOES IT WORKS:........................................................................................7
CHAPTER NO 2. PRICING TECHNIQUES ...........................................................................8
2.1. PRICING STRATEGY:...........................................................................................8
2.2 WHY WE ARE CHARGING THIS PRICE:..............................................................8
2.2. RANGE OF PRODUCT PRICE:..............................................................................9
2.3. COSTS: ..................................................................................................................9
2.4. PRICE:.................................................................................................................10
CHAPTER NO 3. PROMOTION COMPAIGN......................................................................10
3.1 ADVERTISING:...................................................................................................10
3.2 PUBLIC RELATIONS:..........................................................................................11
3.3 DIRECT MARKETING:........................................................................................12
3.4 PERSONAL SELLING:.........................................................................................13
3.5 SALES PROMOTION:..........................................................................................13
CHAPTER NO 4. PLACEMENT..........................................................................................13
4.1 CHANNELS OF DISTRIBUTION:........................................................................13
4.2 LOGISTICS:.........................................................................................................14
4.3 RETAILING:........................................................................................................14
CHAPTER NO 5..................................................................................................................15
5.1 CONCLUSIONS.........................................................................................................15
4. PAGE 3
CHAPTER NO 1. INTRODUCTION
1.1 INTRODUCTIONTO PRODUCT:
ROAD traffic crashes take the lives of nearly 1.3 million every year and injure 20-50 million
more in the world. According to Pakistan Bureau of Statistics data on traffic accidents in
Pakistan from 2004 to 2013, the ratio of killings in road accidents in total 51,416 people died
in 97,739 road accidents across the country. Only 28 countries, covering 7% of the worldâs
population, have comprehensive road safetylaws on five key risk factors:drinking and driving,
speeding, and failing to use motorcycle helmets, seat-beltsand child restraints. So, to overcome
this problem we are introducing a new product which is called smart helmet with the aim to
reduce the number of accidents that occur every day.
Figure 1: Smart Helmet
1.1.1 Difference between Traditional & Cross Helmet:
Most of the bikers donât use helmets in Pakistan and if they do itâs only the fear of challan.
With normal helmets the rider has to turn head again and again to watch his rear. Moreover,a
rider must stop and park to attend the call. And not everyone knows their way around, so they
end up asking everyone on the road the waysto their location. All of these,make the traditional
helmets unsafe. While, Smart Helmets are designed on one single idea which is security of
sport bike riders. The safety feature is that if unfortunately, if driver met an accident, the
location of accident would be sent to listed contacts numbers, police station or ambulance.
5. PAGE 4
Figure 2: Traditional & Smart Helmet respectively.
1.1.2 Features of Product:
īˇ Safety LED lights
īˇ Security System
īˇ Bluetooth Connectivity
īˇ Heads up Display
ī¨ Speedo Meter
ī¨ GPS
ī¨ Time & Date
Figure 3: Features of Smart Helmet
6. PAGE 5
1.2 BRAND NAME:
âSMART HELMETSâ
1.1.1 Product Name: âSmart Helmet X1â
1.1.2 Head Office Address: I-9/2 Industrial Area, Islamabad.
1.1.3 Official Website: www.smarthelmets.com
1.3 MARKETING PLAN:
1.3.1 SEGMENTATION:
Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share traits such as similar
interests, needs, or locations.
īˇ Demographically:
ī¨ Age: 21 years â 45 years
ī¨ Gender: Male & Female
ī¨ Income: Middle and Upper Class
īˇ Geographically:
ī¨ All over Pakistan.
īˇ Psychographic:
ī¨ High class people
ī¨ Motor heads
1.3.2 TARGETING:
A target market is a segment that has been selected to be served by the company. It consists of a
set of buyers who share common needs or characteristics.
Four target marketing strategies:
īˇ Undifferentiated (mass) marketing
īˇ Differentiated (segmented) marketing
īˇ Focused (niche) marketing
īˇ Micromarketing / customized (local or individual)
7. PAGE 6
Our business is related with a very specific product and very close target group, so our target
marketing strategy is focused marketing (niche).
1.3.3 POSITIONING:
The place our product occupies in customerâs minds relative to competitorâs offerings. The goal
is to differentiate our product / service in a positive way to gain competitive advantage.
Positioning Map:
Figure 4: Positioning Map
In the positioning map we can observe our direct competitors, this map explains in which position
we are in the market due to two aspects:Price and design.
1.3.3.1 Selecting an overall Positioning Strategy:
The full positioning of a brand, the full mix of benefits on which it is positioned.
8. PAGE 7
Possible Value Propositions:
Figure 6: Value Proposition
In this proposition, our brand lies in the first quadrant which is getting more benefits for price. To
prove this, we have got a survey sheet which shows the results.
1.3.4 DIFFERENTIATION EDGE (STRENGTHS):
īˇ Good innovative concept
īˇ Customer protection oriented
īˇ High quality helmets
īˇ High comfort and safety features
īˇ Good access to distribution network
1.4 HOW DOES IT WORKS:
īˇ It is chargeable helmet which is designed for motorcyclistâs safety purposes.
īˇ It has a camera on the back side which will work as a rear-view mirror to prevent the
rider from turning their heads again and again to keep a look on whatâs behind.
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9. PAGE 8
īˇ The heads-up display also shows the speed bike is going on by measuring the distance
per kilometer along date and time.
īˇ It has a function of connectivity, which connects your Smart helmet to your phone.
You can listen to the songs or attend calls. GPS system can tell you the direction to
your destination through speakers.
īˇ The main and important feature of this helmet is that if unfortunately, biker met an
accident its sensor gets activated and it automatically send an emergency location and
a call to your listed âEmergency Contactsâ or police station or an ambulance.
Figure 7: Internal Structure of Smart Helmet
CHAPTER NO 2. PRICING TECHNIQUES
2.1. PRICING STRATEGY:
For our product we would be using Price Skimming Strategy. Market Skimming pricing is setting
a high price for new product to skim maximum revenues for the segment willing to pay high price,
the company makes fewer but more profitable sales.
2.2 WHY WE ARE CHARGING THIS PRICE:
Price skimming is done when your product has some uniqueness. Those are as follows;
īˇ 360-degree back camera
īˇ Heads-up display
10. PAGE 9
īˇ Sleek and stylish design
īˇ Connectivity with Phone
īˇ GPS system
īˇ Security System
2.2. RANGE OF PRODUCT PRICE:
Our product price lies between Rs. 30,000 â 40,000
2.3. COSTS:
Initial Investment: Rs. 15,000,000
Primarily Expenses:
Web site = Rs. 200,000
Plant (machinery) = Rs. 5000,000
Fixed Costs:
Rented Land: Rs. 100,000 per month
Wearhouse = Rs. 75,000 per month
Total Salaries: Rs. 100,000 (7 labours)
Total Fixed Cost = Rs. 275,000 (per month)
Variable Cost:
Raw Material cost (700,000 +50,000) = 750,000
Camera (Rs. 2700*60) = 162,000
HUD (Rs. 4900*60) = 294,000
Safety LED Lights (Rs.420*60) = 25,200
Connectivity Router (Rs. 900*60) = 54,000
GPRS (Rs.1400*60) = 84,000
Packaging Cost = Rs. 30,000
11. PAGE 10
Transportation Cost = Rs. 5,000
Promotion Cost = Rs. 150,000
Total Variable Cost: Rs.1,554,200 (for 60 units)
Total Costs = Total Fixed Cost + Total Variable Cost
= 275,000 + 1,554,200
Total Cost = Rs. 1,829,200
2.4. PRICE:
Per unit cost = Total cost/ total units produced
= Rs. 1,829,200/ 60
= Rs. 30,500 (approx.)
Mark up = 20% markup
Mark-up Price = Rs. 36,600
CHAPTER NO 3. PROMOTION COMPAIGN
A helmet is a form of protective headgear worn by race car drivers and sports motorcyclists. It is
better not to crash at all, then to crash wearing a helmet. But if you do crash, a helmet works to
absorb the force, which protects your head, which in turn protects your brain. Helmets work to
prevent head injuries which becomes even more important for children whose brains are still
developing. So, wearing a helmet on motorcycle can absolutely can save your life.
We decided the best tools to reach our target groups, segments and which will help us use our
strong points and opportunities.
3.1 ADVERTISING:
Advertising is one of the basic elements in the marketing. It is very important to introduce your
product to customers. For example; using sports channel, stadium billboard or sports program on
TV.
12. PAGE 11
We would like to cooperate with the famous bike racer Saad Ali. He races in MotoGP and now is
currently in contract with Honda`s factory team. He is a local star. We want to use his name and
image to create our posters and commercials.
Figure 8: Saad Ali (The Racer)
Billboard next to racing tracks,itâs a perfect location. Lots of fans can see it. Commercial on bus
stationand near racing ground and other sports grounds in cities we choose because people using
it on before and after the game, to get to fan shop during the game week.
3.2 PUBLIC RELATIONS:
Public relations are more to learn about information about competitorsâ sales, customerâ needs and
market. So, you can shape your organization and product planning.
Invitation for people from different leagues, town government itâs important to have good
relations with them and clubs which we are sponsoring.
Figure 9: Invitation for Bikers
13. PAGE 12
An important issue here is to create corporate identity. It makes people to remember our brand.
People must be aware, know our brand and we have to create a good image in people mind. We
have a logo and we should take advantage of it, free merchandising, our colour is black so we can
create a lot of stuff using this attribute. For example: pens, notebooks, special bags for bike helmet
etc. and give it to people for free to use it and remember our brand image.
3.3 DIRECT MARKETING:
Direct marketing allows for direct to consumer advertising by implementing techniques where
physical marketing materials are provided directly to the target groups to educate them about the
product. This is done through fliers, catalogs, and person to person sales. (Cell phones text
messaging, email and promotion letters)
We would like to create a website; this website must be better than others with modern online
selling system and with our commercial. We can also have an interview with some players who
are using our helmet and post it there. The e-commerce is getting more important now a day so itâs
a good point and we can find an easy competitive advantage, our customer will know all the
characteristics of our product, the new launches and promotions.
The main point of website is the online shop, where clients will be able to get our products and get
them in terms of express delivery. You will find us in the social media, itâs important to adapt
yourself to the common trends in the society so we will have an active behavior on Facebook and
Twitter.
Sponsorship, we would like to become a sponsor of 1 teams in a league i.e. Drag Racing. It is
biggest, and this is our target. We can offer them free equipment in return for commercial inside
arena and maybe on tickets and shirts.
Figure 10: Drag Racing Sponsorship
14. PAGE 13
3.4 PERSONAL SELLING:
We can implement face to face selling to convince customers to purchase products. Through
personal interaction we can better understand the customersâ needs and educate them why our
product is superior to our competitorâs product.
3.5 SALES PROMOTION:
Sales promotion encourages customers to purchase more. Loyalty cards, giving some little gift
with the product are examples of the sales promotion. Trade in your old helmet in any condition
and get discount of$10 OFF. This kind of promotion time to time. Of course, special discount on
racing events and shows.
Figure 11: Discount for Promotion Purposes
In first week of selling we can give fans free tickets for games when they buy a helmet. Only
teams which will be sponsored by us: Drag Racing.
CHAPTER NO 4. PLACEMENT
4.1 CHANNELS OF DISTRIBUTION:
As weâre doing online business, we will only use our official website to take orders and delivery
goods. 8 helmets take almost 10-12 hours to complete. Our total goods produced are 60, batch 1
of 60 goods will be produced once and stored in warehouse. As,we would be receiving orders we
will deliver them goods. For delivery purposes we would be using national courier services like
TCS or Leopards etc. our official website is;
www.smarthelmets.com
15. PAGE 14
Figure 12: Courier Services; TCS and Leopards respectively
4.2 LOGISTICS:
Our head office will be stationed in Islamabad and the warehouses in which the helmets would
be stored would also be in Islamabad. After receiving orders from the showrooms, we would rely
on the countryâs own courier services such as TCS or Leopardâs courier to transfer out products
to its end customers and payments would made online through online banking system.
Warehouse Address: Islamabad I/9
Figure 13: Wearhouse in Islamabad
4.3 RETAILING:
Our distribution strategy requires no retailing. Initially our products would be placed in the
warehouse of Islamabad because we are using online shopping method and collection method for
distribution purposes.
16. PAGE 15
CHAPTER NO 5.
5.1 CONCLUSIONS
This helmet can reduce number of road accidents that takes place every day. It ensures the safety
of the biker as well as sends the victimâs location to family members and nearby police station.
Also, death rate can drastically be reduced by implementing this circuit as mandatory while
driving and make everyoneâs life easier and smoother.
5.2 FUTURE IMPLICATIONS/ RECOMMENDATIONS:
The project can be enhanced by adding Google Glass Technology. Through this technology, biker
can see the upcoming road before reaching that place. It can prevent biker from pits and pitiful
condition of roads. Also, biker can see navigation on it and can alert him while taking sharp turns.
Further, it can implement on cars also. People can use car seat belt to start ignition of car which
can enhance the safety of the driver.
5.3 REFRENCES
īˇ https://www.olx.com.pk/item/i-9-industrial-area-prime-location-space-available-
warehouse-offices-iid-862053568
īˇ https://www.youtube.com/watch?v=rsUFe9q4ILo
īˇ https://www.olx.com.pk/item/1000-square-feet-warehouse-available-for-rent-in-
islamabad-i-9-iid-1001234350
īˇ https://www.daraz.pk/300mbps-wireless-n-pico-usb-adapter-i100307486-
s1243855212.html?spm=a2a0e.searchlistcategory.list.2.7cd4397aaGFmfz&search=1
īˇ https://www.ridenuviz.com
īˇ https://www.amazon.com/Wireless-Helmet-Brake-Light-
Receiver/dp/B0042ASTT8
īˇ https://www.ebay.com/bhp/motorcycle-helmet-camera
īˇ https://www.alibaba.com/showroom/gps-navigation-chip.html