Marketing Plan of a Sound company.

1. Good Afternoon
Everyone

2. Welcome
to
Our
Presentation
on
Marketing Plan of HI Volume

3. Sl No Name ID
01 S.M. Al-Shahriar MBA 160304640
02 M.D. Momin Mia MBA 160304661
03 Amit Hasan Prince MBA 160304663
Presented By:
Sec: C

5. At “HI Volume”, our mission is to be a company
that inspires and fulfills your curiosity.
Our unlimited passion for technology, content and
services, and relentless pursuit of innovation,
drives us to deliver ground-breaking new
excitement and entertainment in ways that only “HI
Volume” can. Creating unique new cultures and
experiences.
Everything we do, is to move you emotionally.
About us

6. Bangladesh is a small country with large population.
There are many occasions/ festive in our culture. Most
of our people are young and they love music. When they
listen music they prefer high volume with good sound
quality. The primary buyers are middle-income
consumers, ages 20 to 40, who want to listen to good
music but do not want to invest in expensive stereo
component equipment. They want to buy a complete
system produced by a name they can trust. They want a
system with good sound and whose look fits the decor
primarily of family rooms. Sales are expected to be
stable over the next few years.
Market Situation:

7. Product Situation:
Here the sales, prices, contribution margins, and net profits are shown for several past years
in table form. Row 1st in Table shows the total industry sales in units growing about 6%
(5.7%) percent annually until 2015, when demand declined slightly. Row 2 shows our
market share hovering around 8 percent, although it reached 10 percent in 2015. Row 3
shows the average price for our sound system rising about 5.7 percent per year. Row 4
shows variable costs-materials, labor, energy etc. rising each year except 2013. Row 5
shows that the gross contribution margin per unit the difference between price (row 3) and
unit variable cost (row 4) rose continuously and remained at 1500 in the latest year. Rows 6
and 7 show sales volume in units and in amount of money, and row 8 shows the total gross
contribution margin, which rose until the latest year. Row 9 shows that overhead remained
constant up to 2013 but it was double at 2014 & 2015 owing to an increase of
manufacturing Capacity. Previously our manufacturing capacity was 20,000 units and now
it is 50,000 units. To meet the increasing demand we have to increase our production
capacity. Row 10 shows net contribution margin that is increasing. Rows 11, 12, and 13
show marketing expenditures, on advertising and Promotion, sales force and distribution
and marketing research. Up to 2013 we have increased our expense but from 2014 we have
reduced our market research expense. Finally, row 14 shows net operating profit is
increasing year by year, a grate indication for running a successful business.

8. Variable 2011 2012 2013 2014 2015
Industry sales in unit 200000 220000 230000 240000 250000
Company market share 6% 7% 8% 9% 10%
Avg. price per unit 4000 4200 4500 4700 5000
Variable cost per unit 3200 3300 3300 3400 3500
Gross contributions margin
per unit
800 900 1200 1300 1500
Sales volume in unit 12000 15400 18400 21600 25000
Sales revenue 48000000 64680000 82800000 101520000 125000000
Gross contributions margin 9600000 13860000 22080000 28080000 37500000
Overhead 4000000 4000000 4000000 8000000 8000000
Net contributions margin 5600000 9860000 18080000 20080000 29500000
Advertising and promotions 1000000 1200000 1500000 1700000 1400000
Sales force and distribution 500000 550000 600000 620000 620000
Marketing research 1000000 1200000 1500000 1300000 800000
Net operating profit 3100000 6910000 14480000 16460000 26680000

9. Sony
15%
Panasonic
15%
Microlab
20%HI Volume
10%
others
40%
Market Share
Sony Panasonic Microlab HI Volume others
Competitive Situation:

10. Each competitor has a specific strategy and niche in
the market. For example Micro lab offers four models
covering the whole price range, sells primarily in
department stores and discount stores, and is a heavy
advertising spender. It plans to dominate the market
through product proliferation and price discounting.
Where Panasonic and Sony offers high priced sound
system. They produce expensive sound system for
high income people. They also provide stylist and
wireless stereo component equipment. They want to
dominate the market through product specification.

11. Our channel is to use selective distribution to sell through well-
known stores. During the first year we have added distribution
channels as our strategic partners. With the help of distribution
channel we aimed to cover the whole country within a short time.
Hi volume sells 37 percent of through appliance stores, 23 percent
through radio and TV stores, 10 percent through furniture store, 3
percent through department store and the rest through other
channels. Hi volume gives about a 5% extra benefits than what
other competitors give.
Distribution Situation:

12. The forces of macro environment are uncontrollable
forces. But still these elements must be adapted. In
Bangladesh political unrest is a big problem so as a
manufacturer we have to be careful to handle the
situation. Per capital income/ living standard in our
country is not so high still our economy is being strong
this is really a good indication for business. Distribution
of income is not fare but situation is improving. Huge
technological improvement is presently occurring in our
country. We have good adaptability to technology. Our
government helps to build Digital Bangladesh.
Macro environment Situation:

13. STRENGTH
 High quality
 Attractive
 Cost effective and cheap
 Easy and convenient to carry
 Knowledgeable Dealers
 Service network
WEAKNESS
 Not famous
 Low budget on Advertisement
 Short of technical advantages
 National brand
 Short of capital
OPPORTUNITY
 Increase in profit through increase in
sales
 Increase demand as Digital product
 Expansion through more production
 Consumer attraction
 Market growth rate
THREAT
 Abundant supply of Sound system
components
 Lot of competition
 International competitor
 New company are willing to start
SWOT Analysis:

14.  Should we stay in the sound system business? Can we compete
effectively? Or should we divest this product line?
 Should HI Volume continue with it’s present products, distribution
channels, prices and promotion policies?
 Should we switch to high growth channel? And also maintain
loyalty of our current channel partners?
 Should we change our practice based on the market analysis?
 Should we go for stylish and high performance product?
 Should we increase promotion/advertising expenses?
 Should we go for high price product?
Issue Analysis:

15.  HI Volume’s financial objective is to develop financial performance for each
department.
 Our financial objective is earn net profit of 30 million in 2016
 Our sales revenue target is about 150 million in 2016. Our net profit target
20% of sales revenue.
Break Even Analysis:
Monthly unit break even 667 UNIT
Monthly sales break even 3335000 TK
Assumptions
Average Per- unit sales prince 5000 TK
Average per- unit Variable cost 3500 TK
Estimated Monthly Fixed cost 1000000 TK
Financial Objectives:

16. Increase sales
Build brand awareness
Grow market share
Target new customers
Enter in new markets internationally or
locally
Improve stakeholder relations
Increase profit
Marketing Objectives

17. Here is Hi Volume’s game plan
 Target market: middle- to upper-income professionals, music lovers, educated,
urban and rural, both male-female, with particular emphasis on young buyers.
 Positioning: Using product differentiation, we are positioning as the most versatile,
convenient, value-added model for personal and professional Use.
 Product line: Add one lower priced model and one higher priced model.
 Price: comparatively low price than other brands.
 Distribution: Heavy in radio and TV stores and electronic appliance stores,
 Service: Quick and trustworthy service at any time and any places.
 Sales promotion: Develop a new advertising campaign that supports the positioning
strategy.
 Advertising: Increase the sales-promotion budget to develop a point of purchase
display and to participate to a greater extent in dealer trade shows.
 Research and development: increase expenditures by 10 percent to develop better
styling.
 Marketing research: increase expenditures by 10 percent to improve knowledge of
consumer- decision and process and to monitor competitor moves.
Marketing Strategy:

18.  Action Program
 Here is how Hi Volume will carry out its marketing strategy:
 February: Hi Volume will advertise in the newspapers that a free Head-phone
will be given to everyone buying a Sound system this month. Our consumer
proportion director, will handle this project at a planned cost of 55,000tk.
 April: Hi Volume will participate in the International Trade Fair in Bangladesh.
Our dealer promotion director, will make the arrangements. The expected
cost is 118,000tk.
 August: A sales contest will be conducted, which will award three Hawaiian
vacations to the three dealers producing the greatest percentage increase in
Hi Volume’s sales. The contest will be handled at a planned cost of 90,000tk.
 September: A newspaper advertisement will announce that consumers who
attend a Hi Volume store demonstration in the second week of August will
have their names entered in a sweepstakes. Twenty lucky winners will receive
free sound system sets. We will handle this project at a planned cost of
$50,000.

19. Any Question
?

20. Good Bye