Electronics Industry (Marketing Management)


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[ detailed report on the Promotional Strategies (Slide 22) can be found at: http://scr.bi/promotional-strategies ] Presentation on "Electronics Industry" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subject "Marketing Management"

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  • Source:Bargaining Power of Suppliers: http://blogs.intel.com/technology/2009/04/intel_unveils_new.php
  • Source:Threat of Substitutes: http://www.asus.com/Eee/Eee_Pad/Eee_Pad_Transformer_Prime_TF201/Threat of New Entrants: http://www.samsung.com/in/news/newsRead.do?news_seq=11782&gltype=localnews
  • Source:Analysis of Industry Competitors: http://www.gartner.com/it/page.jsp?id=1844915, http://www.gartner.com/it/page.jsp?id=1821731
  • Source:Position Defense: http://www.hp.com/hpinfo/newsroom/press/2011/111003xb.html, http://www.hp.com/hpinfo/newsroom/press/2011/110214xb.htmlMobile Defense: http://mashable.com/2011/10/25/apple-tv-set/, http://mashable.com/2010/08/11/apple-itv/Flanking Defense: http://www.indiamag.in/dell-launches-android-based-3g-smartphones-xcd28-and-xcd35-in-india.html
  • Source:Contraction Defense: http://www.chinadaily.com.cn/bizchina/2010-08/28/content_11218919.htmPre-emptive Defense: http://www.hdtvtest.co.uk/news/panasonic-plasma-tv-market-201102091020.htm, http://www.panasonic.co.uk/html/en_GB/7420871/index.html
  • Source:Frontal Attack: http://www.techgoondu.com/2011/09/10/lenovo-attacks-consumer-market-with-swanky-ideapad-u300s/Flank Attack: http://www.google.com/tv/, http://www.apple.com/appletv/, http://googleblog.blogspot.com/2010/05/announcing-google-tv-tv-meets-web-web.htmlEncirclement Attack: http://www.asus.com/Eee/Eee_Pad/Eee_Pad_Transformer_Prime_TF201/, http://event.asus.com/mobile/padfone/
  • Source:Bypass Attack: http://www.dnaindia.com/india/report_video-game-penetration-in-india-is-a-mere-3pct_1543478Guerrilla Attack: http://www.thinkambient.co.uk/thinkcling-clients.php?client=Nintendo&campaign=54, http://www.toytowngermany.com/lofi/index.php/t55140.html, http://inagorillacostume.com/2011/nintendo-ds-guerrilla-marketing-brain-teasers-on-bathroom-wall/
  • Source:Strategies for Followers: http://www.xenitisgroup.com/products.htm
  • Source:Strategies for Nichers: http://www.samsung.com/global/microsite/galaxynote/note/index.html?type=find
  • Source:Computing: http://www.apple.com/magictrackpad/
  • Source:Home Appliances: http://www.samsung.com/in/consumer/home-appliances/air-conditioner/split-air-conditioner/AS185TKCNSTL/index.idx?pagetype=prd_detail&returnurl=
  • Source:Entertainment: http://www.xbox.com/en-US/kinect
  • Source:New to the world products: http://www.columbia.edu/cu/computinghistory/610.htmlNew product lines: http://www.samsung.com/us/news/newsRead.do?news_group=productnews&news_type=consumerproduct&news_ctgry=pc&news_seq=11053Repositioning: http://www.sony.co.in/productcategory/it-pc-series-vpce
  • Source:Addition to existing product lines: http://www.dell.com/content/topics/topic.aspx/global/shared/design_studio/design_studio_3?c=us&cs=19&l=en&s=dhs&redirect=1Improvement and revision of existing products: http://store.apple.com/us/browse/home/shop_mac/family/macbook_proCost reduction: http://arstechnica.com/apple/news/2009/06/arswwdc-apple-revamps-entire-notebook-line-lowers-prices.ars
  • Sources:Lenovo Price: http://www.google.com/products/catalog?hl=en&q=lenovo+ideapad+u300s+prices&client=firefox-a&sqi=2&cid=2805855480715509947&ei=j8zbTtqnJYPBkgXwuMGaAQ&ved=0CA0QtRI
  • Sources:Prices: http://shopping.yahoo.com/laptops/
  • Sources:Apple: http://www.apple.com/retail/upperwestside/Dell: http://www.dell.com/us/p/laptops?~ck=mn
  • Sources:Dell: http://www.engadget.com/2007/05/24/wal-mart-set-to-sell-dell-desktops-in-june/
  • Why 1984 won't be like 1984: http://bit.ly/sRHSF8 Think Different: http://bit.ly/sGdvDnThe Computer is Personal Again: http://bit.ly/usjuttWelcome To Your Studio: http://bit.ly/uw23XsFor Those Who Do: http://bit.ly/ter4d6
  • Electronics Industry (Marketing Management)

    1. 1. Electronics Industry Presented by – Shabbir Akhtar (PGPM 10, Globsyn Business School – Global Campus)Electronics Industry
    2. 2. Porter’s Five Forces• Bargaining Power of Buyers: The price of laptops were very high initially but, with sufficient information about the products reaching the customers before they make the purchase, proactive action is taken by them• Bargaining Power of Sellers: Intel supplies processor chips to most computer manufacturers, giving them the power to get the manufactures to place their badges on each product that is sold by themElectronics Industry
    3. 3. Porter’s Five Forces• Threat of Substitutes: Tablets are deemed to be a substitute of notebooks and with products like Asus Transformer Prime coming with a keyboard dock to improve its effectiveness, the threat is increased further• Threat of New Entrants: When an established company with a huge brand equity like that of Samsung’s entered the netbook and notebook market, it was a considerable threat to the present playersElectronics Industry
    4. 4. Porter’s Five Forces Analysis of Industry CompetitorsElectronics Industry
    5. 5. Defense Strategies• Position Defense: HP, being the market leader still acquires other companies to improve its position• Mobile Defense: Apple, after launching iMac, iPod, iPhone and iPad, move into peoples living rooms with Apple TV and might launch a Smart TV running on iOS in 2012• Flank Defense: Dell flanked into smartphones as HP started to challenge its position as the number one company in worldwide PC salesElectronics Industry
    6. 6. Defense Strategies• Contraction Defense: Though Haier is a market leader in China and Globally, its presence in India is limited due to stiff competition from the other multinational companies in the geographical market• Pre-emptive Defense: Though Panasonic was the leader in the plasma TV market, according to a report from earlier this year, it launched its smart TV – VIERA – to stay ahead of the oncoming competitors, Samsung and LGElectronics Industry
    7. 7. Attack Strategies• Frontal Attack: Lenovo is banking on the IdeaPad U300s to crack the high-end super-thin laptop segment, which was a space pioneered by Apple’s MacBook Air in 2008• Flank Attack: Google launched an attack on Apple’s STB flank with its own version of the web-based- TV product in 2010• Encirclement Attack: Asus is all set to attack Apples MacBook Air, iPad and iPhone with the Asus Transformer Prime and PadfoneElectronics Industry
    8. 8. Attack Strategies• Bypass Attack: Microsoft and Nintendo are competing in the US and UK gaming markets to gain more market share, but Sony is calmly capturing the growing Indian market and has created its brand equity amongst the consumer• Guerrilla Attack: Nintendo is well known for its guerrilla marketing campaigns and uses it effectively to increase the buzz about its upcoming productsElectronics Industry
    9. 9. Strategies for Followers AAMAR PC manufactures computer components like cases, SMPS, keyboard, mouse and speaker along with desktops and laptops, imitating the market leadersElectronics Industry
    10. 10. Strategies for NichersSamsung has launched a newproduct – the Galaxy Note – whichhas a niche market of its own. Eventhe promotional campaign of theproduct resonates that message– “Phone? Tablet?”. It is neither aphone nor a tablet but, a hybridproduct that has features of bothyet, of none. The product is priced atsub Rs. 35,000.Electronics Industry
    11. 11. Product Hierarchy: Computing• Need Family: Computing• Product Family: Computers, Calculator, Abacus• Product Class: Personal Computers• Product Line: Static Workstations• Product Type: Desktops• Brand: Apple iMac• Item: Apple Magic TrackpadElectronics Industry
    12. 12. Product Hierarchy: Home Appliances• Need Family: Home Appliances• Product Family: Refrigerators, Washing Machines, Air Conditioners• Product Class: Air Conditioning• Product Line: Efficient Installation• Product Type: Split• Brand: Samsung S Crystal• Item: Mood LampElectronics Industry
    13. 13. Product Hierarchy: Entertainment• Need Family: Entertainment• Product Family: Televisions, Music Systems, DVD Players, Game Consoles• Product Class: Consoles• Product Line: Without Display Unit• Product Type: Table Top• Brand: Microsoft XBOX 360• Item: KinectElectronics Industry
    14. 14. Differentiation and Positioning• Apple MacBook Pro: Differentiated for its “design” and “quality”, and positioned as a mark of “rebellion and empowerment”• HP Pavilion: Differentiated for its “durability” and “quality”, and positioned as a “powerful personal tool”• Lenovo IdeaPad: Differentiated for its “design” and “durability”, and positioned as “DO machine for the DOers”Electronics Industry
    15. 15. Differentiation and Positioning• Asus Transformer Prime: Differentiated for its “design” and “features”, and positioned as “the first tablet with a quad-core processor”• Dell Studio: Differentiated for its “design” and “quality”, and positioned as a “tool of self- expression”• Sony VAIO: Differentiated for its “design”, and positioned as a “fashion accessory”Electronics Industry
    16. 16. New Product Categorization• New to the world products: The IBM 610 Auto-Point Computer was designed by John Lentz and announced in 1957• New product lines: Samsung entered the notebook and netbook market with comprehensive line of premium portables in 2008• Repositioning: Sony launched the VAIO E-Series laptops which come with vibrant & glossy colors with the campaign, ‘GO VIVID’ and Kareena Kapoor as brand ambassadorElectronics Industry
    17. 17. New Product Categorization• Addition to existing product lines: Dell Studio started offering over 100 designs for notebooks in 2009• Improvement and revision of existing products: Apple launched a faster MacBook Pro lineup with increased storage and Thunderbolt I/O support earlier this year• Cost reduction: In 2009, the entire MacBook line-up got price cuts, bringing pricing more in line with the competitorsElectronics Industry
    18. 18. Pricing Objectives and Methods• Lenovo: Pricing objective of the company is to maintain status quo and uses competition oriented pricing with premium pricesElectronics Industry
    19. 19. Pricing Objectives and Methods• Apple: Pricing objective of the company is to maximize profits and uses demand based pricing with skimming prices• HP: Pricing objective of the company is to maximize market share and uses cost based pricing with promotional and bundled pricesElectronics Industry
    20. 20. Distribution Strategies Zero-level Exclusive• Apple: The company uses zero- level exclusive distribution strategy and sells its products only through its own retail and online stores• Dell: The success of Dell has been its impressive model of zero-level distribution channel -- selling customized computers directly to customers through online storesElectronics Industry
    21. 21. Distribution Strategies One-level Selective• Dell: With competitors moving to online selling of products, Dell responded by moving into one- level selective distribution and started selling Dimension PCs and Inspiron notebooks through Wal- Mart and Sam’s Club in 2007• HP: Uses one-level selective distribution strategy complemented with smart partnerships with the retailersElectronics Industry
    22. 22. Promotional Strategies Five Ms: Mission + Money + Message + Media + Measurement• Apple: Why 1984 wont be like 1984• Apple: Think Different• HP: The Computer is Personal Again• Dell: Welcome to Your Studio• Lenovo: For Those Who DoElectronics Industry
    23. 23. Thank youElectronics Industry