MARKETING PLAN FOR ORANGE INC.

SUBMITTED TO: PROF. RADHAKRISHNA

SUBMITTED BY: ANKITA MISHRA JAYASHREE KOTAGI SHAINIKA MURTHY SHILPI SARKAR SUMALYA CHAKRABORTY

TABLE OF CONTENTS

1. Executive summary..03 2. Company description...03 3. Strategic focus and plan...04 3.1 Mission.04 3.2 Goals04 3.3 Core competency and sustainable competitive advantage..04 4. Situation analysis.05 4.1 Company analysis05 4.2 Customer analysis....06 5. Product market focus...06 5.1 Marketing and product objectives...06 5.2 Target market..07 5.3 Customer value proposition07 5.4 Point of difference..08 6. Marketing program.08 6.1 Product strategy..08 6.1.1 Product line..08 6.1.2 Unique product quality.08 6.3 Price strategy09 6.4 Promotion strategy...10 6.5 Distribution strategy.10 7. Five year projections11 8. Implementation plan11 9. Evaluation and control.12

1. EXECUTIVE SUMMARY Orange Incorporation is into the microcomputer business and has introduced two new brands Securus and Optimus targeted at the Workhorse and the Innovators segment respectively. The two brands will be sold through company-owned sales offices located in Chicago, Berlin and Rome. The products will not be sold through the retail stores. The marketing strategy will be tightly focused on direct sales to business customers. Orange Inc is competing with Masstech, Innovatus Computing and Globosoft Computers Ltd. in the Workhorse segment and Innovatus Computing and Graph Infosystems Ltd. in the Innovators segment. The brands were designed keeping in mind the interest of each segment like ease of use for the workhorse segment and high performance for the innovators segment.

2. COMPANY DESCRIPTION Orange Inc was started by Ankita Mishra ,Jayashree Kotagi, Shainika Murthy, Shilpi Sarkar and Sumalya Chakraborty to manufacture and market a unique line of microcomputers for business markets. Accordingly the company has hired highly qualified people from similar industries having sufficient experience in the specific roles and is ready to pay them compensation which is slightly above than the industry standards. The various personnel who have been given the job roles are as follows:

RESPONSIBILITIES Officer Name JAYASHREE KOTAGI SHAINIKA MURTHY SHILPI SARKAR ANKITA MISHRA SUMALYA CHAKRABORTY Primary Responsibility VP-Finance VP-Brand Management VP-Sales Management VP-Advertising President-Overall Leadership Secondary Responsibility VP-Marketing Research VP-Advertising VP-Brand Management VP-Sales Management VP-Finance

3. STRATEGIC FOCUS AND PLAN The strategic focus and plan mainly deals with the mission, the goals and the core competency of Orange Inc. 3.1 Mission statement for Orange Inc Orange Inc. is committed to bringing the best personal computing experience for creative professionals around the world through the invention, development and manufacture of the industrys most advanced computer systems. 3.2 Goals The main goals of Orange Inc are: i) ii) iii) Focus on smaller high margin segments Focus on geographic markets with highest potential demand Establish brand image and brand loyalty in the market by giving maximum importance to quality. 3.3. Core Competency and Sustainable Competitive Advantage Orange Inc believes that its core competency lies in the ease of use of its products and their high performance. Hence Orange Inc has entered the Workhorse segment. Also it wanted to manufacture a different variety of PCs which would help in handling large computational problems faced by many and wants to use the latest technology as far as possible. This made Orange Inc to enter the Innovator segment. However overall the core competencies of Orange Inc can be summarized as: i) ii) iii) High performance and ease of use. Flexible rugged products with capacity of handling large computational problems. Made for the common man.

4. SITUATION ANALYSIS Present condition of the PC-Manufacturing Industry: A market research plan was brought by Orange Inc before they went ahead with the actual sales to gauge the potential demand in the various market segments. The Competitors of Orange Inc were i) Masstech ii) Innovatus Computing iii) Graph Infosystems limited iv) Globosoft Computers limited From the results of the marketing survey the following information could be inferred about the industry. In the Workhorse segment maximum demand existed for Masstech and Innovatus Computing followed by Orange Inc. In the Innovators segment Masstech and Graph Infosystems were leading. Overall total demand was least for Orange Inc as per the results of the Marketing research report which raises significant concerns. The industry was as such fragmented with various players entering various market segments.Workhorse, Innovators & Cost Cutter segments were mostly entered by all the competitors and stiff competition existed in the same. Post test market results after actual implementation it was found that in the Workhorse segment, maximum demand existed for Innovatus Computing and Globosoft Computers Ltd. Innovatus Computing outperformed all the other players in the Innovators segment by creating a blue in red with staggering results. Though with a significant division Orange Inc held the second position. 4.1 Company Analysis: Orange Incs products compete in the Workhorse and Innovators segments in the U.S and European markets. The companys commitment towards bringing the best computing experience for creative professionals around the world through the invention, development and manufacture of the industrys

most advanced computer systems will ensure that the company stays ahead in terms of competition and market share. The company does not sell through retail outlets and focuses only on direct selling. Orange Incs brands Securus has been well received by the workhorse segment because of its low price and distinctive features. One of the differentiating factors of Orange Incs products are that they make use of green technology which makes them environment friendly. 4.2 Customer Analysis: Workhorse segment: The Workhorse segment is the largest group of customers. They want an easy to use PC for office workers. It should also have a modest price. Innovators segment: The Innovator segment is a small segment that needs a computer to handle large computational problems (accounting, inventory management, engineering). This segment wants the latest technology and will pay a small premium for this high performance. 5. PRODUCT MARKET FOCUS Our marketing and product objective is to start of and concentrate on the work horse and innovators segment. These segments were chosen, so that we could cater to the needs of the low end and high end customer without changing too many characteristics of the product and prices though different will not vastly vary. 5.1 Marketing and Product objectives Current market We have currently opened sales offices in Chicago ,Berlin and Rome. Chicago and Berlin offices were opened in the first quarter and have been operating ever since. We opened offices in Chicago and Berlin because they had the best market for innovator and workhorse segment. New market Sales office has been opened in Rome as there was a great demand of 4,529 in the work horse segment, while an equally good demad of 2,711 for the innovatus segment. Since our business was doing well in the work horse segment, we decided to concenrate there. Products The products we choose for the 2 market segments were Securus and Optimus , while Securus is for the workhorse segment,Optimus is for the innovators segment.The features for Securus initially 6

included basic features like standard desktop,standard hardisk size,mid range processor etc and the core requirements like safety and ease of use required by this segment were not compromised upon. Optimus for the innovatus segment had better features like High capacity hard drive, Business graphics software, Engineering graphics software, High performance processor etc New Products Since our competitors products were priced much higher than our, we saw that our customers were willing to pay more for our products .Hence improvised our products with better features and increased the prices .Our new products were Securus 1.1 which had features like high capacity hard drive, accounting/bookkeeping software, 15" monitor for desktop, mid-range processor, expansion slots for adding new devices etc Optimus Pro which had features like very high capacity hard drive, business graphics software, engineering graphics software, web design software, 19" high resolution monitor for desktop, high performance processor etc 5.2 Target Market We choose the Innovators and Work horse segment as their needs were close to each other , besides we wanted to target 2 niche set of customers. The other reason for choosing these segments was the market size available, the innovators had a huge market size of 3284 in Berlin and 2692 in Chicago.The Workhorse has a market size of 5672 in Chicago and 4922 in Berlin. The innovators segment had most important needs like fast access to graphical images , quick response speed , fast computer links, ability to handle large tasks.The Workhorse segment needs were safety , security, ease of use, low price etc. 5.3 Customer Value Proposition To give our customers an advantage over our competitors we concentrated on product features, we made sure our customers were always beyond satisfied to own our products. The distictive competitative advantages we concentrated on were To be the market share leader To be the high service provider in the market

To provide the most reliable product on the market To make sure we provided all the above mentioned advantages we concentrated more on the product, we made sure the product satisfied all the customers needs even if it meant incuring more costs. 5.4 Point of Difference To make sure we provided the above mentioned advantages we provided service support in each market , and also to make sure the services provided were upto standards we quartely training to the sales and support staff. The quarterly training was provided only for the staff catering to the innovators segment as they were more demanding and needed better sales force to drive sales.

6. MARKETING PROGRAM The four marketing mix elements for the products Securus and Optimus are detailed below: 6.1 Product strategy: Orange Incorporation has two brands Securus and Optimus targeted towards the Workhorse segment and Innovators segment respectively. 6.1.1 Product Line: Securus 1.1 is the first product to be launched under the Securus brand. Optimus Pro is the first product to be launched under the Optimus brand.

6.1.2 Unique Product quality: Securus 1.1 is the ultimate desktop workhorse with features that promote a hassle-free experience. One advantage of Securus 1.1 is the LED backlit display. Unlike displays that take up time to warm up before they reach maximum brightness, an LED backlit display is instantly on and uniformly bright which is easy on the eyes. It also lets the user finely tune the display to suit the ambient light even the dimmest room. The user can also have the perfect cord-free setup with the wireless mouse. Besides these, theres no shortage of ports on the Securus 1.1 with 4 USB ports which enables the user to simultaneously work on multiple things.

Optimus Pro is the all-in-one wonder with multiple features that enable high performance. Powered by quad-core processors, the Optimus Pro is ultrafast and ultraflexible. with advanced HD graphics processors, Optimus Pro can perform upto 3 times faster. The latest wireless technology in Optimus Pro makes it effortless to connect to a Wi-Fi network. It automatically finds available networks and lets the user join them with a click. Bluetooth wireless technology is also built in, so the user can use their favorite wireless accessories right out of the box. Both Securus 1.1 and Optimus Pro make use of green technology which makes them environment friendly. 6.2 Price strategy: Securus 1.1 is priced at $3040 for a 15 display screen in both US and Europe markets. Optimus Pro is priced at $3940 for a 15 display screen in both US and Europe markets. The significant high performance advantage that Optimus Pro has over Securus 1.1 justifies this pricing strategy. 6.3 Promotion Strategy: Securus 1.1 Optimus Pro Key promotion features for Securus 1.1 are detailed below: Print media: Targeted newspaper and magazine ads can be effective brand builders and acquisition tools. The ads of Securus 1.1 will be placed in business newspapers and journals, trade and technology magazines which will ensure wider coverage. Television: Featuring ads of Securus 1.1 on TV will offer a unique combination of audio and visual impact and audience reach. Outdoor: Billboard ads can be a cost-effective way to reach out to a larger number of potential customers. Event marketing: Promoting Securus 1.1 through live activities such as seminars, company-sponsored meetings and trade shows will help in qualifying leads and enhancing customer relationships. Website: The website will enable customers to have complete and up-to-date information about Securus 1.1 and also provide prospects an easy way to contact the company.

Search Engine Optimization (SEO): This will ensure that the web page of Securus 1.1 appears at the top of search engine results when certain keywords or phrases such as Securus, Orange Incorporation, Securus Orange Inc, etc are typed in search engines.

Key promotion strategies for Optimus Pro are listed below: Print media: The ads will be placed in business newspapers, magazines, journals, trade and technology magazines which will enable wider coverage. Television: the ads of Optimus Pro will be featured on TV which will ensure a wider audience reach. Outdoor: Billboard ads will be placed for Optimus Pro in order to reach out to a larger number of potential customers. Event Marketing: Live activities such as seminars, company sponsored meetings and trade shows will be held. Partnerships: Orange Incorporation will tie up with corporate giants to create a customized webpage for each of them that will be accessible only to the employees of those companies. Collaterals and giveaways: Business cards, brochures, mouse pads, etc will be given away to make an impression. Email marketing: This will provide a quick and inexpensive way to inform customers and prospects about offers in turn strengthening customer relationships. Website: The website will provide the product details, offers, etc. Search Engine Optimization (SEO): this will ensure that the web page of Optimus Pro will appear at the top of search engine results. 6.4 Distribution: Both Securus 1.1 and Optimus Pro will be distributed through direct selling. Both the products can also be purchased online through the company website.

10

7. FIVE YEAR PROJECTIONS

Projections Financial Element No of PC's sold Net Sales Gross Profit Operating Expenses Operating Profit/Loss Actual
121 444340 130439 788339 -1529111

Q5
300 1110850 247834.1 804105.78 -556271.68

Q6
760 2777125 470884.79 844311.069 -373426.28

Q7
1900 6942812.5 894681.101 886526.622 8154.47855

Q8
4800 17357031.3 1699894.09 930852.954 769041.138

8. IMPLEMENTATION PLAN Introducing Orange Incs products to top cities in U.S. and Europe is a complex task and requires that creative promotional activities gain consumer awareness and initial trial among the target market. The anticipated rollout schedule to enter these markets is as follows: Roll out schedule to enter new US and Europe markets: Quarter New markets added Cumulative markets Cumulative predicted market share 4 5 6 7 8 1 2 5 3 2 3 5 10 13 15 2% 20% 40% 50% 60%

The diverse demand for the products will be monitored carefully to assess whether minor modifications may be required in Orange Incs products. 11

9. EVALUATION AND CONTROL Monthly sales targets have been set for Orange Inc for each market. Actual sales will be compared with these targets and tactical marketing programs modified to reflect the unique sets of factors in each market. The speed of the roll out program may increase or decrease depending on Orange Incs performance in the successive markets it enters.

12