Sumit Saxena IIM J Project Market segmentation.pptx
- 1. Marketing Strategy for the Launch of New Mobile Handset Comprehensive Plan for Market Penetration and Growth Chandan Chauhan Saumitra Mishra Sumit Saxena Punit Bharadwaj
- 2. Executive Summary • Consumer Needs: Battery life, camera quality, performance, affordability • Value Proposition: Innovative features, reliability, affordability, customer support • Market Analysis: Trends, economic factors, technological advancements • Competition: Major players, market share, SWOT analysis • STP: Segmentation, targeting, positioning • Branding and Pricing: Brand identity, competitive pricing • Distribution and Promotion: Channels, promotional strategies • Financial Projections: Cost structure, revenue, profitability, break-even analysis • Timeline: Key milestones and financial projections
- 3. Consumer Need or Problem Statement Battery Life: Problem: Many consumers experience frustration with short battery life, especially with heavy usage throughout the day. Need: Longer-lasting batteries that can support extended use without frequent recharging. Solution: Highlight the handset's advanced battery technology that offers extended battery life, fast charging capabilities, and energy-efficient performance. Camera Quality: Problem: Consumers demand high-quality cameras for capturing photos and videos, especially for social media sharing and personal memories. Need: High-resolution cameras with advanced features like optical zoom, low-light performance, and AI enhancements. Solution: Emphasize the handset's superior camera technology, including multiple lenses, high megapixel count, and AI- driven photography features. Performance: Problem: Slow performance and lagging can hinder the user experience, especially for multitasking, gaming, and running demanding applications. Need: Fast processors, ample RAM, and efficient software optimization for smooth and responsive performance. Solution: Showcase the handset's powerful processor, high RAM capacity, and optimized software that ensures seamless multitasking and gaming experiences. Affordability: Problem: High prices of premium smartphones can be a barrier for many consumers, especially those on a budget. Need: Affordable options that do not compromise on essential features and quality. Solution: Highlight the handset's competitive pricing, offering high-end features at a mid-range price point, making it accessible to a broader audience.
- 4. Value Proposition Innovative Features: Advanced Camera Technology: High- resolution cameras with multiple lenses, optical zoom, and AI-driven enhancements for superior photography and videography. AI Integration: Smart features like AI-powered voice assistants, facial recognition, and personalized user experiences. Reliability: Durable Build Quality: Robust materials and design that ensure longevity and resistance to wear and tear. Long Battery Life: Extended battery performance with fast charging capabilities, ensuring the handset lasts throughout the day. Affordability: Competitive Pricing: High- end features offered at a mid-range price point, making the handset accessible to a broader audience. Value for Money: Exceptional performance and features at a price that provides great value compared to competitors. Customer Support: Excellent After-Sales Service: Comprehensive warranty, responsive customer service, and easy access to support centers. User-Friendly Policies: Hassle-free returns, exchanges, and repair services to enhance customer satisfaction.
- 5. Market Environment Analysis Trends: 5G Adoption: Increasing demand for 5G-enabled devices as consumers seek faster internet speeds and improved connectivity. Eco-Friendly Materials: Growing consumer preference for environmentally sustainable products, including handsets made from recycled or eco-friendly materials. AI Features: Rising interest in smartphones with AI capabilities, such as voice assistants, facial recognition, and personalized user experiences. Economic Factors: Consumer Spending Power: Analysis of disposable income levels and purchasing power of the target market. Economic Stability: Impact of economic conditions on consumer confidence and spending behavior. Technological Advancements: Innovation in Mobile Technology: Rapid advancements in smartphone technology, including improvements in processors, cameras, and battery life. Integration of IoT: Increasing integration of smartphones with other Internet of Things (IoT) devices, enhancing the overall user experience.
- 6. Competition Analysis Major Players: 1.Apple: Known for its premium devices, strong brand loyalty, and ecosystem integration. 2.Samsung: Offers a wide range of devices from budget to premium, known for innovation and quality. 3.Xiaomi: Competitive pricing with high-end features, strong presence in emerging markets. 4.OnePlus: Focuses on performance and value, appealing to tech enthusiasts.
- 11. Segmentation • Demographics: Age, gender, income, occupation. • Psychographics: Lifestyle, values, interests. • Behavioral: Usage patterns, brand loyalty, purchasing behavior. Survey done
- 12. Market Segmentation /Clustering • Data Collection Method: Conducted research on primary data set obtained from Survey Methodology. This survey consist of 23 questionnaire and 232 individual have participated in this question. Based on the rule of thumb (n²), where "n" refers to the number of questions. • ETL: Used Excel to clean Data and Transform data. Have used Likert scale is measure survey participants' opinions, attitudes, motivations, and more. Loaded the transform data into IBM SPSS. • Analysis Methods: Average Lineage Clustering and K-means were used to analyse the data. Additionally, have tried to find a link between features and get an insight on Market segmentation.
- 13. Data Analysis We have collected data from 233 respondents those are mobile handset owners or those willing to purchase a new handset . There are 21 Questions in the questionnaire and we tried to collect 450 samples from target group 500 individuals . The research work still in progress and so far 233 respondents have shown their interest to share their interest for the same . We have used attributes both qualitative and quantitative in nature . .
- 15. Data Analysis Age Continuous Data Price Range(Final after Offer ) Interval No of Mobile own Continuous Data Usage for :Social Media Likart scale Usage for : Photo & Reels Likart scale Usage for : Gaming Likart scale Usage for : Shopping Likart scale Productivity Self /Professional Likart scale Feature :Camera Likart scale Performance Likart scale Operating System Likart scale Scale Values for Usage /Features 5 Most Important /Mandatory 4 Very important 3 Important 2 Neutral 1 Less Important Scale Price Range for Handset (Rs/-) 5 More than 41,000 4 31 K to 40K 3 21 K to 30 k 2 11 k to 20 k 1 Less or equal to 10K
- 16. Data Analysis Variable Type Storage capacity Continuous Data Battery Life Interval Brand Interval Price of handset Likert scale Screen Size Likert scale Promotion Offer Discount /Sale etc Likert scale Feedback /Review importance Likert scale Advertisement mode Likert scale Scale Values for Advertisement 11 TV 12 Social Media 13 Internet Adv 14 News Paper Scale Promotion 5 Price Drop 4 Discount 3 Sales 2 Bundled offer 1 Less Important /mere need
- 17. Data Analysis Cluster techniques used : 1)Hierarchical Clustering to find out the number of cluster . 2)K-Means clustering to find out final clusters & ANNOVA Table 3)Business interpretation for various segments
- 18. Results & Findings Variables 1 SEGMENT 2 SEGMENT 3 SEGMENT Age 58 ( Senior ) 41( Mid age ) 25 ( Youth) Price Range 21K TO 30 K 21 TO 30K 11 K TO 20 K No of Mobile 1 1 1 U:Social Media 3 IMPortant 4 Very IMP 4 Very Imp U:Photo & Reels 4 4 4 Usage: Gaming 2 2 2 U: Shopping 4 3 3 Producitvity 4 VERY IMP 5 Most IMP 4 Very Imp Feature :Camera 3 3 3 Performance 4 4 4 OS 3 4 3 Sorage 3 3 3 Battery Life 4 IMPORTANT 4 4 Brand 3 3 3 Price 3 3 3 screen Size 3 3 3 Promotion Offer 4 Discount 4 Discount 4 Discount Feedback 2 2 2 Advertisement Eff 12(SOCIAL MEDIA) 12 12
- 19. • Cluster 1: Users in this group tend to be older (average age of 58) and prefer mid-range priced Smart phones. They typically use their phones for social media, photo and reels, shopping, and productivity. They value camera features, storage, battery life, and screen size. Advertisement effectiveness is also important for this group. • Cluster 2: Users in this group have a Mid age (41 years) and also prefer mid-range priced Smart phones. They have higher usage for social media, photo and reels, shopping, and productivity. They value performance, OS, storage, battery life, and screen size. Advertisement effectiveness is important for them as well. • Cluster 3: Users in this group are younger (average age of 25) and prefer slightly lower-priced Smart phones. They have high usage for social media, photo and reels, gaming, shopping, and productivity. They value camera features, storage, and promotion offers. Advertisement effectiveness is equally important for this group. Results & Findings
- 20. Positioning Tagline: "Innovation Meets Affordability." Messaging: Emphasize cutting-edge technology, superior performance, and value for money. Cutting-Edge Technology: Advanced camera, AI integration, superior performance. Superior Performance: Fast processors, ample RAM, optimized software. Value for Money: Competitive pricing, exceptional value. Reliability and Durability: Durable build, long battery life. Customer Support: Excellent after-sales service, comprehensive warranty.
- 21. Brand and Branding •Logo design for a mobile handset brand named Mango for the Indian market
- 22. Mango Mobile Values • Innovation: Cutting-edge technology and forward-thinking solutions. • Quality: High standards and reliable products. • Affordability: Exceptional value for money. • Customer Satisfaction: Excellent customer service and user-centric design. • Sustainability: Eco-friendly practices and responsible innovation. • Empowerment: Enhancing digital lives and ensuring accessibility.
- 23. Pricing • Strategies: Penetration pricing, value-based pricing, promotional pricing. • Panetration Pricing till Break Even . The Break even price as per CVP analysis • Competitive Analysis: Pricing comparison with competitor
- 24. Distribution • Channels: Online (e- commerce platforms, dedicated website), offline (retail stores, mobile network providers). • Exclusive tie up for launcing with Flipkart . • Global Reach: Expansion to international markets.
- 25. Promotion and Media Plan • Digital Marketing: Social media, influencer partnerships, online ads. Mostly Facebook Reels ,Advertisement Campaign and What's app Bulk Messaging • Traditional Marketing: Radio FM & local language Launch Launching Event: High-profile event to generate buzz. Newspaper Full Page adv. on launching Mix of National and local languages . • Public Relations: Engaging with tech bloggers and journalists.
- 26. Expected Demand & Future of Business • Initial Demand: Market research and pre-orders. • Scalability: Production capacity to meet demand spikes. • Innovation Pipeline: Continuous development of new features and models.
- 27. Financial Analysis • Cost Structure: R&D, manufacturing, marketing, distribution, customer support. • Revenue Projections: Sales forecast, pricing strategy, revenue calculation. • Profitability Analysis: Gross profit margin, operating expenses, net profit margin. • Break-Even Analysis: Break-even point calculation by CVP • Financial Projections Timeline: Q1 Year 1 to Year 2 Q4 projections
- 28. Financial Analysis • Variable Cost Structure : Rs/- 4500 Per piece • Revenue Projections: Rs/- 6000 Per piece x 1000 order first time Total Sales Revenue = Rs/- 60,00,000 Contribution Margin = Rs/- 1500 per unit • .Fixed Cost =Rs/- 3,50,00,000 (Administrative +Marketing) • Break-Even Analysis: Break-even point calculation by CVP • BEP = Fixed Cost /CM = 23,334 units • Expected time frame to cover it in 2 Financial Year to achieve BEP
- 29. Conclusion • Summary: Recap of the marketing strategy and its components. • Future Outlook: Long-term sustainability and growth plans.
- 30. Q&A Thank you !