Creative Technology, a locally-based company in portable digital devices, aims to provide gadgets of the best quality to consumers’ at the most affordable rates. However, Creative has not been performing up to expectations in the MP3 market. (Creative's ranked 3rd in the US market and 2nd in Singapore's market, lagging behind Apple and Microsoft)

Our group have chosen Creative's new product, Zii Egg Plaszma, as our product. Based on our current market positioning and Zii Egg Plaszma's potential, we aim to boost Creative's total sales revenue worldwide to $100 million.

To achieve this target, our group has come up with a marketing plan which evaluates Creative's market positioning, formulate strategies, implementing and finally reviewing of the plan. Information for our plan are gathered through the approach of convenience survey to provide us with a clearer indication of the targeted consumers' age and the ideal product features which they would prefer; and also primary and secondary research gathered.

Our marketing plan is prepared for the period from 1st Aug 2009 to 31st July 2010.Within this period, we hope to achieve the most desired results with reference to the sales forecast predicted.

2. Introduction

Creative Technology was founded in Singapore in 1981 by Mr Sim Wong Hoo. It was incorporated as a private limited company on 18 July 1983. Being the current world leading provider of multimedia hardware, software and digital entertainment products for personal computers, and Internet, Creative is also well known for its Sound Blaster sound cards and for initiating the revolution of multimedia. Focusing in product innovation in the audio and PDE area enabled Creative to have won a number of international awards throughout the years.

Currently, products in Creative are marketed to consumers through a broad global network including customary marketing channels, original equipment manufacturers (OEMs) and Internet.

Creative is established by several shareholders with the CEO Mr Sim Wong Hoo the main shareholder and following with Citibank Nominees Singapore Pte Ltd the next biggest shareholder. Being placed globally, it enables Creative to reach out to all parts of the world effective and efficiently.

3. External Environment

3.1 Market Demographic Environment

The consumers of the MP3 players are generally made up of Singapore's 'Generation Y', which makes up the 2 age group 15-24 and 25-34 as shown above in Table 2. This 2 age group comprises of students and young working professionals who frequently listens to music while travelling, studying or even sleeping. Parents of 'Generation Y' are the 'Baby boomers' and 'Generation X'; which are the age group 45-54 and 35-44 respectively. Parents provide purchasing power to 'Generation Y' who needs/wants the MP3 player but could not afford it as they do not have spare cash.

Some characteristics of 'Generation Y' are:

· Young, well-educated, family-centric, and trend-conscious

· Idealistic, optimistic, achievement-oriented and flexible

· Tech-savvy; like to multi-task

· Craves attention in forms of feedback, guidance and rewards

3.2 Market Economics Environment

From year 2007 to year 2008, Singapore's median household income and average household income has raised from $4880 to $5480 and $6890 to $7750 respectively (Table 1). Due to the healthy growth in household incomes from 2007 to 2008, more households are in a higher income bracket, e.g. 39% of employed households earned a monthly income of at least $7000 in year 2008 as compared to 33% of employed households in year 2007(Chart 2).
Thus from the information provided above, we infer that Singapore saw an increase in income with more people are rising from the working-class to the middle-class income group and therefore increasing the purchasing power of consumers. A middle-class consumer is defined as people who are careful with their spending but still able to afford luxury goods whereas a working-class consumer is defined as someone makes enough to pay the basic necessities with minimal savings.

3.3 Market Technological Environment

Technological forces provide new markets and new opportunities through the creation of new products/technology and also increase efficiency of automation, computer, etc. Creative has acquired ZiiLABS, a leader in a media-rich application processors, advanced software and enabling hardware platforms, which lead to the creation of the world's first handheld stemcell computer and many other innovations which would help give Creative a competitive advantage over its competitor.

4. Internal Environment

4.1 Internal Resources

· Financial Resources (Assets)

Based on Creative's Financial Data which ended on 30^th June 2009, Creative has a total asset of USD$454,858.000 and a healthy cash flow balance of USD$250,551,000.

· Labour Resources

Creative Technology headed by founder, CEO Mr. Sim Wong Hoo, has thousands of employees in their stores and branches around the world. They have Creative Labs (which is the sales, marketing, training and customer support organisation for Creative Technology) in US, Europe and Asia which totals to 5, 11 and 6 respectively. Creative have 3 headquarters, its Worldwide Corporate headquarters in Singapore (Asia) with a labour strength of 1567, US headquarters in Milpitas, California and European headquarters in Ireland. However, the main plant/lab for Creative situated in Milpitas, USA called ZiiLABS.

ZiiLABS was incorporated in January 2009 between 3Dlabs and Personal Digital group of Creative Technology. ZiiLABS, with over 800 R&D engineers today, invested US$1 billion and 10,000 man-years in media processing solutions and has offices in the UK, China, USA and Singapore.

The Zii Platform, which is developed by ZiiLABS, is Creative’s major development and current Direction they are heading towards. At the heart of ZiiLABS technology is the breakthrough development of the StemCell Computing architecture which is the key to competing with their rivals in the Personal Digital Entertainment area.

4.2 Potential Market

With Creative Zii Egg Plaszma, we have a touch-screen product which offers a cleaner look, increased screen size and a new way of manipulating data. These new features appeals mainly to the tech-savvy ‘Generation Y’ people for its design and applications as reflected by Apple iPod’s success. By having a product which rides on the popular trends of society, it allows us to compete on a level ground in the MP3 market, which Apple is currently dominating, which our ultimate aim is to increase our market shares.

4.3 Competitors

Manufacture	Apple Inc.	Microsoft

Headquarters	Cupertino, California, USA	Albuquerque, New Mexico
Founded	1^st April 1976	4^th April 1975 (1975-04-04)
Product	Apple iPod Touch 2^nd Gen	Zune HD

Market Share	30%	14%
Currently Availability	Worldwide	Only available in United States, United Kingdom, France, Italy, Germany, Ireland, and Spain.
Method of buying	Official retail store (Epic Store) Pre-order online	Retail Store Pre-order online
Online Service Provided	iTunes Store & Apple App Store	Zune Marketplace
Operating system	iPhone OS	Windows CE
Screen Size	3.5 inch(diagonal) widescreen Multi-Touch display	3.3 inch OLED colour display capacitive touch screen
Connectivity	USB 2.0 / Wi-Fi/ Bluetooth 2.1+EDR/ HDMI	USB / Wi-Fi/ HDMI
Audio support	AAC (8 to 320 Kbps), Protected AAC (from iTunes Store), MP3 (8 to 320 Kbps), MP3 VBR, Audible (formats 2, 3, and 4), Apple Lossless, AIFF, and WAV	AAC-LC (mp4, .m4a, .m4b); .m4a and .m4b files without FairPlay DRM up to 320 Kbps; MP3 (.MP3) up to 320 Kbps; WMA(.wma) up to 384 Kbps
Video Support	480p and 576p; up to 2.5 Mbps peak video bit rate; support m4v, .mp4, and .mov file formats	720p; up to 10.0 Mbps peak video bit rate; support WMV and MP4/M4V
Playback Time	Music playback time: Up to 36 hours Video playback time: Up to 6 hours (When fully charged)	Music: Up to 33 hours Video: Up to 8.5 hours (Wireless off)
Memory Storage	Internal Memory of 8GB, 16GB, 32GB	Internal Memory of 16GB, 32GB
Pricing	US$199 for 8GB US$249 for 16GB US$299 for 32GB	US$219.99 for 16 GB US$289.99 for 32 GB
Level Of Threat	High level: Being one of the largest MP3 market in Singapore, Apple has been a popular brand amongst the population of teenagers and young adults.	Low level: As it is not sold in Singapore, it is not of a major concern to us.

5. Internal Analysis

5.1 SWOT Analysis

5.1.1 Strength

Creative Zii Egg Plaszma offer better specifications [SWOT table] over its competitor.
Creative is an internationally renowned company famous its Sound Blaster sound cards and now drives the digital entertainment on the PC platform.
Creative can leverage on its leading-edge audio technology, huge user base and strong brand name to expand into Personal Digital Entertainment (PDE) market.
Creative is widely recognized as a global leader for product innovation in the audio and PDE segments, offering consumers a complete, high quality digital entertainment experience through Creative's hardware, software applications and services.

5.1.2 Weaknesses

As Zii Egg is in the developing stages, games and applications are not as good as other competitors', such as major competitor Apple's iPod Touch which has many applications that appeal to consumers, e.g. interactive games.
By venturing into Digital Consumer production, the segment which is not innovated by them, Creative will constantly lose market share to competitors like Sony and Zune.
Creative's branding in terms of MP3 is not as well received as other popular brand like Apple or Sony.

5.1.3 Opportunities

With its competitive advantages, the device can aim to have a larger share of the MP3 market that is dominated by Apple and other major players.
Using its partnership, acquisition & joint ventures, Creative can re-enter the MP3 market with ease and build customer loyalty through its renowned reputation.

5.1.4 Threats

Besides people who are tech-savvy or those constantly updated with technology, there is little consumer awareness about the offerings of Android OS and Plaszma OS.
Due to the fast-paced technological environment, Creative needs to constantly provide constant updates to its software.
Competitors are able to copy Zii Egg's design and functions and make improvements on it, thus Creative needs to constantly look at consumers' needs/wants and how they can further improve on the product to suit consumers' need, wants and taste in order to maintain and build on the market share.
Through technological advancement in the mobile industry, handphones are increasingly doubling up as an MP3 player. This leads to a shrinking of the competitive MP3 market.

6. Mission Statement and Objectives

6.1 Mission Statement

Creative's mission is to expand our leadership role in the lifestyle Personal Digital Entertainment market, using groundbreaking technology and leading-edge designs for not just the technically savvy consumers, but for everyone who enjoys entertainment. With strong focus on our user-friendly interface, multiple features and cool industrial designs, the Creative brand is synonymous with lifestyle Personal Digital Entertainment.

6.2 Objectives

The company plans to:

6.2.1 Quantitative Objectives

Increase sales from US$466 million obtained for full fiscal year of 2009 by 43% for the full fiscal year of 2010 especially in the area of Personal Digital Entertainment (including the factoring of regaining of losses and sales to hit 5% of market share)
Rebuild Creative’s market share in the MP3 market to 5%, thus regaining third place from Microsoft and reducing the gap between Apple and Creative within a period of 12 months.
Expand consumer awareness in Singapore by 30% within the first year, through its launch of Creative Zii Egg Plaszma in the demographic market segment area, targeting the age group of 18 to 34 years old.
Achieve revenue of US$100 million for the 1^st quarter of the fiscal year 2010, as compared to the US$86 million collected in the 4^th quarter of the fiscal year 2009.

6.2.2 Qualitative Objectives

Build and increase awareness of its brand through Creative Zii Egg Plaszma with its 'stem cell' moniker.

7. Selection and Measuring of Target Market

7.1 Outline of Marketing Research

The marketing research involved collection, analysis, and reporting of data that is relevant to the current market situation of the MP3 industry. Planning was done carefully and systematically by defining the problem and objectives, developing a concrete research plan, implementing the plan, interpreting and reporting of the findings.

The purpose of a marketing research is to identify existing or potential markets that can emerge or be developed in the near future. Components of the market include competitors, e.g. Apple and Microsoft, supply and distribution chains, and by carefully examining these parts of the market, our company will then be able to position its product in the market effectively and efficiently.

7.2 Assessment of Potential Market

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Data from our survey done has reflected consumers’ considerations in areas of functions and features of the MP3. Apart from looking at the product as a music player, as much as 50% of consumers are looking out for additional features like ease of usage by including a touch screen feature, and the ability to connect to other multimedia devices via wireless-fidelity (Wi-Fi). On top of these, consumers also expect high sound quality and not just the ability to listen to songs or watch videos.

7.3 Market Segmentation (in relation to consumer behavioural aspects)

These factors led the team to dissect the market into multiple segments and by looking at them specifically, the team will then be able to tune and position the product in a way that generates low marketing cost and yet earns the most cash out of our consumers’ pockets. The market segments have been indentified to be geographic, demographic, psychographic and behavioural.

7.3.1 Geographic

Creative is a recognized local brand for products like sound blasters and MP3. Despite facing strong competition from foreign brands over the years, Creative manages to maintain significant market share in the local MP3 industry with consumption from local supporters.

As physical land area is small in Singapore, market penetration has already been made easier. Therefore, allocating resources in trying to reach out to all parts of Singapore, it is cost-efficient and productive.

7.3.2 Demographic

MP3, being a product of the technology age, is already a product of the crossroads between Generation X and Y. It tends to appeal to certain age groups more than the others. Consumers in the current market between the ages of 13 to 35 are receiving higher exposure to electronic gadgets. This is echoed in the results from our survey, where as much as 80% MP3 users belonged that the selected age group.

Out of this age group of people, the ones who are more highly educated and earning higher levels of income tend to be willing to spend on newly-introduced gadgets. At the same time, the younger consumers are more impressionable and can be easily persuaded to try new and exciting products, as supported with statistics from the survey, in which more than 75% of consumers expressed interest in our product at the mere mention of its features and functions.

Our product is designed to suit both men and women in looks, user-friendliness, and functionality, leading to the concept of portable music attractive to all gender.

7.3.3 Psychographic

Our product is targeted at tech-savvy trendsetters who are willing to take risks on new electronic gadgets and willing to spend time in configuring their devices to suit each and every of their personal preferences. These people could be potential and loyal customers of Creative, and if our product could successfully appeal to them, they can act as a bridge for us to reach out to adopters of trends

Being in a fast-paced urban living environment, ease of usage is one main characteristic all users of technological gadgets will look out for in purchasing new products. With open technology and no need for complication conversions of file formats, our MP3 Player allows consumers to enjoy the product at maximum convenience.

7.3.4 Behavioural

Our group has gathered that functions and quality are determining factors towards consumers’ decision to purchase an MP3 player. With similar or better quality, consistency, and functions, the product is offered at a generally lower price range compared to our competitors. The competitiveness in price and quality of our product could not only attract consumers who want to stretch their dollar, it can also bring back users who switch to other brands. In a long run, Creative would be able to build an image of durability and quality which would increase brand loyalty towards our product.

At the same time, we have gathered that function and quality of the players are determining factors towards purchased made by most consumers, which may in turn generate further sales for our product.

7.4 Survey Methodology and Analysis (positioning in a competitive advantage)

Segmenting the market helps to identify the potential market that we could tap into. With the aid of a marketing survey, statistical data from potential consumers will be used and analyzed to provide a clearer direction towards our marketing strategies.

As MP3s become increasingly integrated in daily lives, the number of users has been on the rise in recent years, and competition with the local market has been strong between Creative and Apple, taking almost equal portions of the pie. With progressing technology, users of MP3s are estimated to continue to climb higher, increasing the demand for newer and better products.

Based on our survey conducted, consumers between age 16 to 24 with income lower than $1000 will be the primary target group for this product, followed by consumers between age 25 to 34 with income between $1000 to $2500 as the secondary target group. These groups of people are observed to have the highest consumptions amongst people surveyed.

7.4.1 Positioning (competitive advantage)

With the statistical data that we have collated from the survey, we have come up with the positioning of the MP3 with respect to the BCG matrix that reflects the current growth share and its dominance in the market, its attractiveness, the potential to market the MP3 together with the powerful position of the brand. (Market growth rate vs. market share dominance):

With reference to the BCG matrix, Creative is placed under ‘cash cow’ which meant our products have high market share with low growth rate. What our group wishes to do is to boost Creative’s growth potential with the marketing strategy employed for our product.

7.5 Target Market Strategy

Our group has chosen to go with a differentiated marketing strategy which aims to increase our sales market position despite increasing the production cost on the other hand. In order to build a position to gain competitive advantage, available and affordable rate, we have identified important factors that consumers would prefer, incorporating to our plan to build our brand. These factors are firstly the issue of extended warranty, providing more service centres and incorporating 24hrs help desk.

We would elaborate further on the results and impact at the later part of the report. The implementation of the relevant strategies would definitely put Creative in full positioning and the value of the consumers’ feedback would certainly bring benefits to our product.

7.6 Sales Forecast

In line with our marketing objective, we plan to push Creative's revenue up to $446m upon implementation of the marketing plan as consumers show the willingness and open-mindedness to try our new product with the function, features, and services they are looking out for.

8. Product

The first impression that Zii Egg gives consumers compared to other brands is the quality of music of the player.

Popular features such as Wi-Fi, touch screen and extended memory have been incorporated together with quality and style into the Creative Zii Egg Plaszma.

The availability Zii Egg offering various memory storages is available to cater to different consumers with different purpose, need and various usage rates while using an MP3 player.

8.1 Core Benefit

Competitors are providing music playing devices (MP3 player) that are similar to Zii Egg, hence consumers can choose from a wide selection of brands depending on their requirements and needs. Creative Zii Egg specializes in providing quality music player, thus allowing them to stand out from the field, giving consumers assurance of high sound quality which allows them to be ‘immersed’ into the music world as soon as they press the play button.

8.2 Actual Product

Creative Zii Egg is powered by the revolutionary Stemcell technology that is able to run features such as, media-rich applications, high performance graphics with just one nano-sized chip. It also incorporates the popular ‘Google’ Android OS Software into the player, allowing users to have the ‘Google’ experience when using the product. Having the 10-point multi-gesture touch screen further enhances users’ experience and allows them to be up-to-date with the fast-changing technology.

8.3 Augmented Product (Service)

Additional services such as service centres in centralised location give users the convenience that they are seeking. The availability of a helpdesk aids users when they require specialised help while encountering product problems. The full coverage of the product while under warranty eases the worry in customers, giving them peace and assurance.

9. Price

9.1 General Pricing Approach

The MP3 market is somehow inclined towards brand loyalty which price adjustments have almost negligible effect in driving up sales. Under Value-based pricing, companies ask consumers how much they would pay for a basic product and for each benefit added to the offer. Quality and features alone no longer add up to the’ total’ value in consumers. Secondary factors such as extended warranty, bundled accessories and services increases the ‘total’ value to differentiate offers and build pricing power.

9.2 Market and Demand

Creative Zii Egg exists in a Monopolistic Competition Market of which Apple iPod Touch 2G and Microsoft Zune HD are their 2 major competitors. Although buyers and sellers trade over a range of prices, the number of competitors in the market makes each firm less affected by their rivals’ pricing strategies. In the MP3 market, pricing is highly sensitive hence Creative Zii Egg needs to ensure its pricing do not sway too far from its competitors’ offer but yet able to differentiate their offers to buyers. Differentiation in terms of extended warranty, more service centres in addition to the feature rich player will result in an increase in awareness and acceptance of the Creative Zii Egg.

Price inelasticity demand when price decreased and price elasticity demand when price is increased are key reasons in adopting non-price strategies, de-emphasizing price and using other marketing mix tools to create non-price positions.

A: Inelastic Demand in MP3 Player Market (Price decrease)

B: Elastic Demand in MP3 Player Market (Price Increase)

The reasons for the 2-way price elasticity are due to:

Elastic	Inelastic
· Consumers are price sensitive · Able to switch easily due to availability of close substitutes by competitors	· A level of brand loyalty in the MP3 market · Consumers may view low price as poor quality

9.3 Pricing Strategy

9.3.1 Price Adjustment Strategies

9.3.1.1 Discount and allowance pricing

Discounts can be given by referring a friend to purchase the Creative Zii Egg. If the friend purchases the product, the referral will get a cash rebate on his/her Zii Egg or other products in Creative line. Through strategizing discount which creates increased product awareness, this attracts prospective customers into finding out more about the product

Allowance pricing strategy is used to allow our consumers to trade-in their old MP3 player regardless of the MP3 brands with the value pegged on the current market price and condition of the old MP3. The purpose is to attract and allow potential consumers interested in the Creative Zii Egg but already own a MP3 player, to have an opportunity of keeping up with technological changes without worrying about owning more than one player.

9.3.1.2 Promotional pricing strategy

Promotional pricing is adopted temporarily to increase demand and to create buying excitement. Promotions such as having extended warranty are offered in an attempt to arouse the consumers by reducing their ‘price’. Special event pricing is also employed. For example, in the month of February where special occasion such as Valentine’s Day falls in, Creative Zii Egg can seize the opportunity by offering a slight cash rebate for a dual deal (2 Zii Egg) for couples with additional accessories and bundles add-ons included to stir the demand.

9.3.1.3 Segmented Pricing

Location pricing is being pushed at events (COMEX, IT FAIR) and road shows, where potential consumers will be able to purchase the Creative Zii Egg at a slightly lower price. However, the price decrease will not be that significant due to the market Zii Egg is in, thus additional bundles and offers such as receiving additional items (e.g. Screen protectors, Zii Egg protective pouch etc) will be the key factor that adds value yet lowering the ‘price’ of the player. This allows tapping on the high visitor numbers at these events to drive up sales.

10. Promotions

10.1 Effective Communication

10.1.1 Identify the Target Audience

The identified target audience are those between the age of 16 to 24 with income lower than $1000 who will be the primary target group while those between age 25 to 34 with income between $1000 and $2500 will be the secondary target group.

10.1.2 Determining Communication Objectives

(Stages of Buyer-Readiness)

Majority of the target audience lies at the Liking stage, having substantial knowledge of Creative Zii Egg and familiar with the pricing. Preferences are evident when consumers want to purchase a MP3. Therefore starting with the Liking stage, Creative Zii Egg should move along the stages by attempting to establish itself as the preferred choice through its promotion.

10.1.3 Determining a message

Creative Zii Egg is using following the AIDA Model to convey their message and convince the audience that purchasing the product will allow them to obtain a fusion of both quality and style.

The message with a catchy phrase, ‘The StemCell computing platform to innovate and Profit’ and illustrated with robot and electron style images, creates an interest in audience and captures their attention. The one-sided argument of high technology highlights the positive and benefit aspect of the Zii Egg that is unavailable elsewhere.

10.1.4 Choosing Media

Personal Communication Channels – Word of Mouth Influence and Buzz Marketing

Personal Communication Channel is the key media that Creative Zii Egg uses to communicate to the audience. Personal influence carries great weight in purchasing a MP3 therefore the word-of-mouth influence is used which also allows personal addressing and feedback. Creative Zii Egg must first ensure that the product meets or exceeds consumers’ value and expectation to allow positive influence to be communicated.

Online bloggers, the virtual opinion leaders, will be able to spread our message more effectively with their large number of followers and reader. Cultivating them and getting them to spread information about Zii Egg is under the same frequency as word of mouth influence.

Non-Personal Communication Channels – Major Media

Although personal communication channel is the focus, non-personal communication channels cannot be neglected. Major Media such as newspapers, magazines and television remains as an essential communicating channel as they both affect buyers directly and also indirectly by causing more personal communication by increasing audience awareness about the product.

10.1.5 Choosing the message source

Making use of Professionals' IT background will be useful in spreading the message as they have more credentials endorsing the Zii Egg. Creative’s current message source is narrow, thus the use of professionals will give their product a stamp of approval in the eyes of the audience.

10.1.6 Collecting Feedback

Feedbacks will be done on measuring effectiveness of the message in reaching out to the audience. Using the feedbacks, Creative can come up with a more effective way of reaching out by relooking at its strategies to increase its market share and position.

10.2 Consumer Promotional Mix

10.2.1 Advertising

Advertising is essential in introducing the product to its audience. One popular medium is the internet, which competitors have been using it frequently to stay strong in its field, Creative Zii Egg too has been using the Internet space to market itself especially in popular IT sites and forums, to reach out to their target consumers. Print media such as magazines and newspapers are common mediums for advertising which Creative Zii Egg can explore further as it is underused in the area of MP3 advertisements. One area which can be covered by Creative Zii Egg will be to use the space on public transports to advertise, such as on MRT, bus, and also in public areas like bus stop, shopping centres to capture a broader range of audience.

10.2.2 Sales Promotion

Having an inelastic demand during price reduction, sales promotions are vital in differentiating and attracting customers, with gifts and additional bundles that comes along with product purchase. To stay competitive, Creative Zii Egg has to come up with short-term promotions to lure audience. This can be done using any mediums. Zii Egg is able to use print media but internet is often used to introduce and offer its promotion to their audience. Zii Egg may consider bundle promotions such as Valentine couple’s offer, Christmas family offers to attract the target audience.

10.2.3 Public Relation

Companies strive hard to keep up with what they promise, living up to its expectation to the public. Creative’s recent tie-up with American Giants Thx Ltd, sends the message that Creative works with the best in producing the finest(Creative Zii Egg), giving consumers confidence.

Bad publicity such as having too many complaints will result in the public losing confidence in the product. As competitors are sticking closely behind, negative image will result in Creative losing its potential customers and customer retention ability.

10.2.4 Direct Marketing

In recent years, direct marketing has growth steadily. Creative Zii Egg can tap on this development by making use direct mail, catalogues, telemarketing and online marketing allowing them to have closer interaction with their audience and understand them better.

10.2.5 Promotion Mix Strategy

Both push and pull-strategy are necessary to create consumer demand in Creative Zii Egg. Giving special rebates and discounts such as bulk discounts to retailers such Best Denki Superstore will create immediate sales, inducing channel members to carry and promote the Zii Egg. However, a Pull strategy is adopted for IT Centres such as Sim Lim and Funan due to the strong competition from competitors. By ’pulling’ in the final consumers, we are able to create demand from channel members for Zii Egg. With these strategies, consumer promotions and advertising are the main promotional tools to reach out and increase public awareness.

11. Distribution

11.1 Channel Design Decisions

11.1.1 Analyzing consumer needs

Cost and Accessibility

The first thing that cross consumers' mind in purchasing MP3 player will be the cost of the device that matches their needs and wants. For example, if the cost of a MP3 player with additional functions cost around the same as other popular brands, consumers would rather choose that brand which can provide them with better benefits.

Thus, consumers' main concern will be the cost factor, followed by accessibility of the product. Creative creates accessibility for consumers by providing them with numerous areas to get hold of the Creative Zii Egg such as in official retail stores, super stores (Harvey Norman) and even online.

11.1.2 Setting Channel Objective

In this advanced technology era, MP3 player has become almost an integral part of everyone’s life whether is it being used while travelling, exercising or studying. Incorporation of more functions into one player has been done to meet growing consumers’ wants. However, consumers with higher purchasing power are only willing to purchase the player at a value (that seems reasonable for the product functions).

The existence of Creative Zii Egg Plaszma fulfils the wants of consumers by tagging an affordable price with rich functions, compared to its competitors, without affecting profitability.

Creative can further improve by providing value-added services such as setting up more service centres in centralised regions in Singapore and provide a 24-hours online helpdesk to increase accessibility to consumers. Having an online helpdesk not only provides solutions to consumers instantaneously with just a click on the mouse, but also reduces operating cost, dropping unnecessary services.

11.1.3 Identifying Major Channel Alternatives

Creative uses multichannel sales to sell the MP3 player in retail stores and online to targeted consumers in Singapore, illustrated with the Hybrid Market Channel diagram below with company sales force strategies as their major alternative intermediate.

]Hybrid Marketing Channel

Creative can assign outside salespeople to territories such as Harvey Norman or Best Denki and expand direct sales force to Creative official retail store. By having these sales people around these territories, they will be able to provide further aid and give additional information to potential consumer which is beneficial to Creative.

Selective distribution is being adopted by Creative as they select intermediates that are willing to carry Zii Egg and able to reach out more efficiently and effectively to the audience compared to other intermediates with their knowledge, understanding of the MP3 consumer market, and able to foster good working relationship with consumers. These intermediates includes IT Centres like Sim Lim, product superstores like Harvey Norman which is where customers who look for gadgets or technological products go to. Having too many places that provide the Zii Egg will only reduce its exclusivity.

Channel members, such as Best Denki need to constantly stick to the terms and responsibilities agreed beforehand with Creative. For example Best Denki should stick to the price lists and set of discounts agreed beforehand as these are in line with Creative’s objectives and strategies instead of carrying out various promotions without Creative’s knowledge which may undermine their position but bring consumers into the stores.

11.1.4 Evaluation the Major Alternatives

Although Creative expanded their own sales force to channel territories, and engage outside salespeople which will raise the sales cost. The benefits gained will surpass the costs for this strategy and will see a rise in profitability hence (a) feasible strategy.

Furthermore, Creative is constantly adapting to ever changing wants and needs from consumers by providing them a wider and more personalised service from both its official retail stores and website to allow easier access to product information. These additional services will allow building of stronger relationship with the consumer that which Creative will benefit in both short and long run.

By having terms and responsibilities agreed beforehand with the intermediaries gives Creative more control over the marketing of the product and evaluation of the sales and profitability. This is especially so with the direct sales force available. The close interaction presence makes Creative more flexible and effective in adapting to environmental changes.

12. Budget Plan

Budget details created to have a control of Creative’s operations through setting of targets regarding expenditures. Consistent monitoring and adjustments based on ongoing performance is necessary to cope with situation changes.

Types of Advertisements	Details	Estimated Cost
Television	Ch 5, Ch8, Ch U · Prime Time Advertising · 9pm-10pm · x 30 sec spots · 4 months running period	$844,800/month
Radio	98.7FM, Class 95, Yes 933 · 8pm-12am · x 30 sec spots / hour · 4 months running period	$139,692/month
Newspaper	The Sunday Times · Full colour quarter page · Every Sunday throughout the year The Newpaper · Full colour quarter page · Every weekend throughout the year	$54,888/month $24,640/month
Magazine	Style · Full Page with Colour · Monthly issue for 12 months FHM · Full Page with Colour · Monthly issue for 12 months 8 Days · Full Page with Colour · Weekly issue · 6 months running period I-Weekly · Full Page with Colour · Weekly issue · 6 months running period	$2,850/month $3,712/month $10,080/month $11,520/month
Billboards(SMRT)	Platform Door · At Dhoby Ghaut and Harbourfront MRT Station · month period In-Train Window Stickers · 10 Trains · 4 month period Travellator Wallscape at Dhoby Ghaut · 4 month period	$40,000/ month $50,000/month $20,000/month
Billboards(SBS)	· Wholly-painted single deck bus · Route along Orchard line · 10 buses running for 6 months	$25,000
Newsletters	· Launch by creative · Quarterly	$500
Internet	· Daily advertisements on websites with high user traffic	$6,000
Event	· Taking part in IT Fairs to promote Creative products · 4 events in the span of 12 months	$50,000

13. Action Plan

13.1 Advertising

Medium	Sources	Location	Period	Total cost/ month	Details	Objective
Television	MediaCorp	Channel 5 Channel 8 Channel U	4x30 sec spots during prime time (9pm – 10pm weekdays) Running period (Aug - Sep 09 & Jun - Jul 10)	S$844,800	Messages that create awareness about our newly launched product to the targeted audience.	To allow viewers to have an overview of the product being offered by Creative and create brand awareness among them
Radio	MediaCorp	987FM Y.E.S. 93.3FM Class 95FM	4x30 sec spots every hour (8pm -12am) Running period (Aug - Sep 09 & Jun - Jul 10)	S$139,692	Messages that allow listeners to know that there is such a product present and how they can get one	To allow listeners to have an overview of the product being offered by Creative and create brand awareness among them
Newspaper	SPH	Straits Times Newpaper	Full colour quarter page on Sunday Times for 12 months Full colour quarter page on Newpaper every weekend for 12 months	S$54,888 S$24,640	Messages that create awareness about our newly launched product to the targeted audience and also various information like price, and location to purchase.	To allow readers to have an overview of the product being offered by Creative and create brand awareness among them
Magazines	MediaCorp Publishing	Style FHM 8 days i-Weekly	Full page with colour for a period of 12 months Full page with colour for a period of 12 months Full page with colour for a period of 6 months Full page with colour for a period of 6 months	S$2,850 S$3,712 S$10,080 S$11,520	Messages that create awareness about our newly launched product to the targeted audience and also various information like price, and location to purchase.	To allow readers to have an overview of the product being offered by Creative and create brand awareness among them
Brochures & Catalogues	Creative	Main Outlet Authorised Retail Outlets Road shows	All year round	S1,200	Brochures & catalogue containing detailed explanation about the product will be placed in stores and updated quarterly	To allow customers to have an in-depth understanding of the product and create brand awareness among them
Newsletters	Creative	Creative Newsletter	Quarterly	S$500	Quarterly newsletters will be sent out to existing customers	To inform existing customers of the new products and updates that are available to them
Internet	Creative Hardware zone Google Yahoo Facebook	sg.creative .com hardwarezone.com google.com.sg sg.yahoo.com facebook.com	Daily advertising for a period of 12 months	S$6,000	Advertisements placed on sites with high user rate to create awareness of our newly launched product.	To let internet users know about the product and create brand awareness among them
Billboards	SMRT Comfort Delgro SBS transit	MRT (Habourfront and Dhoby Ghaut) Taxi Bus Bus stop Ads	Running period (Aug - Sep 09 & Jun - Jul 10) Running period (Aug – Oct 09 & May – Jul 10) Running period (Aug – Oct 09 & May – Jul 10) Running period (Aug – Oct 09 & May – Jul 10)	S$110,000 S$14,000 S$25,000 S$60,000	Messages that create awareness about our newly launched product to the targeted audience and also various information like price, and location to purchase.	To let the public have an overview of the product being offered by Creative and create brand awareness among them.
General Road Show	CapitaLand	ION Orchard Plaza Singapura	Running period of 4 events in a span of 12 months	S$150,000	Hold road shows at densely populated areas that allows customers to have a hands on session with product and get a better understanding of it	To allow customers to have an in-depth understanding of the product and create brand awareness among them
Events		IT Show	Running period of 4 events in a span of 12 months	S$50,000	Hold events that allows customers to have a hands on session and get a better understanding of the product	To allow customers to have an in dept understanding of the product and create brand awareness among them

13.2 Sales Promotion

Medium	Sources	Location	Period	Cost	Details	Objective
Discount	Creative	Main Outlet Authorised Retail Outlets Road shows	Pre-order Christmas Chinese new year	-NIL-	Customers who made a pre-order will receive a pre-order discount.	To give customers a form of incentive that will benefit them if they buy the product
Displays	Creative	Main Outlet Authorised Retail Outlets Road shows	All year round	S$3,000	Real display handsets will be provided with live demonstration upon request	To give consumers a deeper understanding on how the product operates
Demonstration	Creative	Main Outlet Road Shows	24 sessions in a period of 12 months	S$150 / session	Provide specific time slots for workshops to teach consumers how to operate the product and use the different functions.	To give consumers a deeper understanding of how the product operates
Gift with purchase	Creative	Main Outlet Authorised retail outlets IT shows Road Shows	Pre-order Christmas Chinese new year	S$1,000	Additional accessories, such as memory card and screen protector, that complements the product	To give customers a form of incentives that will benefit them if they buy the product

13.3 Personal Selling

Medium	Sources	Location	Period	Cost	Details	Objective
Trade shows	Creative	Suntec Exhibition Hall	Pre launch (Aug 09)	S$150,000	Participates in IT conventions, where they can promote their product mainly to companies, (retailers and wholesalers) Sales presentation is provided to give a deeper understanding of the product and a simple demonstration on how the product operates	To get big companies (retailers and wholesalers) to carry the product by providing them a very deep understanding of the product’s operations, usefulness and profitability
Incentive program	Creative	Main Outlet IT shows Road Shows	During periods of downtime	S$1,000,000	Commission based sales on top of their monthly salary	To provide sales personals an incentive to achieve greater sales

13.4 Public Relations

Medium	Sources	Location	Period	Cost	Details	Objective
Press Release	MediaCorp SPH Creative	Creative HQ	Prelaunch (Aug 09) Opening launch (Aug 09)	S$7,000	Press conference will be held, providing information on the product and its release date Announcement about the launch will be put up on webpages	To provide people firsthand information about the development of the product
Buzz Marketing	Opinion leaders (Xia Xue & Mr Brown)	As per event	Prelaunch (Aug 09) Opening launch (Aug 09)	-NIL-	Invite opinion leaders to come to the prelaunch and official launch to have hands on with the product before they give a review of it on their blogs.	To give internet users a good impression and an overview of the product being offered by Creative and create brand awareness among them

13.5 Estimated Sales Projection and Cash flow

13.6 Estimated Timeline

13.7 Evaluation & Control

A review will be performed based on the evaluation of the objectives stated above for the advertising campaign and the sale promotion period. Upon the end of the 1^st quarter of the fiscal year 2009, an evaluation will be conducted to see if the strategies carried out to obtain revenue of US$100,000,000 were met. If the target was not satisfied, the strategies used, will be revised to make up for the lost amount in the next quarter.

Based on the targeted revenue, 50% (US$50,000,000) of the sales revenue is from the sale of MP3 Players & Webcam Devices. Out of the sales revenue from MP3 Players & Webcam Devices, 60% (US$30,000,000) is the projected amount from the sales of Zii Egg Plaszma. Each Creative Zii Egg Plaszma is priced at US$399. Therefore Creative has to sell a total of 75,188 units of Zii Egg Plaszma (US$30,000,012) in order to be able to satisfy the target. That will bring us to a total of 836 units (US$333,564) that needs to be sold daily worldwide for a period of 3 months. Thus the advertising campaign and the sale promotion period have to be aggressive to be able to meet the target sales set out for our region.

Creative will face many tough challenges ahead, especially with Apple, who maybe be also coming up with a new product which may give Zii Egg Plaszma a run for its money. Thus the sales target has to be realistic and flexible to changes in the market.

14. Conclusion

Even though the current MP3 players are of the best technology and functions, technology knows no boundaries. There will always be improvements and new developments to the MP3 market. Although Creative’s Zii Egg Plaszma may be at the top of the market, it is vulnerable to the rapid changes in technology where its competitors can come up with a player comparable or even better than Zii Egg itself. Thus, ZiiLABS has to constantly be on par or ahead with the ever changing technology by being creative and innovative in their product development; and following the market demands closely to give our competitors a run for their money.

15. Appendix

15.1 Survey

Dear Sir/ Madam,

This survey is part of our Marketing Project to find out about the consumer’s environment on IT gadgets (MP3 players). Your feedback is valuable to us. Thank you for your time to do this survey.

Part 1: Your Particulars

Please indicate your age group: Ø Below 15 Ø 16 – 24 Ø 25 – 34 Ø 35 – 44 Ø Above 45	Please indicate your occupation: Ø Student Ø Employed Ø Self-employed Ø Unemployed Ø Others (Please specify: ____________ )
Please indicate your average monthly income: Ø Less than S$1000 Ø S$1000 – S$2500 Ø S$2501 – S$3500 Ø S$3501 – S$4500 Ø Others (Please specify: ____________ )	Please indicate who has the main financial responsibility in the household? Ø Parents Ø Spouse Ø Yourself Ø Others (Please specify: ____________ )

Part 2: Questions on General IT Gadgets

1) Do you own a MP3?

o Yes (Please specify the brand: _______________ )

o No

2) Where do you usually purchase IT gadgets? Please select only one option.

o Official retail stores

o Online purchase

o Super stores (e.g. Harvey Norman, Best Denki, Challenger, Courts)

o Funan IT Mall

o Sim Lim Square

o Other places / countries (Please specify: ____________ )

3) Please rank the following in order of your preferred brand of MP3.

(1 – Most preferred, 6 – Least preferred)

___ Apple

___ Microsoft

___ Creative

___ Sony

___ Samsung

___ Panasonic

4) Why did you choose this brand? Please select only one option.

o Function

o Style

o Brand name

o Quality

o User friendly

Part 3: Questions on MP3

1) How much are you willing to spend on a MP3 player? Please select only one option.

o Less than $100

o $100 – $250

o $250 – $400

o $400 – $500

o Above $500

2) Please rank the following in order of importance when purchasing a MP3.

(1 – Most important, 5 – Least important)

___ Features (e.g. Storage space, Wi-Fi)

___ Physical appearance (e.g. Weight, Designs)

___ Quality (e.g. Sound, Durability)

___ User-friendly interface

___ Included accessories (e.g. Quality earphones, Free gifts)

3) Will these additional bundles affect your decision making? Please rank the following in order of your preferred choices. (1 – Most preferred, 4– Least preferred)

___ Extended warranty

___ Expandable memory (external)

___ Additional applications

___ Complimentary accessories (e.g. quality earpieces, screen protectors, leather case)

4) When buying a MP3, which of the following influences your decision the most?

Please select only one option.

o Internet based mediums (e.g. Websites, Forum)

o Referrals and experiences (e.g. Peers, Family)

o Advertisements (e.g. Newspapers, Magazines, Televisions)

o Promoter’s / salesman’s recommendation

o Others (Please specify: ____________ )

5) What additional functions would you like to have in your MP3? Please rank the following in order of your preferred choices. (1 – Most preferred, 5– Least preferred)

__ Camera

__ Expandable memory

__ Touch screen

__ Wi-Fi

__ Bluetooth

6) What kind of improvements would you like to have in your MP3? Please rank the following accordingly. (1 – Most preferred, 4– Least preferred)

___ Sound quality

___ Design

___ User-friendly (plug and play, easy navigation)

___ Portability (sleeker design, weight)

Part 4: Questions on Creative Technology

1) What is the first impression or perspective do you have for a Creative MP3 product?

Please select only one option.

o Quality music

o User friendly interface

o Stylish Design

o Multiple functions

o Others: _________.

2) Do you own a creative MP3 player?

o Yes (proceed to Question 3)

o No (proceed to Question 4)

3) If Yes, how is your experience with creative MP3?

o Excellent

o Good

o Neutral

o Bad

And why: ______________________________

4) If No, why? Please select only one option.

o Unappealing design

o Poor user interface

o Not value for money

o Poor customer service

o Poor quality

o Better alternatives

(Please proceed to Question 5 onward after completing the desired question above. Thank you.)

5) If Creative has a MP3 player that is sleek in design and have functions of MP3, video, Wi-Fi, dual camera, 10 point multi-function touch screen and expandable external memory, better functions that surpass its competitors' products and your current MP3 player. Will you be interested?

o Yes

o No

6) If Creative were to provide additional value added services to serve you better, what types of services will you preferred the most?

(1 – Most preferred, 5– Least preferred)

___ Extended warranty

___ More service centre

___ 24hrs Help Desk

___ More feedback centres

___ Online Help desk

7) If Creative Zii Egg Plaszma (the latest MP3 player) has the above mentioned functions and value added services, would you consider purchasing it?

o Yes

o No

Other comments:

___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

--Thank You—

15.2 Collated Statistics

16. References

1. Competitor Market Analysis

Windows Embedded CE overview,2009, Windows Embedded, Microsoft, viewed 10 September 2009,

http://www.microsoft.com/windowsembedded/en-us/products/windowsce/default.mspx

· iPhone OS Overview,2009, Phone Reference Library, Apple, viewed 7 September 2009,

http://developer.apple.com/iphone/library/referencelibrary/GettingStarted/URL_iPhone_OS_Overview/index.html

· Zune HD available for pre-order today,2009, Zune News, Zune, viewed 27 August 2009

http://www.zune.net/en-us/press/2009/0813-zunehdpreorder.htm

· Zune HD Overview,2009, Zune Product, Zune

http://www.zune.net/en-us/products/zunehd/default.htm

· Technical Specifications for iPod Touch,2009, IPod Touch, Apple, viewed 27 August 2009

http://www.apple.com/ipodtouch/specs.html

2. Corporate Financial Report

· Q4FY09EarningsRelease,2009, SGX release Final, Creative, viewed 20 September 2009

http://www.creative.com/corporate/investor/files/ER/Q4FY09EarningsReleaseSGX.pdf

3. Market Segmentation

· Key household income trend,2009, Occasional paper on income statistics, Singstat, viewed 13 September 2009

http://www.singstat.gov.sg/pubn/papers/people/op-s15.pdf

4. Potential Market

· Popular Trends 2009,2009,Demographic Statistics, Singstat, viewed 28 August 2009

http://www.singstat.gov.sg/pubn/catalogue.html#demo

· Generation Y, 2009,Legal Careers, About.com, viewed 3 September 2009

http://legalcareers.about.com/od/practicetips/a/GenerationY.htm

5. Promotional Strategies

5.1 Advertising

· Uttara Manohar, 2009, Different Types of Advertising, viewed 9 September 2009, http://www.buzzle.com/articles/different-types-of-advertising.html

· mimi.hu, 2009, Transit Advertising, mimi.hu, viewed 12 September 2009 http://en.mimi.hu/marketingweb/transit_advertising.html

5.2 Sales Promotion

· tutor2u, 2009, Sales Promotion, tutor2u, viewed 19 September 2009, http://tutor2u.net/business/marketing/promotion_sales_promotion.asp

5.3 Personal Selling

· Jo Ann Smith, 2009, Personal Selling Strategy, Jo Ann Smith, viewed 19 September 2009, http://www.web-articles.info/e/a/title/Personal-selling-strategy/

5.4 Public Relations

· Modern Creative Inc, 2009, Public Relations, Modern Creative Inc, viewed 21 September 2009, http://www.moderncreative.com/services/public_relations_special_events.asp

· Authenticity Consulting LLC, 2009, Public and Media Relations, Authenticity Consulting LLC, viewed 21 September 2009, http://managementhelp.org/pblc_rel/pblc_rel.htm

Tuesday, 31 January 2012

Egg

3.1 Market Demographic Environment

3.2 Market Economics Environment

3.3 Market Technological Environment

4.1 Internal Resources

4.2 Potential Market

4.3 Competitors

5.1 SWOT Analysis

6.1 Mission Statement

6.2 Objectives

7.1 Outline of Marketing Research

7.3 Market Segmentation (in relation to consumer behavioural aspects)

7.5 Target Market Strategy

8.2 Actual Product

8.3 Augmented Product (Service)

9.2 Market and Demand

9.3 Pricing Strategy

9.3.1.1 Discount and allowance pricing

9.3.1.2 Promotional pricing strategy

9.3.1.3 Segmented Pricing

13.5 Estimated Sales Projection and Cash flow

13.6 Estimated Timeline

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