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PRINCIPLES OF MARKETING

I-holo COMPLETING YOUR LIFE!

BY:

Areej Naeem
Anas Zavary
Fatima Burhanuddin

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Contents
Introduction......................................................................................................................................................4
New Product Development Process:................................................................................................................4
Idea Generation:...........................................................................................................................................4
Screening Out The Ideas:.............................................................................................................................4
Concept Testing:...........................................................................................................................................4
Marketing Strategy:......................................................................................................................................4
Business Analysis:........................................................................................................................................5
Product Development:..................................................................................................................................5
Test Marketing:.............................................................................................................................................5
Commercialization:......................................................................................................................................5
Mission Statement:...........................................................................................................................................5
Branding:..........................................................................................................................................................5
Micro Environment:.........................................................................................................................................6
Suppliers:......................................................................................................................................................6
Customers:....................................................................................................................................................6
Competitors:.................................................................................................................................................6
Market Intermediaries:.................................................................................................................................6
Publics:.........................................................................................................................................................6
Macro Environment:.........................................................................................................................................6
Demographic Environment:.........................................................................................................................6
Economic Environment:...............................................................................................................................6
Political Environment:..................................................................................................................................7
Social Environment:.....................................................................................................................................7
Technological Environment:.........................................................................................................................7
Marketing Plan.................................................................................................................................................7
Executive Summary:....................................................................................................................................7
Current Market Situation:.............................................................................................................................7
Marketing Concept:......................................................................................................................................8
Market Description:......................................................................................................................................8
Figure 1a.................................................................................................................................................10
Product Review:.........................................................................................................................................11
Competitive Review:..................................................................................................................................11
Distribution Review:..................................................................................................................................12
Swot Analysis:................................................................................................................................................13
Strengths:....................................................................................................................................................13
Weaknesses:................................................................................................................................................13

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Opportunities:.............................................................................................................................................13
Threats:.......................................................................................................................................................14
Objectives And Issues:...............................................................................................................................14
First Year Objective:...............................................................................................................................14
Second Year Objective:..........................................................................................................................14
Issues:.........................................................................................................................................................14
Marketing Strategy:........................................................................................................................................15
The Four Marketing P’s:.............................................................................................................................15
Product:...................................................................................................................................................15
Price:.......................................................................................................................................................15
Promotions:.............................................................................................................................................15
Place:......................................................................................................................................................15
Positioning:.................................................................................................................................................15
Product strategy:.........................................................................................................................................16
Pricing Strategy:.........................................................................................................................................16
Distribution Strategy:.................................................................................................................................16
Marketing Communication Strategy:.........................................................................................................16
Marketing Research:...................................................................................................................................17
Marketing Organization:.............................................................................................................................17
Figure 2a.................................................................................................................................................17
Action Programs:........................................................................................................................................17
January:...................................................................................................................................................17
February:.................................................................................................................................................17
March:.....................................................................................................................................................18
Budgets:......................................................................................................................................................18
Control:.......................................................................................................................................................18
Packaging And Labeling:...............................................................................................................................18
Conclusion:.....................................................................................................................................................19

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INTRODUCTION
Our company “FABLED ABSTRACT” is developing a multipurpose cell phone for
satisfying the need of compatibility and user friendliness of the youth and the people
belonging to the business class. This state of the art cell phone uses holographic
technology which gives it a touch of the future and adds greatly to its pulchritude. This
cell phone is going to be a breakthrough in the cell phone world as it will be introducing a
new dimension in this market in the name of holographic technology which will enable
our smart phone to create a 3D image projection which will make cell phone usage a lot
of more interesting. We have gone through an extensive process to devise and develop
this pioneering idea, the entire process has been thoroughly mentioned below:

NEW PRODUCT DEVELOPMENT PROCESS:

IDEA GENERATION:
The first step that we took for the development process of our product was generating
different ideas. We generated a number of ideas through brain storming and using the
external sources like, keeping a track of the competitor’s offerings and by conducting
market surveys. At the end the ideas that we came up with were:
 A smart phone using holographic technology
 Micro speakers with an extra ordinary voice quality
 A television using a holographic set of technology
 Multi-purpose DVD player

SCREENING OUT THE IDEAS:

After considering all the ideas we decided upon choosing the holographic cell phone idea.

CONCEPT TESTING:
After conducting a survey in the market we concluded that a demand for holographic
smart phones could be generated. We choose a sample group from the market and
interviewed them regarding our cellphone idea. We made out that our product idea would
encourage profitable sales and so being a hit in the market. Thus the concept testing was
successful.

MARKETING STRATEGY:
Our holographic smart phone is going to have all the useful and entertaining features that
a user could ask for, like an 8MP camera, a sliding touch pad, an mP3 and video player,
wireless internet. Also our smart phone would guarantee a high security from virus and
hacking attacks through a strong licensed Linux based OS. This is not going to be it; our
smart phone is going to be a complete package for the users of today keeping in mind the
phenomenal attributes of our smart phone! About the pricing, after careful analysis we
have decided to skim the market with a high price which will be value based. As far as
the distribution strategy is concerned we are going to adopt direct marketing thus the
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distribution channel would have a single level without any intermediaries.

BUSINESS ANALYSIS:
We conducted a careful business analysis and winded up that the production of this smart
phone would though cost us a high amount but would undoubtedly earn us a great deal of
profits as well. We have cautiously calculated the cost, both fixed and variable for our
smart phone and after adding a profit margin in it. We have reached to a suitable retail
price for our Holographic Smart Phone which will not only help us cross the break-even
point but would also produce for us the expected profits.

PRODUCT DEVELOPMENT:
Now we are finally going to give a physical shape to our product concept. It is we who
are going to produce the product from its memory card to its LCD, from chargers to
batteries; we will be the soul suppliers, manufacturers and retailers of this phenomenal
smart phone.

TEST MARKETING:
This stage of the new product development crosses will be eliminated in our case due to
cost related issues, also test marketing takes a lot of time which might give our
competitors an advantage over us if our idea leaks out in the market.

COMMERCIALIZATION:
Finally our product is going to be transported from the point of manufacturing to the
point of consumption. After passing through all the above stages, our product is going to
be full-fledged available in the market for our targeted consumers.

MISSION STATEMENT:
The mission statement for our smart phone, I-holo is:
Our Product oriented mission statement is:
“We present to the world a new dimension in smart phones using the holographic
means of communication”
Our market oriented mission statement is:
“We enable today’s youth to communicate with style”

BRANDING:
We have created a brand name for our product, I-holo in order to differentiate it from the
rest of the somewhat similar products. The branding is in the form of a logo. Through
creating a foundation for I-holo, i.e.: its brand name, our main objectives are to:
 Authenticate our credibility
 Concrete user loyalty
 Motivate the buyer
 Connect to our target consumers emotionally
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 Clearly communicate the message

 To make our target consumers believe that we are the only company in the market to
fulfill their needs in the best possible way
As our product will start facing the day to day competition in the market, our brand name
would help us survive as it is more like a promise of an innovative and quality product
for them.

MICRO ENVIRONMENT:
SUPPLIERS:
We are our own suppliers as we are creating the product on our own. Hence a change in
any activity we conduct will not affect our marketing strategy in any way.

CUSTOMERS:
Our primary target is the youth and our secondary target is the business sector. Our
customers are those who are interested in the cell phone market and the ups and down
that take place in this market.

COMPETITORS:
No one is currently selling a cell phone with such features. However, apart from the
holographic projection and slide touch pad feature of this cell phone, other such products
are available from NOKIA and APPLE.

MARKET INTERMEDIARIES:
There are no intermediaries as we have adopted direct marketing.

PUBLICS:
Our publics are multiple investing firms and individual investors who predict a bright
future in this product and in their profit statements due to this product. Furthermore,
media channels are also included in our publics as they are always interested in new
developments especially regarding technology.

MACRO ENVIRONMENT:
DEMOGRAPHIC ENVIRONMENT:
The demographics of our targeted market include individuals between the ages of 23 and
35, including both males and females and having monthly income between 40,000 to
150,000.

ECONOMIC ENVIRONMENT:
The economy of the country in which we are launching our product is unstable between
the conditions of recession and boom. Hence there are a number of individuals who will
be interested in buying our product.
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POLITICAL ENVIRONMENT:
Government policies do not directly affect us; hence the political environment factor does
not influence our company and product in any effective way.

SOCIAL ENVIRONMENT:
Cell phones are always in style and it is currently socially accepted on a massive scale.
Hence, such a product will be highly profitable.

TECHNOLOGICAL ENVIRONMENT:
The required machinery for this product is available in the market except from the
holographic feature which will be our own invention and hence it will be our trademark.

MARKETING PLAN
EXECUTIVE SUMMARY:
Our company, the FABLED ABSTRACT has prepared a marketing plan for the launch
of our first and exceptional new smart phone, the I-HOLO. For the first time in the
history, we are bringing to the world a smart phone using the HOLOGRAPHIC
TECHNOLOGY, which will allow the projection of a 3D image in the air, which is
several times the size of the projecting device without a projection screen. This phone not
only has useful features but has an enhanced entertainment factor as well. Also, the phone
is not just user friendly but also guarantees a high security as well through a Linux based
OP. Since the I-holo offers all the features that a user can wish for in a single device thus
it reduces the burden of keep multiple gadgets to fulfill the different needs.
Segmenting the market on the basis of income, the general target for our smart phone is
going to be the elite class of the market, since our smart phone is a specialty product and
is going to be priced highly to skim the market thus the only the superior class can afford
I-holo. We have segmented the market further on the basis of age and have decided upon
our primary and secondary targets. The primary targets being the youth ranging from
18-25 years who crave to communicate with style and the secondary target being the
corporate users who look for a multi-functional PDA to fulfill their work related needs.
Our marketing objectives for the first year of our launch is to create the maximum
awareness regarding I-holo amongst our targeted consumers and capture at least a 2.5-3%
share of the smart phone market.
On the other hand our financial objective for the first year of our launch is going to be,
selling at least 100,000-150,000 units and not just crossing the breakeven point but
generating a profit as well. Fabled abstract will not just manufacture the I-holo but will be
the retailers itself too, through launching its own outlets across Pakistan’s top 50 posh
markets first and then after accomplishing its first year objectives, I-holo will be launched
in the international market as well.

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CURRENT MARKET SITUATION:

Our product I-holo is a completely innovative and fresh creation in the cell phone market.
Multipurpose cell phones are very common in today’s cell phone market but a cell phone
with a holographic technology has not yet been created by any cell phone company.
Though the idea has been thought of in the history but no company took a step towards
its creation thus the idea remained being just an idea rather than being an existing product
in the market until now. Not forgetting to mention, Dennis Gabor is considered the Father
of Holography which in today‘s date is one of the most fascinating technologies. There
had been several Major Breakthroughs in Holographic Tech, especially in the
Entertainment Industry. Holographic Projection Technologies of the Future are moving
forward really fast and soon this science is going to take over the cell phone market.
When the idea for holographic cell phones was created and researched upon, it was
acknowledged that the new Holographic Projection technologies in cell phones have a
market value of 500 million to 1.5 Billion Dollars in the first 18 months to two years and
that would be just the Introduction. Since this is a new product in the market, our
company would not have to face any intense competition from any other cell phone
companies and the effort to gain a market share would not be an extreme one. Although
there are cell phones in the market which have a few similar features to our product but
we sure do have a competitive edge over them which would help us position our product
without a high degree difficulty.

MARKETING CONCEPT:
The marketing management philosophy that we have chosen upon for our smart phone is
a blend of two, the PRODUCT CONCEPT and the MARKETING CONCEPT. We
pursued the idea that the consumers will favor the product that offers the most quality,
performance and features, on the condition that the product fulfills all their needs
accurately. Thus we have devoted our energy to making a smart phone which not just
guarantees quality but also a high performance and out of the ordinary features, but at the
same time we tried not to indulge in marketing myopia, we recognized the needs and
wants of the consumers first and then designed our smart phone accordingly. This is the
philosophy that we have followed for our smart phone so that our targeted market
segment remains fully satisfied and pleased with I-holo’s attributes.

MARKET DESCRIPTION:
The type of market for our complete package smart phone, I-holo, is going to be the
consumer market. It’s going to be an exclusive one, since the product is exclusive itself. It
is going to include consumers as well as business users. Like we mentioned above, that
we have segmented the market on the basis of age and income, in the introduction phase
of our product, our specific target market is going to be the youth, I.e.: teenage students
who believe in fun gadgets denoting a style statement as well, who need a compact
gadget to support all their needs, the major one being entertainment. As the awareness of
our cell phone will start to grow, we will start targeting the business class as well who
believe in compact gadgets with all the features they need in just one hand held cell
phone. This light weighted multi-functional unit is going to have a Linux based system
thus making it a very secure, smart, stylish and a useful minicomputer, also providing a
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5GB memory card for information as well as entertainment storage. Also this gadget not
only facilitates quick communication but also a quick access to the applications through a
voice-activated smart search system.
Our main target through the life cycle of our product is going to be the Today’s youth,
who crave for gadgets which are not only useful and compact but are classy as well,
which they can show off to their social circle, hence we are presenting them the I-holo
which is a complete package smart phone. This cell phone would not just be an extremely
useful piece of technology for them but is also elegantly designed and is full of fun
features which will make them fall in love with it!
In view of the fact that I-holo is quite inventive, thus the people to adopt it the first would
be the innovator category of our targeted segment followed by the early adopters, the
early and late majority and finally the laggards will be the last one to adopt I-holo but
they are all equally important to our company since they all will be contributing to the
success of our smart phone. Table 1A shows the needs of our targeted consumers and the
corresponding features of I-holo that will fulfill their requirements.

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FIGURE 1A
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Targeted segment Customer need Corresponding feature

Business class user  Security  A strong licensed

 Quick Linux based
communication system which makes it less
 Organized contact vulnerable to
book hackers and viruses
 Quick access to  A smart search
applications application
 Driving directions to which is voice sensitive as
business meetings well and
 An application which also a speed dial option for
could schedule and quick
remind them of their communication
meetings  A calendar, address
book and a
 Voice memo
application which would
save your appointments,
also a reminder alarm could
be set for important events.
 A built in voice
sensitive system
The youth which could give you the
(teenage students) direction to
your destination and
provides you
 Denoting style and with a map
exclusiveness
 Performing functions
hands free without
bothering to carry
multiple gadgets  A classy gadget, with an
 Entertainment elegant designing to
 Security denote the perfect style
 Voice-activated
applications for easy
access
 An mp3, a 5GB
memory, a 8 mega pixel
camera with an image
editor application to add

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further entertainment
 A strong security code
system on the phone
and a mobile tracker
application as well
 A call and text blocking
option
 A Wi-Fi option to
provide you with
internet access 24/7
 A range of modish
changeable cases with
different colors and
patterns

PRODUCT REVIEW:
Our excusive cell phone, the I-holo has the following standard features which makes it a
complete package:
 Uses holographic technology which will allow the projection of a 3D image in the air
that is several times the size of the projecting device without a projection screen.
 It has a sliding touch pad which on sliding enables the holographic image projection
feature of the phone.
 A Linux based operating system which enhances the security.
 A touch sensitive device and a voice-activated smart search application for quick
hands free access, which will also facilitate more natural human-and-computer
interaction and is more feasible than using a keyboard.
 A speed dial application for a quick communication through instant calling and a
video calling option as well.
 A 64GB memory chip for information and entertainment storage.
 An Mp3/Mpeg/avi supporting player as well as a radio which can work even without
a headset.
 Wireless internet and emailing option and also a Bluetooth application.
 Instant messaging through text and multimedia messages.
 A built in digital compass which gives you directions and point you towards your
destination.
 Holographic imaging will enable high-resolution views of things.
 A voice memo application, which will help you record your important events’
schedule easily, also an alarm option which would keep reminding you of the
important events that you need to attend thus acting like your personal assistant and
giving you all the features of a PDA.
 An 8 Mega pixel holocam which will click 3D real-time pictures using holographic
applied science and also an image editor which adds further to the entertainment.
 A beautiful range of changeable cases with different colors and patterns.
 Other chief features include, mobile tracker, a calendar and a map, a converter and a
translator, a world clock and a calculator, a TV-out option, audio/video/animations

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and games downloading through the internet access.

 A double power rechargeable lithium-ion battery with a talk time up to 10hrs and
stand by up to 800hrs.
 The size and weight of the phone being:
 Height: 5 inches
 Width:2.5 inches
 Depth:0.5 inch
 Weight:4.5 ounces

COMPETITIVE REVIEW:
The competition in the cell phone market is very intense in today’s date, since every other
company is trying to create a gadget with as many useful features as possible. They are
trying to cut down their costs as well as their prices and trying to bring the latest
technology to their consumers in order to win the maximum market share. Though our
product is a new invention in the market and no existing cell phone has a holographic
technology, thus we would not be facing an acute competition. There are some cell
phones in the market which have features other than the holographic technology that are
similar to our cell phone, thus these cell phones will be our only competitors. The
MAJOR rivals for I-holo include:
1. I-Phone by apple: though I-Phone does not use a holographic technology but has a
lot of other similar features like, an mp4, a camera, a radio, compass, voice memo
application, audio and video downloading and wireless internet. I-Phone is a gadget
which is quite popular and desired among the youth in today’s date and also has a
stable market share thus would be our toughest competitor.
2. Nokia: Nokia being the market leader and the corporate class users’ all time favorite,
is also going to be a key competitor since it has very wide range of cell phones with a
variety of useful and entertaining features, also Nokia has introduced a wide series of
useful and fashionable PDAs which adds to the competition further.
3. Samsung: Samsung is also showing continuous innovation and has introduced an
array of PDAs, with a lot of useful features united in a single hand held gadget.
Features like a map, world clock, mobile tracker, mp3 player, speed dial, calendar,
Wi-Fi accessibility, high resolution cameras are now common in Samsung smart
phones which mean a significant competition for I-holo.
4. RIM: a Canadian company, research in motion has developed blackberry, which is a
line of mobile email and smart phone devices. Blackberry is primarily known for
its ability to send and receive Internet e-mails and It commands a 20.8% share of
worldwide smart phone sales, making it the second most popular platform after
Nokia's Symbian OS, and is the most popular smart phone among U.S. business users
thus being a big time competitor for our cell phone.
Despite of the substantial competition, I-holo will surely be able to capture a share
in the smart phone market since it’s holographic technology, it’s packed together
useful and entertaining features, as well as it’s modish designing gives it a
competitive edge over the other phones. Its ability to facilitate quick personal and
business interactions while making it interesting, stylish and fun at the same time
sure makes it different from other smart phones in the market, thus I-holo will
surely be able to wrestle its competitors and win its share in the market.
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DISTRIBUTION REVIEW:
Since our product I-holo is completely an exclusive product thus the distribution
would be elite as well! Adopting the direct marketing strategy, we are going to
launch our own outlets in the top 50 markets in Pakistan. To denote the
exclusiveness of our product, we are going to create a high-class atmosphere in
each and every outlet so that the image of our cell phone remains elite in the eyes
of our consumers. Also launching our own outlets would attract our target market
to visit the store and probably purchase the phone as well. Apart from an
extraordinary atmosphere, Hiring highly trained salespersons with striking dealing
skills would further add to the specialty of our outlets. The distribution channel
has a single level, since us, the producers will be the retailers as well.
The launch of our product will be done within Pakistan first, when our product’s
awareness and local market share would start growing, then we would launch our
phone internationally as well. We have planned to launch our product in the
Europe as well as in the United States, once it gains the required awareness and
recognition among our target market.

SWOT ANALYSIS:
I-holo has several dominant strengths which gives it a competitive edge over the other
smart phones, but at the same time has its own weaknesses as well, like a high price and
deficiency in brand awareness. Though the opportunities, like a high demand for compact
hand held smart phones with all the useful and entertaining features welcome I-holo in
the smart phone market to a great deal but on the other hand, the market serves up with a
few threats to I-holo as well, the threats being a continuous pressure to reduce the high
prices plus the considerable competition from the existing reputable, convenient and low
price smart phones.

STRENGTHS:
1. 3D holographic imaging: The beauty of this hand held touch screen device is that the
3-D Holographic Image not only protects your phone lens and looks extremely cool,
but at the same time it does not make the screen hard to view.
2. Security: I-holo uses a Linux-based OP which makes it less vulnerable to attacks by
hackers and viruses plus this smart phone also supports personal security by offering
a call and text blocking option. A mobile tracker in our gadget further adds to its
safekeeping.
3. Innovative and eye-catching: I-holo is a completely new product development due to
the holographic technology used in it and is very dazzling due to its elegant
designing.

WEAKNESSES:
1. User friendliness: I-holo being a Linux-based OP, also a touch sensitive and partially
a voice-activated device is less convenient for the corporate class users who look for
gadgets that are easier to use in their busy lifestyle.

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2. Lack of brand awareness: Since we have launched a new company and a completely
fresh and ground-breaking product thus people are not aware of it which might
elongate the introduction phase of our product life cycle and would also mean a high
promotion budget, since our novel product would need to be promoted highly in order
to attain the target market’s attentiveness. Also our competitors would have an
advantage over us in this case since they have already created awareness for their
product.

OPPORTUNITIES:
1. Increasing demand: There is an increasing demand in the market for smart phones
with useful as well as entertainment features. In today’s date people desire for a
multi-functional gadget which will reduce their burden of carrying multiple devices
thus this high demand will be an opportunity for the I-holo.
2. Demand for devices using latest technology: The demand for the devices using the up
to date technology keeps boosting continuously thus would help I-holo in being a
sought after product in the market.

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THREATS:
1. Condensed life cycle: Since the technology keeps advancing and replacing the older
versions of it thus the technological devices usually have a condensed life cycle. In
order to keep the sales moving we would be introducing newer versions I-holo with
even more highly developed features, thus helping we revive our sales.
2. Price war: The competition among the smart phones in the market would create a
high degree price war which would continuously threaten us to reduce our prices in
order to first capture and then later on maintain our market share.

OBJECTIVES AND ISSUES:

We have set our objectives for the first two years after the launch of I-holo, these
objectives are measurable, specific, achievable as well as challenging.

FIRST YEAR OBJECTIVE:

During I-holo’s first year in the market, creating awareness of our smart phone is our
prime goal. Apart from this we have set a target of achieving a 2.5-3% share of the local
market through selling at least 100,000-150,000 sets to our target market.
Creating awareness is our principal objective in the first year because it is the first step in
the adoption process when it comes to a new product in the market, this process
comprises of five steps which we would have to take care of:
 The consumer becomes aware of the product
 His interest arises in the product
 He evaluates it
 Opts for a trial
 Finally adopt the product
The adoption of the product though is all that we want for I-holo but the first four steps in
the process lead to the acceptance of the product thus they are very crucial to us. For this
reason we have decided upon keeping the awareness factor as our prime motive in the
first year of I-holo’s launch. One of our targets throughout the life cycle of our product
will be to achieve higher customer equity rather than a higher customer life time value.

SECOND YEAR OBJECTIVE:

In the second year of our product’s launch, we plan to introduce I-holo internationally as
well, and thus capturing at least a 6-7% share of the overall smart phone market. Also our
aim would be to develop a stronger relationship with our consumers and transform them
into our TRUE FRIENDS who will be beneficial as well as loyal to our brand. We also
plan to introduce another superior version of the I-holo till the end of the second year.

ISSUES:
The issues that we are going to face during the launch of I-holo will be the establishment
of our brand name which is completely a novel one. Since we would be facing a lack of
brand awareness thus we have fixed a high promotion budget which has increased in our
overall costs to a great deal. Plus creating our own outlets is a big responsibility, since we
would have to craft an exclusive image of our product in the eyes of our targeted
consumers so they would be sure about it being elite, worthy and quality product!

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MARKETING STRATEGY:
Our marketing strategy for I-holo would be to position it on the basis of product
differentiation since it uses a novel technology which hasn’t yet been introduced in the
market. Our prime target for I-holo would be the youth belonging to an elite class and
ranging from 18-25 years. Once our smart phone becomes popular amongst our primary
target, then we are going to go for our secondary target which is going to be the business
class like we mentioned above, because the high income corporate users look for a gadget
which is multi-functional and reduces the need to carry separate devices for all their
needs.

THE FOUR MARKETING P’S:

PRODUCT:
Our product which is a smart phone using a holographic technology has multiple useful
and entertaining features which will not just enhance the style which the youth carry
these days but also will also be highly instrumental for the corporate man.
PRICE:
We have based our pricing on the value of our smart phone, through which we are going
to skim the market and earn probably a lower sales but it will fulfill our projected profit
goals. Price skimming will be our strategy in the introduction phase of our product which
we might alter in the growth or the maturity stage according to the market and
competition situation.
PROMOTIONS:
We will be promoting our smart phone heavily through the visual as well as the print
media. We are going to use the advertisement and promotional sales tool for the media
hype of our product. We are going to advertise in the newspapers, radio, televisions,
billboards and internet. Furthermore, we will also offer a 10% cash discount for the first
hundred sales of our product.
PLACE:
We are going to create our own exclusive outlets in the top fifty markets of Pakistan. We
will hire highly trained sales persons who will personally deal with every person and
enhance the customer relationship management of Fabled Abstract.

POSITIONING:
We are positioning our cell phone on the basis of the benefits that it offers and its
distinctive attributes. Since we are using an original and innovative technology which is
going to be introduced in the market for the very first time, thus product differentiation
gives us an edge over our opponents. Plus the holographic imaging adds tons of value to
our product and makes it different from the rest of the smart phones, features like voice
activation application and a sliding touch pad adds further to the distinctiveness of our
multi-functional I-holo.

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PRODUCT STRATEGY:
Like mentioned in the product review, the I-holo has all the useful and amusing features a
user could ask for, also we are giving a one year warranty with our smart phone. We will
be attempting to strengthen our brand name throughout our launch and also will be
displaying our brand name and logo on our product’s packaging. Also like we have
mentioned above, we have planned to launch another highly advanced version of I-holo
after its demand starts to reach the decline stage of the product life cycle.

PRICING STRATEGY:
The retail price per unit for I-holo is going to Rs.65, 000, we are going to follow the price
skimming strategy for our smart phone, I.e.: charging a higher price in the introductory
phase of the product in order to make the maximum profits and as the competition
becomes more concentrated, we will reduce our prices to beat out our competitors and
sustain our market share. Since our product is price-elastic, reducing price would mean a
higher demand which might help us survive in front of our opponents. We would then
attempt to introduce a new version of I-holo as well using the same strategy of skimming
the market again.

DISTRIBUTION STRATEGY:
Like we mentioned above that we the manufacturers will be the retailers as well, thus it is
going to be a single level distribution channel. We have decided to open our outlets in the
top 50 markets of Pakistan. Our target is to create an elite and convincing atmosphere in
our outlets thus we have decided to give out detailed specification handouts, colored
photos to reveal the holocam results and most importantly the live demonstration of our
smart phone’s features which will not just attract our targeted consumers to our outlets
but would surely also act as a convincing factor when it would come to purchasing I-
holo. Also we are going to adopt business-to-consumer online marketing, through
creating our own website where people can purchase our smart phone online
conveniently.

MARKETING COMMUNICATION STRATEGY:

In order to communicate with our target market and create awareness for our product, we
have selected some of the finest ways to convey our message. We are going to advertise
our smart phone on the most known and huge social networking platform in today’s date,
used by both the youth as well as the middle aged people, i.e.: FACEBOOK. This would
surely create awareness among the people because face book is so commonly used
nowadays, that people will very likely notice I-holo advertisement. Using hoardings
throughout the posh areas and busy roads of Pakistan would be another way. Also we
would advertise our phone through television, radio and print media. In addition to this,
since due to the high involvement of the consumers in the purchasing process and a high
number of somewhat comparable alternatives, the consumers will be facing a complex
buying behavior, hence we have decided to offer a 10% cash discount on the first 100
sales of I-holo which would surely help us communicate with and encourage our targeted
customers very well.

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MARKETING RESEARCH:
Using research, we are going to analyze customers’ attitude toward our competitors and
their reaction towards our product which will help us in correcting any flaws present in
our product. This research will be done by taking feedback through surveys and market
tests. This feedback will help us in perking up and determining the efficiency as well as
the effectiveness of our marketing strategies.

MARKETING ORGANIZATION:
Fabled Abstracts’s chief marketing officer, Faizan Riaz, holds overall responsibility for
all the company’s marketing activities. For cost-cutting reasons, the company will
internally handle marketing campaigns, rather than relying on external parties. Sales,
advertising and promotions will be handled by Anas, Hassaan and Maria, the managers of
the respective sectors. Fig 2A represents the hierarchy.

FIGURE 2A

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ACTION PROGRAMS:
I-holo will be introduced in January. Following are the summaries of our action programs
which we will be using during the first three months of our launch
JANUARY:
We will promote our product through advertisements and exhibit our product in
electronic shows. We will promote our product in “Keynote”, a major electronic event
held every year. We will give a 10% discount on our first 100 sales.

FEBRUARY:
We will contact BBC’s “Click Online” and ask them to review our product in their
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program. We will start our national tour and promote our product in various central
locations in Pakistan.

MARCH:
We will arrange a lucky draw in an event organized by our company for youngsters and
business giants. The sole purpose would be awareness, as here in this event, apart from
fun and games, we will conduct a mini seminar to discuss the features of our product.
This seminar will be conducted by various celebrities.

BUDGETS:
We have predicted a sale of 100,000 units in the first year of our launch. Keeping in mind
the retail price of I-holo which is Rs.65,000 including a variable cost of Rs.40,000, we
have calculated the break-even point which is 160,000 units.

Break-even point = 4,000,000,000/(65,000-40,000)

= 160,000 units

CONTROL:
We have decided to use the total quality management and zero defect technique to ensure
the phenomenal quality of our smart phone throughout. Also we will have exceptional
customer services provided at our outlets which will not just satisfy our targeted
customers but will also help us cope up with our competitors. Apart from this we will
keep a close check on the performance of our competitors so that we can prepare our self
for future challenges!

PACKAGING AND LABELING:

The last step in the value creating activities of the VALUE CHAIN is the packaging of I-
holo. We have decided to show some innovation with the packaging as well. Just like our
smart phone projects a 3D image, we are going to make a 3D triangular box for I-holo
which is going to be very trendy and attractive ! I-holo will be created in 3 dazzling
colors:
 shining black
 Sleek mud brown
 Striking purple
With each of the above colors will be the similar colored packaging. Our phenomenal I-
holo, comes along with augmented products like charger, headsets, a USB cable, 3
attention-grabbing and trendy changeable cases in different colors and patterns, a detailed
guidance booklet about all the features of the I-holo and how and when to use the
different options, a 64GB memory chip for information and entertainment storage, last
but not the least, a sales support service, i.e.: a one year warranty card with stern but
highly satisfactory repair and exchange policies for the consumers!
As far as the labeling is concerned which is the last step towards the launch of our smart
phone, the packaging’s of I-holo will be labeled brilliantly with our LOGO which
indicates our brand name and the name of our company, FABLED ABSTRACT plus a
depiction of our smart phone projecting a holographic image would also be printed on the
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packaging’s making it look more complete.

CONCLUSION:
Fabled abstract is not just expecting I-holo to create a great deal of hype in the market but
is also expecting it to generate our company a great deal of profit since the holographic
imaging technology is absolutely novel and is going to be presented in the market for the
very first time. I-holo is anticipated to bring a revolution in the world of smart phones
which sure will tag our company as the TREND SETTERS of the 21st century!

In the end we would like to appreciate the assistance of Sir. Faisal Kazi as he was a
guiding hand through the entire report. His lectures in the course of Principles of
Marketing were very valuable from a practical and theoretical point of view

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