STRATEGIC MARKETING MANAGEMENT

MARKETING PLAN OF DILATO PEN DRIVES

SUBMITTED TO:
DR.N.MURTHY

SUBMITTED BY:
GROUP NO: 4
ANOOP.S. PILLAI
CHARANYA.M
GOPINATH.S
RAJ PRADEEP.T.N
VAMSIKANTH

SUBMITTED ON: 30/11/2009

ACKNOWLEDGEMENT

These acknowledgements are not just a piece of formality but our heartful gratitude
towards all those who cooperated with us and extended their support in the making of this report.
First and foremost, we would like to thank to DR.MURTHY for the valuable guidance
and advice. He inspired us greatly to work in this project. His willingness to motivate us
contributed tremendously to our project. We also would like to thank him for showing us some
example that related to the topic of our project in the classroom.
Besides, we would like to thank our college for providing us with a good environment and
facilities to complete this project. In addition, we would like to take this opportunity to thank the
non-teaching staff, Librarian, Computer assistants for allowing us to work at late nights. It gave
us an opportunity to participate and learn about the MARKETING PLAN OF DILATO PEN
DRIVES.
Finally, an honorable mention goes to our friends for their understandings and support to us in
completing this project.

EXECUTIVE SUMMARY
The following marketing plan forms the basis for the introduction of a range of innovative new
products in the pen drive category. The analysis allows us to outline the best strategies to follow
for the achievement of the companys strategic goals. Dilato will be marketed as a unique
functional pen drive while striving to reinforce the companys status as the leader in innovation
and successful product launches. The Indian external data storage market is estimated at roughly
Rs 900 crore, growing at over 20 per cent since 2007. The mid-tier segment occupies almost onethird of the total market.
Growth in internet surfing and content building has contributed to an increasing demand for
high-storage external devices. External hard disks of 250 GB and 320 GB capacities capture 75
per cent of the market demand, followed by portable pen drives, MP3 players and flash drives.
Storage capacity, speed of transfer, reduction in noise and portability are the main drivers for the
demand for external storage devices. Success will be reflected by a sizeable capture of market
shares within this market, while strategically carrying the company up to the top spot as the
market leader in the FMCE sector.
Our major competitors are Kingston, SanDisk, and Transcend.
Our just completed pilot study reveals that Kingston, Transcend, SanDisk and iball are the major
players who have occupied the Indian market with their offerings, but since we found out that
Kingston and Transcend are occupying the strong positions in the market perception level
about product, price and quality, and offerings, the major successful factor which driven them to
this level is creation of demand for the product. Kingston and Transcend carries the advantage of
product innovations in the Flash Drive market, by launching innovative and stylish product
ranges, attractive channel and end user schemes, and marketing activities as well as defining new
market segments, which lead them to success in the Indian competitive market.
We aim to create superior quality products that fit your high - tech lifestyle, and we believe
in WIN, WIN, and WIN philosophy.
The main principal objective is always to be a Customer driven company, we focus our
objectives on providing the superior quality products that fits high - tech lifestyle. The corporate
culture that exists in the organization is professionalism and team work as well. As a declaration
of our commitment to quality we would implement the Six Sigma concept throughout the
company, our commitment to R & D ensures that we will continue to introduce superior quality
products to leave the competition far behind. As a company our superior quality products which
brings Tomorrow's World, Today.
The project is on creating a marketing plan for pen drives which involves the creation of the
brand and brand elements along with the suitable integrated marketing communication for the
product. It also includes various studies like the market analysis, competition analysis and
competition pricing to find out the feasibility of the product in the market. Then the entire
segmentation, targeting and positioning for the product is designed with the complete product
mix and product variants with their respective pricing and the logic behind the pricing. Next the

marketing plan talks about the entire distribution channel that will be followed for an effective
reach of the products to the end users through various channel partners.
We believe that good marketing objectives which help an organization for its success, and also
guides us to enable a business to control a marketing plan, To help motivate individuals,To
provide a common goal, To provide an agreed, consistent focus for all function of our
organization. Objectives provide the starting point for marketing plans and marketing strategy.
The success of the strategy should be evaluated in terms of the extent to which the objectives
were achieved.
Dilatos objectives set out what we are trying to achieve, and our marketing objectives can be
defined at two different levels: Corporate Level and Functional level. In corporate level
objectives we would consider customer loyalty, profit, growth, Market leadership, Commitment
to dealers, retailers & employees and Leadership capability. In corporate level we aim to build
customer database of at least 250,000 households within the next 12 months. We also aim to
achieve a market share of 10% We aim to achieve 75% customer awareness of our brand in our
target markets.
We offer a wide range of pen drives such as low end, popular and the luxury which caters to
different segments of the target group. In Low end segment we offer USB flash drives/pen drives
that are priced below Rs 300. It will be of low price with the basic features, medium size and
easy to hold. In Popular segment we offer those pen drives which have some special features like
Bluetooth and Expandable memory. In luxury segment we offer those pen drives which have
some special features like LCD displays, MP3 player and Camera.
We develop clear headed strategies for achieving our sales and marketing goals. At period of
time we evaluate our brand challenges and deliver customized products and communications
plans to our target group. Our plans integrate tactical public relations and marketing
communications to drive results in current situation and competitive markets. We ensure
continued product development and market visibility with measurable results that help to achieve
well defined business goals.
We would target Students, Business, Working Professionals (age above 15 yrs) and
Corporate Industries / Institutions comes under Luxury, Popular and Low end segment; who
frequently transfers data. When compare to other storage devices pen drives are helpful for these
target groups in easy way of transferring and storing data.
Moreover, the marketing team also have to implement effective control mechanism and
evolution of effectiveness method in order to ascertain the launch of Dilato is successful; the
marketing strategies are efficient and progress constructively according to projection especially
in sales and penetrating targeted market. The suggested apparatus had been designed to aid the
department to evaluate the effectiveness of Dilato marketing plan and objectives are Constant
market survey and research, Quality Control mechanism, Customer Service and technical
support team, implement comprehensive plan to monitor the sales of Dilato. In evaluation and
control mechanism we do a Periodic Review, take care of the training Needs, Revenue
Assessment and Reviewing the Supply-chain and Dealer meet.

S.NO

CONTENT

PAGE NO

INTRODUCTION

SITUATIONAL ANALYSIS

MARKETING OBJECTIVES

FINANCIAL OBJECTIVES

11

ACTION PLAN

12

IMPLEMENTATION,CONTROL AND
EVALUATION

24

CONCLUSION

29

APPENDICES

31

REFERENCES

39

INTRODUCTION
As pen drives come under the consumer electronics industry, which is one of the largest
segments in the electronics industry in India. With a market size of $4.7 billion in 2008 catering
to a population of more than one billion people and significantly a low penetration of CE
products. The consumer electronics industry in India promises huge potential in the years to
come. The double digit compound annual growth over the next five years will be aided by
various factors such as growing household incomes, local manufacturing and expanding
distribution networks. As far as the local economy is concerned there wont be any effect on our
business if any change to the local economy is made. The flash market is one of the biggest
growing segments in India. However, due to its substantial dependence on parallel imports, apart
from business generated through authorized distributors, it is very difficult to estimate the correct
size of the market. And, surprisingly, the model is highly supported by the principals themselves.
The market is primarily fed by China and Taiwan, and runs purely on cash transactions. It is a
high volume business, conducted through both IT and telecom channels as well as large format
retails. However, with the current duty structure in place, FY 09 witnessed a major decline in
parallel imports.
Competition which creates fire to success for every company, as it is FMCE (fast moving
consumer electronic) product the scope for the growth rate is also good which creates to chance
for international players like Smart Modular, A - Data, Ramaxel, and Apacer to enter and
expand their business in this competitive market. But since we would carry the competitive
advantage of the first company to introduce the expandable USB flash drive and Bluetooth USB
flash drive to the Indian market with various product mix combinations, so it is a competitive
chance for the international entrant to adopt the same concept as such soon, and also to add fuel
since the international players are playing in the Indian market such as Kingston Technology
which has 28% of market share but still didn't introduce the concept of expandable and Bluetooth
USB flash drives to the Indian market.
In the current Indian scenario, the customers cannot expand their pen drives according to their
requirements and hence have to go for new pen drives with higher storage capacity in order to
transfer huge datas and information. Added to this, there is no such facility that could allow
multiple users to access a single pen drive at a particular location or platform inorder to share the
common datas and information. This situation is prevailing due to the lack of innovation in the
pen drive industry as far as the Indian market is concerned.
Our main purpose of the plan is to bring innovation into the pen drive industry as far as the
Indian market is concerned. Thus we are introducing the following high end features into our
Dilato pen drives at different variants catering to various segments of our target group. such as
Bluetooth, LCD displays, MP3 player, Cameras and expandable memory in the pen drives.

SITUATIONAL ANALYSIS

INDUSTRY ANALYSIS:
One industry that defied the slowdown and went on to
grow at a pace of over 50%is the ever burgeoning
market of storage peripherals. It includes devices such as flash/pen drives, flash memory cards
and sticks (that are used in mobile handsets and digital cameras), external hard disks, MP3/MP4
players, and digital cameras. What further helped the market in FY 09 was reduced duty structure
introduced by the Government of India, post Budget 2008. This new and flexible duty structure
not only helped importers in flooding the Indian market with these fast moving products, but also
stabilized the average selling price (ASP) of these devices hence, giving an additional boom to
the market. Another important changeover that took place with the introduction of current duty
structure is the gradual decline of gray market that until previous fiscal, formed a large chunk of
the market. However, parallel imports still dominated the market and is encouraged by the
principals themselves.

Flash your Style

With the increase in demand for digital data storage requirements, coupled with extensive
mobility associated with modern day-to-day business life demand for external and portable
storage mediums have been growing heavily. Both flash drive and flash card markets have been
growing phenomenally over the last two years. Although, the market was affected slightly due to
the slowdown, yet business was good in both product categories. What was more visible was the
rising demand for high-capacity pen drives. Today, the entry level capacity for a flash drive is
2GB/4GB which constitutes 70% of the market. The demand for 8GB flash drives followed by
16GB too has gained traction over the last year.

DQ EstimatesCyber Media Research

The flash market is one of the biggest growing segments in India. However, due to its substantial
dependence on parallel imports, apart from business generated through authorized distributors, it
is very difficult to estimate the correct size of the market. And, surprisingly, the model is highly
supported by the principals themselves. The market is primarily fed by China and Taiwan, and
runs purely on cash transactions. It is a high volume business, conducted through both IT and
telecom channels as well as large format retails. However, with the current duty structure in
place, FY 09 witnessed a major decline in parallel imports.
The end customer pull for Transcend in the flash market is very high and its popularity is fast
increasing. Kingston, however, is its biggest competitor. Both the brands offer a similar product
range, and have an aggressive pricing and strong channel programs. The horse race has
prevented both the brands to cement the number ONE position, and the rankings alter between
the two on a monthly, and sometimes even on a quarterly basis. One major issue pertaining to
Transcend is its lack of any local base in India, resulting in a poor structure of distribution. The
fact that it has appointed too many national, regional, and local distributors along with its
extensive parallel importers, the competition among its channel has risen ensuing price
undercutting and a volatile distribution system.
Kingston, on the other hand, has a more organized distribution model and a local team to drive
the same. The move has helped Kingston to regularize its product distribution and availability as
well as protect its partners. The third big name in this category is SanDisk. It was doing good
business but it lost momentum over the last one year, thus giving away considerable market
share to both Transcend and Kingston. However, SanDisk has been on the forefront in terms of
setting new trends by launching innovative and stylish product ranges, attractive channel and end
user schemes, and marketing activities as well as defining new market segments.

The most important development in the last year was the declining share of parallel or gray
market trend that remained the dominant factor in all product categories in the storage peripheral
segment. With IT products becoming more like lifestyle products, the storage peripheral devices
are going beyond just data storage. It is fast embracing the concept of lifestyle storage with highcapacity and high-performance being the buzzwords.
MACRO ENVIRONMENT
As pen drives come under the consumer electronics industry, which is one of the largest
segments in the electronics industry in India. With a market size of $4.7 billion in 2008 catering
to a population of more than one billion people and significantly a low penetration of CE
products. The consumer electronics industry in India promises huge potential in the years to
come. The double digit compound annual growth over the next five years will be aided by
various factors such as growing household incomes, local manufacturing and expanding
distribution networks. As far as the local economy is concerned there wont be any effect on our
business if any change to the local economy is made. The flash market is one of the biggest
growing segments in India. However, due to its substantial dependence on parallel imports, apart
from business generated through authorized distributors, it is very difficult to estimate the correct
size of the market. And, surprisingly, the model is highly supported by the principals themselves.
The market is primarily fed by China and Taiwan, and runs purely on cash transactions. It is a
high volume business, conducted through both IT and telecom channels as well as large format
retails. However, with the current duty structure in place, FY 09 witnessed a major decline in
parallel imports.
Competition which creates fire to success for every company, as it is FMCE (fast moving
consumer electronic) product the scope for the growth rate is also good which creates to chance
for international players like Smart Modular, A - Data, Ramaxel, and Apacer to enter and
expand their business in this competitive market. But since we would carry the competitive
advantage of the first company to introduce the expandable USB flash drive and Bluetooth USB
flash drive to the Indian market with various product mix combinations, so it is a competitive
chance for the international entrant to adopt the same concept as such soon, and also to add fuel
since the international players are playing in the Indian market such as Kingston Technology
which has 28% of market share but still didn't introduce the concept of expandable and Bluetooth
USB flash drives to the Indian market.

Todays plethora of digital devices lets us create, store, play and share all kinds of digital media,
including mp3s, photos, videos, documents and more. With the growing sophistication of these
devices comes a need for ever greater amounts of storage, in a small physical size, using the least
amount of battery power possible, giving you longer battery life when you most need it. Flash
memory was invented by SanDisk and is a computer chip that retains its memory even when

turned off or unplugged. This was a breakthrough, as previous types of memory chips would
instantly lose any information stored on them when the power was switched off. Now that a type
of solid state memory with no moving parts had been developed, a possible eventual replacement
for the hard drive was born.
Fast forward to the end of 2005, and flash memory has finally matured into a large capacity
product that takes up little space and has much lower power requirements than a hard drive
using 30 times less power. It is lightweight, reliable, highly durable being able to withstand being
dropped and other rough treatment and is getting ever cheaper, although today still very
expensive for traditional hard disk sizes of 30Gb and larger. As with hard drives, flash memory is
not indestructible, nor does it last forever, with 10 years being the expected data retention life
span for flash and a lifespan of at least 5 years and more for hard drives, although by then youre
likely to be using much more advanced technologies (flash, hard drive based, optical or
something else) with far greater capacities.
Today Pen Drives have come up as the most advance and effective medium of data storage
and have become a popular tool for business and professional people. USB pen drives have
established themselves as the most effectual storage device, which allow users to store a vast
amount of data without much effort. This is because of the increasing popularity of these useful
pen drives that CDs and floppy diskettes have been replaced and have become a second option
for storage. The most fascinating feature of this majestic device is that it holds memory without
any power supply. Moreover, it is very easy to carry it anywhere. Pen drives are available at
various sizes from 2GB to 16GB costing from 200Rs onwards.

COMPETITION:
Our competitors are Transcend, SanDisk, Kingston and I Ball.
Our just completed pilot study reveals that Kingston, Transcend, SanDisk and I ball are the major
players who have occupied the Indian market with their offerings, but since we found out that
Kingston and Transcend are occupying the strong positions in the market perception level
about product, price and quality, and offerings, the major successful factor which driven them to
this level is creation of demand for the product. Kingston and Transcend carries the advantage of
product innovations in the Flash Drive market, by launching innovative and stylish product
ranges, attractive channel and end user schemes, and marketing activities as well as defining new
market segments, which lead them to success in the Indian competitive market.
The major strategies we would follow to track the competitors and stand alone in the market, we
would develop the products with believing the Five Core Competence Level which will lead us
to market leaders:

10

Best Quality Control:

Every product receives complete testing on quality at every stage of the product development
with vast range of components and peripherals.
Product Expertise:
Every product will be developed in expertise way to give a new look to market, and we meet the
customer's requirements by offering the product developments which brings Tomorrow's
World, Today.
Easy to Use:
We make sure that our products are ready for easy installations and use, with clear and complete.
Time for Need:
We make sure that our products are available at every place with competitive offerings to the
customer
WIN WIN and WIN Policy:
We believe in WIN, WIN and WIN policy, Our retailers should WIN their business goals with
our product, Our Customers should also WIN from our benefits, together which leads us to WIN
our business goals.
Customer is the king for our business; Today Pen Drives have come up as the most advance and
effective medium of data storage and have become a popular tool for students, business and
working professional people. USB pen drives have established themselves as the most effectual
storage device, which allow users to store a vast amount of data without much effort. With well
established channel network we make sure the product is available with competitive prices and
sizes at every place, the customer can easily walk in to nearest store and verify all available
product mix to take buying decision easily and quickly.

COMPARISON OF Transcend v/s Kingston

Transcend

Kingston

Products

1 GB 64 GB

1 GB 16 GB

Price

Less Expensive

Costly

11

Warranty

2 Years

5 Years

Mostly Preferable By

Students

Professionals

Certification To Co.

ISO 9001

ISO 9001

ISO 14001: 2004

Availability

Easily Available

DEMAND AND SUPPLY OF PEN DRIVES

12

In Selected Shops

200

180

160

140

120

100

80

60

40

20

0
1GB

13

2GB

4GB

8GB

16GB

32GB

64GB

SRENGHT AND WEEKNESS OF TRANSCEND PEN DRIVE

STRENGTH
AWARNESS
SIMPLICITY
LOW COST
MARKET SHARE
CUSTOMER SERVICE
GOODWILL

WEEKNESS
BRAND IMAGE
LIMITED WARRANTY

SRENGHT AND WEEKNESS OF KINGSTON PEN DRIVE

STRENGTH
HANDY
LIGHT WEIGHT
GOOD BUILD QULATITY
LARGE CAPACITY
FAST SPEED
BRAND NAME

WEEKNESS
SLOW TRANSFER
NO LOCK
NO PASSWORD PROTECTION
DOES NOT WORK IN WINDOWS 98

INTERNAL STRENGTHS AND WEAKNESS

1. Good distribution
2. Low cost
3. Good transfer speed
4. Warranty

14

1. Low awareness level

5. High end features

OPPORTUNITIES
1. Competitors market
2. Advancing technology
3. Market expansion

THREATS
1. Competitors
2. New players

A good objective of leadership is to help those who are doing poorly to do well and to help
those who are doing well to do even better.
MARKETING OBJECTIVES
We believe that good marketing objectives which help an organization for its success, and also
guides us:

To enable a business to control a marketing plan

To help motivate individuals
To provide a common goal
To provide an agreed, consistent focus for all function of our organization.

Objectives provide the starting point for marketing plans and marketing strategy. The success of
the strategy should be evaluated in terms of the extent to which the objectives were achieved.
Dilatos objectives set out what we are trying to achieve, and our marketing objectives can be
defined at two different levels:
Corporate Level
Functional level
Corporate Level

15

Corporate level objectives than concern the business or organization as a whole which defined
below:
Customer Loyalty:
We would like to be customer driven
company, we earn customer loyalty by
providing superior quality products that fit
your high tech life style, and we believe in
WIN, WIN and WIN philosophy.
Profit:
We achieve desired profits to finance growth,
and create value to our employees, retailers,
our customers and our corporate objectives.
Growth:
We consistently find market opportunities for growth which makes us to stand alone in the
competitive market.
Market leadership:
We lead in the competitive market by developing and delivering the superior and innovative
quality products, services and clear and complete solutions.
Commitment to dealers, retailers, and employees:
We make sure to define that our commitment to our dealers, retailers and employees by
rewarding based on their business performance, and creating a value relationship platform that
reflects our values
Leadership capability:
At every certain period, we find the people those achieving their business results and top
performers will be indentified as Leaders to create a competitive work environment which leads
us to win and grow.
FUNCTIONAL LEVEL:
We aim to build customer database of at least 250,000 households within the next 12 months
We aim to achieve a market share of 10% We aim to achieve 75% customer awareness of our
brand in our target markets

16

Both corporate and

used SMART criteria.

functional

objectives

need

to

conform

to

the

commonly

The SMART criteria (an important concept which you should try to remember and apply in
exams) are summarized below:
Specific - the objective should state exactly what is to be achieved.
Measurable - an objective should be capable of measurement so that it is possible to determine
whether (or how far) it has been achieved
Achievable - the objective should be realistic given the circumstances in which it is set and the
resources available to the business.
Relevant - objectives should be relevant to the people responsible for achieving them
Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to
be realistic.

FINANCIAL OBJECTIVES
Financial Objectives that helps us to make our products set even more technological advanced at
all market places, for our organization the ultimate goal of the marketing plan is the effect it will
have on the bottom lin. Measures reflect income statement items and common ratios.
We focus our financial objectives on Customer sales and
Channel sales
Achieve revenue growth of 20% per year
Increase sales by 15% annually
Recognition as a Superior advanced products
company
Stable earnings during recessionary periods
Increase profit margins and decrease working capital
life cycle
Maintain strong cash flow
Attractive profitability:

17

Because of superior advanced quality products and less competition, Dilato achieves attractive
profits.
Stable, Growing Market:
Dilatos primary customer base Young Students, Business, Working professionals and
Corporate industries tends to be less sensitive to the economic cycles faced by many other
businesses. Since Dilato products fulfill all high tech life style needs, they are essentials for all
professionals and business concerns at every period. This provides Dilato with a relatively stable
market in which to do business.
Overall Strategy to achieve Marketing
and Financial Objectives:
We develop clear headed strategies for
achieving our sales and marketing goals.
At period of time we evaluate our brand
challenges and deliver customized
products and communications plans to our
target group. Our plans integrate tactical
public
relations
and
marketing
communications to drive results in current
situation and competitive markets. We
ensure continued product development
and market visibility with measurable results that help to achieve well defined business goals.
We structure our pipeline with different methods distinctive brand positioning, credible visibility,
and enchaining bottom lines. Our R&D support would make sure to develop our products at
every point time to meet the market needs. We create a distinctive brand positioning in the minds
of consumer through our message saying that Our superior quality products which brings
Tomorrows World Today.

We redefine our communication message according to the different target audience. In case of
Medium and Luxury end segment pen drives we mainly focus on Business and Working
professionals, and communicate through popular business magazines explaining the products
features and benefits. In case of Low End segment pen drives we mainly focus on the young
students and corporate industries, and communicate through weekly and daily magazines
explaining the various products mix and price options. To add more fuel to create a strong brand
positioning we would participate in Trade shows, sponsorships and seminars to give more
identity to our brand.

18

We follow open doors to build strategic relationships, the sales department would make sure that
to provide the complete sales support all every level, everyone has right to bring an opportunity
or problem identification for the product development can bring into notice at any point time.
The competitors product developments and promotion offerings would indentified through the
sales department. And at the end what we believe as our overall important strategy is We put our
customers first in everything we do. One of our key strengths is our enormous product range. We
design, develop new advanced products to fit every ones high tech lifestyle.
Tactical Action Plan
When it comes to customers we keep in mind the importance of target
marketing. The reason this is important is that only a proportion of the
population is likely to purchase any products or service. By taking
time we have to pitch our sales and marketing efforts to the correct
market so that it will be more productive and not waste of efforts or
time.
It's important to consider the virtual segmentation by selecting
particular verticals to present your offerings to. Those verticals will
have the particular likelihood of purchasing your products and
services. Again, this saves you from wasting valuable time and
money.
Target segments should be compatible with the organizations goals and image
The market opportunity represented by the segment must match the companys
resources
The segment must represent an opportunity to generate enough sales to generate a
profit
The company should select target segments where it can enjoy a competitive
advantage
Pen drive
is a portable electronic data recovery device, featured with huge memory capacity enabling to
store more than compact discs. While compact discs collect data and restores it in a hard drive,
this same work can be done more efficiently using a pen drive, which in comparison stores

19

much more data. Storing spreadsheets, music, films and word documents

in it is an

effortless task. Pen drive has multitudes of advantages. It is compact in size and hence is easily
portable, making it convenient to be carried in one`s pocket. On the other hand, the compact
discs are larger and brittle demanding cautious handling. Pen drive is also sturdy erasing the
rule of breaking, unless an immense weight is exerted on it.
Thus the pen drive is widely used by all the segments because of its above mentioned features..
But they are widely used by the students, business and working professionals because of their
unique needs. Therefore we are targeting this particular segment of the people.
There are certain specific characteristics observed in this segment:
We would target Students, Business, Working Professionals (age above 15 yrs) and Corporate
Industries / Institutions comes under Luxury, Popular and Low end segment; who frequently
transfers data. When compare to other storage devices pen drives are helpful for these target
groups in easy way of transferring and storing data.

MARKETING MIX
Product / Service Benefits
Product Management communicates the market opportunity to the executive team with business
rationale for pursuing the opportunity including financial forecasts and risk assessment. Product
Management communicates the problem to Development in the form of market requirements.
Product Management communicates to Marketing Communications using positioning
documents, one for each type of buyer. Product Management empowers the sales effort by
defining a sales process, supported by the requisite sales tools so the customer can choose the
right products and options.
The business is dependent on one product USB Pen Drive, but since we would offer various
product mix to the market such as Normal Pen Drive, Blue tooth Pen Drive, Expandable Pen
Drive, LCD Display, Camera, and Pen Drive with MP3 Player and so on., the 80% of major
profits are from only Pen Drive which is divided from various product mix combinations in the
market
PRODUCT MIX: USB PEN DRIVE

20

Product Line:
We are into only one segment i.e. USB Pen Drive
Product width: We offer 3 categories of our product i.e. luxury, popular and low end to the
consumers.
1. Low end............ Low end segment of USB flash drives/pen drives refers to those pen drives
which are priced below Rs 300. It will be of low price and basic features, medium size, easy to
hold.
2. Popular.............. Popular segment of pen drives refers to those pen drives which has some
special features like Bluetooth and Expandable memory.
3. Luxury................Luxury segment refers to those pen drives which has some special features
like LCD displays, MP3 player and Camera.
Product depth:
Under the low end category we offer pen drive with memory storage capacity of 2 GB. In the
popular end category we offer pen drives with Bluetooth and Expandable memory. In the high
end segment we offer pen drives with LCD displays, MP3 player and Camera.

Benefits of our product match the customers needs and wants. And there are no gaps.

21

FEATURES

BENEFITS

USB Pen Drive with Mp3

player (built-in rechargeable
batteries)

Can store and play mp3 songs.

Also can store datas.

USB Flash drive with

Expandable memory

USB Flash Drive with in-built

Bluetooth

LCD Displays

Camera

22

Can expand their pen drive

storage/memory limit

Multiple users can access the

pen drives

CUSTOMER NEEDS
Two in one. (Data and mp3
player) The battery gets charged
when connected to the USB port
of the computer.

Customers are restricted with

certain storage limits but they
are in need of more storage
capacity.
This
expandable
memory helps the customers to
expand their storing capacity.

Multiple users cannot wait for

their turn. They can transfer data
immediately
with
efficient
speed.

LCD display enables browsing

LCD display of pen drive has
through the list of songs that you made it a high-end device. User
store in pen drive.
in need of viewing songs present
in the Pen drives.

One of the most advanced

features that are available with a
pen drive. It is a still camera for
a generic use

When the pen drive is connected

to the USB port of a computer, it
functions as a web cam.

Importance of Service, Warranty

For products of high end includes Camera and LCD display pen drives. Warranty will be
provided to these pen drives are upto 2 yrs from the date of purchase and service will be
provided all over in India.
For products in medium end which includes Bluetooth, MP3 player and expandable
memory warranty will be upto 3 yrs provided with the services all over India.
Now low end product warranty will be provided upto 5 yrs with service anywhere in
India.
Product differentiation
As our peer competitors are providing just simple products from the range of 2 GB to
64GB, we would carry the competitive advantage of introducing Pen Drives with features
like MP3 player, expandable memory, camera, LCD display and simple
Price
When marketers talk about what they do as part of their responsibilities for marketing products,
the tasks associated with setting price are often not at the top of the list. Marketers are much
more likely to discuss their activities rela ted to promotion, product development, market
research and other tasks that are viewed as the more interesting
and exciting parts of the job.
Yet pricing decisions can have important consequences for the
marketing organization and the attention given by the marketer
to pricing is just as important as the attention given to more
recognizable marketing activities. Some reasons pricing is
important, Most Flexible Marketing Mix Variable, Setting
Right Price, Trigger of First Impressions, Importance part of
Sales Promotions.
In todays competitive markets every customer will compare
the price, quality of the given products with another products
before taking the purchase decisions, in our case as well every
customer will compare the price, quality and benefits from our products with our major
competitors like Kingston, Transcend, and SanDisk as well.

The moment you make a mistake in pricing, you're eating into your reputation or your
profits.

23

Since Diloto is new to the market with new concept technology, our Medium and Luxury
Segment products would start its life cycle from the Introduction of Product Life Cycle Stage. So
the initial demand for the products would start slowly once the products are known by the market
the demand for the products would increase rapidly. And the initial pricing for these Medium and
Luxury end segment products would be low due to attract the market after reaching the growth
stage of life cycle the price would shift slowly.
Here below the proposed prices for the Dilatos products comparing to its competitors like
Kingston, Transcend and SanDisk
Kingston
Low End Segment

2GB

4GB

8GB

16GB

32GB

64GB

420

620

1050

1750

4599

9150

Transcend

Normal Pen Drives

2GB

4GB

8GB

16GB

32GB

64GB

420

529

944

1725

3799

9599

SanDisk
2GB

4GB

8GB

16GB

32GB

64GB

430

600

899

1575

4725

9600

4200

9250

Dilato's Price
400

Medium Segment
Expandable

520

800

1600

No Competition in Market
In built memory of 2GB, which can also be expandable
with memory cards. Cost Price Rs. 750

Bluetooth

In built memory of 4GB, which allows multiple user access at the

same time. Cost Price Rs. 950

Expandable &
Bluetooth

In built memory of 4GB, which provides expandable and allows

multiple user access at the same time. Cost Price Rs. 1050

24

Luxury Segment
MP3 Player
MP3 Player with
Expandable

No Competition in Market
In built memory of 4GB with MP3 Player facility. Cost Price Rs.
1150
In built memory of 4GB with MP3 Player facility, also has
expandable functions. Cost Price Rs. 1650

Camera

In built memory of 4GB with Camera facility. Cost Price Rs. 1600

LCD Display

In built memory of 4GB with LCD Display facility. Cost Price Rs.
1750

LCD Display with

Expandable option

In built memory of 4GB with LCD Display facility and

Expandable memory functions. Cost Price Rs. 2200

From the above prices in case of the normal pen drives, our competitors have already occupied
the market with their offerings which leads the products life cycle to move to Maturity Stage. So
these segment products have been priced lesser than our competitors to grab the market share.
The overall profit margin is 22% on each product which is distributed as the manufacturer would
carry 4% of profit margin, dealer would have 7% and retailer would carry 10% of profit margin
in every low end pen drives product.
But in case of Medium and Luxury end segment there are no competitors exists in the market, so
the manufacturer would carry the advantage of introducing the products and its proposed prices
as well. As per the above Pricing chart the medium segment pen drives categorized in to three
varieties, range between Rs. 750/- to Rs. 1050/-. And the luxury end segment pen drives would
range between Rs. 1150/- to 2200/- and categorized in to four varieties. Since no competition
exists in the market, the demand for these segments products would start slowly and near soon
would increase the demand rapidly due to introduction of advance technology pen drives, so
initially these segments pen drives have been priced a bit lesser to grab the market, and once the
demand is indentified clearly the prices would shift slowly. The overall profit margin is 30% on
each product which is distributed as the manufacturer would carry 7% of profit margin, dealer
would have 10% and retailer would carry 13% of profit margin in every low end pen drives
product.

Distribution

25

To reach end users, businesses need a well knitted network. The network includes
Manufacturers, Dealers, Distributors and Retailers that are in business lingo named as
Channel
Partners.
The channel partners play a vital role in success and failure of business. They are actually the
bridge between vendors and end users thus framing the outline for a company in end users
mindset. A distribution channel comprising of right channel partners offers the services to end
users at the right time without any delay. A well networked and properly knitted distribution
channel plays an important role in enhancement of sales growth. It is the key for resellers
to get the real picture and review of the product. Besides, giving them the first step aid in
understanding product and answering their queries, the distribution partners bridge the
gap between vendors and resellers. They facilitate them with the ability to roll back to the
vendors to rectify any problem and also to concentrate on the market with right policies in
place.
Different customers have different needs and performances Increasing degree of market
fragmentation Its hard for a product or brand to be everything to all customers Allows for
adaptation of marketing. Customer demands can change a successful position can become
absolute after a period of time continuous segmentation efforts are essential required, to hold
these successful position
We would follow two different level of channel management such as, Zero Level and Two Level
Channels. In case of targeting the Corporate industries we would follow Zero level channel
where companys sales executive would be directly meeting the corporate. But in case of the
other segments like targeting Young students, working and business professionals we would
follow two level channel where from the manufacturer to Dealer, from Dealer to Retailers and
from Retailers to Customers.

26

MENT
AME

mestic

ustrial

TWO LEVEL
The segmentation and
targeting for our products are
Students, Business and Working
Professionals which can be widely
SOD Template below as follow:

through

Young
explained

SERVICE OUTPUT DEMAND

SUB SEGMENT

BULK
SPATIAL
DELIVERY/
BREAKING CONVENIENCE WAITING
TIME

Low

Low

High

Medium /
High

Medium /
High

Medium / High

High

High

Medium / Low

Medium

Low

Medium

Medium

Medium

Medium

Medium /
Low

High

High

High

Low

Medium / Low

Medium /
Low

Medium / Low

High

High

Low End

High

High

High

Medium End

High

High

High

High End

High

Medium

Low End

Medium

Medium End
High End

27

ASSORTMENT/ CUSTOMER
INFORMAT
VARIETY
SERVICE
PROVISI
Low

Medium / H

28

PROMOTIONAL SCHEMES
Promotional methods it is about stimulating customers to buy a product. It is not designed to be
informative a role which advertising is much better suited to.
Sales promotion is commonly referred to as Below the Line promotion.
Sales promotion can be directed at:
The ultimate consumer (a pull strategy encouraging purchase)
The distribution channel (a push strategy encouraging the channels to stock the
product). This is usually known as selling into the trade
At the early stage we would direct our sales promotional through Push Strategy to create more
awareness, identity, and loyalty towards our products after achieving the good loyalty level; we
would diversify our method to Pull Strategy
Price Promotions
Price promotions are also commonly known as price discounting
These offer either (1) a discount to the normal selling price of a product, or (2) more of the
product at the normal price. We would bring Introductory Offer which a consumer get pen
drive at affordable price and quality than its competitors, and other price promotion method we
adopt, having tie ups with Consumers electronic manufacturers such as Videocon, Onida,
Computer and Laptop manufacturers too, where consumers would get special discounts when
purchasing our products along with any of these manufacturers products.
Customization and EMIs facilities:
To attract the market we would bring the new concepts in Pen Drive market which are
Customizations and EMI facilities for Luxury Pen Drives, in this the consumer can either
customize the product in the form of Color, and packaging styles etc. and also he has the choice
of paying through EMIs with his credit cards.
COMPETITORS PROMOTIONAL METHODS
According to our major competitors such as Kingston, SanDisk, and Transcend, as of now we
cannot find any sales promotions initiated by them to attract the market. And to add more fuel,
the media advertising activities are also very low when we look at the competitors. So we would

carry the competitive advantage of introducing various promotional methods to the market to
attract the competitive market.
MONEY ON ADVERTISING
The consumer market has become highly competitive with a new brand being born almost every
day. Irrespective of the kind of product you are looking for, be it consumer durables like
refrigerators, air conditioners, washing machines or fast moving consumer products (FMCG) the
number of brands available is truly mind boggling. Naturally it is the prime concern of every
marketer to promote their brand as a shade better than the competitors'. Advertising comes in
handy here. Advertising is a biggest weapon for a company to create awareness, loyalty, identity,
interest and desire in the minds of consumers. There are several reasons for advertising some of
which are as follows:
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.
Increasing the buzz-value of the brand or the company.
Print Advertising Newspapers, Magazines, Brochures
The print media have always been a popular advertising medium. Advertising products via
newspapers or magazines is a common practice. In addition to this, the print media also offers
options like promotional brochures and fliers for advertising purposes. We mainly focus on
major daily newspapers such as Times of India, Hindustan Times, Deccan Chronicle, The Hindu,
Times Classifieds, Economic Times, and Top Magazines such as Business Line, Fortune, Forbes,
Business Week, and Harvard Business Review. The overall yearly cost for Print Media would
be Rs. 10, 5, 80280/- and Magazines advertising yearly would be Rs. 1, 50, 1800/- (Detailed
explanation at Appendices)

Outdoor Advertising Billboards, Kiosks, Tradeshows and Events

Outdoor advertising is also a very popular form of advertising, which makes use of several tools
and techniques to attract the customers outdoors. The most common examples of outdoor
advertising are billboards, kiosks, and also several events and tradeshows organized by our
company. The billboard advertising is very popular however has to be really terse and catchy in

order to grab the attention of the passers by. We would initiate our outdoor advertising through
Unipole, Bangalore, Bus Stop Hoardings, Railway Station Platforms, Triads, Ebay, and Indoor
Advertising. The overall yearly cost for Outdoor Advertising would be Rs. 4, 98, 00,000/(Detailed explanation at Appendices)

IMPLEMENTATION
DILATO
IMPLEMENTATION PLAN
MARKETING PLAN
PREPARATION
Research design
Produce the design to
evaluation
SWOT analysis on company
Research on potential
customers
Research on customer and
determine targeted market
Research and determine
marketing strategy
Prepare financial projection for
Dilato
Prepare implementation plan

DEC

JAN

FEB

MAR

APR

MAY

JUN

JULY

AUG

SEP

Prepare control and evaluate

monitoring
PRE-LAUNCH EVENTS
Marketing department inform
sales department about Dilato
product ,and all staff participate
in seminar to discuss marketing
strategy for 4 days
Gather the resource to produce
Dilato , ensure enough
production capacity
Create website for Dilato and
launch
Create monitoring plan to keep
track ROI
Distribute Dilato to Retail
stores and Corporate
Educate and train marketing
team on Dilato, Sales strategy
and consumer behavioral
Provide support to all
distribution channels on
advertisement, technical
support, and others.
LAUNCH
Launch Dilato to targeted
market

Ensure all marketing strategy

like advertising, promotion
campaign is effective
POST-LAUNCH
Monitor and control(monthly)
the sales, the revenue and
compare with forecast figure
Ensure constant marketing
strategy to gain customers
Provide control mechanism to
monitor ROI
Constant training to customer
service on Dilato
Upgrade the website about
latest info on Dilato

CONTROL MECHANISM AND EVALUTION OF

EFFECTIVENESS
Moreover, the marketing team also have to implement effective control mechanism and
evolution of effectiveness method in order to ascertain the launch of Dilato is successful; the
marketing strategies are efficient and progress constructively according to projection especially
in sales and penetrating targeted market. The suggested apparatus had been designed to aid the
department to evaluate the effectiveness of Dilato marketing plan and objectives are shown
below:a. Constant market survey and research such as questionnaire method, observation on
consumer behaviourism will be implemented in order to evaluate the acceptance of
Dilato among its customers.
b. Quality Control mechanism also will be introduced in order to monitor the quality of
Dilato since this is the debut to the market. This will enable the team to capture any
defects, faulty parts that can occur after the customer purchase and use the product.
c. Customer Service and technical support team will be established to aid the customers
regarding any problems, defects, technical problems and others. This can ensure the
quality of Dialto will not be compromised.
d. The department also will generate and implement comprehensive plan to monitor the
sales of Dilato, the re-evaluate the market needs, and prepare marketing strategies to gain
more customers in the future.
e. The department will conduct customer survey to obtain report on the customers
satisfaction toward Dilato to gather suggestion improvements that might be needed to
enhance the second generation of Dilato in the future.
EVALUATION AND CONTROL

1. Periodic Review:
The activities of the marketing and sales team will be reviewed at the end of each month
on terms of targets reached and what is proposed plan for the next month, if they want
any changes in the existing system, problems faced by them etc. The report has to be
submitted in all respects to their respective team leader which will in-turn would be
discussed with the marketing head of the region.

2. Training Needs:
At the end of each quarter a review assessing training needs, if any , will be submitted by
all the team leaders to their Seniors so that timely action can be taken to train the sales
force and in case there Is requirement of more people it can be done accordingly.
3.

Revenue Assessment:
A report has to be submitted by respective department showing all the costs incurred by
them post launch of the product and an estimate of budgeted expenditure for the next
quarter. In addition there will be a meeting of the heads of all the departments. To
ascertain the profitability of the launch and subsequent planning.

4. Reviewing the Supply-chain and Dealer meet:

The product manager will organize a dealer meet to assess the stock in hand and the
future requirement and problems faced by dealers if any. Further dealers will be updated
about the marketing plans company is going to take up to the extent of providing discount
schemes or financing the consumers. A report has to be submitted on performance of the
channel suppliers and in case there is a need for any deletions, substitutions and leaving
out a channel in case of non-performance.

CONCLUSION
Pen drive
is a portable electronic data recovery device, featured with huge memory capacity enabling to
store more than compact discs. While compact discs collect data and restores it in a hard drive,
this same work can be done more efficiently using a pen drive, which in comparison stores
much more data. Storing spreadsheets, music, films and word documents

in it is an

effortless task. Pen drive has multitudes of advantages. It is compact in size and hence is easily
portable, making it convenient to be carried in one`s pocket. On the other hand, the compact
discs are larger and brittle demanding cautious handling. Pen drive is also sturdy erasing the
rule of breaking, unless an immense weight is exerted on it.

Thus the pen drive is widely used by all the segments because of its above mentioned features..
But they are widely used by the students, business and working particular segment professionals
because of their unique needs. Therefore we are targeting this of the people.

From the market and the competitor study we have come to a conclusion that there are several
big players in the low end segment of the pen drive industry and hence we expect a minimal
growth from this segment. This is the reason why we have priced our pen drives of the low end
segment lesser than our competitors by following the competitive pricing strategy. Whereas, the
scope in the medium and high end segment is very high when compared to the low end segment
as there are no big players in these segments and thus we have followed the cost plus mark-up
pricing strategy. Here we dont look at the market, instead we look at our own cost structure and
decide the profit we want to make and add it to our costs in order to determine our selling price.
More over there are no innovation in the high end segment and that is the reason why we have
brought in many high-end features in this segment. Thus we stand as the market leader in the
medium and high end segment with new technologies in our product. And hence we are
expecting huge revenue from the medium and the high end segment.

The expected revenue for the business after one year is as follows:
Number of Retailers would be 750 in Bangalore for all the three segments and the average price
of a low end pen drive will be Rs.500. Based on our assumptions, if one retailer sells 5 units per
month then the total revenue per annum would be Rs.2,25,00,000(low end). Similarly, the

average price for medium end segment will be Rs.1000 and if one retailer sells 2 units per month
then the total revenue per annum would be Rs.1,80,00,000(medium end). And the average price
for high end segment will be Rs.2000 and if one retailer sells 2 units per month, the total revenue
per annum would be Rs.3, 60, 00,000. Thus the revenue for all the three segments for the first
year would be Rs.7, 65, 00,000.

Manufacturers profit for the first year

The ratio of profit share for the manufacturer, distributor and the retailer in the low end segment
is 4:7:10. Thus the manufacturers profit share of 4% would be Rs.9, 00,000. For the medium
and the high end segment the profit share ratio is 7:10:13. Thus the manufacturers profit share
for the medium and the high end segment would be Rs.12, 60,000 and Rs.25, 20,000
respectively. Therefore the total manufacturers profit for the first year would be Rs.46, 80,000.
In future, we would like to upgrade our products according to the prevailing market trends by
continuous innovation and R&D.

APPENDICES-I

MEDIA PLANNING
Print Media
Newspaper
TOI Bangalore

Circulation
2000000

Slot
Ad Size: 15* 20 sq.cm

PM

Yearly Cost

342000

4104000

288000

3456000

42750

513000

30240

362880

Placed on Page 2
12 Times a Month

Hindustan Times

Ad Size: 15* 20 sq.cm

(Bangalore)

Placed on Page 4
12 Times a Month

Deccan Chronicle

1333668

(Business Section - South)

Display Color
(675 + 750) = 1425 *30 days

1270000

The Hindu

Rs Per Sq.Cm = 1550

(All India)

35 Sq.cm

Times Classifieds

For 25 Lines

(Mum, Delhi, Bangalore)

(950 + 470 + 370 = 1790) * 30

Economic Times

620000

53700

For 25 Lines

644400

1500000

(Mum, Delhi, Bangalore)

756690

10580280

APPENDICES-II
MAGAZINE
Magazine

Slot

PM

Yearly Cost

Business Line (The Hindu Grp)

Weekly Magazine

6200

74400

Ad Size : 15* 20 Sq.cm

15000

180000

28600

343200

30000

360000

50000

600000

125150

1501800

All India
Fortune

Place on 2nd Page

12 Times a Month

Forbes

Ad Size : 15* 20 Sq.cm

Place on 10th Page
Ad twice in 3 Months

Business Week

Ad Size : 15* 20 Sq.cm

Place on 2nd Page
Ad twice in 3 Months

Harvard Business Review

Place on 2nd Page

Ad twice in 3 Months

OUTDOOR

Outdoor
Unipole, Bangalore

Space

PM

Size : 40 * 20 Sq.feet (3nos)

Yearly Cost
3900000

Rental = 1300000(pa) * 3

Bus Stop Hoardings

Near Colleges

1500000

18000000

Railway Station Platforms

All Fast Junctions

1600000

19200000

Triads

MG Road

400000

4800000

E-bay

Internet Ads

200000

2400000

Indoor Advertising

Inside all malls

250000

1500000

3950000

49800000

50000 PM * 5 malls

PREFERABLE BRAND
9%
15%
40%

TRANSCEND

I-BALL
OTHERS
36%

M
V
gP
r

DIRECT
SALES

SALES
TEAM

REFERENCES

Philip Kotler - Marketing

Kevin Lane Keller - Strategic brand management
George E. Belch - Advertising and Promotion
http://tutor2u.net/business/strategy/objectives.htm
http://www.scribd.com/
http://articles.themarketingteacher.com/

www.marcommwise.com/sourceindex.phtm
http://www.marketingsource.co.uk/
http://marketing.about.com/
http://www.4psbusinessandmarketing.com