Marketing Management (Final

Project)
Launching of Innovative Product

Product: Mobile Sensor

By:
Zaira Hassan 073605-004 Serial # (06)
Omair Shahid Nagi 073605-016 Serial # (12)
Ahmad Farooq Butt 073605-034 Serial # (18)
Arooj Naseem 073605-037 Serial # (21)

To:
Mr. Aly Raza Syed

Date: May 23, 2009

University of Management &
Technology

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Executive Summary

We are the new company in the market of mobiles tracker with the name of
WAG Pakistan. The location of the company head office is in Building XYZ,
Floor # X, ABC Road Lahore, Pakistan (www.absolutemobiletracker.com). The
product we are going to launch is an innovation in Pakistan. The name of our
product is WAG and its logo is

Our product is an automatic mobile tracker which connects with the cell
phone through Bluetooth. Whenever this connection breaks the tracking
device starts beeping. The range of the connection is 5 to 8 meters.

Our tracking device is also equipped with GPS, the Global Positioning
System, through which the users can do navigation while traveling and track
their mobile after theft even the mobile is switched off.

The mission statement of our company is as follows:

“Our vision is to be the best Cell Phone Tracker Company of the

world. We will make this by providing our respected customers
the full tracking solution of superior quality at fair prices as to
earn adequate profit for the growth of the company”

We are going to target the people of age ranging from 14 to onwards, both
males and females but the condition is that they should have the cell phone
having Bluetooth facility.

The consumers can get the product from the company maintained outlets
firstly in metropolitan cities of Pakistan. Then we will arrive at other cities.
The price of the tracking device is $19.99

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Regarding promotion, we will use both ATL and BTL. This report contains the
proper budget allocation for different forms of advertising. Our Slogan is
“Absolute Mobile Tracker”.

We are going to use the By-Pass strategy to enter into the market, because
the product we are going to launch is very technological and people would
have much confusion regarding our product in their minds so, it would be
difficult to spread awareness of our product. We start from small
achievements to bigger and bigger.

The report contains the 7P’s analysis and SWOT Matrix analysis. The full
financial analysis is also included in this report.

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Acknowledgements

Firstly we would thank Allah for giving us the opportunity and the resources
to be able to do something productive with our lives. Without His
blessings we would not have been able to come as far as we have.

Then our sincere thanks to Mr. Muhammad Saleh, most respectful teacher,
for helping us throughout this project. His guidelines have been very
useful for us in preparing this report. I feel great pleasure in expressing
my gratitude to him for providing all possible help and encouragement
in carrying out this Project.

We would like to thanks our Professor Mr. Aly Raza Syed, who gave this
Project to us to. He helped us a lot in the making of this Project.

We would like to thanks our friends who gave us information and their
opinions to make this Project.

Last but not the least we would like to thank our families for their incessant
support and approval.

Omair Shahid Nagi

Ahmad Farooq Butt
Arooj Naseem
Zaira Hassan

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Table of Contents

Our Innovation.......................................................................................................... 10
Explanation of Innovation:.....................................................................................10
How is it creating a Differentiating? .....................................................................11
Need Gap Analysis.................................................................................................12
How our Product fulfill these need?.......................................................................15
Why it’s going to sell? ..........................................................................................16
Current Market Situation.......................................................................................18
DEEP-LIST Analysis ..................................................................................................20
Why focus on mobile?...........................................................................................20
Demographics:......................................................................................................20
Technology: .......................................................................................................... 21
Corporate Intent....................................................................................................... 21
Mission Statement ................................................................................................21
Corporate Goals and Objectives............................................................................21
Sales Goals and Objective.....................................................................................22
Major Market Trend...............................................................................................22
Key success factors...............................................................................................22
Competitive Analysis:...............................................................................................24
Market Segmentation ..............................................................................................24
Demographic......................................................................................................... 24
Geographic............................................................................................................25
Psychographic......................................................................................................25
Behavioral.............................................................................................................26
Target Market Analysis .........................................................................................26
Age Structure of Pakistan: ....................................................................................26
The Product Analysis................................................................................................ 29
Brand Name..........................................................................................................29
Logo...................................................................................................................... 30
FAB Analysis .........................................................................................................30
Quality Statement................................................................................................. 31
Placement strategy ..................................................................................................35

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 Channels of Distribution........................................................................................36
Promotion Strategy...................................................................................................36
Product Positioning Strategy.................................................................................36
Key features and benefit:......................................................................................36
Packet content:..................................................................................................... 37
ATL/BTL.................................................................................................................37
Advertising objectives...........................................................................................38
Frequency and Media Vehicle Selection:...............................................................39
Proper Budget Allocations Advertising:.................................................................40
USP........................................................................................................................40
Slogan................................................................................................................... 41
Direct selling strategy:..........................................................................................42
Push vs. pull strategy:...........................................................................................42
Promotional materials:..........................................................................................43
Leaflets:................................................................................................................. 43
Banners.................................................................................................................44
Hoardings ............................................................................................................. 45
Market Entry Strategy:.............................................................................................47
Bypass attack........................................................................................................ 47
Launch plan:.......................................................................................................... 48
Soft launch strategy:.............................................................................................48
Official launch:.......................................................................................................48
Event Marketing At Launch Stage;........................................................................49
Publicity and Public Relations Activities:...............................................................49
Gantt chart:........................................................................................................... 50
Pricing ...................................................................................................................... 50
Penetration pricing................................................................................................51
Computation of Price.............................................................................................51
People ......................................................................................................................52
Processes:................................................................................................................. 53
Physical evidence:....................................................................................................54
Land and building:.................................................................................................54
Outlets/shops:....................................................................................................... 54

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 Location and site details:.......................................................................................55
Quantitative SWOT Matrix Analysis:.........................................................................55
Strengths .............................................................................................................. 55
Weaknesses ..........................................................................................................56
Opportunities.........................................................................................................56
Threats.................................................................................................................. 56
Financial Analysis .................................................................................................... 57
Start up Cost – One Time Expense........................................................................57
Cash Flow..............................................................................................................59

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55
Our Innovation
Explanation of Innovation:
T

he product we are going to launch is a new Bluetooth Testing Device, the

WAG Compatible with Cell Phones having the facility of Bluetooth
connectivity.

This Tracking Device benefits the user in two ways:

• Our product is a tracking device connected with the mobiles having
Bluetooth and our small software. The mobile users just have to install
our software & after this we will provide him with a tracking device
which is moveable and small in size and weight that you can put it in
your pocket, attach with your collar, belt, tie means you can acquire it
anywhere – connected to the cell phone through Bluetooth which helps
the user of the cell phone in a way that whenever the connection of
the tracking device and cell phones breaks, the tracking device starts
beeping and vice versa. The range of the connection of tracking device
and cell phone is about 8 to 10m.
Our product shows you the direction of your mobile phone through an
arrow. Whenever the tracking device starts beeping, an arrow shows
you the direction of your mobile phone. As you come in the range of
Bluetooth the device a stop beeping but the arrow shows you the
direction until you pick your mobile and press any button.
• Our product is equipped with Global Positioning System (GPS) network
so the users can accurately locate where they are and easily navigate
to where they want to go, whether walking, driving, or traveling. The
other benefit of GPS is that if your cell phone has been theft, you have
the facility to track it, for this you have to follow the following steps:
• Make a phone call to our Mobile Tracking Department (MTD)

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 o Tell the representative the PIN code (would be provided when
you purchase the cell phone)
o You will get the location of your cell phone in few minutes.

How is it creating a Differentiating?

O

ur product is an innovation in Pakistan – it already doesn’t exist in Pakistan

and that is the major differentiating point. No such kinds of tracking device
along with GPS System have been launched in Pakistan.

Before the mobile tracking was a difficult job even it was impossible for most
of the users to track his or her cell phones. We are going to fashion a new
trend by

“Giving the Customer the Facility to Track His Mobile on It Own”

Our innovation is making an ease for mobile tracking even it has theft. Now
our customers don’t have to worry if they have lost their cell phones. Why?
Because our cell phones are equipped with the GPS technology through
which our customers can track their mobile in just few minutes by simply
making a call on our help line.

This technology is not only for Pakistan, you can enjoy this facility in every
corner of the world by subscribing as both international and domestic
customer.

Our customers can enjoy all the features that other mobiles have along with
the above mentioned facilities.

All of these facilities are when combined together differentiate not only us
but our respected customers as well in the market and make us ahead of our
competitors.

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Need Gap Analysis

Total
number of
mobile
Years user Population Percentage
146,404,
2000 306,493 914 0.21
150,399,
2001 742,606 566 0.49
153,470,
2002 1,698,536 779 1.11
156,196,
2003 2,404,400 488 1.54
159,266,
2004 5,022,908 367 3.15
162,490,
2005 12,771,203 385 7.86
165,873,
Table 1: Showing the Percentage of Mobile Users from 2000 to March 2009
2006 34,506,557 928 20.80
169,340,
2007 63,159,857 538 37.30
172,800,
2008 88,019,812 051 50.94
176,242,
Mar-09 91,442,341 949 51.88

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 Figure 1: Graph of Percentage of Pakistan Population Using Cell Phones from 2000 to
March 2009

According to above information as the population of Pakistan is increasing,

the number of people using cell phones is also increasing and the graph is
going up continuously.
As we draw a trend line we find that in coming years the number of cell
phones users in Pakistan will increase more (Fig. 2).

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 Figure 2: Trend line for Cell Phones user in Pakistan

Now, what are the problems the cell phones users are facing? The problems
are as follows:

Most of the mobile phone users often forget where they have put their
mobile in their homes and offices, so what happens then? They have to leave
their work and spend time on finding their cell phones.

Sometimes the cell phone users have to make an important phone call but
they forget that where they have put their mobiles phones, so they have to
face a problem.

Sometime the people are in urgency fail to remember to pick up the cell
phone when leaving for office or for home. Again a problem!

The ratio of the mobile theft catastrophe is increasing day by day. The
people not only lose their money but also face nervous tension. So … again a
problem!!

What are the needs of a cell phone user that have not been fulfilled still now?
The needs are as follows:

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 • They want a device which reminds them that they haven’t pick up their
cell phone.

• They want to track their cell phones when theft

How our Product fulfill these need?

As mentioned above our Tracking Device has two new features that can fulfill
these needs: the two new features are:

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 • The tracking device connected with cell phones through Bluetooth
which starts beeping when the connection of the Bluetooth breaks. The
range of the Bluetooth connection is about 8 to 10m. Whenever the
cell phone user, who has the tracking device, comes out of this radius,
the tracking device starts beeping.

“This helps the customer a lot because it makes the user to remember
to pick up his or her cell phone”

Now here the question arises that if the user has the cell phone in his
pocket and he forget to pick up the tracking device, then? The user
don’t have to worry because if he picks up the phone but don’t pick up
the tracking device – again the same case – the mobile phone starts
beeping after you are out of the range of Bluetooth. Now one of the
need of the cell phones users have been fulfilled.

• The second need of the cell phone users is to track their phones after
they have theft. To fulfill this need our product is equipped with GPS
system and our company has the GPS network. Now our customer can
track their mobiles even after theft. Our customers just have to make a
phone call to our MT department, tell the representative the PIN code
of their mobile phone and then they will get the location of the cell
phones in just few minutes

So our product fulfills both needs.

Why it’s going to sell?

We are going to modernize the cell phones trend by introducing two fabulous
features in our product (Tracking Device & GPS System). No doubt the cell
phones are fulfilling the need of communication but what if your mobile
phone is missing?

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We are in the market with the solution; we are one step ahead then others,
our product provide full control on tracking your mobiles anywhere like in
homes, in offices, in shopping malls etc.

Moreover, our product has the GPS system through which you can track your
mobile even after theft.

That’s why it is going to sell. People will spend little more once rather then
spending money again and again. People will bear a small loss rather then a
big one.

While making a decision for purchasing a mobile phone people mostly look
the voice quality, features like memory space, software installation, music
player, camera and other, but when they know that they can have all the
above features plus our unique features (Tracking device & GPS) in little
more cost they would love to buy it.

We have asked people in Hafeez centre and hall road to get the feed back of
the mobile users and inquire about such kind of product and their willingness
to purchase and get that 64% people are willing to get this device.

Number of Days We 4
Observed

Total number of people 100

Asked 0

Say Yes 639

Say 360

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 People Willing to Buy out of 1000

80%
64%
60%
Percentage

36%
40%

20%

0%
Yes no
Series1 64% 36%
Ye s or No

Current Market Situation

The current market situation is shown in the following figure:

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 Table 2: Full Data of Mobile Usage & Spending on Mobile Phones from 2001 to 2008

According to the above figure

The market size is:

• The total number of cell phone users in Pakistan from 2001 to 2008 is
about 90,340,050 people

• About 50,366,577 people enter into the cell phone market in 2008

• The entire mobile phone users have mobiles with Bluetooth.

The market potential is:

• The total cell phones bought from 2001 to 2008 is about 161,800,408

• The total cell phone bought in 2008 is 5,794,385

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 • The total spending on cell phones from 2001 to 2008 in Pakistan is
$16,180,040,795

DEEP-LIST Analysis
Why focus on mobile?

Mobile phones are no longer just for talking. Many of the new devices being
released by manufacturers today include the ability to surf the web, send
emails and SMS text messages, store mp3’s, take pictures, watch video and
many other great features. Did you know that?

• There are twice as many mobiles phones as PCs in the world (over 2.2
billion).
• Mobile phones are selling four times faster than PCs.
• 70% of mobile phones worldwide are already configured for Internet
access.
• The number of wireless subscribers using the mobile Internet is
expected to triple from 577 million today to over 1.3 billion by 2013.
Mobile phone users will create and consume 25 percent of the world’s
entertainment.

Demographics:

Nearly the 60% whole nation is mobile phone users. This includes all age
groups from teens to middle aged people. However use of high tech mobile
phones is more observed in men as compare to women. The favor of variant
features in mobiles are rated both my men and women but men practice
more to buy them. The demographic trait for our product is all the customers
and potential customers of mobile phones.

Our product is suitable for the middle, upper middle and higher income
holders. The device is costly but beneficial for the more precious cell phones

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that are often misplaced, or unbarred from eye. These income levels can be
the potential customers for our product.

The WAG do not require high technicalities in its usage. It is self sufficiently
programmed to operate on its own. This is an advantage for the users to do
not interrupt into lengthy procedures. Due to the simplicity, it can be used by
any person without technical caliber.

Technology:

In the 21st century, the telecom sector has advanced from simpler to
complex structure at one end and friendly user at the customer step. The
understanding to these inventions has made it simpler by now to use such
item of use. As mentioned earlier WAG is highly sensitive to the minor
changes in distances and detects out of defined radius it is very user friendly
at the same time. The technological approach has simplified it for its users.

Corporate Intent
Mission Statement

“Our vision is to be the best Cell Phone Tracker Company of the

world. We will make this by providing our respected customers
the full tracking solution of superior quality at fair prices as to
earn adequate profit for the growth of the company”

Corporate Goals and Objectives

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 “To achieve the image of the most favored Cell Phone Tracker
Company in the minds of our customers by delivering the value
through superior quality, Price and reliability”

Sales Goals and Objective

• Achieve Break even sale of 870 units

• Achieve an internal rate of return of about 20%

• Achieve an average growth in sales of about 25% per year

Major Market Trend

Market is not ever stable; there are different trends in different times.

The market trends related to our product are:

• The population of Pakistan is increasing and with this the number of

people using cell phones is also increasing.
• Keeping the cell phone is now a fashion and the mobile market
contains people of age 13 to onwards.
• The cell phones in Pakistan are mostly of high costs which have
features like mp3 player, camera, Bluetooth and other facilities.
• Mobiles phones are the major mean of communication
• It’s the age of technology and the technology of the cell phones is
enhancing continuously. People now want more and more facilities and
features in their mobiles.
• As people spend high amount on mobiles phones they want its security
– that is the need of the customers.

Key success factors

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Wag is an oriental product. It is a need that has not been focused so far in
the local market. The cellular companies have so far focused in one body
(handset) features and capacities. Our product is capable of accommodating
with cell phones thus securing them.

It is a plus point for WAG that it can perform its function with featured
mobiles. It does not require changing technical design for any specific cell
phone. Rather it has features that will be appreciated by the customers.

Another key factor is its modesty yet simplicity that will be adored by its
users. Wag design is considered on the basis of age groups. From a young
intellectual to an average, aged person will find it very simple. The design
focuses mainly to the need of its customers.

The product is shaped up into easy handling. Its size, weight and material all
are well considered in designing. The weight and size has made it lighter and
material used is free of environment hazards. Its weight is 8grams, with a
dimension of 1.2 and 2.0 inches (3.04 into 5.08 cm) and a radius of alarming
approximately 8-9 meters. It is a trim body with a specified use and
functions.

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Competitive Analysis:

The WAG tracking device is an innovation in Pakistan, but a tracking system

exists in the market but it is only for LG mobiles. These is built-in in which a
message is send to the chosen number whenever the Sim of the LG mobile
changes.

This is our substitute competitor and there is no indirect competitor of ours

in the market.

Market Segmentation
The purposes of segmenting a market to allow the marketing program to
focus on subset of prospect those are most likely to purchase the offer. This
offer meet the functional requirement of the customer that if you lost your
mobile than the device WAG beep as a reminder within the radius of 5 to 8
meters.

Variable used for segmentation

Demographic

Demography focuses on population structure, processes and dynamics,

whereas demographics are most often used in the fields of marketing.
Provides enough information about the typical member of this group to
create a mental picture of this hypothetical aggregate. For example, a
marketer might speak of the single, female, middle-class, age 18 to 24,
college educated demographic.

• Age: friendly usage wag from adolescence 13-19 to late adulthood 65+
(e.g. person who had low memory).

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 • Gender: male and female

• Income: from middle to upper class. It is cheaper and easily

purchasable for the entire mobile user having mobile with Bluetooth
connection.

• Occupation: students, professional, traveler, technicals to unemployed

people. Basically it is easily usable for all type of workers in this
growing age.

Geographic

It divides market into different geographical units such as nation, state,

region but WAG firstly operate in main cities and pay attention to other cities

• Region: firstly wag is introduced in metropolitan cities of Pakistan i.e.

Karachi & Lahore and then to Islamabad Multan, Sialkot, Sargodha and
small cities etc…

• Country: Pakistan

• Density: urban, suburban

Psychographic

In the field of marketing, psychographic variables are any attributes relating

to personality, values, attitudes, interests, or lifestyles.

Psychographic lifestyle: outdoor-oriented, trend and fun living people, young

seeker and impulsive people. Experiencer’s.

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Behavioral

• Occasion: regular occasion and special occasion.

• User status: regular user, first time user and potential user.

• Usage rate: light user, medium user and heavy user

• Readiness stage: unaware, interested, desirous and intending to buy.

• Attitude towards product: may be negative, hostile, indifferent, positive

and enthusiastic.

Variable Description
Demographic Age, Income, Gender, Occupation
Geographic Pakistan, Firstly Metropolitan Cities, Urban & Suburban
Behavioral Occasion, usage Rate, User Status, Readiness Stage,
Attitude towards product
Psychographi Lifestyle
c
Target Market Analysis

Age Structure of Pakistan:

The age structure of Pakistan is as follows:

• 0-14 years: 37.8%

• 15-64 years: 58%

• 65 years and over: 4.2%

Figure 3: The Age Structure of

Pakistan

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As the highest percentage is of age group ranging from 15 to 64 years and
the second highest percentage goes to the age group of 0 to 14 years so we
will target some part of category 3 (0 – 14) and full part of above two
categories.

Gender structure of Pakistan

Males Females
0 - 14 43,617,953 36,741,25
8
15 - 64 51,892,539 48,951,02
3
64 and 4,908,749 3,818,533
above

Total 100,419,24 89,510,81

1 4
Table 3: The Number of Males & Females in Pakistan

We will target both males and females

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 Figure 4: Showing the Males & Females of Pakistan

In general we will focus the people having the cell phone equipped with Bluetooth
because our product can use only with the mobile have Bluetooth.

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The 7 P’s Analysis

The Product Analysis

Brand Name

The Brand of our product – Tracking Device – is WAG

Wag is the word of English which means “wave to and fro”.

The reasons to choose this word are:

• It is easy to pronounce

• It is easy to remember

• It is easy to speak

• It’s a unique word

• Fits with brand portfolio

• Linguistically clean

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Logo

The logo of our brand is as follows:

Why we choose this has following reason.

• Uniqueness

• Relevancy

• Appealing

• Simple

• Space efficient

FAB Analysis

Features Attributes Benefits

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Innovation Track mobiles Fulfills the tracking
needs
Automatic process You don’t have to do Easy to use
anything
Bluetooth connection Compatible with your No interruption to others
mobile only near by
Point out the direction Arrow blink in the Save time of searching
direction of your mobile
Portable Attach with your belt or Acquire it anywhere
pocket
GPS System Navigation Easy travelling
GPS System Anti-theft technology Track your mobile
anywhere in the
Pakistan after theft
Vise versa system Mobile and tracking If mobile comes out of
device are range of Bluetooth
interconnected mobile starts beeping
Mobile lock system After 3 minutes of No one can use your
beeping, mobile locks mobile
automatically
No operational cost Use as many time as Non-expensive
you want
Choose the beeping Differentiate with other Your convenience
style and volume subscriber
Low weight Easy to carry Take it anywhere
Small size Can be put in pocket Acquire it anywhere

Table 4: The FAB Analysis of WAG

These are the some features that our product has to fulfill all of your tracking
needs. It is easy to use, easy to carry; you can acquire it anywhere, with no
operational cost. Your device is compatible with your mobile only so no one
can track your mobile without your device. It is also equipped with GPS
system with helps you in finding ways while traveling anywhere across
Pakistan. It also helps you in tracking your mobile after theft even it is
switched off.

Quality Statement

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 Promises you Innovative, quality products and service
excellence from a company you can Trust.

Our Quality Policy is to develop, produce, and deliver on time, products and
services that meet or exceed customer expectations. In order to do this, we
have implemented quality systems and processes that are continually being
improved to satisfy our customers’ changing needs.

Background
WAG Pakistan provides an innovative product to the mobile users. Our
plant in Pakistan manufactures the tracking device for the domestic
market and we provide our customers with the product that meet the needs
of our customers. Because of our complex business, we have developed this
Quality Statement that we believe will satisfy customer inquiries regarding
our quality system and test certification. WAG Pakistan understands the
need for continuous improvement. We are pleased to provide this
information about how our Quality Systems operate, and how we insure our
products meet our customers’ needs.

Quality System

WAG Pakistan manufacturing and service operations are registered to

the internationally recognized ISO 9001 quality standard, assurance
that these plants maintain consistently high standards.

Product
WAG Pakistan is committed to providing our customers with superior
quality and have implemented exact quality systems to promise this.
We place a strong emphasis on quality design, utilizing problem and waste
prevention to build quality into our products and processes. Quality Function
Deployment, highly recognized for its systematic approach to product design
and development, is a key tool used at WAG to help us determine customer

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needs and the internal testing protocol needed to assure product quality. By
including customers in this process, we are able to prioritize their
requirements and prevent deviations in our performance. All our products
are manufactured to WAG specifications and undergo testing to assure
conformance. Additional test verifications are included to assure compliance
with unique industry and customer specifications when requested.

Environmental
we recognize the necessity for responsible environmental management
and conservation of resources. Pollution prevention, recycling, and
reduction of all types of waste and emissions are integral parts of WAG
Pakistan environmental program. WAG Pakistan’s main manufacturing plants
are registered to the internationally recognized ISO 14001 environmental
standard.

Continuous Improvement and Customer Satisfaction

Continuous improvement at WAG Pakistan has become a way of life.

One of the key strategies of our manufacturing location is to constantly
improve our processes. Our manufacturing sites use a quality tool kit that
includes Statistical Process Control, Design of Experiments, and Process
Capability (Cp,Cpk) to help us meet our objective. WAG also uses many
customer satisfaction measurements to determine our performance in the
marketplace with distributors, major customers, and the ultimate end users
of our products.

Supply Chain Excellence

WAG Pakistan focuses on providing Supply Chain Excellence for all the
customers and markets we serve. We track our performance across the
entire supply chain against a thorough set of metrics. The way we purchase

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raw materials has a major impact on our ability to give our customers
consistent, quality products, on time and at competitive prices. Our Supplier
improvement process measures ongoing performance and emphasizes ISO
9000 registration. Our goal is to achieve operational excellence in all aspects
of procurement, manufacturing and supply, and customer order fulfillment.
We will do this through the use of new technologies, innovation, a dedicated
and talented workforce, and a commitment to the principles of continuous
improvement.

Product Range and Mix

WAG Pakistan produce only one product and that is the mobile
Tracking Device. This product is an innovative in Pakistan. WAG
allows you to track your mobile in your home and even after theft.

In this technology a tracking device is connected with the mobile phone

through Bluetooth and the tracking device starts beeping whenever the
connection breaks. It breaks due to one reason only and that is the range of
the Bluetooth connection is 5 to 8m. Whenever the device comes out of this
range the connection breaks and the device starts beeping. Same is the case
when you forget to pick up your tracking device, when the mobile comes out
of the above mentioned range the mobile starts beeping. The arrow in the
direction of the cell phone makes it easy to find the phone.

The mobile would automatically switch off when there is no response of

beeping in 3 minutes and this would be unlocked if and only if you press a
button on your tracking device.

The device stops beeping when you come in the range of Bluetooth but the
arrow will continuously blink in the direction of your mobile until you press
any button of your cell phone.

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Moreover, our product is equipped with the GPS System through which the
user can benefit in traveling because of Navigation across the Pakistan.
Besides this, the user can find or track their mobile after theft by simply
calling us and telling the PIN code of their mobile.

Placement strategy
Refers to how the product gets to the customer; for
example, point-of-sale placement or retailing. This
Manufacturers
fourth P has also sometimes been called Place,
referring to the channel by which a product or service
is sold (e.g. online vs. retail), which geographic region
or industry, to which segment (young adults, families,
business people), etc. also referring to how the
environment in which the product is sold in can affect
sales.
Customers
WAG Pakistan will not engage in any wholesaling and
retailing distribution strategy. Company has its own
multiple outlets (3 – 4) in the major areas of major Zero Level
Strategy
cities of Pakistan. The people can acquire our product
by ordering online because we are using brick and click
or online strategy.

WAG Company sells its device directly to consumers with the express
purpose of eliminating retailers that supposedly add cost. This product is also
selling through internet. Customers can be quite effectively targeted in many
situations because of the context that they, themselves, have sought out.
For example, when a consumer searches for a specific term in a search
engine, a “banner” or link to a firm selling products in that area can be
displayed. Print and television advertisements can also feature the firm’s

55
web address, thus inexpensively drawing in those who would like additional
information. Data can be collected relatively inexpensively on the Net.

Hence the WAG will engage in zero level of distribution strategy.

Channels of Distribution

As we mentioned above we have only 3 to 4 outlets in one city so we’ll use

selective distribution of our product. The product will directly transferred to
the end customers without any intermediaries involved through the company
outlets and the company’s website (Charged Home Delivery, Terms &
Condition Apply)

Promotion Strategy
Product Positioning Strategy

In marketing, positioning has come to mean the process by which marketers

try to create an image or identity in the minds of their target market for its
product, brand, or organization. It is the 'relative competitive comparison'
their product occupies in a given market as perceived by the target market.

The tracking device WAG is for all type of mobile user who lost their mobiles
in their homes and offices. Not only this, the device tracks the mobile after
theft anywhere in the Pakistan.

Within the area of 8-9 meters. This device helps you to find you’re mobile
and is an ideal device to search your mobile. It gives an audio cue through a
small device and also point out the right direction of your mobile. If you are
in the right direction than the beep sound signal become low.

Key features and benefit:

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 • Find missing mobile quickly and easily

• Locate mode find mobile up to 5-8 meters. And audio directional

technology guides you.

• Easy to use setup in seconds through Bluetooth. Once the software is

transferred through Bluetooth than no need to switch on the Bluetooth.

• Automatic locked the mobile if within the three minuets mobile not
detected.

• It is only for one mobile and issued by proper documentation. And it

has a one year license.

• Handset size is 1.22 inches by 1 inch. (w) 1 by (h) 1.22 and weight is 8
gram.

• Free of environmental hazards.

Packet content:

• 1 little handheld wag gadget

• Two languages user guide i.e. English and Urdu.

ATL/BTL

55
WAG Pakistan will engage in a different strategy because it will first use the
following strategy:

• Shop display stands (POS Promotion)

• Brouchers and Leaflets

• Posters

• Sale Girls

• Price Discounts

Then we will engage in the following strategies

• TV

• Internet

• Radio

• Newspaper

Advertising objectives

Wag has specified its advertising objectives. The advertisement will be used
as a tool to incorporate the device name to all its potential customers. These
objectives are set prior to the knowledge of it valuable customers who shall
seek benefits in the product. The advertising is outlined with strategy of
penetrating into the market. Every ad and every advertising campaign
should have clearly defined objectives. The advertisement motto is to
promote our product in all geography.

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The advertising objectives include:

1. To position company and brand name

2. To get immediate buying actions
3. To introduce new products to customers by the company name
4. To provide ongoing contact with target customers
5. To maintain relationship with satisfied customers

Frequency and Media Vehicle Selection:

The advertisements are designed to reach maximum of its potential

customers. The advertising parameters both print and electronic are used to
attract the target market.

The frequency is set for the timely hours when the electronic media is the
best availing.

Similarly, print media is taken into interest for the high rating. The frequency
is chosen between rushed hours for viewers whereas weekend magazines
and weekly news papers for readers.

At the beginning we shall be targeting the popular TV stations as well as

radio channels like Geo, ARY and FM 101 and 106.2 respectively

Through our advertisement strategy we shall be able to set a frequency of

exposure through print and electronic media. The frequency is based on the
high traffic time of the channels such as news bullet in, sit comps and sports
matches etc. the purpose is to expose the customers at least twice on
electronic media while regularly through prints.

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Proper Budget Allocations Advertising:

The advertising budget has been set initially of 80 lacs. This budget is further
estimated for print and electronic media. 40% is allocated to TV stations,
while 15% to radio channels. 25% is allocated to print media that includes
advertisement in daily news papers, magazines and 20% is budgeted for out
door campaigns such as hoardings, holistic marketing.

Total budget = Rs 1,500,000/-

Media Percentage of budget
Posters 40%
POS 5%
Broachers & Leaflets 25%
Sales Girls 10%

pos
SG 14%
28% POS
10%

B&F
48%

USP

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WAG Absolute Mobile Tracker, by thinking about it increase the curiosity
level in the mind of people that what is WAG is a small device for those
people who have the shortage of time and in hurry they lost their mobile. It
is the solution for them not to worry about their mobiles because WAG helps
you to find their lost mobile in three minutes and after three minuets mobile
will be atomically locked with a sound of beep when you are in exact
directional location within the area of 8-9 meters.

WAG is a registered product and issued through license by proper

documentation by company and company has a password for its record of
the product. It has a one year life span and a one year license, after one year
license is re-issued, if you purchase the product in the beginning than the
first re-issuance of license is free.

The USP’s of WAG tracking device are as follows:

Innovation
Automatic process, you don’t have to do nothing
Bluetooth connection
Point out the direction of mobile with an arrow
Portable, acquire it anywhere
GPS System, do navigation and track after theft
Vise versa system, device track mobile and mobile
tracks device
Mobile lock system, after 3 minutes of beeping if
there is no response the mobile locks
No operational cost
Choose the beeping style and volume
Low weight
Small size

Slogan

The Slogan of WAG Pakistan is “The Smart Log” means the smart monitor of
your mobile

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Direct selling strategy:

The gadget WAG would be directly sold to the consumer away from the
company owned outlets because it is the registered trademark and issued
through license so nobody else is the owner of the product only it is sell
directly through the company outlet. It has the few reasons:

• Direct selling is a good way to meet and socialize with people.

• Direct selling offers flexible work schedules.
• Direct selling is a good way to earn extra income.
• Direct selling is a good way to own a business.
• Earnings are in proportion to efforts.

In the beginning it provides the opportunity to earn the income and business
of their own, and the cost is low, Consumers benefit from direct selling
because of the convenience and service it provides, including personal
demonstration and explanation of products.

Push vs. pull strategy:

By analyzing the demand of the consumer WAG is introduced in the market,

because it is more time wastage to find a lost mobile. Consumers "pulls”
information they demand for their needs, while the officers or suppliers
"pushes" them toward the consumers. In the beginning it requires high
spending on advertisement. Product is advertised through advertisement to

55
give more information to consumer and in the beginning it is more time
consuming to push the customer to increase the demand of WAG. It is the
product which is innovative to the consumer and is push to the customer by
advertisement.

Promotional materials:

Point of sale

WAG is using POS system for cash transaction. It can be made through
credit cards but not cheques. The POS system can include the ability to
record and track customer orders, process credit, connect to other systems
in a network, and manage inventory. And the transactions are also made
through directly through cash payments and than the receipts to the
customer. We are using the software AccuPOS, are easy to use, and works
seamlessly for Business Works or, making it simple to manage business. It is
easy to process, quickly and efficiently.

Leaflets:

The leaflets of WAG Pakistan would be available on the sales counters of the
company outlets. The design for the leaflets would be as follows:

55
 How it Helps?
We are going to
fashion a new trend
by giving the facility
of cell phone tracking
in YOUR hands.

This device track your Enabling Safety with

www.thesmartlog.com
mobile phone Communication
automatically when
its Bluetooth Creating Change
connection with your
mobile breaks, its
If You Would Like To Talk
start beeping.
Further Please Contact

Not only this, you can

track your cell phone Building XYZ, Floor X
XYZ Road
even after theft Lahore
through our GPS +92 42 1234567

System. Or email us at
osnagi@gmail.com
So, enjoy full
Visit us at:
communication
www.thesmartlog.com

Banners

The design of banners is

as follows:

55
 Absolute Mobile
Tracker

Hoardings

55
55
 www.thesmartlog.com

Building XYZ, Floor X, XYZ Road Lahore

+92 42 1234567

Market Entry Strategy:

Bypass attack

Entering in the new is not as easy task to gain a market share in a situation
where the product is not served by existing market. As WAG is innovative so

55
we are using the bypass strategy to attract the customers. In a bypass
attack to gain market share, a firm identifies segments not served by the
existing firms and makes efforts to gain market share. It is easier to target
market and in this Way the demand for product will increase. And it is the
easy way to satisfy the customers in the beginning. And it is the new
segmenting of the marketing where leader is no standing.

Launch plan:

It is important while launching a new innovative product i8n market to

keep in mind the target market before the official launching of WAG it is
advertised through electronic and print media and it is necessary to launch it
before the actual; launch date. Here we will use both the soft launch and
official launch strategy. But firstly WAG is launched through soft launch
strategy.

Soft launch strategy:

For the success and for the more demand of the WAG it is introduced in the
market by internet or by print media because the internet is the perfect
media for launching. A Web site that is implemented for it. A Web site can
easily be deployed in pieces. The Web medium allows for an ever-expanding
online publication that can be routinely updated. And it is one of the ways to
inform the target market about their needs. It creates a buzz about the
product and has a greater impact on media coverage. In this way curiosities
of customer increase about the innovation and can help of the official
launching of the WAG.

Official launch:

After that we will advertise the benefit by selling it. By giving the leaf lets
CD, and we will try it to the customer before purchasing. We will fixed the
date of official launching of the product and than send invitations to the

55
different companies CEO’S e.g. telecom and mobile phone companies and
give a brief introduction of a product. And also send the mails to the
company employees for the promotion and welfare of our product.

Event Marketing At Launch Stage;

At the event marketing launch we shall be looking forward for the telecom
sector. Wag is introduced for the mobile phones. It is a tracker that is build
outside the handsets. The event marketing will include the mobile phone
companies’ collaboration day for the welfare of the industry. The agenda of
this event is to promote the cell phones in urban as well as rural areas and
accommodating space for small accessories supports. The value added
features and the technology advancement user friendliness of WAG-tracker
shall be discussed among the industry. As it is hand in hand technology the
idea to bring all onto one platform shall be beneficial.

The event management can be catered for the sponsorships at universities,

colleges for their academic and co curricular activities. Similarly, the events
can be sponsored to companies’ employees’ tournaments etc.

Publicity and Public Relations Activities:

For publicity and relationships we shall be making certain objectives to

achieve such as product idea, good will, company name and sales
forecasting. Our initial steps will include:

• Seminars

• Press media briefings

• Event sponsorships

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 • Letters to the editors

• Speaking engagements

In addition we will accelerate closer to the launch with intensive marketing

campaign from closed to on rood publicities. The activities will include visits
to universities, colleges, community centers, public playing grounds etc.

Gantt chart:

Pricing

Pricing a new product that you are introducing to the market provides
additional advantages and challenges. Educating the buyers on what your

55
product is and why they want to purchase it is important. According to our
research pricing your product when the buyer is just learning about your
product and before you have competitors (at least yet) is unique the
penetration strategy is better then others.

Penetration pricing

As our product is innovative Penetration pricing is the opposite of skimming.

Penetration pricing involves setting your price low so you can penetrate your
target market with a large number of sales and garner a large market share.
Once market share is captured, price may be increased. An advantage of
penetration pricing is that it will make the industry less attractive to
competitors.

Penetration pricing works well when the buyer is sensitive to price. In other
words, demand is elastic. It is also a good strategy if your cost of production
involves high fixed costs because these costs can be spread over many units
creating economies of scale.

Computation of Price

number of units
produced/month 15000
Variable Cost/Unit $6.4
$202,50
Contribution/Unit 0
fixed cost / unit $13.1

price $19.5
selling Price $19.99
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 Table 5: The Calculation of one Unit of WAG Tracking Device

So our selling price would be $19.99

People
Wag has collected a team with excel competency. Our team is dedicated and
well qualified persons. The specific skills include understanding of the
product as well as the business. This team will be initially trained for the job
enlargement purpose. The training will mainly feature on the managerial
prospective. The team has experience in the industrial field and requires
some managerial tools.

The key people will include:

• Marketers

• Selling and forecasting sales

• Communicational skills

• Customer service

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 • Operations management

In addition to these key people company has plans for managerial and non
managerial staff. Managers will be appointed to marketing, sales and
forecasts, customer services and operational management. This will monitor
the activities as well evaluate the goals over performances.

The mangers have been appointed with the valuable experiences and
competencies. These managers will take the initial steps of the company and
formulate strategic planning.

However, the spokesperson will be appointed within the team who is capable
of the technology as well as the business goals. The liaison is an important
key person who is majorly responsible for the communicating companies’
objectives. Therefore the person appointed needs to be specific in
technology as well as well communicator for the company. His initial
responsibility is to convey the message between company and its customers.

Initially the managerial staff has been appointed who can meet up the
company mission with its resources in the best way.

The non managerial staff will be a cross functional team oriented people.
This staff will be appointed on need basis to each department with
contractual jobs. However, for sales department the sales representatives
will be appointed on weighted method that is, depending on outlets size,
density and location.

Processes:
The sales process has been simplified. There will be no intermediaries in
sales channel. The role of intermediaries has been exempt and direct selling
has been targeted. This strategy is useful in two ways:

55
 • Firstly it gives us direct data about the sales that will be valuable in
building database and forecasting sales.

• Secondly it will reduce the cost of putting intermediaries in selling

channel.

Initially the product will be launch in brick n click. The physical and visual
appearance of Wag is an opportunity for the company to build its name. The
website as well as small advertisements on networking sites will be
beneficial. For physical sales customers will be attended on independent
outlets. ……………………………………………………………………. The sales of
products are based on receipts and database entries with customer
information. The first license re issuance will be free whereas onwards will
be charged.

Physical evidence:
Land and building:

The head office is planned to be in Lahore. The land and building will be
rented for the operations of the company. The company will rent a floor at a
commercial building in prime location of the area. This main office will serve
the purpose for all the managerial staff to plan, organize, and control the
activities. This specific office will also collect data from various outlets,
formalize its strategies and train its employees. As the business will grow
more land shall be arranged for working purposes.

Outlets/shops:

The intermediary role is avoided in our selling strategy. Therefore, direct

outlets shall be rented in big cities initially. These outlets will be again
selected at prime locations in Karachi, Islamabad/Rawalpindi and Lahore. The

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number of outlets will be determined on numeric and weighted average
method. Thus the density of potential will be taken in account. Later the
outlets will be opened in other cities on nationwide.

Location and site details:

The location of the outlets and main building is very important in the initial
period of the company. The company has decided to rent some places. It is
worthy to take rental lands at prominent locations. The availability of
parking, surroundings, building structure location and condition is given
importance. The outlets will be made customer friendly. The outlets will be
provided with sufficient information about the product, its mechanism, and
benefits and also to the related categories. The customer will be provided on
time free trial of product thru testers.

Quantitative SWOT Matrix Analysis:

Strengths

• Wag is an innovative product in Lahore. It is a tracker that is outside

the mobile phone. The product makes respective mobile phones
secured and prevents from short memory loss instants. The quality of
the product is the small distance in which it works and response to the
small changes.

• Wag is designed so that it does not cost much over charging or battery
usage.

• Its user friendliness, simplicity and design add to its strengths.

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 • The unique programming of Wag (device) can be used in mobile
phones via Bluetooth. It does not require specifications in its design for
the mobile phones.

• It response to its programming autonomously that saves both time and

psychic tensions.

• It is a product that has been produced with materials that are

environmental safe thus it is not polluting the endangered ecological
system.

Weaknesses

• It is a young product whose compatibility will measure with time.

• Wag team has to plan strategic and tactfully, the planning should meet
the best for our limited resources.

• Difficulty in brand awareness as a start up company in the market.

• The capital necessary to grow the business.

Opportunities

• Collaborating with the growing telecom industry.

• More precision in technology advancement

• Helping to grow the general products market with technology.

Threats

• Future/ potential competition from telecom industry.

• Imitate poor quality software’s companies.

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 • Decreased competitors/substitutes prices.

Figure 5: SWOT Matrix Analysis of WAG Pakistan

Financial Analysis
Start up Cost – One Time Expense

Firstly we are going to launch our product in two cities Lahore and
Islamabad. The estimated budget is as follows:

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Particulars Cost (Rs)
Software Cost 600,000
Rent (Security) for 6 shops 80,000
Rent (Security) for Factory 800,000
Decoration & Infrastructure of
Buildings 1,500,000
Training of Employees 15,000
Machinery Cost 2500000

5,495,00
Total 0

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Cash Flow

Beginning Cash
Balance
Cash Inflows
(Income):
Cash Collections 0
Credit Collections 0
Investment Income 0
Other:

Total Cash Inflows $0

Available Cash
Balance $0
Cash Outflows
(Expenses):
Advertising 1483000
Software Cost 600,000
Inventory Purchases 250,000
Maintenance & Repairs
Operating Supplies 1,500,000
Office Supplies 25,000
Permits & Licenses
Utilities & Telephone 1,000,000
*Sales training 15000

Subtotal $4,873,000
Other Cash Out
Flows:

Subtotal $0
Total Cash
Outflows $4,873,000
($4,873,000
Ending Cash Balance )

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