CITY UNIVERSITY OF HONG KONG DEPARTMENT OF MANUFACTURING ENGINEERING AND ENGINEERING MANAGEMENT MEEM3057 Industrial Marketing for Engineers Group 2 Marketing Plan Group members| SID| Chu Kin Wah| 50400206| Hui Siu Kei| 51394008| Lo Miu Hung| 51823121| Suen Cheuk Hang| 51187763| Shayekh Ahmed Ibn Hassan| 52076711| Tsang Kin Long| 51908478| Wong Cheuk Hei| 50620031| Yeung Cheung| 51447528| Content I. Introduction p. 3 II. Mission and objectives p. 4 III. Capabilities of our company p. 4 IV. Current Marketing Situation p. 5- 10 V. Positioning p. 10 – 11 VI. Marketing Strategy p . 12 – 20 . Product Strategy 2. Pricing strategy 3. Promotion strategy 4. Distribution strategy VII. Budgets p. 20 – 21 VIII. Controls p. 21 -22 IX. Executive Summary p. 23 – 24 X. References p. 24 I. Introduction What is LED light? With a view to creating a better quality of light and saving energy LED light has entered the light industry. Full form of LED is light emitting diode. The concept of LED is pretty simple. Like every other diodes, LED is made of semiconductor filled with impurities from Group IIIA and GROUP VA elements, creating a p-n junction.
As electricity flows from the p part to the n part, holes from the p part meet the electrons from the n part. When the holes and electrons meet, they radiate energy. In LED, this energy is used as light. Electroluminescence, the basic concept of LED was discovered in 1907 by H J Round. But until 1968, LEDs were very costly and inefficient for commercial and personal use. The Monsanto Company was the first industry to mass produce LED lights for indicators in 1968. After that, there had been quite some developments in LED technology resulting in the efficiency to rise exponentially with a doubling occurring in every 3 years.
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In 2008, using nanocrystals efficiency of 300 lumens/watt has been achieved. The efficiency, longevity and color variance have attracted a lot of customers to switch to LED lights from traditional fluorescent and incandescent light. LED lights are being used for traffic lights, street lights, different types of indicators, electronic gadgets, interior design, aviation industries, etc. II. Mission and objectives YJM Light Co. , Ltd. ‘s mission is to fulfill the demands of the customers with innovative design, foremost service and best quality, through its brand in the commercial and decorating lighting industry.
To achieve this mission, our company has the objective of gaining the major part of the global market share of LED lights with quality production and after sales service. III. Capabilities of our company With the principle of ‘product quality and service foremost’ YJM Light Co. , Ltd. has already drawn attraction of a lot of customers. Being established less than a decade ago, YJM Light Co. , Ltd. has already claimed the position of one of the most famous brands in the world to produce lights for commercial purposes. Starting with less than 100 staffs in 2004, YJM Light Co. , Ltd. lready has a workforce of 25,000 people and a production site of 20,000 square meters. YJM Light Co. , Ltd. produces various kinds of LED lights and accessories to satisfy different needs of its customers. With a very strong emphasis on research and development, YJM Light Co. , Ltd. has developed hundreds of different models of LED lights. The quality of the products of YJM Light Co. , Ltd. is strictly controlled and the safety of the users is always kept in mind. Under the ISO 9001:2000 quality management system, most of the products have UL, CE and ROHS certifications, proving the quality and safety of its products.
YJM Light Co. , Ltd. is capable of manufacturing lights in a very large scale and supply in the shortest period of time through its distributors. With an annual sale of about 100 million USD, YJM Light Co. , Ltd. has reached customers from all over the world. Different countries from six continents are being served by YJM Light Co. , Ltd. To appreciate the effort of this company, Hong Kong young Industrialist Award was awarded to the president of YJM Light Co. , Ltd. Mr. William. IV. Current Marketing Situation There is a global concern to save energy and be more environment friendly now-a-days.
Incandescent and fluorescent lights consume a huge amount of energy compared to the light they emit. Average incandescent light only emits 4% of the energy as visible light while fluorescent emits 26%. LED light gives a fine solution to this problem. Though the initial establishment cost is a bit high, LED light is more energy efficient and has a much longer life span. Even though LED light is a very new technology and it is rather new in the light market, it has drawn attraction of a lot of customers. Hong Kong MTR (Mass Transit Railway) has already opted for LED lighting.
With the help of Future Lighting Solutions, the trains will be provided with 32 high powered LED lights. It is expected that, this new lighting system will consume 30% less electricity and have 50,000 hours of lifespan triple of fluorescent lights lowering the maintenance cost. At present, three trains are equipped with system as a part of the project. MTR also plans to introduce LED lights in the train stations as well. Under the Public Works Program, Capital Works Reserve Fund, Hong Kong there is a project undergoing to change all the traffic lights of Hong Kong from ncandescent light to LED lights, costing 140. 3 million HKD. It will save 7. 6 million HKD and reduce 5,300 tons of CO2 emissions annually. They also plan to adopt LED lights in other applications. Led lights are getting popular in Europe as well. Birmingham, A city in UK plans to change half of its street lights to LED lights in the next five years. Netherlands has already built a highway with all LED lighting, and plan to do more. In UK, quite some real estate companies are using LED lights for energy efficiency and beautification.
Wakefield and district housing, a real estate company in UK, which holds and manages more than 32000 houses, has opted for LED lighting for housing. This trend is spreading throughout the world as well. Besides the above, another large market for LED light tubes is the illuminated sign manufacturers. Illuminated sign manufacturers opt for LED because of safety and reliability, the major concern of their customers. From the above, it can be seen that, public works systems is the largest market for LED lights. The recent global trend has driven most of the governments to switch to LED lights.
They need LED lights in a huge amount for public works. For real estate and interior designing company, LED light is catching the market slowly, but assumed to replace the CFLs in the long run. And last but not least, the illuminated sign manufacturer is another promising market for LED lights. Analysis of competitor There are two kinds of competitor of our company, direct competitor and indirect competitor; we will use SWOT to compare our company to our competitors to see our situation and power to fight with them. Direct competitor Company| Strengths|
YJM| * Short delivery time * Foremost service * Production capacity * Famous brand of LED Tube light. * Strong engineering research and development team * Qualified and experienced staffs * First-rate factory and equipment| Hubei Kento| * A professional LED Tube manufacturer * Authorized as the well-known brand * Short delivery time * First-rate factory and equipment| Ligitek| * Excellent customer service standards * high performance quality products * Short delivery time| EFFLED| * Production capacity * Strong engineering research and development team Authorized as the well-known brand | Company| Weaknesses| YJM| * Underfunding in many departments and programs * Lack of financial support for government understaffing at many levels * Inadequate resources for recruitment, retention, advising, and marketing| Hubei Kento| * Little room for growth * Bureaucratic structure * Underfunding in many departments and programs| Ligitek| * Lack of infrastructure * Limited budget * Customer Service staff need training * Management cover insufficient| EFFLED| * Lack of infrastructure * Don’t have a detailed plan yet|
Company| Opportunities| YJM| * Continuing Energy-saving as LEDTube * Online opportunities worldwide * Government policy support * Project case as school and hospital * International and off-line exchange programs * Becoming a leader in LED tybe and lighting. | Hubei Kento| * Have patents have been authorized by China Patent Bureau. Highly specialized workers * Expanding LED market * Scope for innovation in existing market| Ligitek| * Project case as school and hospital * Highly specialized workers| EFFLED| * More conversations and partnerships with local employers * Have patents have been authorized * Developed a wide range of LEDs * Most advanced technology and equipment| Company| Threats|
YJM| * Domestic market purchasing power of customer * Staff for genuinely better opportunities at other Lighting company * Growing competition from nearby LED Company| Hubei Kento| * Growing competition from nearby LED Company * Risk of losing prominent faculty| Ligitek| * Growing competition from nearby LED Company * Small privates international trading company * Retention of key staff critical * Vulnerable to reactive attack by major competitors| EFFLED| * Growing competition from nearby LED Company * Small privates international trading company| Indirect competitor
Competitor Company: Synergy Light Characteristics: They focus energy saving, Synergy Lighting System is designed to target these issues to conserve or natural resources. They redesigned existing to reducing energy, saving comparison, prolonged life cycle and increase efficiency. Competitor Company: NamKwong Characteristics Major flash tube product in the world and also provide low voltage neon tube and cold cathode fluorescent lamp. Is a professional LED manufacturer and have strong engineering research and development team. Our Company Innovator and professional lead manufacturer in the field of high power LED.
Sustainable ‘YJM” Trade mark has become an established and recognized brand in the decorative and commercial lighting industry. Has a well-trained team including full experienced technicians and online opportunities worldwide and Government policy support. Large quantity The company current product lines come from Japan. And the automatic mechanical is made by United States, has good quality, high efficiency. In our products require a much different channel than a standardized product. Direct, manufacturer representatives, and distributors sell through the various distribution channels.
Those can increases sales, improve sales coverage, reduce selling cost and directs marketing strategy. V. Positioning LED tubes of YJM lights can be positioned as following for the different target markets: For public works: We provide quality economic solution to energy saving in the quickest possible time. For real estate and interior designing company: We provide attractive and 100% safe solution to beautification and energy saving; For illuminated sign manufacturers: We provide reliable and economic solution to lighting. Product Review
LED tube have been started to be used widely for commercial, industrial and beautification purposes. There are many types of LED lights, but the most commonly and widely used is the LED tube. YJM Light Co. Ltd has developed many kinds of LED tubes. LED tubes are currently being used by many types of customers. However, the following markets have been identified as the most demanding, and therefore targeted. Market segment| Customer needs| Product features| Illuminated Sign manufacturer| 1. Flexible size and shape 2. Waterproof 3. Economic 4. Long life span 5. safety 6.
Colder light| * LED lights may come in many colors * Radiates 5 times less heat than CFL * 6 times longer life than CFL 10-15 times more than Incandescent * Flexible size and shape * CE, ROHS, UL| Public works| 1. Long life span (reliable) 2. economic 3. environment friendly 4. Efficient 5. Quick delivery 6. safety| * 6 times longer life than CFL 10-15 times more than Incandescent * Contains no hazardous materials like Mercury in CFL contributing to easy disposal after use, and radiate less heat * CE, RoHS, UL| Interior Designing Companies| 1.
Safety 2. Environmental friendly 3. Multi-color and beautiful 4. New, fashionable and trendy 5. Comfort of the customers 6. Economic| * Colorful lights * Fashionable and trendy * Multi reflector light sources * Can be used in a variety of fixtures with a lush and stylish decor create * Better than the incandescent or fluorescent lamps * Suitable for both indoor and outdoor * Can be used in all area in the house(dining room, living room, bathroom) * Change the atmosphere in particular room * Cool light(save to touch)| VI. Marketing Strategy
For our company marketing strategy, we will use 4Ps (Product, Price, promotion and Place) to vice our product to different segments and also consider the view on customer in order to find out the requirement on their side and try to consider our product to fit their considerations. 1. Product Strategy There are three segments in our plan in order to increase the market share of LED tube. There are different requirements for different segments as they use the product in different purpose; therefore, our product has corresponding specific features to meet the needs of customer.
Flexible Size and shape For the market segment of illuminated sign manufacturer, our product is used as an entering good for this type of company, our product will be become part of their product, such as the component inside light box. Therefore, customer will most require a flexible size and shape of our product as different size and shape of light box or advertising light box are used in our customer company and our product has different shape and size which has square shape, circle shape and strip like product so our products can fulfill the requirement of our customer.
Moreover, illuminated sign manufacturer requires that they want a waterproof LED tube and strip products as their product will put on outdoor places which may experience raining, and our products have waterproof rating IP67 which meets the International Protection Rating. Flexible sizes and shapes are also needed for real estate and interior designing company. As for beautification and residential use, different sizes and shapes are needed. Long life span and economics
And also, our products are reliable as they have a longer life span than the original compact fluorescent lamp long lifespan which can be used up to at least five years and which is 6 times longer life than compact fluorescent lamp and 10-15 times more than incandescent lamp. And due to our product has aluminum back covered which better heat dissipation and thus longer lifetime for the LED tube. Besides that, our LED tube saves up to 50% of the energy compared to CFLs.
And therefore, it is suitable for the use of public works which requires a long life span of lighting product to install in a building for a long period and hence it is money saving due to long life span of products. Safety For the segment of real estate and interior designing company, they require a safety LED tube for them to installing in their designed products and as their designed product are used in home or place will easy contain people so safety is the highest consideration of them.
As our product already have CE certificate which CE Marking on a product is a manufacturer’s declaration that the product complies with the essential requirements of the relevant European health, safety and environmental protection legislation; and UL certificates, all of them can prove that YJM can supply excellent quality and safety for our customer, Augmented product
And also, we have a test before shipping to our customer which all products must be pass 48 hours aging (continuing lighting) test in order to ensure our product are work before delivery to our customers. Moreover, we will provide a three years warranty for our customers so if there is any problem on lighting, we will repair it.
And our product is environmental friendly that there will not toxic materials release to environment after dispose as our product has already passed the RoHS standard which is often referred to as the lead-free directive, but it restricts the use of the following six substances: Lead (Pb), Mercury (Hg), Cadmium (Cd), Hexavalent chromium (Cr6+), Polybrominated biphenyls (PBB) and Polybrominated diphenyl ether (PBDE) so our product is under the Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment which indicate that our product do not contain hazardous materials like Mercury in CFL and hence it is contributing to dispose environmental friendly. And all these feature and service can gain our product value for our customers. 2. Pricing strategy Illuminated Sign manufacturer In our pricing strategy, we decide to use Penetration pricing for our pricing scheme.
It is because it can help us to win the market sharing since LED light is not a common product in Hong Kong. Most people are using normal light bulb because they are cheaper on initial price but not on electrical bill. Another choice is Fluorescent lamps, its initial price is much higher than light bulb, but more saving money on electrical bill. LED light, since it is not common, the initial price is higher than fluorescent lamp, but more saving on electrical bill. So we targeted several markets for increasing our market sharing. We would like to increase market on illuminated sign manufacturer for long-term business. Signage is a reliable product.
Customers like to use them to tell other people something at dark place and draw their attention by light for a period as long as possible. But all products have their own product life cycle. Usually they use fluorescent lamps for the light support on the signage. So we would like to promote the LED tube replaced with the fluorescent lamp for the light support. We will mark up the price a bit lower than the competitors to attract the signage manufacturer. Lower price is benefit for them, because they can earn more money when they keep their same price but the cost of light support is lower. We would like to keep the lower unit cost for earn more market share and Higher market share can reach the total cost. * Penetration pricing First lower initial price, this can first keep a good business relationship with the customer, we can earn benefit when they buy more. * Discount Pricing: * Under this policy, we will sign a contract maybe one year or more to our customer, and we will accord to the manufacturer sale status which how many order they will buy from us and we will modify discount rate to our customer with different sales number. As illuminated sign manufacturer will act as our long term customer who will keep ordering our product if they have business so the order is a derived demand from our customer. Public works Another market we would like to increase is Government. Since Government is a big customer and they have a lot utility need the light support.
In the Government Logistics Department (GLD), we can apply to become a GLD Supplier, who can bid the government major purchases (lighting system). GLD will depend the tenders of suppliers for the procurements. GLD will post their needs on the website and collect the tenders from the suppliers. By the way, GLD have a plan was called Green procurement. They are welcome the supplier which can help them to keep the green procurement policy since our LED tubes are reliable and more saving at electrical bill. We can provide a special discount since they have a great order. * Bidding * GLD bidding is a closed bidding. And also GLD also required signage product, therefore we can also supply to company who will get the contract from government.
It is because mostly the lower price tender will win the contract we can supply a lower cost LED tube for their light support installation which the contractor may gain more benefits on their job. Since the products are lower product life cycle. Government would accept the price is lower but the replacement of signage product will be short time (1 year). Therefore we can keep it as a long relationship with the contractor. Interior Design Companies Nowadays, LED tube is decoration is very common in foreign countries. LED Light are very entreating to the interior designer, architects and their customers cause placing light in one direction for LED light tube is better than the incandescent or fluorescent lamps.
The LED light is multi reflector light sources that can be used in different kinds of fixtures with a lush and stylish decoration create for the designer. The decorative LED tube is suitable for both indoor and outdoor application. The Features LED tube can also provide a heavenly twinkle. And the LED tube for decoration can be very colorful. LED light also creating electrical savings over even the most efficient traditional indoor light. The interior can use the LED in all area in the house, bed room, dining room, living room, even in bathroom. Bathroom LED light is one of the latest trends in interior design for today. These bathroom LED tube are used in different ways, for example: taps, shower heads, bathtubs and other plumping.
LED lamps can be placed every in all parts of the house. If the interior designer can help you to use the correct bathroom LED lighting, it can completely change the atmosphere in a particular room. The LED light is cool light so it is safe to touch so if you place it in your house, you won’t have to worry about getting burn by the led lighting bulbs. There are two main pricing strategies we are considering to use. * Skim Pricing * This pricing strategy tries to skim the cream off the top of the market by setting a high pricing in the beginning and target on the customers who are less pricing sensitive. Skimming is a strategy used to pursue the objective of profit margin maximization.
Skim Strategy should be used when * Inelastic demand which mean the target customers are not price highly price sensitive. * Hard to predict the cost savings that would be achieved at high volume. * The company does not have the resources to finance the large capital expenditures necessary for high volume production with low profit margins. * Penetration Pricing * This pricing strategy pursue the objective of quantity maximization by means of a low price in the beginning Penetration Pricing should be used when * Highly elastic demand which mean the target customers are price sensitive and the quantity demanded will increase significantly when the price is set in low. Large decrease in cost when the cumulative volumes increase. * There are some threats of impending competition. After discussion, we found that the Penetration pricing is more suitable for our products; it is because according to the reserve from the internet which showed that the LED for interior design in HK seems like it is a new market. So we think we should set a lower price in the beginning to capture the Interior design Company’s attention and established our brand in this new marketplace and increase the marketing share of JYM light Co. Ltd. Then it could be easier to raise our prices slowly over time in order to gain back the profits we might have lost in the initial product launch.
And the interior design companies should be price sensitive, if our LED tube is low price, for their own benefit, they may suggest the customer to use our LED tube for the whole building, and then we can develop a long term relationship between us. If the customer orders a large quantity of the product from JYM light CO. Ltd, we can give them a quantity discount to reward our customers’ loyalty. This is kind of Discount Pricing Strategy which can help to sell low priced products in high quantities. We can also cumulative the discount for the long term customers, such as discounts given to customers who place multiple small orders or loyalty cards that give a free item after a certain number are purchased. 3. Promotion strategy Exhibition promotion:
The HKTDC Hong Kong Electronics Fair will hold in every years, this fair is a very useful part of the marketing strategy for our products. First, there are many companies from different countries, we can present or even outstanding our new products and also keep an eye on what is happening in the market. Moreover, there is an opportunity for us to look for new buyers from everywhere and meet with our existing buyers to help than ever before, especially the buyers from illuminated sign manufacturer and real estate and interior designing company. In addition, we may have speeches during the exhibition to promote our products. Web site promotion:
In the recent years, internet becomes one of the main promotion ways. Especially the promotion for some real estate and real estate and real estate and real estate and interior designing company, using the web site is a good way to promote our product. Web site promotion is an activity directed to improve appearance of our web site in search engines by thematic requests of users and as a consequence to increase the amount of attendance number of the website from search engines. Therefore, we can be a much more well-known company. Personal selling: Personal selling is the process of communicating with a potential buyer face-to-face with the purpose of selling a product or service.
It allows us to target the message specifically to the audience and receive immediate feedback. In this way, it is more precise than other forms of promotion and often has a greater persuasive impact. For the public works companies, especially the companies which renovate the buildings of the government. It is important to have a personal selling for the public works companies as they are the biggest market in these types of company. On the other hand, we may offer some sponsorship to these companies in order to promote our products in the public. 4. Distribution strategy In our products require a much different channel than a standardized product.
Direct, manufacturer representatives, and distributors sell through the various distribution channels. That can increases sales, improves sales coverage, reduces selling cost and directs marketing strategy. The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all outlets); Selective (with carefully chosen distributors); or Exclusive (with distribution restricted to up market outlet). The next strategic decision clarifies the number of levels within a channel such as agents, distributors, wholesalers, retailers. Next comes a sensitive strategic decision whether to go single channel or multi-channel. use many different routes, direct and indirect.
Then comes the next level of strategic decisions concerning strategic relationships and partnerships. Two common strategies are Vertical Marketing Systems and Horizontal Marketing Systems. Vertical Marketing Systems involve suppliers and intermediaries working closely together instead of against each other. We plan production and delivery schedules, quality levels, promotions and sometimes prices. Resources, like information, equipment and expertise, are shared. Horizontal Marketing Systems occur where organizations operating on the same channel level co-operate. We then share their distribution expertise and distribution channels. This can speed up the time taken to penetrate the market. VII. Budgets
Marketing Budget| Q1| Q2| Q3| Q4| Exhibition| $ 100,000. 0| $ -| $ 100,000. 0| $ -| Catalogs| $ 3,000. 0| $ 6,000. 0| $ 3,000. 0| $ 6,000. 0| Websites| $ 5,000. 0| $ 5,000. 0| $ 5,000. 0| $ 5,000. 0| Training| $ -| $ 4,000. 0| $ -| $ 4,000. 0| Total Expenditure by Quarter| $ 108,000. 0| $ 15,000. 0| $ 108,000. 0| $ 15,000. 0| Total Marketing Spent| $ 246,000. 0| Total Company Sales| $1,000,000. 0| Marketing as a Percentage of Sales| 2. 46%| *All in US dollar Remarks Q 1: | 1st quarter of a year (Jan – Mar)| Q 2:| 2nd quarter of a year (Apr – Jun)| Q 3: | 3rd quarter of a year (Jul – Sep)| Q 4:| 4th quarter of a year (Oct – Dec)|
Exhibition: | The cost for conducting or organizing any promotional campaign or activity in any media| Catalogs:| The cost for printing all catalogs, promoting materials or any advertising materials| Websites:| The operating and maintenance cost for our company website| Training:| The cost for internal training of our staff for sales technique or updating their knowledge of our products| VIII. Controls If one of our long term business customers who seemed happy but suddenly stopped doing business with us, obviously something displeased them. It may be our customer service, out product quality or our staff’s attitude, perhaps. A majority of unsatisfied customers never complain. Due to it takes effort on the part of the customer to draft a letter of complaint or to phone in to voice displeasure.
The easiest and most effortless way is to move on and never do business with us again. So we need to know our customers are happy or not when having business with us. And that information is important for us to mark improvement. The one easy way to do it is by seeking customer feedback. Even customers who are reluctant to make complaints will fill in forms anonymously. Send out a feedback survey asking customers, whatever long-term business customers or new customers, questions that could reflect both positively and negatively. We should always include an open-ended question at the end, asking them if they have any additional comments or suggestions to make. This will give them a chance to voice any ispleasure or come forward with truly constructive suggestions that could help our business. Once we have asked these questions and received the answers, we need to take action. Use the feedback forms to improve our business. The customers are the only reason why we are still in business, so satisfying them will ultimately make our business more profitable. Moreover, the most important is sent a response to every person who has given us feedback, acknowledging their views. It would show them that we are caring about their feedback and their feedback is important to us for improvement. If we are able to take action based on customer feedback, let the concerned people know about it.
The worst thing to do is to ask for feedback and let it go at that. We need to sure that the customer won’t waste his or her time on giving feedback to us. 1) How would you rate the reliability of our LED light? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor 2) Was our LED light delivered on time? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor 3) The price of our LED light sound reasonable? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor 4) How would you rate us against the product quality of our competitors? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor 5) Are you satisfied with the LED light you have purchased from us? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor ) Adequacies after-sales support from us? a) Excellentb) Goodc) Satisfactoryd) Averagee) Poor 7) Would you consider purchasing LED light from us again? a) Yesb) No If not, please tells us why: 8) Please gives us your suggestions on how we can improve our services: Sample of feedback survey is shown as below: IX. Executive Summary LED light tubes are getting popular day by day as an energy efficient and longer lifespan replacement of CFLs. YJM Light Co. Ltd is one such company which produces various LED light products to meet its consumers’ demands worldwide. As there are some other LED light manufacturing companies and other indirect competitors, YJM Light Co. Ltd. as the following strengths over them: 1) Short delivery time managed by horizontal and vertical marketing systems. 2) Product variety 3) Strong research and development team 4) Quality Control, etc. As for LED light tubes, three target market groups have been identified as potential customers: 1) Illuminated sign manufacturers 2) Public Works 3) Real estate and interior designing companies. As for these different target markets, this product has been positioned differently and different product strategies and pricing strategies have been formulated. Flexible size and shape, variety of the product, waterproof light, and safety have been emphasized.
As for pricing, penetration pricing will be used to enter the market for Illuminated sign manufacturer, real estate and interior designing and public works by private companies appointed by the government. Bidding will used to enter the public works by government. Discount pricing will be applicable for real estate and interior designing companies. Promotion through exhibitions, websites and personal selling will be prioritized to introduce our product to the targeted markets. Vertical and horizontal marketing both will be introduced to facilitate quick and more distribution. Budget for the different sectors of marketing such as exhibition, websites, catalogues, and training have been calculated. It is assumed that, total expenditure for these purposes will be 246,000 $ annually which is about 2. 46% of the sales.
After the plan is implemented, feedback will be requested from the customers and some surveys will be done on the competitors to evaluate our position and then change accordingly. X. References http://www. ledinside. com/node/8863 http://www. c40cities. org/docs/casestudies/waste/Hong%20Kong%20LED. pdf http://www. lighting. co. uk/news/birmingham-lights-streets-with-low-energy-led/8605986. article http://www. lighting. co. uk/news/first-highway-to-be-entirely-lit-by-led/860891 1. article http://kento. en. alibaba. com/ http://www. ligitek. com/index. php? g=bWRwR2V0JTVCTGFuZyU1RCUzRDE%3D http://www. effled. com/ http://www. synergy-light. com/media. php http://www. namkwong. com. hk/ch/ http://www. solidstatelightingdesign. com/documents/articles/gsedoc/120366. html