Free Business Plan About LP-Smart TV: Marketing Plan
This comprehensive marketing proposal is regarding the unique product name Lucky Person (LP) Smart TV. It will analyze the Smart TV market in depth and provide the reader with a more lucid understanding about our product.
Similar to a smart phone, a smart TV provides a variety of "Internet-connected services" that usual TVs cannot provide. It has the equal of a processor constructed into it, offering a superior amount of amenities. Smart TV normally denotes to facility ideas connecting the broadcast of video content to a TV set through Internet. Smart TV offers comprehensive home entertaining to the customer. It has all that we envision on TV. It can be referred to as an extensive or the advanced form of the smart phone. The application that were formerly established for smart phones, now are also available in smart TV type. Android which is a giant performer in the smart phone business now receiving a decent experience to the smart TV market, the only change we can observe is, smart phone is to be use by an single person while on the other hand a smart TV can be a source of entertainment for a huge spectators say family. Smart TV has a massive worthy market. There is numerous number of companies or module which accumulating worth to the smart TV business. Each module has its individual worth and how it provides to the worth to the value chain. Significant mechanisms of value chain are gratified inventors, aggregators, suppliers, integrators, and consumers. “The whole smart TV market was valued at $86 billion in 2010 and is anticipated to amount $265 billion by the end of 2016 with a CAGR of 17%. In relations of unit delivery, smart TV was priced at 43.6 million units in 2010 and is projected to mount 64 million by the end of 2011 with a yearly development of 47%. By 2016, smart TV unit delivery is anticipated to touch 153.2 million units with a CAGR of 19%” (Rohan).
Keeping in mind the gigantic market of the Smart TV, we have decided to tap the market segment that the existing manufacturers are ignoring. The current target market of Smart TV is the high-income earner of the society as it is expensive and can’t be afforded by all. Hence, we have decided to unfold the new market segment by providing the same facility but to a larger customer base with all sorts of income levels. LP is the name of our smart TV. LP, which means Lucky Person and the idea behind the invention of this TV, is to make it easier for customers from all sorts of income level to have a restful life by making it affordable for them to purchase new technology. It would be much easier to purchase our TV because it depends on a certain common factors such as individual purchasing power, individual taste as well as the target market. However, individual taste will be the principal factor to determine if the person will be willing to buying the product or not. The second important factor is target market because currently Samsung smart TVs are so expensive and that hardly common people have the affordability to it buy it. Here comes the idea of building a better TV with lower price but offer not only the same experience like Samsung smart TVs but also many more new features. Our LP has various new features that will make it unique as compared to the other existing brands in the market. In the following business plan we will discuss the market for our product in comprehensive depth.
The television industry appears to have dropped into a descending hill during the pervious few years. “Studies have shown that the incomes have tumbled to 49%; though, it’s surprising to note that the size of the sales have essentially enlarged” (Televisions). This is a result of the overproduction, which has led to an excessive increase in the supply of the TV in the market forcing the price down. The reduction in the prices has provided the consumers with an incentive to purchase more. “However incomes are estimated to remain in a declining trend for sometime, awareness in TVs with latest and additional abundant features such a Smart TVs are anticipated to generate an improvement in the incomes as well as the sales of TVs between 2015 and 2017” (Televisions).
Presently, LG, and Samsung are the lead sellers of TVs in the market, comprising of 44% of the television market collectively (Televisions). They both are also deliberated to be technology frontrunners as they launched Smart TV together in 2012. Latest TV consumptions are intentional for 50% of homes with children. “Whereas married with kids families devote the maximum dollar amount per TV, single with kids families include the greatest quantity of personal TVs. Males are more probable to buying a TV as compared to a females, and customers between the ages of 25-44 display the maximum concentration in having the custody of the modern technology in the market. ” (Televisions).
Research has shown that Smart TVs have converted to an in demand product as it signify fascinating invention and highest quality of apparatus amongst TVs in the market. “Generally, numerous customers are presently appearing to be content with the old 2D TVs, which they own, despite the fact that the TV industry is offering them modern technology” (Televisions). Though, an increasing requirement for multitasking amongst idealistic has started altering this old notion. “Arriving in the TV market, producers should deliberate on the both factors; restructuring the manufacturing of Smart TVs as to offer them at lesser prices rather than just targeting on the high-income earners in the markets”(Televisions). This is where LP steps in the TV market.
The comprehensive product analysis will highlight the USP (unique selling propositions) making the product more attractive and competitive in the market. It will also fulfill the common recognized and appreciated capability to connect to the Internet and mobile devices. Captivatingly sufficient, many diverse electric products are intriguing benefit of the developments in technology by producing Smart TVs as to meet the requirement of the latest market demand. LP smart TV will allow a person to control TV using hands or voice commands. It will also offer the consumers a wide variety of more other features such as Streaming content, Games, Apps, social Multimedia, internet and TV along with a smooth Hub navigation screen and fast browsing speed across the internet. This new TV will cater to the entertainment needs of every member of the household from an infant to a teenager to the most elderly. This new TV is the center of all things entertaining for the family. It will also provide a quick and convenient social network connecting one to friends and family just by few hand moves or voice commands.
After a comprehensive market research, we came to the conclusion that there are the following five market leaders currently operating in the TV Samsung, LG, Panasonic, Toshiba, and Apple TV. We will analyze the unique features of each of out competitors in which they excel and provide LP the biggest challenge in mastering that particular feature.
Samsung Smart TV is one the market leaders. It not only emphasis on the application feature of its product but also puts a great stress on the networking aspect of the Smart TV. “Specific unique aspects of this TV comprise of four HDMI ports, Clear Voice II, and a dual core processor” (6 Best). It provides the user with maximum quality of product.
Panasonic Smart TV is a challenger to LP smart TV since of its massive application store, and it being a consumer friendly. “Panasonic offers a diversity of plasma and LED TVs to their customers, and they all comprise of shortcuts on the remote enabling it to be user friendly ” (6 Best). Hence, LP needs to develop such a product that beats this friendly user interface and provides more convenience to the users.
Toshiba leads the market in the social TV that is finest products for households that are looking to have a manifold user accounts for their diverse usages of the TV. “When households have diverse priorities and are using their TV for various purposes have this facility of individual logins available to them.” (6 Best).
LG TV is also amongst the pioneers in the Smart TV introduction. It provides its customers with a massive quantity of competences and it’s the prior choice of many male customers.. Out of the respondents surveyed,
Lastly Apple TV is also a contender of the smart TV market. Despite the fact that it is not “a real TV, it provides the users with the characteristics of smart TV enabling them to be capable to purchase their personal receiver” (6 Best).
This comprehensive competitors market analysis will be used in the development of the LP in such a product that combines all these features offered by each of the competitors into one great product.
• LP will be providing it customer the existing as well as much more unique features. It will be exploiting new technological aspects that have yet to be introduced in the TV market.
• LP will be providing a high quality product that too at the most affordable prices. It will be targeting customers from all the income levels in the economy, which have been ignored up till now by the existing smart TV producers.
• It will also offer the user an ability to connect to all the smart devices available in the market of any brand.
• LP is a new name is the market and needs to compete hard with existing renowned brands. It will be extremely difficult to penetrate into the market as people are already familiar with the big existing names.
• “The Smart TV is fortified with internet connection and a webcam be a source security threat to its users as hackers can take over the products through hacking” (Gayle).
• The Smart TV’s demand in the market is increasing tremendously. It is proving to be a more and more profitable market with great chances of success.
• With consistent new technology being introduced in the market, LP can continuously update its product.
• The existing competitors if lowers the price of their product it will be biggest threat to LP as its major target market will swap to the market leaders. This is the competitive edge is providing Smart TV at lower prices that can be threatened by its competitors.
• Its competitors can also introduce the unique features that LP offers before our product is launched into the market. If the customers were already getting the similar features from the well-known brands they would be hard to convince to buy LP.
There will be two major target markets that LP smart TV will be focused to capture. After careful market analyses and the numerous surveys we carried out we have concluded the following:
The main target market for LP Smart TV will focus on the primary target men between the ages of 24-33, who has a income of roughly about $50,000 annually. These kinds of the individuals are actively looking to find cheap forms of modern technology in the market. Thy want to update themselves with the latest products in the market however, their affordability limits to what they can afford.
LP smart TV’s second target market will comprise of middle-income earners men in the “married with kids” unit. These individuals have limited affordability as they have many responsibilities on them with a limited income. They cant provide every member of the family with their personal entertainment units. Hence cheaper Smart TV will be a viable solution to their problems.
Use of online Tools and Technologies
We will employ various online electronic mediums for various purposes during different stages of product development. It is the fastest and the cheapest forum of medium available that captures the widest consumer market out there on an international level. It will be the principal form of product promotion. Online electronic medium such as Facebook and Twitter will be used for the promotion of the product. Pages and Hash tags will be used and promoted on a vast bases to create more awareness amongst the general public reading the special features and the availability of the LP Smart TV. Moreover special customized website for LP Smart TV will be launched which will provide a forum for all sorts of customers to leave their complains and feedback. Special promotional schemes will also be advertised on this website.
Customer Relationship Management Strategy
The company will be actively working to develop an efficient Customer Relationship Management Strategy. Customer satisfaction will be the priority of LP Smart TV management. We will ensure that the availability of LP Smart TV is easy and convenient for the customers. Moreover, the company will be looking forward to cater the affordability of as many customers as it can from various income levels. Highest quality of after sale service and maximum guarantee period will be provided to retain maximum number of the customers. Regular customers feedback and suggestion will be taken into serious consideration for the improvement of the product and the related services.
Marketing Mix- 4P’s
The pricing is the major attraction for LP Smart TV in the market. We will be offering much lower prices as compared to our competitors in the market. We will be focused to minimize the cost of production and maximize the output so that we can keep the prices under control. To conclude, we will be emphasizing on using competitive pricing as to penetrate in the market and capture the target market that has been ignored by the existing producers.
We are aiming to provide the LP smart TV through the usage of three channels of distribution. It will be easily available throughout the world to any consumer who wants to purchase it. We will be using the following three channels of distribution.
Sales and service dealers: The sales and service traders will be responsible for the main distribution for LP smart TV and will be convoluted in commercial sales. These traders may also open special LP smart TV outlets.
Modern retail: The Modern retail section comprises great stores like Croma , Hypercity and many others who are operating in the contemporary electronic retail chain. Contracts for the distribution of LP smart TV with be struck with these retailers.
Distributors: there will also be local distributors for LP smart TV that will be responsible for providing a continuous supply of LP smart TV to the small retailers throughout the country.
There will be various sorts of promotional strategies used by our company to advertise the product through out the world. The foremost forum will be the use of the social media. Facebook, Twitter and other famous social media will be used for the promotion of our product. Pages will be made and hash tags will be also be advertised. People will be encouraged to like and promote both in return of gifts and other discount offers on our products. We will also be depending on the word of mouth promotion. Moreover, hoarding and billboards will be used to make the product visible amongst the public on the busier locations. Other media forums like, TV and newspaper will also be deployed for the publicizing of our products. Banners in the biggest malls and pamphlets will be distributed amongst the public.
Our product will be combining the best features of all the existing Smart TVs in the market. It will be providing the consumers will even more comprehensive features like physical simulation and more enhanced social connectivity with their peers. We will be offering better after sale services and longer warranty periods as compared to our competitors.
6 Best Smart TV Platforms In the World Today.” Tech Radar. N.p, 24 Dec. 2012. Web. 3 Apr. 2013.
Gayle, Damien. “Is Your TV Watching You?” Daily Mail Online. N.p, 17 Dec. 2012. Web. 3 Apr. 2013.
McCall, Liz. "WRITING: Samsung Smart TV Marketing Plan." Behance. The University of Texas at Austin's, n.d. Web. 12 Jan. 2015.
Rohan. "Global Smart TV Market." MarketsandMarkets. N.p., n.d. Web.
“Televisions -- US -- September 2012.” Mintel. Mintel International Group Ltd, Sep. 2012. Web. 3 Apr. 2013.