1.0 background/introduction
Introducing a new product to the market involves various strategic techniques especially
when there is an already existing competitor. .strategies involve aggressive marketing in all
advertisement platforms. The current global market structure is too competitive and
requires a lot of strategic planning to make sales. This needs the development of a new
technological solution with a more appropriate code architecture to improve the efficiency
of the company's marketing strategy.
2.0 Business Objective
Promotion targets are quantifiable outcomes of a promotional campaign. The primary
objective is to direct marketing initiatives toward predetermined milestones. Generally,
objectives are defined, measurable, achievable, and time-bound. For this manufacturing
unit, the primary aims are to increase market share, efficiency, profitability, and expansion
inside and beyond Canada. This is accomplished through the use of aggressive marketing
campaigns. The new phone is highly inventive and 20% less expensive than the
competition. This competitive edge enables the business to accomplish its objectives. The
company's primary ambition is to sell ten million phones in Canada and the United States.
As a result, the promotional campaign team is entrusted with developing a creative market
campaign that emphasizes the demands of young people and the phone's usefulness.
3.0 Current Situation and Problem/Opportunity Statement
The manufacturing company is introducing a new phone to the market whereby it already
has a competitor. The new phone is innovative and cheaper than the one currently selling in
the market by 20%. The phone has an android operating system and touch screen and the
company is aware that Samsung has already introduced a similar phone with the same
features but selling more expensively than the company. This case put the company to a
threat of underperformance in case it doesn’t undertake marketing campaign strategies to
outdo its competitor.
4.0 Constraints and Substantive Assumptions
Outsourcing financial or accounting professionals to work on the technical team, even if
only for a little period, is the optimal way to do this. He or she may assist in establishing
the most effective economic justification tools, determining the firm's proper degree of cost
categories, threat, and the ratio of yield, and creating strong financial reasons to upsurge
the possibility of funding the marketing campaign project. Senior management must
understand how investing in marketing can help the company achieve its financial
objectives, regardless of the way compelling functioning benefits of the structure are
marketed.
5.0 Evaluation and Recommendation of Alternatives
The company is encouraged to create an order distribution of 10,000,000 phones for its
operations by researching and comprehending its order profiles over a specified period.
There should be a consideration on how to handle each order type across Canada and USA.
The firm is encouraged to focus on the usability of the phone on young people while
campaigning because it is the most efficient and cost-effective method of introducing a
new product into the market. Introduction of website platforms to undertake online
marketing campaign stands for the course of plotting out the preference tour's travel
strategy to cut unnecessary movement as well as travel
6.0 Preliminary Project Requirements
The following are the major needs for the project:
1. The highest priority is modernizing the marketing team to improve product focus and
negotiating deals, particularly in international negotiations, which are critical to the
business today, and introducing a new product to the market
2. Marketing campaign team need to be taken through a thorough marketing training
courses which will incur the company a cost for training courses. The project team will
investigate options for this training including in-house courses, courses offered by local
study centers, and computer-based training.
3. Creation and application of the most efficient method of working on a modern
marketing campaign strategy which involves outsourcing expertise in the field of
marketing
7.0 Analysis of Financial Statements and Budget Estimation
This study compares several NPV computations using various annual cash flow
assumptions and required rates of return. For instance, at a 10% rate of return, the NPV of
annual 5-year liquidity of $0.80 is practically zero, however, at a 6% dividend yield, the
NPV is $0.37. The fluctuating net present values illustrate the susceptibility of the project
to cash flows and interest rates. To maintain the project’s required return on capital of 8%,
annual projected cash streams must be at a minimum of $0.75. Here is a 25% edge of
safety in the anticipated cash advantages ($1.00 – $0.75). The initial financial outlay
cannot exceed $3.99. The estimated initial investment has a safety factor of 24.8 percent
($3.99 – $3.00).
8.0 Timeline Estimates
The manufacturing company wants the completion of the full project in six months for the
new mobile phone to be released to the Canadian market. The project will be launched as
soon as the organization and the preferred campaign team are funded and trained. The
marketing campaign project’s influence on productivity will be reevaluated one year after
implementation and then on an annual basis thereafter.
9.0risk consideration
This attempt entails a lot of risks. Sensitivity analysis is used to determine the degree of
risk involved with the adoption of a clever marketing campaign that focuses on young
people’s needs and the usability of the phone. Though the company is aware of Samsung
Company offering the same phone, it doesn’t emphasize product features nor its price
posing a major threat to the new product yet to be released to the market. Significant
business risk is committing time and resources to a project without achieving the expected
results
10.0 Exhibits: exhibit one
Project completion: one year
Discount rate: 8%
Period( year) Cash
stream
Discounted
factor
P.V factor P.V Cumulative PV
( 3.00) 1.0 (3. 00) (3. 00)
1 1.00 0.93 (1+0.08) 0.93 (2.07)
2 1.00 0.86 (1+0.08) 20.86 (1.22)
3 1.00 0.79 (1+0.08) 30.79 (0.42)
4 1.00 0.74 (1+0.08) 40.74 0.31
5 1.00 0.68 (1+0.08) 50.68 0.99
Payback period: 4.7 years
Internal rate of return: 20%
Net initial investment: 3.00
Salvage value: 0