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Market plan for Huawei digital watches
Situation analysis
The core business in the market plan is to target the industrial timing and the use of consumer clocks in trying to make sure that high-quality material is produced and that there is an improvement in the watch industry. The plan is based on the production of high-quality Huawei watches that are very innovative. The watch will be offered to a variety of people that include the women men and the youth. Our previous year's profit of 4 million represents about 20% of our total sales that were made. The growth rate so far has been slow compared to the previous years. Thus, this will be an added advantage. This company aims to make sure that the growth rate in the market is increased and that quality products are produced.
It is essential to make sure that the business does not venture into risky intakes and that the company has more advantages in the process of being in the market. The companies always gain a competitive advantage in the exchange such that it can make as many sells as possible. The weaknesses of selling Huawei watches include a high cost for importing the raw materials and competition from different markets and the use of similar fake products that are produced by other manufacturers. (Johnston, 2016) Many customers usually try their level best in trying to make sure that they always get quality products from the company. Analyzing products before buying the item is very important. Their quality is satisfactory to the customers that are being targeted.
Most importantly, it is better to use the product that will easily be available in the market. In my case, these electronic gadgets usually are fast-moving products in the market compared to other Huawei products. The challenges of reducing the prices since most suppliers have other substitute products must also be taken into note. Some companies produce fake products and reduce their expenses; thus, this is a big challenge to the industry.
Value proposition
Value proposition refers to the promise that a company promises to deliver, and that is used to determine whether the customer will be making sales from the company. In the company, digital watches, the main target is to make sure that the digital watches spread all over the country and they are widely known that they exist in markets since they are a new product. There are five categories of a value proposition. They are more for more where the clients pay more for the goods and services provide and are, in turn, given more goods and services. Secondly is the use of more money for the same quantity of products. Under this policy, the customer would receive the same products and pay for more. Thirdly, the use of more goods for fewer amounts makes sure that the customer is provided with the same products at a less value of money. Many customers usually like this kind of policy.
For the Huawei product, I prefer the use of less policy. Under this, the company offers few products for the less amount of money that the person has. In the case of Huawei watches,' it is essential that the business uses this policy so that it gains more customers then afterward, it might change the system. The profits will be obtained through the selling of the products at a low price since many of the products will be selling. Most importantly, it makes sure that the goods are all sold, and through the use of offers, the customer gains more rights, and the supplier can make more sales of the same.
Market analysis
The company will have to compete directly with many other fashion watch companies. The market size of this branded watch is expected to have grown since the year 2002 to the year 2018. The market size in 2002 was 24 million and has grown to 34 million in the year 2018. The annual growth after incorporation of the company is expected to grow by 5% annually compared to the previous years, where it was declining.
The following table shows an analysis of how watches were sold in the previous years.
| Age | Percentage of watch buyers | A portion of the total population |
| 18-24 | 20 | 13 |
| 24-34 | 30 | 21 |
| 34-55 | 40 | 34 |
| 55+ | 10 | 18 |
From the above table, it is essential to note that the highest percentage of those who buy more watches are from the age of 34-35. From my market plan, I expect the consumer levels top change in the coming years. I hope to involve young females as part of the market. I will produce quality watches that will be of gain to them.
In the market plan, the consumers are to be reached through 3 outlets. In my current market plan, I expect us to be using five outlets throughout the county per town, as this will make the business expand more. Other than that, a large population will have been reached through this. By using this number of channels, the percentage of sales is expected to grow by 5% yearly. The majority of deals are currently made at retail shops. To earn more sales, then that means the company has to make an active distribution channel that will help in supplying the goods on time. Offering discounts will also be another way of attracting a large market. (Kyrillidou, 2018)
Competitive analysis
Although there are 20 competitors in the market, there are a few substantial concentrations in the same market. These 14 competitors hold almost 60% of the total market, as many customers are used to buying their products. Other than that, they also have a strong manufacturing and distribution skills. Other companies have a less distribution channel and a big fashion name, for example, Samsung that has been well advertised. The brand name gives the companies more customers as they perceive it as the best. Two of these companies are very good at lower price lines. They are Nokia and Infinix.The digital watch is an entirely new product that is expected to get into the market as soon as possible and will integrate well into the market.
Company analysis
Currently, the current distributes through different channels account for over 70% of the total sales that will be produced. The branded watches are a fast-moving product since they are a new product in the market. The company currently has high innovative skills, design skills, strong manufacturing skills, and a stable distribution channel that enhances the transport of goods from one place to another in a good time. Using the SWOT analysis, the strength of the company is; they use their highly innovative skills in the production of quality products in the industry. Secondly, they have a reliable distribution channel compared to other companies. The weaknesses of the company include; the company has no experience totally in the distribution of jewelry stores and do not know how they operate. Secondly, they have no experience in marketing fashion products. The opportunities they have included; a large market, the market growing faster, and consumers' demand for the product is increasing. Lastly, the threats that are involved include; firstly, healthy competition from other companies and secondly, the possibility of the entry of a new market product or a substitute product. (Monice, 2016)
Objectives
In the first three years, I expect that the company would have made a high profit of up to 20% increase per annum. This will be a significant improvement which will enhance the opening of more outlets in the county. Other than that, I expect that the market would expand in the next three years such that the company will be able to sell goods to more than one country. I hope the business to get to an international level af6ter these years. The market is also expected to get many more partners and shareholders that will increase capital in the company. The project is expected to run smoothly without any interference and have the best management of other workers.
Action plan
Product
Products refer to anything that a customer needs and uses it to satisfaction. When a buyer goes into the market to buy a particular item to be used, then this item is referred to as a product. In my business plan, my product is the Huawei digital watch. There are various levels of products that help in making objectives for the market plan. They are core customer value, actual product, and the augmented product. The core customer value makes sure that the products are in the right order of their wants. Like, in this case, I plan to make sure that I use the right products in the market for my customers.
Secondly, the actual product is where the customer pays for the goods that he/she needed, and that has satisfied the want of the customer. Lastly, augmented products refer to the customer who wants a reduction in price and that are bought after the price has reduced. In my market plan, I plan on using a discount of 5% on the retail watches to make sure that the products are sold. Other than that, the use of the actual product will satisfy the want of customers. This product is that of high quality and has many features that will automatically attract the customer's interest. Being a new product with digital features such as able to make phone calls, then it will be beneficial and demanding in the market.
In the first year, the company will introduce about 4-10 brands of the new fashion watch. An eighth of these watches will have the standard metal casing that will be similar to the old fashioned watches. This will target about 25% of the population that will be using the products. The others will have plastic casings. Besides, the product will have designs that have unusual shapes that will target the youth since they love fancy objects. The forms include hexagon, diamond, and triangular shape. The product will have a unique name called Huawei digital watches.
Price
There are two concepts of principals' that are used in the definition of worth. Firstly, cost refers to the amount of money charged to customers. Secondly, pricing is the amount of money that a buyer willingly uses in buying a product from the seller. There are three elements of prices that are considered. Firstly, the price ceiling where the goods are of high costs and the seller perceives them to be of a high price. In my market plan, I will not use this type of principle since it will deter many customers from buying the product with the belief that they are expensive.
Secondly is the price floor, which means that all goods are priced so that they can raise profits. This is a much better policy as the main aim of the business is to make profits and make sure quality products are provided. Lastly, are the other external factors that make control prices like the government policy and the tax imposed on the product? The Huawei products are typically made within the country; thus, the company will not be subjected to paying more burden on the imports. The only tax that will be given to the government is the value-added tax on the product. While making marketing objectives, one must look at the pricing and its elements before coming up with the final price.
Three pricing options are used. In my case, I will use the cost-based pricing strategy where the company branded the products and used them well, such that it's the company now detects price. This is the policy that will be used in my market plan since the product is new in the market. After gaining a competitive advantage in the market, then I will be able to set my price according to the capital incurred and the customer's interest. The pride watches will sell their observations at a retail price of 30$. This will be a reasonable price as it considering it was new in the market. Other than that, the price goes slightly lower than other companies; thus, it helps in gaining more customers to buy the watches. A discount of 5% is also allowed on the retail price to attract more customers.
Distribution
We will introduce pride watches too many countries within the country. This will be essential such that every town has at least one outlet that will be providing the observations. We will take advantage of the secure distribution channel to make sure that these goods reach a vast number of consumers. We will make sure that the product reaches the whole country in good time such that there is no scarcity. In my market plan, I must have to have a robust supply chain that will help in the transport of goods. The distribution chain of Huawei Company is one of the most stable and admirable supply chains among so many companies. A good market plan must carter for how all the goods will be transported from one supplier into the market.
Three marketing strategies can be used in our marketing plan. Firstly, the direct channel strategy. This refers to where the consumer purchases goods directly from the company. Secondly, indirect channel referrers to when the company uses another market channel in making sure products reach the consumers and, lastly, a hybrid strategy where companies use both direct and indirect approaches in their operations. (Armstrong et al., 2018) In this case, the hybrid strategy is the best as it combines both of them. By doing this, I will be able to sell to whole sellers and retailers. In the placement of orders, the best channel is ones that do not make customers wait for so long in the market for goods. Moreover, Huawei watches need to be sold at all stages, which is the retailers and the wholesalers; thus, it is essential to make sure that the business the supply chain is reliable and stable. The hybrid strategy will make the goods reach all types of markets from the retail shops to the wholesalers. Other than that, many factors are considered to be used in the market supply chain. Most importantly are the natural calamities that may occur and use the government policies that determine the transporting policies
Promotion
Five new sales representatives will be added to every outlet such that they will make sure that the goods are well advertised and used. It is of much importance to consider that a sales trainer will also be needed in the company to train the sales representatives. (Yvonne, 2017) Advertisement will be made more aggressively since many of the consumers do not know the brand of the watch that has been introduced. The cost of advertising the product will be set at 100$ and that will not be that expensive and will make the product more popular in the market.
Under the promotion, there are different ways in which goods can be promoted. In promoting the Huawei digital watch, will use various forms of advertising. Firstly I will advertise the product. Under this, I will make sure that I use a specific logo that will be kept such that it is the one that then customers recognize. The Huawei Company has a particular logo that many customers use and is unique in the market. The logo is identified with the name Huawei. This logo will also prevent other fake companies from producing counterfeit goods and branding them under that name since many customers usually look for the logo. Customers will recognize them easily. Secondly, the use of incentives where customers use the products for a short time and end up buying the product if it's in good condition. (Armstrong et al., 2018).
When customers get to experience the Huawei digital watch, they will automatically buy it as the product is of good class and very different from other watches. Thirdly is using public relations. This refers to the product being given to the customers through many companies interacting with the customers. It is equally vital that most of the goods being advertised are delivered to customers for free as samples so that they may experience their services and in the end able to buy the products. Besides those, the use of digital marketing is also available. In this case, my company will use computers and digital phones to makes sure that the goods are advertised through various online platforms. The person may decide to use social media to get a wide range of customers. The customers that are available through social media can make their orders online and the goods supplied to them in the various places that they will be.
Financial analysis and the expected results
In the first year, we hope that the company would have made a market share of 3% by making a total of 50million dollars in the first year. In this same year for everything to go as planned, then there should be no watch technology breakthrough this year. Completion is expected as other companies also produce similar watches. We expect our company to be highly competitive. (Parker,2017) The company will invest almost 500 million dollars in digital watches. During the next five years, we expect that this capital would have generated as many profits as possible. The company must make sure that it achieves a competitive advantage over other digital watch companies.
Contingency plan
It is expected that the introduction of the ride watches will lead to high competition in the market. Other than that, the increased advertising will make the company integrate well into the market. An increase in advertising is expected to bring about 10 million dollars in terms of sales. Advertising makes the goods accessible, and through the use of discounts, I will be able to get more customers to buy the products. (Nancy, 2016). The main plan to make more sales is just by increasing the rate of advertising the product and the use of sales representatives in every outlet. (Persis, 2018).
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