The ClixStar DI100, is a slim, touch screen, prosumer camera complete with an array of features including; built in editing software, face recognition technology, access to the internet, and social networking capabilities. The target market for this camera is estimated at 75 million consumers consisting of males and females, between the ages of 15-35, who have a median household income of $40,000. Since ClixStar Inc. is the first multimedia digital camera on the market to incorporate the internet and social networking capabilities, the innovativeness of its features is a great strength.
Furthermore, the professional features of the camera combined with its consumer level usability and its ability to have features added to it easily are also valued strengths of the product. Nonetheless, there are also inherent weaknesses of the product, which include lack of brand awareness, the product’s heavy dependence on the internet, and security concerns. In spite of the inherent weaknesses, however, the company sees excellent growth opportunities for the ClixStar DI100 in the current budding market for multimedia and multifunction devices.
Currently the recent trends in the market show a positive shift in attitude of consumers towards online shopping, individuals’ current need for esteem, and the lowering technology costs involved in producing the product. ClixStar, Inc. will thus look to tap into these opportunities, while simultaneously paying close attention to its external threats, which include; new competitors, intense price wars, consumer lifestyle changes, competitors’ greater access to channels of distribution, economic slowdown, new government regulations, and the threat of hackers, viruses, worms, and other malware.
The company identifies Canon, Sony, Kodak, Samsung, Nikon, Olympus, Apple, RIM, and Palm as the top competitors of ClixStar DI100. To counteract its competition, ClixStar foresees marketing, and the correct combination of the marketing mix, as being vital to further develop the brand, increase product awareness, and grow its consumer base. A value based pricing module was deemed most appropriate to reach the target market, and as such, the product will be priced at the manufacturer retail price of $250. 22, and the consumer retail price of $398. 00, with a steady annual increase in price.
Also, during the initial launch stage of the ClixStar DI100, the company will distribute its product primarily through its website, and selective online retail outlets. Promotion of the product during the initial stages will be done using predominantly internet advertising via social websites and other high impact websites such as; Facebook, Twitter, Myspace, and LinkedIn, Google, MTV, VH1, CNN, MSNBC, FOX, New York Times, and camera review sites. Other marketing communication channels that will be employed include magazines, limited television commercials, and sales promotions.
Moreover, the company also seeks to gain attention through celebrity endorsement, free press, and word of mouth. ClixStar, Inc. is on a mission to continually enhance the electronic images of the video surveillance and multi-media device industry by effective utilization of the most technologically advanced imaging technology. Thus, in the implementation of the ClixStar DI100, controls will be utilized to cover implementation and organization of the product’s marketing mix. The company will monitor ClixStar DI100’s sales and revenue on a monthly basis.
Also, on a quarterly basis, the company will monitor customer satisfaction and new product development. A manager would be appointed to manage the control process. If at any time, however, it is found that an aspect in the marketing mix is not working, the company will adjust its efforts accordingly. PRODUCT DESCRIPTION The new product line, ClixStar DI100, is a slim, touch screen, prosumer digital and video camera with internet and social networking capabilities. Focused on the social networking aspect, this camera is able to take high quality images, and videos with high resolution geared primarily for the web.
Coupled with advanced face recognition technology, this camera is able to upload pictures to networking sites, and allow individuals to be tagged automatically. ClixStar DI100 is a camera with all the professional abilities such as flash, 13. 5 megapixel quality, low light capabilities, manual mode focusing, metering controls, white balance, ISO, RAW file format, live view LCD, and panorama stitching. Complete with a lens from Zeiss, a pioneer in glass and imaging quality, photos from the ClixStar DI100 will resemble ones taken with a digital single-lens reflex (DSLR) camera.
Unlike most cameras which contain such an array of features, the ClixStar DI100 is a super slim and stylish camera appealing to the younger generations. This camera includes Bluetooth as well, which allows for easy transfer of pictures and videos between family, friends, and others. These target consumers are able to send an email, or upload pictures to the web using the QWERTY keyboard provided on the touch screen area in the back of camera. The user-friendly interface provided, mimic a simple design that opts for easy selection.
The live view is complete with features that consumers can select before, during, and after taking pictures to modify the pictures. Additionally, a comprehensive editing mode is available directly on the camera. Furthermore, purchasers of the ClixStar DI100 are able to join the exclusive ClixStar online community, where they can access and post pictures and videos, share stories, edit images and videos, create movie clips, create and send fun postcards, among other constant newly added features. SITUATION ANALYSIS ClixStar, Inc. s entering its second year of operation. The company first started as a wireless security camera business with the creation of its ClixStar S100 wireless security surveillance camera, which blended advanced face recognition technology with real time video streaming. The product has been so well received in the market place, that ClixStar, Inc. has been able to invest a substantial amount of money into market research and development. Now, after listening to consumers, the company is entering into the mature digital camera market. ClixStar, Inc. as successfully developed the ClixStar DI100, a slim, touch screen, prosumer digital and video camera with internet and social networking capabilities. ClixStar, Inc. has done extensive market studies, and now possesses great information of the market and the common attributes of its target consumers. This information will be leveraged to better determine who is served, what their specific needs are, and how to improve communications with these targeted consumers. Nonetheless, despite ClixStar’s technological innovation, competition in the market force is intense.
In the present market dozens of cameras that come out each year market leaders. There are six major key players in the market that dominate sales; Canon, Sony, Kodak, Nikon, Olympus, and Samsung (Pasini, 2008). Also, the market is filled with companies trying to penetrate the top-tier of the market. Even many cell phones and PDAs companies are notable competitors of the company. ClixStar DI100 thus foresees marketing being the key to further developing the brand, increasing product awareness, and growing its consumer base. Market Summary:
In the current market environment, digital photography is now a ubiquitous technology; film is dead. As Galer and Horvat (2005) concluded in their book Digital Imaging (13th Ed. ), “[d]igital imaging has revolutionized photography” (p. 2). Digital photography technology is in everyone’s hands, from the amateur to the professional photographer; it is the current popular technology that is available to the mass market. Furthermore, with the creation of the World Wide Web, the popularity of the internet and wireless internet devices has catapulted in recent years.
These recent market trends have resulted in multifunction devices and wireless communication devices becoming increasingly popular for both personal and professional use. ClixStar DI100’s present target market is estimated at 75 million consumers. The target market includes those who prefer to use a single device for digital photography, videos, edits, and on-the-go web access. Target group consists of people that enjoy digital photography, have active social lifestyles, spend money on acquiring latest technologies, and enjoy being in the spotlight.
Specific segments being targeted during the first year includes: “prosumers” (amateurs who buy professional-level features combined with consumer-level usability and price); semiprofessional photographers; and the recreational and technologically in-tune photographers. The target market includes both males and females, within the age range of 15-35 year olds, with 52% clustering around ages 18-25. The median income for the target market is middle to high income households. The average targeted household has a median personal income of $40,000. 0. Also, although the company has set no geographical target area for its product, marketing efforts for the first year will be concentrated in the United States only. ClixStar, Inc. believes that to properly reach the target market, a value based pricing module is more appealing. SWOT Analysis: The following SWOT analysis looks at ClixStar DI100, which is operating in the digital camera industry. The analysis shows ClixStar’s strengths, weaknesses within the company, and describes the opportunities and threats that the company faces.
The SWOT analysis will outline a clear picture of the business environment ClixStar, Inc. is operating in at the present time. Strengths: 1. Innovative design: ClixStar has an innovative product design. It is the first prosumer camera on the market to incorporate a slim design, with internet access, face recognition technology, and built in editing software. 2. Ease of Use: ClixStar DI100 incorporates all the necessary professional features with consumer level usability and price. Thus, both amateur professional, and professional both can use the product.
The ease of use of the product allows consumers to effortlessly take professional looking pictures, and videos; and if needed, easily allows consumers to edit these pictures and videos from the camera itself, upload them to the net, share them with friends, and tag faces of people automatically. 3. Option to add more features: ClixStar offers a wide variety of updates in the near future. This camera is connected to the web, so the updates will be easy to download. Also, ClixStar’s software is easily upgradable, increasing the usefulness of the camera, and allowing the product to be up to speed with the latest technology for years to come.
Weaknesses: 1. Lack of brand awareness: ClixStar DI100 is not a well established brand, as some of its competitors with strong name recognition such as, Kodak, Canon. This issue can be addressed however with aggressive advertising. 2. Heavily dependent on the internet: ClixStar DI100’s usefulness is heavily dependent on the internet. Without the uplink to the web, this camera is not very different from other digital cameras in the market. 3. Security concerns: ClixStar DI100 does not have enough memory to run an antivirus or a good firewall.
Resultantly, the product is more vulnerable to attacks from hackers, viruses, and web based malwares. Opportunities: 1. Increasing demand for multifunction devices with communication function: The market for multimedia, multifunction devices is growing at a must faster pace than single-use devices. As such, growth is accelerating as devices with multifunction capabilities become conventional. For instance, in today’s market, more and more camera users are no longer satisfied with the simplicity of the one function cameras.
Thus, a digital camera which combines professional-level features with consumer-level usability and price, and allows consumers to access the web, upload and edit pictures and videos, and join an exclusive networking site, has the opportunity to succeed in the current market climate. Although digital cameras are already common place in the market, the new trend shows that users who bought entry-level models are now trading up. 2. Attitude shift of consumers towards online shopping: A key opportunity that ClixStar DI100 has is the use of the internet as its major distribution channel.
The internet will be ClixStar DI100’s largest distribution channel, and since more and more consumers are shifting their shopping environment to the virtual world at an increasing pace, an opportunity exists for the ClixStar DI100. The shift in consumers shopping habits will be advantageous for the company and can be used to propel its venture. Also, with the product’s internet related features, the internet will help ClixStar DI100 realize its true potential. 3. Current need for esteem: “Today, everyone wants to be a star. Everyone needs their own page on Face Book” (LaTona, 2009, para. ). Thus, today’s consumers are constantly seeking self recognition. With the current trend for esteem, more or more consumers want to make sure that their pictures are comparable with those images of celebrities found in magazines. Thus, the need with a better quality camera, and more consumer control over the picture taking experience evolved. ClixStar DI100 can now satisfy consumers’ need for esteem by giving consumers more control over the picture taking experience and allowing them to post top quality pictures, videos, and comments. . Lower technology cost: The decline in technology cost is another factor that can work to benefit the ClixStar DI100. ClixStar DI100 is thus able to incorporate key advanced features (i. e. touch screen, internet and Bluetooth capability, and image editing software) at a value-added price that allows for reasonable profits. By incorporating these value added latest technologies, this product enters an untapped market for digital cameras, and is able to fulfill a need of consumers. Threats: 1.
Competitors may enter the market: At present ClixStar is the only product on the market with its product offering, which includes, web capabilities, face recognition technology, editing software, and a slim, compact design. Also, ClixStar is the only digital camera on the market to offer its consumer’s an exclusive product user only website. However, it just takes the creation of one new, innovative product and service, to make the product offering obsolete. Thus, competitors with greater brand equity in industries such as the camera, cell phone, and PDAs markets pose a serious threat to ClixStar.
Also, imitators that enter the market based on building on the idea of ClixStar DI100 can also have a major impact on ClixStar DI100’s business and profits. 2. Intense price wars: As a result of the mature market that ClixStar DI100 has entered, competition is fierce. Thus, a competitor’s creation of a similar product that offers features of the ClixStar DI100 can cause ClixStar DI100 to engage in price wars, which may result in shrinking profit margins, and may further threaten the company’s survival. 3.
Consumer lifestyle changes: Presently, the current lifestyles of our target consumers such as their active social lives, their need for public recognition, and their need to have their own fan club, are favorable to the ClixStar DI100. However, a change in the lifestyles of consumers, for instance, a lifestyle chance that supports a greater need for privacy, and a reducing interest in social networking sites, could lead to lessening demand for the product. 4. Competitors’ greater access to channels of distribution: ClixStar DI100’s primary distribution channel is the nternet. Although, the company will also utilities the few distribution channels available for it wireless surveillance camera, such channels are no comparison to distribution channels of top competitors such as Kodak, or Canon. If these top competitors enters the digital cameras with internet capabilities product line, their expansive distribution channels will pose a threat to ClixStar. 5. Economic slowdown: A decline in the economy may limit discretionary spending of consumers which in turn can reduce the company’s profit. 6.
New government regulations: With the current political climate being focused on national security, new government regulations may be implemented that may limit product usefulness, and result in decline in profit. For example, a government regulation banding the use of digital cameras in malls, buildings, subways, and/or websites, can lessen the need of individuals to carry the product, and can result in a decrease in profit. 7. Hackers, viruses, worms, and other malware: The slim, compact design of the ClixStar DI100 does not allow for antivirus software or firewalls to be installed.
The product will thus rely on the web browsers and websites’ antivirus software to worn off potential threats. This, however, leaves ClixStar DI00 vulnerable to outside attacks by hackers, viruses, worms, and other web based malware. Attacks by these various malware may affect the use of product, may negatively affect brand, may be created a reduction in profits. A SWOT analysis summary matrix is attached hereto as Appendix A. COMPETITORS AND SUBSTITUTES There are many digital cameras companies on the market. There are also many other companies offering multifunction devices with camera, such as many cell phone and PDA companies.
Competition is fierce. Many competitors are continually adding new product features at sharpening price points. As it stands today, ClixStar DI100 is the first digital camera in the market with advanced mega pixels that will connect to the internet and to different social networks, such as Facebook and Twitter. Consequently, there are no direct competitors in the current product market. However, given that the digital camera market is saturated with a great deal of products that can act as satisfactory substitutes, ClixStar DI100 thus has to monitor these indirect competitors and substitutes.
The top indirect competitors for ClixStar DI100 in the digital camera industry are: Canon, Sony, Kodak, Samsung, Nikon, and Olympus. All of these top competitors produce digital cameras that can be deemed by some as acceptable substitutes for the ClixStar DI100. The strength of these competitors lies in the length of time these companies have been in business, their high brand equity, strong distribution channels, strong relationship with dealers and suppliers, and their good quality and product designs.
All of these top competitors products are available through their website, many retailers and other retailers’ websites. Canon, the leading indirect competitor for the ClixStar DI100, is estimated to have a 19. 2% share of the market. “When it comes to the strategically important and fast-growing market of SLR cameras, Canon remained No. 1 worldwide in 2007…” (Shanklan, S. , 2008, para. 1). Sony, another indirect competitor of the company, is known to be a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets.
Sony believes that anything that one can imagine can be made real. According to Sony’s official website, “Sony recorded consolidated annual sales of approximately $78 billion for the fiscal year ended March 31, 2010…” (Sony Corporation of America, 2010, para. 1). Furthermore, K. Schurman, in his article entitled Introducing Sony Cameras stated that “Sony manufactured 23. 0 million [digital camera] units in 2007, good for a 17. 5% market share” (para. 1). Another indirect competitor of the company, and one that should be monitored closely, is Samsung.
Not only does Samsung cover the digital camera market, but Samsung is a well known cell phone provider too. With many of its phones now equipped with camera, and internet capabilities, Samsung can prove to be a dangerous competitor to the company. Samsung emphasizes the value, style, and function of its products, and at present, it is estimated to control 9. 1% of the digital camera market, and 15% of the mobile phones market. However, according to Digitimes, Samsung Electronics plans to ship 30 million digital cameras worldwide in 2012 to grab 20% market share for the leading position.
Other top indirect competitors of the company are: Olympus, which is estimated to control 9% of the market, focuses on being a precision technology leader; Kodak, which controls an estimated 8. 8 % share of the market, claims unmatched expertise in materials science and digital image science; and Nikon, which is estimated to have an 8. 4% market share, claims to be leader in creative, innovative designs. Apart from the digital camera manufactures, cell phone and PDA manufactures are also indirect competitors of ClixStar DI100.
As the gap among a cell phone, a PDA, and a camera is blurring, companies that produce all of these products becomes indirect competitor of each other. The three most notable competitors in the mobile phone and PDA market that can become competitors of ClixStar, Inc. are Apple, RIM, and Palm. Apple makes the iPhones, a smart phone designed for the entertainment enthusiasts. The phone comes equipped with a digital camera and internet access, and with each new version that comes unto the market the digital camera feature is being updated.
Similarly, the company RIM makes lightweight blackberry wireless phones. Like the iPhones, this phone comes equipped with a digital camera and internet capabilities. The company RIM continues to be an innovation leader, and is constantly updating its features, including its digital camera. The company Palm, on the other hand, is the market leader where it relates to PDAs. Palm PDA also comes with a digital camera and the current trend is now producing PDAs with internet access. Palm’s strength lies in its excellent distribution channels and its coalition with telecommunication carriers.
Due to the vast amount of resources that these top indirect competitors of ClixStar DI100 has, in order to succeed among the competition, ClixStar, Inc. has to engage in aggressive marketing of its product. The market strategy ClixStar, Inc. will employ to promote ClixStar DI100 is a market penetration strategy. Aggressively marketing will be done to build brand awareness, and strengthen the company’s image among specific target market segments, and attract new customer. ClixStar DI100 internet access capabilities, and direct editing software, will be critical points of differentiation for competitive advantage.
MISSION STATEMENT ClixStar, Inc. is on a mission to continually enhance the electronic images of the video surveillance and multi-media device industry by effective utilization of the most technologically advanced imaging technology. ClixStar exist to keep its customers secure and safe, to enrich the memories of diverse cultures, and to offer employees an environment in which they can attain their professional and personal goals. TARGET MARKET The target market for ClixStar DI100 is the on-the-go consumers who prefer to use a single device for digital photography, videos, edits, and virtual sharing.
ClixStar will aim to have appeal across multiple target markets. As such, the target market is estimated to be over 75 million consumers. Specific segments being targeted during the first year of the launch of the product are: “Prosumers”; semiprofessional photographers; and the recreational and technologically in-tune photographers. It is estimated that Prosumers, amateurs who buy professional-level features combined with consumer-level usability and price, comprise of about 25% of the total target market.
Overall, the target market segment includes both males and females, within the age range of 14-35 year olds, with 52% clustering around ages 17-27. The median income for the target market is middle to high income households. It is estimated that the average targeted household has a median personal income of $40,000. 00. ClixStar, Inc. , has also determined that typical users of the product enjoy digital photography, have active social lifestyles, spend money on acquiring latest technologies, and enjoy being in the spotlight. ClixStar, Inc. as no set geographical target area for its products because of the expansive reach of internet; its main distribution channel. However, marketing expenditure for the first year will be concentrated in the United States only. In time, the company will seek to expend its marketing expense budget to serve the needs of both its domestic and international market. However, the company notes that despite the increasing capabilities of the camera, the technology costs have declined. Thus, to properly reach the target market, a value based pricing module is more appealing.
The dominant target group will be those ages 17-27 demographic. This age group is very tech savvy and tends to spend a significant amount of their day on the go and online. The ability to upload pictures directly online should be well received by them. These target consumers are those who already use iPhones, Blackberries, other digital cameras, to take pictures and post them on social networking sites such as Facebook and Twitter, but who will see the need to buy the ClixStar for the high quality image and editing software that it allows. ClixStar DI100 will also target the semi-professional market.
With ClixStar DI100, users will have the complete range of DSLR capabilities, along with the ability to share these high quality pictures and videos online in a much smaller device than a DSLR. Time is of the essence to people such as photojournalists. Thus, ClixStar DI100 will appeal to these consumers as it allows them the means to capture an event and send it to their offices right away with high quality results. Also, the product will appeal to consumers as it avoids them having the hassle of connecting the camera to a laptop and then sending pictures, videos and information.
The receivers can evaluate the pictures and let the photographer know if other re-shoots are required. PRICING ClixStar, DI100 will be introduced to the market at a retail price of $398. 00. The company anticipates a steady annual increase in the price. The price of the product was determined based on a number of factors including the fixed and variable costs to produce the product, percentage markups of distributors and retailers, and competitors’ pricing. The price selected was also chosen to reflect value in the mind of our target audience.
The company also priced its product to ensure the ClixStar will be able to take a significant share of the market from competitors. The camera will comes complete with all the accessories that the customers will need, including an installation CD, USB cord, camera case, instructional booklet, and rechargeable batteries. All of the fixed and variable costs for these items were already factored into the retail price of the camera. The company sees a standard retail price of $398. 00 to be reasonable to satisfy the needs of customers, retailers, and the company.
The product will be sold to the company’s select online distributors at the per-unit cost of $250. 22. A complete Pricing Worksheet is attached hereto as Appendix B. CHANNELS OF DISTRIBUTION ClixStar, Inc. endeavors to bring its products within reach of the target audience. ClixStar, Inc. is organized as an internet based company. ClixStar, Inc. At the launch of the DI100, ClixStar channel strategy is to use selective distribution, and distribute the DI100 predominately through the company’s website, and few retail outlets. Through its web site, www. ClickStar. om, ClixStar will take orders directly from customers and distribute products directly to those customers. Given that the company has watched and witnessed the growth of sales from its selective distribution strategy in the past, it sees this strategy also being successfully implemented with the ClixStar DI100. Aside from the company’s website, ClixStar will be available through the websites of electronics companies. The company’s product will also be distributed via the select online retailers and distributors that currently sell the company’s surveillance cameras.
These online distributors are Best Buy, Circuit City online, J & R, and Amazon. All the aforementioned channel partners will carry ClixStar in their catalogs and on their website. Online retailers like Amazon. com will carry the product and it will give ClixStar a prominent placement on its home page during the introduction. At the onset, distributors will be restricted to the United States. However, the company plans to expand its distribution channel partners to include partners in Canada, and other developed countries in the near future.
ClixStar will also investigate distributing its products through some unconventional channels of distribution such as Social networking sites, social bookmarking sites, and social media site. Nonetheless, ClixStar believes that these selective channels will afford ClixStar greater control over the distribution process, while at the same time prevent intense competition that can lead to price wars that that negatively cut into its profit margin. PROMOTIONS ClixStar’s promotional budget in the first year of operations is estimated to be $12,000,000. 00 dollars.
Thus, the type of marketing channels that ClixStar, Inc. will use to promote the ClixStar DI100 during its first year of launching will be mostly low cost, high impact advertising media. The advertising messages would be geared towards building brand image and promoting the differentiation message. The promotion objective for ClixStar, Inc. , will be to create buzz and inspire desire to buy among the target market. ClixStar sees the use of the internet as its predominant channels for promotion during its initial year of operations. It is ClixStar Inc’s belief that these avenues will most effectively reach its arget audience at a reasonable cost. Additionally, the company will also promote the product using magazines, limited television commercials, and sales promotions in the initially promotions plan. The company also seeks to gain attention about its products through celebrity endorsement, free press attention, and word of word. The majority of the promotional plan will be geared toward the utilization of the internet. Thus, advertisements will be created by the company’s marketing department, and these ads will be displayed on the social websites, Facebook, Twitter, Myspace, and LinkedIn.
Also, ad will be created and displayed on the websites Google, MTV, VH1, CNN, MSNBC, FOX, New York Times, and camera review sites. The launch date for the ClixStar, Inc. is scheduled for the first week in November, before the Thanksgiving Day holiday. For two weeks before the product launches and three months after the product has launched, ClixStar, Inc. will place ads on those sites once a week for an entire day. Following the three months of launching the product, the company will evaluate these advertising mediums and drop the websites that are less effective.
In order to appropriately select the days in which the ads will run, ClixStar, Inc. will conduct marketing research about media consumption patterns. On these social websites these ads will be displayed as a banner on the site’s homepage and ClixStar, Inc. will be paying on a per click basis. ClixStar, Inc. estimates the cost of advertising on these social networking sites to collectively be $9. 09 million for the one year. The company believes that social networking sites are effective channels for promotions because these sites are used daily by ClixStar’s target market at high frequencies, and because the product which ClixStar, Inc. s promoting seeks endeavors to enhance the social networking experience of these targeted users. The websites that ClixStar will initially use to promote the product will also be used as a promotional tool to generate buzz about the product. A redirect ad will be placed on these sites that once clicked on will redirect users to the company’s website. Beginning in the first month of launching the product, for a six week period ending just before the Christmas holiday, a sales promotion will be commenced where individuals can enter on our company’s website for a chance to compete to win a ClixStar DI100 camera and a chance to win $25,000. 0. Within the first year of launching the product, the company plans to conduct a total of five similar promotions offers, with a total promotion expenditure of $125,000. 00. In addition, to commemorate the one year anniversary of the launch of ClixStar DI100, the company will hold a contest beginning three months prior to the anniversary date asking people to email their extraordinary pictures taken using their ClixStar camera. Ten finalists will be chosen by a select panel in our marketing department. The finalists’ pictures will then be placed online, and individuals will get the chance to vote for the winners.
On the one year anniversary of the product, ClixStar will award prices of $50,000, $25,000, and $15,000 to three chosen individuals who the voters believed used their ClixStar cameras in extraordinary ways. The pictures of these winners will be posted on the company’s website. ClixStar hopes to continue this contest yearly because ClixStar believes that these contests will bring more traffic to the company’s website, which will ultimately build brand awareness, brand loyalty, and a sense of goodwill toward ClixStar’s.
ClixStar also plans to use the pictures submitted by the participants to find new ways users can benefit from the product. Therefore, the contest will provide an avenue for the company to perform market research as well as promotion of the product at a relatively low cost. Furthermore, to be successful at drawing traffic to the company’s website, ClixStar will make sure that the website is professionally designed and user friendly. This website design and development is estimated to cost the company $10,000. 00 initially. After the first year, the company anticipates the up keep cost for the website will be minimal.
In addition to advertising on social networking sites, the company sees advertisements on social media sites such as Youtube, Flickr, and Podcasts, as very influential site. These websites have been successfully used in several advertising campaigns to create internet buzz which leads to better exposure to the company’s target audience. ClixStar, Inc. will create videos to be placed on these sites that will mimic homemade videos made by up-and-coming musicians and show how they manage to share their photos with their family and fans.
The videos will be inexpensive to produce because the company will forego a production team and just place the cameras in the hands of fittingly selected musicians just several weeks before the camera is launched. These videos will be professionally edited by a video editing company and will be placed on these social media website every two weeks beginning two months before the camera launches, and once a month for six months after the launch of the product. These videos will also have at the end of it, the ClixStar’s website address.
The company believes that after watching musicians use the cameras, the target market will want to emulate and participate in creating their own ways of making videos, and so they will have the desire to purchase the product. These videos will stay up on Youtube indefinitely. The company estimates the cost for editing these videos to be $4,000. 00 per video, and it plans to post a total of 10 videos during the promotion time, for a total cost to the company of $40,000. 00. Additionally, the companies will create full page ads that will be placed in selective magazines in its effort to promote the product.
Wired, a magazine geared to gadget loving individuals will be used in the first three months of launching the product. After about the second month of the launch of the product, the company will design and place ads in the magazines Vanity Fair, Cosmopolitan, and InStyle. ClixStar will utilize these magazines to place ads in each monthly issue of the magazine for a six months period. Once again, marketing research to determine media consumption will be used to in order for ClixStar to know when and where in the magazine to place these ads.
After six months ClixStar will evaluate the effectiveness of these magazines to determine which ones it should continue to place ads in. The ads that will be placed in these magazines will be high-impact colorful ads that will attract the attention of our audience. The points of differentiation that the ad will focus on are the camera’s ability to access the internet and the high quality of the images. ClixStar estimate that these full-page print ads will cost an estimated $144,100. 00 each month for each of the magazines the ad is placed, and estimates that it will cost about $4,000. 00 to design.
These ads will also be placed on the online version of the magazines for the six months period, in order to reach a larger audience that does not subscribe to the print version. Furthermore, ClixStar as part of its sales promotions, and in order to help push the product, will send free samples of the product to celebrities. The company will try to get the product into the hands of right celebrities. Ideally, ClixStar will like for media and paparazzi following these celebrities to photograph these celebrities carrying the product, which ultimately will generate buzz for the product and increase sale.
The company will adequately compensate the celebrities for their endorsement. The company will also try to get celebrities to tweet about the great quality of the product on twitter in order to encourage sales. The annual promotion budget for the first year launch of the ClixStar DI100 is estimated to be $12,762,000 as shown below. PROMOTIONS BUDGET MEDIUMTOTAL YEARLY Production Budget Web Hosting Website Design Online Ad Design Video Edit $ 8,000 $10,000 $4,000 $40,000 Marketing Communications Internet Advertisements
Magazines$9,090,000 $2,000,000 Sales Promotions Online Contests Camera Giveaways $210,000 $200,000 Celebrity Endorsements$1,200,000 TOTAL$12,762,000 CONTROLS Controls are being setup to cover implementation and the organization of ClixStar’s marketing activities. ClixStar, Inc. will monitor the following areas to gauge performance: •Revenue—monthly basis •Expenses—monthly basis •Customer Satisfaction—quarterly basis •New Product Development—quarterly basis IMPLEMENTATION ClixStar, Inc. will employ tight control measures to monitor its quality, performance, and customer service satisfaction.
This will allow the company to respond very swiftly to correct any problems that may arise. The task for managing the marketing activities will be the responsibility of the chief marketing officer Lisania Perez. Early warning signs that will be monitored for deviation in the plan include monthly sale and monthly expenses. The company will then track its successes and failures by reviewing planned versus actual results. Successes and failures will be reviewed and addressed on a quarterly basis. ClixStar, Inc will have a plan of action with specific tasks that will ensure that the details are clear, and that specific persons are accountable.
If, at any time however, it is found that an aspect in the marketing mix is not working, the company will adjust its efforts accordingly. APPENDIX A SWOT Analysis Summary Matrix STRENGTHS •Innovative design •Ease of Use •Option to add more featuresWEAKNESSES •Lack of brand awareness: •Heavily dependent on the internet: •Increase of cost: •Security concerns: OPPORTUNITIES •Increasing demand for multifunction devices with communication function •Attitude shift of consumers towards online shopping: •Current need for esteem: •Lower technology costTHREATS •Competitors may enter the market Intense price wars with competitors •Consumer lifestyle changes •Competitors’ greater access to channels of distribution •Economic slowdown •New government regulations •Hackers, viruses, worms, and other web based malicious software.