Power bank target market

The SunBox Marketing Plan

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Contents 1.0 EXECUTIVE SUMMARY ............................................................................................................... 1

2.0 COMPANY PROFILE .................................................................................................................... 1

2.1 MISSION ...................................................................................................................................... 2

2.2 POSITIONING STATEMENT ................................................................................................... 2

3.0 MARKET ANALYSIS ..................................................................................................................... 2

3.1 TARGET MARKET SEGMENTATION ................................................................................... 2

3.2 SIZE AND POTENTIAL OF TARGET MARKET .................................................................. 2

3.3 S.W.O.T. ANALYSIS ................................................................................................................. 3

3.3.1 STRENGTHS ...................................................................................................................... 3

3.3.2 WEAKNESSES ................................................................................................................... 3

3.3.3 OPPORTUNITIES .............................................................................................................. 3

3.3.4 THREATS ............................................................................................................................ 3

3.4 PESTEL ANALYSIS .................................................................................................................. 4

3.4.1 POLITICAL/LEGAL ........................................................................................................... 4

3.4.2 ECONOMIC ......................................................................................................................... 4

3.4.3 SOCIAL ................................................................................................................................ 4

3.4.4 TECHNOLOGY ................................................................................................................... 4

3.4.5 ENVIRONMENT.................................................................................................................. 5

3.5 INTERNAL ANALYSIS.............................................................................................................. 5

3.5.1 PROCUREMENT ................................................................................................................ 5

3.5.2 TECHNOLOGY DEVELOPMENT ................................................................................... 5

3.5.3 MARKETING AND SALES ............................................................................................... 5

3.5.4 SERVICE ............................................................................................................................. 6

4.0 COMPETITOR ASSESSMENT .................................................................................................... 6

4.1 INDUSTRY BUSINESS DECRIPTION ................................................................................... 6

4.2 PORTER’S FIVE FORCES ANALYSIS .................................................................................. 6

4.2.1 THREAT FROM NEW ENTRANTS ................................................................................. 6

4.2.2 BARGAINING POWER OF CUSTOMERS (BUYERS)................................................ 7

4.2.3 BARGAINING POWER OF SUPPLIERS ....................................................................... 7

4.2.4 THREAT OF SUBSTITUTE .............................................................................................. 7

4.2.5 INTENSITY OF RIVARLY ................................................................................................. 7

4.3 CRITICAL SUCCESS FACTORS ............................................................................................ 7

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4.4 CURRENT MARKET CONDITIONS ....................................................................................... 8

5.0 MARKETING STRATEGY ............................................................................................................ 8

5.1 MARKETING OBJECTIVES .................................................................................................... 8

5.2 OVERALL MARKETING STRATGEY .................................................................................... 8

5.2.1 PRODUCT DECISIONS .................................................................................................... 8

5.2.2 PRICING DECISIONS ....................................................................................................... 9

5.2.3 DISTRIBUTION DECISIONS ............................................................................................ 9

5.2.4 PROMOTIONAL STRATEGIES .................................................................................... 10

6.0 FORECAST AND BUDGET ....................................................................................................... 11

7.0 IMPLEMENTATION AND CONTROL PLANS ........................................................................ 11

7.1 ACTION PLAN .......................................................................................................................... 11

7.2 CONTROL PLANS ................................................................................................................... 12

7.2.1 MEASURING PERFORMANCE .................................................................................... 12

7.2.2 ORGANIZATION CONTROL ......................................................................................... 12

8.0 CONTINGENCY PLAN................................................................................................................ 12

9.0 CONCLUSION .............................................................................................................................. 12

10.0 APPENDIX..................................................................................................................................... 14

11.0 BIBLIOGRAPHY .......................................................................................................................... 27

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1.0 EXECUTIVE SUMMARY The SunBox would be the very first wireless solar power bank launched in Singapore. Solaris Technologies have collaborated with GP batteries and Trina Solar, creating an eco-friendly and user friendly power bank for the growing mobile industry. The SunBox would feature wireless charging and the convenience of solar charging outdoors. With the improved and advanced engineering from GP batteries and Trina Solar, SunBox is able to store energy and be solar charged more efficiently than others available in the market. With an ever growing population in Singapore, increasing number of the market are using smartphones and tablets, creating the perfect market for the SunBox to be launched.

The SunBox provides many perks for users, the greatest of all would be its convenience and cable free charging, eliminating any cable knots and mess created. Additionally, the solar energy industry has just received S$12M of funding in future developments, favouring Solaris Technologies in its future endeavours.

Being the pioneer in providing consumers with portable solar charging devices allow Solaris Technologies to set benchmarks and carved out greater market share in this populated country. Furthermore, Solaris Technologies would also be able to reach to the ASEAN region with Singapore being the hub. It will be able to reach and connect to neighbouring countries such as Malaysia, Indonesia, Thailand and the Philippines as a pioneer in the portable solar charging devices industry.

The great demand of smartphone set by Apple and Samsung has created a world market. However, battery efficiency and life still poses a constant problem for users. Therefore, the SunBox would be marketed in the following briefed campaign strategy to address this issue. 

Through the use of research and market analyses done, we are able to determine factors and strategies that would allow us to achieve 10% market dominance within the first year of launch. The market share dominance would than grow and increase as we establish a strong user base. 

The SunBox is also aesthetically built and designed to be of highest quality and sturdiness. The design favours people of all walks through the use of clean lines and simplicity, appealing to the market as a simple and modern looking clean technology that could be carried around easily.

Retailing at major outlets and shopping malls, the SunBox would be greatly exposed to the market. Advertising of the SunBox would be intensive and extensive to capture maximum exposure and awareness. 

2.0 COMPANY PROFILE Solaris Technologies is a technology company that is focused on providing real world resonant wireless solar power solutions to the mobile market. It will be classified under the manufacturing and retail business sector. It believes in the future of solar technology and we think it is paramount to enable this technology in a way that maximizes reliability, efficiency, value and convenience. It will co-partner with GP

Comment [JN1]: Writing in Third Person is required

Comment [JN2]: You have some “selling” in the report findings

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Batteries International Limited, to engage in the development, manufacture and marketing of wireless solar batteries and battery-related products.

2.1 MISSION Solaris Technologies is about innovation, suitability and trust integration. Exploring new technology innovation that aims to achieve convenience for end users. Trust is crucial on this new technology product and aims to be a widely accepted and commonly used in current society by 2015 and achieve more than 10% of the market share. Hence the brand value must portray trustworthiness, reliability and sincerity.

Our mission and vision is to serve and innovate high quality yet affordable wireless solar portable charger. Technical expertise and the continuous break though in innovative technologies will guide us in propelling Solaris Technologies products to be of highest quality and standards.

2.2 POSITIONING STATEMENT SunBox will be the first solar powered power bank in Singapore that provides users with effortless charging of their devices through wireless charging, it will also be the first to use solar energy to charge the power bank. SunBox would not require cables to charge the devices, it would be the first being offered into the Singapore market. Without the use of cables, it eliminates the need for cables and wires which easily create a mess inside the bags. Users would also not need to constantly remind themselves to bring the cables along with the power banks. Good

3.0 MARKET ANALYSIS

3.1 TARGET MARKET SEGMENTATION Solaris Technologies would need to target the right market segment in order to achieve maximum exposure and outreach and ultimately increase number of sales. As the target population is large we would need to segment it by demographic and psychographic segmentation in order to appropriately apply the marketing strategies and tools. Demographically, we are targeting mobile users of age 16 – 45, male and female, students to working adults. Psychographic segmentation, we are targeting users who are tech savvy, social media fanatics, heavy video streaming users, peer influential users who are constantly using their mobile phones and users who are always on the go with no charging point available. 

3.2 SIZE AND POTENTIAL OF TARGET MARKET The industry of external power is driven by the rise in demand for smartphones and tablets. In accordance to a statistics from the United States in Figure 3.2.1, Singapore is ranked 4th on the global stage in Smartphone penetration with almost 3 in 4 people in Singapore owns a smartphone (Richter 2013). Singapore has a population of 5.47 million in 2014 (Department of Statistics Singapore 2014). Taking 71.7% as shown in the data Figure 3.2.2, this represents 3.92 million of smartphone users in Singapore. Therefore, with smartphones becoming a necessity and a core to the mobile phone industry. A steady supply of battery power would greatly improve the mobile phone usage experience. 

Comment [JN3]: The SMART (specific, measurable, attainable, relevant and time- bound) objectives were not covered

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Low or empty battery is the daily concern of Singaporean smart phone users. 3G or 4G web content browsing contributes largely to the power usage. In the Asian context, over 80% of Asian mothers has gone digital and increase their internet usage. In Figure 3.2.3 depicts the usage of smartphone by mothers and their frequent social media accounts in terms of communicating with the world (Warsia 2014). With a growing population and ever improving technology, the market for external power sources and better battery capacity and performance would continue to grow in the future. Good, well covered

3.3 S.W.O.T. ANALYSIS

3.3.1 STRENGTHS The current USB power banks require consumers to use the cable to charge their smartphone and tablets. The cables are either coiled around the power bank or left as it is, creating a mess inside the bag. Users must also remember to bring the cables out with them which can be inconvenient at times. Our solar wireless charger would eliminate the need for cables and the mess it would create and the trouble for constantly remembering to bring it out. It can be left in the bag, pocket or hand carried without cables attached. Therefore, our solar wireless charger could bring greater convenience than the USB power banks. Furthermore, it is solar-powered, which is environmentally friendly, clean technology that is supported by the government. Being the pioneer of the solar wireless power bank product, gives us the competitive advantage of defining the standards of the industry and also an advantage in distribution.

3.3.2 WEAKNESSES Being a new start-up company and we are a small and medium enterprises (SMEs), we are faced with the challenges of having a good assortment of skilled workforce. We may also not be able to market to the mass audience within a short period of time. As the product is new in the market, it needs to educate the target market about the benefits of the solar wireless product and remove doubts about wireless charging. 

3.3.3 OPPORTUNITIES Since we are the only solar wireless charger in the Asian market, it would be of great opportunity to further expand our target market to other Asian countries other than just Singapore. It also brings us the opportunity to educate and change consumers’ attitudes on wireless charging and our green eco-friendly technology of solar charging. 

3.3.4 THREATS As technology can be easily replicated, this may prove as a threat for us. Just like other USB power banks that had been replicated since its first introduction into the market. New regulations to regulate foreign employment and new technology businesses may also impact us and affect the business operations both locally and overseas. 

Comment [JN4]: You have Identified the unmet needs of the target market

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3.4 PESTEL ANALYSIS

3.4.1 POLITICAL/LEGAL In 2013, Singapore was ranked second in the IMD World Competitiveness Yearbook as the least bureaucratic country in Asia (Singapore Economic Development Board 2014), making Singapore one of the most ideal places for business operations. On top of being least bureaucratic, “the Singapore government practices an open and transparent approach when it comes to all businesses matters, resulting in Singapore being ranked the most transparent country in Asia and top 3 in the world for least corruption in the economy” (Singapore Economic Development Board 2014). However, there are regulations that might be of a threat to businesses, especially towards small and medium enterprises (SMEs) . The government has recently introduced significant measures to moderate the inflow of foreign workers. The levy rates to employ a foreign worker on an S Pass or Work Permit have increased significantly as well as the minimum monthly salary for these categories of workers have also increased to $2,000 (National Population National Division 2013). This will pose a significant issue to us as a start-up company. However, the government also offers various schemes to help the SMEs i.e. tax rebates. 

3.4.2 ECONOMIC As Singapore’s economic growth is dependent on major external economic developments, any uncertainties in the major economics such as the Eurozone, the USA and Asia will greatly affect the economic growth of Singapore. Singapore’s economic growth is forecast to be at 2.5 - 3.5% for the year 2014 and inflation is expected to stay between 2% - 3% (Monetary Authority of Singapore 2014) as wages will start to increase due to regulations on tightening of the inflow of foreign workers and thus, the pressure will be passed on to the consumers. 

3.4.3 SOCIAL As technology improves and advances, increasing percentage of Singaporeans are using smartphones and tablets as means of communication. In an article published by the Straits Times, 78% of the people in Singapore owns at least one smartphone and these smartphone users are between the age of 16 – 60 years old (The Sunday Times 2013). With 78% of the local population using smartphones, our target market will be relatively large, both male and female ages between 16-60 years.

3.4.4 TECHNOLOGY Singapore has limited and constrained resources hence, it’s constantly looking into sustainable alternative and clean technology, with that, Singapore is committed to developing solar energy capabilities. The Economic Development Board (EDB) has awarded $12 million in grants for research projects on innovative and efficient ways to tap solar energy (Singh 2013). Trina Solar being one of world’s foremost photovoltaic (PV) companies established its Asia Pacific operating headquarters in Singapore is one of the many companies that benefitted from the grants offered in Singapore. Therefore a collaboration with Trina, would be beneficial and advantageous to us (Singapore Economic Development Board 2014)

Comment [JN5]: Possible funding from govt?

Comment [JN6]: How much time are spent on using Smartphones?

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3.4.5 ENVIRONMENT Singapore is strategically located in the Asian Sun Belt which receives about 50% more sunlight. This means that Singapore is an ideal place to launch our solar wireless charger. Besides being a “sunny” country, Singapore is ranked as one of the best investment location, making Singapore the most conducive environment for business in the world. Singapore being world class in its infrastructure, enhanced with specialized logistics capabilities, facilitates regional distribution. These enable companies ease and more efficient access to Asia’s untapped market (Singapore Economic Development Board 2014). This allows us to have an excellent means of distributing our products to the ASEAN region, other Asian countries and even to Australia and New Zealand with ease.

3.5 INTERNAL ANALYSIS

3.5.1 PROCUREMENT The quality of the product must be high to ensure consumers purchase, becoming a credible and trustworthy company. Therefore, we need to procure good quality photovoltaic (PV) cells to reduce the errors and faulty products that may be produced. Other than the photovoltaic (PV) cells, the other components must also be of standard and quality to ensure in the overall quality of the solar wireless charger. With lower errors and faulty productions, the cost of production would be lower as the need to reproduce is eliminated. Being a company that has lower errors and faulty products, would also be creating an image of credibility, trustworthy and a good quality brand image to the target market. This would also create good publicity for the company, as well as the product. With good word-of-mouth spread among the target market, the need for advertisement could easily be reduced. 

3.5.2 TECHNOLOGY DEVELOPMENT We would need to enhance our sales tracking and logistics management system to ensure that there are no times when the product is out of stock. Creating an excellent shopping experience for the target market. Being a technology company, we should also constantly upgrade and enhance the shopping experience in the retailing stores and also via the e-market platform. Other than just the benefits of the target market, we should also create a better work environment and simplify operations via technology for our staff. The solar wireless charger must also be constantly being upgraded and improved to cater target market’s demand i.e. higher charging power, faster charging etc.

3.5.3 MARKETING AND SALES The marketing and sales of the new product would be critical for us, being a new company. The marketing and sales team would need to determine the marketing channels, medium and the message to be sent to the target market. The message must be clear and concise and be integrated throughout the company. We would need to ensure that the marketing support is excellent and strong to support the sales team i.e. website to advertise the company and product, P.O.P materials at retailers etc. The relationships with vendors must also be well established to better position our product to the target market. 

Comment [JN7]: Well covered macro trends

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3.5.4 SERVICE The unique selling proposition of our product is convenience. We would still need to ensure excellent service provision to both our intermediaries and our end consumers. Building rapport and establishing good relationships with our intermediaries would assist our sales. Providing a unique buying experience for customers and good after sales service and benefits could attract more customers and widen our customer base. Having an excellent buying experience and a good quality product would also create good reviews and word-of-mouth, the intermediaries and end consumers would then in turn become one of our marketing sources.

4.0 COMPETITOR ASSESSMENT

4.1 INDUSTRY BUSINESS DECRIPTION The concepts and designs of chargers and rechargeable batteries have progressed tremendously overtime with portable electronics becoming a necessity in this era. Battery charging devices are a norm these days and can be found in almost all households; the idea that triggered this invention was to save money on batteries (up to hundreds of dollars per person on average), save time spent to purchase new ones and to be ‘green’ by reducing toxic waste.  The most common household battery is the lithium-Ion battery, which was introduced by Sony in 1991. The battery is available in all sizes and it is commonly found in digital cameras, laptops, mobile phones, and most portable electronics. However, there are also other classes of battery that were in the market in the last 25 years such as, nickel- metal hydride, zinc-air, and lithium polymer. Microelectronic battery charger controller technology has also been constantly improving at the same time to accommodate higher performance in smaller and safer designs which has aid in the commercialization of portable electronics. Engineers in the portable product, battery and battery charger industries are still continually innovating and developing which could result in an explosive growth and partnership across the industry. The best partnership to produce evolved high performance products would be team work between electrochemists (battery designers) and electrical and electronics specialists (battery charger designers) (Dern 2012).  The market for portable, battery-powered products have grown from simple products like flashlights and wristwatches to a diversified and flourishing market that includes communications, entertainment, and computing, photographic, military and medical equipment. This has in turn drove the growth of the power supply industry in terms of; the innovation of power management integrated circuits, fuel cell development, re- chargeable batteries, battery chargers and adapters. The demand for increased functionality could be an advantage and disadvantage for battery pack makers because with increased functionality, comes increased power needs (Brush 2004).

4.2 PORTER’S FIVE FORCES ANALYSIS

4.2.1 THREAT FROM NEW ENTRANTS Tech company pose a threat as technology can be copied easily when demand increases and supply is low. This is evident in the mobile phone industry,

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from the beginning of Nokia, Ericsson and to Apple iPhones, Samsung and now to China Xiaomi. Many of the original equipment manufacturers (OEM) for some of the popular brands of smartphones have started to produce their own brand of smartphones and the prices of their smartphones are very competitive as compared to those popular brands that are available in the market. Even though, producing the products locally may be costly but manufacturing does not need to occur locally therefore, factors such as costly manpower and land space may not be an issue for new entrants.

4.2.2 BARGAINING POWER OF CUSTOMERS (BUYERS) Bargaining power of customers are affected by the absence of substitutes as products are highly specialized and a high level of dependency on the suppliers resulting in an inelastic price of demand. There are only USB power banks are available in the market currently. Our company would be the first to launch the solar wireless. As the product is the only one of its kind in the market, there is no comparison that can be made. With that, bargaining power of buyer would be low as compared to the USB power banks available in the market that are competing against each other. 

4.2.3 BARGAINING POWER OF SUPPLIERS There are approximately 12 leading industry players in the solar industry which includes Trina Solar. With solar energy getting more publicity, more of such manufacturers will join the industry and photovoltaic cells would be cheaper to produce as supplies increase. With greater supply and new joint ventures, economies of scale can be achieved thus, bargaining power of suppliers would be low. Good

4.2.4 THREAT OF SUBSTITUTE Threat of substitute products are high with the array of different USB power banks available in the market i.e. Xiaomi’s 10,400mh Mi power bank is sold only at $13.99 (Xiaomi 2014). Since there are several different brands of USB power banks, prices are relatively reasonable and it has become available with the e-market. Therefore, the solar wireless charger must be priced competitively to influence the USB power bank users to switch.

4.2.5 INTENSITY OF RIVARLY Solar wireless charger is currently not available in Singapore. But, with the e-market being the world market place, solar wireless chargers can be acquired through the internet platforms and portals. In the ASEAN region and locally, the solar wireless chargers are not available in retailers hence, the intensity of rivalry is low. OK well covered and appropriate. What is the impact of your market entry?

4.3 CRITICAL SUCCESS FACTORS Critical success factors will determine the prospect of the SunBox. The Sunbox would require much advertising to create consumer awareness. The consumer market would also need to be educated of how solar powered chargers work and its benefits. Since the SunBox would be sold in retailers, the location of retailers are also important. The location would determine the consumer traffic and thus, create higher chance of exposure for the SunBox. Although the locations of retailers are important, the service provided and the quality of the SunBox must also be of highest standard, creating a trustworthy and reliable brand image.

Comment [JN8]: Are you assessing smartphones or batteries market?

Comment [JN9]: Who are the indirect competitors? Possibility the smartphone manufacturers who make more power efficient phones?

Comment [JN10]: Why not use publicity since it is a news worthy ?

Comment [JN11]: Your target markets are young and tech savvy, can it be sold by e-retailers instead?

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4.4 CURRENT MARKET CONDITIONS Smartphone capabilities have advanced tremendously in recent years however, batteries and battery technology have not kept pace and everyone has this problem (Haskin 2008). It is difficult enough to keep plain- vanilla cell phones charged for a busy day of talking therefore, battery life is much more needed when the device is used for web surfing, documents editing, text messaging, music and video playbacks etc. In 2007, Apple introduced the iPhone and that began the rapid growth of external battery. The demand for universal portable power flooded into the market and smartphone users became the largest segment for portable mobile power which is commonly also known as portable power banks (Green 2013). Portable power banks has its many advantages but of course, they are also not without their disadvantages such as steeper prices for good quality power banks. Other considerations may be the power capacity, the shape, weight and the charging time of the power banks.