1. PHASE 5 INDIVIDUAL PROJECT
THE FINAL PLAN
PHASE 5 INDIVIDUAL PROJECT
KENNETH C HOLMES
MKTG B-03
PROFESSOR GENE TOPPER
June 22, 2015

2. KEY PLAN OBJECTIVES MM’s sales MM’s market share percentage
MM’s customer base
MM’s customer brand awareness percentage
“THE HIPSTER”:
Just a reminder, “THE HIPSTER” target markets included pre-teens, teenagers, and their parents, but will also appeal to consumers 20 to 24 years old. These demographics provide a potential consumer market of almost 42 million pre-teens and teenagers, and potentially 22 million consumers age 20 to24 (DeWulf, 2015).
MM’s sales (Pearson Education Inc. , 2015):
Based on MM’s current sales level of $2.75 billion, the sales goal is $5.5 billion within one year, which also includes cellphones from their previous line. This number is based on 12 million of “THE HIPSTER” sold, at a retail of $229 with contract, the cost to produce of $182, and an estimated potential profit of $.56 billion (Dediu, 2012).
The sales goal will be measured by weekly sales updates from MM’s website, contract retailers and their websites.
The sales goal is possible because “THE HIPSTER” introduction will be accompanied with a great deal of advertising and promotion to build excitement, and will potentially appeal to multiple consumer markets.
MM’s market share percentage (Pearson Education Inc. , 2015):
Based on MM’s current market share of 5 percent, the goal is to achieve a 10 percent market share within one year, with any percentage over 10 a plus.
Since market share is measured in dollar sales, MM’s new product line and higher price point structure will enable MM to obtain a higher market share with fewer unit sales than before. Since their previous lower price structure required more unit sales to obtain the same goal, this places less pressure on MM to perform to their new standard.
The market share goal is possible because “THE HIPSTER” will be accompanied with a great deal of advertising and promotion to build excitement, and will potentially appeal to multiple consumer markets.
MM’s customer base (Pearson Education Inc. , 2015):
Based on MM’s current customer based of 12 million, the goal is to achieve a customer base of 24 million within one year.
Their customer base will be measured by customer purchase information collected from the previous and new line.
This goal is possible because “THE HIPSTER” will appeal to multiple consumer markets, and only estimates conversion from 5 percent of the target demographic. If more than 5 percent of the target market purchase “THE HIPSTER”, this will increase the customer base, market share, and profits.
MM’s customer brand awareness percentage (Pearson Education Inc. , 2015):
Based on MM’s current customer brand awareness of 5 percent, the goal is to achieve 25 percent customer brand awareness within one year.
Brand awareness will be measured by mass surveys (using the likert scale from 1 to 10) in regards to consumer’s familiarity about MM’s products, the number of visitors to MM’s website, and the number of visitors who have viewed MM’s products on contract retailers websites.
The mission is to build curiosity and excitement about MM’s current and next big launch. With extensive advertising and distribution, this should be achievable.

3. MARKET RESEARCH USED Surveys performed Quantitative data used
Qualitative data used
Surveys performed:
The research team conducted a survey of 1000 mobile phone users, presented the concept for the smartphone design, and pre-teen and teenagers were the most responsive to the concept. As a result, pre-teens and teenagers became the profile for the target consumer market.
Once the target market was determined, the research team surveyed 1000 junior high and high school students (from several schools in various demographic neighborhoods), to determine how many own a cell phone, what they use their cellphone for, what applications they feel are necessary, and specifically what features they feel are essential in a cellphone.
Quantitative data used:
The quantitative data used for market research includes:
The only quantitative data used for market research included age and income statistics. In regards to cellphones, they are the only statistics that are relevant since cellphone sales knows no other boundaries
Income statistics of adult cellphone owners for 2014 clearly indicate 84 to 99 percent of all households in the U.S., from all income brackets own a cellphone (Cell Phone and Smartphone Ownership Demographics, 2015).
Cellphone ownership statistics for 2014 clearly indicate 75 to 99 percent of all adults in the U.S., from all age groups own a cellphone (Cell Phone and Smartphone Ownership Demographics, 2015).
Statistical data about teenagers clearly indicate more than 50 percent of teenagers own a cellphone, and 25 percent of them are smartphones (Hatter, 2015). The statistics are a clear indication of the growing teenage market segment.
Qualitative data used:
The qualitative data used for market research includes:
Information regarding what the target consumer uses the cellphone for, what specific features do for them, what applications do for them, and how having a cellphone makes them feel.
Parents primarily purchase their pre-teen and teenage children a cell phone for the security. They want to know their children are safe, that they can seek medical attention when the parent is not present, and both the parent and the child can contact each other (Hatter, 2015).
Teenagers use their smartphones to: listen to music, play online games, make dining arrangements, shopping, engage in social activities, access their favorite social media sites, and for accessing the Internet, which are all an integral part of their lives (Handron, 2015).

4. BRANDING STRATEGY Target market Smartphone attributes and benefits
Smartphone name and tagline
Advertising slogan and logo
Smartphone packaging
Brand positioning and tagline
The total branding package
Target market:
The target market for the “THE HIPSTER” is the family unit including pre-teens and teenagers (children ages 10 to 20), and their parents, but will also appeal to consumers age 20 to 24. The target income bracket includes the middle and upper middle class with incomes from $25,000 to $250,000 (Marquit, 2012).
Age and income are the only demographics that apply since communication never discriminates.
Pre-teens and teenagers use their cellphone to engage in on-line and in-person social activities. Their social activities are an integral part of their lives, and they consider the cellphone a big part of that (Hatter, 2015).
Parents purchase their children cellphones for the security of knowing they are safe, so they can seek medical attention if needed, and so the parent and child can contact each other (Hatter, 2015).
Smartphone attributes and benefits (N.A., 2015 and Handron, 2015):
To address the needs of pre-teens, teenagers and the parents, the smartphone must have certain feature. Those features include:
An easy to use touch screen with touch key pad for quick navigation, calling, and texting (NOT WHILE DRIVING).
Internet enabled with quality graphics to make searching the web for their favorite music, videos, shopping, games, social media sites, and topics and events of interest clear, vivid, and easily accessible. All this to enhance their social lives which is very important to them.
Built-in radio feature, and a headphone/microphone/speaker jack to provide convenient and hands free listening of their favorite music.
A 16 MP camera with optical image stabilization and zoom, a built in 32 GB memory, and a card slot expandable up to 128 GB. All this for taking crisp and clear pictures and video of the irreplaceable moments with friends and family. The fact is most photos today are taken with cellphones, making this feature a must have for everyone.
Parental control feature which enables parents to block inappropriate and unwelcomed websites, content and features easy. This feature makes parents feel comfortable knowing their children cannot access inappropriate information and images.
Built in phone finder which makes locating a missing, lost or stolen cellphone easy, and enables parents to find out where there children are. This feature reassures parents of their ability to keep track of their children ,minimizes the risk of someone stealing sensitive information and identity theft, and helps avoid the expense of purchasing another cellphone.
Provides 4 G LTE speed, Wi-Fi, and blue tooth capability make accessing all the features fast and convenient wherever they are, and enables hands free conversations.
Available in a variety of popular bright and trendy colors teenagers like including: black, cobalt, lime green, hot pink, lavender and powder blue.
Includes a one year manufacturer’s warranty, with an optional extended warranty for an additional charge, which makes for easy and convenient repair or replacement, and ensures one less headache for the child and parents.
Is made of 100 percent recycled, alternative, durable and sustainable materials, which means the smartphone is environmentally friendly, long lasting, and appealing to the environmentally concerned consumer. This feature enables the consumer to contribute to preserving the earths resources, and makes them part of the solution.
Smartphone name and tag line:
The name of the new smartphone is “THE HIPSTER”, and the phones tagline is “the smartphone for the young, hip, and trendy”. Since teenagers want to be the hip 25 year old, the new smartphone addresses all they desire in a smartphone, and does so using environmentally friendly and sustainable materials.
Advertising slogan and logo:
MM’s new advertising slogan is “Cellphones and accessories made with our commitment to preserving and protecting our natural resources for future generations”, and the new logo is (a cell phone wrapped with leaves), as shown on this screen.
Smartphone packaging:
The packaging of the new smartphone is a simple brown box, made of 100 percent recycled paper, with Mobile Manufacturing’s new advertising slogan and new logo both labeled on the box. Even the instruction manual is made from 100 percent recycled paper. The intention behind the packaging is to reinforce MM’s commitment to conservation, and preserving our natural resource and environment for future generations.
Brand positioning and tagline:
MM’ brand positioning will be “The environmentally friendly cellphone company”, which continues the stance of MM’s slogan and logo, and reinforces MM’s promise of using 100 percent recycled, alternative, and environmentally friendly materials in all our products and packaging.
The total branding package:
The intention and plan of the total branding package is to represent MM as the cellphone manufacture who cares about the environment, to increase the value, desirability, and differentiation from other brands, and increase the consumers brand awareness, perception and their desire to purchase the product line. The bigger picture encompasses increasing MM’s brand equity through MM’s revitalization and reinforcement of their mission, slogan, logo, and the consumers overall perception of MM as a cellphone manufacturer who cares about the environment, and is going the extra mile to achieve their mission.

5. PRODUCT PRICING The pricing structure Pricing strategy
Pricing position
Reasons for pricing strategy
The pricing structure:
The pricing structure is based on cost factors of a smartphone. “THE HIPSTER” costs $124 for materials, and $58 for R & D, labor and shipping, totaling $182 (Dediu, 2012).
Pricing strategy:
“THE HIPSTER” will sell for $499 unlocked to any plan, at Metro PCS for $399 with no contract, and at well-established retailers for $229 with a two year contract. Online pricing will be the same as contract retailer pricing.
The online price will be the same as well-established retailer pricing as to not undercut, and endanger the essential relationships established with MM’s contract retailers.
Pricing position:
“THE HIPSTER” and cellphones to follow are positioned just above the middle tier of cellphones, inline with brands like Samsung, and below the Apple IPhone, because they have the top slot. The plan is to elevate MM from a small low end cellphone manufacturer, to a real competitor of quality, durable, technologically current, and environmentally sustainable cellular products.
Reasons for pricing strategy:
Because the new MM line of cellphones is manufactured from 100 percent recycled, alternative, and sustainable materials, it represents a product that is a first of its kind. It also represents MM reestablishing them as an innovative, future forward, and environmentally friendly cellphone manufacturer that produces products of high quality and durability, and that can compete with some of the most well-known brands in the industry. With this goal in mind, MM should not price their products to represent inexpensive and discount cellphones. Since “THE HIPSTER” is specifically designed for the pre-teen, teenage, and parent market, but has upgraded features usually available on higher end cellphones, it will represent a lower price starting point for MM. These prices do not reflect seasonal promotions, or subsidies provided by the service provider, but does account for allowance discounts provided by MM.

6. PRODUCT DISTRIBUTION MM’s own website Benefits of use
Well-established retailers and their websites
Combined benefits
Online discount retailers
MM’s own website:
MM has established their own website which includes all pertinent information about the products, current prices and promotions, and enables the consumer to purchase the product online at retail store prices.
The purpose behind online pricing being the same as in-store pricing is to not undercut and endanger the essential relationships established retailers provide.
Benefits of use:
The use of MM’s website will provide consumers the opportunity to view and compare MM’s products to the competition, read full details about each product including features, current prices and promotions, so they can make an informed choice about the quality, price, and service provided by MM, will enable consumers to purchase “THE HIPSTER” online at retail store prices (activations material will be provided with the phone so the purchaser can activate and use the phone), and will provide them the list of retailers that carry MM’s products, and their locations.
MM’s website will be clearly labeled as a secure website, meaning customer information is encrypted, safe, and cannot be accessed by unauthorized or outside parties.
Additionally MM ensures all customer information is proprietary, and will not be shared, sold or distributed to outside parties.
Well-established retailers and their websites:
MM has established contracts and relationships with well-established retailers including: Best Buy, Target, Walmart, Sam’s Club, Verizon stores, T-Mobile stores, AT&T stores, Sprint stores, and Metro PCS stores, as well as selling “THE HIPSTER” on their websites.
Note: Contracts with established nationwide retailers will clearly define both MM’s and the retailers responsibilities and rights, will ensure MM provides all product, advertising and promotional materials to ensure retail employees understanding to sell the product, mission and goals, and will clarify all agreements regarding price structure, discounts and allowances, and fund transfers to MM’s accounts.
The use of well-established retailers will provide the consumer the opportunity to visit their local cellular retailer to physically handle the phone, to see what a good value it is for the price, and obtain introductory prices, service provider subsidies, and allowance discounts with the retailer. The consumer will also be able to visit major cellular retailer’s websites to view and purchase “THE HIPSTER”.
The use of retailers will also enable appropriate inventory levels and storage, and reduce MM’s warehouse inventory costs.
Combined benefits:
Since the purpose of MM’s distribution strategy is to provide the best placement, promotion, and price for the new smartphone “THE HIPSTER”, as well as expand MM’s consumer reach and generate revenue, it is important to utilize both avenues of distribution to provide the consumer multiple avenues to purchase MM’s products, establish and encourage long-term and prosperous relationships with well-established retailers, and to help MM achieve their desired goals and ensure their success.
Online discount retailers:
The use of online discount retailers like CheapPhones.com, Retailmenot.com, and others, as well as bid sites like EBay will only be of potential consideration when MM has a new line of cellphones with updated designs and technology, and wants to sell off older and outdated models. Until then, this avenue of distribution would only endanger MM’s essential relationships with their reputable and well established cellphone retailers, would give MM a low end, cheap, discount reputation, and reduce their profits and bottom line.

7. PROMOTIONAL STRATEGY Traditional media used and its application
Digital media used and its application
Cellphone turn in program
Traditional methods used (Marchesano, 2012):
MM will use a promotional mix of radio, magazines, newspapers, and billboard advertising. Television may be applied if the budget permits.
Reminder: The target consumer includes pre-teen, teenagers and their parents, but the product will also be appealing to consumers 20 to 24 years old. “THE HIPSTER” is designed to appeal to the teenagers desires to be the young, hip and trendy 25 year old.
How the methods will be applied:
Radio ads will be run on stations in major metropolitan areas that cater to the target consumers, will run frequently throughout the day, and will reinforce the message every time the listener hears it. The ads will feature teenagers engaging in conversation with their friends and family, with dialogue appropriate for the target consumer.
Magazines with a nationwide presence including: Teen Magazine, American girl, Sports Illustrated Kids, Boys Life, Parents Magazine, and Working Mother will be used to promote “THE HIPSTER”, explain the features and provide the names of retailers that carry the smartphone. Ads will features visuals of pre-teens, teenagers and parents using the phone to listen to their favorite music, accessing their favorite social media sites, conversing with friends and family, and arranging social engagements.
Billboards in high traffic areas of major metropolitan areas will be used to reinforce the message from radio and print media, and will direct the target consumer to their nearest major cellphone retailer, and MM’s website.
Newspapers with a high readership in major metropolitan areas will be used to promote “THE HIPSTER”, its features and competitive price, will provide the names of major cellphone retailers that carry the product in their area, and MM’s website.
If the budget allows for television advertising, commercial will be on key networks, and during key programs geared toward the target consumer. Networks including: The Disney Channel, Nickelodeon, ABC Family, The Cartoon Network, and Discovery Kids, to list a few.
The intention is to generate a great deal of excitement about the new smartphone release, make a big splash, and entice consumers to visit MM’s website and/or their local cellphone retailer to see, handle, and purchase the smartphone.
Digital media used (Marchesano, 2012):
MM will use a promotional mix that includes advertising banners, MM’s own website, , reputable contract retailers websites, and social media sites.
Advertising banners will be featured on popular websites and online lotto sites, will feature “THE HIPSTER” and will direct the viewer to MM’s website to view their full line of cellular products.
MM’s website will illustrate the entire product line, explain all the features, will enable the consumer to purchase the product, and will direct consumers to established retailers that carry the product so the consumer can see, handle, and potentially purchase the smartphone.
will be used to inform target and current customers about “THE HIPSTER”, explain the features, and direct consumers to MM’s website.
Reputable contract retailers websites will feature “THE HIPSTER”, explain the features, and provide the option to purchase online, as well as in their own stores.
Social media sites including: Facebook, Myspace and Twitter will direct consumers to MM’s website, and potentially entice the consumer to purchase online, or visit their local retailer to see and handle the smartphone, and entice them to purchase there.
Cellphone turn in program:
The cellphone turn in program allows customers to turn in their used, old, broken and obsolete cellphones for a credit towards their MM cellphone purchase. Flip phones will provide a $10 discount, and smartphones will receive a $20 discount off the purchase of one MM cellphone. There will be one cellphone turn in allowed per one MM cellphone purchase. This program will encourage customers to turn their old cellphones in to be recycled, which will help MM maintain their commitment to using recycled and sustainable materials, and will provide the customer an incentive to reduce clutter and contribute to the recycling effort.

8. OTHER PLAN OBJECTIVES Internal measures External measures
Customer measures
Internal measures (Pearson Education Inc., 2015):
Employee and staffing goals:
The goal is to have 100 percent compliance with all employees understanding MM’s new values and goals, and ensure their commitment to promoting MM and their new product line on and off the job.
The goals is to have 100 percent compliance of current and new staff being willing and ready to acquire the necessary training to be up to speed with the changes MM are going through, and the new product line concept and mission.
The goal and mission for MM is to ensure 100 percent access and resources to provide training and mentoring to ensure all employees have the tools to promote MM’s values and mission with consumers, vendors, and all stakeholders.
The goal is to have 100 percent compliance by ensuring MM has sufficient trained and committed employees to meet the new demands placed on the company, as well as the production demands expected by the new product line.
Note: Employee and staffing goals are actually immediate requirements. The simple fact is employee training and cooperation is essential for attaining goals and must be accomplished immediately. Without immediate cooperation the mission and goals could be thrown off track or derailed, which could prove disastrous for MM’s survival and success.
Access to contractors and materials:
The goal and mission is to ensure MM has the all necessary contracts (100 percent access) with retailers to provide the sales channels to generate revenue and profits, and suppliers to provide sufficient recycled, alternative, and sustainable materials to ensure their commitment to a 100 percent sustainable product line.
Note: The fact is sales and material contractors are prerequisites for the project and must be secured during the development process. Without the necessary sales contractors and suppliers MM would not be able to sell their products or make good on their promise, the project would be on hold buying the competition time to steal those resources from under MM, and potentially disable the project from moving forward.
External measures (Pearson Education Inc., 2015):
MM’s relative price structure compared to the competition.
This measure requires MM to price “THE HIPSTER” competitively with other products, but also price it to differentiate it from the competitions. With “THE HIPSTER” being constructed from 100 percent recycled, alternative and sustainable materials, it is priced to address the environmentally concerned consumer that sees the value and quality “THE HIPSTER” encompasses.
Number of customer complaints.
The goal here is to achieve (0) no customer complaints within one year, but if complaints arise about the product or service provided, then use those complaints to address the issues, and improve both the product and service to create a competitive edge so necessary in today’s market place.
Customer complaints will be measured directly from complaints reported to contract retailers and their websites, MM’s website, and those submitted by the postage paid customer survey provided at purchase.
Customer measures (Pearson Education Inc., 2015):
Percentage of new customers to average number of customers.
The goal is to achieve a 1 to 1 ratio, one new customers for every current customer within one year. Obtaining a 1 to 1 ratio will help ensure MM’s existence and their competitive success. Any ration above 1 to 1 is a plus, and will only improve MM’s chances of success.
Percentage of lost customers to average number of customers.
The goals is to achieve (0) no lost customers within one year, but with new products on the market every day, a loss of 1 for every 2 gained will be sustainable.
Percentage of win-back customers to average number of customers.
The goals is to achieve a 75 percent win back of the lost customer base within one year, to help ensure MM’s survival and success.
Percentage of customer satisfaction at various levels.
The goals is to achieve 100 percent customer satisfaction within one year, but if issues arise about the product or service we provide, we will use the reasons for their dissatisfaction to improve the product and/or service, all to achieve the desired 100 percent satisfaction, and create the competitive edge MM needs to be competitive.
Customer satisfaction will be measured by postage paid surveys (using the likert scale from 1 to 10) provided at the time of purchase that have been submitted to MM, and surveys (using the likert scale from 1 to 10) to those same customers.
Percentage of customer who would repurchase an MM product.
The goal is to achieve a 100 percent intent to repurchase within one year. With this goal in mind, MM must diligently address the customers wants and expected service to achieve this goal.
This goal will be measured by postage paid customer surveys (using the likert scale from 1 to 10) provided at the time of purchase that have been submitted to MM, and by surveys (using the likert scale from 1 to 10) to those same customers.
Percentage of customers who prefer the MM brand.
The goal is to achieve a customer preference of 20 percent within one year. This figure is a start, once MM launches its entire new line of cellphones, the goal is to increase this to 30 percent. With a 30 percent brand preference, MM will be on its way to becoming the competitive giant they are striving to achieve.
Note:
MM’s new product goals may seem a little ambitious at first glance, but for MM to succeed at reinventing itself, and reestablishing them as a manufacturer of quality, durable, and environmentally sustainable cellular products requires ambition, and faith in the plan. It is no secret the competition is ambitious or they would no have achieved their level of success, so MM should be just as ambitious. Since it is up to MM to take the lead in redefining their brand, brand awareness and perception, ambitious goals are a necessary part of that plan.

9. CONTINGENCY PLAN Product contingency plan Price contingency plan
Promotion contingency plan
Place contingency plan
Confidence coaching
Contingency plans (Pearson Education Inc., 2015):
All well planned marketing strategies require contingency plans to adjust the 4 P’s (Product, Price, Promotion and Place), and address shortcomings in set goals, in the event things do not go as planned. The following are the four contingency plans.
Product contingency plan (Pearson Education Inc., 2015):
For product configuration, if design and/or technology are an issue, MM will provide the enhancements and distribute the changes as “THE HIPSTER 2”. If color choices are an issue, MM will add the additional desired colors to the selection in a prompt and timely manner, ensure stock levels at MM’s distribution center, and ensure quick shipment to our contracted retailers.
Price contingency plan (Pearson Education Inc., 2015):
For price configuration, the price is set based on its 100 percent environmentally friendly approach, and is compatible to similar smartphones on the market. In this case a price reduction will give the consumer the impression it is of low quality, or MM is desperate, neither of which are true. The best approach here would be to reinforce the quality, durability, and environmentally friendly construction. If necessary, MM will run seasonal and holiday promotions to invigorate sales.
Promotion contingency plan (Pearson Education Inc., 2015):
For promotion configuration, MM is using a combination of media including: advertising banners, MM’s own website, , reputable retailers websites, and social media sites, as well as radio, magazine, newspaper, and billboard advertising. Television advertising will be applied if the budget allows. If there is an issue with advertising effectiveness, MM will determine where advertising is strongest and maintain or increase the use of that media, and reduce or eliminate the least effective media. For example, if billboards are proving ineffective, but magazine advertising is strong, MM will eliminate billboard advertising and maintain or increase magazine advertising.
Place configuration plan (Pearson Education Inc., 2015):
For place configuration, MM is using a combination of MM’s own website, contracted retailers websites, and well establish retailers including: Best Buy, Walmart, Target, Sam’s Club, Verizon stores, T-Mobile stores, AT&T stores, Sprint stores, and Metro PCS stores. If MM’s website is underperforming, MM will increase advertising to the website, as well the contracted retailers stores, since internet advertising is far more affordable. If a contracted retailer is underperforming, MM will determine which branch retailer is underperforming, determine if product education is necessary, educate that retailer about MM’s product and mission, and ensure all necessary advertising and promotional material are provided. If education and promotional materials are not the issue, then MM will reduce that branches inventory, and increase the shipments to retailers that are performing properly.
Confidence coaching:
To help Michelle Dietrich feel more comfortable with the marketing plan the following suggestions should provide her the necessary confidence in the program:
Every CEO must understand that introducing a new product requires ambition, courage, and the ability to take on risk. There is no doubt Michelle has these qualities or she would have never achieved her current level of success.
For MM to design a new line of cellphones to compete in the current cellular landscape requires the same risk Michelle took when starting the company. The difference now is the new line will provide MM the ability to compete with larger competition, and will only improve MM’s consumer perception, and increase MM’s brand awareness as a producer of quality, durable, and environmentally sustainable cellphones and accessories.
The new cellphone and packaging being manufactured from 100 percent recycled, alternative and sustainable materials, and produced in the U.S. represent the start of a line of cellular products that no other company is undertaking to this level. This is a step into the future to be proud of, raises the bar for cellular product manufacturing, and creates the benchmark for all other cellphone manufacturers to follow.

10. ADDRESSING ALTERNATIVES
Alternate product strategy
Alternate pricing strategy
Alternate promotion strategy
Alternate place strategy
Why not market overseas?
Product:
Alternate product strategy:
There are people who would recommend designing a cellphone targeting a larger consumer market, with deeper pockets, to launch MM’s new mission and goals, and improve MM’s chances of success.
Reasoning for not:
Pre-teen and teenagers were the most responsive to the concept, making them the appropriate target market for the new smartphone.
In addition, “THE HIPSTER” is the first of many new products for MM to introduce to the marketplace, and will be the first to personify and drive MM’s new plan and strategy.
With that said, there will be a series of cellphones designed and developed to address other target consumers including: the 25 to 45 year old male, the 25 to 45 year old female, the business professional/executive who represents success at the top of the corporate ladder, the wealthy who have generous financial resources and want to present themselves in that manner, and retirees 65 and older.
The compromise:
Start with “THE HIPSTER” to reestablish MM’s updated goals and plan representing MM as a manufacturer of quality, durable, technologically current, and environmentally friendly cellphone manufacturer.
Once “THE HIPSTER” launches, and sales build generating the necessary revenues and profits, then MM will begin the launch of the remainder or the series of new cellphones, in the process address the remaining consumer markets, generate more revenues and profits, enhance MM’s image and brand presence, and the consumer’s perception and brand awareness.
Price:
Alternate pricing strategy:
There are people who would prefer to price “THE HIPSTER” lower at $399 unlocked to any plan, at Metro PCS for $299 with no contract, and at well-established retailers for $199, which is the price structure of most compatible smartphones. All this to make the new smartphone more competitive, fit in with the majority of smartphones, and provide the same profit margins as other smartphones.
In addition, they may recommend offering “THE HIPSTER” on MM’s website at a reduced price, since the website overhead is lower than their contract retailers.
Since “THE HIPSTER”, the packaging, and instructions manual are made from 100 percent recycled, alternative and sustainable materials, it represents a product that is different from other products on the market, and was not previously available.
Pricing “THE HIPSTER” AT $499 unlocked, at Metro PCS for $399 with no contract, and at well-established contract retailers for $229, sets the prices slightly higher than the competition, but lower than Apple as to not start a price war which MM cannot afford to do, and differentiates the smartphone from the rest of the pack because of its ecofriendly construction, and MM’s environmental policy.
Their plan will also lower MM’s profit margin.
With the purpose and plan of elevating MM from a low-end discount manufacturer, to a higher-end manufacturer of quality, durable and environmentally sustainable cellular products, this requires MM to price their products at a level competitive with the best yet practical for MM’s new image.
To offer a lower price on MM’s website will compromise and endanger the essential relationships with contract retailers, and potentially cause those retailers to drop MM’s product line. The fact is those retailers are located throughout the country, have a well established presence with consumers, and offer MM the best opportunity to drive the necessary sales, and produce the necessary profits for MM to survive and grow.
Price “THE HIPSTER” according to plan, and offer seasonal and holiday promotions, and allowance discount when appropriate. Since these techniques are common with most cellphone manufacturers, it would not be out of line for MM to do so as well.
When an updated design of “THE HIPSTER” comes out, then major discounts or price changes will be in order.
Real life example:
The fact is Samsung started out in the late 80’s as a low end manufacturer of home electronics, and their quality proved that. Today, they have a global presence representing quality, durability, the latest technology, and they have a large market share to show for it. The point is, any manufacturer can elevate their product and image with the right quality, durability, and technology, but must be willing to make it a goal and continually take action to make it happen.
Promotion:
Alternative promotion strategy:
There are people who would recommend a different promotional configuration and include: National newspapers like the Wall Street Journal, New York Times, USA Today, and so on; national magazines like The New Yorker, U.S. News and World Report, and so on; and television advertising.
National magazines like the Wall Street Journal, New York Times, and USA Today tend to represent subjects and advertising that address a readership interested in finance, news, and lifestyle information. “THE HIPSTER” requires newspapers that target consumers in specific major metropolitan areas. If the target consumer wants to read information regarding finance, lifestyle, and news, then they will buy and read newspapers specific to those topics.
Television advertising is an excellent media to address a national audience. The issue here is budget. Television is the most expensive media available, and MM must allocate the funding to use television. With this in mind, MM must be careful not to go over budget to protect their financial position, and protect the funding available for the determined necessary avenues of advertising.
National magazines and newspapers can be considered if they have a large target consumer readership, and the cost is reasonable for MM.
For smaller metropolitan regions including smaller cities and their surrounding areas, local television stations usually offer low cost commercial advertising to enable smaller national corporations and local companies to afford local area commercial advertising. It is not uncommon for a commercial to cost up to $500, which is inexpensive compared to using a national advertising agency that runs commercials on national networks, which can cost in the millions. Examples of small regional cities include Tallahassee Florida and Dothan Alabama, just to list a few.
Place:
Alternative place strategy:
There are people who would recommend additional avenues including: the use of an MM phone line for orders and questions, and the use of discount websites.
The creation and use of an MM phone line would increase MM’s overhead, increasing payroll and benefits costs, and reduce MM’s profit percentage, reducing the benefit of having an 800 phone line.
In addition, many consumers prefer to place orders online, and use modem to modem communication. Simply put, when the consumer orders online, their sensitive information is encrypted, ensuring the customer’s security from their credit card information being stolen. In addition, the only human contact at the warehouse is the person pulling the product from the shelf and processing the product for shipping. Basically, the more human contact involved in processing credit cards, the greater the chance of credit card fraud and identity theft.
The use of online discount retailers like CheapPhones.com, Retailmenot.com, and others, as well as bid sites like EBay is not recommended at this time. Their use will only endanger MM’s essential relationships with their reputable contracted retailers, will give MM a low end, cheap, discount reputation, and will undercut the profits of MM thus negating the purpose of the new product line.
The addition of an MM phone bank will be considered if the overhead costs can be kept low, and there are screening methods in place to ensure minimal or no risk of credit card fraud and identity theft.
Once MM has a new line of cellphones with updated designs and technology, the use us online discount stores could be used to sell off older and outdated models, but until then this avenue of distribution would be a risk not work taking.
Personal experience with credit card fraud:
When working for Dillards Department Store, a coworker used customer MIDD orders (merchandise inventory distribution and delivery) to pay her bills. Several employees found out what the coworker was doing, and everyone was angry and outraged. Essentially this coworker made a liar out of every salesperson by stealing their customers credit card numbers.
That same coworker also took another employees credit card out of their purse, and paid her own phone bill with it.
In addition, that same coworker tried to purchase Dillard’s product over the phone with the department managers Dillards card. The only reason the purchase did not go through was because the department manager placed a pass code barrier on the card, of which the employee did not know the pass code, and therefore the purchase could not be completed.
The coworker was terminated as a result of her actions, and charges were presses based on the nature of her actions.
This may not be the norm, but credit card fraud and identity theft are a huge issue today that happens all too often, the use of modem to modem purchasing is convenient and safer.
Why not market overseas?
The purpose of initially marketing “THE HIPSTER” in the U.S. is to reestablish MM as a reputable producer of quality, durable, and environmentally sustainable cellular products. Once the new smartphone takes hold, and generates positive revenue and profits for MM, the plan is to market overseas in China and India, who have large markets which are not saturated. Once the required testing and permits are secured, then MM will be selling their new cellphone line in China and India.
The European market is also a serious consideration, specifically the Eastern European market, and will provide a huge boost to MM’s global potential, and expansion. With
Elena Steokovich’s background as the top cell phone designer and engineer in Europe, and her experience in marketing cellphones in Easter Europe, entering the European market would be a no brainer.

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Handron, D. (2015). What Are Teenagers Interested In? Retrieved from everydaylife.globalpost.com/teenagers-interested-in html
Hatter, K. (2015). Why Do Teens Need Phones? Retrieved from everydaylife.globalpost.com/teens-need-phones-4794.html

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