Riphah International University

Submitted by: Sadaf Hayat

Submitted To: Sajjad Husain

Sap Id: 29931

Class: M.com

Project Name: Marketing Plan

Table Of Content

Company Introduction……………………………………………….
Executive Summary…………………………………………………..
Marketing Plan………………………………………………………..
Environmental Analysis………………………………………………
Competitive Analysis…………………………………………………
Customer Analysis……………………………………………………
SWOT Analysis………………………………………………………
Marketing Strategies……………………………………..
Marketing Segmentation………………………………...
Positioning Strategy……………………………………...
Marketing Mix…………………………………………...
Budgets……………………………………………………
Conclusion…………………………………………
Company Introduction:-

My company name is “Combo Laptop”

We are a Pc’s and servers manufacturers and sale its products. Our customers are
mainly wholesalers, retailers and traders.

Executive Summary

Combo is a multinational technology corporation that develops, manufactures, sells,

and supports personal computers and other computer-related products. Combo
employs more than 82,700 people worldwide. In its Past Combo grew during the 2008
and 2016 to become the largest seller of servers. As of 2016 it held the second spot in
computer-sales within the industry behind HP.

Every product level must develop a marketing plan for achieving its goals as one of
the most important outputs of the marketing process. There is a marketing plan for
Combo’s laptop has been well prepared.

Objectives:-

1. Whether to determine brand awareness within the target market can meet
financial budgets.
2. Are current customers satisfied with their products?
3. What features do macro and micro environment include? What are Combo’s
strengths against its weaknesses?

Marketing Plan:
Combo consumers are no age limit both of the male and female. There is a huge
market potential. Unique design is the key of the company to attract and spread
customers. Combo laptop belongs to on-line product. But as the increasing market
maturity, its products spread in physical market. The product meets consumers’ needs
and demands to reach a higher customer satisfaction. Due to the high involvement
with customers, advertisings and direct response promotion will always be the best
ways for Combo to promote its products. By those promotions, customers will be
explained the reason why Combo laptops will be their best choice. Furthermore,
Combo’s competitors become stronger and larger; Combo’s will not be beaten.
Compared with Combo’s sales, the costs of the whole company are relatively high.
Combo will find a proper way to redistribute and reduce the costs to achieve the final
goal, which is higher profit.
  Environmental Analysis
1- Demographic Environment

. Demographic elements are the most important elements of the macro-environment.

Population and growth rates are all included in the demographic environment. It is
well known that the world population is continuous growing every single second.
Nowadays, our world crowded by young people; the age of laptop users’ increase day
by day. It is clear that there will definitely huge market for Combo. Because laptops
can provide customer a greater satisfaction, so they can take the laptop with them in
every palace. The laptop is highly preferred by businessmen. Globalization brings
greater choice and the customers now can enjoy the advantages of using internet to get
information. Rather than mass marketing, Combo should focus on micro markets,
such as businessman, educators and students.

2- Economic Environment:

International market can bring great opportunity of business, but also brings the high
tariff. Especially the tariff of IT products is higher. Then it will not be that easy for
Combo to enter the other markets a part from UK. For IT market, the most of the
population of the world is young people, who are adapted to change in technology.
Combo needs this huge opportunity. Combo can manufacture its products with more
user friendly and close to fresh young people. Not only that, but also the purchasing
power is no more narrowed in working population due to the world’s economy is
recession . Therefore, Combo needs to adopt new strategies. On the other hand, credit
management of receivables is also affected by the change of world’s economy.
Combo changed of its core policies.

3- Social-Cultural Environment

More and more young population is now the key role in the IT product market. The
need of computers is growing in a very fast speed. By the technological revolution,
the world has changed from industrial age to information age. Computer has become a
personal kit. As the high speed developing technology of internet, people prefer to
online shop more than go to the physical retailers. Most of young people will
“Google” the rate of producers or customers’ comments on line before they decide
which one to buy. Due to “combo.com”. In addition, Combo supports projects and
medical seminars; they want to combine peoples to these works. Of course, Combo
makes all of these works for the sake of the humanity.
4- Technological Environment

It is exciting that the development of technological is at a high speed. Technology is

the soul of an industry. If there is a development in technology, Combo has also made
their product lines adapted. To keep the old technology cannot bring Combo a
constant continuing developing production. The old technology will be abandoned
very soon, especially in IT technology. One of the most important affects of
technological changes is Combo’s direct business model, which has led to the
increasing demand of Combo computers. Combo has perfect e-commerce capabilities,
which can be seen with the success of the combo.com

 Competitive Analysis

Combo’s major competitors are HP, Sony, Apple and Toshiba. The worldwide market
decreased 5.5% year-over-year to 65 million units in 2013. Apple’s Mac business
leveled out after strong growth last year. U.K. Mac shipments were down 2% year-
over-year, representing 6.4% of the market. But that is a significant deceleration after
the company grew U.K shipments about 34% year-over-year during a quarter of 2015.
Meanwhile, Combo, as its shipments fell 16.5% to 26.3% of the U.K. market. And net
book specialist Sony grew its shipments by 49.5% to 13.7% of the U.K. market, third
to HP and Combo. HP recently posted better financial results than Combo, but has
announced around 26,500 redundancies as part of its attempts to cut costs and
integrate the ￡7.1bn acquisition of EDS. Combo rival HP has also suffered in the
global recession.

Company 1Q 09 Market 1Q 08 market 1Q09-

1Q08

Shipments Share (%) Shipments Share (%) Growth

(%)

HP 4,228 27.7 3,804 24.8 11.1

Combo 3,996 26.2 4,775 31.2 -16.3

Sony 2,076 13.6 1,389 9.1 49.4

Apple 1,135 7.4 1,148 7.5 -1.1

Toshiba 1,005 6.6 840 5.5 19.6

 Other 2,837 18.6 3,371 22.0 -15.8

Figure shows the representation of HP, Combo and Apple on product and service.

Competitors Customer Product Product Technical Sales

Awareness Quality Availability Assistance force

HP E G E G G

Combo E F G G G

Apple E G F G F

Note: E=Excellent, G=Good, F=Fair, P=Poor

 Customer Analysis

Deciding to buy a laptop is not an easy decision for the customers, because the
consumer is highly involved in a purchase but sees little difference in brands. This is a
high involvement decision as the laptops are expensive, bought infrequently, and
risky. There are many different brands in the laptop market, but few significant
differences. So this is a dissonance-reducing buying behavior of the customers.
Therefore, the marketers have to ensure their products no defects, excellent service,
cheap spare parts and high performance and differentiate their competitors as well.
Combo is aware of these and its philosophy is to “improve and make better” rather
than “inventing all the time”. Now 75% of Combo’ sales revenue is from government
organizations and large businesses but only 5% comes from student market.

91% of university students own laptops;

24% own a Toshiba, followed by 22% who own HP, and 17% Combo;

61% think the appearance of Combo’s laptops is poor;

55% think the size is big;

57% think modification in the laptop appearance would enhance their decision to
buying a Combo laptop.

From the survey, we know that design is greatly important to students.

 SWOT Analysis

1- Strengths

Combo is the World’s largest PC marker. Profits for the 3 months to July 2010 were
in excess of $1.4 billion UK, representing a growth of around 28%. For the last couple
of years it has held its position as market leader. The Combo brand is one of the best
brands in the world.

Combo cuts out the retailer and supplies directly to the customers. It uses information
technology, and Customer Relationship Management approaches to capture data on its
loyal consumers. Components are made by suppliers, never by Combo. PCs are
assembled using relatively cheap labor. You can even keep track of your delivery by
contacting customer services. The finished goods are then dropped off with the
customer by courier. Combo has total command of the supply chain.

Combo allows consumers to fully customize their laptops. As the market growing
more educated, the demand of specific needs is increasing from customers for their
own target of laptops. In case that each customer can purchase directly from Combo
factory with their own customized laptop, Combo cut out the retailer as a distributor.

2- Weaknesses

Because Combo has a large range of products and components from many different
suppliers from various countries, the occasional recall is inevitable, which made
Combo embarrassed. In 2009 Combo had recalled 4.4 million laptop adapters because
they might overheat, leading to electric shocks or fires.

Combo is a computer maker rather than a computer manufacturer. It buys products

and components from a number of concentrated hi-tech manufacturers, which is a big
advantage in terms of business operations, allowing Combo to pay more attention on
marketing and logistics.

As well known that Combo has the ability to sense its target market, but Combo
cannot be always successful. The wrong market targeting in educational institution
segment can be seen as a fatal weakness of Combo. Figure evidence from Combo’s
total sales revenue says that only 5% was earned from educational institution segment.
There can be a strategy for focusing target market, but there should not be such a
strategy for neglecting a target market. Therefore it seems that it is not ready for
Combo being in a position to take advantage of educational institution segment yet.

3- Opportunities

As the general trend of globalization, integration of information, business and

technology, personal computers as the essential tool are being purchased and used
more than ever before. Due to the particular portable and movable advantages of
laptop, it is becoming more and more popular in IT market. The demand of laptop
grows much faster than that of desktop computers. Laptops can be a new growing
opportunity for Combo. The business can be targeted in all segments.

Another great and potential opportunity for Combo is existing customers. Young
people as one of the Combo’s customer groups is constantly growing, they are more
educated about personal computers and they know what they want after the first time
purchasing. Combo should take great care about those existing customers to keep their
loyalty for a constant continues business growing.

4- Threats

Competitors will always be the biggest threats from outside. The situation for Combo
is that the competition of PC market is existed in international market. All profitable
brands, new entrants to the market and retaliation from competitors can all be
Combo’s threats.

Combo is making PC, but not manufacturing PC. The most of Combo’s suppliers are
from Far East. The labor costs are relatively low than Western labors. And this is not a
big business secret; Combo’s competitors are all doing the same strategy. Combo may
share the PC components or similar one from the same or similar suppliers. In
addition, there is nothing to stop competitors offering the suppliers a better deal to cut
out others’ sourcing.

 Marketing Strategies

Marketing strategy is built on segmentation, targeting and positioning. Nowadays,

mass-marketing is not useful as it did past. Segmentation gains importance more and
more in marketers’ plans. Consumers differ greatly in values they bear on and their
needs vary their status, lifestyle, geography, occasion etc. Market segments can be
built up in many ways from income customers dispose to personality they carry.
One part of the target market of Combo for laptop is business segmentation including
large corporate, government, medium and small businesses. Another part is individual
segmentation including educational customers and home.

 Marketing Segmentation

Business segmentation, similar needs can be categorized into wireless networking,

security, performance, battery life and weight. For organizations in which computers
mainly on tables, performance and price lead firstly. Vestry series of Combo designed
on these lights of the purposes with affordable price while performing well. While
Vestry series places in desktop replacement category serving especially government
offices, Latitude series appear in ultraportable category in which prides are the most
expensive and lightest permitting long business travels with 6 hours of battery life.
The one that must being explained also is security need.

Individual segmentation, mainstream category including series of Studio and Inspired

are generally all in on products which are mobile and light but not as commercial as
Latitude series. Particularly, when we look at segment universities Studio series are
more suitable for them, because today many universities provide internet services on
wireless networking. And what a chance Studio series are the cheapest product
providing excellent wireless connection. University gamers also can enjoy wireless
networking with multiplayer tournaments. Students can easily transfer their data
among laptops and with powerful display properties they can walk on the board to
present their assignments. When we think today’s university freshmen as tomorrow’s
professional managers, this segment can also gain a good loyalty to Combo aiming in
the future with the experience of good service and satisfaction.

 Positioning Strategy

Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the mind of the target market. The overall goal is to extend the
product’s life and profitability. As one of the target markets is young people, Combo
and its major competitors: HP, Toshiba, Sony, IBM and Apple’ brand, quality and
design have been questioned on the survey that have been made among 24 young
people beginning ages from twenty to twenty-six.

The persons had been asked to evaluate laptop brands in terms of brand strength,
quality and design of the laptops. In brand strength category, among the 6 laptop
brands, Sony has taken the number on place while Toshiba has been second, Apple
third and HP and Combo have taken the fourth place. The industry analysis of serious
research organizations showed that truly Combo’s biggest competitor was HP. That’s
why more trust towards the survey has rise.
Toshiba has significant brand image in computer users. Not only because of its
advertisings also since it was a Japanese brand. Consumers mind especially in
electronics industry people have a strong relation with Japanese products and quality
so on brand.

If we look at results of the Apple, it is not difficult to realize that Apple’s design
rating exceeds its brand, explaining Apple’s positioning strategy emphasizes that its
laptop suits for arts and architecture projects.

Participants of the survey have complained that design of the IBM laptop could be
more attractive using metallic colors as other brands did.

While in brand strength Combo and Hp are same, HP had better design image than
Combo in users mind. Whether your product is more different than your competitors
if you cannot occupy enough places according to your product in their minds you are
under positioning yourself, like Combo does.

Sony entering laptop market afterwards, has won significantly good market share
against its competitors with the help of its strong brand image in the consumers mind.
Sony sells products mostly to consumer segment that relatively have big wallets and
demand all in one, entertainment devices.

 Marketing Mix

Combo is one of the leading consumer durables brand. The marketing mix of Combo
talks about the way in which Combo has improved to gain a competitive position.

 Price Strategy
Pricing strategies usually change as the product passes through its life cycle, because
there is constrains on the company’s freedom to price a product at different stage. The
main objective of Combo is to produce the low price and profitable PC for the
customers. Combo is undercutting competitors in price to rapidly gain market share.

IT market is a big market. There are a number of competitors are doing the different
price strategies. Apple and HP will be on the top if the list of Combo’s the main
competitors. Apple’s price strategy can be called “demand based pricing”, which is a
very competitive strategy. But Apple and Combo are sharing the different target
market. Apple is focusing on the designed customers. Due to the special customer
group they have, Apple production is committing to appearances and the operation
system. On the other hand, HP applies localization strategy on price. They have
regional or zone pricing. The acceptable price for different place is different. In
contrast, Combo uses the same price everywhere. Combo’s good brand image prestige
contributes this price strategy. Under the maturity stage of product life cycles, “the
same price everywhere” will become a standard price logo for Combo, customers feel
easier and more valuable to buy the Combo’s product. Same price strategy also gives
a more reliable PC brand image to customers.

 Place Strategy

Place is also known as channel, distribution, or intermediary. It is the mechanism

through which goods are moved from the manufacturer to the consumer.

Combo uses direct distribution channel, which is easier for customers buy products
from Combo directly, and even with more choices. At the meantime, it is very clear
that Combo can get more profits from a direct distribution channel model. Because of
the special technical service from direct distribution channel, customers can receive
services for what they need and the marketing functions are more efficient for
producers. Direct distribution channel can also lead to a result of a cheaper product
overall, which can be considered as the part of the strategy.

Combo has been able to affect the location strategy aspect of its marketing campaign.
As Combo’s products are always available at the nearest dealer’s customers develop
trust for the “local Combo” thereby achieving the objective of gaining their trust in
Combo products and services, and forming a large and diversified consumer base.

 Promotion Strategy

Another one of the 4 P’s is promotion. This includes all the tools available to the
marketer for ‘marketing communication’.

Combo in the past have not concentrated on extensive marketing campaigns but these
revolutionaries in 2004 when Combo changed its tactics by engaging in extensive
marketing campaigns. Combo markets its products primarily by advertising on
television and the Internet, advertising in a variety of print media, and mailing or
emailing a broad range of direct marketing publications, such as promotional
materials and customer newsletters. What will be the process for a customer to
purchase a laptop? The first thing the customers usually do is not to compare the
specifications for different types of laptops, but instead, they look at the price and the
brand. The reason why is because the price of laptop is usually high and the period of
using a laptop is usually very long. So in order to meet customers’ needs and wants,
high level of involvement has been considered in Combo’s promotion strategy. To
make products closer to consumers is the best marketing promotion. Therefore,
Combo has recently started promoting its products through retailers like Best Buy,
Staples, Wal-Mart, and Carrefour.

Budgets

The table below outlines the expense budget for the next year.

Marketing Expense Budget 2011 ($)

News paper 9,500

Handbills/Leaflets 1100

Magazines 1,000

Internet 2950

Billboard 3,635

Total marketing expenses 18,185

 Conclusion

Combo laptop is successful in global market as a result of best understanding of

customers’ needs and their direct sell business model. Combo well designs and
customizes products and services to the requirements of the organizations and
individuals. However, after situation analysis, there are two aspects that Combo
should improve. First, Combo should pay more attention on student market and
increase revenues related to students market. Second, Combo should modify the
appearance of its laptop. There is a trend Combo need to be aware: As customers
require lighter and thinner laptop, which is simplified version of laptop, will be
another profit point.