Telephone Management System (TMS) Marketing Plan CS410 Orange Team 2008 TMS Marketing Table of Contents 1 Purpose................................................................................................................................................................1 2 Promotional Statement/Tagline ........................................................................................................................1 3 Product Description ...........................................................................................................................................1 4 Market Analysis .................................................................................................................................................1 5 Target Market ....................................................................................................................................................1 6 Sales Plan ............................................................................................................................................................1 7 Advertising Strategy ..........................................................................................................................................1 8 Cost To Produce .................................................................................................................................................2 9 Cost To Consumer .............................................................................................................................................2 10 Profit....................................................................................................................................................................2 11 Break Even Point ...............................................................................................................................................2 12 Marketing Objectives.........................................................................................................................................2 13 Customer Benefits ..............................................................................................................................................2 14 Customer Return on Investment ......................................................................................................................2 15 SWOT Analysis ..................................................................................................................................................3 Version 0.01 2008 i TMS Marketing 1 Purpose The purpose of this document is to provide a plan to identify the market and to define strategies in marketing our product. 2 Promotional Statement/Tagline "Telemarketers know better than to bother people with TMS." 3 Product Description The problem of unwanted phone calls plagues American society even with the national Do-NotCall registry. The Orange Group from Old Dominion University developed a wireless solution that stops unwanted calls from entering the customer’s home. The Phone Management System uses a local database and intelligent filtering to detect unwanted calls. A feature-cost analysis of the TMS and competitors in the call blocking market shows TMS is clearly the superior product. Specifically, the ability for one installation of the device to block all unwanted calls on a traditional PSTN phone line combined with a market leading feature set distinguishes the TMS from other similarly priced competition. 4 Market Analysis Nearly half (46%) of American adults receive unwanted phone calls. There are a number of products that compete in our market, for details see our competition matrix. 5 Target Market All American adults that receive unwanted phone calls are possible customers. 6 Sales Plan The plan is to get our product on shelves at major retailers including Wal-Mart, and Best Buy. 7 Advertising Strategy Leverage our familiar acronym to establish brand name recognition. Position our product as the highest quality, most effective product on the market. Acquire celebrity endorsements on television commercials. Version 0.01 2008 1 TMS Marketing 8 Cost To Produce Cost to us to produce the TMS is estimated at this stage to be approximately 70 dollars for the box with 1 control unit and 1 interception unit. 9 Cost To Consumer Approximate price point will be 100 dollars per unit. 10 Profit A small profit should be realized on each unit sold. 30 Dollars per unit sold. 11 Break Even Point Depends on what amount is manufactured, and how much is spent marketing them. 4,000 Wal-Marts http://answers.yahoo.com/question/index?qid=20070316075957AAyNFrc 1,200 Best Buys http://www.hoovers.com/best-buy/--ID__10209--/free-co-factsheet.xhtml If we made 35,000 of the packages it would cost us approximately $2,450,000 which means we would have to sell approximately 33,000 packages to recoup our costs. Which would net us a profit of $215,000 Marketing will be a significant cost as creating brand recognition nationwide will be expensive. 12 Marketing Objectives Position ourselves as the highest quality phone call management solution on the market. Excel in value and features. 13 Customer Benefits Relief from unwanted phone calls. 14 Customer Return on Investment Our product is a Phone Management System. If the customer needs to manage their phone, then ours is the ultimate solution. In return for investing in our product, our customer will receive unparallel control over their phone. Version 0.01 2008 2 TMS Marketing 15 SWOT Analysis Strengths: Unsurpassed Feature Set One installation covers all phones on a line Competitive pricing Weaknesses: Slightly higher installation complexity than most competitors Opportunities: Upside is good. At our price point we believe our solution will be attractive to many of the millions of Americans that wish to take back control of their phone from telemarketers and other annoyances. Threats: Obsolescence Similar Features from Phone Service Providers See Risk Matrix for detailed analysis of threats. Version 0.01 2008 3