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Marketing Plan!
MicroComp!
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Kayla Fernandez Corinne Furfine Taylor Gregory Olivia Khayat

Table of Contents

Executive Summary 2 Situation Analysis 3 SWOT Analysis ... 5 Marketing Goals and Objectives . 6 Marketing Strategies 7 Appendix .. 11

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Executive Summary Key Issues: During Quarters 1-4, MicroComp was not able to meet the needs of its target market segments (Workhorse and Traveler). The OfficeComp brand is marginally leading in the Workhorse segment, and the TravelComp holds the third in ad judgment scores. Upon analyzing MicroComp, creating an investment in our future scored below average and should require attention to maintain competitiveness with other companies. Within the Workhorse and Traveler segments, brand demand scores were high, yet not meeting the needs and expectations within the company. The low price of MicroComps products has thus far had the ability to gain market share from competitors; however, not meeting the target markets needs leaves room for brand improvement. As of Quarter 5, collaborators are limited to partners, salespeople hired for the target cities, and MicroComps investor. Decisions: To continually satisfy the markets and improve brands, investment in Research and Development is necessary. A decision has been made to update the features of both of MicroComps products and decrease the rebate amount from previous quarters. MicroComp will build an additional office in Toronto and offer lower prices than the current companies targeting the Traveler segment. With the updated brands, MicroComp will also release new and additional advertisements to better represent the brands, as well as advertise to the CostCutter segment due to their initial interest in the products. Concerns: Opportunities exist to transform concerns into benefits, of which include: a low market share within the Traveler segment, low brand judgment for OfficeComp and TravelComp, the brand image suffering from low price offers, and a low advertising frequency. Threats that can be used as opportunities to advance in the market include: low total market share, marginally receiving the highest market share for Workhorse, and low Traveler market share. Goals: MicroComp will take the opportunity to increase sales revenue for OfficeComp and TravelComp in Chicago by 40%, as well as 15% for the TravelComp in Warsaw by the end of Quarter 5. In Quarter 6, MicroComps brands will seek to become recommended by the Customer Union and achieve 35% market share for the Workhorse and 30% market share for the Traveler segment. 2
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Situation Analysis One of the main factors in our situation analysis is our customers, which primarily include our target markets, the Workhorse and Traveler segments. By meeting the main needs of the Workhorse segment, our primary target market maintains a 26% market share at the end of Quarter 4, leading the industry. Our secondary target market is the Traveler segment, in which we hold the third largest market share: 15% as of the end of Quarter 4. Since we did not properly target all of the Travelers needs, we did not secure the main market share of the Traveler segment. We have made decisions in Quarter 5 that should secure a larger share of the market. Although the CostCutter segment was not originally a target market for MicroComp, we have gained a 33% market share due to our low prices. Overall, we service a total of 15% of the total market, with the modifications to our TravelComp brand we will hope to increase this percentage in Quarter 5 (refer to Market Strategy). Furthermore, it is necessary to analyze our own company. The results of our cumulative balanced scorecard are important to consider when conducting a situation analysis of our company in addition to MicroComps market share data. Our company placed above average in certain cumulative balanced scorecard results after Quarter 4 (Appendix 2). However, one area of the balanced scorecard that requires attention is creating an investment in our future, as we are below average in that field. As a result, we have modified and increased the frequency of our advertisements for Quarter 5, and have also purchased more Research and Development (see Market Strategy). Both products in our target markets individually scored a 64 in their respective segments. Although these scores do not meet our expectations, they are still the highest scores overall in the Workhorse and Traveler segments. Furthermore, OfficeComp scored 71 for the CostCutter segment, although it is not in our target market. Currently, we have a brand demand of 424 in the Workhorse segment, 185 in the CostCutter segment, and 185 in the Travel segment. Our Workhorse segment scored highest in ad judgment, with a 63; however, our Travel segment scored 56 and requires modification (Appendix 4). As a result, our current ads were improved in Quarter 5. In order to increase market share for the Traveler segment, we decided to open a new office in Toronto which is expected to be successful based upon MicroComps strong price judgments for both our products in the CostCutter, Workhorse, and Traveler segments. Overall, we are positioned as the top company in the Workhorse segment and tied for third in the Traveler segment. By implementing these actions for our brand, profits should increase in both markets. 3
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Our competitors include the companies gaining market share within our target markets: InnoTech, Delta Tech, Gladstone Technology, Elemental Systems, and CompCo. As of Quarter 4, MicroComp serves the majority of the Workhorse market. In Quarter 5, updates to OfficeComp to better fit the consumers needs, will help us capture some of our competitors market share. MicroComps position in the market demonstrates similarities with competitor brands, such as Gladstone Technology. For example, the Gladius is comparable to our OfficeComp, with the monitor size as its differentiating factor. The distinction in our products comes from MicroComps stronger advertisements (63 vs 48), and lower pricing, maintaining a $200 price difference. However, our competitors are capturing more of the Traveler segment than MicroComp. In order to gain our competitors customers, we have further differentiated our OfficeComp and TravelComp in Quarter 5. Additionally, all five of our industry competitors are in competition with us in Chicago, whereas we remain the only company with an office in Warsaw (Appendix 7). Furthermore, the opening of a new office in Toronto, use of point of purchase displays, and low prices will help of successfully compete with our competitors in Quarter 5. In our overall marketplace context, MicroComp is positioned first in overall market share for our primary market segment, the Workhorse, and is tied for third in our second segment, Traveler. In terms of price judgment, MicroComp is highly placed for the Workhorse, Traveler, and Cost Cutter segments. Continually, our brand demand is highest in the Workhorse segment and second highest in the Traveler segment. Five competitors in Chicago, and none in Warsaw lead us with the largest work force (3) in Chicago for the Workhorse segment, as well as for the Traveler segment (2) (Appendix 7). Lastly, we ranked highest in ad copy judgment for our Workhorse segment, and second highest in our Traveler segment. Our collaborators include: our partners, salespeople, and investors. We have seven total sales people for the Americas and five sales people for the EMEA (Appendix 7). Additionally, we have one main investor, Corporate Headquarters. They have made one last invest, an additional 5 million dollars, at the start of Quarter 5 for us to invest in our growing business.

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SWOT Analysis Strengths! ! Above average Financial Performance, Marketing Effectiveness, and Creation of Wealth! ! Highest market share in Workhorse market (26%)! ! Lowest average retail prices for products! ! Brand Judgment! -64 OfficeComp, Workhorse, ! Chicago! -64 TravelComp, Traveler, ! Chicago! -64 TravelComp, Traveler, ! Warsaw! -71 OfficeComp, CostCutter, ! Warsaw (Appendix 3) ! Ad Copy Judgment! -63 OfficeComp, Workhorse, Chicago! -56 TravelComp, Traveler, Warsaw (Appendix 4)! ! Investing in R&D! Opportunities! ! 33% Market Share in Cost Cutter segment! - OfficeComp has 71 brand judgment in Chicago and 71 in Warsaw! (Appendix 3)! ! Open new office location in Toronto! - Third largest market demand/size for Traveler segment! Threats! ! Total Market Share! - Elemental 34%, Gladstone 16%, CompCo 15%! ! Workhorse Market Share! - Elemental 20%, CompCo 24%, Gladstone 20%! ! Traveler Market Share! - InnoTech 15%, Elemental 39%, Gladstone 20%! ! (Appendix 1)!
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Weaknesses! ! Lowest average retail prices! ! Low market share in Traveler segment! ! Brand Judgment! - 22 TravelComp, Workhorse, Chicago! (Appendix 3)! ! Frequency of Ads!

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MicroComp is going to pursue the opportunity of opening a third office location in Toronto. In terms of market demand and size for the Traveler segment, Toronto is listed third, which will provide us the chance to increase our overall presence. With above average brand judgment levels for our TravelComp brand in our current locations, the lowest prices found in the industry, and new investments in Research and Development (see Marketing Strategy) to better meet customer needs, we believe a Toronto office will be successful.! MicroComp is also considering heavily pursuing the Cost Cutter segment in Quarter 6 if investments made in Quarter 5 continue to have a positive impact in their segment. With a brand judgment of 71 for our OfficeComp brand in both of our current locations, and the low prices that MicroComp maintains, changes in advertising mediums used in Quarter 5 will confirm if a true relationship can be created between MicroComp and the Cost Cutter segment. ! Currently, with no significant advantage in market share for the Traveler segment, (Appendix 1) opening an office in Toronto with strong current brand judgment levels will help increase our Traveler market share as well as our overall market share compared to our closest competitors. Marketing Goals and Objectives Goals for Quarter 5: 1. Increase sales revenue for OfficeComp in Chicago by 25% from the Quarter 4 sales revenue. 2. Increase sales revenue for TravelComp in Warsaw by 15% from the Quarter 4 sales revenue. 3. Increase sales revenue for the TravelComp in Chicago by 15% from the Quarter 4 sales revenue. Goals for Quarter 6: 1. Increase MicroComps brand judgment to surpass 70 in order to become a recommended brand by the Customer Union for both the OfficeComp and the TravelComp (Appendix 3). 2. Achieve market share of 35%, which would be increased from 26%, for the Workhorse market in order to give MicroComp a more pronounced lead in this market. 3. Achieve market share of 30%, which would be increased from 15%, for the Traveler market in order for the TravelComp to become the second largest demand product in this market. Objectives for Quarter 5: 1. Invest in R&D to develop MicroComps products to better suit needs of the Workhorse and Traveler target markets, and therefore, increase the Market effectiveness score above 0.8. 6
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2. Decrease the rebates in Chicago and Warsaw in order to increase profits that counter the increased expenses from R&D, advertising, and additional sales offices. 3. Alter ad copies to attract and inform the Workhorse and Traveler markets of MicroComps new and improved OfficeComp Pro and TravelComp Pro brands to achieve ratings of 80 or higher for the Workhorse market and 70 or higher for the Traveler market. 4. Surpass competitors in the number of advertisements in Chicago to increase product awareness and sales in the Workhorse and Traveler markets. 5. Open an additional sales office in a city that does not have a steady market for Workhorse or Traveler, to focus on increasing sales for the TravelComp. Objectives for Quarter 6: 1. Hire salespeople for the new sales office to generate at least 35% Traveler market share in Toronto. 2. Implement our findings from our R&D into our products to better meet the needs of our consumers (see Marketing Strategy). 3. Add advertising to effectively market the improved products and achieve an Ad Judgment score of 95 for the updated OfficeComp and 90 for the updated TravelComp. Marketing Strategy Product MicroComp currently has two products that are being offered. Our company has a desktop that is geared towards the Workhorse market and then a laptop that is targeted for the Traveler market. Both of the products that our firm has created do not possess the minimum requirements necessary to fully appeal to the target markets. To try and correct this problem, our company will be investing in Research and Development to improve our brands. We are investing in the R&D of a slimmer laptop case and office upgrade. While our companys corporate office has recently loaned us $5 million, Research and Development is very expensive. Our firm sees the expenses of investing in R&D as the only downside because investing would hopefully mean that we will see an increase in sales as our improved attributes will be more appealing to our target markets.

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Our company currently possesses the greatest amount of market share for the Workhorse target market (26%) and we are 3rd in the Traveler segment (15%) (Appendix 1). Durable X is a desktop that is manufactured by CompCo and is also competing in the Workhorse segment and they are right behind us with 24% market share. Our OfficeComp brand is fairly comparable to Durable X except that our product does not have ultra-computing capacity, high speed power, an expanded keyboard or an auto backup system. Our brand offers business graphics and a higher resolution desktop screen which is why we believe we currently possess more of the market share than our competitor CompCo. In order to be more competitive within the Workhorse market we increased the hard drive of our OfficeComp brand to high capacity, made the computing power high speed, expanded the keyboard and mouse to make the computer easier to use and added an auto backup system. These features not only make us more competitive with DurableX but also add elements that our competitor does not offer (Appendix 5). Elemental Systems has gained a 39% market share of the Traveler market with their Aether Air laptop. The only difference between our laptop and Aether Air is that our competitors brand offers a higher computing power than our brand does. To make our TravelComp brand more appealing than Aether Air we increased the hard drive to ultra-capacity and expanded the keyboard and mouse to make the laptop easier to use for the Traveler segment (Appendix 5). We hope that by improving our brand and better promoting TravelComp, we can claim some of the market share that Elemental Systems currently possess. Price Currently, the brands offered by our firm are the lowest priced in the market (Appendix 6). We feel that this gives us a competitive advantage, but at the cost of leaving money on the table (see SWOT Analysis). Our low priced computers will attract more customers but may also give off the appearance that we are a low quality brand, which is not the case. We are negating the low quality appearance by adding extra features to our brands and through advertising. The prices of both our OfficeComp and TravelComp computers are seen as excellently priced based on the results of our market research in both of our target segments. This leads our firm to believe that we could raise our prices if we wanted to, but we feel that by increasing our prices we may lose customers. In an effort to try and gain market share, we are going to leave our prices as they are but reduce the rebates that we are currently offering. Our closest competitors 8
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do not offer rebates and they are selling quite well so we are going to try and reclaim some of the money that we have left on the table by reducing our rebates while still leaving our prices competitive. Place MicroComp currently has two office locations. We have one office in Chicago and one in Warsaw. The Chicago market is very competitive as every company in our industry has an office in this city (Appendix 7). To try and be competitive we have a large sales force and two service support representatives. Our firms other office is in Warsaw. We are the only company competing in this market. As a result we have increased our prices but do not want to increase them anymore for we might alienate many customers. Our sales force in Warsaw is smaller than our Chicago sales force as the market is not as competitive. In both of our office locations we have sales personnel to assists consumers from both the Workhorse market and Traveler market (Appendix 7). We have a larger sales force working in the Workhorse segment as this is our priority target market. In addition, our firm decided to open another office location in Toronto (see Situation Analysis). We selected this city because we already have market research for this region. Also, our advertisements are already being placed in Toronto since we are advertising in the Americas region. Our competitor, Elemental Systems, opened an office in Toronto and has been doing very well (Appendix 7). We feel that by opening an office in the same location as them we can capture more market share since our prices are lower than theirs. Furthermore, the Traveler segment is very strong in Toronto and that is our secondary target market. Our company believes that by opening another office we will be able to increase sales for our TravelComp brand which is designed for the Traveler segment. Promotion The advertising efforts put forth by MicroComp have not been as successful as we have hoped. While our ads for our Workhorse segment are being better received than our competitors ads, they still need improvement (Appendix 4). To better advertise our OfficeComp brand we are making the picture of the office setting larger as to let business professionals know that our computer is made specifically for them. We also are making our headline for our ads larger with 9
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an attention grabbing header and making the company name secondary. Our hope is that the headline will grab the attention of more consumers and draw them in to the ad and make them want to buy our product. Also, our company has decided to market in General Business Magazines as many of our target consumers read these editorials (Appendix 8). While this will cost more, financially we should benefit as our brand receives more exposure and eventually more business. Our advertising efforts for our TravelComp brand are not doing nearly as well as our competitor InnoTechs advertisements for InnoTravel (Appendix 4). We have decided to mimic their advertising techniques by placing more emphasis on an attention grabbing headlines and making the picture in the ad more up front. A larger picture of traveling business professionals should help grab the attention of our target segment. To better promote the TravelComp, we are going to be advertising in Trade Journals as many of the consumers in the Traveler segment read these publications (Appendix 8). In addition, we have gained popularity within the CostCutter target market since our prices are the lowest available. With this in mind we also decided to advertise in Sports Magazines because these publications are read heavily by the CostCutter segment and also by our target segments, Workhorse and Traveler (Appendix 8). This should improve our standing within the CostCutter segment now that we are advertising with them in mind. Our firm decided to test the effectiveness and success of advertising in magazines and trade publications in the Americas region first before we also advertised via these media vehicles in our Warsaw market. We want to make sure that we are seeing a return on our investment within our advertising vehicles before also investing in Warsaw where we are currently the only company. Furthermore, we increased our number of advertisements to increase brand awareness and brand recognition.
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Appendix Appendix 1- Market Share Graphs

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Appendix 2- Cumulative Balanced Score Card

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Appendix 3- Brand Judgment Graphs

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Appendix 4- Ad Copy Judgment Graphs!

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Appendix 5- Competitors Brands Graph

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Appendix 6- Competitors Pricing

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Appendix 7- Competitor Information

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Appendix 8- Media Preference Graph

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