Lillebaelt Academy

Professional Higher Education

December 2015
MM247

AP DEGREE IN MARKETING MANAGEMENT

48hours Case Examination

Reginald Jide Ekeh: 250389-xxxx

Class:

MM247

Keystrokes:
Teachers:

Torben Stig Pedersen

Poul wraae

Table of Contents

pg

Introduction 2
Company overview 2
Goals 3
Procedures in Answering my
question.....................................................................................3
Question B.....4
Marketing plan.............................................................................................................4
Business Mission...........................................................................................................5
Marketing segmentation.............................................................................................5
Target market..............................................................................................................5
Market Audit...............................................................................................................6
Pest Analysis................................................................................................................7
Marketing Mix.............................................................................................................8
SWOT......................................................................................................................................8
Action Plan..............................................................................................................................9
Bibliographic..........................................................................................................................10

Introduction
In my assignment i will be using the approriate model to introduce the Oticon latest hearing
aid by designing the marketing plan and marketing mix focusing on my target group.
Moreover, i will also give a well argue suggestion of the sales organisation in mexico so as to
achieve my given goals.

Company Overview
Oticon is the second largest hearing aid manufacturing organisation in the world; Founded in
1904 by Hans Demant, And It is situated in Denmark outside the capital Copenhagen. The
company is one of the second largest hearing aid manufacturing organization in the world and
a consistent leader in the science and technology of hearing. Oticon is guided by the vision of
Hans Demant and his son William through its foundation that oversees the growth and
direction of both Oticon and its partner companies. 1 They produce a variety of different types
of hearing devices such as Acto and Intiga. They are a major player in the world of hearing
aids and with the sister corporation, Oticon Medical. The two companies have over 3,000
employees and sell hearing devices to people in over 100 countries with offices in 22 of those
countries
Oticon foundation charter, requires it to manage its business and direct charitable activities
that helps people with hearing loss. It also improves the science of a better hearing. Through
this unique, corporation-wide commitment to people and hearing, peoples first has become
the principle that guides their industry-leading research in hearing technology,
psychoacoustics and human behavior.
Oticon is particularly well known worldwide for their innovative management style known as
Spaghetti Organization introduced by Mr. Lars Kolind under his leadership in 1988-1998.
And also produces high quality hearing aids. The company is a subsidiary of the William
Demant Holding Group.
Oticon has branches in various countries, such as their production plant in Poland.

About Oticon New Device The Alta 2

Hearing aid are devices that develop sounds and cannot restore normal functioning of the ear.
It only improves the notion of sound in people with hearing deterioration.
Oticon's core technologies are designed to support the way the brain works. By preserving the
natural characteristic of the signal, their technologies assist the brain in the process of
organizing, selecting and following sounds, helping users to get easier access to speech and
what is going on around them.2
However, Oticon new hearing aid device called the Alta 2 device, is built on Oticon most
advanced technology ever and delivers Oticon' finest listening performance which has a new
breakthrough features. It is combined to give people enhanced sound quality and reduce the
effort required to listen and understand. Alta 2 offers people a better listening experience, on
1 http://www.oticonusa.com/about/about-oticon/inside-oticon/about-oticon.aspx
2 http://www.helpinhearing.co.uk/hearing-aids/hearing-aid-products/
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the terms of taking into account the way people live and enjoy life. Also, the qualities of
sounds they prefer.

Goal
Oticon mission and vision is to empower people in need of hearing surport, and has been in to
this for centuries and also wishes to continue with it, putting people first as their number one
priority.

Procedure in answering the questions.

As the marketing consultant at Oticon, my duty is to recommend the new approach to the
Mexican market.
To analyze my given tasks as the marketing consultant on the new service, I have to
distinguish what strategic decisions can be profitable for the organization. In order to find a
solution to the challenges, I will make an analysis by answering the following questions:
A. 25%How we can mark out the key macroeconomic factors that have influence on the
Mexican market for hearing aids, and why are they important?
B. 55%

Which necessary strategies, theories, and models are to be used on the

introduction of the product in the Mexican market?

C. 20%

What action plan do we find to be the future best practice in terms of

creating a sales organization in the Mexican market in the light of the
marketing mix/plan outlined in question B? In addition I will discuss
recruitment sources, training needs and/or leadership coaching for
employees, taking into account that there is no existing sales
organization in Mexico.

B. 55%

Which necessary strategies, theories, and models are to be used on the

introduction of the product in the Mexican market?

In answering question B; I will write a brief background on the hearing loss in Mexico and
also make a marketing plan, segmentation, target group, marketing audit and marketing mix,
using the appropriate theories, models to strategies and finalizing it with the S.W.O.T analysis
at the end.

Hearing loss in Mexico background

In the WHO source Mexico is part of Central Latin America with an estimated population of
123,799,215 as of 1st July 2014. The capital of Mexico City has a population of 8.851,000
and it is located in the centre of Mexico. Due to its central location and high population
density, Mexico City will be an ideal place to set up a subsidiary with a view to expand
business.
According to the WHO graphics on hearing loss (Mexico being part of the Latin America and
Caribbean figures) the Mexican population aged 65+ will be the main target group for
Oticons hearing aids.

Marketing plan
Business mission
We are focusing to expand our business to Mexico by entering the Mexican market with our
new hearing technology product ( Alta2). We hope to reach out to individuals with hearing
problems, helping them with our product.
We focus to meet the demand of a regular local resident customer base, as well as giving
services, we will establishs a relationship with BtC segments locally in Mexico City, and later
all over Mexico.
introducing the new hearing product(Alta2) this is a device that gives you enhanced sound
quality and reduce the effort required to listen and understand as the web site states.

Market segmentation
Market segmentation is the idenfication of individuals and organisations. In this segmentation
process we will get a clear view of the target group by dividing the diverse market into
smaller subs. This will help the company to decide on which target group to focus on.
Analyzing our market segmentation we are going to divide our market into two major groups,
B2B(business to business) and B2C(business to consumer). And in this assignment we will
only be focusing on the B2C segementation because we have chosen to reach our
customer(end user) ourself so as to serve them better
we are dealing with a new product with which will try to reach on individual customers,
moreover we will need to hire a part-time or full-time specialist such as the ENT(ear,nose and
throat doctor)that will attend to our customer and precribed hearing aids to them so they can
have the approprate device to their hearing problem. We will also need to build a good
relationship with other local ENT specialist.
We will need to foundout if they have a union( like the union in Denmark called DANSKE
RE-NSE-HALSLGERS ORGANISATION(doenho.dk)since that will enable us use
internal comminication of the union to reach all ENT specialist in Mexico.
Focusing on the B2C(business to customer) customers, we will have to open a retail shops or
clinic extensions in specific locations with easy assess. In which will help us to reach our
potential end user and also to establish consistent revenue base.

Target market segmentation

Since our segmentation is B2C, reaching the end users ourself through means of opening
shops or clinics in easy asses location. our main focus will be from the age of 65+ since our
research result shows that the 65+ aged people face more on hearing problem then the youths
and children as shown in our diagram earily on.
B2C segmentation is consist of three main categories which are:
Bahavioural, Profile and Psychographic.
Bahavioural segmentation: these are individuals with ultimate needs that seeks great benefit
from products and services been rendered to them which purchasing behaviour are sensitive.
Profile segementing: these consist of verious individuals with social class, educations, nice
income and are living just to have a better life with there families or looking forward to a
greater future.
Psychographic segementing: these are individual with personilities which purchasing
behaviour is link to their lifestyles.
But we will be focusing on all three segments because hearing loss does not chose on which
status you are fit in.
I think it is better to mainly focus on the given statistics with an high number of old people
facing the problem of hearing loss such as individuals both old and young, retired soilders
veteran organistions, hospitals, deaf programs etc. It is of no use targeting the regular Doctors
because they still refer them to specialist.
For B2B segmentation is consist of macro and micro-segmentation with focus on
organisation market. The Macro- segmentation focus on both companies and industries either
large, meduim and small companies both geographical locations. While the micro
segmentation focus on prime choice caterias like price, conveninces and reliablity.

Marketing Audit
This concern the marketing environment objective, strategies and activities with the view of
identifying key strategy issues, problem areas and opportunities. I will make an analysis on
the internal and external environment(value chain) of the organisation to be developed in
Mexico. Moreover i will also make marketing mx and sum up with the SWOT analysis. And
give the future action plan to be best practice.
Value chain: for Oticon; this tool will help the organisation to specific how valuable there
product or services will be for the Mexican market. It consist of the primary and secondary
activities and help an organisation have a good strategy on how to go about there company
activities.
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Inbound logistics: this is the inbound movement in an organisation. Since we are expending
to the mexican market for the frist time and with a new product, it is best we have a strong
internal strategy in the organisation, so we can be able to give our customers(end users) a
better services of our product. It will be best we open retails shops or clinics in an easy access
location with lots of parking spaces.
It will also be a good idea to employ professional experts, people who are already specialist
in the area of ear problems or hearing losses because they already have an idea of how to treat
such problem and can recomand our product to them since it service of better hearing.
We will also make sure we meet our marketing needs, making availbilty of our product to the
end users as at time needed.
Operation: this concern the process of converting input into output. With availbility of
professional expert in the organisation, We will ensure we have a quality service rended to
our customers in which they will be satisfy with our service.
It will also be best idea to have a weekly meeting with all the workers at each levels in the
organisation to facilicated information flow and knowledge sharing. Once the company
expands there should be bimonthly per meetings where all branch managers get together for
brain storming best praticeses in customer relation, sales technics,and long terms customer
retails strategies. With the purpose of building up a knowledge bank of best customer
strategies customer element.

Outbound logistics: This is the process related to the storage and movement of the final
product and relate information flow to the end of production line to the end users. We
(Oticon) will make sure our product gives better service to our customer(end users) with the
help of our specialist that will be attending to them.
Marketing and sales: this is the most important part in an organisation whereby we
strategies on how to communicate our product and service to the society at large to be known
and easy to reach. With the help of our marketing department,
Services: geting our product availble to our customers and our professional ready to attend to
them with better insigth since they are aready specialist in the area. We believe we will
service them to their satisfaction

Marketing Mix
The effectiveness of this marketing mix helps in developing the approprate strategy to begin
with and also i will be analysing on the 7Ps which consist of the Price, products, Promotion,
place people physical evidance and process.
Price: according to economist approach on pricing in Marketing(jobber) book. price of a
product is what a company gets back in the effort put in producing and marketing the
product. The quantity demand of a product detemine the price and as price drops so does
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demand rises, therefore since our product is a new product and also our organisation is a new
company in Mexico it is best we use the rapid skimming strategy on our pricing. Having a
high promotion of our product and also high price.
We only have little growth on the hearing loss on children and teenager so therefore our main
focus will be on the old people from age 65+ with a high data on hearing loss. Rapid
skimming stategy is the best approach on our organisation for our product and service
becauuse our product is of great value and most impotant to our target group.
Promotion: for proper promotion it will be better to use all promotional mix which consist
of advertising, personal selling, direct marketing, digital promotion, sales promotion, and
public relation. We will main focus on the media channel because our target group mostly
spend there time on social media, televisions, news papers and also posters, bill boards,
radios and direct marketing to individual will also be used. So as to make our product well
known in the society.
Products: putting the features advantage and benefit(FAB) of our new product into
consideration as diagram shown below, Alta2 hearing device is designed to give better service
to our end users with hearing problem with a clear and better improvement in with there
hearing.

Features

Advantages

Benefits

Alta2 comes with every one

of Oticon Brain hearing
technologies

Great hearing solution

Excellent sound quality in all

types of situations.

With different colour of your

choice

Portable a nd light on the

ears.

Easy to carry on your ear

without feeling you are
wearing anything on your
ears

Stylish

Small

Super device with great

result.

Place: we will make sure our services are easily reached to our end users, creating office
branches, clinics, on locations that can be fast to reached by our clients. and network with
other specailist.

S.W.O.T
Strength: Oticon is a well known organisation in the world with the second largest providers
of hearing care solution in the world and they have won several awards for corporate and
developmental achievements, they are also porpularly know for best hearing aids solution
Weakness: Oticon weakness might be from the price of the product because, i dont think
every one will be able to afford the device if too expensive or esle they have an insurance
policy that covers their health.
Opportunity: with the purpolation in mexico and how the increase of hearing loss to the old
people, they have an opportunity to have better sales of there product in the future and also it
will be best they invest into other portfolios and invation in the heath service to give their
customer full service on health concerning them.
Threat: Oticon faces the threat of imintation of the product from other investors or
entreprenuer who might find possiblity of improving their product to a improved product. But
if there product is be lincensed and copyright is issues to the organisation i believe they will
over see the threat.
C. 20%
What action plan do we find to be the future best practice in terms of creating a sales
organization in the Mexican market in the light of the marketing mix/plan outlined in question
B? In addition I will discuss recruitment sources, training needs and/or leadership coaching for
employees, taking into account that there is no existing sales organization in Mexico