I.

Current Situation

A. Internal Analysis: HP INC.

1. Company Profile
HP INC, formerly Hewlett-Packard Company (HP),
incorporated on February 11, 1947, is a leading global
provider of products, technologies, software, solutions and
services to individual consumers, small- and medium-sized
businesses (SMBs) and large enterprises, including
customers in the government, health and education
sectors. The Company offers IT industry's broadest
portfolios of products and services that bring infrastructure,
software, and services through innovation to enable its
customers to create value and solve business problems.
The Company designs its solutions to provide foundation,
in the areas of security, cloud, mobility and big data, by
leveraging the breadth of its offerings and the strengths
and capabilities of its individual business units. The
Companys operations are organized into seven business
segments: Personal Systems; Printing; the Enterprise
Group (EG); Enterprise Services (ES); Software; HP
Financial Services (HPFS), and Corporate Investments.

Personal Systems
Personal Systems provides commercial PCs, consumer
PCs, workstations, thin client PCs, tablets, retail point-of-
sale (POS) systems, calculators and other related
accessories, software, support and services for the
commercial and consumer markets.

Printing
 Printing provides consumer and commercial printer
hardware, supplies, media, software and services, as well
as scanning devices. Printing is also focused on imaging
solutions in the commercial markets. These solutions range
from managed print services to areas such as industrial
applications, outdoor signage and the graphic arts
business.

Enterprise Group
The Companys Enterprise Group provides a broad
portfolio of enterprise technology infrastructure solutions for
a variety of operating environments that address a wide
range of customer challenges, including the need to
increase agility and accelerate innovation in order to drive
revenue, manage risk and lower costs.

The Companys Technology Services provides support

services and technology consulting, focused on cloud,
mobility and big data and provides IT organizations with
advice, design, implementation, migration and optimization
of EG's platforms: servers, storage, networking and
converged infrastructure.

Enterprise Services
The Companys Enterprise Services provides
technology consulting, outsourcing and support services
across infrastructure, applications and business process
domains. ES delivers to its clients by investments in
consulting and support professionals, infrastructure
technology, applications, standardized methodologies and
global supply and delivery. ES also creates opportunities to
sell additional hardware and software by offering solutions
that encompass both products and services.
Software
The Companys Software provides IT management,
application testing and delivery, information management,
big data analytics, security intelligence and risk
management solutions for businesses and enterprises of all
sizes. Its software offerings include licenses, support,
professional services and software-as-a-service (SaaS).
Application Delivery Management is part of HP's IT
management offerings, provides software that enables
organizations to deliver high performance applications by
automating and testing the processes required to ensure
the quality and scalability of desktop, web, mobile and
cloud-based applications.

HP Financial Services
HP Financial Services provides flexible investment
solutions, such as leasing, financing, utility programs and
asset management services, for customers to enable the
creation of unique technology deployment models and
acquisition of complete IT solutions, including hardware,
software and services from HP and others. HPFS partners
with customers globally to help build investment strategies
that enhance their business agility and support their
business transformation. HPFS offers a wide selection of
investment solution capabilities for large enterprise
customers and channel partners, along with an array of
financial options to SMBs, educational and governmental
entities.

Corporate Investments
Corporate Investments includes HP Labs. It also
includes certain cloud-related business incubation projects
among others. The Company competes with Lenovo Group
Limited, Dell Inc., Acer Inc., ASUSTeK Computer Inc.,
Apple Inc., Toshiba Corporation, Samsung Electronics Co.,
Ltd., Canon U.S.A., Inc., Lexmark International, Inc., Xerox
Corporation Ltd., Seiko Epson Corporation, The Ricoh
Company Ltd., Samsung and Brother Industries, Ltd.,
International Business Machines Corporation, EMC
Corporation, Cisco Systems, Inc., Oracle Corporation,
Fujitsu Limited, Inspur, Huawei Technologies Co. Ltd.,
NetApp, Inc., Hitachi Ltd., Juniper Networks, Inc., Arista
Networks, Inc., Extreme Networks, Inc., Brocade
Communications Systems, Inc., VMware, Microsoft, Google
Inc., Rackspace Inc., Amazon.com, Inc., IBM Global
Services, Computer Sciences Corporation, Accenture plc.,
Wipro Limited, Infosys Limited, Tata Consultancy Services
Ltd, CA Technologies, Inc., BMC Software, Inc., Adobe
Systems Inc., Open Text Corporation, Symantec
Corporation, Intel and IBM Global Financing.

2. Current Position of the Company/Brand in

the Market (Market Shares/
Sales Volume / Sales and Profit Trends)
 According to IDC, a market research company, just four companies

provide close to 90% of the printers, Multi-Function Devices (MFD) and

digital copiers in the global; HP, Cannon, Epson, Brother, and Samsung
Ratio Description The company

Gross profit margin Gross profit margin indicates the percentage HP Inc.'s gross profit margin deteriorated
of revenue available to cover operating and from 2012 to 2013 but then improved from
other expenditures. 2013 to 2014 exceeding 2012 level.

Operating profit A profitability ratio calculated as operating HP Inc.'s operating profit margin improved
margin income divided by revenue. from 2012 to 2013 and from 2013 to 2014.

Net profit margin An indicator of profitability, calculated as net HP Inc.'s net profit margin improved from
income divided by revenue. 2012 to 2013 but then slightly deteriorated
 from 2013 to 2014.

A profitability ratio HP Inc.'s ROE improved

ROE
calculated as net income from 2012 to 2013 and
divided by shareholders' from 2013 to 2014.
equity.

ROA A profitability ratio HP Inc.'s ROA improved

calculated as net income from 2012 to 2013 and
divided by total assets. from 2013 to 2014.
 3. Company/Brand Strengths and Weaknesses Analysis

Strengths
Strengths Weaknesses
1. Strong presence in China. The
1. Strong presence in China 1.Poor competency in economy of China has been growing

2.Brand reputation acquisitions at a steady more than 8% rate every

year. The growing economy
3.Diversified product portfolio 2.29% of income comes from
accelerates corporate spending and
personal systems division HP is well positioned to benefit from

3.Poor presence in tablet it. The company has increased its

investments in the market and
market
expanded product and service
offerings, especially its enterprise
Opportunities Threats
business and services divisions.
1.Expand services and enterprise
solutions divisions 1.Retaliation by incumbent firms These divisions offer the most
in software services
profitable HPs products, including
2.Increasing demand of cloud
based services 2.Slowing growth rate of the PC cloud computing services and
market
3.Acquisition of more technology
related patents 3.Rapid technological change
 enterprise solutions. Strategic expansion into Chinese market may result in a strong competitive advantage for
the business in the near future.

2. Brand reputation. HP is the worlds leading PC vendor with more than 15% market share. It is also one of the
major providers of service network products. The company has a significant market reach all over the world in
nearly all of the markets it operates. This has resulted in a strong brand reputation. According to Inter-brand, HPs
brand was value at $26 billion in 2012 and was among top 15 most valuable brands in the world.

3. Diversified product portfolio. Although slowly, HP has been diversifying its product portfolio and moving from its
main Personal Systems business to more profitable and lucrative enterprise solutions and services business. The
company now offers thousands of different products and services. In addition, its product portfolio is more
diversified than competitors portfolios, which make HP less susceptible to changes in the different industries and
markets.

Weaknesses

1. Poor competency in acquisitions. Over the last 10 years, HP has acquired at least 50 technology companies.
Some of the acquisitions added new skills, products and increased business revenues but the rest acquisitions
 were either of no value or even detrimental to the company. Most notably, Autonomy Corporation, which was
acquired for $11 billion and was a complete failure. HP bought a highly overvalued company and had to write
down $8.8 billion value of its books. This acquisition has revealed how incompetent HP was when acquiring the
company. No other HP competitor has experienced such an acquisition failure in the decade.

2. 29% of income comes from personal systems division. HP still heavily depends on sales from PC, especially
laptops. The market for PC has matured and is expected to grow very slowly or even decline after a few years.
Combining this with ever decreasing margins on computer hardware products, HPs largest Personal Systems
division becomes a weakness for the company.

3. Poor presence in the tablet market. The tablet market has been growing and is expected to grow in double
digits over the next few years. Most of other technology businesses have successfully introduced their products in
the tablet market and have enjoyed huge income and profit growth. Although HP had its TouchPad tablet model
and later introduced its Slate series tablets into the market, the company has failed to offer an attractive product
for consumers. As a result, the business experiences losses and is unable to compete successfully in this
lucrative market with companies like Samsung and Apple.

Opportunities
 1. Expand services and enterprise solutions divisions. HP provides various services (cloud, security and
infrastructure) and enterprise solutions (servers, networking and storage), which are the most profitable HPs
businesses at the moment. The company should focus on growing these divisions as they promise better growth
opportunities and higher profit margins.

2. Increasing demand of cloud based services. The cloud computing market is expected to grow by an average of
22% each year from 2011 to 2020. By 2020, the market is expected to reach $240 billion value. Currently, HP is
offering many services related with cloud computing and is well positioned to benefit from the growing market.

3. Acquisition of more technology related patents. R&D is expensive to engage in and the best alternative to that
is to acquire patents from other companies in the market. HP has a lot of free cash that could be used to acquire
companies holding the necessary technology patents. With strengthened patent portfolio, HP would be able to
compete with the rival firms in the table market.

Threats

1. Retaliation by incumbent firms in software services. Profit margins are high in the market of enterprise
software solutions and HP might face stronger than expected competition from incumbent firms such as Oracle or
IBM.

2. Slowing growth rate of the laptop market. Growth rate of the computer market is slowing down and in the near
future the markets will become saturated. The company faces intense competition from rivals like Acers, Apple,
 Dell, Lenovo or Samsung in terms of price, quality, brand, technology, distribution channels and range of products.
Besides, customer needs are changing and now customers are keener to buy tablets or smartphones than new
laptops. Therefore, it will prove hard for HP to compete in personal computers market and continue to grow its
market share.

3. Rapid technological change. The serious threat that HP and the other tech companies are facing is a rapid
technological change. Companies are under the pressure to release the new products faster and faster. The one
that cannot keep up with the competition soon fails. This is especially threatening for HP as the company is already
behind its rivals in terms of quality, price and technological advancement of some of the products.

4. Brand Consumer Profile

a. Identified Market Segments

HP Inc. segmented its market by Psychographic variables such as social class, which includes middle
to upper class and lifestyle and personality, those who are technology dependent, techy-savvy, and brand
and quality conscious.

b. Market Needs Being Addressed

The need for a high quality inkjets and toners, laptop, netbooks, desktop, scanner and printers with
sophisticated design that meets exceptional performance at an affordable cost without compromising its life
span.
c. Buying Patterns
 Complex buying behavior is the buying pattern of the target market, characterized by high-consumer
involvement in purchase and significant perceived differences among brands. HP offers gadgets that are
infrequently or risky to purchase because it is expensive, which typically makes the target market to learn
about each product category of the HP through a learning process, first developing beliefs about the
product, then attitudes and then making a thoughtful purchase.

d. Usage Habits

5. Present Marketing Strategy

a. Target Market
HP Inc. provides products, technologies, software, solutions and services to individual consumers
(student, teacher, professional), small- and medium-sized businesses (SMBs) and large enterprises,
including customers in the government, health and education sectors.
Specifically, HP is rolling out new printers and its first mobile scanner targeted at the small business
market, with new features intended to simplify the out-of-box experience and reduce customer costs,
including the purchase price and power consumption, and the primary target customer market for the HP
 OfficeJet Pro and OfficeJet Pro X is Small and medium business which is designed to meet the demanding
and unique needs of small and medium sized businesses.

b. Current Brand Positioning (Points-of-Parity (POP) and Points-of-Differentiation (POD))

HP Inc. together with their direct and indirect competitors, manufacture gadgets such as laptops,
desktops, mobile phones, scanners and printers of different models which are uniquely designed for the
consumers need. HP Inc. is the worlds largest PC manufacturer. Its what sets them apart from their
competitors and is encapsulated in their value proposition.

c. Competitive Strategies Employed

At HP, sustainability is their competitive advantage that extends beyond global citizenship. It supports the
business strategies and helps them meet their customers needs, engage and develop their people, and
deliver profitable growth and business stability over the long-term. In support of this approach, they engineer
and deliver ground-breaking solutions with sustainability in mind. These solutions help them strengthen their
communities; minimize the environmental footprint of our customers, operations, and supply chain; and act
with integrity and respect for human rights around the world. Their actions and investments ignite innovation
that creates a brighter future for everyone.

HP holds annual securities analyst meetings where they come up with new strategies for reaching global
markets and to allow the company to progress. They currently have a multi-year restructuring that is
designed to realign their cost structure and create investment capacity to drive innovation against their
 strategic priorities and strengthen marker leadership. The company has said that they expect their revenues
to grow in line with GDP, with operating profit growing faster revenues, industry-leading margins and
disciplined capital allocation by 2016. HP has a very powerful set of assets, a culture of engineering
innovation and a trusted brand and now they focus on bringing great assets together in order to deliver to
their customers. Hewlett-Packard has a specific plan for the company to reach global market which include
HP Enterprise Services, which means that they bring together their industry leading server, storage,
networking, management software and technology service that offers to deliver converged infrastructure
solutions for enterprise customers. With this strategy they expect to increase revenue and market share.
They were the first large company to announce this service and by 2015 they will represent 15 percent of
the global server market.

Their second strategy is foreign outsourcing, this means that they contract with foreign suppliers to
produce their products, usually at a fraction of the cost of domestic production. They depend on China and
Taiwan to produce some of their products.

d. Marketing Mix (4 or 7 Ps)

Product

Hewlett Packard provides outsourcing of business process, infrastructure technology, maintenance

and support of technology, support and development of applications, networking resources and products,
integration services and consulting services, soft wares, hardware, services and products related to printing
and imaging.

Hewlett-Packard is known for its excellent printers and scanners as well as for its digital cameras,
laptops, desktops and other IT products. The products are known to be reliable and hence the brand has a
good customer base.

In the year 2007, Hewlett-Packard launched Touch Smart PC with a display of touch screen and
later it introduced a PC that was a consumer tablet with touch screen facilities. In the year 2008, Hewlett
Packard brought in to the market a mini-notebook called HP2133Mini-Note PC. This was designed
especially for the education sector.

The company also produces ProLiant that is an affordable tower server for small size to medium size
work groups.

IPaq Glisten Smartphones is one of Hewlett Packards high profile products that have many features
like the ability to send emails, texts, photos and managing contact list.

Linksys WRT54G2 Wireless-G router is a home-networking product that enables internet

connections with high-speed.

Service packages including AMCs are available for interested customers by the company. The
products include printers, digital cameras, scanners and calculators.
Price

The pricing policy of Hewlett Packard is fair pricing as well as competitive pricing. The company takes
into account all the relevant factors related to costing, distribution, promotion, prices of adversaries and then
decides on a suitable selling price.

Hewlett Packard has been designing products that have features according to the tastes and desires
of the consumers. It first undertakes a thorough market research and estimates the amount that a consumer
is willing to pay for the commodity. Then it makes that product in that price frame to suit its personal needs
as well as the needs of the customers.

Hewlett Packard had launched an innovative utility pricing scheme called first-in-pay-per-use. In this
scheme, the company offered the customers to pay for only the time they have utilized the services.
However, over the long term this pricing strategy was shelved due to the tough competition in the IT
segment.

Place

Hewlett Packard has a well-placed distribution channel. It sells its products to the individual
customers and business enterprises, directly and indirectly.
 It has an online distribution method where the orders are placed either in the official website or in
other shopping websites. The official website of Hewlett Packard offers service such as partner locator that
is sorted by small business and large business and the products needed.

The company has hired retailers and technology vendors for supply of their products. Hewlett
Packard has its own exclusive outlets where it provides various products and services also. Trained and
well-mannered individuals are hired that deal with the customers directly and efficiently.

Hewlett Packard has many subsidiaries that are located in Geneva, Ontario, Singapore, Miami,
Tokyo, Victoria, Houston and Rivonia. Hewlett Packard operates a global program for the system integrators,
developers, software vendors that is called Developer and Solution Partner Program (DSPP). The
company has a direct link with its partners that include suppliers, logistic service providers and
manufacturers so that the network continues to run smoothly.

Promotion

Hewlett Packard has launched an initiative One Voice to promote its brand name and image
along with its various consumer electronics products and hardware products. The company has
taken the help of vehicles to flaunt and display its numerous products and services that comprises
the inclusion of a website, arranged by business application.
 Employees are encouraged to engage in topics such as servers, networking and storage. A
Trade- in Program is active where the consumer can make a trade of old product with new product
in lieu of discounts.

As promotional activities, some services within a period are provided free. Periodic discounts
on many products are announced as part of the companys strategy. Hewlett Packard has formed
many tie-ups and sponsorship deals with various companies.

It has sponsored the shirts of Premier League Club and also sponsored BMW Williams
Formula 1 team and later RenaultF1. It has also acquired the naming rights for the HP Pavilion at
the place San Jose.
III. Identified Market Opportunity
The need for a gadget that would give a conducive and easy way of summarizing information from any source and
built-in storage device serves as one of the market opportunities in developing a wireless digital highlighter.

Another one is the large market share of HP Inc. It has the largest market share which is 40% in the printers,
multifunction devices and digital copiers in global. With this CooScan can improve its market share because it represents
the HPs brand. The target market of the CooScan is expected to increase by 14.60 % in 2016, 29.49 % in 2017 and
44.70 % in 2018, using 2015 target market as a base year. Thus increasing trend of target market will increase the
revenue of the product.

Another opportunity is the technological advancement (promotional outlets for customer awareness). Nowadays,
technological factor that is emerging is the digital technology. It enables immense amounts of information to be
compressed on small storage devices that can be easily preserved and transported. It initiated the biggest change in the
lives of people. It has gone so far that developments made its way to the innovations ranging from smart phones,
laptops, internet to software and applications. These improvements raise the level of expectation from the consumers
therefore the proposed product must adapt to change.

On the process of the development of digital technology, technologies such as OCR. and USB gain popularity in the
market. It is an opportunity for CooScan because it contains the Optical Character Recognition technology (OCR) and
Universal Serial Bus (USB) technology. OCR is the mechanical or electronic conversion of images of- typed, handwritten
or printed text into machine encoded text. New researches show that OCR continues to improve. Another is the Universal
Serial Bus (USB) technology which connects computers with peripherals, or input/ output devices. It serve as an
opportunity if the product adapt to the development of USB because it improves through time and offer better product
qualities to the customers thus, results to positive user experience. The customers are not left with what is available but
encourages them to try the new one.

IV. Proposed Target Market

The CooScan wireless digital highlighter is targeting high school to post graduates students belonging to middle and
upper class studying in the key cities in the Philippines. These consumers are easy going, have access to computers and
have awareness about technological and social trends. They have lot of paper works and study materials and need a
multi-purpose gadget that allows fast and easy transfer of data from the printed source directly to any electronic device,
play music and store data.

V. Financial and Marketing Goals/Objectives

a. Financial Objectives
To generate revenue of 259,221,527 by 2016.
Price: 1,699 x 152,573 = 259,221,527
b. Marketing Objectives
 To capture at least 5% (152,573 students) of the target market by 2016.
Target Market: 3,051,452 x 5% = 152,573 students

VI. Marketing Strategy

e. Marketing Strategy

The CooScan wants to perceive itself as an expert, at the same time professional, in providing convenience, ease,
and comfort to the people of the academic field especially in studying and learning aspects through the use of digital
technology. The company will target the individuals from high school to post-graduate education level who have been
studying in a traditional and old-style way and then introduce to them the new, modern, and high-tech way of studying
and learning.
To accomplish this objective, first, the product awareness should be broadcasted among the target customers
through the use of aggressive online advertising and direct marketing with the use of major social networking sites like
Facebook, Twitter, and Instagram, web-based email service like Gmail and Yahoo, and companys own website. The
company will also upload videos containing vital information and features about the products on YouTube and its website.
The marketing strategy that the company will be using is product development. The strategy involves continuous
product development and technological innovation of the companys products through customer feedbacks and
suggestions, introduction or innovation of new technology, and commitment towards societal welfare. In line with this
strategy, the company also commits itself in giving excellent customer service and continuously improving environment-
friendly methods and processes. The strategy aims to build long lasting relationship to the target customers
 The company will be using the combination of product differentiation and cost leadership as a competitive strategy. To
substantiate, the company will offer products that have unique features and speculations and selling prices that are
relatively low compared to those of the competitors.

f. Brand Positioning

i. Target Market

The target market is students in secondary to post graduate education level who study in the Philippines, belong
from the middle to upper class level, and have device(s) or gadget(s) like smartphone, tablet, and personal computer.

ii. Competitive Frame of Reference

The ConoScan is the only wireless and inkless digital highlighter that has multiple functionality like mobile scanner,
Universal Serial Bus storage, audio player, and Bluetooth.

iii. Points-of-Difference and Points-of-Parity

One of the ConoScans points-of-parity (POPs) is the Optical Character Recognition (OCR) technology which scans
symbols, characters, and graphics on printed materials (e.g. newspaper, textbooks, magazines) then retypes them in
gadgets like PCs. Other points-of-parity are the Barcode Recognition technology which provides data from barcoded
materials and Quick Response (QR) Code Reader technology which gives information about the item where QR code is
attached. The compatibility with Windows and Android editing applications like Microsoft Word, Excel, Notepad, and the
USB technology are some same features that other competitors also have. The wireless capability is another point of
parity.
One of the Wireless Digital Highlighters point-of-differences (PODs) is the built-in Audio Player and Speaker that
plays MP3 and other audio files. In connection with it, the product has 3.5 mm Audio Jack or Headset Port in case of
studying in silent zones or some other purposes. It also has Bluetooth v4.0 that transfers data at an overwhelming speed
but consumes little energy1. Another unique feature of the product is its compatibility with iOS gadgets like iPhone and
Mac. The ConoScan is also a proudly Filipino-made product. It does not necessarily need a transformer since it is Filipino-
made and other abroad-made digital highlighters may need a transformer since the number of volts varies from each
country. It has also a cheaper selling price and incurs less add-on costs like freight or shipping and taxes. It is available
nationwide in the Philippines. It is also located to a well-known local marketing intermediaries in the Philippines. It has
also a three-month product warranty and warranty or return process is simpler and takes shorter time compared to that of
the competitors. Its parts (e.g. battery, charger) are readily available, obtainable and accessible compared when customer
bought abroad. The delivery time of the product is also shorter compared when customers buy abroad.

iv. Value Proposition

1 "Wibree forum merges with Bluetooth SIG" (PDF) (Press release). Nokia. 12 June 2007. Retrieved 4 February
2008.
 v. Support or Reason to Believe

The ConoScan uses Optical Character Recognition (OCR) technology which scans symbols, characters, and
graphics on printed materials (e.g. newspapers, textbooks, magazines). It has also an audio player for a conducive way of
summarizing information and Universal Serial Bus (USB) technology for storing purposes.

To sum the above mentioned, for the students, from high school to graduate school (target) wireless multi-purpose
digital highlighter is the only gadget (frame of reference) that would give a conducive and easy way of summarizing
information from any source with built-in storage device (compelling benefit) for it is an inkless highlighter that uses
Optical Character Recognition (OCR) technology which scans symbols, characters, and graphics on printed materials
(e.g. newspapers, textbooks, magazines), it has also an audio player for a conducive way of summarizing information
and Universal Serial Bus (USB) technology for storing purposes (reason to believe)

g. Marketing Mix

Product Strategy

1. Product objective
 The ConoScans product objective is to provide an affordable and efficient digital highlighter that gives a conducive
and easy way of summarizing information from any printed source, to ease the life of Filipino students, who have a lot of
paperwork, by providing fast and easy transfer and transformation of data from any printed source directly to any
electronic device, at the same time, play music and store electronic data, to save time and effort in retyping information
from printed sources to computers and smartphones, and to provide a product with multiple functions.

2. Product Strategy

a.Components of the Market Offering

ConoScan is an inkless highlighter that provides a more little-effort-requiring, time saving, and technology-eased
way of studying, primarily in the summarizing aspect, than the cumbersome word-by-word manual retype. Its main
function is scanning text and symbols from printed sources like textbooks, magazines, and newspaper, then transferring
them to electronic devices like computers then transforming or converting them into an electronic file like document and
worksheet. The transfer rate of information is made agile and quick through the use of the latest version of Bluetooth. The
studying process is made more amusing through the products audio player.

The CooScans body is made up of Polypropylene (PP), also known as super-strength polypropylene, a durable,
perdurable, and steel-strength plastic2. This kind of plastic has a high melting point and does not absorb water like other

2 (n.d.). Retrieved November 28, 2015, from http://www.sciencedaily.com/releases/2012/06/120607141644.htm

plastics. It is lightweight and very flexible. It has a low level of electrical conductivity as well which is highly effective as a
main component of electronic products.3

Figure 1.CooScan Side View

Figure 2. CooScan's Top View

The product has been designed ergonomically. It

has a thin and slender design that fits perfectly for highlighting. It
has a soft rubber that provides a comfortable
usage for users fingers, thus eliminating hand
strain and cramps that may hinder or lag the
study process of the students. It is also visually ergonomic because it provides a
peripheral-free and proper angle for vision or line of sight, thus eliminating
eye strain. Its overall design and structure encourage good posture, which can improve academic performance in children

3 (n.d.). Retrieved December 4, 2015, from http://composite.about.com/od/Plastics/a/What-Is-Polypropylene.htm

and students. It is also lightweight that gives the assurance of not making the hand muscles tire too quickly and makes the
gliding or highlighting very gratifying.

Optical Character Recognition (OCR) is the one that does the primary function of the product. It is a software that
scans texts and graphics on printed information sources like textbooks and magazines. Then, it transforms scanned and
then retype them on different editing applications like Microsoft Word, PowerPoint, and Excel. It can also do the same
process with Android and iOS editing applications.

The product has the Bluetooth spec. version 4.2. The technology has a data transfer rates that will be up to 2.5
times faster, with a tenfold increase in packet capacity over the previous versions as per the SIG. To quote SIG, Over-
the-air firmware updates for a Bluetooth Smart device are up to 250% faster and more reliable 4. Simply stated, this
version of Bluetooth transfers data swiftly without draining a lot of energy.

4 Bluetooth 4.2 Announced: Here's What Is New | Redmond Pie. (2014, December 3). Retrieved December 4, 2015, from
http://www.redmondpie.com/bluetooth-4.2-announced-heres-what-is-new/
Figure 3. Bluetooth v4.2's features

Figure 4. Bluetooth v4.2's features 2

 The products energy source is a cylindrical-shaped and rechargeable lithium-ion battery. It has a carrying capacity
of 15000mAh or 5.6Wh. It has also a nominal voltage of 3.7 volts.

Figure 5. ConoScan's Lithium-Ion Battery

The product has a 3.5 millimeters Audio Jack which is also known as the headset port. In line with this, the product
has provided a headset that is 133 centimeters long suitable for listening to music while gliding the highlighter.
 The product has also a standard micro USB 2.0, which is also known as the charger port. In line with this, the
product package includes a travel charger which has an AC100-240V 50/60Hz 120mA input and a DC5.0V-500mA output.
It also includes a 95 centimeters long USB cord.

Figure 6. ConoScan's Travel Charger and USB Cord

 In terms of after sale service, ConoScan also offers 3-year repair service and 1-year replacement period. Wireless
Multipurpose Digital Highlighter pledges to either repair or replace the defective product with the same or equivalent value
have free back and forth shipping of the product in the course of repair and maintenance.

In terms of customer support, there are social media sites like Facebook, Twitter, and Instagram, web mailing
services like Gmail and Yahoo, and the website. There, customers can ask anything that concerns the operation and
handling of the product.

In terms of product support, there are support help desk, YouTube tutorials, and the products user manual.

a. Branding Objective and strategy

The branding objective is to perceive ConoScan as the only Filipino-made product that pioneered the most
advanced and sophisticated way of studying through the usage of information technology and other state-of-the-art
scientific inventions and innovations.

In line with its objective, the ConoScan should be generally and publicly aware. This objective can be taken place
through the aggressive online advertising, word of mouth, and creative ads. There will be a YouTube and Facebook ads
that show the amazing features of the product. There will be a massive persuasion of changing or replacing the traditional
and old-fashioned way of studying that includes long writing and many papers. The ads and advertisings may include the
economic, academic, and environmental advantages of using the ConoScan.
 b. Packaging strategy

The company is one with the individuals who aim to have a greener and sustainable society. In line with objective,
the ConoScans product packaging is 100% made up of recycled and environmentally friendly materials.

Its secondary packaging is made up of paperboard made from the recycled post-consumer waste, materials
discarded after consumer use, like old magazines and newspaper. The water-based aqueous coatings will be used as the
covering to the paperboard box. They are water-based and provide good protection on par with other liquid-based
coatings. However, they are shinier and smoother, have higher abrasion and rub resistance, and more environmentally
friendly compared to varnishes. In addition, they dry faster than varnishes 5.

The dimension of the secondary packaging is shown on Figure 5.

5 Paper Coating Types Paper Coatings - UV, Aqueous and Varnish Coatings Used in Commercial Printing. (n.d.). Retrieved
November 28, 2015, from https://www.summitprintingpro.com/resources/paper-coatings.html
Figure 7 Dimension of the Secondary Package

The volume of the packaging will be 3,591,000 cubic millimeters 6 or 3,591 cubic centimeter.

6 70mm*190mm*270mm
 Inside the secondary packaging, there is a divider that
separates the parts of the products. It is still made up of
paperboard made from the recycled post-consumer
waste. However, it does not have the coating.

Expect from the secondary packaging, the

ConoScans primary packaging is made up of
colorful banig that is Ilonggo made. It is has a
cylindrical shape that can serve as ConoScans
portable mini bag. It is also available in different
style, color, and design.
Figure 8. ConoScan's Primary Packaging and the Design No. 6
Figure 9. ConoScan's Primary Packaging Design Selection
 Labeling strategy

Figure 10. Frontal View of the Packaging

 c. Support services

ii. Price (Cost) Strategy

1. Pricing Objective

The price objective is to maintain price leadership, and gain 5% of the market share.

2. Strategy

The new-product pricing strategy that will be used is penetration pricing. The company will, first, set the selling price
low to attract customers, thus increasing the market share. The profit of the product is only 29% of the selling price. The
penetration pricing will keep out the possible entrance of the foreign competitors and possibly, the market leader for
mobile scanner and digital highlighter in the Philippines.
The product-mix pricing strategy that will be used is captive product pricing. This pricing strategy will penetrate the
market to buy the product. The ConoScan can be paired with history and science books since these courses contain a lot
of information to be summarized.
 3. Product Costing

Direct Materials
Php
1 piece Polypropylene case 86.00
Php
USB flash drive 73.10
Flat Braided USB Cord Php
Cable 21.07
Php
Travel Charger 32.25
Php
Sound IC Electronic Chip 51.60
Electronic PCB chip and Php
wires 301.00
Php
Small LED lights 43.00
MNKE-IMR-18650-20A- Php
1500 Battery 129.00
Php
Pan Head Screw 0.77
Php
GHS Plastic Dye Solvent 20.00
Php
Organic Silicon Coating 12.90

Direct Labor
 IT Specialist and Php
Programmer 125.00
Php
Electrician 100.00
Php
Assembly and Design 75.00

Manufacturing
Overhead
Php
Electricity 30.00
Php
Others 100.00

Php
PRODUCT COST 1,200.69

iii. Place (Convenience)

1. Place Objectives
 The place objective is to sell and to have access of the product nationwide through major distributors and web-
based services.

2. Place Strategy

The company will employ major distribution channels like the National Book Store and web-based services like the
online retailer, the social networking sites, and the website.

3. Trade Channels

There are four potential trade channels that will put ConoScan in the forefront of its industry.

The products own website is one of the trade channels. This serves as a proof of being a legit seller, therefore
establishing credibility. Anyone can access the Internet in case of product information. The website can also serve as a
virtual medium between seller and buyer. It can also be accessed 24/7 with the need of internet connection.

The Cono Scan has also widely known social networking accounts like Facebook, Twitter, and Instagram. Through
them, customers can access the application. Their massive popularity has the capability to spread information quickly and
serves as virtual medium between seller and buyer.
 The Cono Scan has the biggest online retailers like Lazada and Amazon. They can provide ease of buying for
customers for their accessibility. They are also exposed to large number of potential buyers due to its strong brand image.

Customers can place their order to these online retailers 24/7 through internet connection.

Distribution Scheme
 Figure 11. ConoScan's Value Chain

The product is shipped from the warehouse to all the marketing intermediaries. Through the marketing
intermediaries, customers can buy the product there. If the customer happens to order via the internet, the product is
shipped from the warehouse to delivery services in order to reach the destination. If the customer happens to order via
online retailers like Lazada and Amazon, these retailers themselves have their process of payment and its corresponding
freight cost.

iv. Promotions (Communications)

1. Promotions/Communications Objectives

The promotions or communications objective is to dominate the Internet through aggressive online advertising and
marketing and interactive social media platforms.

2. Promotions/Communications Strategy

a. Push and Pull strategies

The strategy that the company will be using will have elements of both the push and pull promotional methods.

For push tactics, since the company is starting a new business and intend to sell a product through retailers, there
almost certainly a need to persuade outlets to purchase and stock your product. Outlets can raise brand awareness and
start building valuable word of mouth referrals. It will also

For pull tactics, the massive online advertising and other promotional activities will be used to encourage
customers to buy to where ever the product is available or can be accessed.
 b. Communications mix

There is a massive investment on creating online advertising and ads, since almost all regularly access the
internet. They may include the YouTube and Facebook ads. There will also be the products website to cater all the
services that the customers needed. There will also be Facebook page and Twitter and Instagram accounts. There
will also be TV advertisements to further reach the massive public.

v. People

Employees-since it is retail, there should be people in charged to promote the product on designated areas. Like
for example in national bookstore, there should be a sales man or lady to explain he product to potential buyers and
assist in the process of purchasing.

Management- there should be a proper organization of individuals so no overlapping of function happens.

Culture-wide open to different cultures especially within the regions in the philippines when taking orders via mail.
Specifically in dealing with them. Make sure that the words you are using is just with their beliefs.

Customer service- 24/7 via website. Ofcourse Monday to Sunday on nbs during mall hours.
vi. Process

The payment can be made process through direct cash payment to all of the intermediaries of
ConoScan. Some of the intermediaries can process the payment via debit or credit card. If a
customer places an order via the internet, it can be process through sending the payment to
Palawan Pera Padala. Shipping or freight costs should be included.