This document contains a group project proposal for the launch of Xian Dai's new smartphone, Planet Saturn, in Singapore. It includes an analysis of the market potential, competitors, consumers, and distribution channels. Key recommendations include differentiating the product through an "X Factor" that capitalizes on its strengths and expanded services, changing perceptions of Chinese brands through a branding strategy, and partnering with local advocates and distributors for promotion and conversion strategies to help penetrate the new Singapore market. The overall objectives are to achieve high brand awareness and a top 4 market share position within 6 months of launch.
3. COMPANY PROFILE
COMPANY
PROFILE
XIAN DAI
!
• Top 2 smartphone manufacturer in China"
"
• Limited market presence – sold through
multiple channels but only within the China
market"
"
• Relatively low cost compared to other
smartphones in the market"
Introduction
2/9/14! 3!
4. PRODUCT SPECIFICATIONS
PRODUCT
SPECIFICATIONS
Introduction
PPLLANEETT SSATTURN
• Android OS"
• 4.9” Full HD Touchscreen"
• Built in front camera and 11mp back
camera"
• Built in Wi-Fi and Bluetooth capabilities"
• Lithium-ion battery lasting over 450
hours of standby time"
• 8.0mm thin and weighing 150g"
2/9/14! 4!
7. MARKET POTENTIAL Analysis
ANALYSIS
Situation
QUANTITATIVE
300.%#
250.%#
200.%#
150.%#
100.%#
50.%#
.%#
Smartphone Users (% of mobile phone users)!
2012# 2013# 2014# 2015# 2016# 2017# 2018#
US# India# China# Asia8Pacific# World#
Source: e-marketer"
• Smartphone user base is ever expanding."
• Growth of smartphone users in Asian counties and especially in
Asia-pacific is predicted to reach at all-time high levels. "
• The industry offers a bright opportunity for making huge profits. "
2/9/14! 7!
8. MARKET POTENTIAL Analysis
ANALYSIS
Situation
QUANTITATIVE
INDUSTRY POTENTIAL IN THE NEXT 6
MONTHS
Market Value (MV) = P X N X W"
P: Potential Number of Customers!
N: Number of Units bought annually !
W: Weighted average price of a unit!
Market Value (MV) in the next 6 months = "
36%!of!the!popula5on!intends!to!
change!from!current!phone!!to!a!
smartphone!in!the!next!6!months!
5,399,000"
X $227 = $441,222,624
1,944,000"
Avg. price of smartphone"
2/9/14! 8!
9. MARKET POTENTIAL Analysis
ANALYSIS
Situation
QUALITATIVE
IDEAL TEST MARKET
• Culturally diverse"
"
• Politically stable"
• Closer geographical location to China
(greater degree of similarity/ large chinese
population) "
• Global city (widely varied nationalities,
ethnicities, occupations)"
• High smartphone penetration rate "
2/9/14! 9!
12. PROMOTIONAL CHANNEL Analysis
1 ANALYSIS
Situation
100%!
90%!
80%!
70%!
60%!
50%!
40%!
30%!
20%!
10%!
0%!
Consumer Media Reach!
PEOPLE!WHO!
WATCH!
TERRESTRIAL!TV!
IN!THE!PAST!
WEEK!
PEOPLE!WHO!
READ!DAILY!
NEWSPAPERS!IN!
THE!PAST!WEEK!
PEOPLE!WHO!
ACCESSED!
INTERNET!IN!
THE!PAST!WEEK!
PEOPLE!WHO!
LISTENED!TO!
RADIO!IN!THE!
PAST!WEEK!
PEOPLE!WHO!
VISITED!
CINEMAS!IN!
THE!PAST!WEEK!
Consumer!Media!
Reach!
• Channels with the largest volume of
consumers lies in TV, Newspaper and
Internet. "
• However, TV and newspaper
spending are much costlier as
compared to digital channel spending."
2/9/14! 12!
13. PROMOTIONAL CHANNEL Analysis
1 ANALYSIS
Situation
XIAN DAI SHOULD TAP ON SINGAPORE’S HIGH INTERNET, SOCIAL
MEDIA USAGE AND MOBILE SUBSCRIPTION RATE AS PREFERRED
PROMOTIONAL (COST- EFFECTIVE) CHANNELS .
IMPLICATION! 1
2/9/14! 13!
14. COMPETITORS Analysis
ANALYSIS
Situation
• Nearly 91% of the smart phone
industry in Singapore is dominated by
the five companies: ALPHA, EPSILON,
IOTA, KAPPA and BETA. "
• The three major companies namely,
ALPHA, EPSILON and IOTA occupy
just less than 80% of the market share. "
• These companies can be considered
to be the major competitors for Xian
Dai and pose a potential threat to its
entry into the Singapore market. "
Market#
Share#
0.7829!
0.9146!
0.35"
0.3"
0.25"
0.2"
0.15"
0.1"
0.05"
2/9/14! 14!
1.2!
1!
0.8!
0.6!
0.4!
0.2!
0!
0"
Smart!Phones! NonTSmart!Phones! Smart!phone!pareto!
2
15. COMPETITORS Analysis
2 ANALYSIS
Situation
88%! 94%! 91%! 91%! 82%! 75%! 83%! 86%!
100%!
80%!
60%!
40%!
20%!
0%!
Brand!Awareness!
• Brand Loyalty is stronger for well
established brands. "
"
• This leads to lower costs and higher
margins Incumbent players in the
market have a very strong brand
awareness. (Chart: Brand
Awareness) "
• The top three market share holders
have very high brand awareness. "
• This gives them a very strong
foundation to build their brand
equity which ultimately drives their
revenue models. (See picture)"
2/9/14! 15!
16. COMPETITORS Analysis
2 ANALYSIS
Situation
ALPHA#
Quality!&!
Ease!of!
OS!&!App!
PriceT
Value!
Mul5med
ia!&!
Customer!
Service!
Baery!
Life!
Size!
Style!&!
Innova5o
Messagin
g!
ALPHA!
EPSILON#
Quality!&!
Ease!of!
OS!&!App!
PriceT
Value!
Mul5me
Customdeia!&!
r!Service!
Baery!
Life!
Size!
Style!&!
Innova5o
Messagin
g!
EPSILON!
IOTA#
Quality!&!
Ease!of!
OS!&!App!
PriceT
Value!
Mul5medi
a!&!
Customer!
Baery!
Life!
Size!
Style!&!
Innova5on!
Messaging! Service!
IOTA!
• Not only that, the top three performers also posses strong perceived differentiating factors (Chart: Alpha, Epsilon,
Iota). "
• For example, Epsilon has a perceived Quality and Ease of use, Battery Life, Size and Style which enhance its brand
equity and drive the revenue. "
"
• The new entrant, Xian Dai, must provide products that are better than the existing products in order for customers to
see value. The intangible benefits that the company provides a strong brand equity. "
2/9/14! 16!
17. COMPETITORS Analysis
2 ANALYSIS
Situation
IMPLICATION!
2
NEED TO DEVISE A STRONG DIFFERENTIATION STRATEGY
BY LOOKING AT ITS CURRENT PRODUCT STRENGTHS AND
LOOK TO EXTEND MORE UNIQUE OFFERING TO COMPETE
WITH THE BIG PLAYERS
2/9/14! 17!
18. CONSUMER Analysis
3 ANALYSIS
Situation
Gen Y represents approximately
20% of the economically active
population of Singapore. "
"
Gen Y’s in Singapore are tech-savvy
and prefer an unconventional
approach."
"
Tobacco/alcohol, mobile phone and
food are listed as top three items
that Gen Y prefer to spend the most."
Gen Y is a generation like no other;
for starters it’s the largest generation
of them all and with access to huge
social networks."
SMARTPHONE USER ANALYSIS
Total# Smartphone#
(n=566)! (n=409)!
%! %!
Age!
16-24" 18" 19"
25-34" 18" 20"
35-44" 21" 23"
45-54" 25" 24"
55-64" 18" 15"
Mean! 40" 39"
Age Range of Gen Y- early 1980s to the
early 2000s"
"
• Represent more than half of the
smartphone users"
2/9/14! 18!
19. CONSUMER Analysis
3 ANALYSIS
Situation
Smartphones-Users
! Market Potential"
SHORT TERM " 27% "
LONG TERM " 45%"
! Current User Profile:
No differentiation based on age,
gender, use.
Majority - Postpaid user,
Employed, household income >
$2500"
NON Smartphones-Users
! Market Potential"
SHORT TERM " 9% "
LONG TERM " 18%"
! Current User Profile:
No differentiation based on age,
gender, use.
Majority - Postpaid user,
Employed, household income >
$2500"
2/9/14! 19!
20. CONSUMER Analysis
3 ANALYSIS
Situation
Smartphones-Users NON Smartphones-Users
1. Targeting Emphasis when Bundling with Telco"
• At monthly expenditure: All 5 price levels"
• Special target at price level ($1-$30 ) & ($31-$60) "
• Especially for age groups 16-24 & 25-44"
"
2. Potential Selling Points"
• Open OS"
• Upgrade to smartphones – at competitive price"
• Battery life"
• Exclusive Demand in general"
"
3. Target Segment Priority Needs"
• Using mobile for Apps, GPS, Instant messaging,
Emails, Wifi, Hotspots, Sync, Mobile TV, Game
(offline, online), "
1. Targeting Emphasis when Bundling with Telco"
• At monthly expenditure: All 5 price levels"
• Special target at price level ($31-$60)"
2. Selling Point"
• High Features:Price ratio"
• Higher Battery life"
• Exclusive Demand in general"
"
3. Fulfill market gap "
• Using smartphone as Hotspots, Modem, Sync,
Mobile TV"
2/9/14! 20!
22. CONSUMER Analysis
3 ANALYSIS
Situation
IMPLICATION!
NEED TO DEVISE INNOVATIVE TARGETING STRATEGIES THAT MEET THE NEEDS OF TWO
VARYING TARGET MARKET – CURRENT SMARTPHONE USERS AND NON-SMARTPHONE
USERS WITH A FOCUS ON GENERATION Y.
3
2/9/14! 22!
23. DISTRIBUTION CHANNEL Analysis
4 ANALYSIS
• 58% of the smart phone sales
Situation
takes place through mobile
operator retail stores "
• The cost of this channel will be
low as it avoids costs like setting
up stores, hiring sales persons
etc. "
• Gives Xian Dai the opportunity to
leverage on the success of the
telecom operators. "
Mobile Distribution Channels
58%!
11%!
4%!
20%!
7%!
A!mobile!Operator!
retail!Shop!
At!an!independent!
telecom!shop!
Other!Offline!
Stores!/!Loca5ons!
Online!
Others!(Second!Hand!
etc.)!
IMPLICATION!
NEED TO IDENTIFY THE BEST DISTRIBUTION CHANNELS TO WORK WITH AND WORK
THROUGH IN ORDER TO REACH THE TARGET SEGMENT
4
2/9/14! 23!
25. Situation
OVERALL OBJECTIVES Analysis
SUCCESSFUL LAUNCH
OVERALL
OBJECTIVES
80% 40% 25% 10%
PRODUCT
AWARENESS
IN THE FIRST 6 MONTHS
ACHIEVE 4th POSITION IN MARKET SHARE
CONSIDERATION CONVERSION AQUISITION
2/9/14! 25!
26. KEY ISSUES & OBJECTIVES Issues &
Objectives
WHERE Xian Dai is Key ISSUES AT HAND WHERE Xian Dai WANTS TO BE
NO UNIQUE PRODUCT/SERVICE
OFFERING
NEGATIVE PERCEPTION OF
CHINA BRANDS IN GENERAL
DIFFICULTY IN NEW MARKET
PENETRATION
TO BE GREATLY DIFFERENTIATED
FROM ITS COMPETITOR AND
DOMINATE IN CERTAIN PRODUCT
OFFERINGS
DO NOT POSSESS STRONG
DIFFERENTIATION FACTOR TO STAND
OUT AMONG ITS COMPETITORS
TO BE A WELL KNOWN GLOBAL
BRAND WITH STRONG PRESENCE IN
ITS OWN MARKET AND OTHER MARKETS
LIMITED PRESENCE IN OTHER MARKETS
AND GENERALLY ATTACHED WITH
NEGATIVE PERCEPTION
OF CHINA PRODUCTS
BECOME ONE OF THE LEADING
SMARTPHONE LEADING COMPANY in
SINGAPORE & THE WORLD
AMONG THE TOP 2 SMARTPHONE
MANUFACTURER IN CHINA BUT NO
PRESENCE IN SINGAPORE
2/9/14! 26!
27. STRATEGY OVERVIEW Issues &
Objectives
Key ISSUES AT HAND STRATWEHEGREI EXiSan Dai WANTS TO BE
NO UNIQUE PRODUCT/
SERVICE OFFERING 1
CHANGING NEGATIVE
PERCEPTION OF CHINA
BRANDS
DIFFICULTY PENETRATING
NEW MARKET (SINGAPORE)
2
3
THE X FACTOR
GLOBAL- LOCAL
ADVOCATES
BETTER TOGETHER
2/9/14! 27!
28. STRATEGY OVERVIEW Issues &
Objectives
Key ISSUES AT HAND STRATWEHEGREI EXiSan Dai WANTS TO BE
NO UNIQUE PRODUCT/
SERVICE OFFERING
CHANGING NEGATIVE
PERCEPTION OF CHINA
BRANDS
DIFFICULTY PENETRATING
NEW MARKET (SINGAPORE)
DIFFERENTIATION
STRATEGY
BRANDING STRATEGY
PROMOTION STRATEGY
PARTNERSHIP STRATEGY
CONVERSION STRATEGY
1
2
3
EXTERNAL FACTORS
2/9/14! 28!
32. 1 OBJECTIVE & SELECTION
Recommendations
OBJECTIVE!
TO IDENTIFY AND CAPTITALISE ON PRODUCT STRENGTHS AND EXPAND SERVICE
OFFERINGS THEREBY DIFFERENTIATE AMONG ITS COMPETITORS
1
CREATING!
COMPETITIVE!
ADVANTAGE!
DIFFERENTIATE!
STRATEGIEY
2/9/14! 32!
33. 1 METHODOLOGY
Recommendations
CREATING!
COMPETITIVE!
ADVANTAGE!
THE
X
FACTOR The “X” Factor "
1
DIFFERENTIATE!
• Capitalizing on intrinsic product strengths"
"
• Strengthening through unique software &
service offerings"
- Unique applications that fulfills needs of
smartphone users "
2/9/14! 33!
34. RATIONALE OF METHODOLOGY Recommendations
ALPHA#
Quality!&!
Ease!of!Use!
OS!&!App!
PriceTValue!
Mul5medi
a!&!
CustomGera!ming!
Baery!Life!
Size!
Style!&!
Innova5on!
Messaging! Service!
ALPHA!
EPSILON#
Quality!&!
Ease!of!
Use!
OS!&!App!
PriceT
Value!
Mul5medi
a!&!
CustomGear!ming!
Baery!
Life!
Size!
Style!&!
Innova5o
n!
Messaging! Service!
EPSILON!
IOTA#
Quality!&!
Ease!of!Use!
1
OS!&!App!
PriceTValue!
Mul5media!
&!Gaming!
Customer!
Baery!Life!
Size!
Style!&!
Innova5on!
Messaging! Service!
IOTA!
• Not only that, the top three performers also posses strong perceived differentiating factors (Chart: Alpha, Epsilon,
Iota). "
• For example, Epsilon has a perceived Quality and Ease of use, Battery Life, Size and Style which enhance its brand
equity and drive the revenue. "
"
• The new entrant, Xian Dai, must provide products that are better than the existing products in order for customers to
see value. The intangible benefits that the company provides a strong brand equity. "
2/9/14! 34!
35. 1 RATIONALE OF METHODOLOGY
Recommendations
Xian!Dai!
Saturn!
Samsung!Note!
3! iPhone!5s!
Opera5ng!System! Android!OS! Android!4.3! iOS7!
Screen!size! 4.9"!! 5.7"! 4.0"!
HD! Yes! Yes! Yes!
Touch!Screen! Yes! Yes! Yes!
Wifi! Yes! Yes! Yes!
Bluetooth! Yes! Yes! Yes!
Baery!Life! 450!hours! 225!hours! 420!hours!
Baery!! LithiumTIon! LiTPo! LiTIon!
Width! 8.0mm!thin! 8.3mm!thin! 7.6mm!thin!
Weight! 150g! 168g! 112g!
Total#
Key Drivers"
Messaging! 17%!
Baery!Life! 15%!
Size! 15%!
Mul5media!&!Gaming! 14%!
Style!&!Innova5on! 13%!
Customer!Service! 12%!
PriceTValue! 11%!
OS!&!App! 1%!
Quality!&!Ease!of!Use! 1%!
• The new entrant, Xian Dai can
capitalise on its battery life feature to
distinguish itself from its competitors. "
• They can also look into developing
innovative improvement
applications(able to produce in short
term) to improve such as messaging
and multimedia & gaming so strengthen
its unique offering. "
2/9/14! 35!
37. 2 OBJECTIVE
Recommendations
OBJECTIVE!
TO DEVISE THE BEST PROMOTIONAL AND BRANDING STRATEGY THAT
WILL HAVE THE MOST IMPACT FOR SALES AND PRODUCT AWARENESSS
BUILDING!
ADVOCATES!
GLOBAL BRAND! ONLINE!
LOCALISED STRATEGIES!
1 2
BRANDING! PROMOTION!
STRATEGIES
2/9/14! 37!
38. 2 GLOBAL BRAND! METHODOLOGY
Recommendations
LOCALISED STRATEGIES!
GLOBAL BRAND!
LOCALISED STRATEGIES!
GLOBAL
LOCAL
1
ADVOCATES BRANDING!
Adopting Global Branding (Made for the world) !
• Renaming in multiple languages and include in all
promotional materials "
"
Localised campaigns that feature local celebrities/
influencers and working with non-competing local
brands!
• Virtual life events features local gamers and Youtube
Singers "
2/9/14! 38!
39. 2 RATIONALE OF METHODOLOGY
Recommendations
GLOBAL BRAND!
LOCALISED STRATEGIES!
GLOBAL BRAND!
LOCALISED STRATEGIES!
1
BRANDING!
Insights
• Brands made in China are perceived to have low,
substandard quality Perceived as “imitation” of an
original: because of the “spelling” of some Chinese
brands, e.g., Alfa for Alpha "
• Willingness to buy is low BUT customers accept
global brands that are marked “made in China”
which means factory is “authorized” and quality
control measures are in place."
• Brand as global brand"
• Localised naming via language
translation"
2/9/14! 39!
41. 2 METHODOLOGY BUILDING!
Recommendations
ONLINE!
ADVOCATES!
BUILDING!
ONLINE!
ADVOCATES!
GLOBAL
LOCAL
2
ADVOCATES PROMOTION!
Advocate Marketing "
• Social media community building "
"
Digital and online membership system "
• -Referral to stores “ points initiative”"
"
• Gamified journey for the launch"
2/9/14! 41!
42. 2 METHODOLOGY BUILDING!
Recommendations
ONLINE!
ADVOCATES!
GAMIFIED JOURNEYS
SOCIAL MEDIA
ENGAGEMENT PLAN
GLOBAL
LOCAL
ADVOCATES
2/9/14! 42!
43. 2 RATIONALE OF METHODOLOGY
Recommendations
2
BUILDING!
ONLINE!
ADVOCATES!
BUILDING!
ONLINE!
ADVOCATES!
PROMOTION!
Total&(n=163)&
15%$
13%$
12%$
6%$
5%$
11%$ 12%$
8%$
8%$
10%$
Looked$at$phone$displays$in$shops$
Spoke$to$friends/colleagues/rela?ves$
Looked$at$adver?sements$
Looked$on$service$provider's$site$on$the$
Internet$
Looked$on$manufacturer's$site$on$the$
Internet$
Read$phone$leaflets/brochures$
Read$reviews$and$blogs$on$the$Internet$
Read$in$magazine$or$papers$
Spoke$to$a$phone$salesperson$
Via$an$event$or$roadshow$
• WOM and Displays are most effective promotional mediums"
• Our strategy will involve creating gamified journeys - product
advocates to bring their friends/relatives to product displays
and explain the product specifications and attribute to earn
discount or membership points for discount at next purchase
off related accessories"
• "
• This will combine the two most effective promotional
channels "
2/9/14! 43!
44. 2 RATIONALE OF METHODOLOGY BUILDING!
Recommendations
ONLINE!
ADVOCATES!
Singapore has the world’s second highest social
penetration rate in Singapore at 59 per cent, more
than double the global average of 26 per cent. "
"
Social media users in Singapore spend 2.2 hours
on average per day on all social media channels,
slightly above the world average of 2.0 hours. "
"
The city state’s Internet penetration rate is 73 per
cent, above the global average of 35 per cent."
"
The mobile penetration rate in Singapore stands
at 148 per cent, smashing the global figure of 93
per cent."
"
Source: Wearesocial.sg"
60%#
50%#
40%#
30%#
20%#
10%#
0%#
Internet Activties on Mobile Phone!
Web surfing! Social networking! Mobile online
banking!
Mobile shopping! VOIP programs! I have not done
any of the internet
activities listed
above in the last
30 days!
100%#
90%#
80%#
70%#
60%#
50%#
40%#
30%#
20%#
10%#
0%#
Features Used!
MP3#player#
Sync#with#other#devices#
Take#video#
WiFi/#WiMax#
Calendar#
Memory#expansion#
Review/#Edit#documents#
Turned#phone#into#hotspot#
FM/#broadcast#radio#
Phone#as#internet#modem#
Conferencing#from#phone#
2/9/14! 44!
47. 3 OBJECTIVE
Recommendations
OBJECTIVE! TO IDENTIFY THE BEST DISTRIBUTION CHANNEL TO GAIN
PRODUCT AWARENESS AND SALES PURCHASE
1
FORGING!
STRATEGIC!
PARTNERSHIPS!
PARTNERSHIP!
STRATEGIEY
2/9/14! 47!
48. Recommendations
3
FORGING! RATIONALE OF PARTNER SELECTION
STRATEGIC!
PARTNERSHIPS!
200!
150!
100!
FORGING! 50!
TRIANGLE!
0!
ALPHA! IOTA! EPSILON!
SQUARE!
CIRCLE!
STRATEGIC!
PARTNERSHIPS!
PARTNERSHIP!
1 • Subscribers base for Circle is higher thus absolute
numbers for re-contract will be higher. "
• This suggests greater growth potential for purchase of
more phones than other brands. "
• In addition, launching in phases will be able to help Xian
Dai manage supply and inventory better as they are
able to have real data to predict or forecast demand
more accurately. "
2/9/14! 48!
49. 3 POTENTIAL CHALLENGES
Recommendations
FORGING!
STRATEGIC!
PARTNERSHIPS!
Bringing partners
on Board
Convincing the service providers, CIRCLE,
SQUARE and TRIANGLE to enter into the
agreement might be a major challenge for Xian
Dai."
"
This challenge can be resolved by putting
forward a unique value proposition that will
enhance Xian Dai’s brand equity and drive
revenue."
NOTE !
Although, online sales is on the increasing trend, the proportion of smartphone sales via
online platforms is very low compared to sales via mobile operator kiosks. !
!
While online channels are a must have, it is something that Xian Dai should focus in the
long term and not for the immediate release of the Saturn Smartphone in the next 2
months. !
2/9/14! 49!
50. Recommendations STRATEGY OUTCOMES
BRAND LOYALTY & SUSTAINED ENGAGEMENT THROUGH TARGETED
CHANNELS OF COMMUNCIATION & GAMIFIED JOURNEYS
MORE COST EFFECTIVE - DIGITAL AND SOCIAL MEDIA
CHANNELS
BETTER INVENTORY MANAGEMENT THROUGH CONTROLLED
SUPPLY
2/9/14! 50!
54. Conclusion CONCLUSION
OBJECTIVES CRITICAL ISSUES STRATEGIES BENEFITS
NO UNIQUE PRODUCT/
SERVICE OFFERING
NEGATIVE PERCEPTION OF
CHINA BRANDS IN GENERAL
DIFFICULTY IN NEW MARKET
PENETRATION
THEX
FACTOR
GLOBAL-LOCAL
ADVOCATES
BETTER
TOGETHER
IN THE FIRST 6 MONTHS
AFTER LAUNCH
TO ACHIEVE TOP 4
POSITION IN MARKET
SHARE
FAST, EFFECTIVE
MARKET PENETRATION
IMPACTFUL
BRAND BUILDING AND
SUSTAINABLE COMMUNITY
ENGAGEMENT
ACHIEVE BOTH SHORT
TERM AND LONG TERM
SUCCESS THROUGH
DIFFERENTIATION
2/9/14! 54!