VersaPhone: Marketing Plan

VersaPhone: Marketing Plan
By: Chandler Archuleta, David Cavins, Ben Grimes & Hala Merhi

Prof. Rawwas
AMBA 603-9018
April 13th, 2008
Table of Contents
VersaPhone: Marketing Plan 1
Executive Summary 4
1. Situation Analysis 5
1.1. Market Needs 5
1.2. The Market 6
1.2.1. Market Demographics 6
1.2.2. Market Trends 6
1.2.3. Market Growth 7
1.2.4. Macroenvironment 8
1.3. The Company 9
1.3.1. Mission 9
1.3.2. Service Offering 9
1.3.3. Positioning 9
1.3.4. SWOT Summary 10
1.3.4.1. Strengths 10
1.3.4.2. Weaknesses 10
1.3.4.3. Opportunities 10
1.3.4.4. Threats 10
1.4. Competition 11
1.4.1. Direct Competition 11
1.4.2. Indirect Competition 12
2. Marketing Strategy 13
2.1. Value Proposition 13
2.2. Critical Issues 13
2.3. Financial Objectives 14
2.4. Marketing Objectives 14
2.5. Target Market Strategy 14
2.6. Messaging 15
2.6.1. Branding 15
3. Marketing Mix 15
3.1. Product Marketing 15
3.2. Pricing 16
3.3. Promotion 16
3.4. Service 17
3.5. International Markets 17
3.6. Implementation Schedule 18
4. Financials 18
4.1. Break-even Analysis 18
4.2. Sales Forecast 19
4.3. Expense Forecast 19
4.4. Linking Expenses to Strategy and Tactics 20
4.5. Contribution Margin 21
5. Controls 22
5.1. Implementation 22
5.2. Keys to Success 23
5.3. Market Research 23
5.4. Contingency Planning 23
References: 25

Executive Summary
The product introduced in this marketing plan is the VersaPhone compact cellular smartphone. The Versaphone product targets four distinct demographics including: men over 30, women over 30, men between 16 and 30, and women between 16 and 30. The pay demographics are distributed in two groups are over $50,000 annual income and the other under $50,000 annual income. VersaPhone fills its customers' need for the capabilities of a cell phone, mp3 player, and PDA all combined in one small device. Having access to all this functionality from almost anywhere is very convenient and allows users to be productive when away from their computer. VersaPhone users also need the convenience of a smaller phone when their smartphone features aren't needed. This allows the target market to use them with an active lifestyle. Sales of the VersaPhone are expected to be around $2 million dollars with an expense of $1.5 million dollars during the first year.

The great value provided by VersaPhone is flexibility. Users are not locked into one sometimes inconvenient device instead they can choose the device that best suites their planned activities. In addition the VersaPhone will also offer the same values as any other cell phone including reliability, functionality, communication and status. We want consumers to view VersaPhone users as busy professionals with active lifestyles. Runners and other active professionals can utilize the VersaPhone when other smartphones would be too large and portable MP3 players would be too limited.

1. Situation Analysis
1.1. Market Needs
Who: The VersaPhone market is made up of people who want the features of a smartphone with the convenience of a small cellular phone. VersaPhone customers are between ages 9 and 65 with the target demographic of 20 to 30 years old. VersaPhone users have an annual household income above $50,000 dollars.
Where: VersaPhone customers are located throughout the world with a heavy concentration in urban and suburban areas. Wherever Best Buy and Circuit City stores are profitable. Additionally the VersaPhone will be available through the internet.
Needs: VersaPhone customers enjoy having the capabilities of a cell phone, mp3 player, and PDA all combined in one device. Having access to all this functionality from almost anywhere is very convenient and allows users to be productive when away from their computer. VersaPhone users also need the convenience of a smaller phone when their smartphone features aren't needed. The VersaPhone will be marketed to young people and those with active