[ detailed report on the Promotional Strategies (Slide 22) can be found at: http://scr.bi/promotional-strategies ] Presentation on "Electronics Industry" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subject "Marketing Management"

1. Electronics
Industry
Presented by – Shabbir Akhtar
(PGPM 10, Globsyn Business School – Global Campus)
Electronics Industry

2. Porter’s Five Forces
• Bargaining Power of Buyers: The
price of laptops were very high
initially but, with sufficient
information about the products
reaching the customers before
they make the
purchase, proactive action is
taken by them
• Bargaining Power of Sellers: Intel
supplies processor chips to most
computer manufacturers, giving
them the power to get the
manufactures to place their
badges on each product that is
sold by them
Electronics Industry

3. Porter’s Five Forces
• Threat of Substitutes: Tablets are
deemed to be a substitute of
notebooks and with products like
Asus Transformer Prime coming
with a keyboard dock to improve
its effectiveness, the threat is
increased further
• Threat of New Entrants: When an
established company with a huge
brand equity like that of
Samsung’s entered the netbook
and notebook market, it was a
considerable threat to the
present players
Electronics Industry

4. Porter’s Five Forces
Analysis of Industry Competitors
Electronics Industry

5. Defense Strategies
• Position Defense: HP, being the
market leader still acquires other
companies to improve it's
position
• Mobile Defense: Apple, after
launching iMac, iPod, iPhone and
iPad, move into people's living
rooms with Apple TV and might
launch a Smart TV running on iOS
in 2012
• Flank Defense: Dell flanked into
smartphones as HP started to
challenge its position as the
number one company in
worldwide PC sales
Electronics Industry

6. Defense Strategies
• Contraction Defense: Though
Haier is a market leader in China
and Globally, its presence in India
is limited due to stiff competition
from the other multinational
companies in the geographical
market
• Pre-emptive Defense: Though
Panasonic was the leader in the
plasma TV market, according to a
report from earlier this year, it
launched its smart TV – VIERA –
to stay ahead of the oncoming
competitors, Samsung and LG
Electronics Industry

7. Attack Strategies
• Frontal Attack: Lenovo is banking
on the IdeaPad U300s to crack
the high-end super-thin laptop
segment, which was a space
pioneered by Apple’s MacBook
Air in 2008
• Flank Attack: Google launched an
attack on Apple’s STB flank with
its own version of the web-based-
TV product in 2010
• Encirclement Attack: Asus is all
set to attack Apple's MacBook
Air, iPad and iPhone with the
Asus Transformer Prime and
Padfone
Electronics Industry

8. Attack Strategies
• Bypass Attack: Microsoft and
Nintendo are competing in the US
and UK gaming markets to gain
more market share, but Sony is
calmly capturing the growing
Indian market and has created its
brand equity amongst the
consumer
• Guerrilla Attack: Nintendo is well
known for its guerrilla marketing
campaigns and uses it effectively
to increase the buzz about its
upcoming products
Electronics Industry

9. Strategies for Followers
AAMAR PC manufactures computer components like
cases, SMPS, keyboard, mouse and speaker along with desktops
and laptops, imitating the market leaders
Electronics Industry

10. Strategies for Nichers
Samsung has launched a new
product – the Galaxy Note – which
has a niche market of its own. Even
the promotional campaign of the
product resonates that message
– “Phone? Tablet?”. It is neither a
phone nor a tablet but, a hybrid
product that has features of both
yet, of none. The product is priced at
sub Rs. 35,000.
Electronics Industry

11. Product Hierarchy: Computing
• Need Family: Computing
• Product Family:
Computers, Calculator, Abacus
• Product Class: Personal
Computers
• Product Line: Static Workstations
• Product Type: Desktops
• Brand: Apple iMac
• Item: Apple Magic Trackpad
Electronics Industry

12. Product Hierarchy: Home Appliances
• Need Family: Home Appliances
• Product Family:
Refrigerators, Washing
Machines, Air Conditioners
• Product Class: Air Conditioning
• Product Line: Efficient Installation
• Product Type: Split
• Brand: Samsung S Crystal
• Item: Mood Lamp
Electronics Industry

13. Product Hierarchy: Entertainment
• Need Family: Entertainment
• Product Family: Televisions, Music
Systems, DVD Players, Game
Consoles
• Product Class: Consoles
• Product Line: Without Display
Unit
• Product Type: Table Top
• Brand: Microsoft XBOX 360
• Item: Kinect
Electronics Industry

14. Differentiation and Positioning
• Apple MacBook Pro:
Differentiated for its “design” and
“quality”, and positioned as a
mark of “rebellion and
empowerment”
• HP Pavilion: Differentiated for its
“durability” and “quality”, and
positioned as a “powerful
personal tool”
• Lenovo IdeaPad: Differentiated
for its “design” and
“durability”, and positioned as
“DO machine for the DOers”
Electronics Industry

15. Differentiation and Positioning
• Asus Transformer Prime:
Differentiated for its “design” and
“features”, and positioned as “the
first tablet with a quad-core
processor”
• Dell Studio: Differentiated for its
“design” and “quality”, and
positioned as a “tool of self-
expression”
• Sony VAIO: Differentiated for its
“design”, and positioned as a
“fashion accessory”
Electronics Industry

16. New Product Categorization
• New to the world products: The
IBM 610 Auto-Point Computer
was designed by John Lentz and
announced in 1957
• New product lines: Samsung
entered the notebook and
netbook market with
comprehensive line of premium
portables in 2008
• Repositioning: Sony launched the
VAIO E-Series laptops which come
with vibrant & glossy colors with
the campaign, ‘GO VIVID’ and
Kareena Kapoor as brand
ambassador
Electronics Industry

17. New Product Categorization
• Addition to existing product lines:
Dell Studio started offering over
100 designs for notebooks in
2009
• Improvement and revision of
existing products: Apple launched
a faster MacBook Pro lineup with
increased storage and
Thunderbolt I/O support earlier
this year
• Cost reduction: In 2009, the
entire MacBook line-up got price
cuts, bringing pricing more in line
with the competitors
Electronics Industry

18. Pricing Objectives and Methods
• Lenovo: Pricing objective of the
company is to maintain status
quo and uses competition
oriented pricing with premium
prices
Electronics Industry

19. Pricing Objectives and Methods
• Apple: Pricing objective of the company is to maximize profits and uses
demand based pricing with skimming prices
• HP: Pricing objective of the company is to maximize market share and uses
cost based pricing with promotional and bundled prices
Electronics Industry

20. Distribution Strategies
Zero-level Exclusive
• Apple: The company uses zero-
level exclusive distribution
strategy and sells its products
only through its own retail and
online stores
• Dell: The success of Dell has been
its impressive model of zero-level
distribution channel -- selling
customized computers directly to
customers through online stores
Electronics Industry

21. Distribution Strategies
One-level Selective
• Dell: With competitors moving to
online selling of products, Dell
responded by moving into one-
level selective distribution and
started selling Dimension PCs and
Inspiron notebooks through Wal-
Mart and Sam’s Club in 2007
• HP: Uses one-level selective
distribution strategy
complemented with smart
partnerships with the retailers
Electronics Industry

22. Promotional Strategies
Five Ms: Mission + Money + Message + Media + Measurement
• Apple: Why 1984 wont be like 1984
• Apple: Think Different
• HP: The Computer is Personal Again
• Dell: Welcome to Your Studio
• Lenovo: For Those Who Do
Electronics Industry

23. Thank you
Electronics Industry