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Translator Pen Marketing Plan
- 1. Reading/Translating Pen Megan Youells, Yu Gao鐚 Christopher Miller, Kyle Yoder, Carl Dixon, Thursday, December 04, 2008
- 2. 2 What is our product? Our companys new product is a translator pen for persons vacationing/staying abroad in other countries. This translator pen can highlight/scan words in a foreign language and translate the words into almost any widely used language such as English, German, Spanish, Arabic, Hebrew, Italian, French, Chinese and Japanese. WizCom Technologies is the company that makes Quicktionary pen.
- 3. 3 Market Overview Total $ or Unit Sales Sales of the Handheld Electronic devices worldwide Trends in $ or Unit Sales This product is quite new on the market; therefore sales for the past 5-10 years are not available for us to view. Shown in the sales graph, sales have increased and decreased for products similar to ours within a 12 year period. External Environment Factors General Environment: The economy nowadays in US is in a recession period. Most of American companies have their factories in the third world countries. But the American government changed some of their laws, make it easier to let people come to US for working, studying and travelling. So high-tech and green products become the major business.
- 4. 4 Competition & technology All these: translators, scanner, e-dictionary, traditional dictionary, USB, and flash will become our competitors, because Reading will combine all this function as hand size devices. Reading Pen is served as assistive reading devices for people with reading process. World has a tendency as globalization, more and more people want to go to different countries for trading, studying and traveling. Reading Pen is an effective productivity tool for business people and students, allowing them to scan printed text and transfer it to a PC or handheld device either immediately or at a later. Ethics & Sociocultural trends In our business, America is going to become our target market. Because there are lots of people want to learn Spanish. We are going to make Spanish-English, English-Spanish basic scan pen. It will lower our price, and focus on one unique market. We will add more basic knowledge about different Spanish-speaking countries. Affection The Reading Pen will have a positively effect in American. It would help those people understand the text, improve overall reading skills and boost self-confidence, the learning process and the academic success. Competitive Analysis Direct Competitors: Franklin Merriam-Webster USB Dictionary and Thesaurus The Talking 14-Language Portable Translator Indirect Competitors: All language dictionaries How well they are doing: Due to this product being so new on the market, sales trends over any period of time were not available.
- 5. 5 How they do their marketing: Both companies do almost 100% exclusive online marketing. This is due to the fact that this product is an international product, sold all over the world. They advertise on sites for students studying abroad, companys outsourcing, science research websites, and even travel agent sites. Strengths and Weaknesses of competitors: Strengths Cheaply priced Available for anyone who can afford it Available to anyone who can find it Translated phrases downloadable to PC Weaknesses Only available on the Internet Advanced/talking editions very expensive Restrictions on return policies Limited or no warranty We will attempt to introduce our product into all major department stores (i.e. Kmart, Wal- Mart, and Target) instead of only being available on the Internet. We will offer a full warranty on the product which protects the buyer in case of damage. Our product will be cheaply priced and affordable to the masses. SWOT Analysis: Strengths: Cheap/affordable to the masses compared to our competitors Full warranty Interactive voice command to help with pronunciation of foreign words and phrases Speak in your native language and have that translated into the foreign language Weaknesses:
- 6. 6 Bulky Unattractive Can only recognize certain font styles Cannot translate the nuances of language Slang words are used heavily and our translator might not be able to understand them Opportunities: People love to travel abroad The more languages one can pick up on, the better off May be viewed as wasteful spending to some people who prefer phrase books New words are always made and used Threats: Foreign firms developing better technology Development of amore sleek appearance by other firm New products incorporating an International theme to be used domestically and abroad
- 7. 7 What is our product? Our companys new product is a translator pen for persons vacationing/staying abroad in other countries. This translator pen can highlight/scan words in a foreign language and translate the words into almost any widely used language such as English, German, Spanish, Arabic, Hebrew, Italian, French, Chinese and Japanese. Target Customers Our target customers are businesses and consumers. We have determined the majority of our customers to be living in the eastern, mid-western and western parts of the United States. The following cities and states are the most major in which the majority of our customers reside: New York, NY; Los Angeles, CA; Chicago, IL; Philadelphia, PA; Dallas, TX; and San Diego, CA. Our product is intended for use by males, females and ages 17-55. This product is also meant for people who are interested in the Spanish language and are interested in foreign travel. This is also intended for people who do not want to spend money to hire an interpreter. Our product is also for people who can afford an interpreter, but do not trust interpreters translations.
- 8. 8 This chart shows an approximation of how many target customers may be in the market for our product. Numeric Percent 7/1/2005 4/1/2000 4/1/1990 population population Size Size Size population census census change change rank rank rank estimate population population 19902000 19902000 1990 2000 2005 New York, 8,143,197 8,008,278 7,322,564 685,714 9.4 1 1 1 N.Y. Los Angeles, 3,844,829 3,694,820 3,485,398 209,422 6.0 2 2 2 Calif. Chicago, Ill. 2,842,518 2,896,016 2,783,726 112,290 4.0 3 3 3 Philadelphia 1,463,281 1,517,550 1,585,577 68,027 4.3 5 5 5 , Pa. San Diego, 1,255,540 1,223,400 1,110,549 112,851 10.2 6 7 8 Calif. Dallas, Tex. 1,213,825 1,188,580 1,006,877 181,703 18.0 8 8 9 In the cities listed above is where people can be found to market our product. Our potential customers can be found within the SRDS Database of Lists, Magazines and Newspaper Directories. The best lists that are targeted for our product are to place advertisements in The Nation Travel Enthusiasts, Magellans and the HFM Enriched Database for Frequent Travelers. We really wish to market our product to the people who have a passion and love for traveling and for those who want to travel abroad but do not think they can because of the language barrier. Three great magazines/newspapers that are targeted for our new product are Business Week, Travel & Leisure and The Wall Street Journal. It is in our best wishes to reach the frequent business traveler as well and to make his or her life much simpler.
- 9. 9 The following is a short table identifying the number of persons in the lists that can be reached: Name of List Total # in List Min. Order # $ per Thousand The Nation Travel 24,522 5,000 105.00 Enthusiasts Magellans 458,261 10,000 115.00 HFM Enriched Database 1,110,564 7,500 105.00 for Frequent Travelers The following is a short table identifying the number of persons in the circulation totals of people that can be reached: Names of magazines Total Circulation (or newspapers) Business Week 926,785 Travel & Leisure 987,153 The Wall Street Journal 4,053,593 Research Plan
- 10. 10 A potential threat to our business is foreign firms developing better technology, producing at a cheaper cost and charging less than our product price. Another fear of ours is the development of a sleeker and more user-friendly design than what we currently have developed. Another thing that could cause our business to fail is new products incorporating an international theme to be used domestically and abroad. To start off the research, we would like to first see if our type of product is in demand and who we believe would use it the most. We would like to test how durable our product is in the hands of the consumer. We want to know what our potential customers are looking for in the case of a product like ours. The cost of conducting research for our research plan is going to be relatively inexpensive. We will be surveying the current market and what is currently for sale. This would cost approximately $15,000. Test Plan Our firm would like to start testing within the cities of Witchita Falls, TX, Grand Junction, CO and Pittsfield, MA. These cities have shown and have been proven to be unique cities in which marketing new products has been successful in the diverse consumer spending community. We will have direct communication within the above cities in appropriate technology/electronics stores. We will purchase ads in the local TV stations, newspapers and radio stations. Our firm would like to have 3 salespeople (one per city) to get permission from retailers in the test cities listed above to sell our product. Our estimate cost for this: $60,000 for our salespersons time and salary. We will run advertisements in each of the 3 cities for 2 months: TV: $30,000 Newspaper: $24,000 Radio: $24,000 These projected estimates for advertisements are for all 3 cities combined. The grand total for our test plan is $78,000.00. Promotional Plan
- 11. 11 Within our first year of our marketing promotions plan, we will be taking out advertisements in major United States newspapers. A magazine we will be taking out advertisements in is Business Week, so we would be able to reach business persons, whom we think could be our most major consumer of our product. The cost for a 6 time, 1 page, 4 color advertisement in Business Week is $98,285. Our advertisement will be placed every other month. We will also be taking out advertisements in United States newspaper The Wall Street Journal to again, reach business persons throughout the United States. We would like to place our advertisement in June because of the beautiful weather and persons wanting to plan a vacation around that time. The pricing of a 1 time, 1 page, 4 color advertisement in The Wall Street Journal is $254, 256.26. A large United States magazine that we would like to post advertisements in is Travel & Leisure at a cost of $101,325 for a 1 time, 1 page 4 color advertisement. Our firm will be using direct mail advertisements to the persons subscribed to the following lists: The Nation Travel Enthusiasts, Magellans and the HFM Enriched Database Frequent Travelers. We wish to reach at least 10,000 customers a month, at a yearly cost of $3960. After our first year of promotions, we will be commencing local newspaper and television advertisements to raise awareness and interest in our product. We are estimating a $15,000 budget for local newspaper advertisements and a $25,000 budget for television advertisements. The total yearly costs for advertisements are as follows: Our first year: $949,216.26. For the years following, we will be continuing our direct mail lists, newspaper ads in The Wall Street Journal and Travel & Leisure magazine. We will discontinue our advertisements in Business Week magazine. Our costs for advertisements will be $399,506.26
- 12. 12 for the remaining 2 years. Our costs for a website (domain name and hosting costs) are $25 per year.
- 13. 13 Promotional Schedule for Reading/Translating Pen 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Direct Mail Lists $ $105. $ $105. $ $ $ $105. $ $105. $ $105. The Nation - Travel Enthusiasts 105.00 00 105.00 00 105.00 105.00 105.00 00 105.00 00 105.00 00 $ $115. $ $115. $ $ $ $115. $ $115. $ $115. Magellan's 115.00 00 115.00 00 115.00 115.00 115.00 00 115.00 00 115.00 00 HFM Enriched Database - $ $105. $ $105. $ $ $ $105. $ $105. $ $105. Frequent Travelers 105.00 00 105.00 00 105.00 105.00 105.00 00 105.00 00 105.00 00 $98,285. 00 Newspaper Ads $254,256. The Wall Street Journal 26 Magazine Ads $98,285. $98,285. $98,285. $98,285. $98,285. $98,285. Business Week 00 00 00 00 00 00 $101,325. Travel & Leisure 00 Radio Stations Ads N/A Internet Website
- 14. 14 Promotional rollout expenses, assuming the test is a success. 2009 2010 2011 Direct Mail The Nation - Travel Enthusiasts $ 1,260.00 $ 1,260.00 $ 1,260.00 Magellan's $ 1,380.00 $ 1,380.00 $ 1,380.00 HFM Enriched Database - Frequent Travelers $ 1,260.00 $ 1,260.00 $ 1,260.00 Newspaper Ads The Wall Street Journal $254,256.26 $254,256.26 $254,256.26 Local Newspapers $ 15,000.00 $ 15,000.00 Magazine Ads Business Week $589,710.00 Travel & Leisure $101,325.00 $101,325.00 $101,325.00 Television Local Television $ 25,000.00 $ 25,000.00 Internet Website $ 25.00 $ 25.00 $ 25.00 TOTAL PROMO BUDGET $949,216.26 $399,506.26 $399,506.26
- 15. 15 References Bureau of Census for the United States of America. 2005 Information by largest U.S. cities. < http://www.census.gov> Global Market Information Database. Retrieved 05 November 2008. http://www.portal.euromonitor.com.navigator- lhup.passhe.edu/passport/magazine.aspx Popular Electronics. 15(7), 22. (1998, July) Retrieved 22 September 2008 from EBSCOhost Business Source Premier database. <http://web.ebscohost.com/bsi/detail? vid=7&hid=8&sid=4831a51f-b14c-448c-b078-43648fbd543a %40sessionmgr9&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&AN=606402> Review Chart. Retrieved 23 September 2008 from http://www.techlearning.com/techlearning/archives/2005/11/reviews_chart_lrg.gif SRDS Media Solutions. Retrieved on 24 October 2008. http://www.srds.com.navigator- lhup.passhe.edu/library/ SRDS Media Solutions. Retrieved on 24 October 2008. http://www.srds.com.navigator- lhup.passhe.edu/library/ SRDS Media Solutions. Retrieved on 24 October 2008. http://www.srds.com.navigator- lhup.passhe.edu/library/ Wizcom Technologies. (2008) Retrieved 22 September 2008 from Reference USA database. http://www.referenceusa.com/bd/detail.asp? rusa=1&abinumber=658022934&type=n&page=1 WSTS. Retrieved 24 October 2008. http://www.eetindia.co.in/IMAGES/EEIOL_2008MAY05_MANF_STOR_NT_01_graph.jpg