Introduction to Marketing

Project Report

North South University

Submitted to:

Mahafuz Mannan

Lecturer

Department of Marketing and International Business

Submitted by:

Group : Extreme Team

MD. TANBIR HOSSAIN 1512553030

MD. NAYEEM 1511439630

FAISAL MAHBUB 1511570030

Section: 44

Date of Submission: 4th August, 2015

Letter of Transmittal
August 04, 2015.

Mr. Mahafuz Mannan,

Lecturer,

Department of Marketing and International Business,

North South University.

Sir,

With due respect, we are here to submit the report on “The Marketing Plan of a Newly
Developed Product” according to the instructions provided by you.

After doing several secondary market research (information from websites, articles and a
thorough online research), we have been quite successful in collecting necessary background
information about Walton Bangladesh and, henceforth, developed a new product and designed a
suitable marketing plan. A survey among the existing and prospective Walton Motorcycle users
also helped us to understand the market trend and the consumer behavior. The following report is
the result of our findings and efforts. We would be extremely delighted and honored if you
accept the report and recognize the hard work and devotion we have put on preparing this report.

We highly appreciate this opportunity to work under you.

Yours sincerely,

Md. Tanbir Hossain (1512553030)

Md. Nayeem (1511439630)
Faisal Mahbub (1511570030)

Disclaimer

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We do hereby composedly declare that the work presented in this report has been carried out by
us and has not been submitted to any other university for academic purpose.

We are declaring that this report on “The Marketing Plan of a Newly Developed Product”
has been submitted as a course requirement for Introduction to Marketing program at North
South University. We cannot guarantee the validity of the all information found in this report.
Because, some of these may recently have been changed. So, some information here may not be
right. Moreover, any part of this report has not been created by any professional. For that reason,
this report should not be used for any official purpose.

The work we have presented at this report does not have any existing copyright and no portion of
this report has been copied from any other work.

Acknowledgement

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First of all, we would like to take the opportunity to thank North South University for making
project as a part of the Introduction to Marketing course. Many people have influenced the shape
and contents of this project, and many supported us through it. We are grateful to some people
who really assisted us in our exertion. Among them, first, we would like to thank the senior
executive of Walton HIL, Mr. Tanvir Hassan, department of finance, for his continuous
assistance and guidance in completing the project. We also express our sincere gratitude to Mr.
Mahafuz Mannan, our course instructor of Introduction to Marketing, for assigning us this
project. His guidance and active support have made it possible to complete the project and to
make it more meaningful. Our fellow classmates and many other people helped us throughout
the working of the project. We are grateful to them. Last but not the least, we would like to thank
the almighty for always helping us.

Executive Summery

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Walton Bangladesh is so far running its business successfully as the only local producer of
motorcycles in Bangladesh. Since the inception of its products in the market, it has earned a lot
of fame for the quality, price and features of its motorcycles. Especially, its “Walton Speedo”
grabbed the customers’ attention most. So, we have taken the advantage of the success of that
motorcycle and built a new version named “Walton Speedo V2” which has one of the most
powerful engines BTF150. We are going to launch it in the market from October, 2015.
Currently, this product is going through two months test marketing process and so far successful
in that. Our short-term objective is to gain 1% of the market share within one year from the
product and to increase our market share in long-term to 5% in five years. Although our newly
developed motorcycle has to compete with many brands’ motorcycles, but the last 2 years
market growth rate of Walton, which is higher than its competitors, is indicating that there is a
huge possibility of earning profit through this product. We have also analyzed the market and
conducted PEST and SWOT analysis. PEST analysis shows the tax reduction advantages of us,
government support, increase in customers spending power due to growth in GDP, possibility of
loss in the low population growth rate, and advantage of high technology of our product. On the
other hand, in SWOT analysis, our product’s main strength is its high quality within a low price.
Limited market share in comparing to others is the one of the weaknesses, and increasing
demand is one of the strong opportunities. And in threat, customer preference over foreign
brands is the major threat. Our product will be in the market on the basis of demographic,
geographic and psychographic segmentation. As we have followed competitive marketing
strategy for our product, we are expecting to get competitive advantage in selling that. And in
setting our pricing, we have followed competition based pricing strategy which eventually will
be successful for our product. Moreover, selective distribution method will be followed for
distribution. At the end of this project we have added promotion timeframe and implementation
timeframe of our product which gives a proper knowledge about our future prospects. Favorable
government policy will help our product to expand domestic and international markets in the
future.

Table of Contents
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 Introduction
 Origin of Report 08
 Objective 08
 Methodology 08
 Limitations 09

 Background
 Company Background 10
 Product Background 11

 Developed Product and Its Specification

 Walton Speedo V2 11
 Specification 12

 Objectives
 Short-Term Objective 13
 Long-Term Objective 13

 Competitor Analysis
 Market Share 14
 Competition 15

 Strategic Situational Analysis

 Market Analysis 16
 PEST Analysis 17
 SWOT analysis 20

 Segmentation, Targeting and Positioning

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  Market Segmentation 24
 Targeting 27
 Positioning 27

 Marketing Mix
 Product 28
 Price 30
 Place 32
 Promotion 34

 Implementation Timeframe 36

 Conclusion 37

 List of references 38

 Appendix 38

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 Introduction

Origin of Report:

This report was assigned by our respected Sir Mr. Mahafuz Mannan, Introduction to Marketing
instructor, North South University. This report contains the marketing plan of a new product,
which is a Walton motorcycle, and several marketing analysis regarding the product.

Objectives:

 To learn how to develop a product and its marketing plan.

 To gain ideas about designing more realistic marketing strategy.
 To have a knowledge about the current market trend of the country.
 To incorporate theoretical education with practical experience.
 To get acquainted with different policies, rules and regulations of the government on the
product concerned.
 To identify the promotional strategy for different level of consumer.

Methodology:

A plan has been structured in developing a marketing plan for a new product on the basis of the
relevant data consistent with the preparation of the report to conduct the study. For that reason,
primary and secondary data were reviewed thoroughly in an organized manner. This study is
mainly on secondary data collected from head office, showrooms, website, annual reports, and
factory open market. It is also based on a market survey on questionnaire basis on customers,
showroom managers and corporate level as a primary source of data. Newspapers and other
printed materials were also used for collecting relevant data.

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Limitations:

Though we tried our best to make a hundred percent perfect report, a few limitations held us
back. The main limitations that we faced, were –

 As many of the common products were barred, we had to choose one from a limited
number of options.
 When we went to collect information from the Walton outlets, they were not fully
able to cooperate with us, as our required information was confidential.
 As we didn’t have any previous experience of developing a product, that is why
sometimes we faced difficulty especially, in terms of creating a marketing plan for
the product.
 There are very few research papers and articles on Bangladeshi market to study.
 The website of the company is less informative.
 Unavailability of previous research works in Bangladesh.

 In case of data collection from competitors, some places were not accessible.

 The research was limited by time and cost.

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 Company Background

Walton HIL:

Walton Hi-Tech Industries Ltd (Walton HIL) is one of the best companies in the electronic
sector of Bangladesh. Walton is one of those few Bangladeshi companies that export electronic
products since most of the companies in Bangladesh import products of various famous brands.
The company was established in 1977. Since then, it has been setting new benchmarks in
production of electronic goods in Bangladesh.

The company has a yearly production capacity of 1.4 million pieces of fridge, 300,000 pieces of
air conditioner and 300,000 pieces of motorbike. In its early stage, the company used to produce
home appliances. Today their product mix includes Mobile Phone, Generators, and Motorbikes.
In 2009 the company signed an agreement with the Malaysian auto manufacturer Ageth to set up
an automobile plant in its factory premises. After meeting the local demand the company is
exporting its products to Qatar, Dubai, Abu Dhabi and Kuwait of Middle East, Ghana of Africa
and India, Nepal and Bhutan of South Asia, and U.S.A. It also wants to export its products to
France, Italy, Germany, Spain and other European countries. Walton has been successful in
capturing this large international market because of its high quality products. To ensure this high
quality of products all the members of the Walton family, both factory and administrative
members, work very hard round the year.

The factory of Walton is situated in Savar and the corporate office is at Dilkusha C/A, Dhaka.
There are 120 outlets of Walton throughout the country so that customers everywhere can buy
Walton products. Walton has a dedicated team of skilled engineers and technical personnel from
home and abroad who ensure quality products for the customer. Because of this highly skilled
team Walton can offer the customers a wide range of products.

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 Product Background

Motorcycle:

Walton is manufacturing motorcycles of modern innovative technology, elegant shape and

design with different models of 80cc to 150cc motorcycles maintaining international standard
quality as per requirements of its customers of different countries or regions. Its motorcycles are
now competing with the foreign brands.

Walton motorcycle has under security control with voice alarm. And there are some special
specifications of Walton Motorcycle such as- Mobile phone indicator, Digital gear display, Fuel
location meter, Air shock absorber, Remote control, Hydraulic brake, Anti-theft lock and Alloy
rim etc. Walton Motorcycle has also introduced fuel efficient technology and Euro3 standard
engine. Walton motorcycles are also fuel-efficient.

Developed Product and Its Specification

Walton Speedo V2:

After analyzing some previous motorcycle selling reports, we came to know that “Walton
Speedo” is the most sold motorcycle of Walton in recent years and has been competing with
other foreign brands’ , such as: Bajaj, Yamaha, Hero Honda, Dayun, TVS etc., motorcycle since
its inception in the market. So, we decided to take the advantage of its popularity and to make a
new version of this motorcycle. We contacted with the tech experts of Walton and discussed
about the idea with them. Then we developed a new version named “Walton Speed V2” with the
help of some highly expert technician of Walton Bangladesh. Because of the previous version’s
design popularity, we didn’t bring change in the design much. Although there are some small
changes in design, but our new version looks almost same as the previous one. It will come in
market in three colors. These are – red, black and blue. Also, this 150cc motorcycle has been
made with one of the most powerful engines “BTF150”. Which can provide the highest
performance at any condition. And its price is 102,000 taka only which is low in comparing with
other competitors’ motorcycles.

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Here is the sample photo of Walton Speedo V2 -

Specification:

Technical Specification Engine Type

Motorcycle Name : Walton Speedo V2 Engine Name : BTF150
Brand : Walton Displacement (cc) : 150cc
Category : Sports Max Power : 8.2 kw (8000rpm/min)
Max Torque : 11.4N.m (5800 rpm)
Max Speed (KM/H) : 120 km/h
Fuel Consumption (KM/L) : < 2.0L/100Km
Battery : 12V
Body Other Features
Dimension(LxWxH):1960X830X1096mm Mobile phone indicator, Digital gear
Wheel Base (mm) : 1350mm display, Fuel location meter, Air shock
Ground Clearance (mm) : 70mm absorber, Remote control, Hydraulic
Fuel Tank Capacity (L) : 14 L Brake, Anti-Theft lock and Alloy rim etc.
Max load (KG) : 170Kg
Climbing Ability : > 30 Degree

Objectives

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As it is known that every company’s objective should meet the SMART criteria, we have also set
our objectives according to that criteria. The word, SMART, refers to five things – Specific (S),
Measurable (M), Attainable (A), Realistic (R), and Timeframe (T). These five things have been
considered in setting our objectives.

Our objectives are divided into two terms. These are-

 Short-Term Objective
 Long-Term Objective

Short-Term Objective:

Our short-term objective is to launch this new product to add at least 1% to the overall market
share within a year of launch. This type of objective also includes- providing quality motorcycle
to assure the potential customers about the durability of the product which will eventually result
in profit maximization through customer satisfaction.

Long- Term Objective:

Our long-term objective is to achieve a market share of 5% within next 5 years. We also want to
beat our all competitors through the proper distribution of our new product and to gain leadership
in the market of motorcycles in future.

Competitor Analysis

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Market Share:

By conducting a survey among consumers we were able to determine peoples’ preference of

brands while buying motorcycle and which brand of motorcycle they have bought. The market
demand of different brands of motorcycles has been calculated by survey method. It must be
noted that the survey had been centered on middle class families in urban and rural areas, Walton
would have had a much higher market share since these people are the main target market of
Walton. Also, since Walton is the sole domestic producer; it enjoys some tax reduction that
makes it capable of manufacturing and selling its motorcycle at reasonable prices. This facility
provides Walton with a competitive advantage. Hence, Walton plans to target another 5% of the
market in the next 5 years and they are confident that they will be able to achieve that target.

MARKET sHARE
Yamaha Others
3% 7%
Bajaj
30%
Dayun
17%

TVS
13% Walton
8%
Hero Honda
22%

Competition:

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Direct Competition:

From the market share graph, it is clearly seen that Walton currently holds 8% of the market
share. It is top among the local competitors but comparing with other brands it still doesn’t have
that much market share. Whereas, Bajaj, Hero Honda, Dayun and TVS have the biggest market
shares. It seems that after launching the new motorcycle “Walton Speedo V2”, Walton will have
to face a tough competition. But the good news is - most of these brands have been in this market
for a long time. But none of them were able to match the market growth of Walton in the last 2
years. Although Bajaj is the No.1 motorcycle brand in the country, Walton is catching up fast.
Also “Walton Speedo V2”, which has a number of unique features at a reasonable price, has the
ability to attract customers and can provide greater customer value and satisfaction than its
competitors do.

Walton will have to fight with the following competitors in the market for achieving more shares
–

Indirect Competition:

Our new product will have to face some indirect competition. Other vehicles such as- cars, cycle
etc. will be our product’s indirect competitor. As some high and middle class people are
becoming interested to buy cars and also, nowadays, young people prefer buying cycle rather
than buying motorcycle, this may cause a tough competition for our product.

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 Strategic Situational Analysis

Market Analysis:

As Bangladesh is a developing country, most of the people here earn a little amount of money.
The prices of vehicles such as: cars are very costly. That’s why buying those expensive vehicles
for transportation in our country is not possible for every middle class people. So, a majority
number of people prefer buying motorcycle as those are not that much costly and can be
affordable in their mid-range budget. There is a huge demand for motorcycles among the
growing population. In this case, Walton Speedo is the perfect example. It was sold out within a
year after introducing in market. So, it can be expected that “Walton Speedo V2” will also be
very demandable in market. In future, this demand will increase further.

The people of our country are mainly price sensitive, Walton, being the sole manufacturer of
motorcycle, is very keen to meet the demand of this large market by providing a competitive
price of its new product.

By selling its new motorcycle, Walton’s primary goal is to capture the local market, as it is still
behind market leader Bajaj. But it will also export this new product. Already it has customers in
Myanmar, Bhutan and planning to expand its market to Africa. The PEST and SWOT analysis
are also representing the possibility of our goal -

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PEST Analysis:

In marketing analysis process, PEST is an important thing to analysis. PEST indicates – Political,
Economic, Social and Technological Factors. These factors affects the external environment.

 Political Factors: Laws, tax policies, government type and stability, changes in the
political environment etc. are considered in political factors.

 Tax Policy: As Walton is the sole domestic producer, it enjoys some tax
reduction. By taking this advantage, we can manufacture and sell Walton Speedo
V2 at a reasonable price than our other competitors.
 Political Environment: The recent political environment in our country is not so
good. Strikes and several political clashes have been affecting the market for a
long time. That’s why this new product’s selling may be hampered due to these
reasons.
 Government Type and Stability: No matter how our government is, it always
encourage companies and support them in many ways. Tax reduction, advantages
in export and import for local companies and many type of facilities are provided
by our government in its stable period. This constant government support can help
us to sell our new product more conveniently.

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  Economic Factors: Changes in the economic environment, stage of business cycle, labor
costs, impact of globalization etc. are the economic factors.
Before analyzing economic factors, let’s have a look on the last 10 years GDP of our
country -

This graph is indicating that economic condition in our country is not stable and also telling that
our GDP has increased this year. Increase in GDP can result into possible changes on economic
factors. It can cause some of these changes -

o Increase in per capita income

o Growing GDP high disposable income
o Increase in Spending Power
o A huge prospect of a profitable export sector

So, the current economic condition is suitable for our new product and through selling it we can
be financially benefitted.

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 Social Factors: Social factors include – population growth rate, population health,
education and social mobility, lifestyle choices etc.
As the current population growth rate (2014) of our country is – 1.22%, it indicates that
the population of our country has decreased by 0.01% because in 2013, it was 1.23%.
Although the decrease rate is not that much but if it continues it can bring some changes
in social factors which may result negative for our new product. Our new product sales
may slow down because of that.

 Technological Factors: Impact of emerging technologies, impact of technology transfer,

research and development activity etc. are the technological factors.
Bangladesh is still not advanced in technology. That’s why every year our country
imports a lot of electronic products. Motorcycle is also in the import list. As local
companies are not so advanced technically, there is chance of our new motorcycle to stay
in a good position because of its advanced technical features, which other local brands
don’t have in their motorcycles. Also, our new product has the ability to compete with
other foreign brands’ motorcycles.

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SWOT Analysis:

For evaluating our new product’s overall strengths (S), weaknesses (W), opportunities (O), and
threats (T), we conducted SWOT analysis. Which is given below –

Strengths:

Strengths include – capabilities, resources, and positive situational factors that may help a
product to serve its customers and achieve its goal.

Here are some main strengths of our new product -

 Only Local Company to Manufacture Motorcycle: Walton is the only local company
that manufactures motorcycle. That’s why it has created a local brand loyalty among the
customers. That customers’ loyalty will help our product to find a good place in the
market. This can be a strength of our product.
 High Quality in Low Price: As the labor costs and many other costs in our country are
low, Walton, being a local company, has the advantage of producing high quality new
products at low costs. Walton Speedo V2, a high quality motorcycle, has also been
produced in a low cost. That’s why its price is low. Consequently, people will get
attracted to this product when they will compare this motorcycle’s features, price etc.
with other brands’ motorcycles. This is another strength of our product.
 Variety of Features: Walton Speedo V2 has variety of features which other brands’
motorcycles don’t have. Especially, its high quality “BTF150” engine is the main feature
which other brands’ manufactured motorcycles don’t contain. This feature can set it apart
from its competitor brands’ motorcycles.
 Service and Parts Availability: Sellers cannot provide enough service to their customers
for the imported foreign motorcycles. Again, all parts of those motorcycles are not
available in our country. In this case, Walton, being a local company, is way ahead than
others. It provides its customers efficient after sales service. Also, all parts of its
motorcycles are available for the customers. We can give the same service and provide
all necessary parts to our customers for our new product. This will eventually work as a
strength for our product.

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Although these are main but there are many more strengths of our new motorcycle (see -
Appendix A).

Weaknesses:

Weaknesses include limitations and negative situational factors that may interfere with the
product performance in the market.

Here are some weaknesses of our newly developed product –

 Limited Market Share Compared to Others: Market share is a fact in the modern
era of marketing. People prefer the brand which has the bigger market share than
others. Market share also indicates the fame of a company. In this case, Walton has
only 8% of the market share which is relatively low in comparing with the other
brands. For this weakness, our new motorcycle may not gain the profit what we are
expecting.
 Too Much Fuel Consumption: As our newly developed motorcycle has highly
advanced features, it also consumes a great amount of fuel than many motorcycles of
other brands. It may impede customers from buying this motorcycle. This is one of
the weaknesses of our product.
 Lack of Strong Marketing Network Other Than Competitors: The marketing
network of Walton is still not strong. As a result, inspite of producing high quality
products sometimes its products don’t get proper value from the customers. Also
there are some faults in the distribution system. Our new product has to go through
the same marketing network. Which can cause a weakness in the distribution system
of our product.
 Lack of Skilled Men Power: As our product needs high technology to develop, its
development also needs skilled men power. But there is not enough skilled men
power is Bangladesh. For this reason, we may not produce enough quantity of
products that we are expecting.

These are the main weaknesses of our product. For more see - Appendix B.

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Opportunities:

Opportunities are favorable factors or trends in the external environment that a product may be
able to exploit to its advantage.

Here are some opportunities of our new product –

 Increase of Sales in Major Cities: Being a local company, Walton has earned a lot of
fame for providing high quality products among its customers at a low price. That’s why
sales of Walton is increasing day by day in major cities. This increase rate of sales can be
an opportunity of our newly developed motorcycle for gaining enough profit from the
major cities’ market.
 Increasing demand: As Bangladesh is a developing country, most of people here can’t
afford to buy cars. For this reason, many of them prefer buying motorcycle for the
transportation purpose. Especially, there is a trend among the young generation of buying
motorcycles. That’s why the demand for motorcycles is increasing gradually. Our newly
developed motorcycle has the ability to satisfy customers’ demand with its exclusive
features and low price. This increasing demand is a huge opportunity of our product.
 Cost-efficient Technology: Walton has cost-efficient technology which eventually helps
to produce products at a low cost. That’s why it is possible to produce more products. For
this cost-efficient technology we can produce our new product more. This is an
opportunity for our product to earn more profits.
 No Local Competitors: As no local competitors is there in the market, we can sell more
of our new product without any competition. This is a great opportunity for us.

See – Appendix C for more opportunities.

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Threats:

Threats implies current and emerging external factors that may challenge the product’s
performance in the market.

Here are some threats of our product –

 Customer Preference over Foreign Brands: In our country, there is a trend among the
customers that they always prefer foreign brands no matter how good local products are.
Customer preference over the foreign brands can hamper the market of our new
motorcycle. Sales may slow down due to this reason. This a threat for our new product.
 Political Hazards Hamper Sale: Our country is often troubled with political hazards.
This may cause hamper on our new product sales.
 Entry of More Competitors in The Market: More and more competitors are entering
into the market. As a result, Walton is already facing a very tight competition and in
future, it’ll have to face tougher competition. This a threat for our new product as this
type of competition can slow down our sales.
 Escalating Fuel Price: With the high consumption of fuel, the price is also escalating
gradually. The price of fuel is already very high. In future, it’ll increase more rapidly.
This may prevent buyers from buying our new motorcycle.

See – Appendix D for more threats.

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 STP (Segmentation, Targeting and Positioning)
Market Segmentation:

In strategic marketing, segmentation is one of the most important factors. Market segmentation is
one of the steps that go into defining and targeting specific markets. It is the process of dividing
a market into a distinct group of buyers that require different products or marketing mixes.
Markets can be segmented or targeted using a variety of factors. The bases for segmenting
consumer markets include:

 Demographical Bases (Age, Income, Generation etc.)

 Geographical Bases (Countries, Divisions, Districts, Cities etc.)
 Behavior Bases (Product knowledge, Usage, Responses etc.)
 Psychographic Bases (Social Class, Lifestyle, Personality etc.)

The market in which Walton is doing its business is consumer market and Walton mainly
segments its market base on Demographic, Geographic and Psychographic basis. So, our new
product “Walton Speedo V2” will also be segmented on the basis of these three segmentation
bases. Here is a table that shows our product’s segmentation of target customer profile –

Target Customer Profile

Segmentation Bases
Demographic Segmentation Geographic Segmentation
Bases Variables Bases Variables
Age Firstly 20-30 years Country Bangladesh
and secondly 30+
Generation Young Divisions 7
Income Middle-income Level Districts 64
Psychographic Segmentation
Bases Variables
Lifestyle Adventure and traveling lover
Social Class Middle to high
Personality Strong
Demographic Segmentation:

In segmenting the market on demographic basis we’ve mainly considered- age, income and
generation. Our target is mainly the people of middle-income level and also the young generation
whose age are between 20-30 years. Young generation or people age between 20-30 years will

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get 2% discount on purchase along with a free helmet. People more than 30+ are also our
customers but they’ll not get those advantages which young people, 20-30 years old, will get.

Geographic Segmentation:

Segmenting the market on geographic basis we have considered- divisions, districts and cities.
On the basis of 7 divisions, 64 districts and several cities, we have segmented the whole country
in eleven zones for the marketing purpose of our new product. These are -

 Dhaka South Zone

 Dhaka North Zone
 Dhaka South-West Zone
 Chittagong Zone
 Rajshahi Zone
 Mymensingh Zone
 Sylhet Zone
 Jessore Zone
 Barisal Zone
 Comilla Zone
 Bogra Zone

Our area managers are responsible for these zones and it is their responsibility to develop market
there. As product demand and response of the customer are not same in all zones, we’ll try to
maintain the sales in high demand zones like- Dhaka, Chittagong, Bogra and also try to increase
sales in low demand zones. Also low demand zones will get 1-2% discount on purchase of our
product.

Currently, Walton has either their retail shops or dealer shop in all of the 64 districts of
Bangladesh and also has multiple shops in Dhaka and Chittagong in order to provide maximum
convenience. Through those we can distribute our newly developed motorcycle to our customers.

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Walton Plazas in Dhaka:

Walton Plazas in Chittagong:

Psychographic Segmentation:

Psychographic segmentation is an important base in terms of segmentation. Segmenting this type

of segmentation we’ve considered- social class, lifestyle and personality. Those who care about

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the social class and personality will be our main customers in this segmentation because our
product can help a person to maintain a high class and also its design can match with any person
having a strong personality. As our product is suitable and can perform under any condition,
those who like adventure and love traveling long distance will also be our customers in this
segmentation.

Targeting:

A target market consists of a set of buyers who share common needs or characteristics that the
company decides to serve. On the basis of the marketing segmentation shown above, we’ve
followed “Differentiated Marketing Strategy” for our new product. As our product is targeted for
many segments and also based on ages and areas the pricing, color and service are little bit
different.

Positioning:

Positioning is the way the product is defined by the consumers on important attributes. It is the
place the product occupies in consumers’ minds relative to the competing products.

Walton has created huge enthusiasm among the consumers of its target market with its slogan
“Amader Ponnyo”. Consumers accepted Walton’s endeavor of manufacturing motorcycle for
the first time in Bangladesh, and are more than willing to buy a product of high quality made in
our own country. On the other hand, as a local manufacturer Walton can sell quality products at
comparatively lower price than other competitors. That’s why customers can differentiate our
new product from our competitors. Our new product’s low price, unique features, high quality,
after sales service, wider distribution channel and many more things will work as a competitive
advantage to make the position in the customers mind.

Marketing Mix (4Ps)

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Marketing mix, also known as 4Ps of marketing, consists of product, price, place and promotion.
It is the set of tactical marketing tools, 4Ps, that we can blend to produce the response we want in
our target market.

Product:

Our newly developed product, Walton Speedo V2 150cc motorcycle, is a tangible product. As
we will follow “Competitive Marketing Strategy”, we’ll always think of gaining competitive
advantage through superior customer value. By achieving competitive advantage we can sale our
product more to our customers.

Level of product:

Branding is an established source for sustaining the competitive advantage in the marketplace.
According to Kotler, brand and design are the parts of the product’s “actual element”. There are
three levels for a product as shown by the diagram:

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Core Product – is the benefit of the product that makes it valuable to the consumers. According
to Kotler, the core product addresses the question what is the buyer really buying. So for our
product, the core product could be the need for transportation, or travelling.

Actual Product - is the tangible, physical product which is required to get the core product. At
actual level the support for our product comes through high quality, exclusive design, strong
local brand name, and unique features etc.

Augmented Product - is the non-physical part of the product. It usually consists of lots of added
value, for which a customer may or may not pay a premium. It is an issue after developing a
dependable core layer and actual layer, and to remain competitive in the market, a marketer
should focus more on providing augmented products. Our new product will provide augmented
services such as its customer care service, warranty, and necessary product support etc.

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Types of Consumer Products

Consumer products are the products used by the final consumers for personal use. Consumer
products and services can be categorized in a number of ways:

 Convenience Products
 Shopping Products
 Specialty Products
 Unsought Products

For our motorcycle, which will have many different competitors providing more or less equal
features and facilities to the customers, the consumer product could be classified as “Shopping
Product”, where the consumers carefully compare on suitable price, quality and style. Also, the
level of involvement will be high among the consumers for the purchase of our product because
the price is higher than the convenience products. It, therefore, will become very vital for the
marketers of our product to provide information through advertising, along with keeping an ideal
balance between affordability and quality.

Price:

Pricing Method:

Price is the only element in the marketing mix that produces revenue, while all other elements
represent costs. Price is also one of the most flexible marketing mix elements. Pricing is the
number one problem facing by most of the companies. Prior to that, it is really important to focus
on pricing and come up with a pricing strategy that helps the company to set the highest position.
There are different types of pricing. Such as- customer value based pricing, cost-based pricing,
cost-plus pricing, and competition-based pricing. As our main target market is- middle-income
group, that is why from these pricing we will follow the “Competition-Based Pricing”. When
the product price is determined based on the competitors’ strategies, costs, prices, and market
offerings it is considered as the competition-based pricing. Here, competitors will be given much

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priority on setting our product price. Due to that, we’ll provide our new motorcycle, named
Walton Speedo V2 which is a 150cc motorcycle, to customers at a low price.

Here is a comparison of the prices of 150cc motorcycle of different brands-

Model Walton Bajaj Pulsar Hero Honda TVS Apache

Speedo V2 150 CBR 150R RTR
15O CC 102,000 175,700 156,000 167,000

By comparing the prices of other brands’ 150cc motorcycles, it can be said that- consumer will
compare our product’s low price, high quality, and exclusive features with the other brands’
product and buy our product. That is why we will choose competition-based pricing.

Pricing Strategy:

There are many ways to price a product. Marketers mainly follow four types of pricing
strategies. Those are-

 New product pricing strategies

 Price adjustment pricing strategies
 Product mix pricing strategies
 Price changes pricing strategies
As our product is a new product in the market, so we have to follow the “New Product Pricing
Strategies”. Under new product pricing strategies there are two factors. They are-

 Market skimming pricing

 Market penetration pricing
As we want to create a new market segment of our own, we will go for market penetration
pricing rather than market skimming pricing. The price which will be charged for our product
will have been set low in order to gain market share. Our objectives are to increase sale, enter in
the new market, and increase market share. We will set the lowest or minimum price for the
services. We will also give high quality within a low price.

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Market penetration pricing is appropriate in two conditions. Those are-

 Marketers should be price sensitive- As different brands of motorcycles are available in

the Bangladesh market, this market is price sensitive. Almost all the motorcycles’ brands
are today competing to grab as much market share as possible, thus we will opt to charge
low price to allow the demand law: the lower the price the higher the demand. Therefore,
we will try to provide our new motorcycle at a low price with high quality than our
competitors’.
 When the sells will increase, the production cost or distribution cost will decrease
These are the pricing strategies of our product.

Place:

Distribution Channel:

Distribution or set of intermediaries is to pass finished or semi-finished goods from producers to

the final consumer. A distribution channel can include wholesalers, retailers, distributors and
even the Internet. Channels are broken into direct and indirect forms, with a "direct" channel or
zero level channel allowing the consumer to buy the good from the manufacturer and an
"indirect" channel or one/multi-level channel allowing the consumer to buy the good from a
wholesaler or through a channel of distribution. Walton has a countrywide retail sales outlets and
service point’s network. Therefore, it can be said that we will use a one level channel distribution
as Walton is well established in the native country and thus utilises its years of endowment and
experience. We will use a number of our own retail shops (Walton Plazas) with specialized and
knowledgeable sales persons. We own 442 after sales servicing points all over Bangladesh,
which are always alive to solve the tiniest problem. We also have a number of distributors who
will make sure our product will be present in as many independent retail shops as possible to
succeed our motto. We have a total of 700 distributors from the company’s 11 zones across the
country, out of which 64 were rewarded as best distributors.

Distribution or Marketing channel systems:

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In cases where a marketer utilizes more than one distribution design, then the marketer is
following a multi-channel or hybrid distribution system. We have authorized distributors who
will distribute the product to retailers and then the retailers hand the products to the end
consumers. On the other hand, we will also use our own Walton showrooms where we will
deliver our product directly from our production place to sell it to the consumers through its own
experienced and satisfactory way. The distribution channel system is illustrated below:

Number of intermediaries:

Many producers do not sell products or services directly to consumers but instead use marketing
intermediaries to execute an array of necessary functions to get the product to the final consumer.
These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers),
distributors, typically develop a firm committal bond that builds in the one channel or multi-
channel marketing chain. The marketing intermediaries are:

 Intensive distribution
 Selective distribution
 Exclusive distribution

We will use “Selective Distribution” for our product, which is in between intensive and
exclusive distribution. Selective distribution involves more than one but less than mass
distribution. As mentioned above in the report that our new product is a shopping product and

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thus, the most appropriate way to elevate our product in the existing Bangladeshi market is to
have selective capable distributors to acknowledge the market requirement for our product and
make the product availability convenient for the consumers. For example: Dhaka is a densely
populated district of Bangladesh and thus need large number of shops to have our product that
will be accessible in the market for the potential buyers.

Promotion:

Ever since Walton started its production in its manufacturing plant, it has started a wide
promotional campaign on its product. Its tagline “Amader Ponnyo” reflects the pride it takes by
being able to sell home appliances manufactured in Bangladesh. Right now Walton has TVCs
running in all major satellite channels of Bangladesh in peak hours targeting their core target
customers. Also it has numerous billboards and advertisements in print media. Also its 120
Walton Plazas across the country also works as a major advertising tool. Walton has recently
started sponsoring different major sports event in the country. Recently it sponsored its first
International Cricket Tournament and thus it allowed its brand to be viewed by millions of
people across the world. Through these process we will also promote our new motorcycle. We’ll
telecast TV commercials, place our product’s advertisement on billboard, and publish about it in
newspapers, magazines etc. For future promotion we have already made a schedule and that is
given below -

► Mar, Apr, May, June, July,

Oct, Nov, Dec, Jan, Feb, Aug,
Month
201 201 2015 2016 2016 2016 2016 2016 2016 2016 2016
Medium ▼
5 5
Television
Sponsorship
Billboard
Internet
Newspapers
Magazines
Radio

Percentage of promotion based on medium is shown in graph-

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100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
TV Sponsorship Billboard Internet Newspapers Magazines Radio

Promoted Not Promoted

Implementation Timeframe

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As our objective is to launch this new product to add atleast 1% to the overall market share
within a year of launch, we’ve set an implementation timeframe for our product. Which indicates
the launching time of our products, high pick sales and many more things. After launching the
product in October 2015, we are expecting to get the high pick sales in January 2016 to May
2016. High pick sales will eventually help us to achieve our objectives. Here is our product’s
implementation timeframe -

Aug Sep, Oct, Nov, Dec, Jan, Feb, Mar, Apr, May, June,
, 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016
2015
Test
Marketing
Television
Internet
Radio
Newspapers
Magazines
Billboard
Sponsorshi
p
PR
POS
Special A B C D E
Offers

A Launch of the new product

B Victory day
C Happy new year
D International mother language day
E Pohela Boishakh
High Pick Sales
Conclusion

Under the brand name of Walton the product “Walton Speedo V2” has been made along with
its marketing plan. Descrying its marketing plan, it can be said that this product will bring a
huge success and profit for the company by taking the place of its competitors’ motorcycles’
market share. Being a local company, Walton, with the built of this product, is going to

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create a new dimension in the market of motorcycle in the upcoming future and its huge
success is just a matter of time.

List of References

 Annual Report of Walton (2013-14)

Web References:

 Walton’s history and background - www.walton.com.bd

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 GDP Growth Rate - http://www.tradingeconomics.com/bangladesh/gdp-growth
 Population Growth Rate - http://www.worldometers.info/world-population/bangladesh-
population/

Appendix

 SWOT Analysis:
A. Strengths: More strengths of our product are –
 Can be highly customized
 Most reliable as it requires low maintenance
 Good mileage
B. Weaknesses: More weaknesses are –
 Lack of proper decoration of showroom
 Inability of capturing high income group
C. Opportunities: More opportunities are –
 New innovation and technology
 Government support
 Potential untapped market in Africa and Eastern Europe
D. Threats: More threats are –
 Foreign Brands’ domination in the market of motorcycle
 More sophisticated technologies of foreign companies in
developing motorcycle
 Other low price motorcycles

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