COMSATS Institute of

Information Technology

Product:

Mechanical Battery Charger

Submitted by:
Huma Qaisar Syed Muhammad Asif SP10-MBA-046 SP10-MBA-177

Submitted to:
Sir Laeeq Jaswal

Dated: 28th November, 2011

Department of Management Sciences, Islamabad

Acknowledgements

All the praise is for Allah, the most merciful and beneficent, who blessed us with the knowledge, gave us the courage and allowed us to accomplish this Project. We are especially indebted to our teacher Sir Laeeq Jaswal for instilling in us enough knowledge, inspiring guidance, remarkable suggestions, constant encouragement, and friendly discussion helped us to learn and enabled us to complete this report efficiently.

Table of Contents
Executive Summary.... 1. 1.1 1.1.1 1.1.2 1.1.3 1.1.4 2 2.1 3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.2.3 Introduction1 Mechanical battery charger..1 Working.1 Timing1 Usage. Benefits. Need Identification...5 Solution.. Marketing Strategy ...6 Market Analysis8 Competitors analysis ..8 SWOT analysis...8 Target Market ..8 Marketing Objective...8 Market Strategy and Marketing Mix.. Marketing Growth strategy. Generic strategy.. Market dominance strategy.

3.2.4 3.2.5 4 5 6

Market innovation strategy. Marketing Mix Projections Launch Strategy. Appendix

Executive Summary

This Project is about the development and launch of our new product i.e. Mechanical Battery charger. The Report focuses on the Introduction, working, usage, need identification, marketing strategies, projections and finally launch of Mechanical battery charger. We are introducing this mechanical charger because of the need of it in a power shortage country like Pakistan. The need to find a reliable mode to charge becomes even more important to people who are constantly on the move. So we have come to the idea of creating a Mechanical Charger Mechanical battery charger is a portable, mobile-phone battery charger, empowering people in developing countries to charge their phone anytime, anywhere without the need of electricity. We have analyzed our competitors, target market and done swot analysis in this report. Financial projects and marketing mix and launch of the product is also under consideration.

1.

Introduction

Pakistan has over 108 million cell phone subscribers. Cell phones act as a primary source of communication for business, entertainment & emergency services both in urban & rural areas. Cell phones being economical have become the preferred mode of communication for the majority of Pakistans workforce who work in informal sector (street vendors, casual labor, unorganized farming, etc.) & use it extensively. However, like other developing countries, Pakistan too faces huge power shortage. Pakistan has over 50% shortage in power supply. Charging of the phone becomes difficult due to constant power cuts. The need to find a reliable mode to charge becomes even more important to people who are constantly on the move. So we have come to the idea of creating a Mechanical Charger.

1.1 Mechanical battery charger

Mechanical Charger is first truly sustainable hand powered mobile phone charger. A portable, mobile-phone battery charger, empowering people in developing countries to charge their phone anytime, anywhere without the need of electricity.

1.1.1 Working
The charger works on the principal of a Dynamo, mechanical movement, generating enough power to charge a phone. Mechanical Charger eases the problem of power shortage by providing enough power to charge a mobile phone through mechanical movement. By using rolling the device handle power from your own self. The product is using both hands with even while the user is talking, thus increasing utility of the product. Being light & compact, it can be carried anywhere, thereby providing much needed convenience to travelers on the go.

1.1.2 Timing
One min of rotating the handle gives about 3 min of talk time and about 30 min of stand-by time. The product provides an affordable & sustainable solution for the times when someone acutely needs to use a cell phone and the phone battery is running out.

1.1.3 Usage
By studying user behavioral patterns, team obtained an understanding of the conditions under which such product will be used. Ethnographic research identified five key need areas which included low cost, rugged, light & compact, ability to be used by both left handed & right handed person and most important, the ability of speak while using the powering device. Adapters for different brands of mobile phones were offered with the basic product thereby expanding the charging to any mobile handset. The charger slips easily into shirt and trouser pocket making it convenient to carry to work. To aid the startup in achieving quick breakeven, the team designed the product with a minimum number of parts thereby ensuring low production costs.

1.1.4 Benefits
Go Mechanical charger is a portable, cost effective, easy to use handset charger that empowers people in developing countries to always stay connected. Following are the benefits of the product: Easy operation with multiple mobile charge system (Roll on quick charge) Economical (350 rs for the product) Light & compact (product can be carried anywhere & fits easily into ones pocket) complex shape and construction Environmentally friendly (made of recyclable materials) Convenient (clean symmetrical form enabling comfortable & anti slip grip for both right & left hand operation) The product has gained wide acceptance in & since its introduction the key target users of product have expanded beyond the people working in informal sector to include working housewives, college students, etc. thus providing the necessary sense of convenience, confidence & unlimited connectivity.

2.

Need identification
As cell phones act as the primary source of communication for business, entertainment and emergency services. The country has over 108 million cell phone subscribers and this number is growing at a phenomenal speed. The majority of Pakistans workforce is in the informal sector, such as street vending, casual labor, farming, construction labor, etc. These workers use cell phones extensively, but often have limited/no access to power for charging their handsets. There is over 50% shortage in power supply in Pakistan. Most regions in the country are badly affected by power shortages. In few parts of Pakistan, one may experiences power cuts ranging up to 18 hours a day. In such a situation, although the mobile service network is available, charging a cell phone become extremely difficult thus affecting business & personal life. For people who are constantly travelling, having a charged phone becomes a necessity in order to stay connected with the loved ones. Without a dependable source of power on the go, one has to constantly search for places which have power. Challenge The design team working with a technology startup had to envision & develop a sustainable product that would empower cell phone users in developing countries to charge their handsets anytime, anywhere, without the need of electricity.

2.1 Solution
The team looked at the problem from multiple perspectives including that of a traveler, businessman, construction worker, truck driver, vegetable vendor,

 Rickshaw driver and so on.

The result was the understanding of emotions (anxiety, fear, confusion, helplessness) that people have to go through when they need to call someone but dont have enough charge. Understanding of emotions paved way for the team to brainstorm ideas about desired feelings (convenience, being empowered) that the stakeholders would like to have at the time of need.

3.

Marketing Strategy
3.1 Market Analysis

Chapter market strategy in this report includes the following: Competitors analysis SWOT analysis Target market Marketing objective Before entering the market, we considered these steps to make sure our product does not face any inconvenience or hurdle before or after launch. Though we had also conducted a survey to gather information from people out there in the market still these steps are necessary to be carried out for a new product. Strengths, weaknesses, opportunities, threats, product, price, placement, promotion, our customers, products cost, communication, convenience, analyzing our competitors, market strategy were main focusing points.

3.1.1 Competitors Analysis

While analyzing our competitors we saw no direct competitors in market. But there are many other companies providing battery chargers along with the mobile companies. Some of our competitors are: Solar mobile charger Solar panel mobile charger ZM charger ABC N-7.2 Automatic charger Solar lantern China mobile batteries

3.1.2 SWOT Analysis

SWOT is the analysis of a firms strengths, weaknesses, opportunities and threats. Our SWOT analysis says:

Strengths
Our product is an innovative and unique one. We have very few competitors. We dont have any direct competition in the market.

Weaknesses
As we are new in the market, it will take us some time to earn a name and trust. Slow growth rate. Less finances.

Opportunities
Can create a monopoly in the market. Can grab a large number of customers. To grow the business and product line.

Threats
Our product has a threat of china chargers available at low price. Facing threat of non-mechanical chargers having high market share. Customers acceptability.

3.1.3 Target Market

Each and every person in our society has mobile phone even the laggards in our market use it. And our product is an accessory so we target each and every user of mobile phone. People of all age groups, income levels, and life styles can be our customers. Our main target will be upper middle and upper lower class. We also intend to target small scales as they can give us high profits. Masses are our huge target as they can expand profits well. We have seen opportunities not only in the market of the big cities but also small rural and urban areas. That is:

Urban areas

Rural areas

Sub-urban areas

Small towns

Urban Sub urban Small towns & Rural areas Rural areas feel more importance of mechanical battery charger because of shortage of electricity there so they have to solely rely on this device. We will target first the big cities such as Karachi, Lahore and Rawalpindi to stable our position first. We will promote it through promotional campaigns at different shopping malls such as Dolmin malls, Park tower Karachi, Lahore malls etc. Targeting our main customers that are the youth, we will run promotional campaigns in universities telling about the importance and usage of the device.

3.1.4 Marketing Objectives

Our marketing objectives are for a period of one year. After one year we will revise our objectives according to the performance of our business. To provide customers with Quality. To make the availability of our product everywhere. To convert our weaknesses into strengths and threats into opportunities. To make our product more attractive and affordable. To make the customers brand loyal. Take efficient promotional steps. To capture maximum market.

3.2 MARKET STRATEGY AND MARKETING MIX

Chapter market strategy and marketing mix includes: Market growth strategy Generic strategy Market dominance strategy Market innovation strategy Marketing mix Product Price Promotion Placement

3.2.1 Market Growth Strategy

Mechanical charger is a new product for its uniqueness in the existing market as market of chargers is not new. Therefore, it comes in the head of product development.

3.2.2 Generic Strategy

Our product concentrates on uniquely achieving superior performance in an important customer benefit area valued by a large part of the market. And takes start from differentiation strategy.

3.2.3 Market Dominance Strategy

Viewing all of the four market dominance strategies, our mechanical charger is a challenger in the market. Our product has its uniqueness of charging batteries without electricity.

3.2.4 Market Innovation Strategy

For market innovation strategy, our mechanical charger lies in the category of pioneers because there is no such battery charger available in this market currently.

3.2.5 Marketing Mix

Marketing mix also called four Ps of marketing. The four components of marketing mix are product, price, promotion and placement.

Product
Our product is basically a mobile charger which can be easily carried along where ever one is moving. User merely needs to put it in its pocket and charge his/her mobile when the battery gets low. Mechanical battery charger is a portable device not too expensive and the three basic levels are quite obvious in it. First is the core product which is the charger, second level is the actual product which includes its features, packaging, parts and styling. And the final and third level is augmented component which is the benefits that surround the first two levels in the form of portability and convenience of use. Categorizing our product from users point of view this product lies in the category of emergency good. Normally people would buy it when they have a pressing need.

Price
The second element in marketing mix is price. Price is simply the amount of money that consumers are willing to pay for a product or service. Pricing methods and strategies have taken a number of forms. Pricing new products and pricing existing products require the use of different strategies. When pricing a new product, businesses use either market-penetration pricing or a price-

skimming strategy. A market-penetration pricing strategy involves establishing a low product price to attract a large number of customers. By contrast, a price-skimming strategy is used when a high price is established in order to recover the cost of a new product development as quickly as possible. Manufacturers of computers, videocassette recorders, and other technical items with high development costs frequently use a price-skimming strategy. We have decided to go for price-skimming strategy at initial stage and as moving ahead and gaining demand in the market we will shift towards the lower price.

Promotion
For promotion we will be using the following the following methods: Advertising through media. Advertising through magazines. Public Relations. Sales promotion. Free gifts for first 50 customers. To get it launched in the market, we will be putting our banners in the main markets of Saddar Rawalpindi, Dubai Plaza Murree Road and Blue Area Islamabad where mostly the accessories of electronics are found. Brouchers would be circulated in different markets, colleges and universities. Few months after entering the market, these activities would be repeated in other localities as well. We will also be focusing on

customer support for this purpose because positive word of mouth is no doubt the biggest form of promotion. Once a customer is satisfied with the performance of our product and becomes loyal, he would be providing us with more clients.

Type of Promotion Banners

Time Interval Few weeks before initial launch

Rate Rs. 40000 (Rs. 2000 each)

Newspaper Advertisements

At the time of launching Rs.15000

Magazine Advertisements

Interval of 5 months

Rs.18000

Placement
We chose two main markets for our initial launch. Our out lets will be at Jinnah super Islamabad and Commercial market Rawalpindi.

For every business it is important to select the right location that helps in building customer perception and attracting more and more customers. So that the product is easily accessible to them.

4.

PROJECTIONS:

5.

LAUNCH STRATEGY

For launching our new product we would be mainly focusing on different strategies such as traditional methods, search engine optimization, e-mail marketing, online advertising, getting customer feedback etc.

OUR PRODUCT LAUNCH:

Initially we will start advertising several weeks before launch. We would be hiring a public relations firm and coordinate press release to create a buzz in local and regional media. Then analyzing the expected demand to inform the public of how many units will be available at launch. Holding a press conference to announce our new product and its launch date. We would also be creating a website where curious customers can learn all about our product. And including an area where potential customers can post questions.

 And sending out demo-units to large newspapers and trade magazines to get some feedback.

6.

Appendix References
Took help from the following websites: www.google.com www.wikipedia.com www.scribd.com www.mechanicalengineeringblog.com/tag/wind-up-battery-charger/ www.windupradio.com/FPFreeCharge.htm