Brand Extension Marketing Plan

Topics: Hard disk drive, Solid-state drive, Western Digital Pages: 39 (11912 words) Published: June 3, 2011
Kaplan University|
Graduate School of Business and Management|
Brand Extension Marketing Plan|
Thomas N. Bailey|

Solid State Drive by Western Digital Corporation
1.0 Executive Summary

Western Digital Corporation (WDC) is the second largest computer hard disk drive (HDD) and solid state drive (SSD) manufacturer in the world for internal, external, portable and shared storage applications. WDC also pursues opportunities in the many new roles for digital content in people’s daily lives at home, including software and applications for handheld devices, television and other home entertainment devices. WDC was founded in 1970, and is recognized as the leading drive manufacturer in terms of quality, speed, customer value creation, and consistent innovation. In 2010, WDC introduced a new line of solid state drive, the SiliconEdge Blue SSD. Just as WD’s HDDs are designed for capacities, burst speed, low cost, quality and reliability, the SiliconEdge Blue SSDs are engineered with innovative features, low power consumption, high level of tolerance to shock and vibration and world class technical support.

The SiliconEdge Blue SSD is a first consumer-oriented SSD that asserts fast read/write speeds and high SSD capacities. The SiliconEdge Blue SSD makes an ideal storage solution for read-intensive applications requiring high performance and plug-and-play compatibility. The SiliconEdge Blue SSDs are available in 64 GB, 128 GB and 256 GB capacities. The drives feature Multi-Level Cell (MLC) flash, custom TRIM support, SATA II interface, and 3-year warranty. SiliconEdge Blue has lower power consumption than WD’s competitors’ drives.

The Key Customers for the SSDs will be those mainstream consumers that want fast boot-up and applications access time; those in the market for mid-range to high-end desktop PCs and laptops, the gamers, and the enterprises.

The customer value proposition is a fast access time and features rich solid state drives that are highly reliable and low power consumption. Customer needs for the SiliconEdge Blue SSDs include durable, high quality, reliable drives that will last a long time or even outperform the life expectancy of the product. Customers also need quality customer service and reliable exchange and repair programs. SiliconEdge Blue SSD will come with 3 years warranty and back by WD’s world-class technical support.

With a Manufacturer Suggested Retail Price (MSRP) of $279 for 64 GB, $529 for 128 GB, and $999 for 256 GB, Western Digital Corporation expects to sell 150,000 SSDs (60,000 drives with 64 GB capacity, 40,000 drives with 128 GB capacity, and 50,000 drives with 256 GB capacity) in the first year. Sales are projected to grow 3% and 5% in the second year for mainstream consumer and enterprise, respectively. For year three through five, each of those year, the SiliconEdge Blue SSDs are expected to grow at rate of 8% and 10% for mainstream consumer and enterprise, respectively. By year three the estimated sales of SiliconEdge Blue SSDs is over $109 million. WDC has a total manufacturing and marketing cost of $179 per drive with 64 GB capacity, $300 per drive with 128 GB capacity, and $760 per drive with 256 GB capacity. In order to break even based on sales, marketing, and other expense, WDC will have to sell 100,000 drives with 64 GB capacity and 43,669 drives with 128 GB capacity. Based on the aggressive market growth goals, WDC should achieve their break-even point by Q2 of 2011. From the beginning (year one), WDC made a small profit of $1.95 million for the 256 GB capacity drives.

In order to have a successful product launch for the SiliconEdge Blue SSD, the drive must be promoted as a product for the mainstream consumer and enterprise in need of fast boot-up and applications access time, coupled with low power consumption and high reliability. Utilizing strategic partnerships with Original Equipment...
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