Introducing Xo Computers to Colombia

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Introducing XO Laptops to Colombia

Executive Summary
This report provides an analysis and evaluation of the situation concerning XO Computers. Included in this analysis are marketing objectives, product adaptation, promotion mix, channels of distribution, and price determination.

Although the main use of these computers was meant to be sold to schools for a low price, our company has found that these computers can be successfully sold in other markets as well. In Colombia, we can market our XO computers to both the rich and the poor. We will aim to target children of Colombian coffee farmers who strive to learn but cannot afford expensive technology. In fact, there are 618,199 households in the coffee-growing region of Colombia.  In addition, there are 653,471 children aged between 5-19 years old (average of one school-aged child per household) in these areas.  About 39% of the population in the coffee-growing region (made up of Caldas, Risaralda, and Quindío regions) did not finish primary school and/or secondary school. So, we believe that there is a large market that would be interested in our product.

The price will be set at $250, which we believe is a reasonable price. Based on the average income of a Colombian worker, we believe that our product will be well received in the Colombian coffee regions. We believe that the adults will want to invest in their child’s future, as well as buying a well-made piece of technology for an inexpensive price.

Table of Contents
Introduction4
Part 1: Market Audit and Competitive Market Analysis
The Product5
The Market7
Part 2: Preliminary Marketing Plan
Marketing Objectives9
Product Adaptation or Modification11
Promotion Mix13
Channels of Distribution16
Price Determination18
Appendix20
References21
Introduction
The purpose of this marketing plan is to reach out to children who work on the coffee farms. These children are no longer able to be in school due to working conditions to support their families. XO Computers would like to help these students continue their education, while still being able to help their families by working on the coffee farms.

Our laptops will follow a similar design that XO Computers already has. The major adaptation that we will make is the color of the computer. While the white will remain as the primary color, the accent color will be yellow so as to not offend the market.

The needs of our target market, children that work on coffee farms, are simple. Primarily, the children want to further their education and secondarily, they would like to still have fun. Our product, XO computers, addresses both of these needs. XO Computers are all about education. They promote creativity and open-mindedness, which allows a child to be more open with education. The XO Computers also have activities where the children can connect to surrounding laptops and participate in activities with other children. This not only allows a child to have fun, but to also create relationships and friendships with other children.

PART I: MARKET AUDIT AND COMPETITVE MARKET ANALYSIS

The Product
“Durable, functional, energy-efficient, responsive, and fun,” (laptop.org) are all strengths that can be expected when using an XO computer. These laptops are made to withstand the harsh environments of developing countries: rain, humidity, and heat. The XO Laptop is light-weight for easy portability and durable to withstand shock. Durability is also doubled when not in use. The software used with the XO Laptop encourages learning and growth, rather than instruction and strictness. This allows a child to explore and develop their creativity, which is so often lost once schooling has ended and life becomes a rigorous routine of work. To increase creativity, there is another benefit to using the XO Laptop: if there is more than one laptop in the area, there is an instant...
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