Our marketing strategy is designed to support our successful entrance into the competitive PDA market. We plan to build brand awareness and image while emphasizing our competitive superiority based on innovation quality, and value. Using all elements of the marketing mix, as well as service and internal marketing, we will educate our targeted segments about the features and benefits of our new PDA and motivate purchases by first-time users as well as PDA owners seeking to trade up. Although television advertising is not affordable under start-up budget constraints, we \vill use radio, online, and other media to reach our targeted segments in creative and effective ways. The following sections examine our mission, marketing and financial objectives, target markets, positioning, strategy, marketing-mix elements, service and internal marketing, and marketing research plans. MISSION
Sonic's mission is to produce and market high-quality, value-priced PDA products that enable U.S. consumers and business users to use voice recognition to organize data and stay in touch whenever and wherever they choose. As this mission indicates, we have chosen to operate in the U.S. market for handheld computing devices. Our core competence is producing quality electronics with innovative features, notably the incorporation of unique voice recognition technology for hands-free operation. We define our vertical scope as manufacturing Sonic-branded products for distribution through a network of select online and computer retailers and office supply superstores in the top 50 U.S. markets. Geographically, our scope initially covers the 50 states; in later years, we will consider expanding to the Canadian market and, if demand is strong, beyond. MARKETING OBJECTIVES
Our primary marketing objectives are to:
Achieve first-year unit sales volume of 240,000, which represents a projected market share of 6 percent with one model in product line. Increase second-year share to 10 percent, based on sales of two models in product line. Generate 40 percent brand awareness within the consumer target market and 50 percent brand awareness within the business target market by the end of next year. Arrange for distribution through Amazon.com and through the leading computer and office-supply retailers in the top 50 U.S. markets within 3 months, followed by distribution coverage in the remaining major metropolitan areas within 6 months. FINANCIAL OBJECTIVES
Sonic's primary financial objectives are to:
Restrict first-year losses to less than $10 million and seek a 10 percent profit on second-year sales of the original product. Achieve first-year total sales revenue of $60 million, based on an average wholesale price of $250 per unit. Earn an annual rate of return on investment of 15 percent after taxes within the first 4 years.
On the consumer side, the primary target market is middle- to upper-income professionals who need one portable device to coordinate their busy schedules and communicate with family and colleagues. These consumers prefer lower-priced PDAs with expandable memory and functionality. The secondary consumer target is college students and graduate students who want to organize their school, work, and personal schedules, input and access information at any time from any location, and stay in touch with family and friends. On the business side, the target market is mid- to large-sized corporations that want to help their workforce stay in touch and input or access critical data on the go. These buyers want durable, powerful, easy-to-use PDAs that can operate customized business applications. The secondary business target consists of entrepreneurs and small business owners who need to stay in touch and organize their busy schedules...