BMK 501 Marketing Management Tutor-marked Assignment 2 MARKETING PLAN I. Executive Summary Introduction Due to the increase of health awareness among Malaysian and the development in the field of audiology, the number of individuals diagnosed with hearing impairment has increased tremendously. This hearing impaired population are looking for a solution to help them in their daily life communication. The existing hearing aids in the market are cosmetically unappealing and fail to deliver the sound quality that meet users’ expectation. Problem statement Oticon, a Denmark based hearing aid manufacturer, believes in the potential of hearing aid industry in Malaysia. Oticon would like to bring in the Denmark hearing instrument technology to the hearing impaired population in Malaysia. However, the hearing aid industry in Malaysia is dominated by Siemens, a Germany company over the past decades. Objective Oticon aims to increase its market share in Malaysia from 3% to 20% in one year. Oticon targeted retail sales of RM2, 074 000 from its three hearing aid centres (outlets) located in Penang and Kuala Lumpur. Secondly, Oticon aims to achieve gross sales figure of RM1, 476 000 through the supply of hearing aids to the 30 existing hearing aid centres in Malaysia. The projected net profit is RM1, 584 400. Third objective is to give a good profit margin of 55-60% to the dealers (hearing aid centres). Fourth objective is to keep the hearing aid price compatible with other brands while up keeping the quality of its hearing aids. Strategy The product being introduced is Delta, a unique hearing aid with premium sound quality. The target market is the upper middle and upper class. There are three prices 0
(RM4000, RM4800 & RM8200) depending on the features (frequency channels) and microchip. Delta is available in Oticon’s retail outlets (two in Kuala Lumpur and one in Penang). Another distribution strategy is through the existing hearing aid centres in Malaysia which is currently prescribing Siemens hearing aids. Action plan The first step is to introduce Oticon’s product to the audiologists (a healthcare professional who diagnoses hearing impairment and prescribes hearing aids to patients)
government hospital and private hearing aid centres through a workshop or seminar. Then demo set of the hearing aids are given to the audiologists on loan basis so that they can try it on the patients. Advertisement in the newspaper and distribution of printing material such as brochures and banners are effective tools to promote and introduce Oticon to the public. Next, Oticon will give promotion in order to attract customer. The promotion chosen is the extension of warranty period from one year to 5 years. Conclusion The marketing plan ought to be monitored and the outcome has to be measured for the company’s continuous improvement. If the plan fails to meet the objectives set, Oticon has to identified the root cause and modify its marketing plan accordingly. Apart from this, Oticon has to continuously develop innovative and effective solutions population. to provide the highest possible satisfaction to the hearing impaired
II. Current marketing situation Product The product chosen is hearing aid. Hearing aid is an electronic device that amplifies sound so that it is audible to the individual with hearing loss. The first transistor hearing aid was introduced in 1953. With the development of the transistor, the aids were able to become smaller and more powerful. The use of microchips for programming hearing aids was introduced in 1985.
Today's modern electronic hearing aids convert sound pressure waves into electricity by a microphone. The electric impulses are then amplified through controlled electronic circuitry. The amplified electric impulses are then reconverted by a receiver to pressure waves at a much more intense level to be presented to the impaired ear. Different styles of hearing aids:
Previously, hearing aid was...
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