Marketing plan for E notepad

MARKETING PLAN
________________________________________
E - NOTEPAD

Submitted by:
DUONG TO UYEN (SARA)


Submitted to:
Professor David Grealy

April 21, 2013

( D I G I N O V. C O )
“Leading the digital revolution through innovation”

DIGINOV, a technology-oriented company blessed with one of the world's top teams, is well known
for high-quality and innovative technology. As a leading provider of 3C (computers, communications and consumer
electronics) total solutions, DIGINOV offers a complete product portfolio to compete in the new millennium.


Table of Contents


1.0 Executive Summary
Digital Innovation Company (DigiNov.Com) has established a strong foothold in a niche technology market
for Tablet devices. Since founded, it has been developing strongly year by year. It have so many braches in some
South East Asia countries like the Philippines, Malaysia, some European countries like England, Germany, France
and so on. The company has been handing out to market so many innovative products with high technology from the
strangest, hottest, and the most convenient tablets, magic; Now, it is planning to expand market to some South East
Asia, finally after doing research for a long time it decided to choose Vietnam and will hand out a new product called

E-Notepad in this market.
The potential market demand of 15 million units far outstrips the capacity of present suppliers and is growing
at a rate of 22% annually. DigiNov's success in taking advantage of this boom market is evidenced by its recent
growth in sales and profitability. Sales are projected to grow from the first quarter of 2014 total of $24,000 to
$140,000 by the end of the first year, and to exceed $1 million by the end of the third year of operations.

$ 1,000,000
$800,000
$600,000
$400,000
$200,000
$100,000
$50,000
$0
1.2 Company
2014

2015

2016

DigiNov.Com is taking advantage of an opportunity to become highly distinguished and recognized in the
Tablet Industry. It is the goal of the company to become established as the leading distributor of the E-Notepad
services in the Vietnam Area.
The company will be initially be formed by DigiNov Group in the Thai Nguyen and succeeded tremendously
in the market with the current company. Capitalizing on the growing Tablet industry and based on the success of E-


Notepad’s success, DigiNov has decided to expand into the consumer digital market by operating directly and create
a name for its product and services.

1.3 Product and Services
The products that will be represented by DigiNov.Com is the E-Notepad, an electronic notepad is a digital
writing pad that is the perfect marriage between a paper legal pad and an internal computing machine.

It is a

powerful productivity tool for busy people who must collect, enhance, create, share and store data.
The services will be on the form of the product’s offered software, customer services and technical help.
DigiNov.Com will offer the best customer service in all of Vietnam area. All staff members will ensure customers are
completely satisfied with the service they received at the E-Notepad.
1.4 Financial
The financial projections include the profit and loss statement conservative approach. The profit and loss
statement suggests that as the company grows so, too, will profits. Profits will begin soft with incrementally increase
over the first three years of operation. Profits are projected roughly 10.50% by 2014.
Although Cash Flows will be negative the first year, Cash Balance will dramatically increase over two years
through three. Each additional years will reflect an increase of roughly 50%
2.1 Marketing Situation
Nowadays, technology is developing strongly in modern life, human being tends to use machines instead of
hand- made. As technology advanced trends of the times, people like to use laptop, computer or others electrical
instruments to help them work faster and easier. However, laptop and computer are very costly especially a low –
income country like Vietnam. The lowest cost of a laptop is about $300 so not many people can afford especially
students. On the other hand, students is considered to be the one who really needs those kind of things to help them
explore information in our mystery life and support their study. Moreover, in common, Vietnam has so many schools
and universities and in particular, in the place that we are going to set up a branch is considered to be one of the
fourth provinces that have so many universities.


This situation shows that the demand of electrical instruments in Vietnamese market is pretty high but so
many people can’t afford the price of those kind of products which have already been in the market so to meet that
demand and also help Vietnamese student, DigiNov.Com decided to handout a new high technology product called

“E-notepad” with a cheaper price compared to laptop or computer. It’s only $100 each but has same function like
laptop or computer, more convenient and easy to use so that students can use it for searching information, especially
it also can be used as a electrical draft so that student don’t have to use draft papers any more.
2.2 Product
The Tablet “E-notepad” can be described as a device that has combined the best features of computers and
notepads. The end result is an electronic notepad that looks just like a paper-pen pad and you can use it to write notes
like you would do on a piece of paper. When you plug this device into a computer using USB cable, this will allow
you to transfer the drawings or notes to the computer.
Based on the file type that is supported by the device, it is possible to export your notes in formats just like
JPEG, text, PDF and more. These notepads come with rechargeable batteries as well as memory storage to keep all
the written information that you can transfer later to a computer. They are lightweight, smaller and easy to use when
compared to a laptop.
A digital notepad could be very useful when you want to take quick notes at office meetings and then transfer
the information to a PC without having to type it. Artists can also use this notepad to do a drawing or sketch in digital
format.
Features:

• Unique interactive interface, write,

draw,

make

•

hints or notes
Pencil interface, edit the content and

the interface

•

make it your own environment
Share your art with other, social

networking ,

e-mail

available

channels

or

communicate

through


•
•
•
•
•

Open platform for users to create extensions
70,000 pages of space on a 4GB SD card
USB compatible
Sound input and output

OCR integration, handwriting recognition software

2.3 Competition

Figure: The Handwriting Recognition Software

2.4 Macroeconomic Situation

• Social element: The totals of population in Vietnam are over 90 million people. Meanwhile,
population aged 10-24 years accounted for nearly 1 / 3 of the population so Vietnam has entered a
period of golden population structure with the youngest population group in the country's history.
• Economic of Vietnam: the economics of Vietnam is developing so people’s life is improved. People
have high quality of life, they have higher demand. They increase in disposable income; changes in
consumer spending patterns.
• Political forces: governments always have incentives to promote the products of developing countries.
3.1 SWOT and Issue Analysis
4.1 Objectives


By 2016, we expect the Digital Innovative Company to reach new levels of growth. We have set the
following objectives:

• To lead the generation of E-Notepad in Vietnam is the top objective and our Digital Tablet devices are most
effective than the others, and it’s more convenient reaching at least 15 million students per year.
• Products serving the entire tablet market in Vietnam in Year 2016.
• Achieve 25 percent market share of the tablet market in Year 2015 and 50 percent in Year 2016.
• Thirty percent of the market for buyers with budgets.
• Remaining thirty percent tablet market for trendy and smart.
• Seventy percent of the market-oriented universities, colleges, secondary and primary schools in
Vietnam.

• Thirty percent toward the dealer, small and medium businesses.
• To create unique upscale, innovative environment that will differentiate the DigiNov.Com from other businesses,
making it one of the most targeted digital market in the country.

• Raise awareness of the tablet in Vietnam and exporter from 2% to 25% in Year 2014.
• Target marketing in Year 2014 became the promotional products industry ranks third in smart
technology.

• Actively build awareness of the brand tablet with 70% of students, 10% of professors, 20% for
customers aged 22 to 35 years from Year 2014 to Year 2016.

• To produce net profit at the end by the end of the operation.
• Achieve immediate profits above 2% in the first six months of 2014 with 2 million units costs $100
•

on 1 product and at the end of 2015 a profit of 15 to 25%.
Achieve the rate of return on net sales in the previous 25% in December 2015.

4.2 Mission
DigiNov.Com’s mission is to develop cutting-edge Tablet “E-Notepad” solutions for appliance and equipment
makers who, due to the fast pace of technology, are under pressure to get their products to the market quickly.
DigiNov.Com achieves this by maintaining a small "think tank" style technical team, outsourcing the manufacturing,


and keeping a marketing offering which caters to the more demanding Tablet “E-Notepad” requirements, leaving the
simpler high-volume and price-sensitive market needs to the competition.
4.3 Vision
To engineer the world’s preeminent technology solutions in order to help unlock the value of digital content
creating the imagine innovations that simplify our lives and enable us to realize our full potential. It is technologies'
responsibility to accommodate us, not the other way around, because all devices should perform and communicate

seamlessly anytime, anywhere.
5.1 Marketing Strategy
Short marketing strategies are those that will bring a temporary boost in traffic. Although these techniques are
very important to the overall plan, they are only temporary traffic source and must not solely relied upon. Short-tem
marketing strategies include:

• Purchasing Advertisement
• Bulletin Boards
Long-term marketing strategies are those that will bring a steady stream of targeted traffic over time. These
strategies will continue to produce results today and tomorrow. Long-term marketing strategies include:

• Owned Website
• Freebies
• Signage
By creating a balance marketing strategy, using both short-term and long-term strategies, DigiNov.Com will
steady stream of targeted traffic to the store and website.
Using this simple formula when creating internet and store marketing strategy, and excelling at three, success
will be achievable.
The short marketing strategy will focus heavily on sales promotion, niche positioning in the market and
customer service with loyalty and retention sales.


5.2 Positioning Statement
DigiNov's positioning statement is to stay on the cutting edge of Tablet “E-notepad” device technology by
constantly improving its products ahead of the competition with such features as the OCR, handwriting recognition
software. DigiNov will target customers in the demanding technological, educational, and professionals sectors
rather than to market-segment a narrower field with lower E-notepad requirements which tend to be more pricesensitive.
5.3 Pricing Strategy
Diginov.Com pricing strategy will not be similar to the competitors. The company will not charge over, nor
substantially under, standard prices for the products suitable for education sectors. DigiNov.Com will be paying the

staff an hour rate as well as the commission for the service contracts that are activated which is more than what the
competitors offer. This will allow the DigiNov.Com to hire the best employees, and have a built-in motivational
factor that will keep them empowered to enhance their opportunity. Ultimately, this will provide a greater sales and
increased profits for Diginov.Com.

5.4 Promotional Strategy
DigiNov.Com will depend on several different channels for advertising to reach new customers. As the
company changes strategies, however, DigiNov.Com will change the way the products will be provided.

• Advertising
DigiNov.Com will differentiate the service from the competition by providing external signage that will
entice customers to the store. To further reach the customers, it will be using local newspaper advertising, radio and
cable TV to launch the initial campaign.

• Facebook Site


DigiNov.Com must be accord with the advertisement to the website by having it own Facebook that will not
only reach the Vietnam students but also students of the whole world.
5.5 Distribution Strategy
There are no immediate plans to wholesale DigiNov.Com’s products. There might be opportunities to
distribute some E-notepad devices to one of the major component wholesalers, but this could only be possible in
limited configurations. All sales are expected to be direct sales. This should be qualified as many major customers
out-source their manufacturing. Thai Nguyen University, for example, is a customer of DigiNov.Com, but they
subcontract to SRSR who actually purchases the enabling devices from DigiNov.Com. In the case of VARs, they
would purchase from DigiNov.Com and install them in the equipment being sold to someone else. With annual sales
volume projected reaching 30,000 in the third year, direct sales should not be a problem logistically.
6.1 Action Programs
The most important element in DigiNov’s marketing game plan is to complete programming of its products to
be compatible with the top operating systems. Completion is planned for the end of May 2016. As soon as this has

been done, partnering activity with those operating systems developers can begin in earnest. Informational releases
via email to O/S sales forces containing data specifications should be encouraged. Opportunities to speak at O/S
developers' sales meetings should be sought. This will be coordinated by the new sales manager position.
In conjunction with the above activities, a direct mailing to VARs should be undertaken. An up-to-date list of
300 VARs can be obtained through OCR Software. A budget of $1,000 has been provided for in the cash flow
projections.
Since many first impressions of DigiNov’s products are made by a visit to its website, it is important to give
DigiNov's website a face lift. The Cyber Design Group as well as other professional website designers are being
considered. A budget of $15,000 has been provided for in the projections. This is the shop window first seen by
potential E-Notepad device customers. The website design must put the desired image at the top of its priorities.
Included in this budget are some ad agency costs, as most Web designers are really technicians who have little


knowledge of the art of image building. The website technician and the advertising specialist need to work together
to get the right result.
To help increase awareness of and build the desired image for DigiNov's E-Notepad, advertising should be
done in targeted trade publications. A media specialist should be consulted to help in selection. In keeping with
Diginov's positioning statement, trade publications which reach projected market in the technological, educational,
and professionals sectors of the market should be favored. It is important to provide an adequate budget to make
certain of attracting notice. A media specialist can examine the "noise level" (the amount of competing ads) to
suggest how much needs to be spent to break through the noise level and be heard. Until a proper media analysis can
be done, a budget will be initially set for year 2014 at $50,000 growing to $250,000 in year 2016.
6.2 Sales Programs
The most important sales program is the program based on "partnering". By constantly being in touch with
the activities of OCR Software, and the operating system developers, and by developing relationships with their
extensive sales teams, referrals can be expected to VARs and OEMs who fit the parameters set in the marketing
strategy.
Once a solid sales prospect has been identified in this manner, more specific action can be taken directly with
the prospect. This action would include more technical discussions between DigiNov.Com developers and the
prospect's software developers. "Starter Kits" can be arranged which make it very easy for the prospect to integrate

hardware and software between the E-Notepad devices and the appliance. Once a starter kit has been sold, telephone
follow-up is necessary to convert the original opening into a substantial sale of 100 or more units.

Projected Profit and Loss


Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Healthcare
On-line Services
Telephone
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred

Net Profit
Net Profit/Sales

2014
$1,613,970
$641,752
$0
$641,752
$972,218
60.24%

2015
$4,437,000
$1,782,150
$0
$1,782,150
$2,654,850
59.83%

2016
$14,790,000
$5,940,500
$0
$5,940,500
$8,849,500
59.83%

$155,848
$125,793
$1,000

$2,628
$10,272
$1,225
$2,964
$1,200
$1,440
$12,000
$14,026
$0
$328,396
$643,822
$644,822
$7,030
$277,004
$359,787
22.29%

$313,400
$249,966
$1,000
$2,628
$25,650
$1,225
$3,500
$1,200
$1,600
$18,000
$28,206
$0
$646,375

$2,008,475
$2,009,475
$10,450
$869,141
$1,128,884
25.44%

$618,400
$438,955
$1,000
$2,628
$51,360
$1,225
$4,500
$1,200
$2,000
$21,000
$55,656
$0
$1,197,924
$7,651,576
$7,652,576
$3,700
$3,326,826
$4,321,050
29.22%

7.1 Projected Profit and Loss Statement

Projected gross profits for year 2014 will be strong and will climb even further in the second and third year.

Despite substantial investments in marketing (primarily advertising and sales staff), net profits before taxes are
projected to be high.
Explanations for projected expenses are outlined below:

• Advertising
The actual expenditures were used for January, February and March. This expense averaged $817 for 2014.
An additional $50,000 is budgeted for advertising during 2014, $150,000 in 2015, and $250,000 in year 2016.


• Documentation Printing
This relates to the specification sheets and manuals that are included with sold products. We project this
expense in year 2014 at the same rate ($96 monthly) as before. In years 2015 and 2016 we have increased this
expense to reflect the projected increased sales. We have assumed, with increased volume of sales, some efficiencies
can be had in per unit printing costs.

• Electronic Testing Equipment
The actual expenditures were recorded for the first quarter of 2014. This is a significant expense which came
to $1,430 before, but will increase to $500 monthly in 2014 and to $650 monthly in 2015 and $750 monthly in year
2016.

• Merchant Services
These services relate to fees paid to credit card companies when credit cards are accepted as cash payment for
a sale. These fees are about 3% (some more, some less) of the sales price. Actual figures were used for the first
quarter, thereafter, we'll assume fees to be 3% of cash sales.

• Tablet Parts
Actual figures are given for the first quarter. Thereafter, the historical monthly average of $542 is used for
projection purposes.

• Professional Fees

These include accounting ($95/month), legal and miscellaneous outside services such as photography, etc.
Actual figures are given for the first quarter, then $500 monthly is projected, increasing in years 2015 and 2016 to
reflect increased sales.

• Tablet Software


Actual expenditure is given for the first quarter 2014. Thereafter, an average monthly figure of $200 is
projected.

• Office Supplies
The actual figures are given for the first quarter, and $350 monthly is projected thereafter.

• Travel
Travel is kept at historical levels for 2014 but will double in years 2015 and 2016.

• Miscellaneous
Included here are professional books, minor bank charges, Massachusetts annual report, etc. Projected at
$200 monthly, increasing in years 2015 and 2016.

• Online Services
Kept at historical levels.

• Utilities
Averaging $100 per month. Are expected to increase as new space is acquired to accommodate staff hires.
Including gas and electricity.

• Insurance
Insurance related to a business policy which is expected to increase as additional office space is acquired.

• Depreciation
Fixed assets are represented by such items as a printer and an iMAC computer plus some software. Assume
depreciation at $1,000 annually.

• Rent


Currently two offices are rented. With the increase in staff, additional space will be acquired.

• Health Care
This relates to the health care plan for the two current members and is projected at present actual cost. It will
increase proportionally as new employees are hired.

• Contract/Consultants
These expenses are paid to independent computer technicians who regularly perform services for the
company. They charge $45/hr. The actual costs for the first quarter are given. The costs are projected at $2,200 per
month, increasing as sales increase.