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Executive Summary
Rainbow group of companies is going to introduce the solar cell known as Rainbow Solar Cell. Our target is to meet up the electricity demand of rural areas of Bangladesh where electricity is not available. Our target market is rural areas which are crowded with moderately literate and illiterate people. We should focus on those people who have large demand of electricity and have financial capability to purchase it. Rainbow Solar Cell has the opportunity to get success because there is not much competitor in the market and a large scale of demand exists in the market. The current situation of electricity in Bangladesh also forces us to start such type of business. The following marketing plan is prepared for the starting the business from January, 2007.
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2. Situation Analysis
Electric fan which should cost much less energy. More powerful energy saving plate and battery. Long lasting power system.
Product Support In support of product sales, Rainbow Solar Cell offers a number of services such as installation and configuration, as well as warranty and post warranty support services. Consulting Services Rainbow Solar Cell has developed most of its products to date through projects delivered as part of its consulting services group. Services offered under the umbrella of the consulting services group include consulting, project development, and implementation. This enables Rainbow Solar Cell products to be closely tailored to customer needs.
management and customer care. Increasingly, these applications are becoming more interdependent and carriers are beginning to realize how important the solar electricity is in our daily life.
The profile for Rainbow Solar Cells typical customer consists of the following geographic, demographic, and behavior factors: Geographics
The immediate geographic area is the rural area of the southern part of Bangladesh consisting 130,000 people. Remote villages where electricity has not yet reached are our main market. People of those areas can get our product and also service from our local offices. The total target is estimated at 3,06,670. Demographics
General people. Nuclear family. An income over 40,000tk per year. The controller of the family should have at least primary education. Should have stability. Behavior Factors
Have interest in using electricity. Have mental stability. Have interest in developing current situation. 2.1.2 Market Needs 4
Solar cell is a specialized product, and first-hand knowledge of these activities is necessary in order to effectively promote and sell them. Many potential customers are unsure of the product and service they want to receive. Part of the value associated with solar electricity is the knowledge they possess about destinations. Customers look to the agency to provide them with sound advice for a bearable price. Rainbow Solar Cell is confident in its ability to do so. Rainbow Solar Cell can save the customer time and money, and help to ensure that they are satisfied with their solar cell using. 2.1.3 Market Trends One notable trend in the solar cell market is increased deregulation. Deregulation has increased competition and the need for differentiation. In many cases, the prices of parts related with solar electricity and related services have dropped. Additional trends include reduction of profit margins. 2.1.4 Market Growth More than 75% of people live in rural areas and among them lots of people are deprived of electricity. The present condition of electricity in Bangladesh is very worse. People are not getting continuous power supply though they have the connection. So, the market is heading toward greater demand. The total demand has been increased about 50% in the last three years.
2.2.2 Weaknesses The struggle to build up the clear concept about the power among people. A limited marketing budget to develop brand awareness. The difficulty of finding competitors in the market very soon.
2.2.3 Opportunities Growing market with a significant percentage of the target market still not aware that solar electricity exists. 5
The steep learning curve that Rainbow Solar Cell can be creative. The ability to develop many long-term customers because of some customer focused services.
2.2.4 Threats Upcoming Competition from similar service providers. Peoples unawareness. The inherent high cost of solar electricity production. A slump in the economy that will decrease customer's budgets for buying.
2.3 Competition
There are some other competitors existing in the market. Grameen shakti is serving among people with solar energy. Recently the Polli Bidyut has launched a program of delivering solar power with down payment system. Here cost is a great factor as people are not that much financially strong. So, shifting is very much possible here.
2.4 Services
Rainbow Solar Cell is a full service organization and sells standard machineries of solar cell. Additional services include assistance with installation, providing access to top-of-the-line equipment and supplies, post-sale services for three years after installation and free servicing for lifetime. The value added of Rainbow Solar Cells offering is its knowledge and expertise, competitive rates which will translate into increased satisfaction for the customer.
Effectively segment the market and target most demandable customers. Successfully position ourselves as solar cell specialists. Communicate the differentiation and quality of our offering through personal interaction and media. Develop a repeat-business base of loyal customers.
Market growth rate is quite difficult to measure. National economic conditions, which are not favorable to the people, will not experience significant increase in the next five years. Capability to produce effective, targeted communications that promote the benefits of solar electricity and Rainbow Solar Cells specialty focus and services.
3. Marketing Strategy
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3.1 Mission
Rainbow Solar Cell is aimed at capturing the maximum portion of the market with a lower profit margin. Our mission should be entering into all the houses where solar cell is required and serving the existing systems. Rainbow Solar Cell provides service activities that fit the client's desires, budget, and skill level.
Achieve an annual growth rate of at least 10%. Promote demand through strategic alliances with local inhabitants, local leaders, and businessmen. By the end of year three, achieve 15% of sales. Become the market leader of rural area. Generate 50% brand awareness within the target market and 20% brand awareness within the target business market by the end of next year.
Generate sales of approximately 50,00,000 in year one and increase sales 10% annually. Capture and maintain a gross margin of 12-20%. Earn an annul rate of return on investment of 7% after taxes over the next five years. Reduce the variable operating costs.
Promotion - Rainbow Solar Cell will employ a wide range of advertising communications and promotion to achieve its marketing goals. Research on the demographics of Rainbow Solar Cells target market suggest that the most effective communications will come through advertising in several specialty publications and via local radio.. Obsessive customer service is the mantra. Rainbow Solar Cells philosophy is whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercely loyal customer base that is extremely vocal to their friends with referrals. Positioning - Rainbow Solar Cell is the most facilitating alternative of electricity. Product management - Updated model, easy to handle, portable, durable, to be introduced improved model for industrial use in the next years.
Rainbow Solar Cells marketing budget for year one of operations is taken from the start-up investment and is equivalent to approximately 12% of anticipated first-year revenues. The marketing budget will be evaluated quarterly, and at the end of year one, adjustments will be made to advertising schedules, media vehicles, effective frequency, etc. as necessary. The following issues are relevant to Rainbow Solar Cells marketing efforts:
As a start-up, Rainbow Solar Cell has no baseline by which it can determine the effects of its marketing efforts on sales. Year two marketing activities will benefit from the financial results of year one operations. The marketing budget has been established based on anticipated revenues. Rainbow Solar Cell plans to employ the use of more sophisticated budgeting methods as a baseline is established. Much of Rainbow Solar Cell's marketing efforts will involve personal interaction with customers in the rural areas. Rainbow Solar Cell must attempt to conserve resources when possible, especially in the early stages of operation.
10 1,25,000 tk.
Assumptions Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 12,500 tk. 9,000 tk. 35,000 tk.
of income. Months three and four will see a steady increase in sales. Word will have gotten out from the advertising as well as networking that Rainbow Solar Cell is the new service provider of solar electricity and offers a high-quality service. Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.
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5. Controls
5.0 Controls
The purpose of Rainbow Solar Cells marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance:
Revenue: monthly and annual. Expenses: monthly and annual. Repeat business. Customer satisfaction.
Milestone Marketing plan completion Media campaign Opening Promotion Strategic Alliance Development Totals
Milestones End Date Budget 3/1/2007 12/31/2007 12/31/2007 12/31/2007 25,000 50,000 32,000 20,000 1,07,000
Problems generating visibility. Lower than forecasted demand. The entry of another already established competitor that recognizes the market potential.
Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities.
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