University of science

Sales plan for ASUS Company

Group 7




Contents
Contents .................................................................................................................... 2
I. Introduction .......................................................................................................... 3
A. Executive Summary .......................................................................................... 3
B. Company Description ....................................................................................... 3
C. ASUS Products ................................................................................................. 3
D. ASUS Mission and Goals ................................................................................ 3
E. Core Competencies ........................................................................................... 4
II. Sales Plan: ......................................................................................................... 4
A. The Target Market ............................................................................................ 4
B. Technology Industry and Competitors ............................................................. 5
C. The needs for market and ASUS ...................................................................... 5
a) Market: ................................................................................................................. 5
b) ASUS: ............................................................................................................... 7
D. SWOT analysis: ................................................................................................ 7
a) Strength: ............................................................................................................... 7
b) Weaknesses: ...................................................................................................... 8
c) Opportunity: ......................................................................................................... 8
d) Threats: ............................................................................................................. 8
E. Vietnam market analysis .................................................................................. 8
F. The Marketing Mix ........................................................................................... 9
G. Sales Stategies ................................................................................................10
H. Forecast Expense and revenue in sales activities for the next 1 year salesplan.
12
References: ...............................................................................................................14


I. Introduction
A. Executive Summary
This sales plan has been made for all ASUS low-priceproducts. This is to show areas of possible
expansion for those devices. ASUS is an experienced company that has shown continued growth
over the past three years. This growth can be accelerated by taking advantage of the new
business environment with regards to tablet, computers and smartphones.
B. Company Description
ASUS offers a wide variety of cutting edge products from all in one PCs, tablets and
smartphones, to motherboards, optical drives and servers for commercial customers. ASUS
products have breathtaking features that grab attention. Being the leading motherboard
manufacturer (Tech In Style, The ASUS Story), you can find ASUS components in one in three
personal computers. ASUS recently launched the Memo Pad which is a tablet computer that will
compete with the iPad, and other tablet computers on the market. It operates on the popular
Android OS, and has Google Play installed which gives the user access to nearly 800,000
applications.
ASUS products can be found all over the world. They can be found at major and independent
retailers across the U.S and Canada. ASUS products are competitively priced to ensure that the
customer does not have to spend tremendously to have a great technological experience. This has
led to an 8.4% increase in profit over Q4 2011(ASUSTEK Q4 Investor Conference).
ASUS commitment to IECQ Hazardous Substance Process Management was recognized in
March of 2012 when they became the first Computer Company to Receive Prestigious IECQ
HSPM Certificate.
C. ASUS Products
ASUS have main 3 products line: computers, smartphones and tablets
D. ASUS Mission and Goals
The mission of ASUS is to offer products that enable our customers to reach new levels of
productivity and become the largest provider of computer, communication and consumer
electronics. ASUS deductive approach to product development has helped ASUS expand its
offerings from motherboards and processors, to PCs, tablet computers, smartphones, and
workstations as well. ASUS mission to offer increasingly innovative products to our customers
is fulfilled on a daily basis.
In the tablet industry, ASUS goal is to become the number two tablet maker in 2013 and the
number four tablet vendor in the market. ASUS also plans to gain more market share in the tablet
industry.
ASUS will achieve its mission by focusing on product innovation, staying ahead of the market
trends focusing on quality. Utilizing these attributes will ensure that ASUS is producer of the
latest technology with the highest standards.
E. Core Competencies
In order to maintain a secure competitive advantage, ASUS utilizes its core competencies which,
may seem easy to replicate, but is hard for competitors to duplicate. ASUS core competencies in
creating affordable, high quality electronics that are very innovative; creating truly bilateral
partnerships with manufacturers; developing a reputation for being the leading provider of
motherboards in the world; and time to market performance. ASUS will expand on these
competencies with the release of new products, marketing strategies and staying competitively
priced.
By building on these core competencies and ASUS current notoriety in the industry, ASUS will
continue to keep and grow its competitive advantage in the marketplace.
II. Sales Plan:
A. The Target Market
The main tablet users are mostly male, with a high income and education. That does not mean
that tablet computers are not being bought by other consumers. Women are growing in their
tablet use as well. Women now account for more than 50% of tablet users. That is up from 47%
three years ago. Tablet users also range in age from 13-65 and vary with income.
With such broad target market, ASUS can market the ASUS products will do very well. The
goals should be to target the consumers with the highest income. This may mean marketing to
business professionals and other occupations with a high income.











B. Technology Industry and Competitors

Currently the major competitors in the tablet industry are Apple (iPad, iPad Mini), Amazon
(Kindle Fire) and Samsung (Galaxy, Galaxy Note). ASUS market share rose 2% in 2012 at the
same time it claimed the title of number four tablet vendor. This coincides with the trend that is
going on now. Tablet use is on the rise and use of the Android O.S is on the rise as well. Both
trends are projected to continue for the next four years at least.
The reasons that our competitors have the market share that they do are due to better features and
tablet design. These obstacles can be overcome by offering custom design for a little extra.
ASUS can also offer upgrades on components like the screen and processor as well. The
relatively low price of the ASUS products is an advantage in this case. Currently the income of
the middle class is growing, so consumers will not mind spending a little extra when they can see
value in it.
C. The needs for market and ASUS
a) Market:
In general, the demand for tablet is still high and keeps increase in 2013 and 2014. Sales of most
products in the information technology segment such as computer or Pcs parts are decrease but
the sales of tablet retains strong growth.
Size of the screen:
However, customers demand is very high and variable. Nowadays, people tend to choose big
screen tablet with HD resolution. That demand is inevitable, with the development of
technology, all electronic devices such as televisions, computer screen or cellphones must have a
large display to show more information. All new premium phones product on the market usually
have a 4 to 5 inches screen, which is one the most important reason why tablet must have much
bigger screen. Customer choose tablet because they want a new electric devices which have the
same functions like their phone without calling or texting through the telephone network. Many
big brands in making tablet usually choose 7 to 10 inches for their tablet. Bigger screen will also
bring experience to surf the Web, read books, play games and watch movies better.
Technology:
Along with the big screen, the beauty of it is also a top priority when choosing tablet. Different
brands using different technology in making the screen to bring the most beautiful graphic for
customers.
Connection:
The fact that the price of a 3G tablet is much expensive compared to the version without 3G. Wi-
Fi feature is only necessary but not sufficient. In order to be able to online anytime, anywhere,
tablet should have 3G connection. With 3G, you can look up information, and in case of need to
find a location with Google Maps that is almost built in the current tablet form, all roads and
locations is available almost in hand.
Entertainment:
People have different needs of entertainment, but overall, everyone using tablet for their work
and also for entertainment. Tablet must support good gaming and watching movies experienced.
The tablet must have JAVA in it because many applications or website today using and running
by JAVA technology. Also, tablet must support many kind of video format in high resolution
and the subtitles.
Storage capacity:
If you are a "fan" of movies or books, you often have the habit of storing many movies and e-
books on mobile devices. However, they are limited by the storage capacity of the tablet. With
the Android tablet line is okay because they usually have slots for SD memory expansion card
slot. But with the tablet form line "exclusive" as the iPad is really a problem. Capacity of
available iPad is fixed and it does not have SD slot to upgrade your storage space.
Battery endurance:
It would be annoying if you have to carry the battery charge all the times with you. A tablet has
the longer battery life always welcomed by customers. Tablets replacing books, newspaper or
even computers in some cases, customers using it regularly, the tablet must have used time more
than 10 hours.


Prices:
Price is also a problem when customers choose to buy tablet. The needs are inevitable, but the
customers can choose any kind of tablet brands they want depend on the price. Many
manufacturers trying to balance performance and cost so they can set a reasonable price and
increasing their sales volume.
b) ASUS:
In order to meet the demand of tablet, ASUS must improve the quality of their tablet in many
aspects such as the screen, storage and battery. They must invest more money into develop new
technology using on their tablet; also invest more into production lines and workers.
Bigger screen with the technology for a better graphic so ASUS should produce 2 to 3 different
screen size between 7 to 10 inches full HD
Next improvement should be the variety of features ASUSs tablet offers to customers. Same
tablet come with different version features would attract more customers also reduce the prices
and balance the cost in making tablet, giving more options for customers also mean increasing
sales volume for you.
Chip development or using third-party processor which have a high processing speed, means
increasing the customer experience when gaming or watching movies.
Last but not least, the design is very important, when looking at a new product, the first thing
customers see is the design. Beautiful, eye-catching design will attract more customers want to
try and experience your product, and the opportunity to sell products also increased.
D. SWOT analysis:
a) Strength:
Internal strengths of the company and product include itself. The product of Asus provides many
features appealing to target audiences. The product also provides consumer with a way to
develop brand loyalty to Asus because of the strong brand. Asuss tablet is small, compact size is
appealing for on-the-go users like college and university students or even business people. Low
price and high quality as well as the durability of the Asuss products is also another strength
because many tablets that are this small and portable do not have as many features, and many
tablets in the market that have same features will have higher point. All these strength allow
Asus tablets to be much more accessible to consumers in Vietnam. Also in Vietnam Asus has a
lot of promotions which allows people to be more aware about Asus brand as well as their tablets
products.
b) Weaknesses:
Asus in Vietnam does not have official stores to sell directly to customers they have to go
through a lot of distributors and retailers such as PhongVu, FPT shop, MaiNguyen that leads to
Asuss desired market reach is difficult to achieve. Moreover, lacking of online presence in
Vietnam market is second weakness of Asus Selling team because the online market is essential
for displaying information and selling products. A weak online presence can result in lost
opportunities for Asus selling team to sell products.
c) Opportunity:
Vietnam market still has strong demand in tablets so this is a huge opportunity for Asus to sell
tablets in this market. In addition, Vietnamese has low income so that low priced tablets of Asus
will be more attractive for the consumers. Innovation also contributes to the opportunity of Asus
in Vietnam market. Greater innovation can help Asus to produce unique products and services
that meet customers needs to compete with others brand that already have strong position in
Vietnam market. Moreover, because Asus is a strong brand so a lot of well-known retailers and
distributors will seek to partner with Asus. This will allow Asus to use reputation of other
companies in order to build its own and grow its customer base.
d) Threats:
Competewith lots of well-known brands in Vietnams market such as Apple, Samsung and Sony.
E. Vietnam market analysis
Most analysts remain optimistic that the growth of the tablet market will "forever high", or at
least maintain as well as it now until a few billion people on the planet to own this kind of device
- like smartphone.
The problem is that all these predictions seem no longer accurately. Sale volume of tablet has
slowed dramatically and likely frozen in recent times
The reasons to explain why the market suddenly sank, some of the main reasons is user rate
increasing, leading to saturation, price high, lack of product innovation that contributed to the
impasse tablet today. But it does not seem to be the key. Business Insider has released a solution
they think is the real cause of that market collapsed which is the tablet does not solve an urgent
need that the laptop or smartphone is impotent. There is no obvious reason to convince users to
own 2 or 3 personal technical devices are expensive as tablet, laptop and smartphone. People can
meet most of their needs with owning one or two devices mentioned above. For many people, a
smartphone is just enough, especially when a large screen smartphone is looklike a small tablet.
If forced to choose one single device, the majority would choose a smartphone, rather than a
laptop or tablet.
If anything can change the habit of using the technology, it is only the price.
If the product price is low enough, people will not hesitate to purchase more devices even if they
are not really useful or not to be held regularly. This is also the main reason that Android tablet is
surpassed consumption than the iPad because they have not only the reasonable price but also
mass amount of applications.
Both in terms of performance and price, ASUS is closing the gap with Tablets, and the Tablets
are becoming increasingly common. In this rapidly growing and competitive market, Taiwanese
companies Asus have maintained high growth rates, and their successes in the Asia-Pacific
region, emerging markets, and Europe have attracted much attention.
Analyzing global Tablets market development, including a shipment volume forecast in 2014
and shipment growth rates of major brand-name vendors; examines Asus Tablets market
strategies, including product strategies, price strategies, and channel strategies; looks at Asus
R&D expenses, marketing expenses, and revenue by product type.
Field FonePad integrated ability to call and SMS as same as a smartphone, cheap Memo Pad
with many sizes to choose are helping Asus has a sustainable standing in the tablet market in
Vietnam. FonePad was released a long time but still compelling consumers though their better
prices, and their abilities a regular smartphone. Products can help users more useful to support a
dual SIM maximum entertainment instead of having to buy both a phone and tablet. According
to market research company GFK, 2013, Vietnam's market consumes about 17 million mobile
phones, including smartphones, reached number about 7 million units, up 40% in number and
80% of sales market, making Vietnam became second largest of national growth rate of product
groups tablets in the world.
F. The Marketing Mix
Products Strategy:
ASUS releases many medium products which is included 3-in-1: computers, tablets and
smartphones. Those products still obtain premium features and have huge applications online
store.
For business professionals, there are more than 50 applications for office features like word
processors, PDF readers, spreadsheet creation and management and CAD drawings. Oovoo,
Skype and Google Hangouts are all available for those meetings on the go.
Distribution Strategy.
There are numerous avenues to the consumer for tablets. According to a study by Google,
consumers spend an average of four weeks researching devices before making a purchase.
According to the same survey, online ads contributed to nearly 70% of the purchases. According
to infographics from IntoMobile, more than 45% of referrals come from FaceBook. Looking at
these numbers leads me to believe that online ads will be the driving force behind sales of our
tablets.
ASUS products will be available at all of the major retail outlets like Phong Vu, Nguyen Kim,
FPT shop which often located in big cities of Vietnam such as Hanoi, HCM, Da Nang...
Promotion Strategy
ASUS participates in many conferences and industry specific trade shows every year. ASUS also
holds three digital promotion competitions every year. I think that some ads taken out on social
media sites will do well. Besides community outreach ASUS does not currently any advertising
of its tablet computers to consumers. Online advertising, specifically promoting the ability to get
upgrades for the device will be instrumental in increasing sales of the ASUS products.
Pricing Strategy
The price will be different for custom designs and upgraded versions. Value adding features like
upgrading the screen, unique colors or upgrading the processor should be the only thing that
increases the price. By not increasing the overall price and offering upgrades, you leave the
ASUS products to a wider market and ensure its survival in the future.
G. Sales Strategies
Our company must clear our inventory, selling all the old products to prepare for new shipments.
This task must be finished before August 2014. So in this situation, we operate big sale
promotion for all products from 7% to 10% to increase sales volume.
In order to boost our sales volume, we come up with 1 year plan started from July 2014 with a
lot of promotion for our new products. All of those promotion focus on many holidays in
Vietnam. We forecast that the sales volume of our company will increase approximately 10% or
15% at Vietnamese market.
First of all, we started to receive the orders from our retailers and distributors in Vietnam for the
new products which we will release on Christmas and New Year. We forecast that the sales
volume in this vocation will highest in the year and will increase more than 10% compare with
the same quarter last year. Our department will work with Manufacturing Department prepare
the volume of products which we are going to sale for next 2 quarter and Marketing Department
to support our new promotions. In the other hand, set the goals for our retailers to achieve the
higher commission for example they will get 2 or 3% more when they meet our sales target.
Moreover, we send our sales representative to their store to sharing their sale experience, support
about the techniques and skills how to deal with customers and help customers in retailer store
know more about our products and boost our sales volume. We intend to send 20 sales
representatives to each retailers and distributors. In addition, we will run some events and
promotions for our products on some special vocations such as:
New school year is coming; the demand for new computers, laptops or tablets by student is
rising. To catch that trend, our sales team offers a promotion for new student. In detail, any
student have gifted certificate will have 10% discounts when buying our new computers or
laptops, those students must bring their certificate or a copy of it along when buying our
products. This promotion starts from 5
th
September 2014 until 30
th
September 2014.
After new school year season, our next promotion would start in December, in Christmas
holiday. Because Christmas is very close to New Year holiday, so this promotion will take place
in 23
th
December 2014 and 30
th
December 2014, create opportunity for everyone to have enough
time to prepare a present for their loved one. In this event, every ASUS products will discounts
for 10%, however, each person can only buy 1 discounts product, from the second product, they
must pay a full price, this regulations we created in order to let everyone participate in this event.
Our third event in a series of promotions during 1 year occurs in 8
th
March 2015, in International
Womens day. Nowadays, laptops or electronic entertainment devices are widely used and very
popular. Modern women are also preferred the electronic entertainment products such as men.
Understand that, ASUS creates and event in 8
th
March 2015, every woman will get a 10%
discounts on each of our products. In addition, in that day, everyman will have a chance express
their love through a gift from ASUS. Everyman buys ASUSs products from 8 million VND or
more, they will get a 15% discounts coupon as a gift to their loved. This coupon only be used by
woman.
Our final event will be in 1
st
June 2015. This day is International children's day. Today, children
typically seek to electronic entertainment devices such as phones, computers or tablets, rather
than playing with toys. That led to the demand of electronic devices by parents is increasing. To
capture this, our sales team creates this final event in 1 year plan, discounts 12% for every ASUS
products. To make this happen, every customer must bring their kids with them, it is not
important if you have children or not, if you want to give gifts for your nephews, just take them
with you, it only happen in 1 day.
We predict that in the end 2014, Asus will increases 191 million dollars in revenue in total. The
company hopes the revenue will continue to increase in the next two years by using sales plans
and marketing plans. Asus uses a four-pronged smartphone strategy that includes quality,
innovation, user experience and price. Moreover, it also builds its brand to attract customers in
mature markets and developing markets. Asus relies on innovative product design and aggressive
prices to support branded revenue while this strategy is aimed at consumers in emerging markets,
Asus will also continue to use competitive pricing to attract cost-conscious consumers in
midrange markets and uses its previous experience on producing small-sized and low-priced PCs
during the netbook era to cost-effectively and successfully build share in the low-end hybrid
notebook space. Low- price will differentiate Asus with competitors and help the firm attract
consumers and educators. Asus will target business customers looking for a video conference
solution Asus make a differentiated entry point into the enterprise market. The device will help
Asus gain commercial market share to augment the firms largely consumer revenue base.


H. Forecast Expense and revenue in sales activities for the next 1
year sales plan.
We intend to sell 40,000 units include PCs, Tablets and Smartphone in Vietnam market for next
12 months. The average price will set for PC will be $700, Tablets will be $250 and Smartphone
will be $200. And the cost of goods sold for each is $500 for PC, $120 for Tablets and $80 for
Smartphone
REVENUE

Products
Volume sales
(units) Price/unit($) Revenue ($)

PCs
12,000 700 8,400,000


Tablets
20,000 250 5,000,000


Smartphone
8,000 200 1,600,000

Total 40,000 15,000,000





COGS

Products Units Price/unit ($) COGS ($)

PCs 12,000 500 6,000,000

Tablets 20,000 120 2,400,000

Smartphone 8,000 80 640,000

Total 40,000 9,040,000









Cost for sales activities

Cost for sales activities $
Phone bills/communication costs


70,000
Salaries


360,000
(100 sales representative, $300/months/person x 12 months)
Packaging ($2/ units)


80,000
Shipping


200,000
Commission for Retailers (7% revenue)


1,050,000
Promotions (10,000units will discount 10%)


400,000
Others expense


100,000
Total Expenses

2,260,000
Profit

Revenue

15,000,000

COGS

9,040,000
Total
Expenses

2,260,000

Profit

3,700,000

To conclude, our sales plan will bring back to the company the profit which is nearly four
million dollars from Vietnamese consumptions. Vietnam will be the potential market for ASUS
in next few years.



References: