Rising Technologies private limited Marketing Plan Hawk-Eye Securing you with ease

Submitted to: Sir Sami Hamid Submitted By: Zehra Abid Saba Khan Sarmad Hassan Jibran Ahmed Syed taha ahmed

Table of Contents
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Table of Contents Executive Summary Situational Analysis (SWOT,PEST & Market Analysis) Market Needs & Market Growth Competition Sales Forecasting Break Even Analysis Branding Strategy Brand Equity Value Proposition Key to Success Segmentation,Targettig,Positioning Product Price Place/Distribution Promotion, Marketing Objectives, Marketing Strategy Promotional Activities Controls

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Executive Summary Page | 2

THE Rising Technologies have planned to launch an innovative new product in market, which made for corporate sector named HawkEye. Although, there are many types of Security & safety products available in the market but due to our products unique 4 in 1 combination which is CCTV+ Smoke Sensor+ Mosquito repellent Air Freshener such innovative features, highly competitive price and worth while customer services make it distinct from competitors and a unique brand in CCTV industry. We found that an increasing number of cities, industries, public and private sector are deploying CCTV surveillance and fire detection systems to monitor and protect their Valuable assets. Our research, in this regard, found that Technological advances; declining costs, and heightened security concerns following the 9/11 and Mehran base terrorist attacks have led to rapid diffusion of both CCTV surveillance and fire fighting devices. Further, the growth rate of this industry, which was 70% after 9/11, jumped on to 80% after Mehran base attack, which is commendable. The infinite demand of surveillance and fire fighting devices did grab our attention to enter in this industry. The chosen segment is very attractive as there are less threat in terms of competitors and new entrances. The import data revealed a huge investment made in this sector, which is 654 million $ 66% of total import of fire and security products. Our competitors sales trend showing continuous increase in sales and meeting targets that shows how much potential this market has. There are number of ongoing mega projects in the country that provides us opportunities for profit maximization. Prevailing profit margin in this industry is 30%, which can be challenged, as our product is unique and would appear strong brand. The Rising Technologies will sell their products initially through our sales representatives, websites and mail this direct channel will allow Rising Technologies to achieve our margin and maintain a close

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relation ship with our customers that is essential for producing products that have true market demand. Our forecasted sales consist of 99.2 million where as the total cost is 90 million that gives us 9.2 million net profits for the first year. Rising Technologies will be able to achieve its break-even point after two-quarter sales .the break-even point would occur on the sales of 7676.388 units at this point we would have achieved our fixed cost. The Rising Technologies will achieve fast, significant market share that Will be achieved through a solid business model, long-range planning, strong management, and supportive teams. We are very positive and certain that the launch of this product would be a success.

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SITUATION ANALYSIS: Rising Technology being a new firm need to develop a strong product and brand awareness and the key to the development and awareness of brand will be its marketing strategy. The product named as HAWKEYE will focus the safety and encourage the secure life of both corporate sector and citizens. The availability of the product at accurate stage will grow the customers as well as enhance the healthy profitability and ensure the maximum deliverance of technological benefits to the technological industry. SWOT ANALYSIS: The internal strengths and weaknesses of Rising Technology and the environmental opportunities and threats that we face are as follows. Strength: The product is the combination of 4 products i.e. C.C.TV, smoke/fire alarm, mosquito repellent and air freshener. It is based on latest technology called VIDEO IMAGE SMOKE AND FIRE DETECTED UNIT (VISFD) and provides a cost effective solution and composite visual output. It has strong immunity to false alarm. The mosquito repellent air freshener is made from pure natural ingredients, environment friendly with nice fragrance and entirely harmless for humans as it is GEL type. It is a pro-employer and pro-employee product. Weaknesses: Being a new operating company, might face difficulty in developing the brand awareness and image and to create the goodwill of company. Short product line may cause difficulty for the company to penetrate in the market. Improper product knowledge and improper sales force could be a hurdle to develop the customer base and companys benefits. Opportunities: Due to security challenges there is a rapid growth in the demand for security products. Contribution in the market growth with technologies and innovations. Provide product knowledge and trained sales force to introduce and operate latest technologies for bringing the technological advancement. Proper awareness of brand and product to the customer can shapely increase the companys productivity. Page | 5

Threats: Competition from the existing entrants as well as the market leaders is the major threat being a new company in the market. The technology usually associates with power supply and in Pakistan power failure is an issue that may influence severely on the companys efficiency. Technology shift is another factor that may cause threat for the company and company should work proactively to eliminate this factor. The only important factor that can challenge the success of this industry is PEACE said ~Major Haider Naqvi Manager CCTV division, RESCO. PEST ANALYSIS: The pest analysis captures the political-legal, economical, sociocultural and technological factors facing Rising Technologies. Political factors: Change in government policies and regulations directly affect the buyers. Severe terrorism and violence in the country made the government to take precautions against terrorist attacks, which enriches the demand for the security apparatus in private and public sector. High rate of false alarms in private, commercial and public sector buildings, the police force have to reserve an emergency response for those alarms. Economic Factors: The industrial sector, which mainly consists of factories and warehouses, has a strong demand for security, fire protection and healthy environment. Insurance companies can have strong influence on security and fire-protection markets by making conditions in their policies and by offering discounts to customer using certain type of equipments. In Pakistan, the governments aim is to counter internal security problems especially after MEHRAN base attack and this is the reason imports relaxation on security and fire fighting accessories has been given. Socio-cultural factors: Ability to assimilate with uncertainty. The perception of society, usually companies consider the use of latest technology as a status symbol. Page | 6

Security has to be achieved without making public areas look depressing and ugly. Industrialist need a product that is user-friendly, easy to install, cost effective with zero tolerance to false alarming

Technological factors: Technical innovations occur constantly in security industry that regularly undergoes development and improvement. In Pakistan, the latest technology is neglected, should be overcome by providing knowledge and awareness of latest techniques. High security challenges in Pakistan demand latest and up to date technology. The Rising Technologies is in such business for which all factors of PESTEL analysis seem to be working well this is the reason we studied the market opportunities more deeply and widely which are as follows. Market Analysis: The following information, facts have been taken from Jason Mumtaz, UK Trade & Investment Office British High Commission.

Pakistan Key Statistics:

6TH Largest country in the world

Population : 172 million Age Structure (19years or below): 58% ( 20-39years ) : 27% GDP (2009-10) : US$ 172 billion GDP Growth Rate (2009-10) : 4.1% Per capita income (2009-10) : US$1095 Total Imports (Jul09-Apr10) : US$ 28.1 billion Total Exports (Jul09-Apr10) : US$ 15.9 billion Labour Force : 53 million Rate of Inflation : 13.3% Moodys Rating : B3
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Both corporate sector and citizens are investing heavily to enhance security apparatus of their facilities and protect their property but we are emphasizing on corporate sector initially.

A Promising Marketplace for Fire & Security Industry There is growing use of CCTV, access panels, intruder alarm system, personal security and anti-car theft systems etc. Construction of new shopping malls, hotels, airports, industrial cities, expansion of existing port facilities is increasing demand for security and fire fighting equipment. Currently there are 155 fire stations working in major cities combating 900-1000 fires per year There are 33 Airports, 3 Sea Ports, 13 Dry Ports, 20 National Highways and 10 Motorways in Pakistan. Road network is over 260,000Km Pakistan is emerging as an important market place for security products in both public and private sector. The country is experiencing rapid growth in the demand for safety equipment, personal protection, surveillance, access control system. As a result, the sector has registered imports of over US$1billion in 2009-10. Major products include Safety and Security US$654m, Emergency & Rescue US$155.24m, Fire Fighting US$105.78m and Work Safety US$94.68m.

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Other Opportunities. New International Airport in the Federal Capital is due for completion by 2013. Government is also planning to build a new International Airport in Gwadar, Baluchistan. A number of Power Generation Projects are being constructed in the country under private sector. There is a multibillion-dollar Mashal LNG import project in the pipeline. This project will help meet the growing energy demand of the country. There is an ongoing expansion project of Qasim International Container Terminal at Port Qasim, Karachi. Its capacity will be increased three folds. New blocks are being awarded to O&G companies in Pakistan to encourage Exploration and Production activity in the country. MOI to strengthen security apparatus of the four major cities of the country is working on a project called Save City. The objective is to beef up security in Islamabad, Rawalpindi, Karachi and Lahore. Page | 9

Modern equipment would be used to strengthen the security such as CCTV cameras, explosive detectors and scanners, which would be, installed at all important places along with entry and exit points. After the successful launch of Western Styled Modern Emergency Service (Rescue 1122) in Punjab back in 2004, service is now operational in AJ&K and KP Province, while there are similar plans for Sindh Province. Rescue 1122 is responsible for handling all types of emergencies, including fire The above will subsequently require investment in security and related equipment and will offer opportunities. Market Needs: With interactive session to various companies manager we identified the most demanding needs by employers which are as follows. User-friendly, Easy to install, Cost effective with zero tolerance to false alarming Identifying danger even through obstacles Satisfying experience of after sales/customer service

Market growth: Security and safety and particularly CCTV industry has exponential growth rate. With our research and interviews with different corporate figurehead we came to know that the market growth rate has been very encouraging .current security and war against terror has been the back bone to this growth which has been 70% and after MEHRAN base attacks it has gone up to 80%.

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80 70 60 50 40 30 20 10 0

CCTV

CCtv after Mehran base ATTAck Smoke sensor 2011

On the other end if we look at the major imports of fire and security products that make this growth rate certain is as follows which says 654 million US$ of apparatus have been imported which is 66% of total import of fire and security products

COMPETITION: The rising Technologies is well aware and we have had all necessary information related to our competitors being mystery shopper. We would make our name in corporate sector because we are exclusively coming up with the product that targets only corporate sector that has more relative advantage and we know this fact that customers are always value maximizers .we are specialized manufacturer making product, keeping the corporate needs in mind where as our competitors are not specialized and they do not get products manufactured so they cant offer any thing extra to their customers as they only import and sell. Page | 11

Competitors list and the products that are in our competition.

COMPANY Global Technologies Global Technologies Global Technologies COMPANY Resco Resco PRODUCT
VISION CAM(VC-183) recommended for corporate sector VISION CAM(VC-184) extremely recommended for corporate sector VISION CAM(VC-186-A)Recommended for highly sensitive areas

PRICE 62000/67000/= 72000/=

PRODUCT

PRICE 60000/= 65000/=

(Honeywell). recommended for corporate sector (Honeywell-112). recommended for corporate sector

Sales Details of Competitors (In terms of Units)

16000 14000 12000 10000 8000 6000 4000 2000 0 GT Resco

2009

2010

2011

Global Technologies YEAR SALES

2009 2010 2011

9600 11040 15456

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Resco YEAR SALES

2009 2010 2011

9060 10238 13309

Analyzing the sales trend of both companies we came to know that there is continuous increasing trend in demand of security and surveillance devices. This trend says that in year 2009 the sales of Global Technologies was 9600 units which has increased by 15% in 2010 and 40% in 2011.while Resco s 2009 sales was 9060 units which increased by 13% in 2010 it increased by 30%. They both do sales budgeting on quarterly basis and are achieving their targets which shows their budgeting is not up to the market potential they should have set more targets in terms of units sell. Sales Forecast for Rising Technologies Private ltd. Our sales forecast is based on the sales data of our competitors .we have extracted the continuous increasing trend in sales of our competitors .they are continuously meeting their forecasted sales it means they have set easy targets or market has much more potential.

Global Technologies YEAR SALES

2009 2010 2011

9600 11040 15456

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Resco YEAR SALES

2009 2010 2011

9060 10238 13309

The year 2011 sales of global technologies has increased by 40%.we will take sales of year 2009 and add the increased % of year2011 that would be our forecasted sales for 2012.the annual forecasted sales would be divided in 4 quarters, if we meet our target for first quarter than 5% would be added on the first quarter sales if not 5% would be decreased for next quarter and so on. If meeting quarterly targets
Rising Technologies Quarters SALES 5% increase in each next quarter 3360 3528 3704 3890 14482 units

1St Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual forecasted sales

3900 3800 3700 3600 3500 3400 3300 3200 3100 3000 1s Qtr 2ndQtr 3rdQtr t 4thQtr s les a

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If not meeting quarterly targets

Rising Technologies Quarters SALES 5% decrease in each next quarter 3360 3192 3033 2881 12466units

1St Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual forecasted sales

3400 3300 3200 3100 3000 2900 2800 2700 2600 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr sales

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Break Even Analysis: Selling price per unit:

cost price (FOB) per unit. CCTV+ Smoke 52200 Mosquito repellent +Air freshener 305 miscellaneous expenses 50 total cost per unit 52555 Add :profit margin 30% 15766.5 selling price 68321.5 Selling price rounded up to 200 68500

Fixed cost: Currently we will acquire office in fasih villa block 4 f.b.area .monthly rent of the office as per our inquiry is 200,000 totaling for a year 2,400,000=/. We will purchase 1000 yards structured plot for the purpose of warehousing in in S.I.T.E Karachi, near Power House at 65million=/.and another in Lahore at55million=/ Computation for the the total cost: Computation for per unit fixed/variable cost

Break even through contribution margin Approach:

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Formula: Total Fixed cost / selling price per unit - variable cost per unit =122,400,000/68500-52555 =7676.388 approximately 7676 units Presentation of Break Even

Branding Strategy: The Rising Technologies Private ltd has developed new brand elements for the new product in the market. Branding Decision: Our first branding strategy decision is to develop brand name for our product the strategy that we will use for this is as follows. Individual names: We will use a different name for every new product that would be introduced in the market .the benefit of this strategy would be that if product falls, the companys name would not be hurt. There for we have offered a product named HAWK-EYE equipped with the latest technology called VIDEO IMAGE SMOKE & FIRE DETECTING unit. This is the unique combination of 4 in one .it has CCTV+SMOKE SENSOR Mosquito Repellent Air Freshener. The use of HAWK-EYE will become an integral part of every business/trade in this day and age not only because it discourages theft and fraud, by recording evidence of criminal activity but also provides fresh and natural fragrance with assurance to keep the environment germs and mosquitoes free that has been the severe challenge these days for many employers. This will prove itself pro employer & pro employee product. Brand Extension: If Hawk-Eye appear to be strong brand for the company and it comes up to the expectation of our customers we would extend it and launch new variants under same brand name it would give us two main advantages that it can facilitate new-product acceptance and provide positive feedback to the parent brand and company. Page | 17

Success Characteristics: Our success characteristic is our unique 4 in one combination that provides ease to corporate sector. This would be our unique selling proposition .having said that we need to emphasis on our USP and have to bring in our customers knowledge clearly and meaningfully. Brand Equity: We have adopted customer based brand equity perspective .we met different companies and came to know that companies favor following elements while going for purchase. They need a product that is user-friendly, easy to install, cost effective with zero tolerance to false alarming. These are the common demands but we are providing them hygienic environment too and thats what makes our product different as brand equity arises from the differences in the product. Our Brand Equity Drivers: 1: identities making up the brand

Brand Name Hawk-EYE

URLs
www.hawkeye.com

Logo
hawk

Slogans
Securing you with ease

Packages
4channels,8channel s,16 channels

2: The product and service and all accompanying marketing activities and supporting marketing programs: It would be supported by in-house research and development efforts; we will organize security enhancement clinics for user groups like different companys purchase managers. 3: using opinion leaders: We would have other associations indirectly transferred to the brand by linking it to some other entity (a person, place or thing).for that we have decided to use Pakistan air force retired officers as a brand endorser in our campaign. All above factors together would serve Rising Technologies to the development of Hawk-eye as strong brand and brand equity. Page | 18

Value proposition: Our value proposition is based upon three elements. 1: Resonate 2: Differentiate 3: Substantiate Resonate: Why people will buy our product? The answer of this question is those characteristics which we are providing with our product. Provide effective early detection of fire flame contributing 3% of the image area. Provide early response to pre-burning vague smoke even with the effects of air current and turbulence. Effective smoke detection even under low and no-light condition. Self-adaptive to environment variation to eliminate false alarm. Fault alarm on vision drastic shift and obstruction Link up with composite detection camera to enhance the system with multi frequency detection thus significantly improves its dependability. Built with relay connection and RS485 com port for alarm signal output; it is a surveillance network by itself or compatibly network with conventional fire alarm system Provides composite visual output to be integrated with CCTV systems.

Differentiation: We are distinct .the combination is such that does not exist in the market .the relative advantages that we are giving at competitive prices makes us different. Our customers would perceive us different than our competitors as they would not find any other place to buy a product with same features and combination. We have worked on differentiation through product and its prices. Substantiate: We will make sure what we promise to our customer, we deliver to them and when we say securing you with ease We actually do that through our brilliant product features and the unique combination that does not only secure but provide hygienic and secure working environment .

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So these are the components through which we will create our value proposition and will satisfy our customers. KEY TO SUCCESS: For achieving success in the market we need to differentiate through our product offering and it is indeed a distinct and very rare combination which would be sold at competitive prices. We will differentiate through our product and its prices besides we need to expand our product line as well in long run . If we consider these keys to success we will be sustainable and growing company as there are very few competitors and market potential is real high. Segmentation, targeting and positioning statement: We used geographic segmentation and divided the broad market in to small segments .we have chosen Karachi, Hub and Lahore because all these segments are measurable, substentiable,accessible,differentiable and actionable. Our target market would be mainly corporate sector focusing on the secondary industries and tertiary/services industry. We have definite numbers of industries operating in Pakistan: Major corporate sectors are as under. Chemical Sector Textile Sector Telecom Sector Financial Sector Real Estate Sector Banking Sector Health Sector Logistics Sector. Pharmaceutical sector. Transport sector Oil and gas sector. Insurance sector Food and personal care sector. Automobile sector.

Companies incorporated under these sectors are: Page | 20

Companies Incorporated Private companies limited by share Public non-listed companies Public listed companies Foreign companies Local life insurance companies Foreign general insurance companies Foreign life insurance companies Banking Companies Welfare organisations and associations Trade companies limited by guarantee

43,618 Financial Services Companies 244 39,628 2,214 687 643 3 3 2 47 357 83
Modaraba companies

Investment advisors Modarabas Leasing companies

Modaraba companies

Investment advisors Modarabas Leasing companies

64 57 47 30 64 57 47 30

Targeting: Initially we would enter in Karachi looking at its substantiality and being economic hub of Pakistan so our target market would be the corporate sector in Karachi. Positioning Statement: We have positioned our product at technological ease. As our mission statement clearly says our mission is to make technology an asset for your business not a problem That is the reason we have come up with such a unique combination that provides ease to our customers by giving all the demanding safety and security product such as (cctv, smoke detector, mosquito repellent air freshener)under one company and one brand name because organizations do not want to engage themselves in so many different contracts with different vendors . Our positioning statement is aligned with our mission statement and that says;

Securing you with ease

Marketing Mix: Rising Technologies is very concerned with these tactical marketing tools that we have blended to produce the response we want in the target market. Product: Page | 21

Designing Hawk-Eye, we have made sure that all three levels of products should exist and add value to each level. The basic level of Hawk-Eye provides security from theft, frauds, catching fire .this is the core problem solving benefit of our product. In the second level, we have turned this core benefit in to actual product by incorporating the latest technology, (the services, and features, design, quality level and packaging) all these elements of our brand have designed keeping our target market in the mind. We have created an augmented product by simply offering mosquito+ Air freshener repellent that means security with hygienic environment we are providing .this is some thing that has not been offered by any company yet and this is what will give us competitive advantage besides one year complete warrenty, after sales service, free of cost installation and a 24/7 toll free telephone number. We have discovered these ways to augment in order to create the bundle of benefits that will satisfy the most satisfying customer experience. Price: Price is only factor in marketing mix that produces revenue but before setting price we have set our pricing goal. Pricing Objective: Creating product image is our pricing objective that means we want to achieve product quality leadership. Pricing Strategy: According to our research the demand of security and safety devices have been infinite and especially in current scenario it has perfectly inelastic demand as shown graphically.

Price

Demand Curve

Quantity

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Under such condition and with the objective to achieve product quality leadership we have decided to go for Market-Skimming Pricing. We will charge high prices to skim maximum revenues layer by layer. We may make fewer but more profitable sale. Price Comparison with Our Competitors
COMPANY Rising Technologies Global Technologies Resco PRODUCT
Hawk-Eye (VISFDU 4in1) VISION CAM(VC-184) extremely recommended for corporate sector

PRICE 68500/= 67000/= 65000/=

(Honeywell-112). recommended for corporate sector

Place/Distribution: Making stronger value delivery network is our most concern. And for doing so we studied our buyers behavior and came to know the following. How customers want our product to get them.
80% 15% 5% through sales Representatives through website through Mail

A large portion of our target market prefers sales representatives to deliver or distribute our product. Sales Force Structure We will use territorial structure as we initially have only one product with customers in many locations. Distribution Channel: We will use direct distribution channel (0 level) for delivering our product as the product deals with technology ,adopting 0 level distribution we would minimize room for errors and mis-positioning the brand.

MANUFACTURER Page | 23

0 Level

CUSTOMER

Advantage that we will gain in using the direct channel is active market exploitation. Another advantage is greater control. The channel will also improve communication and consistency Promotion: Integrated marketing communication mix would be key element to create a true perception of our product as we want to make our target audience to perceive about our product. Marketing Objectives: as our product is in introductory phase that is why our objective would be to create brand awareness and genuine trials of the product. Marketing Strategy: Rapid skimming would be used that means high promotions budget would be set and price of the product would also be high. rapid skimming would get us genuine and quick trial and profit per unit would be high but sales are likely to be low at introductory stage.

Promotional Budget: Percentage of sales method would be used for promotional budget. as we have clearly defined that we will go for rapid skimming therefore 5% on each unit sales would be our promotional budget.
Selling price per unit Promotional budget Per unit(5% *68500) Total Promotional Budget =Forecasted sales*P.B.P.U 14482*3425 68,500 3425

49,600,850

Promotional Activities: Integrated Communication Approach. All the means and activities associated with Through the Line (TTL) would be adopted such as hoardings, Advertisement, Exhibitions, hoardings in industrial zones, small informational sheets along with the newspaper, website etc. Controls Page | 24

The rising technologies marketing plan will be used as a guide for organization the following areas will be monitored to gauge performance. Revenue on monthly and annual basis Expenses on monthly and annual basis Customer Satisfaction Customer Services

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