AMONIKA COMPUTER PARTSSALES AND DISTRIBUTION STRATEGYSubmitted by Group 20

EXECUTIVE SUMMARY

AMONIKA LTD is an Indian computer parts company established in 2010 and is headquartered at Delhi. It designs, develops, manufactures and sells personal computers parts and Cloud Computing parts. Amonika computer parts is a very well known name in its locality , retail outlets and even in retail outlets of neighbouring states. Amonika computer parts is well known for providing best quality products at economical prices.

MISSION

Our mission is to become one of the world’s great personal technology companies. We aspire to achieve this objective by leading in three key areas:

• Personal Computers parts: Lead in PCs and be respected for our product innovation and quality.

• Convergence: Lead the industry with an ecosystem of devices, services, applications and content for people to seamlessly connect to people and web content.

• Culture: Become recognized as one of the best, most trusted and most well-respected companies to work for and do business with.

OBJECTIVE

• To become the country’s leading ‘generic Computer parts distributor

• To Provide high quality products at economical prices

• To follow innovative approach so that Amonika can have a unique image in the industry

SITUATION ANALYSISIndia is one of the fastest growing IT markets in the world and also the fastest growing PC market in the Asia-Pacific region. IT hardware industry has proven to be the backbone of the nation’s growth.

The hardware industry is continuously evolving from desktops to laptops to mobile computing and further to cloud computing. As per the Department of Information technology, currently, there are 1.1 million professionals in the field of hardware but the count of professionals and computer experts will rise to 5.6 million until the year 2020.

So with Internet revolution demand of computer parts is also expected to increase in near future and our main goal is to grab this opportunity and expand our business not only in India but overseas as well.

With the increasing competition with fast evolvement of technology, industry consolidation and pricing pressure squeezing profitability, it is really important to innovate for sustaining business for a long period of time.

So to check the present situation in the Industry we have analysed ourselves and industry environment if following steps:

• Market Summary

• SWOT analysis

• Competition

• Product Offering

• Distribution

MARKET SUMMARY

There are 3 basic approaches to market segmentation which are as follows:

One is to choose not to tailor different products and instead produce and sell a standardized product that is targeted at the average consumer in the market.

Second is to recognize differences between segments and create different product offering for the different segments

Third is to target only a limited number of market segments or just one and to become very best at serving that particular segment

As Amonika operates only in locality and few of its neighbouring states we decided to follow Second approach. In this approach we are planning to target normal day to day PC users by opening retail outlets in Metro cities and its neighbouring states with following computer parts:

• Motherboard , CPU, Memory Cards, Keyboard and mouse, Graphic cards etc.

And we are also planning to targets Businesses through Cloud computingcomputer parts like Servers, Database, computers etc.

SWOT ANALYSIS

STRENGTHS

• Best quality parts and services at affordable prices

• Strong Distribution Channel

• Brand built upon reputation for the parts and services

• Good reputation in its retail networks

• Expert Knowledge about computer parts and its related peripherals

• Innovative Skills

SWOT ANALYSIS

WEEKNESSES

• Lack of experienced Staff

• Narrow range

• Low brand recognition

• Low Margins

SWOT ANALYSIS

OPPORTUNITIES

• Internet revolution being underway , a boom in computer parts demand is underway so there is lot of scope of expansion

• Unrecognised space for recognition

• Additional markets

SWOT ANALYSIS

THREATS

• Intense competition

• No barrier to market entry for competitors

• Low cost imports

• Fluctuating prices of raw materials

COMPETITION

Amonika parts at present facing stiff competition from many companies in this industry, few of major competitors are mentioned below:

• Dell

• IBM

• Intel

• Asus

• Fujitsu

• MSI

• Gigabyte

PRODUCT OFFERING

Amonika’s retails outlet for consumers offer following offering:

• Free 2 year warranty for products sold to its first 100 customers in our retail outlets

• Free accessories with first 100 items sold in retails outlets such as pen drive, printer, headphones etc.

• 20% discounts on first 100 items sold

• 1 month Free in home services ( Depending upon the locality and feasiblilty of location of the customer and the store )

For our business consumers we are providing Cloud computing parts and services and also providing following offerings:

• Free 1 year services for our initial 50 customers

DISTRIBUTION

Amonika computer parts will be distributed through:

• Its own retail outlets

• Through other parts retailers

• Online on our website i.e. www.amonikacomputerparts.com

MARKETING STRATEGY

Includes :

• Short term Objectives

• Target Markets

• Positioning

• Strategies

• Markeitng Mix

• Marketing Research

SHORT TERM OBJECTIVES

Amonika will focus on its short term objectives to achieve its long term objectives. So objective for the first 2 years of expansion are as follows:

• 1st Year : To increase customer base by providing best quality services and to get 1% market share of the computer parts/hardware industry which means selling approx. 5,000 units computer hardware in initial year

• 2nd Year : To sustain growth and follow cost leadership strategy

TARGET MARKETS

As Amonika operates only in locality and few of its neighbouring states we decided to follow different strategies for consumers and business customers.

In this approach we are planning to target normal day to day PC users by opening retail outlets in Metro cities and its neighbouring states with following computer parts:

• Motherboard

• CPU

• Memory Cards

• Keyboard and mouse

• Graphic cards

And we are also planning to targets Businesses through Cloud computing computer parts like Servers, Database, computers etc.

POSITIONING

• Amonika is positioning its brand and product as most reliable products for performance.

• And also represents its timely and consumer friendly services as a base for a long term relationship with their customers.

STRATEGIES

ProductOffering products for PC users from retail outlets and business users with offerings which were discussed earlier.

Pricing Product pricing of our major products are as follows:

• Motherboard : Ranging from Rs 5000 to Rs 25000 ( depending upon specs )

• RAM : Ranging from Rs 500 to Rs 4500 ( depending upon specs )

• Printer : Ranging from Rs 2000 to Rs 21000 ( depending upon specs )

• Server : Ranging from Rs 50000 to Rs 250000 ( depending upon specs )

Distribution Through Retails outlets, Computer repair shops and Online website of Amonika ltd.

Marketing Communication

• Spread of word of mouth through present distribution channel to their Business and PC consumers

• Increasing brand display on the shelves of renowned Computer hardware retail outlets like Chrome etc.

MARKETING MIX

Course of Action plan for the first 6 months is mentioned as follows :

• January : Spread of word of mouth through present distribution channels and contacting business person in the locality about cloud computing and services

• February : Getting feedback of responses from retailers about the demand. Also contacting leading retail outlets in metro cities for displaying our products

• March : Setup of Retail stores in metro cities and encourage consumers to use online portal

• April : Advertisment with the help of social media and other mediums

• May : Organizing various Games and discount offers in retail outlets

• June : Check the status if there is any outcome of the promotional activities performed

MARKETING RESEARCH

• Using research we will identify specific features and benefits our target segment values.

• Various methods of research will be used like market tests, surveys from retailers, questionnaire from present consumers etc. to name a few. We are also analysing customer’s attitude toward other established brands and brand awareness research will help us determine the effectiveness of our promotional campaigns.

FINANCIALS

Total 1st year estimated sales expected 5000 units with revenue of Rs. 5,00,00,000.

Anticipated loss for 1st year is Rs. 1 crore

Fixed cost (including advertisement for initial year ) Rs 1,00,00,000

Per unit Cost price (average ) : Rs 9000Per unit variable cost ( avg. ) : Rs 1500

Break even Units : 5,00,00,000/9000-1500 = 6,666 units

Expected to breakeven by last quarter of the 2nd year.

CONTROLS

• Implementation : We are planning tight control measures to tightly monitor our costs and quality of our products. Strengthening our services providing system as well to react quickly in case of any issue faced by the customer.

• Marketing Organization : Amonika has hired Alpha ads Services Pvt Ltd. For promoting our brand and Also has tied up with Chrome, for now, to promote our brand products.

A Marketing Management Project

Submitted by : Group 20

Group Members:

• Ajay Parmar

• Nishtha Batra

• Gunjan Itkan

THANK YOU