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FINAL PROJECT REPORT
Grenoble C, Team 2
Emma Falkengaard, Nurul Fitriyani binti Hamdan,
Hidayatul Fitriah binti Hamid, Clarice Annabelle anak
Hillaby, Kim Ho Jean
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Contents
1. Executive Summary ................................................................................. 2
2. Business Mission....................................................................................... 3
3. Current Market Situation........................................................................ 3
3.1 Macro environment ............................................................................... 3
3.2 Market description................................................................................. 4
3.3 Competitive review ............................................................................... 5
3.4 Channels and logistic review.................................................................. 5
4. Marketing Objectives............................................................................... 6
5. Core Strategy........................................................................................... 6
5.1 Competitors’ targets .............................................................................. 6
5.2 Target market ........................................................................................ 7
5.3 Competitive advantage .......................................................................... 7
6. Marketing Mix......................................................................................... 8
6.1 Product ................................................................................................. 8
6.2 Promotion............................................................................................. 9
6.3 Pricing .................................................................................................10
6.4 Place/Distribution strategy ....................................................................11
7. SWOT Analysis...................................................................................... 12
8. Organization and implementation.......................................................... 14
9. Financial projections, break even, and budgets ..................................... 15
10. Conclusions .......................................................................................... 17
11. Appendices ........................................................................................... 18
12. References ............................................................................................ 23
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1. Executive summary
N Tech Corporation is a startup manufacturing company, situated in France, with an overall
business to business (B2B) business model. As a newly established company we are launching
our first and only product, ‘G-VR’, a virtual reality headset intended for education and business
purposes. This marketing plan focus on our product and the European market.
Mission
We strive to be recognized in the virtual reality headset industry and empower business and
educational facilities by providing a new virtual experience with our product.
Marketing objectives
After our two first years of operating we expect to achieve a market share of 10% and we
expect our first profit by December 2017 after starting our operations in March 2017. In a long-
term plan (5-10 years) we will break new grounds and expand within the global market.
Core strategy
Our competitors are companies selling VR headsets to customers (B2C), despite this being
a different business model from ours their product is similar and there is always the threat of
them adapting a B2B business model in the future. They would then become direct competitors.
Our current main competitor is Microsoft, which provide a similar product to ours, and Apple,
which provide tablets which are often means used for educational purpose in schools. Our
target market is big corporations and businesses and also education facilities with students
between the ages of 7 and 17 years old. For competitive advantage, we are cost-effective, user-
friendly and convenient to use in businesses and schools.
Marketing mix
We will make our brand known through exhibitions and IT fairs. Our price/unit is 600 euros
for corporations and will be reduced for schools when the government will invest in part of the
costs when it’s for educational purpose. We have no physical or online store but sell directly
through our contacts.
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Organization and implementation
Our firm exists of a CEO and founder overseeing all the activities in the company. A sales
and marketing direction executes and supervises the marketing activity. A financial director
ensures all operations are within the budget. The supply chain manager is involved in the
management of raw materials and our inventory. The head of the IT department oversees the
development and innovation of the product and the maintenance. Our allocated budget for
advertising is 50,000 euros and our targeted number of companies to reach for the first year is
200.
2. Business Mission
N Tech Corporation’s business mission is to be recognized as the leading VR (virtual reality)
headsets manufacturing B2B (business-to-business) company in 5 years. Our specific goal is
to provide excellent 3-dimensional smart and virtual working conditions to companies and
schools by using our first VR headset, G-VR. We want people, such as architects, scientists,
artists, medical doctors and students to create a better and smarter world. Our company want
to penetrate the uprising B2B European VR market because we saw the huge potential of the
market in next 5 to 10 years. As a future market leader, N Tech Corporation will keep
supporting anyone who wants to change the world. This B2B VR commerce will facilitate the
works of huge amount of people and students who are struggling and seeking for innovation.
3. Current marketsituation
3.1 Macro environment
Technological
Virtual Reality (VR) is a hi-tech headset that is currently very popular among gamers
because it offers a more realistic view and gives a more satisfying experience when playing the
games. As the technology in the digital market is getting more advance day by day, VR
functionalities can be developed into something more and serve other fields such as education
and architecture. More researches are conducted to discover its potential. VR is expected to
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help fostering businesses especially in sales and as it is widely accepted by society, firms will
not face big problems to adapt to this new gadget, which is a huge advantage.
Economic
The market growth for VR is relatively high and this year’s VR sales is estimated to be 21
million USD. In 2020, its market is going to worth 38 billion USD according to a market
research firm, SuperData. However, in business, the economic environment plays a vital role
for firms notably in decision making. The challenge is that during recession, firms may be
reluctant to use VR because it is expensive. They may purchase tablets to save cost even if VR
functional design is better. Therefore, it will be difficult to convince companies to use VR and
sell it to them.
3.2 Market description
The virtual reality market is getting larger despite being new. N Tech Corporation plan to
manufacture and provide virtual reality services for many businesses and industries to satisfy
their various needs, mainly for architecture firms. As of present, only certain companies such
as Microsoft and Google provide this sort of services because most of virtual reality
manufacturing firms such as Oculus Rift and HTC Vive are focusing on producing virtual
reality technology for gaming purpose. So, N Tech Corporation will be the earliest company
to deliver this services for the benefits of other business too.
The ideal customer for G-VR are business organizations and schools that want to provide
interactive and smart working and learning atmosphere for employees and students. We are
planning to start with European firms because the market share is large and they always seek
for innovation and advance technology to boost their business. The number of registered
European companies in 2014 is 2,125 and these firms are our targeted customer. Our clients
are also firms who want a sophisticated gadget that is affordable and user-friendly since most
of business people are not tech geeks, so they will need a VR headset that is easy to use. After
that, we will be focusing on producing VR headset for students. This VR is created uniquely
for education purposes.
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3.3 Competitive review
There are 2 main competitors of G-VR: Microsoft HoloLens from Microsoft Corp and iPad
Pro from Apple Inc. (refer Appendix 1). Also, N Tech Corporation might have a new
competitor as on March 2nd 2017, ZTE has announced about their new VR during the Mobile
World Congress 2017 that took place in Barcelona, Spain. Yet, the details about their new VR
is still unknown. Thus, Microsoft and Apple will remain as our strong competitor. These tech
giants’ products have almost the same resemblance with ours and they have a big advantage in
terms of reputation in IT industry while N Tech Corporation is still young and new. Microsoft
HoloLens is a headset that connects with holographic computer, enable the user to engage with
digital content and interact with holograms within an environment such as office space. iPad
Pro is a line of Apple Inc. tablet computer that run the iOS operating system and it comes with
large memory storage, wider screen, the retina flash feature, and a faster processor. Although
the features of each product from these companies are different, their functionalities are almost
the same as G-VR and this will create an intense competition and the type of targeted consumers
will likely be the same as N Tech Corporation. For N Tech Corp to enter the market it would
be a bit difficult due to the existence of Microsoft and Apple as the fore player in the industry
but as we are offering a reasonable price for G-VR, N Tech might be able to compete with them.
3.4 Channels and logistic review
Supplier
G-VR comprises of internal components, external body, screen and camera. Our company
will get the internal components supply such as processor integrated circuits (IC), memory,
user interface ICs, power management ICs and electronic chips from the European tech
companies; STMicroelectronics and Nordic Semiconductor. The sensor will be equipped by
Ricoh Ltd and Etron Technology while the screen will be endowed by Samsung Display
(AMOLED) with 5.7 inches and 1920 x 1080 display. For the external body of G-VR, a
specialized plastic material developed for VR headset, tefanyl® VR, produced by Mitsubishi
Chemical Performance Polymers Inc will be used because it is light and has a good impact
resistance and the camera will be provided by Motorola.
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Manufacturing
The manufacturing and the assembling of G-VR will take place in France.
Distribution
G-VR will be distributed to big European companies first as they are our targeted customer
and later for schools. We will be directly dealing with firms and schools and we are not
planning to distribute through companies such as Amazon Inc. because the commission
demanded from the third-party distributors and retailers is very high.
4. Marketing Objectives
As a start-up company, N Tech Corporation’s marketing objectives are:
- Creating a successful brand image that fits to the nature of the product
- Reaching around 200 companies for the first year
- Selling more than 2000 units of G-VR for the first year
- Keeping the rejection rate of G-VR lower than 2% within a year
- Achieving at least 6% of market share within 2 years
- Being a number one VR headset supplier in B2B market at least in 5 years
- Opening a branch office in other continent than Europe in 8 years
N Tech Corporation’s first objective is to make a successful brand image, where customers
believe our product will lead them to innovation. Then, settling down well in the market will
be our prior objective.
5. Core strategy
5.1 Competitors targets
As mention in the general competition analysis, our three main competitors are the Silicon
Valley’s giants; Microsoft Corp., Apple Inc and Google Inc. These organizations have been in
the IT industry for a long time and they are the major players. Their products are being sort by
many big European companies, who happened to be our target customer and this make the
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competition more intense. However, N Tech Corporation closest competitor would be
Microsoft Corp because HoloLens is almost identical to G-VR in design and functionalities.
iPad Pro from Apple are computer tablets that are very helpful for business but its function is
quite limited compared to G-VR and HoloLens, however in schools these tablets are commonly
found. Meanwhile, Google Glass is designed for communication purposes and it aims to
replace the handsfree. The positioning of our products and the competitors in the Perceptual
Map (Appendix 2) will be based on our competitive advantage, which will be explained in part
5.3 Competitive Advantage.
Microsoft HoloLens is offered in two types, the Development edition, created for individual
use and the Commercial suite, developed for organizations to enhance the business. The price
for Commercial suite starts from 5,489 €. (all the specifications are shown in appendix 3).
HoloLens Commercial suite offers many interesting features for business. The Windows Store
is built specially for business enterprise, where the IT department of a firm can create their own
applications to suit their HoloLens usage and firms can choose to share the software with other
selected business users. Just like G-VR, The Kiosk mode in Hololens installed also help
enterprise to enable demo. To top it all, the most powerful strength of Microsoft Hololens is
their sensors that will attract large firms to purchase it. HoloLens has a variety of sensor which
are important for their ‘human understanding’ feature; spatial sound, gaze tracking, gesture
input and voice support. Microsoft also establish the Holographic Academy to train HoloLens
users steps by steps.
5.2 Target Market
To identify the target market, it is important to see how well our product satisfy consumer
needs by dividing it into distinct groups of buyers. N Tech Corporation is the producer of virtual
reality headset and market the product mainly to businesses and schools. G-VR is a well-
established product created to target businesses, for example architects that are involved in
buildings and constructions, where G-VR can be a useful mean. It also targets schools, with
children in a lower age group from 7 to 17 years old. These information shows that N Tech
Corporation follows a demographic market segmentation strategy based on age and occupation.
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The company will then target these segments with products that meet the customer's needs.
As for that matter, N Tech Corporation adopt the differentiated marketing strategy which focus
on targeting each segment with a product. In this sense, there are two segments which are the
children and the architects and both will receive different offers depending on their needs. This
will eventually increase customer's satisfaction and one thing for sure is that it would not affect
other segment if sales in one segment are declining. This explains why differentiated market
segment is the perfect fit for N Tech Corporation to gain more profit.
5.3 Competitive advantage
Our product is highly innovative and differs slightly from similar VR products in the gaming
industry. We provide a sophisticated experience meant for business and learning purpose and
not for entertainment. Our price differs massively from main competitors. For example,
Hololens is priced at €5489 but they are using the hologram technology which is quite costly.
But as we are focusing on its main function, which is to give businesses’ customers a virtual
experience of their current products, we do not need holograms to do that, which lowers the
production cost of GVR and the price as a total. Next, the functionalities are also one of its
competitive advantages.
First, we could see how the battery life is 6-7hours, which is longer than Hololens (2-3hours)
and iPad Pro (8-9 hours). Again, the hologram technology consumes a lot of battery life, and
as for iPad, its functions are different so it is quite difficult as to compare its battery life. Lastly,
as the portability of technologies nowadays are quite important, we decided to use lighter
components to design G-VR, making it the lightest among its competitors.
6. Marketing mix
6.1 Product
Description
Our product, ‘G-VR’, is a virtual reality headset that can be used by business in their
operations or by educational facilities to provide students with a new interesting learning
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experience. Instead of looking at a flat screen our virtual reality headset gives people the chance
to look at things and move through a digital world.
Characteristics
 Our VR headset has a cozy and comfortable design and can be adjusted for the perfect
fit.
 Weight: 350 grams. It is light on the head and doesn’t strain the neck. You can move
your head and body around without difficulty.
 It has an installed camera to take pictures for storage. It also has a flexible motion sensor
and visual position features. Furthermore, it possesses 100-degree field of view and
360-degree tracking.
 6-7 hours of battery life.
 It is both stationary and movement based.
 Big frame rate and smooth movement with a 5.7 1920 x 1080 display.
 Product will be provided in two colors: White for businesses, who are attracted to a
simple and ‘professional’ design, where white is a calm and plain color, perfect for this
purpose. For schools our product will be provided in blue, because it’ll be used by
students, who are attracted to a creative and ‘fun’ design.
 Can be connected with Mac OS and Windows devices.
 2 years of warranty
Usage includes using it in architectural firms, giving an experience to the customers as to how
a certain architectural design could be in the future. Other than that, in schools, subjects like
History could be aided by G-VR, for example replacing visits to museums with interactive
visuals of them in G-VR. It could also be used in hospitals, to help traumatic patients to recover
from phobias with helpful related visualizations.
Brand
Produced and developed by N Tech Corporation.
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6.2 Promotion
Exhibition and fairs
We will begin to introduce our product in exhibitions for new products. This a good way to
make our brand known, get in touch with potential customers and make lots of new contacts.
Since our product is very innovative we will also take place in IT fairs, specifically meant to
explore the technological market.
Trial System
To attract business to invest in our product we provide a special service, which allows
companies to rent our product for a few months in order to test and explore it further. This rent
will be provided at a very cheap price without obligation to purchase afterwards. We are
confident that after testing our product customers will proceed to purchase.
Partnership / sponsorship
In our early stages of operating getting known on the market is crucial. To advertise
ourselves among large corporations we are going to partner up with Intel - data center solutions,
IOT and PC innovation. After the mutual agreement, Intel has become an initial sponsor of N
Tech Corporation and effectively use our products in their everyday operations, after we have
provided them with 100 units for free. The purpose of the partnership is not to gain profit but
rather to gain recognition through Intel and advertise ourselves, since they are a large well-
known company on our market of interest. For Intel, by investing in us they own 5% of the
company in stocks and collect dividends monthly.
Advertising
We also advertise our product by using the self-service Linkedin Ads platform. With the
widespread of social media and internet, Linkedin is a good platform for N Tech Corporation
to be recognized by other companies. We are using two types of ads which are the sponsored
updates and text ads. Both of these allow us to send visitor directly to our websites and company
page. The difference between these two ads are where they were displayed and how to create
them. (See appendix 4)
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6.3 Pricing
Our virtual reality headset is a highly technical and innovative product with lots of expensive
features. This all contributes to a high retail price of 600 Euros/unit.
Cost-based
Our product’s price will be based on its cost. Because N Tech Corporation is fairly new to
the market, it is quite important that we have a lower price than potential competitors. Which
is why we considering it to be cost-based instead of value-based, even though in the beginning
we decided the creation of G-VR based on what organizations would need in the future
technologically to fit in with the fast-paced evolving world.
Price Barometer
As we are launching a new product, it is important that we don’t set our price too high. This
way we can penetrate the market quickly and bring in as many customers as possible. Because
our product price is similar to the cost of a gaming console, it will be for the purposes of
organizations and schools with more characteristics towards their needs. Based on an article on
Digital Trend, the breakdown cost of Oculus Rift is approximately $206, which equals to 194€,
without the lenses. The characteristics of a VR headset is quite similar except for a few, so we
estimate the price of the headset to be 200€. For us, lenses will be quite an important quality
that G-VR should have. With an estimation of 100€ of lens per unit, the total cost G-VR/the
price floor will be €300. As for the price ceiling, looking at Microsoft Hololens, it is 5489€,
therefore that is our price ceiling as our consumers would be looking for a cheaper alternative.
Discounts
Being a start-up company launching a brand-new product, discounts for interested
companies is not recommended. However, we are aware that in the case of schools,
governments will most likely give subsidies, and instead of schools having to pay in full
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amount, governments will pay part of it. This in a sense will be discount for schools, but not
for us, because we will receive the same amount but paid by two organizations.
6.4 Place / distribution strategy
Place
We neither have a physical or online store nor online distribution channel. We contact
businesses through contacts or have companies taking the initiative and contact us. Our
products are manufactured in our factory in France and stored in the warehouse of the same
facility.
How will we get our product to customers?
After meeting businesses interested to invest in our product, we can produce the number of
wanted units and distribute it directly from our warehouse with safe transport. In case of schools
the products may be delivered to the schools through the government, for political purpose.
7. SWOT analysis
This part will present the SWOT analysis of G-VR business model in the field of architecture
and education. The SWOT analysis is an effective way to identify the strengths of the business
in the current market situation and the weaknesses of the business. These are related to the
internal factor of the company in which N Tech Corporation have a complete control over it.
The SWOT analysis can also help N Tech Corporation to gather all the opportunities and to
identify threats which are mainly influence from the external environment of the company.
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Strengths
The first strength of G-VR would be providing an interactive learning experience for children.
It is no doubt that this new method of learning using virtual reality is fairly new. As compared
to the traditional way of learning through interaction in the classroom, thanks to G-VR children
can now discover real life simulations in subject such as history and science. As they go through
the process they would be engaged with interactive graphics and audios, likewise, giving them
a sense of really being there. Thus, G-VR creates a more exciting learning process and children
are more likely to understand what they learned in the classroom. It is the same for architects
who can fully utilize this new technology in the building and construction industries. It can
help their customers make the right choice of their preferred design.
On top of that, G-VR is also smart and user friendly. Unlike any other virtual reality
applications that are used for leisure and entertainment e.g. gaming, N Tech Corporation is
targeting to market the G-VR to businesses in the field of educational and architecture. Instead
of using complicated system and software like in the gaming industry, G-VR provide an easier
approach for the end users. The design of it concerns the user’s ability to understand easily,
effectively, safe and fun to use. It is therefore enhanced with the system that is compatible to
use by children and architects.
Weaknesses
The virtual reality technology is relatively new in the market and this has a downside to our
company where our branding image is somewhat low. Aside from having a difficult time to
meet the customer’s expectations, it would somehow affect the impressions of the customers
on our product as it is not well known in the market. Consequently, businesses out there have
trust issues and they are less likely to invest their money in using virtual technology for their
business. Hence, the lack of experience especially in advertising and marketing the product
will result in a low market share for N Tech Corporation.
Another weakness would be the side effects of using G-VR. Some people are worried of having
their eyes so close to the screen as it can cause motion or simulation sickness. Considering the
fact that N Tech Corporation is a startup company and many of the G-VR applications have not
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been tested properly yet. It could have an adverse side effects to the human brain and cognitive
systems.
Opportunities
Being the pioneer of virtual reality manufacturing company in an emerging market and to
offer especially to education and architecture businesses is a major opportunity for N Tech
Corporation. This is primarily because people will familiarize with our brand more easily
without the need to put much effort in advertising and marketing. Hence, it will therefore
increase profit by lowering the cost of advertising and the money can be used to improve other
area of G-VR. Because of being the second in the market we can also observe how the market
react to our product and thus, gain the opportunity to create a unique positioning in the market
to engage with other businesses. Also, in the cutting edge of technology, businesses began to
recognize the importance of the most current and high tech development for their businesses.
This would be an opportunity for N Tech Corporation to increase the number of investment
and attract more investors to increase market share and expand the business to the global market.
Threats
There is always a competition when introducing a new product into the market and therefore
one of the major threats is the entry of a strong competitor. The biggest competitors for G-VR
are high-tech products such as HoloLens produced by Microsoft which have very similar
purposes. In this sense, the concept of Microsoft HoloLens is the same as G-VR where they
want to transform businesses and open up to new possibilities of how we interact. Other
existing virtual reality companies such as Oculus Rift, HTC Vive and Sony VR also form a
huge threat to the company. This is because although they designed the virtual reality primarily
for gaming industry, there is a possibility in which these companies might extend their business
to B2B type of market. As they are already well known by the market, N Tech Corporation
would have to compete with them in order to maintain their market share and to stay in the
market.
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8. Organizationand implementation
Organization structure
N Tech Corporations have five initial co-founders, where one takes the position as the CEO
but all possess the same amount of stocks. The other four are in charge of four main
departments (See appendix 5).
 CEO of the company, oversees all the activities within the company.
 Sales and marketing director, executes and supervises the marketing activity.
Financial director, ensures all operations are within the budget.
 Supply chain manager, involved in the management of raw materials and
inventory/stocks. (purchasing department)
 IT/ R&D department, involved in the development and innovation of the products. They
also handle the maintenance of the product.
Moreover, the co-founders a small number of employees are working in the manufacturing
of the product and more people are successively going to be hired in the expansion of the
company. At the startup, N tech Corporations is remaining small, in order to save cost before
revenues will be gained.
Implementation
Our market and advertising plan which is explained under promotionwill start in March 2017
and continue throughout the year to obtain profit by December. Moreover, our promotion we
plan to be active online through LinkedIn, where we can create relations with clubs and
associations and further get our brand known.
N Tech corporation’s operations will take place all over Europe, therefore having our
products manufactured in France, gives us a shorter distribution channel, compared to
companies that may have their products manufactured in China. Our official launch will take
place in March and Promotion and operations start from then.
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9. Financialprojections, break even and budgets
Promotion expenses (fixed):
 Promotions (LinkedIn) € 50,000
 Cooperative promotions with companies (Intel) € 30,000
Distribution expenses (5%ofsales):
 Freight and distribution € 60,000
Pro Forma Profit-and-Loss Statement for the 12-Month Period Ended March 31, 2018
% of sales
Net Sales €1,200,000 100%
Cost of goods sold € 600,000 50%
Gross margin € 600,000 50%
Marketing Expenses € 140,000 11.67%
Promotion expenses € 80,000 6.67%
Distribution expenses € 60,000 5%
General and Administrative Expenses € 276,000 23%
Managerial salaries and expenses € 240,000 20%
Indirect overhead € 36,000 3%
Net profit before income tax € 184,000 15.33%
As we are a new startup company and the cost of making a VR machine is high, we estimate
that the initial capital needs to be quite high as well. Which is why the starting of the capital
will come from us, the 5 co-founders of the company, as each of us will provide 50,000€. Then,
we are going to apply for a 50,000€ bank loan, as well as 300,000 from our investors, which
totals our initial capital at 600,000€.
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The expected cost for one machine would be 300€, so with our partnership with Intel, we
would provide them with 100 units, which equals to 30,000€ of cooperative promotion
expenses.
We estimated that the demand per year would be 2000. After multiplying it with the price of
G-VR, the total sales that we will get us 1.2 million. After getting the net profit before income
tax, supposing that we have the same net profit every year, (600,000/184,000), the duration
that would take to cover the initial investment will be 3.3 years.
Based on the Pro Forma template, the promotion expenses, managerial salaries/ expenses and
indirect overheads will be the fixed cost, so by calculating 80,000+276,000/1-(0.5+0.05), we
will get the breakeven sales revenue = € 791,111. By dividing it with 12 months and 600€/price
per unit, we will get 110 of units to breakeven per month. But as the market is limited to only
organizations, it could be hard to achieve this breakeven, which is why the expected duration
of ROI (return of investment) is 3.3 years.
10. Conclusion
Working on this project has brought on many challenges but also many new achievements
and knowledges gained. By meeting and working together we’ve transferred what we’ve
learned in class to build our own firm and gone through every detail in the process of launching
a new product. Our idea from the beginning is different from our final product and plan as it
was developed and transformed in the early stages of our progress until we landed on a final
agreement, which has been shown in this report.
The main problems that has occurred along the way of N Tech Corporation is firstly, finding
good contacts. As a business to business operating company building a network is crucial.
Moreover, finding our contacts and potential customers, persuading firms to purchase our
product has also shown to be a great challenge. While it is a valuable product that can help
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them in adapting to new technology and developing their organization the high price makes it
a big investment that they want to be sure about before proceeding with.
With this marketing plan, we’ve learn how to explore and understand the different markets
relevant to our product. We’ve gained more knowledge in pricing and the effects and benefits
of selling at a certain price, and the importance of this. The communication between us and our
teamwork has been good from the start but grown very strong towards the end of this project.
One thing we found challenging to begin with but adapted to and grew more confident with
towards the end was our own decision making and the outcomes of it. Finally, our greatest
achievement of this whole process is being able to complete our project and put together
something that we can all be proud of.
11. Appendices
Appendix 1: Comparison of two main competitive products of G-VR
*OS for connection or OS that is already installed
G-VR
Price: 600 €
Battery capacity: 6-7 hours
Weight: 350 grams
3D Vision: Yes
Motion Sensor: Yes
OS*: Windows 10 and Mac OS
Microsoft Hololens Price: 5 489 €
Battery capacity: 2-3 hours
Weight: 579 grams
3D Vision: Yes
Motion Sensor: Yes
OS: Windows 10
Source:
https://www.microsoftstore.com/store/
msusa/en_US/pdp/productID.5070023900
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Ipad Pro (12.9 inch, Wi-Fi, 32
gigabytes of storage)
Price: 909 €
Battery capacity: 9 hours
Weight: 713 grams
3D Vision: No
Motion Sensor: No
OS: IOS and Mac OS
Source:
http://www.gsmarena.com/apple_ipad_pro-
7562.php
Appendix 2: Perceptual map of positioning
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Appendix 3: Microsoft HoloLens 1.0 specs
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Optics
 See-through holographic lenses (waveguides)
 2 HD 16:9 light engines
 Automatic pupillary distance calibration
 Holographic Resolution: 2.3M total light points
 Holographic Density: >2.5k radiants (light points per
radian)
Power  2-3 hours of battery life
Sensors
 1 Inertial Measurement Unit (IMU)
 4 environment understanding cameras
 1 depth camera
 1 2MP photo / HD video camera
 Mixed reality capture
 Microphones
 1 ambient light sensor
Human understanding
 Spatial sound
 Gaze tracking
 Gesture input
 Voice support
Input / Output /
Connectivity
 Built-in speakers
 Audio 3.5mm jack
 Volume up/down
 Brightness up/down
 Power button
 Battery status LEDs
 Wi-Fi 802.11ac
 Micro USB 2.0
 Bluetooth 4.1 LE
OS and apps
 Windows 10
 Windows Store
Source: https://www.microsoftstore.com/store/msusa/en_US/pdp/productID.5070023900
22
Appendix 4: N Tech Corporation’s LinkedIn page
23
Appendix 5: Organization map of N Tech Corporation
24
12. References
ZTE Corporation. 2017. ZTE launches E2E VR live solution. [ONLINE] Available at:
http://www.zte.com.cn/global/about/press-center/news/201703ma/0302ma4.[Accessed 5
March 2017].
Microsoft Store. 2015. Microsoft HoloLens Specification. [ONLINE] Available at:
https://www.microsoftstore.com/store/msusa/en_US/pdp/productID.5070023900. [Accessed
4 March 2017]
SuperData Research. 2016. Virtual Reality Consumers. [ONLINE] Available at:
https://www.superdataresearch.com/market-data/virtual-reality-industry-report/.[Accessed 2
March 2017].

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N Tech Corporation Marketing Plan for G-VR (Final Project for Principles of Marketing Year 1 Bachelor in International Business)

  • 1. FINAL PROJECT REPORT Grenoble C, Team 2 Emma Falkengaard, Nurul Fitriyani binti Hamdan, Hidayatul Fitriah binti Hamid, Clarice Annabelle anak Hillaby, Kim Ho Jean
  • 2. 1 Contents 1. Executive Summary ................................................................................. 2 2. Business Mission....................................................................................... 3 3. Current Market Situation........................................................................ 3 3.1 Macro environment ............................................................................... 3 3.2 Market description................................................................................. 4 3.3 Competitive review ............................................................................... 5 3.4 Channels and logistic review.................................................................. 5 4. Marketing Objectives............................................................................... 6 5. Core Strategy........................................................................................... 6 5.1 Competitors’ targets .............................................................................. 6 5.2 Target market ........................................................................................ 7 5.3 Competitive advantage .......................................................................... 7 6. Marketing Mix......................................................................................... 8 6.1 Product ................................................................................................. 8 6.2 Promotion............................................................................................. 9 6.3 Pricing .................................................................................................10 6.4 Place/Distribution strategy ....................................................................11 7. SWOT Analysis...................................................................................... 12 8. Organization and implementation.......................................................... 14 9. Financial projections, break even, and budgets ..................................... 15 10. Conclusions .......................................................................................... 17 11. Appendices ........................................................................................... 18 12. References ............................................................................................ 23
  • 3. 2 1. Executive summary N Tech Corporation is a startup manufacturing company, situated in France, with an overall business to business (B2B) business model. As a newly established company we are launching our first and only product, ‘G-VR’, a virtual reality headset intended for education and business purposes. This marketing plan focus on our product and the European market. Mission We strive to be recognized in the virtual reality headset industry and empower business and educational facilities by providing a new virtual experience with our product. Marketing objectives After our two first years of operating we expect to achieve a market share of 10% and we expect our first profit by December 2017 after starting our operations in March 2017. In a long- term plan (5-10 years) we will break new grounds and expand within the global market. Core strategy Our competitors are companies selling VR headsets to customers (B2C), despite this being a different business model from ours their product is similar and there is always the threat of them adapting a B2B business model in the future. They would then become direct competitors. Our current main competitor is Microsoft, which provide a similar product to ours, and Apple, which provide tablets which are often means used for educational purpose in schools. Our target market is big corporations and businesses and also education facilities with students between the ages of 7 and 17 years old. For competitive advantage, we are cost-effective, user- friendly and convenient to use in businesses and schools. Marketing mix We will make our brand known through exhibitions and IT fairs. Our price/unit is 600 euros for corporations and will be reduced for schools when the government will invest in part of the costs when it’s for educational purpose. We have no physical or online store but sell directly through our contacts.
  • 4. 3 Organization and implementation Our firm exists of a CEO and founder overseeing all the activities in the company. A sales and marketing direction executes and supervises the marketing activity. A financial director ensures all operations are within the budget. The supply chain manager is involved in the management of raw materials and our inventory. The head of the IT department oversees the development and innovation of the product and the maintenance. Our allocated budget for advertising is 50,000 euros and our targeted number of companies to reach for the first year is 200. 2. Business Mission N Tech Corporation’s business mission is to be recognized as the leading VR (virtual reality) headsets manufacturing B2B (business-to-business) company in 5 years. Our specific goal is to provide excellent 3-dimensional smart and virtual working conditions to companies and schools by using our first VR headset, G-VR. We want people, such as architects, scientists, artists, medical doctors and students to create a better and smarter world. Our company want to penetrate the uprising B2B European VR market because we saw the huge potential of the market in next 5 to 10 years. As a future market leader, N Tech Corporation will keep supporting anyone who wants to change the world. This B2B VR commerce will facilitate the works of huge amount of people and students who are struggling and seeking for innovation. 3. Current marketsituation 3.1 Macro environment Technological Virtual Reality (VR) is a hi-tech headset that is currently very popular among gamers because it offers a more realistic view and gives a more satisfying experience when playing the games. As the technology in the digital market is getting more advance day by day, VR functionalities can be developed into something more and serve other fields such as education and architecture. More researches are conducted to discover its potential. VR is expected to
  • 5. 4 help fostering businesses especially in sales and as it is widely accepted by society, firms will not face big problems to adapt to this new gadget, which is a huge advantage. Economic The market growth for VR is relatively high and this year’s VR sales is estimated to be 21 million USD. In 2020, its market is going to worth 38 billion USD according to a market research firm, SuperData. However, in business, the economic environment plays a vital role for firms notably in decision making. The challenge is that during recession, firms may be reluctant to use VR because it is expensive. They may purchase tablets to save cost even if VR functional design is better. Therefore, it will be difficult to convince companies to use VR and sell it to them. 3.2 Market description The virtual reality market is getting larger despite being new. N Tech Corporation plan to manufacture and provide virtual reality services for many businesses and industries to satisfy their various needs, mainly for architecture firms. As of present, only certain companies such as Microsoft and Google provide this sort of services because most of virtual reality manufacturing firms such as Oculus Rift and HTC Vive are focusing on producing virtual reality technology for gaming purpose. So, N Tech Corporation will be the earliest company to deliver this services for the benefits of other business too. The ideal customer for G-VR are business organizations and schools that want to provide interactive and smart working and learning atmosphere for employees and students. We are planning to start with European firms because the market share is large and they always seek for innovation and advance technology to boost their business. The number of registered European companies in 2014 is 2,125 and these firms are our targeted customer. Our clients are also firms who want a sophisticated gadget that is affordable and user-friendly since most of business people are not tech geeks, so they will need a VR headset that is easy to use. After that, we will be focusing on producing VR headset for students. This VR is created uniquely for education purposes.
  • 6. 5 3.3 Competitive review There are 2 main competitors of G-VR: Microsoft HoloLens from Microsoft Corp and iPad Pro from Apple Inc. (refer Appendix 1). Also, N Tech Corporation might have a new competitor as on March 2nd 2017, ZTE has announced about their new VR during the Mobile World Congress 2017 that took place in Barcelona, Spain. Yet, the details about their new VR is still unknown. Thus, Microsoft and Apple will remain as our strong competitor. These tech giants’ products have almost the same resemblance with ours and they have a big advantage in terms of reputation in IT industry while N Tech Corporation is still young and new. Microsoft HoloLens is a headset that connects with holographic computer, enable the user to engage with digital content and interact with holograms within an environment such as office space. iPad Pro is a line of Apple Inc. tablet computer that run the iOS operating system and it comes with large memory storage, wider screen, the retina flash feature, and a faster processor. Although the features of each product from these companies are different, their functionalities are almost the same as G-VR and this will create an intense competition and the type of targeted consumers will likely be the same as N Tech Corporation. For N Tech Corp to enter the market it would be a bit difficult due to the existence of Microsoft and Apple as the fore player in the industry but as we are offering a reasonable price for G-VR, N Tech might be able to compete with them. 3.4 Channels and logistic review Supplier G-VR comprises of internal components, external body, screen and camera. Our company will get the internal components supply such as processor integrated circuits (IC), memory, user interface ICs, power management ICs and electronic chips from the European tech companies; STMicroelectronics and Nordic Semiconductor. The sensor will be equipped by Ricoh Ltd and Etron Technology while the screen will be endowed by Samsung Display (AMOLED) with 5.7 inches and 1920 x 1080 display. For the external body of G-VR, a specialized plastic material developed for VR headset, tefanyl® VR, produced by Mitsubishi Chemical Performance Polymers Inc will be used because it is light and has a good impact resistance and the camera will be provided by Motorola.
  • 7. 6 Manufacturing The manufacturing and the assembling of G-VR will take place in France. Distribution G-VR will be distributed to big European companies first as they are our targeted customer and later for schools. We will be directly dealing with firms and schools and we are not planning to distribute through companies such as Amazon Inc. because the commission demanded from the third-party distributors and retailers is very high. 4. Marketing Objectives As a start-up company, N Tech Corporation’s marketing objectives are: - Creating a successful brand image that fits to the nature of the product - Reaching around 200 companies for the first year - Selling more than 2000 units of G-VR for the first year - Keeping the rejection rate of G-VR lower than 2% within a year - Achieving at least 6% of market share within 2 years - Being a number one VR headset supplier in B2B market at least in 5 years - Opening a branch office in other continent than Europe in 8 years N Tech Corporation’s first objective is to make a successful brand image, where customers believe our product will lead them to innovation. Then, settling down well in the market will be our prior objective. 5. Core strategy 5.1 Competitors targets As mention in the general competition analysis, our three main competitors are the Silicon Valley’s giants; Microsoft Corp., Apple Inc and Google Inc. These organizations have been in the IT industry for a long time and they are the major players. Their products are being sort by many big European companies, who happened to be our target customer and this make the
  • 8. 7 competition more intense. However, N Tech Corporation closest competitor would be Microsoft Corp because HoloLens is almost identical to G-VR in design and functionalities. iPad Pro from Apple are computer tablets that are very helpful for business but its function is quite limited compared to G-VR and HoloLens, however in schools these tablets are commonly found. Meanwhile, Google Glass is designed for communication purposes and it aims to replace the handsfree. The positioning of our products and the competitors in the Perceptual Map (Appendix 2) will be based on our competitive advantage, which will be explained in part 5.3 Competitive Advantage. Microsoft HoloLens is offered in two types, the Development edition, created for individual use and the Commercial suite, developed for organizations to enhance the business. The price for Commercial suite starts from 5,489 €. (all the specifications are shown in appendix 3). HoloLens Commercial suite offers many interesting features for business. The Windows Store is built specially for business enterprise, where the IT department of a firm can create their own applications to suit their HoloLens usage and firms can choose to share the software with other selected business users. Just like G-VR, The Kiosk mode in Hololens installed also help enterprise to enable demo. To top it all, the most powerful strength of Microsoft Hololens is their sensors that will attract large firms to purchase it. HoloLens has a variety of sensor which are important for their ‘human understanding’ feature; spatial sound, gaze tracking, gesture input and voice support. Microsoft also establish the Holographic Academy to train HoloLens users steps by steps. 5.2 Target Market To identify the target market, it is important to see how well our product satisfy consumer needs by dividing it into distinct groups of buyers. N Tech Corporation is the producer of virtual reality headset and market the product mainly to businesses and schools. G-VR is a well- established product created to target businesses, for example architects that are involved in buildings and constructions, where G-VR can be a useful mean. It also targets schools, with children in a lower age group from 7 to 17 years old. These information shows that N Tech Corporation follows a demographic market segmentation strategy based on age and occupation.
  • 9. 8 The company will then target these segments with products that meet the customer's needs. As for that matter, N Tech Corporation adopt the differentiated marketing strategy which focus on targeting each segment with a product. In this sense, there are two segments which are the children and the architects and both will receive different offers depending on their needs. This will eventually increase customer's satisfaction and one thing for sure is that it would not affect other segment if sales in one segment are declining. This explains why differentiated market segment is the perfect fit for N Tech Corporation to gain more profit. 5.3 Competitive advantage Our product is highly innovative and differs slightly from similar VR products in the gaming industry. We provide a sophisticated experience meant for business and learning purpose and not for entertainment. Our price differs massively from main competitors. For example, Hololens is priced at €5489 but they are using the hologram technology which is quite costly. But as we are focusing on its main function, which is to give businesses’ customers a virtual experience of their current products, we do not need holograms to do that, which lowers the production cost of GVR and the price as a total. Next, the functionalities are also one of its competitive advantages. First, we could see how the battery life is 6-7hours, which is longer than Hololens (2-3hours) and iPad Pro (8-9 hours). Again, the hologram technology consumes a lot of battery life, and as for iPad, its functions are different so it is quite difficult as to compare its battery life. Lastly, as the portability of technologies nowadays are quite important, we decided to use lighter components to design G-VR, making it the lightest among its competitors. 6. Marketing mix 6.1 Product Description Our product, ‘G-VR’, is a virtual reality headset that can be used by business in their operations or by educational facilities to provide students with a new interesting learning
  • 10. 9 experience. Instead of looking at a flat screen our virtual reality headset gives people the chance to look at things and move through a digital world. Characteristics  Our VR headset has a cozy and comfortable design and can be adjusted for the perfect fit.  Weight: 350 grams. It is light on the head and doesn’t strain the neck. You can move your head and body around without difficulty.  It has an installed camera to take pictures for storage. It also has a flexible motion sensor and visual position features. Furthermore, it possesses 100-degree field of view and 360-degree tracking.  6-7 hours of battery life.  It is both stationary and movement based.  Big frame rate and smooth movement with a 5.7 1920 x 1080 display.  Product will be provided in two colors: White for businesses, who are attracted to a simple and ‘professional’ design, where white is a calm and plain color, perfect for this purpose. For schools our product will be provided in blue, because it’ll be used by students, who are attracted to a creative and ‘fun’ design.  Can be connected with Mac OS and Windows devices.  2 years of warranty Usage includes using it in architectural firms, giving an experience to the customers as to how a certain architectural design could be in the future. Other than that, in schools, subjects like History could be aided by G-VR, for example replacing visits to museums with interactive visuals of them in G-VR. It could also be used in hospitals, to help traumatic patients to recover from phobias with helpful related visualizations. Brand Produced and developed by N Tech Corporation.
  • 11. 10 6.2 Promotion Exhibition and fairs We will begin to introduce our product in exhibitions for new products. This a good way to make our brand known, get in touch with potential customers and make lots of new contacts. Since our product is very innovative we will also take place in IT fairs, specifically meant to explore the technological market. Trial System To attract business to invest in our product we provide a special service, which allows companies to rent our product for a few months in order to test and explore it further. This rent will be provided at a very cheap price without obligation to purchase afterwards. We are confident that after testing our product customers will proceed to purchase. Partnership / sponsorship In our early stages of operating getting known on the market is crucial. To advertise ourselves among large corporations we are going to partner up with Intel - data center solutions, IOT and PC innovation. After the mutual agreement, Intel has become an initial sponsor of N Tech Corporation and effectively use our products in their everyday operations, after we have provided them with 100 units for free. The purpose of the partnership is not to gain profit but rather to gain recognition through Intel and advertise ourselves, since they are a large well- known company on our market of interest. For Intel, by investing in us they own 5% of the company in stocks and collect dividends monthly. Advertising We also advertise our product by using the self-service Linkedin Ads platform. With the widespread of social media and internet, Linkedin is a good platform for N Tech Corporation to be recognized by other companies. We are using two types of ads which are the sponsored updates and text ads. Both of these allow us to send visitor directly to our websites and company page. The difference between these two ads are where they were displayed and how to create them. (See appendix 4)
  • 12. 11 6.3 Pricing Our virtual reality headset is a highly technical and innovative product with lots of expensive features. This all contributes to a high retail price of 600 Euros/unit. Cost-based Our product’s price will be based on its cost. Because N Tech Corporation is fairly new to the market, it is quite important that we have a lower price than potential competitors. Which is why we considering it to be cost-based instead of value-based, even though in the beginning we decided the creation of G-VR based on what organizations would need in the future technologically to fit in with the fast-paced evolving world. Price Barometer As we are launching a new product, it is important that we don’t set our price too high. This way we can penetrate the market quickly and bring in as many customers as possible. Because our product price is similar to the cost of a gaming console, it will be for the purposes of organizations and schools with more characteristics towards their needs. Based on an article on Digital Trend, the breakdown cost of Oculus Rift is approximately $206, which equals to 194€, without the lenses. The characteristics of a VR headset is quite similar except for a few, so we estimate the price of the headset to be 200€. For us, lenses will be quite an important quality that G-VR should have. With an estimation of 100€ of lens per unit, the total cost G-VR/the price floor will be €300. As for the price ceiling, looking at Microsoft Hololens, it is 5489€, therefore that is our price ceiling as our consumers would be looking for a cheaper alternative. Discounts Being a start-up company launching a brand-new product, discounts for interested companies is not recommended. However, we are aware that in the case of schools, governments will most likely give subsidies, and instead of schools having to pay in full
  • 13. 12 amount, governments will pay part of it. This in a sense will be discount for schools, but not for us, because we will receive the same amount but paid by two organizations. 6.4 Place / distribution strategy Place We neither have a physical or online store nor online distribution channel. We contact businesses through contacts or have companies taking the initiative and contact us. Our products are manufactured in our factory in France and stored in the warehouse of the same facility. How will we get our product to customers? After meeting businesses interested to invest in our product, we can produce the number of wanted units and distribute it directly from our warehouse with safe transport. In case of schools the products may be delivered to the schools through the government, for political purpose. 7. SWOT analysis This part will present the SWOT analysis of G-VR business model in the field of architecture and education. The SWOT analysis is an effective way to identify the strengths of the business in the current market situation and the weaknesses of the business. These are related to the internal factor of the company in which N Tech Corporation have a complete control over it. The SWOT analysis can also help N Tech Corporation to gather all the opportunities and to identify threats which are mainly influence from the external environment of the company.
  • 14. 13 Strengths The first strength of G-VR would be providing an interactive learning experience for children. It is no doubt that this new method of learning using virtual reality is fairly new. As compared to the traditional way of learning through interaction in the classroom, thanks to G-VR children can now discover real life simulations in subject such as history and science. As they go through the process they would be engaged with interactive graphics and audios, likewise, giving them a sense of really being there. Thus, G-VR creates a more exciting learning process and children are more likely to understand what they learned in the classroom. It is the same for architects who can fully utilize this new technology in the building and construction industries. It can help their customers make the right choice of their preferred design. On top of that, G-VR is also smart and user friendly. Unlike any other virtual reality applications that are used for leisure and entertainment e.g. gaming, N Tech Corporation is targeting to market the G-VR to businesses in the field of educational and architecture. Instead of using complicated system and software like in the gaming industry, G-VR provide an easier approach for the end users. The design of it concerns the user’s ability to understand easily, effectively, safe and fun to use. It is therefore enhanced with the system that is compatible to use by children and architects. Weaknesses The virtual reality technology is relatively new in the market and this has a downside to our company where our branding image is somewhat low. Aside from having a difficult time to meet the customer’s expectations, it would somehow affect the impressions of the customers on our product as it is not well known in the market. Consequently, businesses out there have trust issues and they are less likely to invest their money in using virtual technology for their business. Hence, the lack of experience especially in advertising and marketing the product will result in a low market share for N Tech Corporation. Another weakness would be the side effects of using G-VR. Some people are worried of having their eyes so close to the screen as it can cause motion or simulation sickness. Considering the fact that N Tech Corporation is a startup company and many of the G-VR applications have not
  • 15. 14 been tested properly yet. It could have an adverse side effects to the human brain and cognitive systems. Opportunities Being the pioneer of virtual reality manufacturing company in an emerging market and to offer especially to education and architecture businesses is a major opportunity for N Tech Corporation. This is primarily because people will familiarize with our brand more easily without the need to put much effort in advertising and marketing. Hence, it will therefore increase profit by lowering the cost of advertising and the money can be used to improve other area of G-VR. Because of being the second in the market we can also observe how the market react to our product and thus, gain the opportunity to create a unique positioning in the market to engage with other businesses. Also, in the cutting edge of technology, businesses began to recognize the importance of the most current and high tech development for their businesses. This would be an opportunity for N Tech Corporation to increase the number of investment and attract more investors to increase market share and expand the business to the global market. Threats There is always a competition when introducing a new product into the market and therefore one of the major threats is the entry of a strong competitor. The biggest competitors for G-VR are high-tech products such as HoloLens produced by Microsoft which have very similar purposes. In this sense, the concept of Microsoft HoloLens is the same as G-VR where they want to transform businesses and open up to new possibilities of how we interact. Other existing virtual reality companies such as Oculus Rift, HTC Vive and Sony VR also form a huge threat to the company. This is because although they designed the virtual reality primarily for gaming industry, there is a possibility in which these companies might extend their business to B2B type of market. As they are already well known by the market, N Tech Corporation would have to compete with them in order to maintain their market share and to stay in the market.
  • 16. 15 8. Organizationand implementation Organization structure N Tech Corporations have five initial co-founders, where one takes the position as the CEO but all possess the same amount of stocks. The other four are in charge of four main departments (See appendix 5).  CEO of the company, oversees all the activities within the company.  Sales and marketing director, executes and supervises the marketing activity. Financial director, ensures all operations are within the budget.  Supply chain manager, involved in the management of raw materials and inventory/stocks. (purchasing department)  IT/ R&D department, involved in the development and innovation of the products. They also handle the maintenance of the product. Moreover, the co-founders a small number of employees are working in the manufacturing of the product and more people are successively going to be hired in the expansion of the company. At the startup, N tech Corporations is remaining small, in order to save cost before revenues will be gained. Implementation Our market and advertising plan which is explained under promotionwill start in March 2017 and continue throughout the year to obtain profit by December. Moreover, our promotion we plan to be active online through LinkedIn, where we can create relations with clubs and associations and further get our brand known. N Tech corporation’s operations will take place all over Europe, therefore having our products manufactured in France, gives us a shorter distribution channel, compared to companies that may have their products manufactured in China. Our official launch will take place in March and Promotion and operations start from then.
  • 17. 16 9. Financialprojections, break even and budgets Promotion expenses (fixed):  Promotions (LinkedIn) € 50,000  Cooperative promotions with companies (Intel) € 30,000 Distribution expenses (5%ofsales):  Freight and distribution € 60,000 Pro Forma Profit-and-Loss Statement for the 12-Month Period Ended March 31, 2018 % of sales Net Sales €1,200,000 100% Cost of goods sold € 600,000 50% Gross margin € 600,000 50% Marketing Expenses € 140,000 11.67% Promotion expenses € 80,000 6.67% Distribution expenses € 60,000 5% General and Administrative Expenses € 276,000 23% Managerial salaries and expenses € 240,000 20% Indirect overhead € 36,000 3% Net profit before income tax € 184,000 15.33% As we are a new startup company and the cost of making a VR machine is high, we estimate that the initial capital needs to be quite high as well. Which is why the starting of the capital will come from us, the 5 co-founders of the company, as each of us will provide 50,000€. Then, we are going to apply for a 50,000€ bank loan, as well as 300,000 from our investors, which totals our initial capital at 600,000€.
  • 18. 17 The expected cost for one machine would be 300€, so with our partnership with Intel, we would provide them with 100 units, which equals to 30,000€ of cooperative promotion expenses. We estimated that the demand per year would be 2000. After multiplying it with the price of G-VR, the total sales that we will get us 1.2 million. After getting the net profit before income tax, supposing that we have the same net profit every year, (600,000/184,000), the duration that would take to cover the initial investment will be 3.3 years. Based on the Pro Forma template, the promotion expenses, managerial salaries/ expenses and indirect overheads will be the fixed cost, so by calculating 80,000+276,000/1-(0.5+0.05), we will get the breakeven sales revenue = € 791,111. By dividing it with 12 months and 600€/price per unit, we will get 110 of units to breakeven per month. But as the market is limited to only organizations, it could be hard to achieve this breakeven, which is why the expected duration of ROI (return of investment) is 3.3 years. 10. Conclusion Working on this project has brought on many challenges but also many new achievements and knowledges gained. By meeting and working together we’ve transferred what we’ve learned in class to build our own firm and gone through every detail in the process of launching a new product. Our idea from the beginning is different from our final product and plan as it was developed and transformed in the early stages of our progress until we landed on a final agreement, which has been shown in this report. The main problems that has occurred along the way of N Tech Corporation is firstly, finding good contacts. As a business to business operating company building a network is crucial. Moreover, finding our contacts and potential customers, persuading firms to purchase our product has also shown to be a great challenge. While it is a valuable product that can help
  • 19. 18 them in adapting to new technology and developing their organization the high price makes it a big investment that they want to be sure about before proceeding with. With this marketing plan, we’ve learn how to explore and understand the different markets relevant to our product. We’ve gained more knowledge in pricing and the effects and benefits of selling at a certain price, and the importance of this. The communication between us and our teamwork has been good from the start but grown very strong towards the end of this project. One thing we found challenging to begin with but adapted to and grew more confident with towards the end was our own decision making and the outcomes of it. Finally, our greatest achievement of this whole process is being able to complete our project and put together something that we can all be proud of. 11. Appendices Appendix 1: Comparison of two main competitive products of G-VR *OS for connection or OS that is already installed G-VR Price: 600 € Battery capacity: 6-7 hours Weight: 350 grams 3D Vision: Yes Motion Sensor: Yes OS*: Windows 10 and Mac OS Microsoft Hololens Price: 5 489 € Battery capacity: 2-3 hours Weight: 579 grams 3D Vision: Yes Motion Sensor: Yes OS: Windows 10 Source: https://www.microsoftstore.com/store/ msusa/en_US/pdp/productID.5070023900
  • 20. 19 Ipad Pro (12.9 inch, Wi-Fi, 32 gigabytes of storage) Price: 909 € Battery capacity: 9 hours Weight: 713 grams 3D Vision: No Motion Sensor: No OS: IOS and Mac OS Source: http://www.gsmarena.com/apple_ipad_pro- 7562.php Appendix 2: Perceptual map of positioning
  • 21. 20 Appendix 3: Microsoft HoloLens 1.0 specs
  • 22. 21 Optics  See-through holographic lenses (waveguides)  2 HD 16:9 light engines  Automatic pupillary distance calibration  Holographic Resolution: 2.3M total light points  Holographic Density: >2.5k radiants (light points per radian) Power  2-3 hours of battery life Sensors  1 Inertial Measurement Unit (IMU)  4 environment understanding cameras  1 depth camera  1 2MP photo / HD video camera  Mixed reality capture  Microphones  1 ambient light sensor Human understanding  Spatial sound  Gaze tracking  Gesture input  Voice support Input / Output / Connectivity  Built-in speakers  Audio 3.5mm jack  Volume up/down  Brightness up/down  Power button  Battery status LEDs  Wi-Fi 802.11ac  Micro USB 2.0  Bluetooth 4.1 LE OS and apps  Windows 10  Windows Store Source: https://www.microsoftstore.com/store/msusa/en_US/pdp/productID.5070023900
  • 23. 22 Appendix 4: N Tech Corporation’s LinkedIn page
  • 24. 23 Appendix 5: Organization map of N Tech Corporation
  • 25. 24 12. References ZTE Corporation. 2017. ZTE launches E2E VR live solution. [ONLINE] Available at: http://www.zte.com.cn/global/about/press-center/news/201703ma/0302ma4.[Accessed 5 March 2017]. Microsoft Store. 2015. Microsoft HoloLens Specification. [ONLINE] Available at: https://www.microsoftstore.com/store/msusa/en_US/pdp/productID.5070023900. [Accessed 4 March 2017] SuperData Research. 2016. Virtual Reality Consumers. [ONLINE] Available at: https://www.superdataresearch.com/market-data/virtual-reality-industry-report/.[Accessed 2 March 2017].