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TACTICAL
   SALES
    PLAN
 PC TABLET MALATA
      - A1001




Prepared by: QUYEN NGUYEN|7239084
    Prepared for: CHI WING CHAN
          Date: 16 SEP 2011
                                    1
TABLE .OF.CONTENT


 Executive Summary                  3    Part 3: Sales Strategy              22

 Part 1: Background & Assumptions   4    Target customers                    23

 Product Description                5    Selling Methods                     24

 Product Features                   6    Resources Requirements              30

 Boundary Definition                7    Critical Success Factors            32

 Assumptions & Market Limitations   8    Cost and Profit                     33

 Part 2: Market Assessment          9    Part 4: Sales Implementation Plan   37

 Demand Forecast                    10   Monitoring & Control                38

 Competitor Analysis                12   Risk Management                     39

 Customer Analysis                  15   Conclusions                         40

 Channel Analysis                   17   References                          41


                                                                                  2
EXECUTIVE.SUMMARY
This document is a Tactical Sales Plan for Malata PC-A1001, a Multi-Touch tablets from Malata, a high tech company
from China (belongs to Wanlida Group Co., Ltd.). For selling Malata in Australia in the next 3 years, we considered the
following factors:

      Background and Assumptions – We analysed product features and its geographic areas of sales in Australia
      (focusing on Sydney and Melbourne). We also made some assumptions that this sales plan based on.

      Market Assessment - In this part we focus on demand analysis for tablets in Australia market by the end of
      2011. PC tablets marketing will continue growing by the end of 2011 with Apple and Android taking 95% of
      market share and others sharing 5% of the pie. Main competitors are Apple, Samsung, Motorola and Blackberry
      aiming to 3 main segments which are consumers, professionals and enterprises. Main distribution channels
      include mortar and brick stores, online stores, catalogue selling and TV Home shopping.

      Sales Strategy – We choose to sell this product using mortar and brick stores such as Dick Smith, Harvey
      Norman and JB Hi-Fi. Besides that, we build up a website for it and sell it online using eBay and Amazon. To
      better compete and approach target customers, we also sell the product in extra channels which are
      universities and coffee shops. After that, we have a general estimation and calculation of cost and profit of this
      project for 3 year period.

      Sales Implementation Plan – In this part, we set specific milestones and checkpoints to implement the
      project so that we can monitor and control it effectively. To be proactive to any likely risks, we have set
      contingency plans and the way to avoid the risks at the beginning.

We believe that this Tactical Sales Plan is effective and achievable because it based on very careful consideration and
research about the industry and the market. We believe it will bring profit and will be the good start for our business.
                                                                                                                    3
PART 1
BACKGROUND & ASSUMPTIONS




                           4
PRODUCT.DESCRIPTION
 Malata PC-A1001 is a Multi-Touch Tablet
  running Windows 7 with an Intel Atom
  N540

 It is a product of Malata Company
  (belongs to Wanlida Group Co., Ltd.), a
  high tech company, which is one of the
  top 100 electronic enterprises in China


       Malata A1001 is now designed in
       white and black colors. It is
       apparently the grand finale
       among all Malata’s offerings. The
       elegant white casing and familiar
       Windows UI make A1001 appear
       gorgeous and impressive (Gadgets
       & Geek World, 2011).
                                            5
PRODUCT.FEATURES
  Features                      Descriptions                 Features                 Descriptions
                10”1024*600 Capacitive Multi-Touch LCD
   Screen
                Screen
    CPU         Intel Pinetrail N450                                    Wholesales price: $400
                                                          Price
                                                                        Retail price: $695


                10 inch 16:9 (1024x600) Multi-Touch
   Display
                Screen (Capacitive)
                                                                        •G-sensor, Touch Panel
                                                          Others        •Built in Microphone
                                                                        •1.3M Webcam
     OS         Linux/Windows 7                           Battery       3650mAh/7.4V
  Memory        1GB/2GB
                                                          Optional      Bluetooth
   Storage      2.5 inch SATA 160G/250G/320G Hard Drive   Functions     E-compass

   Camera       Build-in 1.3M Pixel Camera                Dimension     263 x 168 x 18.5mm for product

                •1 Mini VGA
                •2 USB
                •1 Headphone out
                •1 Microphone input
 Connectivity                                             Weight        990g
                •1 LAN RJ45
                •1 DC – IN 19V
                •1 Built in Rechargeable Battery
                •1 SD/MMC Card Reader
BOUNDARY.DEFINITION
                                       The product is distributed by Sunflowers Media, a
                                        Melbourne based company founded in August 2011.


                                       Distribution scope: Australia   wide   focusing   on
                                        Melbourne and Sydney.




   Company’s capital: AUD $300,000

   Key Human Resources: 1 General
    Director, 1 Chief Accountant, 1 Sales
    Administrator and 2 Sales executives

   Company’s culture: straight talk,
    collaboration and customer oriented



                                                                                          7
ASSUMPTIONS & MARKET LIMITATIONS

 Assumptions

    There are no changes in Government Regulatory related to PC Tablet market.
    Australian Economy remains stable in the next 3 years.
    Sales Executives are qualified and well experienced in the industry and in Australian market.
    All staff are well trained about the product.

 Market Limitations

  The product is quite new in Australian market and not many people in Australia heard about
   the brand.
  People have bad credibility for “Made in China” products.
  Limitations in hardware for Windows 7 Tablet make it hard to use other applications
   completely, besides web applications.
  The product is confronting a fierce competition with Apple iPad and other Android tablets
   which are more adaptable and responsive to new applications


                                                                                                     8
PART 2
MARKET ASSESSMENT




                    9
DEMAND.FORECAST
 Market size & Potential

Australian research firm IDC (International Data
Corporation) has predicted that following the
release of iPad 2, a range of second generation
tablets is expected to stimulate an 85% growth in
the Australian tablet market (Rust Report 2011)

According to Telsyte, media tablet sales in
Australia would be almost 1.2 million units for
calendar year 2011, driven by continued strong
demand from consumers and business segments
(Telsyte 2011)

Although IDC research and the empirical
evidence show that the majority of media tablets
are currently embraced as complementary devices,
they are eating into consumers’ share of wallet”
(Rust Report 2011)

IDC’s report titled “Media Tablet Special Report: Australia” also shows that whilst there is a
strong intention to purchase a media tablet by the end of 2011 by Australian consumers to
purchase media tablets in 2011, with 6 per cent, laptops/notebooks (34.8 per cent) and standard
desktops (27.6 per cent) are still strongly favoured (IDC 2011)
                                                                                             10
In general, PC Tablet market in Australia is a potential and growing market
DEMAND.FORECAST

               Market Share                         Australian Tablets Market share

                                                                 5%
By the end of 2011, the market leader in
Australia is expected to remain Apple with 60%
market share, down from over 90% in 2010.                  35%                        iOS
Android devices are expected to have 35% market                         60%
                                                                                      Android
share in 2011 with Blackberry tablet OS and other
platforms making up the rest of the market                                            Blackberry and other
(Telsyte 2011)                                                                        platforms



                                  According to the above chart, we can see that tablets market in
                                  Australia has high level of concentration. The two biggest
                                  players (which are iOS and Android OS) take the major part of
                                  the pie. Blackberry and other platforms such as Windows and
                                  HP are just taking a very small part (5%) of the market.

                                  That will be a big challenge to sell Malata A1001 to Australia
                                  market, especially when Microsoft is about to introduce its
                                  new Windows 8 tablets to Australia in the next few months
                                  while Matala is just using Windows 7

                                                                                                     11
COMPETIROR.ANALYSIS
There are many tablet brands in Australia market at the moment. However, there are just a few operating systems for
all of them including (but not limited to): iOS, Android OS, Windows 7 Starter, Palm Web OS, and QNX (for the
BlackBerry tablet). The following figure shows the advantages of each Operating System.




                                                                          Source: Frost and Sullivan, 2011    12
COMPETIROR.ANALYSIS
         The followings are some major competitors in media tablets market in Australia
         Apple is the biggest competitors in the market. IDC expects Apple to maintain a 70-80%
         share of the worldwide market and continue to dominate the Australian market. Its
         competitive advantages are strong and unique Operating System iOS, good design and
         innovation.

         Samsung Galaxy is considered the strongest competitor of Apple in international and
         Australia market. Samsung is forecasted to take more than 30% market share in 2011 in
         Australia. Samsung is expected to follow with a 10.1 in. Galaxy Tab with Android 3.0
         Honeycomb later this year with many outstanding functions.

         Motorola Xoom is also a worthy competitor in function, Like the Samsung Galaxy, the
         Motorola Xoom will also run on the Android 3.0 Honeycomb operating system. The Xoom
         comes with two video capable cameras and is another anticipated addition to the tablet
         market. It offers high processing power and improved gaming capability.

         BlackBerry is also carving a name in the tablet market with the release of the PlayBook in
         April this year. The PlayBook will support both Android and the Java based apps that currently
         run on BlackBerry phones, giving users access to an extensive range of applications. The
         PlayBook smaller and slimmer than the iPad 2

         Other vendors and designs such as Smaller players such as Hewlett Packard, Asus, Toshiba,
         Microsoft and Dell are also on track to release their own tablet devices in the second half of
         2011. Many of these products will be more competitive in function and price. One
         differentiation path that some vendors are likely to take is to focus on specific market
         segments, such as commercial. While benefitting from unique product positioning, they are
         likely to address a smaller overall market and will need to be competitive with devices from
                                                                                                   13
         Apple and others.
COMPETIROR.ANALYSIS
In general, besides Apple, the strongest competitors with significant competitive advantages and
differences, other competitors in tablets market in Australia have an extremely fierce competition
environment. They are all strong and experienced competitors that are quite similar in functions,
designs and prices. On the other hand, Malata is running on Microsoft OS that is considers not as
effective as others, therefore, it would be tough to sell Malata in Australia market,

However, Apple are losing its market share to other competitors (from nearly 90% in 2010 to 75%
in first half 2011), it means customers now pay more attention to other brands, not just Apple.
They are also more price sensitive than before. That is a good sign for Malata to enter Australia
market.




                                                                                               14
CUSTOMER.ANALYSIS
Main customers for PC tablets are described as follows:




                                                          Source: Frost & Sullivan 2011   15
CUSTOMER.ANALYSIS
Consumer market: They are individual from all age. They may be
students who need convenient and small devices to bring to
everywhere. Or they may be housewives who want to do
housework, take care of children and entertain themselves at the
same time. For this customers, entertainment functions such as
internet, music, movies and games are more important to them.
This market has a lot of competitors but they seem to provide
similar offerings.

                                            Professional: They are professionals from all area of life. They
                                            may be a real estate agents who need a light and small tablet
                                            which is strong enough to store all the necessary pictures and
                                            information about properties to show to clients. They may also be
                                            designers and architectures who have to travel interstates to meet
                                            up with clients. For this market, professional functions such as
                                            graphic, storage and memory are more important to them.




Enterprises: Telsyte estimates that around 20,000 Australian
businesses have purchased at least one media tablet for their
organisation so far. This is a young and new market that is ignored
by many big competitors. This market requires products with
capable of video conferencing, viewing documents (reader
functionality), and on-the-go computing.                                                                     16
CHANNEL.ANALYSIS
Electronic Stores                                     Retailer market share


                                                                  11.0%
What are they? Harvey Normans, JB Hi-Fi,
Woolworth (Dick Smith Electronics), Good                                                  Woolworths Limited
Guys, Best Buy, etc.                                                       15.0%
                                                                                          JB Hi-Fi Limited
Advantages. They are brick and mortal stores.
                                                  55.3%                                   Harvey Norman
They let customers feel real products.
                                                                                          Holdings Ltd
Salesperson can communicate directly with                                 18.7%
                                                                                          Others
customers. Customers will make purchase
decision more easily.
                                                                              Sources: IBIS World 2011
Disadvantages. They are not exclusive and
unique. Our new product will be directly
compared to and compete with other
products. This channel is also in fierce
competition with online store.

This traditional channel is still popular until
now since people still want to have more real
experience with the product before buying it.
                                                                                                             17
CHANNEL.ANALYSIS
Brand Stores


What are they? They are stores of specific
tablet brands

Advantages. They have all types of product
models and series of one brand. Salespeople
have better knowledge about the products.

Disadvantages. This is a very costly channel
that is only used for famous and luxury
brands.



This channel is only good for big and famous
companies to build long-term brand images.
For selling, this channel will cost a lot of
money for rental, decorative and human
resources.
                                               18
CHANNEL.ANALYSIS
Online Store


Main         competitors.        Woolworths,
Catchoftheday.com.au,             Dealsdirect,
Dstore.com,    wishlist.com.au,   Oo.com.au,
Graysonline.com,au, and eBay.com.au.

Advantages. This channel is really cheap and
easy to operate. It provides spaces to provide as
much information about the product as you
want.

Disadvantages. Customers can not feel and
experience the product before making purchase
decision. This channel also requires shipping
fees.
This channel is good for new products in the
market, especially for companies that have
limited capital and resources. The problem is
how to promote the websites effectively.
                                                    19
CHANNEL.ANALYSIS
 Catalogues



What are they? They are printed
catalogues sent to each household
with order forms.

Advantages. Cheap and convenient.
New products catalogues can reach a
numerous of target customers.

Disadvantages. It may cost a lot
money for printing and delivery of the
catalogues.




This is good to reach a large number of target population and leverage the brand. But it may be
costly and hard to control if the catalogues come to the right audiences.
                                                                                             20
CHANNEL.ANALYSIS
 TV Home Shopping



What are they? They are TV Program
introducing a specific product in
which customers can make orders by
calling to a telephone number on the
TV screen.

Advantages. This channel can cause
compulsive buying and highlight just
the good points about the products.

Disadvantages. It may cost a lot
money for buying broadcasting time.




                                       21
PART 3
SALES STRATEGY




                 22
TARGET.CUSTOMERS
In case of Malata A1001, we should focus on Consumers market as the products do not have
required functions for Professional and Enterprise market

Target customers should be as follows:
Young Adults: Aged from 25 to 35. They need a tablets for
their convenient life: when waiting or being on buses and
trains, at lunch time or when waiting for friends at cafes...

Housewives with children: With PC tablets, they can go
online when cooking, shopping and cleaning. That helps
housework less boring. Besides, they can use the tablet to
teach their children about the world and play game with
their children at anywhere and anytime they want .

Students: PC tablets will make their studying much more
easy. They can store their lectures in the tablets and read it
everywhere at any time they want. They can also get
connected with their friends and their lecturers when
needed. With tablet PC, long distance studying will be much
more easy.
Those customers are all quite price sensitive. Therefore, low price may be a competitive
advantage of Malata as its functions is quite similar to other PC tablets             23
SELLING.METHODS
Expert Reviews

Before making the product available in the market through selected distribution channel, there
should be some marketing activities. One of them is sending the product to experts to review.


CNET is a common way to get the product
reviewed. CNET editors will give their
comments about pros and cons of the
product. This will help it similar to
customers.

Blogs is another way to get the products
reviewed. We will need to send our product
to the owners of the blogs, who are high
tech experts, for getting their comments
about the products. Customers always refer
those blogs before they make their own
decisions.

Having an article in “Digital Life” columns of newspapers such as The Age or smh.com.au is also
a good way to promote the products.                                                            24
SELLING.METHODS
Electronic Stores
This traditional channel is to make the products available to all kinds of customers including
compulsory ones who do not intend to buy the product at the beginning. It is the most popular and
easy-to-find channel for the product.

For this channel, we focus on big and famous
stores in Australia due to limited capital and
quantity of products. Chosen store should be
Harvey Normans, Dick Smiths, Good Guys, JB Hi Fi
and Best Buy. The stores are famous and many of
target customers may come there to look for their
ideal tablets.

Sample products will be placed in those store at
eye-catching places for demo using. Each product
will be sold with a free case.

Retail price at electronic stores would be $700.
The stores will get 5% of selling price for each
product sold. Free tablet cases will be provided by
our company.
                                                                                               25
SELLING.METHODS
Product website
Building a website for the product is what we will do. This website will be called www.malata-
australia.com.au and customers can make their order and payment directly from the websites
                                             This website will include all information about
                                             product functions and manual. There will also be
                                             comments and judgments of customers and experts
                                             about the product as well as a forum so that
                                             potential customers can get their questions about
                                             the product answered by our experts.
                                              Selling price in the website would be lower than in
                                              electronic store as it would be cost less than
                                              electronic store. It would be $680 for a tablet. Free
                                              cases are also provided and we offer free delivery
                                              for customers who are living within 10 kms from
                                              Melbourne and Sydney.
To promote our website, we use Google Search Engine and Google Ads for key words “tablets”, “PC
tablets” and “Matala”. We also let the URL appear on other tablet forums by participate on them.

Other review websites we use such as CNET will also help to spread our websites URL to our
potential customers                                                                      26
SELLING.METHODS
Online Stores

Besides our own websites, we will
also use other commercial websites
such as eBay and Amazon. This
channel will help bring the product to
much more customers who enjoy
shopping online


With those websites, we do not need
to do any marketing activities as they
are well known enough. Selling price
for this channel may be $670 and the
website will get $15 for each product
sold. With eBay which applies
auction method, starting price will be
$670, we will get $670 of the final
price and they will take the rest.



                                         27
SELLING.METHODS
University Channel

In the next 5 years, textbooks will replace traditional print versions in the next five years. This trend
bodes well for Pearson - an international producer of educational materials, started to produce e-
textbooks and online course supplements. Students will need to have PC tablets to store their
studying materials as well as other educational apps.


We will need to promote our Malata A1001
in university websites so that every students
can see it. We will corporate with student
Union to sell our product in university. We
will put out product samples in university
library and some main classroom, so that
students can have chance to test the
products. We also offer special price for
university students who are very price
sensitive.


Selling price for this channel may be $670
and we will send the universities free
products to equip their classrooms .
                                                                                                       28
SELLING.METHODS
Cafes

Besides students, young adults are also our target customers. Their most popular places are coffee
shops. Coffee shops are where they spend their time after work for dating, meeting friends and
relaxing.
We will corporate with popular coffee
franchises in Melbourne to sell our product
(Starbucks, Gloria Jeans, etc…). We will put
out product samples in those cafes so that
customers can have chance to test the
products. We will put our brochure their so
that customers can make order directly with
us or they can make order from the coffee
shops.


Selling price for this channel may be $695
and we will send the universities free
products to equip their classrooms .




                                                                                                29
RESOURCES.REQUIREMENTS
Financial Resources


Financial resources will be needed for
the followings:

Import Malata tablets from China

Warehouse

Labor cost

Operating cost

Channel cost

Brochure and Product manual in English

Needed marketing activities (product
review and websites)


                                          30
RESOURCES.REQUIREMENTS
Human Resources


Job Titles                           Description and Requirement

Sales Director                       General management. Strategy and Planning Preparation. Problem Solving.
                                     Have experience and knowledge about tablet market in Australia. Well
                                     presented and have good relationship with distribution channels
Account Managers (2 persons) in
charge of:                           Direct contact points between channels and the company. Have experience
•Person 1: Mortal and brick          and knowledge about the market and the channel they are in charge of. Have
channels (Stores, Universities and   good relationship with the channels and good negotiation skills. Have good
Café shops)                          knowledge about the product.
•Person 2: E-commerce.

Sales Administration (1 persons)     In charge of paperwork and sales contract. Assist Account Managers in daily
                                     administration tasks. Good eyes for details, excellent in verbal and writing
                                     communication. Good at computer.

Chief Accountant (1 person, part     Manage capital, revenue, and cash flow of the company. Prepare tax report
time)                                and return. Trustworthy and honest. Good eyes for details


                                                                                                              31
CRITICAL.SUCCESS.FACTORS
       Product Differentiation                                Good relationship with channels

As the product’s functions are similar to other        Distribution Channels play an important roles to the
tablets in the market. The only way we can do to       success of the product. Distribution channels are faces
differentiate the product is make its price the        of our countries. Having good relationship with
lowest aiming to price sensitive customers such as     channels, we could have many advantages in displaying
housewives, students and young adults who do           and selling our products. We also can get valuable
not have much money for such a product.                information about customers from the channels. Special
                                                       channel like universities require special relationship
We also should find exclusive and unique               between the Account Manager and universities’
distribution channels such as universities and         Managers.
cafes where our target customers often visit to
better compete with other products.
                                                                Superior after-sales services


                                                          This is another way to differentiate our product
         Good Sales Forecast                              with others. Superior after-sales services can be
                                                          provided by paying more attention to customers’
                                                          question and complaints. Through our forum on
Having good sales forecast will help us to control
                                                          our website, we will answer all the questions
our stocks in warehouse and for distribution
                                                          customers may have and resolve all issues related
channels. If we import too many products, we will
                                                          to our product.
have to pay a lot for storage, but if we import too
little, we will lose our chance to sell our products
for channels.
                                                                                                          32
COST&PROFIT
Sales Estimation & Explanation

•As mentioned above, about 1.2 million units of tablets would be sold
in Australia by the end of 2011. In which, Apple and Android will take
about 80% of market share. Blackberry and others only get 5% of
market share (about 60,000 units). In our estimation, the maximum
units of Malata tablet that could be sold in year 1 will be about 1000
units. Due to limitation of capital, we decide to import 700 units for
the first year.

•In Year 0, we have $300,000 of capital, we do not need to pay any labour and operating expenses except for
Marketing. We will spend $280,000 dollars to buy stocks from China, $3,500 tablet cases for promotion and
about $16,500 for marketing activities such as product reviews, creating and running product websites,
preparing the product manual in English, and promoting our website on other well known websites in
Australia.
•In the end of Year 1, we have to pay employee salary, commissions, channel cost and buy stocks for year 2.
Marketing expenses will be decreased as customers are familiar with the products. The number of products
needed for year 2 is increased in comparison with Year 1.

•In the end of Year 2, we have the same expenses as year 1, marketing expenses keeps going down. The
number of products needed for year 3 is increased in comparison with Year 2.

•Sales of the products should be ended in the end of year 3 as there would be new products that have superior
functions. In Year 3, we do not need to buy anymore products. And the whole amount of Sales in year 3 is
compensation for loss in year 1 and year 2.
                                                                                                                33
COST&PROFIT
Total Cost
   Total Cost



   Item                                    Year 0                     Year 1             Year 2           Year 3
   Salaries & wages                                             0    $125,000           $125,000         $125,000
   Product Cost                                 $280,000             $320,000           $400,000               0
   Marketing Expenses                           $16,500              $10,000             $5,000           $5,000
   Free tablet cases                                $3,500            $4,000             $4,500                0
   Channel Cost (5% of gross sales)                  $0              $24,325            $27,800          $34,750
   Sales commission (3% of gross sales)              $0              $14,595            $16,680          $20,850
   Total expenses                              $300,000              $497,920           $578,980        $185,600

   Labour costs
                                                                      Product Cost
             Staff           Year 1        Year 2          Year 3
   Sales Director           $50,000       $50,000         $50,000     Wholesales
                                                                                           Year 0     Year 1
   Sales Administration     $25,000       $25,000         $25,000     price: $400                                  Year 2
   Chief Accountant (part-
                                                                      Quantity
   time)                    $15,000       $15,000         $15,000                           700        800         1,000
                                                                      Imported (unit)
   Account Manager
   (Electronic Stores and                                             Total Cost ($)      $280,000   $320,000 $400,000
   University)              $20,000       $20,000         $20,000
   Account Manager (E-
   commerce and cafe)       $15,000        $15,000         $15,000
   Total ($)               $125,000       $125,000        $125,000                                                          34
COST&PROFIT
Gross Profit Before Tax

Gross Profit Before Tax



                              Year 0              Year 1            Year 2          Year 3
Total Expenses ($)                      300,000            $497,920       $578,980        $185,600
Gross Sales ($)                               0            $486,500       $556,000        $695,000
Gross Profit before tax                -300,000            -$11,420        -$22,980       $509,400




Selling price: $695                        Year 1                Year 2             Year 3
Unit sold (unit)                            700                   800                1,000
Gross Sales ($)                           $486,500              $556,000           $695,000



Discount rate              15%                         IRR                                   0.16
NPV                       $7,632                  Payback period                           3 year



                                                                                                     35
PART 4
SALES IMPLEMENTATION PLAN




                            36
MONITORING&CONTROL
Milestones                       Checkpoints                                 Duration

Industry and Market Analysis     •Industry Overview                          1 month
completed                        •Industry Performance in the past 5 years
                                 •Competitor Analysis
                                 •Target customer Analysis
                                 •Critical Success Factors
Business Plan finished           •Feasibility Study                          1 month
                                 •Sales Strategy in 3 years
                                 •Cost and Budget estimation
                                 •Profit estimation
                                 •Contingency Plan

Purchase contract done           •Draft Contract completed                   2 months
                                 •Contract Review done
                                 •Official Contract done
Purchase Ordered made            •Decision on quantity made                  1 month
                                 •Official purchase order sent
Products available on channels   •Product Imported                           3 months
                                 •Product stored at warehouse
                                 •Product on channels
Sales Report for each year       •Revenue and Profit Report                  1 week at the end of
finished                         •Forecast for the following year            each year.

                                                                                                    37
RISK.MANAGEMENT
Risk event             Likelihood   Mitigating                    Contingency Plans


Increase of            High         Signing Purchase Contract     N/A
wholesales price due                with wholesales price being
to the downtrend of                 kept unchanged in a
AUD                                 specific period of time

Invention of new       High         Reduce selling time of the    •Reduce selling price
products with                       product (maybe in 1 or 1.5    •Offer new payment method such as hire-
superior functions                  years)                        purchase method.



Wrong sales forecast   High         Carefully analyzed the        •If demand is under expectation, reduce selling
                                    market by studying market     price to minimum and find new channels to
                                    performance in the past 5     push the product out.
                                    years.
                                                                  •If demand is over expectation, make quick
                                                                  order with higher price to get the product in
                                                                  stock as soon as possible.

There’s other          Medium       Make a clear and strict       N/A
company selling the                 purchase contract at the
same product with                   beginning
lower price

                                                                                                                  38
CONCLUSIONS
Selling Malata product is profitable but not much (NPV $7,632) due to the following
reasons:

                                 Limited capital (about $300,000)

                                 Limited market share (nearly 1%)

                                 Wholesales price is too high ($400). That leads to high
                                 retailing price ($700) and low profit margin.

                                 Limited product competitive advantages. That causes a
                                 lot of expenses for promotion (free cases), advertising
                                 (online and review), channels (brick and mortar stores,
                                 online stores, universities and cafes) and customer
                                 services.

                                 Limitation in product functions lead to the narrowness
                                 in target customers (consumer market only).


                                                                                      39
REFERENCES
1.   Malata Unveils Windows 7 Slate A1001 And All-In-One PC On Computex, Gadget & Geek World, viewed 26 Sep
     2011, <http://www.gadgetsbing.com/2011/06/malata-unveils-windows-7-slate-a1001-and-all-in-one-pc-on-
     computex//>.

2.   Australian Media Tablet Market to Grow 85% in 2011, OSP Central, viewed 26 Sep 2011,
     <http://www.ospmag.com/osp-central/ospcentralinternationalupdate/australian-media-tablet-market-grow-
     85-2011>.

3.   Tablet    PC      Market    Overview,      Frost     &      Sullivan,  viewed    26     Sep     2011,
     <http://www.frost.com/prod/servlet/market-insight-top.pag?Src=RSS&docid=225907684>.

4.   Computer and Software Retailing in Australia, IBIS World, viewed 26 Sep 2011,
     <http://clients.ibisworld.com.au.ezproxy.lib.swin.edu.au/industryau/Majorcompanies.aspx?indid=1836>.

5.   Australian media tablet sales accelerate in first half 2011, Telsyte, viewed 26 Sep 2011,
     <http://www.telsyte.com.au/?p=1048>.

6.   Australian    Media      Tablet     Market,      Rust      Report,     viewed     26    Sep     2011,
     <http://www.rustreport.com.au/issues/australian-media-tablet-market/>.

7.   IDC: Australian Media Tablet Market to Grow 85% in 2011,                IDC,    viewed 26 Sep 2011,
     <http://www.idc.com/getdoc.jsp?containerId=prAU22758511>.



                                                                                                       40

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Sales management(2)

  • 1. TACTICAL SALES PLAN PC TABLET MALATA - A1001 Prepared by: QUYEN NGUYEN|7239084 Prepared for: CHI WING CHAN Date: 16 SEP 2011 1
  • 2. TABLE .OF.CONTENT Executive Summary 3 Part 3: Sales Strategy 22 Part 1: Background & Assumptions 4 Target customers 23 Product Description 5 Selling Methods 24 Product Features 6 Resources Requirements 30 Boundary Definition 7 Critical Success Factors 32 Assumptions & Market Limitations 8 Cost and Profit 33 Part 2: Market Assessment 9 Part 4: Sales Implementation Plan 37 Demand Forecast 10 Monitoring & Control 38 Competitor Analysis 12 Risk Management 39 Customer Analysis 15 Conclusions 40 Channel Analysis 17 References 41 2
  • 3. EXECUTIVE.SUMMARY This document is a Tactical Sales Plan for Malata PC-A1001, a Multi-Touch tablets from Malata, a high tech company from China (belongs to Wanlida Group Co., Ltd.). For selling Malata in Australia in the next 3 years, we considered the following factors: Background and Assumptions – We analysed product features and its geographic areas of sales in Australia (focusing on Sydney and Melbourne). We also made some assumptions that this sales plan based on. Market Assessment - In this part we focus on demand analysis for tablets in Australia market by the end of 2011. PC tablets marketing will continue growing by the end of 2011 with Apple and Android taking 95% of market share and others sharing 5% of the pie. Main competitors are Apple, Samsung, Motorola and Blackberry aiming to 3 main segments which are consumers, professionals and enterprises. Main distribution channels include mortar and brick stores, online stores, catalogue selling and TV Home shopping. Sales Strategy – We choose to sell this product using mortar and brick stores such as Dick Smith, Harvey Norman and JB Hi-Fi. Besides that, we build up a website for it and sell it online using eBay and Amazon. To better compete and approach target customers, we also sell the product in extra channels which are universities and coffee shops. After that, we have a general estimation and calculation of cost and profit of this project for 3 year period. Sales Implementation Plan – In this part, we set specific milestones and checkpoints to implement the project so that we can monitor and control it effectively. To be proactive to any likely risks, we have set contingency plans and the way to avoid the risks at the beginning. We believe that this Tactical Sales Plan is effective and achievable because it based on very careful consideration and research about the industry and the market. We believe it will bring profit and will be the good start for our business. 3
  • 4. PART 1 BACKGROUND & ASSUMPTIONS 4
  • 5. PRODUCT.DESCRIPTION  Malata PC-A1001 is a Multi-Touch Tablet running Windows 7 with an Intel Atom N540  It is a product of Malata Company (belongs to Wanlida Group Co., Ltd.), a high tech company, which is one of the top 100 electronic enterprises in China Malata A1001 is now designed in white and black colors. It is apparently the grand finale among all Malata’s offerings. The elegant white casing and familiar Windows UI make A1001 appear gorgeous and impressive (Gadgets & Geek World, 2011). 5
  • 6. PRODUCT.FEATURES Features Descriptions Features Descriptions 10”1024*600 Capacitive Multi-Touch LCD Screen Screen CPU Intel Pinetrail N450 Wholesales price: $400 Price Retail price: $695 10 inch 16:9 (1024x600) Multi-Touch Display Screen (Capacitive) •G-sensor, Touch Panel Others •Built in Microphone •1.3M Webcam OS Linux/Windows 7 Battery 3650mAh/7.4V Memory 1GB/2GB Optional Bluetooth Storage 2.5 inch SATA 160G/250G/320G Hard Drive Functions E-compass Camera Build-in 1.3M Pixel Camera Dimension 263 x 168 x 18.5mm for product •1 Mini VGA •2 USB •1 Headphone out •1 Microphone input Connectivity Weight 990g •1 LAN RJ45 •1 DC – IN 19V •1 Built in Rechargeable Battery •1 SD/MMC Card Reader
  • 7. BOUNDARY.DEFINITION  The product is distributed by Sunflowers Media, a Melbourne based company founded in August 2011.  Distribution scope: Australia wide focusing on Melbourne and Sydney.  Company’s capital: AUD $300,000  Key Human Resources: 1 General Director, 1 Chief Accountant, 1 Sales Administrator and 2 Sales executives  Company’s culture: straight talk, collaboration and customer oriented 7
  • 8. ASSUMPTIONS & MARKET LIMITATIONS Assumptions  There are no changes in Government Regulatory related to PC Tablet market.  Australian Economy remains stable in the next 3 years.  Sales Executives are qualified and well experienced in the industry and in Australian market.  All staff are well trained about the product. Market Limitations  The product is quite new in Australian market and not many people in Australia heard about the brand.  People have bad credibility for “Made in China” products.  Limitations in hardware for Windows 7 Tablet make it hard to use other applications completely, besides web applications.  The product is confronting a fierce competition with Apple iPad and other Android tablets which are more adaptable and responsive to new applications 8
  • 10. DEMAND.FORECAST Market size & Potential Australian research firm IDC (International Data Corporation) has predicted that following the release of iPad 2, a range of second generation tablets is expected to stimulate an 85% growth in the Australian tablet market (Rust Report 2011) According to Telsyte, media tablet sales in Australia would be almost 1.2 million units for calendar year 2011, driven by continued strong demand from consumers and business segments (Telsyte 2011) Although IDC research and the empirical evidence show that the majority of media tablets are currently embraced as complementary devices, they are eating into consumers’ share of wallet” (Rust Report 2011) IDC’s report titled “Media Tablet Special Report: Australia” also shows that whilst there is a strong intention to purchase a media tablet by the end of 2011 by Australian consumers to purchase media tablets in 2011, with 6 per cent, laptops/notebooks (34.8 per cent) and standard desktops (27.6 per cent) are still strongly favoured (IDC 2011) 10 In general, PC Tablet market in Australia is a potential and growing market
  • 11. DEMAND.FORECAST Market Share Australian Tablets Market share 5% By the end of 2011, the market leader in Australia is expected to remain Apple with 60% market share, down from over 90% in 2010. 35% iOS Android devices are expected to have 35% market 60% Android share in 2011 with Blackberry tablet OS and other platforms making up the rest of the market Blackberry and other (Telsyte 2011) platforms According to the above chart, we can see that tablets market in Australia has high level of concentration. The two biggest players (which are iOS and Android OS) take the major part of the pie. Blackberry and other platforms such as Windows and HP are just taking a very small part (5%) of the market. That will be a big challenge to sell Malata A1001 to Australia market, especially when Microsoft is about to introduce its new Windows 8 tablets to Australia in the next few months while Matala is just using Windows 7 11
  • 12. COMPETIROR.ANALYSIS There are many tablet brands in Australia market at the moment. However, there are just a few operating systems for all of them including (but not limited to): iOS, Android OS, Windows 7 Starter, Palm Web OS, and QNX (for the BlackBerry tablet). The following figure shows the advantages of each Operating System. Source: Frost and Sullivan, 2011 12
  • 13. COMPETIROR.ANALYSIS The followings are some major competitors in media tablets market in Australia Apple is the biggest competitors in the market. IDC expects Apple to maintain a 70-80% share of the worldwide market and continue to dominate the Australian market. Its competitive advantages are strong and unique Operating System iOS, good design and innovation. Samsung Galaxy is considered the strongest competitor of Apple in international and Australia market. Samsung is forecasted to take more than 30% market share in 2011 in Australia. Samsung is expected to follow with a 10.1 in. Galaxy Tab with Android 3.0 Honeycomb later this year with many outstanding functions. Motorola Xoom is also a worthy competitor in function, Like the Samsung Galaxy, the Motorola Xoom will also run on the Android 3.0 Honeycomb operating system. The Xoom comes with two video capable cameras and is another anticipated addition to the tablet market. It offers high processing power and improved gaming capability. BlackBerry is also carving a name in the tablet market with the release of the PlayBook in April this year. The PlayBook will support both Android and the Java based apps that currently run on BlackBerry phones, giving users access to an extensive range of applications. The PlayBook smaller and slimmer than the iPad 2 Other vendors and designs such as Smaller players such as Hewlett Packard, Asus, Toshiba, Microsoft and Dell are also on track to release their own tablet devices in the second half of 2011. Many of these products will be more competitive in function and price. One differentiation path that some vendors are likely to take is to focus on specific market segments, such as commercial. While benefitting from unique product positioning, they are likely to address a smaller overall market and will need to be competitive with devices from 13 Apple and others.
  • 14. COMPETIROR.ANALYSIS In general, besides Apple, the strongest competitors with significant competitive advantages and differences, other competitors in tablets market in Australia have an extremely fierce competition environment. They are all strong and experienced competitors that are quite similar in functions, designs and prices. On the other hand, Malata is running on Microsoft OS that is considers not as effective as others, therefore, it would be tough to sell Malata in Australia market, However, Apple are losing its market share to other competitors (from nearly 90% in 2010 to 75% in first half 2011), it means customers now pay more attention to other brands, not just Apple. They are also more price sensitive than before. That is a good sign for Malata to enter Australia market. 14
  • 15. CUSTOMER.ANALYSIS Main customers for PC tablets are described as follows: Source: Frost & Sullivan 2011 15
  • 16. CUSTOMER.ANALYSIS Consumer market: They are individual from all age. They may be students who need convenient and small devices to bring to everywhere. Or they may be housewives who want to do housework, take care of children and entertain themselves at the same time. For this customers, entertainment functions such as internet, music, movies and games are more important to them. This market has a lot of competitors but they seem to provide similar offerings. Professional: They are professionals from all area of life. They may be a real estate agents who need a light and small tablet which is strong enough to store all the necessary pictures and information about properties to show to clients. They may also be designers and architectures who have to travel interstates to meet up with clients. For this market, professional functions such as graphic, storage and memory are more important to them. Enterprises: Telsyte estimates that around 20,000 Australian businesses have purchased at least one media tablet for their organisation so far. This is a young and new market that is ignored by many big competitors. This market requires products with capable of video conferencing, viewing documents (reader functionality), and on-the-go computing. 16
  • 17. CHANNEL.ANALYSIS Electronic Stores Retailer market share 11.0% What are they? Harvey Normans, JB Hi-Fi, Woolworth (Dick Smith Electronics), Good Woolworths Limited Guys, Best Buy, etc. 15.0% JB Hi-Fi Limited Advantages. They are brick and mortal stores. 55.3% Harvey Norman They let customers feel real products. Holdings Ltd Salesperson can communicate directly with 18.7% Others customers. Customers will make purchase decision more easily. Sources: IBIS World 2011 Disadvantages. They are not exclusive and unique. Our new product will be directly compared to and compete with other products. This channel is also in fierce competition with online store. This traditional channel is still popular until now since people still want to have more real experience with the product before buying it. 17
  • 18. CHANNEL.ANALYSIS Brand Stores What are they? They are stores of specific tablet brands Advantages. They have all types of product models and series of one brand. Salespeople have better knowledge about the products. Disadvantages. This is a very costly channel that is only used for famous and luxury brands. This channel is only good for big and famous companies to build long-term brand images. For selling, this channel will cost a lot of money for rental, decorative and human resources. 18
  • 19. CHANNEL.ANALYSIS Online Store Main competitors. Woolworths, Catchoftheday.com.au, Dealsdirect, Dstore.com, wishlist.com.au, Oo.com.au, Graysonline.com,au, and eBay.com.au. Advantages. This channel is really cheap and easy to operate. It provides spaces to provide as much information about the product as you want. Disadvantages. Customers can not feel and experience the product before making purchase decision. This channel also requires shipping fees. This channel is good for new products in the market, especially for companies that have limited capital and resources. The problem is how to promote the websites effectively. 19
  • 20. CHANNEL.ANALYSIS Catalogues What are they? They are printed catalogues sent to each household with order forms. Advantages. Cheap and convenient. New products catalogues can reach a numerous of target customers. Disadvantages. It may cost a lot money for printing and delivery of the catalogues. This is good to reach a large number of target population and leverage the brand. But it may be costly and hard to control if the catalogues come to the right audiences. 20
  • 21. CHANNEL.ANALYSIS TV Home Shopping What are they? They are TV Program introducing a specific product in which customers can make orders by calling to a telephone number on the TV screen. Advantages. This channel can cause compulsive buying and highlight just the good points about the products. Disadvantages. It may cost a lot money for buying broadcasting time. 21
  • 23. TARGET.CUSTOMERS In case of Malata A1001, we should focus on Consumers market as the products do not have required functions for Professional and Enterprise market Target customers should be as follows: Young Adults: Aged from 25 to 35. They need a tablets for their convenient life: when waiting or being on buses and trains, at lunch time or when waiting for friends at cafes... Housewives with children: With PC tablets, they can go online when cooking, shopping and cleaning. That helps housework less boring. Besides, they can use the tablet to teach their children about the world and play game with their children at anywhere and anytime they want . Students: PC tablets will make their studying much more easy. They can store their lectures in the tablets and read it everywhere at any time they want. They can also get connected with their friends and their lecturers when needed. With tablet PC, long distance studying will be much more easy. Those customers are all quite price sensitive. Therefore, low price may be a competitive advantage of Malata as its functions is quite similar to other PC tablets 23
  • 24. SELLING.METHODS Expert Reviews Before making the product available in the market through selected distribution channel, there should be some marketing activities. One of them is sending the product to experts to review. CNET is a common way to get the product reviewed. CNET editors will give their comments about pros and cons of the product. This will help it similar to customers. Blogs is another way to get the products reviewed. We will need to send our product to the owners of the blogs, who are high tech experts, for getting their comments about the products. Customers always refer those blogs before they make their own decisions. Having an article in “Digital Life” columns of newspapers such as The Age or smh.com.au is also a good way to promote the products. 24
  • 25. SELLING.METHODS Electronic Stores This traditional channel is to make the products available to all kinds of customers including compulsory ones who do not intend to buy the product at the beginning. It is the most popular and easy-to-find channel for the product. For this channel, we focus on big and famous stores in Australia due to limited capital and quantity of products. Chosen store should be Harvey Normans, Dick Smiths, Good Guys, JB Hi Fi and Best Buy. The stores are famous and many of target customers may come there to look for their ideal tablets. Sample products will be placed in those store at eye-catching places for demo using. Each product will be sold with a free case. Retail price at electronic stores would be $700. The stores will get 5% of selling price for each product sold. Free tablet cases will be provided by our company. 25
  • 26. SELLING.METHODS Product website Building a website for the product is what we will do. This website will be called www.malata- australia.com.au and customers can make their order and payment directly from the websites This website will include all information about product functions and manual. There will also be comments and judgments of customers and experts about the product as well as a forum so that potential customers can get their questions about the product answered by our experts. Selling price in the website would be lower than in electronic store as it would be cost less than electronic store. It would be $680 for a tablet. Free cases are also provided and we offer free delivery for customers who are living within 10 kms from Melbourne and Sydney. To promote our website, we use Google Search Engine and Google Ads for key words “tablets”, “PC tablets” and “Matala”. We also let the URL appear on other tablet forums by participate on them. Other review websites we use such as CNET will also help to spread our websites URL to our potential customers 26
  • 27. SELLING.METHODS Online Stores Besides our own websites, we will also use other commercial websites such as eBay and Amazon. This channel will help bring the product to much more customers who enjoy shopping online With those websites, we do not need to do any marketing activities as they are well known enough. Selling price for this channel may be $670 and the website will get $15 for each product sold. With eBay which applies auction method, starting price will be $670, we will get $670 of the final price and they will take the rest. 27
  • 28. SELLING.METHODS University Channel In the next 5 years, textbooks will replace traditional print versions in the next five years. This trend bodes well for Pearson - an international producer of educational materials, started to produce e- textbooks and online course supplements. Students will need to have PC tablets to store their studying materials as well as other educational apps. We will need to promote our Malata A1001 in university websites so that every students can see it. We will corporate with student Union to sell our product in university. We will put out product samples in university library and some main classroom, so that students can have chance to test the products. We also offer special price for university students who are very price sensitive. Selling price for this channel may be $670 and we will send the universities free products to equip their classrooms . 28
  • 29. SELLING.METHODS Cafes Besides students, young adults are also our target customers. Their most popular places are coffee shops. Coffee shops are where they spend their time after work for dating, meeting friends and relaxing. We will corporate with popular coffee franchises in Melbourne to sell our product (Starbucks, Gloria Jeans, etc…). We will put out product samples in those cafes so that customers can have chance to test the products. We will put our brochure their so that customers can make order directly with us or they can make order from the coffee shops. Selling price for this channel may be $695 and we will send the universities free products to equip their classrooms . 29
  • 30. RESOURCES.REQUIREMENTS Financial Resources Financial resources will be needed for the followings: Import Malata tablets from China Warehouse Labor cost Operating cost Channel cost Brochure and Product manual in English Needed marketing activities (product review and websites) 30
  • 31. RESOURCES.REQUIREMENTS Human Resources Job Titles Description and Requirement Sales Director General management. Strategy and Planning Preparation. Problem Solving. Have experience and knowledge about tablet market in Australia. Well presented and have good relationship with distribution channels Account Managers (2 persons) in charge of: Direct contact points between channels and the company. Have experience •Person 1: Mortal and brick and knowledge about the market and the channel they are in charge of. Have channels (Stores, Universities and good relationship with the channels and good negotiation skills. Have good Café shops) knowledge about the product. •Person 2: E-commerce. Sales Administration (1 persons) In charge of paperwork and sales contract. Assist Account Managers in daily administration tasks. Good eyes for details, excellent in verbal and writing communication. Good at computer. Chief Accountant (1 person, part Manage capital, revenue, and cash flow of the company. Prepare tax report time) and return. Trustworthy and honest. Good eyes for details 31
  • 32. CRITICAL.SUCCESS.FACTORS Product Differentiation Good relationship with channels As the product’s functions are similar to other Distribution Channels play an important roles to the tablets in the market. The only way we can do to success of the product. Distribution channels are faces differentiate the product is make its price the of our countries. Having good relationship with lowest aiming to price sensitive customers such as channels, we could have many advantages in displaying housewives, students and young adults who do and selling our products. We also can get valuable not have much money for such a product. information about customers from the channels. Special channel like universities require special relationship We also should find exclusive and unique between the Account Manager and universities’ distribution channels such as universities and Managers. cafes where our target customers often visit to better compete with other products. Superior after-sales services This is another way to differentiate our product Good Sales Forecast with others. Superior after-sales services can be provided by paying more attention to customers’ question and complaints. Through our forum on Having good sales forecast will help us to control our website, we will answer all the questions our stocks in warehouse and for distribution customers may have and resolve all issues related channels. If we import too many products, we will to our product. have to pay a lot for storage, but if we import too little, we will lose our chance to sell our products for channels. 32
  • 33. COST&PROFIT Sales Estimation & Explanation •As mentioned above, about 1.2 million units of tablets would be sold in Australia by the end of 2011. In which, Apple and Android will take about 80% of market share. Blackberry and others only get 5% of market share (about 60,000 units). In our estimation, the maximum units of Malata tablet that could be sold in year 1 will be about 1000 units. Due to limitation of capital, we decide to import 700 units for the first year. •In Year 0, we have $300,000 of capital, we do not need to pay any labour and operating expenses except for Marketing. We will spend $280,000 dollars to buy stocks from China, $3,500 tablet cases for promotion and about $16,500 for marketing activities such as product reviews, creating and running product websites, preparing the product manual in English, and promoting our website on other well known websites in Australia. •In the end of Year 1, we have to pay employee salary, commissions, channel cost and buy stocks for year 2. Marketing expenses will be decreased as customers are familiar with the products. The number of products needed for year 2 is increased in comparison with Year 1. •In the end of Year 2, we have the same expenses as year 1, marketing expenses keeps going down. The number of products needed for year 3 is increased in comparison with Year 2. •Sales of the products should be ended in the end of year 3 as there would be new products that have superior functions. In Year 3, we do not need to buy anymore products. And the whole amount of Sales in year 3 is compensation for loss in year 1 and year 2. 33
  • 34. COST&PROFIT Total Cost Total Cost Item Year 0 Year 1 Year 2 Year 3 Salaries & wages 0 $125,000 $125,000 $125,000 Product Cost $280,000 $320,000 $400,000 0 Marketing Expenses $16,500 $10,000 $5,000 $5,000 Free tablet cases $3,500 $4,000 $4,500 0 Channel Cost (5% of gross sales) $0 $24,325 $27,800 $34,750 Sales commission (3% of gross sales) $0 $14,595 $16,680 $20,850 Total expenses $300,000 $497,920 $578,980 $185,600 Labour costs Product Cost Staff Year 1 Year 2 Year 3 Sales Director $50,000 $50,000 $50,000 Wholesales Year 0 Year 1 Sales Administration $25,000 $25,000 $25,000 price: $400 Year 2 Chief Accountant (part- Quantity time) $15,000 $15,000 $15,000 700 800 1,000 Imported (unit) Account Manager (Electronic Stores and Total Cost ($) $280,000 $320,000 $400,000 University) $20,000 $20,000 $20,000 Account Manager (E- commerce and cafe) $15,000 $15,000 $15,000 Total ($) $125,000 $125,000 $125,000 34
  • 35. COST&PROFIT Gross Profit Before Tax Gross Profit Before Tax Year 0 Year 1 Year 2 Year 3 Total Expenses ($) 300,000 $497,920 $578,980 $185,600 Gross Sales ($) 0 $486,500 $556,000 $695,000 Gross Profit before tax -300,000 -$11,420 -$22,980 $509,400 Selling price: $695 Year 1 Year 2 Year 3 Unit sold (unit) 700 800 1,000 Gross Sales ($) $486,500 $556,000 $695,000 Discount rate 15% IRR 0.16 NPV $7,632 Payback period 3 year 35
  • 37. MONITORING&CONTROL Milestones Checkpoints Duration Industry and Market Analysis •Industry Overview 1 month completed •Industry Performance in the past 5 years •Competitor Analysis •Target customer Analysis •Critical Success Factors Business Plan finished •Feasibility Study 1 month •Sales Strategy in 3 years •Cost and Budget estimation •Profit estimation •Contingency Plan Purchase contract done •Draft Contract completed 2 months •Contract Review done •Official Contract done Purchase Ordered made •Decision on quantity made 1 month •Official purchase order sent Products available on channels •Product Imported 3 months •Product stored at warehouse •Product on channels Sales Report for each year •Revenue and Profit Report 1 week at the end of finished •Forecast for the following year each year. 37
  • 38. RISK.MANAGEMENT Risk event Likelihood Mitigating Contingency Plans Increase of High Signing Purchase Contract N/A wholesales price due with wholesales price being to the downtrend of kept unchanged in a AUD specific period of time Invention of new High Reduce selling time of the •Reduce selling price products with product (maybe in 1 or 1.5 •Offer new payment method such as hire- superior functions years) purchase method. Wrong sales forecast High Carefully analyzed the •If demand is under expectation, reduce selling market by studying market price to minimum and find new channels to performance in the past 5 push the product out. years. •If demand is over expectation, make quick order with higher price to get the product in stock as soon as possible. There’s other Medium Make a clear and strict N/A company selling the purchase contract at the same product with beginning lower price 38
  • 39. CONCLUSIONS Selling Malata product is profitable but not much (NPV $7,632) due to the following reasons: Limited capital (about $300,000) Limited market share (nearly 1%) Wholesales price is too high ($400). That leads to high retailing price ($700) and low profit margin. Limited product competitive advantages. That causes a lot of expenses for promotion (free cases), advertising (online and review), channels (brick and mortar stores, online stores, universities and cafes) and customer services. Limitation in product functions lead to the narrowness in target customers (consumer market only). 39
  • 40. REFERENCES 1. Malata Unveils Windows 7 Slate A1001 And All-In-One PC On Computex, Gadget & Geek World, viewed 26 Sep 2011, <http://www.gadgetsbing.com/2011/06/malata-unveils-windows-7-slate-a1001-and-all-in-one-pc-on- computex//>. 2. Australian Media Tablet Market to Grow 85% in 2011, OSP Central, viewed 26 Sep 2011, <http://www.ospmag.com/osp-central/ospcentralinternationalupdate/australian-media-tablet-market-grow- 85-2011>. 3. Tablet PC Market Overview, Frost & Sullivan, viewed 26 Sep 2011, <http://www.frost.com/prod/servlet/market-insight-top.pag?Src=RSS&docid=225907684>. 4. Computer and Software Retailing in Australia, IBIS World, viewed 26 Sep 2011, <http://clients.ibisworld.com.au.ezproxy.lib.swin.edu.au/industryau/Majorcompanies.aspx?indid=1836>. 5. Australian media tablet sales accelerate in first half 2011, Telsyte, viewed 26 Sep 2011, <http://www.telsyte.com.au/?p=1048>. 6. Australian Media Tablet Market, Rust Report, viewed 26 Sep 2011, <http://www.rustreport.com.au/issues/australian-media-tablet-market/>. 7. IDC: Australian Media Tablet Market to Grow 85% in 2011, IDC, viewed 26 Sep 2011, <http://www.idc.com/getdoc.jsp?containerId=prAU22758511>. 40