Chapter 8: Using Telephone Surveys in Completing Market Reviews | Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns

Overview

It is not unusual to find that there is not enough information on your market available just from secondary sources. Normally these directories, magazines, trade publications , government reports , and other such sources provide a good starting point. Sometimes, however, they are just not enough. You wind up with a ton of information, but there is still a huge hole in the information. This is the time for primary research.

One good way to develop new information on a market is through a telephone survey. By contacting a few hundred people over the telephone, you can often get a pretty good idea of the missing part of the puzzle.

Typically this is done by contracting with a market research organization that is capable of developing and implementing a custom survey. Such an organization will generally be able to work with you to prepare a questionnaire, identify the proper sample of respondents, administer the survey, and then tabulate the results. Many times it can also help you analyze the results.

The following marketing plan for the Executive Conference Phone is a good example of a market review that was done by combining data from secondary sources with a telephone survey. Although the specific information in this marketing plan has been altered because of its confidential nature, the plan will show you how a market review based on primary and secondary research can be structured. Although this plan is hypothetical, it is based on an actual marketing plan that was prepared by an actual company in a related business.

The Executive Conference Phone market review began with information from trade directories and Census data on population and business. It then included information from a telephone survey that was conducted with business equipment dealers in seventeen cities around the United States. Estimates were then compiled based on a combination of secondary data and the results of the survey. These projections, along with information from the consumer and trade interviews, enabled the company to prepare the planning assumptions and marketing objectives on which this marketing plan is based.

The Executive Conference Phone marketing plan is for telephone conferencing devices to be sold in a variety of different retail stores that carry telephone equipment. The consumers of this equipment include businesses and individuals who operate businesses out of their homes . This comprehensive plan includes a market review on the telephone conferencing device market, a review of consumer usage and attitudes, a review of trade practices and attitudes in appropriate channels of distribution, planning assumptions, marketing objectives, and each of the key marketing plan elements. It also includes detailed financial projections and a detailed set of contingency plans.

Marketing Plan for: The Executive Conference Phone Quinn Technologies Corporation ^[1] October 1, 1999

INTRODUCTION

The purpose of this document is to develop a comprehensive marketing plan for a new conference phone system. This report is divided into the following sections:

BACKGROUND. This section reviews the background of this project and outlines the research efforts that led to the development of this marketing plan.
MARKET REVIEW. This section reviews the growth and nature of the market for conference phone devices. A detailed profile is provided on a national, regional (New York, New Jersey, Connecticut, Delaware, and Pennsylvania), and New Jersey only basis.
CONSUMER USAGE AND ATTITUDES. This section outlines present consumer practices, desires, and expectations regarding telephone conferencing devices.
TRADE PRACTICES AND ATTITUDES. This section reviews the retail trade s current involvement with telephone conferencing devices and its attitudes toward the product category.
PLANNING ASSUMPTIONS. This section presents the key conclusions based upon the facts presented in the previous sections, and the assumptions used in the development of specific plans and strategies.
KEY STRATEGIC MARKETING OBJECTIVES. This section provides the specific objectives for this venture over the next five years .
MARKETING PLAN ELEMENTS. This section presents the specifics of the various plans developed to achieve the key strategic marketing objectives of this venture.
FINANCIAL PROJECTIONS. This section provides detailed calculations of the costs, volume, and payout of the venture from test market to national expansion. Pro forma profit-andloss statements are provided on a national, regional, and New Jersey basis.
CONTINGENCIES. This section presents plans for retaliation against competitive actions affecting this venture.

The scope of this report is directed primarily at developing plans to launch a totally incremental venture on telephone conferencing devices. The information required to develop this marketing plan was gathered in eight stages. Each stage was designed to provide a systematic understanding of the current activities in the market for telephone conferencing devices, and to show how a new venture might fit within the framework of that market. The following specific steps were taken:

INFORMATION GATHERING. A careful review of technical material and previously available consumer research reports was conducted. A clipping service was retained to obtain copies of advertisements placed by manufacturers and retailers in selected key cities within the five-state eastern region.
FIELD TRIPS. Store checks and in-store interviews were conducted. A total of 101 stores in Connecticut, New York, and New Jersey within various trade classes were visited. In order to gain geographical perspective, an additional thirty stores in Los Angeles and elsewhere in California were personally visited.
TELEPHONE SURVEYS. In order to broaden the base of the store checks conducted during this study, additional surveys were conducted. Telephone interviews were conducted with a total of 130 retail outlets within the five-state region.
MARKET PROFILE. Based upon an analysis of the information gathered from the 261 stores surveyed and the secondary source data, a statistical profile of the U.S. market for telephone conferencing devices was developed. This model was designed to provide a complete picture of the total market as well as of all the logical segmentations. This information is provided in the Market Review section of this report.
CONSUMER RESEARCH. Eight focus group sessions with eight to ten participants each were conducted by an independent moderator. The purpose of this research was to develop an understanding of consumers present practices and attitudes as well as their reactions to concepts developed for various product offerings.

To broaden the base of these focus groups, telephone surveys were conducted with 125 consumers in order to obtain specific data regarding attitudes and buying habits. The findings of both the focus group research and the consumer surveys are provided in the Consumer Usage and Attitudes section of this report.
INDUSTRY/TRADE CONTACTS. Interviews were conducted with manufacturers and distributors of telephone conferencing devices. From these sources, information on manufacturers attitudes, trade margins, and pricing practices was developed on an industrywide basis.
PLANNING ASSUMPTIONS. Based on an analysis of the market profile, consumer research, manufacturer and trade practices, and trends in the industry, specific assumptions were made concerning whether the company should enter the telephone conferencing device market and what it would have to do to capitalize on any opportunities present in that market.
MARKETING PLAN DEVELOPMENT. Upon completion of the previous steps, a complete national and regional marketing plan was developed for the venture. This plan includes all the objectives, marketing elements, tactical plans, and financial projections needed for a consumer-oriented marketing venture.

BACKGROUND

In August 1999, a research study was completed that examined alternatives for providing improved customer satisfaction with telephone conferencing/speakerphone devices. The study examined ways to enlarge the appeal of these devices to small businesses and residential consumers. One of the main conclusions reached in this study was that the market potential for sophisticated devices was quite promising .

In this study, the concept for a new product (to be called the Executive Conference Phone) achieved a clear preference over products currently on the market among both business and residence customers. The primary reason for this preference, according to the study, was very high voice quality.

In September 1999, Quinn Technologies Corporation decided to investigate the feasibility of launching a major telephone conferencing device program. The Executive Conference Phone was selected as the initial product to be used in this program. Preliminary plans called for a significant level of advertising expenditures. Since these expenditures would be made in a product category in which the company would face established competition, it was decided that it would be prudent for the company to thoroughly research the opportunity and to create a formal marketing plan for the venture. The balance of this document deals with the specifics of the research findings and the overall marketing plan.

MARKET REVIEW

The primary retail channels of distribution for telephone conferencing devices are discount stores, department stores, electronic supply dealers, business equipment outlets, and record shops . Among these five retail trade classes, there are 28,164 potential outlets available to sell telephone conferencing devices. Table 8-1 provides a breakdown of the number of retail outlets in each of these five retail trade classes by geographic region in the United States.

Table 8-1. Number of Selected Retail Outlets in 1999 by Type and Geographic Region
Region	Discount Stores	Dept. Stores	Electronic Supply Dealers (Retail)	Record Shops	Business Equipment Outlets	Total Outlets
Northeast	1,486	1,536	1,285	1,005	2,179	7,491
North Central	1,845	2,113	1,517	945	983	7,403
South	2,047	2,073	2,083	1,191	959	8,353
West	999	1,040	1,222	693	964	4,918
Total U.S.	6,377	6,762	6,107	3,834	5,085	28,165
Source: Estimates based on data from 1999 directories, Census data on population and business, and a sampling of business equipment dealers in seventeen cities.

In the five-state marketing region of New Jersey, New York, Pennsylvania, Connecticut, and Delaware, there are 6,075 potential outlets for selling telephone conferencing devices in the five retail trade classes, with 1,086 of these potential outlets being located in New Jersey. Table 8-2 provides a breakdown by retail trade class of the number of outlets in both the five-state region and New Jersey.

Table 8-2. Number of Retail Outlets by Trade Class (1999) New Jersey and Five-State Region
	Total Number of Stores
	N.J.	Five-State
Discount	191	1,089
Department	224	1,249
Electronic supply	177	1,010
Record shops	360	1,871
Business equipment	134	856
Total	1,086	6,075
Note: Five-state region includes New Jersey, New York, Connecticut, Delaware, and Pennsylvania Source: Estimates based on data from 1999 directories, Census data on population and business, and a sampling of business equipment dealers in seventeen cities.

Electronic supply dealers tend to stock telephone conferencing devices to a significantly greater degree than do the other retail trade classes. Approximately 83 percent of electronic supply dealers, 42 percent of record shops, and 30 percent of department stores stock telephone conferencing devices. Only 15 percent of business equipment outlets and 14 percent of discount stores stock this product category.

There is a wide variation among the retail trade classes in terms of their annual average movement per store stocking and their average retail price per unit. As shown in Table 8-3, average annual movement per store stocking ranges from a high of 40 units in department stores down to a low of 7 units in business equipment stores. Similarly, the average retail price ranges from $62 per unit in discount stores up to $196 in business equipment stores.

Table 8-3. Average Unit Movement and Price for Each Retail Outlet Stocking Telephone Conferencing Devices (1999)
Retail Trade Class	Average Annual Unit Movement per Store Stocking	Average Retail Price
Discount stores	36	$ 62
Department stores	40	195
Electronic supply dealers	31	105
Record stores	24	164
Business equipment stores	7	196
Source: Estimates based upon store checks and telephone surveys within the five-state region.

The retail trade sells a total of 299,000 telephone conferencing devices on a national basis. The majority of the unit movement, 52 percent, is accounted for by electronic supply stores, with an additional 27 percent coming from department stores. Thus, these two retail trade classes account for 79 percent of the total national unit volume of telephone conferencing devices.

Retail channels of distribution generate $39.5 million in retail dollar sales from the sale of telephone conferencing devices. At an average 39 percent trade margin, this represents $23.9 million in factory dollar sales. On a New Jersey and five-state basis, respectively, retail dollar sales are $1.36 million and $7.6 million. Table 8-4 provides a breakdown of retail dollar sales by retail trade class for New Jersey, the five-state region, and the total United States.

Table 8-4. 1999 Dollar Sales Through Retail Channels of Distribution, Telephone Conferencing Devices (In Thousands)
Retail Dollar Sales Retail Trade Five-State
Outlet Category	N.J.	Region	U.S.
Discount	$ 62	$ 341	$ 1,984
Department	527	2,925	15,795
Electronic supply	473	2,730	16,485
Record shops	82	500	2,296
Business equipment	216	1,068	2,940
Total retail trade outlets	$1,360	$7,564	$39,500
Source: Estimates based upon store checks, telephone surveys, and traditional retail practices in different channels of distribution.

Significant unit and dollar volumes are generated through channels of distribution other than retail outlets. These channels include mail order, catalog sales, factory direct sales, and other telephone companies. In total, these other channels account for an additional 23,600 units, $9.5 million in retail sales, and $8.3 million in factory sales. Table 8-5 provides a breakdown of unit sales, retail sales, and factory sales by each of these other distribution channels.

Table 8-5. 1999 Unit and Dollar Sales Through Distribution Channels Other Than Retail Trade Outlets Total United States (In Thousands)
Distribution Channel	UnitMovement	$ Sales Retail	Margin %	$ Sales Factory
Mail order	2.4	$ 400	40%	$ 240
Catalog sales (department, electronic supply)	7.0	975	40%	585
Factory direct	4.0	2,000	0%	2,000
Other phone companies	10.2	6,170	13%	5,368
Total	23.6	$9,545		$8,193
Source: Estimates based upon normal industry relationships between distribution channels and discussions with industry research personnel.

Through all channels of distribution, the total 1999 market for telephone conferencing devices amounted to 322,600 units and $49.0 million in retail sales. As summarized in Table 8-6, retail distribution channels accounted for an estimated 93 percent of units and 81 percent of retail dollars. The difference between the retail levels of dominance for units and dollars results from the fact that higher-priced and more sophisticated units travel through the nonretail distribution channel, while virtually all of the low-priced equipment in the market is sold through traditional retail outlets.

Table 8-6. 1999 Summary of Total Industry in Units and Dollar Sales
	Unit Sales
	Units (000)	% of Units (000)	Retail $
Retail outlet distribution channels	300.0	93%	$39,500
Other distribution channels	22.6	7%	9,545
Total	322.6	100%	$49,045
Source: Estimates based on data from directories, Census data on population and business, and a sampling of equipment dealers in seventeen cities.

The total market for telephone conferencing devices is projected to grow to 429,400 units and $68.9 million in retail dollar sales by 2002. The projections for 2000 through 2002 represent a relatively conservative growth rate of 12 percent per year in dollar volume and 10 percent per year in unit volume. Table 8-7 outlines the history and forecasted growth of the telephone conferencing market by each of the three geographic breakdowns from 1997 to 2002.

Table 8-7. Telephone Conferencing Devices Total United States Market History and Forecast (1997 “2002) (Thousands of Dollars and Units)
	1997	1998	1999	2000	2001	2002
Retail $ Sales
New Jersey	1,313	1,464	1,687	1,889	2,116	2,370
Five-state region	7,313	8,154	9,393	10,520	11,782	13,196
United States	38,183	42,574	49,045	54,930	61,522	68,905
U.S. growth/year	11.5%	15.2%	12%	12%	12%	”
Unit Sales
New Jersey	8.2	9.1	10.5	11.6	12.8	14.1
Five-state region	46.3	51.6	59.3	65.2	71.7	78.9
United States	251.6	280.5	322.6	354.9	390.4	429.4
U.S. growth/year	11.5%	15.0	10.0	10.0	10.0	”
Source: For the years 1997 “1999, estimates are based upon store checks, telephone surveys, and trade interviews. For the years 2000 “2002, a conservative growth rate of 12 percent per year in dollar volume and 10 percent per year in unit volume is estimated, reflecting a trend toward more sophisticated units for home use.

In 1999 the telephone conferencing device market was relatively concentrated, with Acme, Phone Shack, and Able Industries accounting for 76 percent of unit sales and 71 percent of factory dollar sales. Phone Shack was estimated to have the highest unit share, with 35 percent; however, its share of factory dollars was estimated to be only 17 percent as a result of the low-priced nature of the Phone Shack product. Table 8-8 provides a breakdown of market shares in units and dollars for the major manufacturers of telephone conferencing devices.

Table 8-8. Market Share by Manufacturer (1999) Total United States
Manufacturer	Unit Sales (000)	%	Dollar Sales
			Retail		Factory
			$MM	%	$MM	%
Phone Shack	113	35%	$ 9.0	18%	$ 5.4	17%
Acme	108	33	17.5	36	10.5	33
Able Industries	25	8	8.9	18	6.9	21
Centrex	25	8	5.0	10	3.0	9
Hatachi	15	5	2.5	5	1.5	5
Griffin	10	3	1.7	4	1.0	3
Moble	23	1	2.0	4	2.0	6
All Others	323	7	2.4	5	1.9	6
Total	4	100%	$49.0	100%	$32.2	100%
Source: Estimates based upon store checks, telephone surveys, trade publications, and the use of Dun & Bradstreet reports.

On a price point basis, units selling for $200 and under accounted for 90 percent of total unit sales and 78 percent of retail dollar sales in 1999. Units priced at $100 or under accounted for an estimated 46 percent of unit sales and 26 percent of retail dollar sales. Units falling into the price range of $101 to $200 accounted for 44 percent of unit sales and 52 percent of total retail dollar sales. Table 8-9 provides a breakdown of unit and dollar sales by major breaks in price points.

Table 8-9. 1999 Summary of Unit and Retail Dollar Sales Through Retail Channels of Distribution by Price Point
	Unit Sales		Total Retail Trade Retail Dollar Sales
Unit Sales	# (000)	% (000)	$	%
$0 “$100	137.8	46%	10,124	26%
$101 “$200	130.3	44	20,693	52
$201 “$300	29.7	10	8,215	21
$301 and up	1.2		468	1
Total	299.0	100%	39,500	100%
Source: Estimates based on store checks and a telephone survey with retailers.

The pure business segment accounted for 52 percent of 1999 unit volume and, more importantly, 67 percent of the industry s total factory dollar sales. The residence business category (business in the home) accounted for 43 percent of unit volume and 29 percent of factory dollar sales. Pure residential purchase, for personal use only, accounted for 5 percent of unit volume and 4 percent of factory dollar sales. Table 8-10 provides a purchase summary by market segment.

Table 8-10. Breakdown of 1999 Business and Residence Purchases in Units and Factory Dollars (In Thousands)
Market Segment
	Unit Sales		Factory $ Sales
	#	%	#	%
Business	166.6	52%	$21,675	67%
Residence business	137.6	43	9,294	29
Residence personal	18.8	5	1,267	4
Total	323.0	100%	$32,236	100%
Source: Estimates based upon store checks, telephone surveys, and industry interviews.

Total manufacturer advertising for telephone conferencing devices has ranged from a low of $158,000 in 1998 to a high of $1.1 million in 1996, with little consistency in expenditure level by manufacturer. The highest year for both Acme and the industry was 1996, in which Acme spent 75 percent of total advertising dollars. The lowest year was 1998, in which advertising amounted to only $158,000, with Acme spending only $37,000, or 23 percent of the total. Table 8-11 provides a breakdown of advertising expenditures by manufacturer.

Table 8-11. Industry Advertising by Manufacturer (1996 “1999) (In Thousands)
	1996		1997		1998		1999		Total 1996-1999
	$	%	$	%	$	%	$	%	$	%
Acme	$804	75%	$681	73%	$37	23%	$285	49%	$1,807	66%
Phone Shack	69	6	34	4	94	60	107	18	304	11
Able Industries	24	2	14	1	26	16	118	20	182	7
Centrex	92	9	77	8	”	”	79	13	248	9
Hatachi	29	3	7	1	1	1	”	”	37	1
Griffin	53	5	122	13	”	”	”	”	175	6
Total	$1,071	100%	$935	100%	$158	100%	$589	100%	$2,753	100%
Source: Radio expenditure reports, media records, newspapers, business publications, magazine services. Note: Does not include retailer cooperative advertising or catalog space and charges.

Though media usage varied significantly from year to year, total TV expenditures for 1996 through 1999 amounted to $1.1 million and represented the largest single media segment, with 39 percent of total industry spending. The second largest category was consumer magazines, with total 1996 to 1999 expenditures of $782,000, or 28 percent of total industry spending. Radio was the only other significant medium, with $634,000 in total spending from 1996 to 1999, representing 23 percent of total manufacturer media outlays. Table 8-12 provides a breakdown of advertising expenditures by medium.

Table 8-12. Industry Advertising by Medium, 1996 “1999 (In Thousands)
	1996		1997		1998		1999		Total 1996 “1999
	$	%	$	%	$	%	$	%	$	%
Consumer magazines	295.6	28	219.7	23	22.9	15	$243.5	41	$781.7	28
Business publications	65.3	6	25.4	3	12.6	8	21.5	4	124.8	5
Newspapers	52.9	5	3.8	”	28.8	18	37.1	6	122.6	5
Radio	296.6	28	137.9	15	90.4	57	111.5	19	636.4	23
TV	360.3	33	547.4	59	3.0	2	176.4	30	1,087.1	39
Total	$1,070.7	100%	$934.2	100%	$157.7	100%	$590.0	100%	$2,752.6	100%
Source: Radio expenditure reports, media records, newspapers, business publications, magazine services.

CONSUMER USAGE AND ATTITUDES

The current and potential users of telephone conferencing devices can be divided into three categories. Based upon place and nature of use, these categories break down as follows :
1. Businesses that operate out of nonresidence locations. This usage is primarily during business hours.
2. Residence usage for business-related purposes. This type of usage is typically for a sales or management type of occupation . Although the majority of use in this segment is business, some personal usage does occur.
3. Residence use for solely personal reasons. The motivations here normally center on the need to communicate with social contacts.
Current owners of high-quality telephone speakerphone systems consider these systems to be superior to the alternative of simply using the speakerphone on their business telephone. High-quality telephone speakerphone systems are considered to be expensive, but far superior to the normal speakerphone on a telephone.
Almost 90 percent of all owners use their devices daily. They tend to use the devices between 7:00 A.M. and 7:00 P.M.
The fundamental justification for buying and using an expensive telephone conferencing device is that it will pay for itself within a short period of time by allowing high-quality meetings without travel. Another advantage is eliminating the possibility of irritating existing customers and causing potential customers to go elsewhere because of poor-quality teleconferencing.
The average period to make a decision to purchase a telephone conferencing device is two months. These devices are rarely purchased on impulse. The time frame of consideration was only a matter of days in some cases, but the decision frequently took as long as a year.
The actual decision to buy takes place when the need to have quality teleconferencing meetings becomes of paramount importance. Poor-quality calls may have resulted in either lost business or irritated customers and friends . This problem then motivates potential buyers to overcome their guilt feelings over the high cost of the machine.
Once the decision to buy is made, only a minimal amount of comparison shopping is done. Generally the features desired are fairly well defined in the potential buyer s mind. The actual selection may be reduced to one or two manufacturers and two or fewer models. In addition, most people who are potential buyers of telephone conferencing devices have a general awareness of how much such a device should cost. In general, it is felt that low-quality units are available for under $100, with ˜ ˜decent units costing from $150 to $200.
Males make the majority of purchases, and they do so in retail stores at which they currently shop. Regardless of who uses the device, the actual purchase is usually made by the man. Since the purchase usually involves a significant amount of money, familiar stores are used. In the event that a problem occurs and a return or exchange is necessary, the consumer feels that it will be easier to have things settled to his satisfaction at a store where he normally shops.
Purchase is the predominant form of acquisition. It is generally considered much more economical to buy than to rent or lease. Consumers feel that the only time that rental or leasing is appropriate is for the higher-priced units (those costing about $1,500).
Consumers are unable to identify a dominant brand of telephone conferencing devices. When asked, consumers mentioned the names of several manufacturers, some of which don t even make telephone conferencing devices.
Consumers feel that the minimum warranty period on a telephone conferencing device should be six months. Manufacturers warranties vary considerably in length of coverage.

Consumers believe that ninety days or less is too short, six months should be the minimum, and a year is the maximum expected.
Generally, current owners and potential buyers had very definite ideas about what features they desire in a telephone conferencing device. Consumer desires can be broken down into two areas: ˜ ˜major features that influence the purchase decision, and ˜ ˜minor features that are not critical but are nice to have as long as the price is not increased. Major features include an A/C plug and good voice quality. Minor features include adjustable volume settings and a choice of colors.
Consumers have definite opinions on what features they don t like in a telephone conferencing device. Battery operation and poor voice quality are seen as negatives . In many cases, it is current owners who are particularly vocal about the negative features and their dissatisfaction with their own devices.
The Executive Conference Phone concept was generally well liked by consumers. The consumers interviewed gave the unit high marks on appearance, voice quality, features, and apparent sturdiness. The unit was viewed by consumers as having a high price/value relationship, given the price and the features offered . One of the criticisms of the product was that it appeared cumbersome.

TRADE PRACTICES AND ATTITUDES

The retail sector of the telephone conferencing device market is clearly the dominant market segment. Therefore, it was necessary to gain a full understanding of retailer attitudes toward this product category in order to evaluate what opportunities might exist and what competitive actions against a new venture would be either likely or possible. The following findings are the result of an intense retail survey to determine the practices and attitudes of the retail sector.

The established demand for and high profitability of telephone conferencing devices results in a generally positive retailer attitude. The product category has an established demand that requires little or no effort to stimulate on the part of the retailer. Each sale yields a high profit compared to other retail merchandise because of the following factors:
1. It is a high-ticket item. The average retail price in department and business equipment stores is $195, which is significantly higher than the average sale in those stores. This relationship holds in the other channels also. For example, a discount store with an average retail price of $62 still finds this significantly above its average purchase transaction.
2. It is easy to demonstrate . With only a small amount of training, the average store clerk can learn how to operate and explain the features of telephone conferencing devices.
3. It has a small SKU count. The number of stock-keeping units (SKUs) is usually limited to two items. The small size of the units requires little backroom inventory space.
A large negative in the minds of retailers is the problem of pilferage. Because of the high value of these devices, most of them are displayed underneath expensive glass displays for security reasons. It is necessary to have a sales clerk unlock the display and take out the unit in order to give a demonstration.
Generally retailers carry two brands of telephone conferencing devices to offer the broadest selection to their customers. The major exception to this is Phone Shack, which, for the most part, promotes its own private label. The breadth of selection is largest in department stores. In other channels, the selection is usually limited to a few fast-moving models.
Retailer dissatisfaction with either a brand or the product category is usually the result of defective merchandise. Faulty merchandise is usually returned to the store during the first thirty to ninety days. In order to prevent customer unhappiness with the store, the retailer is forced to either exchange one unit for another or refund the customer s money. When this happens often with either a particular brand or the whole product category, the desirability of selling telephone conferencing devices is greatly diminished.
Delivering a high-quality, up-to-date product on time is more important than price or margins. A high-quality vendor is very important, since the margins provided by various manufacturers are almost all about the same. The average margin is 39 percent off list, with the range being from about 35 to 45 percent. For competitive reasons, most product offerings are also priced near the same price points.
Except for being in a manned location, telephone conferencing devices have no established home in the retail outlet. The location in the store varies among outlets in the same chain and among different retail distribution channels. In discount stores and department stores, these devices are located with either electronics equipment, office supplies , or cameras . In electronic supply stores and record stores, they are usually located near a manned counter and under glass. In business equipment stores, they are usually not prominently displayed and must be asked for by the customer.
Display practices are normally to have two models on display, with the balance of the inventory in the backroom. Not all the units available are put into the display case, since the only difference between the various models offered by a particular manufacturer is the features provided. During the sales demonstration, the salesperson explains the features available on the various models from that manufacturer.
Retail displays make minimal use of point-of-purchase material. It was the exception when point-of-purchase material was available without asking. The normal procedure is for the potential customer to be given a brochure only after the demonstration, and even then the sales clerk usually has to be asked for it.
Monthly replenishment of store inventory results in frequent out-of-stock situations. Most stores are shipped a monthly allotment of telephone conferencing devices through the chain warehouse. Often, these allotments do not reflect customer preference or sales history. Consequently, it is not uncommon for lower-priced units to be quickly sold out, leaving the retailer with only the higher-priced units in stock.
The function of in-store personnel is that of a basic order taker. The sales clerk normally does not actively solicit the sale. When asked about the product, the sales clerk will explain the product features and pull stock from the back room. In-store personnel are not well trained. In all outlets except the electronic supply stores, sales personnel had very limited product knowledge. In electronic supply stores, salespeople not only knew the product thoroughly, but also were aware of why one model was to be preferred over another and why one brand was seemingly better than another.
Telephone conferencing devices as a product category are generally sold at suggested list price by retailers. The major exception is discount stores, which specialize in either the lower-quality brands or discontinued merchandise. In all other retail channels, when sales or promotions do occur, they usually provide only a small dollar saving (like $10 or $20), not a major price reduction.
Most retailers deal directly with the manufacturer. The larger discount and department store chains utilize their centralized buying power to deal with the manufacturer, and then use their chain warehouses to distribute the product to the individual stores. Electronic supply dealers like Phone Shack contract directly with foreign manufacturers for their privatelabel units. Nonchain retailers use distributors, while some other retailers actually become distributors in order to gain an increased profit margin.

PLANNING ASSUMPTIONS

The market for telephone conferencing devices is worthwhile and growing. The projected 12 percent annual growth rate will expand the market from the 1999 level of 323,000 units and $49 million in retail dollar sales to 429,000 units and $68.9 million in retail dollar sales by 2002.
There is a strong consumer preference for outright purchase rather than rental. This definite preference held by the majority of consumers is the result of the following factors:
1. The majority of units are inexpensive. The relatively low cost (under $200) of the majority of units offered for sale makes the dollar outlay required for purchase well within the reach of the average consumer.
2. Leasing is viewed as being for high-priced units. The leasing of a telephone conferencing device is felt to be appropriate only for very sophisticated equipment priced at over $500. Recognizing that their needs were fairly simple, the vast majority of consumers rejected the idea of a lease or rental arrangement as an unacceptable alternative because they associate it with high cost.
A full product line is required in order for the company to take full advantage of the incremental business opportunity offered by telephone conferencing devices. A complete product line will offer the potential for penetrating all market segments. By having a variety of conferencing devices priced competitively, Quinn Technologies should be able to generate sufficient volume to cover all program costs and provide a reasonable profit.
In order for Quinn Technologies to successfully launch a program to sell telephone conferencing devices, a complete marketing plan is required. Because of the competitive nature of the market, a comprehensive plan with the following primary elements should be developed:
1. Achieve consumer awareness. It will be necessary to develop consumer awareness of the fact that Quinn Technologies has its own brand of telephone conferencing devices, that these devices are competitively priced, and that they are available on an outright sale basis. In addition, consumers must be aware that all a person has to do is go to a local retailer to obtain a conferencing device.
2. Price the product competitively. The pricing structure will have to be competitive with that of the current product offerings.
3. Utilize existing organization. The program will have to be designed so that it can be launched within the framework of the existing organization.
4. Limit risk. The risk to Quinn Technologies from developing and launching a venture on telephone conferencing devices will be substantially reduced by a step-by-step consumer research and marketing effort. The use of a test market prior to national expansion provides a logical checkpoint. Various forms of research (focus groups, surveys, and copy testing) will ensure that the final program contains the best-developed series of program elements available.

KEY STRATEGIC MARKETING OBJECTIVES

To create and maintain, over the next five years, a highly profitable consumer franchise and to establish Quinn Technologies as a major source of telephone conferencing devices. This objective centers on the goal of obtaining a significant share of the market for telephone conferencing devices by developing a definite consumer preference for the product offerings of Quinn Technologies.
To expand the total market for telephone conferencing devices dramatically through a low-key, yet aggressive , marketing effort. The first part of this objective is to increase the acceptability of using telephone conferencing devices by conducting a semi-institutional advertising program. The second part of the objective is to obtain a major market share of these ˜ ˜converts as buyers of Quinn s unique brand of telephone conferencing devices.
To target the thrust of the marketing effort toward the business and residence business market segments. This objective defines those consumers toward whom the elements of the marketing plan will be oriented.
To provide the consumer with a product that has an excellent price/value relationship. This objective will fulfill consumer expectations regarding the high quality of equipment that is available from Quinn Technologies, and for a competitive price.
To appeal to the broadest range of consumers by offering a broad product line for maximum reach. A total of four models will be offered so that the needs of all market segments will be addressed from both a feature and a price standpoint.
To offer the products to the consumer on a direct-sale basis only. The aim of this objective is to maximize the market potential by responding to the consumer s preference for purchase and to minimize the overhead costs associated with leasing or rental so that the product will be competitive.
To price the products at a slight premium. It is anticipated that once a unit is engineered to be competitively priced, a small premium ($5 to $20 per unit) will be added to reflect the quality image of products from Quinn Technologies.
To obtain a 20 percent market share of unit and retail dollar sales. This objective seeks to achieve a realistic sales level in order to justify a national program.
To generate sales of 104,000 units and $19 million in retail dollar sales in 2002. This objective assumes a 1/1/01 introduction of a national program, and seeks to obtain sales through market penetration and market expansion resulting from Quinn Technologies entry into the market.
To produce an average income before tax rate equal to a minimum of 10 percent of net sales. This objective is aimed at setting a minimum cutoff point in the evaluation of profitability.
To minimize the financial risk by using a test market approach prior to national expansion. Four test market cities will be used to test various elements of the marketing plan. Marketing plan elements and financial projections will be revised and presented to Quinn Technologies management prior to national expansion.
To begin test marketing on 7/1/00, and to go national by 1/1/01. Although this timetable will require an all-out management commitment, it seems to be a worthwhile target on which to plan.

MARKETING PLAN ELEMENTS

A product line consisting of four models will be developed in order to obtain the broadest consumer appeal. These units will be an economy unit; a basic unit, which will be the standard unit of the product line; a deluxe unit; and a deluxe unit with remote access. Specifically, these units will have the following features:
1. Economy unit. This conferencing device is designed to match the limited feature needs of a significant part of the market, with a price that is affordable by most potential users. Intended to be a competitive product pricewise, this unit is battery-operated. Since many users and potential users indicated that battery operation was a negative, an A/C adapter will be available as an option.
2. Basic unit. This model is to serve as the fundamental unit in the product line in that its technological design will be the basis for the other two models. This conferencing device has all the features of competitive units at similar prices. This unit provides A/C plugin.
3. Deluxe unit. This unit includes the feature of voice activation. The other features of the deluxe unit are identical to those of the basic unit.
4. Deluxe unit with remote access. The remote access feature provides the user with the ability to adjust the telephone conferencing device from anywhere in the room. The other features of this model are identical to those of the deluxe unit.
The design of the product line will be contemporary and distinctive . The units will have an appearance that will allow instant consumer identification of what the unit is and that it is from Quinn Technologies. Specifically, the product line will adhere to the following design objectives:
1. Reflect the actual value of the product. The device s appearance at all price points will be that of a premium product that obviously has been manufactured so that it will last a long time.
2. Reflect Quinn Technologies quality image. The quality image of the units will be consistent with that of other Quinn Technologies offerings in order to fulfill consumer expectations and therefore maintain Quinn Technologies image.
3. Design upgraded by price point. Although all units will be designed around a common theme, and will therefore have a similar appearance, as the price of the models increases , so should the overall appearance of the unit. For example, the deluxe unit might be in a wood-grained enclosure with black trim, while the economy unit might be available in plain white.
The actual production of the entire product line will be done by an outside supplier. Quinn Technologies will develop and provide the specifications and engineering input for the product line. Current manufacturers of telephone conferencing devices will then be contacted to determine their willingness and ability to supply Quinn Technologies product needs on a private-label basis. The units will then be purchased by Quinn Technologies, which will serve as the distribution system for the national program.
The product line will be offered at four price points. The sales prices of the four models are provided in Table 8-13.

Table 8-13. Product Pricing

Model

Price

Economy unit

$ 99

Basic unit

$180

Deluxe unit

$210

Deluxe unit with remote

$315
For the most part, the telephone conferencing devices will be intended for self-installation by the consumer. Each device will have a connector that will fit into either of the two types of telephone jack receptacles. When no telephone jack exists, the telephone company will have to make a separate house call to install one at the normal telephone jack installation charge.
If a unit is defective, it will be replaced with either a new or a reconditioned unit. During the warranty period (six months), the conferencing device will be replaced free. After the warranty period, the consumer may have a defective unit replaced for a small cost. This additional cost is dependent upon the cost to Quinn Technologies of having units reconditioned or replaced. This cost plus overhead will be passed on to the consumer.
The product line will be marketed under a unique Quinn Technologies brand name , with individual models being designated by model numbers . The tentative name for the product line is the Executive Conference Phone. The final brand name will be developed in conjunction with the advertising campaign and must have the following qualities:
1. Be preemptive and proprietary. This will enable it to be trademarked for exclusive Quinn Technologies utilization in the telephone conferencing device product category.
2. Be applicable to advertising and promotion. The name has to have the ability to lend itself to advertising and promotional activities on behalf of the brand.
3. Be meaningful to the target market. The name should have a positive meaning and relevance to the target market of business and residence business users (e.g., increased profit, customer service, and so on).
4. Be timeless. The name should not be one that is likely to be easily dated or become obsolete.
8. A display will be provided in each retail store to catch the consumers attention and serve to demonstrate the product line. Specifically, the objectives of the display are as follows:
1. Create interest. The displays will be located in stores and will be designed to draw the attention of visitors and customers and lead to further investigation.
2. Demonstrate the unit. The display should provide both a working telephone conferencing device and a demonstration of a telephone hook-up to allow for consumer experimentation.
3. Be flexible to meet retailers needs. The display should be flexible enough to accommodate various- sized stores. It should also use a minimal amount of floor space.
4. Have a three-year minimum life. The display should be designed to provide a minimum of three years service.
5. Dispense brochures . The display should hold and dispense informational brochures on the various telephone conferencing device models.
6. Be affordable. The display, not counting the telephone conferencing device, should be obtainable from an outside supplier for less than $75 per display.
A full-time national program coordinator and nineteen regional product managers (on a part-time basis) will be needed to staff the program. The national program coordinator will create the annual marketing plan and monitor the overall progress of the program. The coordinator will also be responsible for implementing the marketing plan, coordinating with the regional product managers, and interfacing with the manufacturer of the conferencing devices and the other outside suppliers.
Training will be provided for the customer contact personnel at retail stores. This training will provide them with overall product knowledge, sales and billing information and procedures, and the replacement policy for defective units. This training will be done by the regional product managers.
The objective of the venture s advertising copy is to build awareness of and demand for the telephone conferencing devices among the target audience. Specifically, the following points should register with the target audience:
1. Overall product quality. The Quinn Technologies telephone conferencing devices have been designed to be consistent with the quality standards of other products from the company.
2. Specific product advantages. Different models have been designed to provide various feature needs, and how those features positively compare to the competition.
The overall objective of the advertising media plan is to obtain broad coverage of the target market (business and residence business users) and to direct special efforts toward selected groups. Examples of these groups are skilled craft workers, professionals, and the selfemployed. Specifically, the media objectives are:
1. Reach and frequency. To achieve a minimum reach of 80 percent of the target market an average of three times per month during the introductory period. On a sustained basis, to achieve a reach of 50 percent of the target market an average of two times per month.
2. Awareness. To use large ad formats and full color to generate overall consumer awareness that telephone conferencing devices are now available from Quinn Technologies.
3. Appropriate media. To select and utilize media that will permit full and effective communication of product benefits and the features that are available on the various models.
4. Advertising continuity. To develop a media plan that will provide continuity of advertising throughout the year.

Table 8-13. Product Pricing
Model	Price
Economy unit	$ 99
Basic unit	$180
Deluxe unit	$210
Deluxe unit with remote	$315

The overall media strategy will be to use magazines as the primary medium, use supplementary media for specialized markets, and front-end load the plan for maximum introductory impact. The specifics of this strategy are as follows:

A. Magazines as primary medium. Magazines are seen as superior to other advertising media for communicating the venture s copy points for the following reasons:
1. Selectivity. Specific magazines can reach the target market selectively.
2. Efficiency. For the telephone conferencing device market, magazines (on a cost-perthousand basis) most efficiently deliver impressions to the target market.
3. Sales development. Printed media will allow a complete and detailed sales presentation to be made to the target consumer. Sufficient facts can be provided without the time constraints inherent in television and radio.
4. Lengthy message requirement. The complicated copy requirements of this advertising campaign preclude the use of outdoor advertising, radio, and television. Daily newspapers will be considered for use only during the sustaining periods, when no color advertising will be scheduled.
Supplementary media. As supplementary media, industry publications and direct mail will be used to support specialized markets. This will provide increased coverage of groups with high incidences of usage or those who don t normally read a large number of magazines frequently, such as doctors , lawyers , contractors, and so on.

Media spending. Two front-end-loaded spending levels will be tested to determine the optimum amount of advertising required for the venture. The high-level plan will introduce the venture at a $4 million level of national expenditure. During succeeding years, this budget will drop to $2.5 million nationally. The low-level budget to be tested will be exactly half of that for the high-level plan. Table 8-14 summarizes the two national budgets to be tested.

Table 8-14. Split-Level Advertising Test of National Media Plan
Medium	High-Level National Budget (000)	Low-Level National Budget (000)
Consumer magazines	$3,111	$1,555
Business publications	106	53
Direct mail	194	97
Production	589	295
Total introduction	$4,000	$2,000
Going year	$2,500	$1,250

A formal test market is planned for the venture prior to a full national introduction. The test will last for a period of six months in four cities representing a total of 2 percent of the households in the total United States. At the end of the six months, the results will be evaluated to determine if and how the program should be expanded. The following specific areas will be evaluated:
1. Volume forecast. Unit and dollar sales will be measured to determine the viability of the objectives set forth in this marketing plan. If necessary, the sales forecast will be modified after the test market.
2. Advertising spending. Two separate levels of advertising will be run during the test market. Two markets will be at the high level of advertising, and the other two markets will be at the low level. The ideal level of advertising will be determined based on the actual sales achieved at each level.
3. Advertising communication effectiveness. The degree of success in reaching the target audience and in communicating the proper message will be determined.
4. Internal effectiveness. The effectiveness of all levels of the organization involved in the venture will be evaluated to determine the success of the training program, communication channels, and so on.
5. Overall plan effectiveness. A miniature version of the total national plan will be launched during the test market. The objective of the research conducted during the test will be to identify any area that should be modified. This will include suppliers, product performance, cost variations, organizational effectiveness, and so on.
Major research and product-testing projects will be conducted during the early stages of the program. These various projects will seek to develop a tracking system so that actual progress may be measured against the objectives outlined in this marketing plan. The following are the types of research and testing projects that will be conducted to refine and track this marketing plan before and during the test market.
1. Product testing. Quinn Technologies will conduct bench testing of the prototypes and initial production runs to ensure that they meet the original specifications.
2. Copy testing. The advertising copy will be tested in order to determine how well it meets the copy objectives.
3. Consumer research. Consumer focus groups will be conducted to determine if any change in consumer usage and attitudes has occurred prior to or during the implementation of the program. In addition, surveys will be conducted to test awareness and effectiveness of the program in particular and the product category of telephone conferencing devices in general.
4. Internal tracking. The company will develop and conduct an internal tracking study to determine unit movement and sales for the program as a whole and for each region. This study will serve as a foundation for the annual marketing plan and related sales forecasts.
5. Test market translation. From the research conducted during the test market, results will be projected on a national basis and the finalized elements of the marketing plan will be adjusted to reflect this added input.
6. Ongoing research. On an ongoing basis, copy testing, consumer research, and internal tracking will be conducted throughout the life of the program.

This marketing plan is based on the tentative timetable in Table 8-15.

Table 8-15. Tentative Venture Timetable
Management presentations for approval	10/1/99
Select national program coordinator	11/1/99
Determine product design	12/1/99
Determine product availability and cost	12/15/99
Decide on brand name	1/1/00
Develop advertising program	1/15/00
Management presentations on regional basis	2/1/00
Product testing completed	2/1/00
Develop collateral material	3/1/00
Complete training for test market	6/1/00
Test market introduction	7/1/00
National expansion	1/1/01

FINANCIAL PROJECTIONS

Launching a telephone conferencing device program is expected to provide Quinn Technologies with an incremental business opportunity of between $114 and $173 million in revenue and between $19.7 and $28.0 million in before-tax profits between the years 2001 and 2005. These projections are based upon a multitude of assumptions. The following summarizes these assumptions based on a high and a low level of advertising expenditures.

The entry of Quinn Technologies into the telephone conferencing device product category is expected to expand the overall national market by 25 to 40 percent in 2002.

Without Quinn Technologies entering the market, the normal market growth would result in 2002 sales of 344,000 units and $55 million in national retail dollar sales. With Quinn Technologies entry on a national basis, the overall market in 2002 is expected to grow to 481,000 units and $77 million based upon the high-level advertising budget, and to 429,000 units or $69 million based upon the low-level budget.
Quinn Technologies market share is expected to depend on the level of advertising. Quinn Technologies is expected to obtain a 17 percent market share with the low-level advertising plan, representing 73,100 units and $13.7 million in retail sales. The highlevel advertising plan is expected to result in a 21.7 percent market share for Quinn Technologies, with unit sales of 104,400 and retail dollar sales of $19.6 million.

Assuming a 1/1/01 implementation of a national plan, Quinn Technologies expects to achieve a 20.9 percent profit margin (before taxes) for the year 2005 and a cumulative profit margin for the years 2001 to 2005 of 15.0 percent based upon the planning assumptions for the low-level advertising plan. Table 8-16 provides a financial overview of the results with the low-level advertising plan.

Table 8-16. Financial Overview National Low-Level Advertising Plan
Year	Unit Sales	Retail Dollar Sales (Net) 000)	Net Profit Before Tax (000)	PBT as % of Net Sales
2001	950	$ 174	$ (542)
2002	73,100	13,459	498	3.7%
2003	81,100	14,940	2,612	17.5
2004	90,100	16,583	3,090	18.6
2005	100,000	18,406	3,856	20.9
Total	345,250	$63,562	$9,514	15.0%

With the high-level advertising plan, Quinn Technologies expects to achieve a 19.3 percent profit margin before taxes for the year 2005 and a cumulative profit margin for the years 2001 to 2005 of 13.2 percent based upon the planning assumptions for the high-level advertising plan. Table 8-17 illustrates that while the profit margins with the high-level plan are lower, the overall magnitude of the cumulative before-tax profit is $2.6 million greater than with the low-level advertising plan.

Table 8-17. Financial Overview National High-Level Advertising Plan
Year	Sales	Retail Dollar Sales (Net) (000)	Net Profit Before Tax (000)	Net Sales
2001	950	$ 174	($542)	”
2002	104,400	19,194	166	0.9%
2003	116,900	21,498	3,270	15.2
2004	130,900	24,077	4,021	16.7
2005	146,600	26,962	5,206	19.3
Total	499,750	$91,905	$12,121	13.2%

Detailed pro forma five-year profit-and-loss statements are provided for 2001 to 2005. Tables 8-18 and 8-19 illustrate the anticipated revenue, expenses, and profits for both the low- and high-level advertising plans.

Table 8-18. Pro Forma Five-Year P&L Statement National Low-Level Advertising Plan (000)
	2001	2002	2003	2004	2005	Total Projected 2001 “2005
Total unit sales	950	73,100	81,100	90,100	100,000	345,250
Gross sales	$178	$13,733	$15,244	$16,921	$18,782	$64,858
Less bad debt @1%	2	137	152	169	188	648
Less 1% allowance for returns	2	137	152	169	188	648
Net sales	$174	$13,459	$14,940	$16,583	$18,406	$63,562
Expenses
Cost of goods	$181	$ 8,624	$ 9,573	$10,626	$11,559	$40,563
Company overhead	10	731	811	901	1,000	3,453
Advertising/promotions	75	2,000	1,250	1,250	1,250	5,825
System training & information	20	500	100	100	100	820
Displays/display installation	9	235	78	78	78	478
Collateral material	9	183	203	225	250	870
Market research/tracking	120	100	50	50	50	370
Project development	275	325				600
Administrative headcount	17	263	263	263	263	1,069
Total expense	$716	$12,961	$12,328	$13,493	$14,550	$54,048
Net profit before tax	($542)	$ 498	$ 2,612	$ 3,090	$3,856	$ 9,514
PBT as % of net sales	”	3.7%	17.5%	18.6%	20.9%	15.0%

Table 8-19. Pro Forma Five-Year P&L Statement National High-Level Advertising Plan (000)
	2001	2002	2003	2004	2005	Total Projected 2001 “2005
Total unit sales	950	104,400	116,900	130,900	146,600	499,750
Gross sales	$178	$19,586	$21,936	$24,569	$27,512	$93,781
Less bad debt @1%	2	196	219	246	275	938
Less 1% allowance for returns	2	196	219	246	275	938
Net sales	$174	$19,194	$21,498	$24,077	$26,962	$91,905
Expenses
Cost of goods	$181	$12,300	$13,776	$15,429	$16,932	$58,618
Company overhead	10	1,044	1,169	1,309	1,466	4,998
Advertising/promotions	75	4,000	2,500	2,500	2,500	11,575
System training & information	20	500	100	100	100	820
Displays/display installation	9	235	78	78	78	478
Collateral material	9	261	292	327	367	1,256
Market research/tracking	120	100	50	50	50	370
Project development	275	325				600
Administrative headcount	17	263	263	263	263	1,069
Total expense	$716	$19,028	$18,228	$20,056	$21,756	$79,784
Net profit before tax	($542)	$ 166	$ 3,270	$ 4,021	$ 5,206	$12,121
PBT as % of net sales	”	0.9%	15.2%	16.7%	19.3%	13.2%

CONTINGENCIES

With a marketing program of this magnitude, it is reasonable to assume that there are a large number of contingencies that could occur. The following is a list of those situations that could occur based on previous company experiences.

Competitors might challenge advertising. It is not uncommon for one competitor to request that the Federal Trade Commission review another competitor s advertising, the goal being to require corrective advertising. As a preventive measure, all advertising will be approved by the legal department of Quinn Technologies and all advertising claims will be documented.
Current manufacturers might retaliate in the marketplace by modifying their marketing plans. The following are specific marketing plan elements that could be implemented by competitors:
1. Product improvements. Current manufacturers could modify their own units in order to regain a product advantage over Quinn Technologies products. This could be done by adding features while maintaining current price levels. The contemplated reaction would be to do consumer research to determine the real appeal of the added features, and if necessary modify the Quinn Technologies units or add a new model.
2. Lower price. Current manufacturers might try to counter the Quinn Technologies effort by lowering the price of their units. If this happens, no reaction is contemplated unless the price reductions are dramatic and permanent.
3. Special promotions/ discounts . Special incentives, temporary in nature, might be used to counter the initial entry of Quinn Technologies into the market. No reaction is contemplated unless Quinn Technologies sales are affected.
4. Increased advertising. On either a manufacturer or a retailer level or both, advertising expenditures could be increased. Since advertising efforts are currently deemed to be below the threshold of effectiveness, no reaction will take place unless Quinn Technologies sales are adversely affected.
5. Redirect advertising message. One of the real alternatives for current manufacturers or retailers is to redirect their advertising message, either against the Quinn Technologies offering or in light of it. It would be rather simple to point out that the consumer can get a comparable device for less from someone other than Quinn Technologies. Any redirection of advertising will be monitored , and, if appropriate, our copy strategy will be modified.
Quinn Technologies might not be able to obtain the product either at a reasonable cost or on a private-label basis. If the problem is one of cost, a reevaluation of the profit-and-loss statements and the pricing of the conferencing devices will be required. If the current manufacturers can t or won t provide the private label to Quinn Technologies, then manufacturers who are not currently in the business will be contacted. There are many manufacturers who could easily manufacture the needed products.
The viability of the telephone conferencing device market, plus Quinn Technologies entry, might attract major manufacturers into the market. Until such an event occurs, it is difficult to determine the exact reaction. The contingency plan calls for tracking a major new entrant s strategy and products and adjusting the marketing plan only if necessary.
A technological change could make the concept of a telephone conferencing device obsolete. The research conducted for this plan, along with previous studies, indicates that such an occurrence will not find consumer acceptance in the foreseeable future. However, should this occur, an evaluation will be made to determine whether the program should be phased out.

^[1] Disclaimer: The specific information in this sample marketing plan was compiled for intended use as an example only. Although this marketing plan is based on actual products from a real company, the specific information in the plan is hypothetical and is not intended to compete with or to divulge proprietary ideas, company structure, or the financial status of any company. The names, numbers, and some of the facts in this marketing plan have been changed because of the confidential nature of the information. The information is intended to be used as a guide only.