Sean-Y-Tran-Brianda-Baseet-Hyebin-NgocGroup 5

iCGALAXY

ICGALAXY

In the last decade cell phone companies have developed newer technologies as well as improved their devices, they’ve certainly come a long way, but they are still lacking.

Our approach to improving smartphones is simple, fixing

We present to you: ICGALAXY

Background

Nowadays there are close to 1.7 billion people worldwide who own smartphones.

In 2012 the total addressable market for smartphones was approximately 225 million.

Today, there are about 165 million Android and Apple iOS users in the US alone.

If the total addressable market is 225 and there are only 165 current users, there is a potential market of about 60 million users, which makes the cellphone industry one of the most competitive one.

Market Research

Primary Research(online survey) 18-25 year olds, both male & female College students Dallas Metroplex

Key Issues Determining factors when choosing which

cellphone to buy. Current cellphone brand Issues with current cellphone

Brand of current cellphone

47%

31%

3%19%

AppleSamsungHTCOther

Factors to improve about current phone

Batte

ry li

fe

Dro

pped

cal

ls

Inte

rnet

& a

pp spe

eds

Sign

al stren

gth

Progr

am cra

shes

Gra

phic res

olut

ion

0

10

20

30

40

50

Determining factors in buying a phone

Func

tion

ality

Carrier

Ava

ilibi

lity

Price

Man

ufac

ture

r

Ope

rating

Sys

tem

Oth

er

0

10

20

30

40

50

Would buy an ICGALAXY

27%

53%

20%Absolutely Depends on priceNot interested

Market Research

Secondary Research (2013 data) Apple: 30,330 million 1

Samsung: 80,356.8 million 1

HTC: $70.7 billion globally 21. Bora, Kukil. “Worldwide Smartphone Sales In Q3 2013: Samsung, Android

Maintain Lead As Apple’s Market Share Slips”. International Business Times.

http://www.ibtimes.com/worldwide-smartphone-sales-q3-2013-samsung-

android-maintain-lead-apples-market-share-slips-1471754 (April 7, 2014)

2. Henderson, Rick. “HTC profits rise fractionally in Q2 2013 thanks to HTC One

sales, but predicts losses for Q3”. Pocket-lint.

http://www.pocket-lint.com/news/122637-htc-profits-rise-fractionally-in-q2-

2013-thanks-to-htc-one-sales-but-predicts-losses-for-q3 (April 7, 2014)

Competitive Advantage

Product Development Introduce an improved product to an existing

market Inform customers of product’s better

performance and unique features

Product Differentiation Competitive advantage in being a customizable

phone for industry-wide consumers Higher quality material and functionality Higher product resale and scrap value

SWOT

1. "Mobile Technology Fact Sheet." Pew Internet Project. http://www.pewinternet.org/fact-sheets/mobile-technology-

fact-sheet/ (accessed April 9, 2014).

2. "SWOT analysis of Apple." Strategic Management Insight. http://www.strategicmanagementinsight.com/swot-

analyses/apple-swot-analysis.html (accessed April 9, 2014).

Strengths Weaknesses Opportunities Threats

● Extended battery life

● Fast Internet and app speeds

● Strong signal strength

● Higher quality materials

● Late market entry

● No current established brand positioning

● Rapidly growing industry with 90% of cell phone users

● 77% of cell internet users experience slow download speeds

● 72% of cell owners experience dropped calls at least occasionally

● Saturated smartphone markets in developed countries

● Apple’s customer loyalty combined with expanding closed ecosystem

● Rapid technological change demands new innovative products

SWOT AnalysisOpportunities

1. Improve smartphones with longer battery life,faster Internet speeds, and stronger signal strength

2. Offer customizable features (i.e. design, camera, battery)

3. Partner with a branded company

4. Develop a new mobile operating system1

Att

racti

ven

ess

Hig

h

High Low

Low

Success Probability

Threats1. ICGALAXY competitors release a faster processor

and more durable battery

2. Competitors lowering their selling prices

3. Competitors expanding market share to other countries

4. Competitor acquires ICGALAXY21Boxall, Andy. "War for your pocket: These 5 new operating systems plan to battle Android and iOS in 2013." Digital Trends.

http://www.digitaltrends.com/mobile/five-new-mobile-operating-systems-ready-for-launch-in-2013/2Walrath, Michael. “What are the pros and cons of a startup being acquired by a large company.” Quora.

http://www.quora.com/What-are-the-pros-and-cons-of-a-startup-being-acquired-by-a-large-company

Seri

ou

sn

es

s

Probability of Occurrence

Hig

h High Low

Low

Buyer behavior

Battery life, processing speed, and signal strength are the three main factors consumers consider when buying a phone

Users who mentioned functionality and price as key factors in purchasing a new phone were more willing to pay depending on the price

Users who purchase their phones from retail stores are more certain to buy the ICGALAXY than those of official and online stores

Official store customers are the most willing to consider purchasing the product depending on the price

Samsung users are primarily concerned about functionality and pricing

Apple and Other users are primarily concerned about functionality and operating system

Segmentation & Targeting

Mobile users nationwide ages 18-49 who: Earn an income of >$49k Have owned smartphones before Primarily experience issues with battery

life, and signal strength Purchase phones at official and retail

stores Who want customizable features

Promotion Overview

Google Adwords Facebook Become partners with Verizon Commercials Print Ads Personnel Advertising

Google Awords

CPC and CPM Cost: $2,500 for

the first 100 days 400 clicks 8,200

impressions Key Words:

iCGalaxy, new phones, affordable smart phone

Commercials

In- Stream Ads (YouTube)

• Cost: $2,100 (7000 views)

• intermittent style for 3 weeks prior to release of product

• Heavily shown during week of release and then intermittent style for the next 3 months

Local TV Stations

• Cost: $2,600 (12 ads)• Aired during the week

before and we of product release

Facebook

Used as a Promotional Tool Invite 50 of your friends to “like” our

page and you’ll receive a 5% discount on the purchase of an iCGalaxy. Offer ends 04/22/14. Hurry!

The top ten people to invite the most friends to “like” our page will win a FREE iCGalaxy!

Cost: FREE

Partner up with Verizon

Low switching cost

Keep your existing number

Buy 2 phones and get the third FREE

Receive 10% off with a 2-year contract

Cost: Verzion keeps 2% of sales profit

Magazine Ads

Cost: $1965 (3 ads) printed in TIME, Forbes, Seventeen in the

first week of product release Example:

Personnel Advertising Booths

Have company salespersons go into wholesalers like Costco and Sam’s to set up a booth. They will have sample phones to advertise and can also collect emails of potential customers.

Cost: Free (pending store managers permission) When: for one month after product release

Help to create buzz

Collect emails of interested

people

Help to create more

market research

Reach target audience

Success Metrics