Effects Of Retail Channel Integration System Essay

Question:

Discuss about the Effects of Retail Channel Integration System.

Answer:

Introduction:

Zipra a new emergent mobile phone is launched which will offer distinctive features which are not provided by other mobile companies. The latest feature in ZIpra will be its augmented reality means the mobile will operate through the senses of human being. The Zipra mobile company and its associates will launch the product in upcoming month (Poetz & Schreier, 2012). The phone will come with a display of 5.5 inches comes with a 5.50-inch touchscreen display with a resolution of 1080 pixels by 1920 pixels.

The phone will be powered by the nexa-core Bionic processor and will be coming with 4GB of RAM. The phone will be the expandable memory of 64GB that can also be enhanced. As far as the cameras are concerned, the phone will be having the good quality camera with 16 megapixel back camera and 5-megapixel front camera.

Young people will view this as latest technology model. Young people utilize will utilize Zipra for many reasons. Some of these reasons are to associate with companions, tune in to music and go on Facebook, MSN, Twitter and much more (Smutkupt, Krairit & Esichaikul, 2010). There are likewise many gaming applications that interest to them. Zipra have progressed toward becoming a significant pattern with adolescents.

Businessmen: Business individuals are exceptional will be captivated by Zipra items. All Apple gadgets have a business quality that is exceptionally helpful. These gadgets are utilized to complete work productively and to speak with customers effectively. What's more, sending records is simple and composed.

Adults: Adults will likewise be one of the Zipra objective markets. Zipra is helpful to grown-ups for their regular needs, for example, telephone calls, outline, web association, records and cameras (Li & Du, 2012). Conveying these little gadgets makes grown-ups live significantly less demanding for communicating day by day.

Pricing and positioning strategy

This strategy primarily concentrates on features of the product and customer benefits as well. Zipra will be focusing on the innovative and excellent features it has to attract the customer of the different market. This strategy is which is very much popular nowadays as it fulfills customer requirement (Nagle, Hogan & Zale, 2016). This strategy also focuses on features which the product of the company is having and competitors are lacking behind for that Unique selling proposition.

Pricing strategy:

In the early on the phase of new item's life cycle implies bearing a lower overall revenue and to cost moderately low. Such a technique is adopted to create more deals and set up the new product in the market more rapidly. Penetration pricing is the evaluating method of setting a generally low starting time cost, regularly lower than the competitors market cost, to pull in new clients (Smith, 2012). The technique works at the desire that clients will change to the new brand due to the lower cost and innovative quality of the product. Penetration pricing is most regularly connected with an advertising goal of expanding piece of the overall industry or deals volume, as opposed to make benefit for the time being.

Zipra will adopt this pricing strategy to attract new customers to purchase the product. The product will be priced at marginally lower than the price of competitors like Samsung, one plus and many more.

The first and most clear plan to distribute Zipra is through "application stores" as an appropriation channel. There are a huge number of stores of application, including stores like the Android Market, Nokia's Ovi Store, and other, in addition to autonomous application store and many more (Ellickson, Misra, & Nair, 2012).

The Zipra phone will also be available with the retailer of the local market to increase the sale. The retailer will help in promoting the product excellently as the customer will be interacting more easily than online. So the availability of Zipra will be with local retailers as well (Oh, Teo, & Sambamurthy, 2012). This enhances the experience for the end client since they don't have to know anything about their gadget sort. They simply move to the shop and purchase the product. Those connections can be enhanced through Facebook page, YouTube site, Twitter account or some other channel.

Marketing offers

Cash-back: Cash-back help a customer to get a discount of an extent of the price tag of products and enterprises – gave that you finish the significant exchange through a connection on their site. A few locales likewise offer a "disconnected" cash-back benefit whereby Zipra phone will be sold at some cash-back offer (Westwood, 2010).

Student concession: Student concession can be successfully utilized by Zipra as students are the target market for newly launched mobile phone. The student can be targeted easily by making them offering rebate or concession on newly launched products, as they are always looking for latest products. The student will help Zipra in enhancing the sales because if they are offered at special rate they will be influenced by the product price as well as features.

The Zipra can offer the product to its target market through various sources and moreover, it can offer a discount on the product to attract the customers. The discount given should be unique in a way for instance purchasing two mobile together, hosting lucky draw and many more, so that more and more customers are attracted towards it.

  • Ads given in broachers’ are both viable and pocket-friendly for Zipra than item commercials on magazines and daily papers, given the way that prime space on print media is exorbitant (Amit & Zott, 2012). The brochures will increase the sale of Zipra in many ways extraordinary.
  • Brochures will help Zipra hold the attention of clients, particularly on basis of new and old generation that are on a constricted spending plan.

Substantial information and data can be picked up by your prospects and existing clients through Zipra site that it totally ought to be viewed as the foundation of image and advertising (Zwick & Cayla, 2011). Company site is that place where it can host a assembly of people and will get a chance to convey image, culture and story. This is frequently where company prospects will settle on the choice to connect with organization further and make the people step in the promoting cycle to promptly buy an item, select in to get general substance or get the telephone and call.

Promotion strategy:

The flag space can be purchased on the significant web indexes. Advertisement space can be purchased on 'Pay per Click' technique which influences it to cost conservative. Banners are exchanged by a large number of the sites who trade the flag space with different sites in their system (Hui, et al., 2013). Zipra can utilize this to promote the latest technology product it is launching. The banners would be communicable and sufficiently appealing to influence the client to snap to and visit Company site.

Promoting on TV enables Zipra to show and tell a wide gathering of people about the business, item, or administration. It enables the company to really exhibit the advantages of possession (Jiang, et al., 015). Zipra can indicate how item or administration functions and how it's bundled so imminent clients will recognize what to search for the purpose of the offer. In publicizing, it regularly takes various touch focuses to successfully impact buyers' obtaining conduct.

After formation, there is a lesser requirement of maintenance and moreover convenience in adding new members. In joint venture it is easy to sell the business to someone else. It requires lesser procedural follow-up in comparison to the company (Baden-Fuller & Morgan, 2010). There is a more relaxed structure in joint venture, as minutes procedure like the company is not required for taking board decisions in joint venture. There are also fewer business restrictions on many management related decision if compared with other business structure.

It helps in shielding individual resources utilized as a part of business from claims against coordinated on business. A proprietorship and organization will be dangerous elements to begin. After some timeframe development and expanded piece of the overall industry, joint venture can change over their business to corporation form (Ramsey & Selby, 2011). In takeover and merger; a joint venture can profit itself by procuring wiped out organizations giving the tax break to the business.

A joint venture is an optimal structure for a business as it is easy, fast and simple to form. The registration process for joint venture can also be completed without appointing an attorney. The charge for filing registration fee in joint venture is very less.

Projected income statement (in excel sheet):

Zipra

Profit & Loss Statement

Amount ($)

2016

2017

2018

Sales

$300,00,000

$350,00,000

$420,00,000

Miscellaneous income

$2,00,000

$70,00,000

$63,00,000

A. Total

$302,00,000

$420,00,000

$483,00,000

B. Cost of Sales

$196,30,000

$192,50,000

$273,00,000

C. Gross Profit (A-B)

$105,70,000

$227,50,000

$210,00,000

D. Operating Expenses

Salary

$25,00,000

$27,50,000

$33,00,000

Rent

$5,00,000

$5,50,000

$6,60,000

Insurance

$10,000

$11,000

$13,200

Depreciation

$20,000

$22,000

$26,400

Marketing expenses

$3,00,000

$3,30,000

$3,96,000

Promotional offers expenses

$5,00,000

$5,50,000

$6,60,000

Other

$1,00,000

$1,10,000

$1,32,000

Total

$39,30,000

$43,23,000

$51,87,600

Operating profit

$66,40,000

$184,27,000

$158,12,400

Less: Interest

$10,000

$10,000

$10,000

Profit before tax

$66,30,000

$184,17,000

$158,02,400

Less: Tax @ 30%

$19,89,000

$55,25,100

$47,40,720

Net Profit AT

$46,41,000

$128,91,900

$110,61,680

References:

Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), 41.

Baden-Fuller, C., & Morgan, M. S. (2010). Business models as models. Long range planning, 43(2), 156-171.

Ellickson, P. B., Misra, S., & Nair, H. S. (2012). Repositioning dynamics and pricing strategy. Journal of Marketing Research, 49(6), 750-772.

Hui, S. K., Inman, J. J., Huang, Y., & Suher, J. (2013). The effect of in-store travel distance on unplanned spending: Applications to mobile promotion strategies. Journal of Marketing, 77(2), 1-16.

Jiang, Y., Shang, J., Liu, Y., & May, J. (2015). Redesigning promotion strategy for e-commerce competitiveness through pricing and recommendation. International Journal of Production Economics, 167, 257-270.

Li, K., & Du, T. C. (2012). Building a targeted mobile advertising system for location-based services. Decision Support Systems, 54(1), 1-8.

Nagle, T. T., Hogan, J., & Zale, J. (2016). The Strategy and Tactics of Pricing: New International Edition. Routledge.

Oh, L. B., Teo, H. H., & Sambamurthy, V. (2012). The effects of retail channel integration through the use of information technologies on firm performance. Journal of Operations Management, 30(5), 368-381.

Poetz, M. K., & Schreier, M. (2012). The value of crowdsourcing: can users really compete with professionals in generating new product ideas?. Journal of Product Innovation Management, 29(2), 245-256.

Ramsey, M. S., & Selby, D. A. (2011). U.S. Patent No. 7,881,959. Washington, DC: U.S. Patent and Trademark Office.

Smith, T. J. (2012). Pricing strategy. Pricing Done Right: The Pricing Framework Proven Successful by the World's Most Profitable Companies, 55-78.

Smutkupt, P., Krairit, D., & Esichaikul, V. (2010). Mobile marketing: Implications for marketing strategies. International Journal of Mobile Marketing, 5(2).

Westwood, J. (2010). How to write a marketing plan (Vol. 36). Kogan Page Publishers.

Zwick, D., & Cayla, J. (Eds.). (2011). Inside marketing: Practices, ideologies, devices. Oxford University Press.

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