Among all composing instruments, ballpen pen is widely used today due to their low cost and convenience in composing on paper of different surfaces. The current Pilot Frixion ballpen pen has its downside which one is advised non to utilize the pen on legal or official paperss and scrutiny documents. When the temperature reaches 60 A° C, the ink will be colorless but it will be seen once more at -10A° C in deep-freeze. The alteration to the current invention is that by increasing the heat tolerance of the present thermo-sensitive ink to the auto-ignition point of paper of about 451 grades Fahrenheit, or 233 grades Celsius, unwilled erasure will be prevented. So far, merely Pilot has this sort of effaceable ballpen pen in the market.
Situational Analysis
Industry Analysis: Porter ‘s 5 Forces Model
The likeliness of new entryA
There is a proliferation of no name ballpen pens due to the comparatively small-scale equipment and installations that is needed in fabrication and no legal limitations on the importing and sale of ballpen pens in Singapore. However, the gov’t prohibits imitative ware. Despite of this, Pilot is the most preferable pen trade name by consumers in the Singapore market ( Reader ‘s Digest Asia, 2011 ) .
The power of purchasers
Since the ballpen pens are merchandises used every twenty-four hours and are fundamentally consumable supplies, it exhibits changeless and inelastic demand form ( Jalan, 2012 ) . Buyers get their preferable ballpen write out of necessity for work that needs to handwritten.
The power of providers
A broad scope of natural stuffs are needed for the constituents of a ballpen pen, including metals, plastics, and ink chemicals which are abundant.A Pilot can easy procure the providers which cater to its demand ofA natural stuffs at its ain mills in Japan, or produced on an OEM footing in China.
The grade of competition
Ballpoint pens represent the largest every bit good as fastest turning merchandise class in the authorship instruments industry ( Vocus, 2011 ) . Trade names like Parker, Montblanc and 100s of other participants compete among each other in the ballpen pen market.
The replacement menace
The rapid enlargement of cybernation lessens the affairs which need to be handwritten. The increasing tendency towards a paperless universe changes the consumers ‘ purchasing forms peculiarly with respects to pens ( Tan, 2012 ) . However, composing instruments are still a critical portion of day-to-day modus operandi of a pupil to an executive working in an office.
Market Features: Plague Analysis
Political/Legal
Singapore is a state with a little population and limited resources therefore foreign direct investings is encouraged. The island democracy is known as an endeavor friendly state because of being one of the least corrupt states in the universe and holding a stable political system of all time since independency in 1965. Factors such as corruption-free authorities, strong legal and fiscal concern model from deregulating and liberalisation of cardinal industries supported by an educated work force, make concerns thrive in the state.
Economic
Harmonizing to the World Bank, the Gross Domestic Product of Singapore expanded 2 % in the 2nd one-fourth of 2012 over the same one-fourth of the old twelvemonth. From 2007 until 2012, Singapore GDP growing rate averaged 5.8 % making an all-time high of 36.4 % in March of 2010. This shows thatA Singapore is a extremely developed and successful free-market economic system. It enjoys a per capita GDP higher than that of most developed states intending people are flush and ingestion is vivacious.
Social
Based on the Yearbook of Statisticss Singapore ( 2012 ) , the entire population in Singapore was last reported at 5.183 million people in 2011, up by 2.1 % from 2010 but the birth rate per 1000 population is worsening from 13.7 in 2000 to 9.5 in 2011 as reflected by the lessening in net reproduction rate of females in the period of 10 old ages. Therefore, there is lessening of figure of pupils enrolled in educational establishments from the high of 704,719 in 2008 to 689,060 in 2011. Therefore, even though Singaporeans are flush but the worsening birth rate causes the dwindling figure of pupils, the largest users of pens.
Technological
Aside from the prevalent usage of engineering in the corporate universe, the Singapore authorities has initiated many IT related policies in order for educational establishments to make a more effectual acquisition environment through the usage of engineering. Governments around the universe are researching ways to incorporate the usage of tablet computing machines into their instruction systems ( Tan, 2012 ) . Soon, schools in Singapore will follow the tendency such as in a Bangkok school where paper and pen have been replaced by tablet computing machines in a linguistic communication category traveling towards a paperless instruction system ( Tan, 2012 ) .
Customer Analysis
Writing instruments are still a critical portion of day-to-day modus operandi of a pupil to an executive working in an office. In today ‘s fast-paced and technology-centric environment, consumers are invariably looking for merchandises which enable them to outdo express themselves creatively ( Tan, 2012 ) . Furthermore, consumer demands and penchants have changed and diversified, and presents composing instruments must be able to fulfill consumer position and trade name name penchants that have made these articles into manner articles with a sense of merriment every bit much as practical necessities ( ASEAN Promotion Centre on Trade, Investment and Tourism, 2004 ) . Brand name penchant is strongest among older grownups, while immature grownups tend to be less interested in the trade name label and more interested in functionality, manner and manner entreaty ( ASEAN Promotion Centre on Trade, Investment and Tourism, 2004 ) . Taking the factors into history, Pilot has made the Frixion pen in such a manner that every work forces and adult females of all ages can utilize and feels like holding this ballpen pen. The Pilot Frixion is targeted for pupils, the biggest users of ballpen pen. For schoolgirls, ballpen pens are a portion of manner, with cunning design and rich colour fluctuation are of import criterions for them which are all found in the Pilot Frixion pen.
Rival Analysis
Three companies hold the majority of composing instrument market in Singapore viz. Pilot, Montblanc and Parker. Pilot has been awarded the Platinum Award by the Reader ‘s Digest Asia Trusted Brands consecutively since 2009 over chief rivals, Montblanc and Parker, which won the Gold Award severally ( Reader ‘s Digest Asia, 2011 ) . The Platinum Award means that Pilot is manner in front of the other rivals three times or more as the most sure trade name by consumers in the pen class in Singapore.
Pilot Pen is invariably introducing itself to supply consumer with excellence, quality-driven and surprise merchandises. The ASEAN- Japan Centre ( 2004 ) studies that different trade names besides stimulates demand by establishing a figure of unusual high added-value merchandises that go beyond what people usually think of as authorship instruments. Parker has released pens which “ introduce new composing system ” that will “ revolutionise the expression and feel of seting pen to paper ( PR Newswire, 2011 ) . ” Montblanc ( 2012 ) , on the other manus, has a modern-day line of pens that is defined by its “ ergonomic and futuristic form ” with the combination of “ advanced textures and open uping design ” giving it a smart modern expression. Both rivals have merchandises for all market sections but pens for the center and lower income degrees are priced more expensive than Pilot ‘s, thereby giving Pilot an upper manus in the in-between income degree. With all the invention rivals have, none in Singapore market have introduced an advanced effaceable ballpen pen such as Pilot Frixion.
Merchandise offering
Pilot Frixion simply looks like another ordinary ballpen pen but it has rubber tip eraser that erases flawlessly all of your mistakes utilizing clash with no dust. The engineering that underlies is the thermo-sensitive inkA which allows wipe outing by clash flawlessly and repeatedly without rupturing the composing paper. It comes with different colorss, refillable and needle point tip preciseness for clean lines. With this pen, one may make away with the bluish pen eraser that leaves tonss of eraser dust or shaves behind and likely a tear on the paper ; or the rectification liquid fluid which makes the paper ugly and messy at times.
SWOT Analysis
SWOT Analysis is an indispensable method to look into Pilot Frixion external and internal selling environment.
Strength
Pilot Pen trade name achieved leading position as reflected by the awards it has attained over the old ages. Pilot Pen generates intense viva-voce selling thru relentless publicities and selling activities by tapping the backing of the young person market which propelled Pilot write to the top of the Singapore market. Therefore, Pilot has gained strong trade name acknowledgment, lifting gross revenues that contributes profitableness, and market leading.
Failing
The initial investing spent on the research and development of the advanced effaceable pen is comparatively high. Besides, the cost of production of the effaceable pen is higher than other no name ordinary ballpen pens. Therefore, the Frixion pen is more expensive than other no name ballpen pens but is cheaper compared with branded chief rivals.
Opportunity
There is the chance to present advanced merchandises, suiting the turning consumer demand for composing instruments that are stylish with practical necessities by the clients who are immature and hip such as pupils. New engineering allows the betterment of the lastingness of a pen where the sort of natural stuff, metals and inks used while fabricating these pens makes it more consumer friendly ( Jalan, 2012 ) .
Menace
First, it is a extremely competitory cut-throat industry. Not merely does Pilot Pen need to vie against the inexpensive pens from China, but besides have to turn to competition from established rivals. Another menace is the unstable economic system brought approximately by the Global Financial Crisis which can stifle market demand for all type of merchandises including pens. Furthermore, menaces from the variegation of consumer demands, cybernation has reduced demand for pens and a lessening of figure of pupils caused by a worsening birth rate in Singapore.
Marketing Research and Information
The information gathered from the selling research, through market trial feedbacks, studies and focal point groups will be priceless to us in honing the Frixion pen. Likewise, we will look into the success and efficaciousness of our advertizements with the usage of trade name consciousness research. Last, we will analyze client ‘s mentality towards the rivals to mensurate market reaction. The collected information will hold a positive and profound consequence on the undertaking ‘s success.
Selling Scheme
Vision and Mission
Mission: To supply great quality, advanced, user friendly pen with an low-cost monetary value to let users to show themselves freely.
Vision: To be known in the history of composing instruments for the innovation of the universe ‘s first effaceable ballpen pen.
Marketing Aims
We have set aggressive but accomplishable aims for the first and 2nd twelvemonth of the merchandise ‘s entry in the market.
aˆ? Freshman Aims. We are taking for a 50 % portion of Singapore ‘s pupil market through unit gross revenues volume of 350,000, half of the pupil population.
aˆ? Sophomore Aims. Our sophomore aim is to accomplish 90 % of whole pupil population of Singapore of approx. 700,000 persons.
Fiscal Aims
We will take to bring forth a lower limit of SGD 700,000 in gross revenues gross during the first twelvemonth of the merchandise debut into the market, cautiously forecast if there are no repetition clients. We will implement that the maximal cost of the merchandise histories for 50 % of the gross revenues gross and at the same clip happen ways of take downing them to be more monetary value competitory in the market but non compromising on quality. We will sagely pass on advertisement that will merely give best value possible for the merchandise and supervise its disbursals within the budget allocated.
Target Market and Segmentation
The mark market of Pilot Frixion write involves all people who can compose, take active life styles in school or leisure. The aforesaid clients tend to compose a batch, which makes the pupils the most frequent patronage of Pilot Pen. The mark market is 40 % male and 60 % female as immature female tends to utilize more of our pens that comes with different colorss ; youth age group as these clients are go toing secondary school up to polytechnic which has the most student population ; coming from medium-income households in Singapore as our pen is neither expensive nor inexpensive.
Students use ballpen pens all the clip when taking tests or making place plants, missive or essay authorship, playing Sudoku or crossword mystifiers every bit good as drawing and studies. More frequently than non, in these activities, one makes errors and needs to either scribble it up or crumble the whole piece of paper off. The Frixion write saves all these fusss and defeats normally experienced by the pupils.
Positioning
Using merchandise distinction and invention, we are positioning Pilot Frixion pen as the universe ‘s first effaceable ballpen pen that is trusty, dependable, user-friendly and fashionable for literate users aiming on the pupil population. Our selling will concentrate on the beef uping the trade name equity that Pilot pen has in Singapore because of its advanced designs, dependability, and value of money that differentiates the Frixion pen from rivals.
Broad Overall Strategy
The long-range end of Pilot Frixion pen is to non merely rule the authorship instruments ballpoint pen market, but to besides make an iconic merchandise in the history of great innovations.
We need to place or specify the Pilot Frixion as a new advanced and radical merchandise specially made for pupils in the authorship instruments industry. Therefore, attempt should be put on widening the merchandise consciousness among pupils to develop client trueness. Online advertisement in societal media is an effectual agencies of straight linking with the mark market and at the same clip being cost effectual. Therefore, in the hereafter when pupils become working grownups, they will go on sponsoring the Pilot trade name and there is a set of merchandises suited for them in the waiting.
Strengthening and widening the partnerships with Singaporean educational establishments by go oning the sponsorship of the school ‘s badminton tourney is indispensable. Over the old ages, the ‘Pilot Pen Cup ‘ has successfully established good relationships with pupils ( Swenson & A ; Ongpin, 2005 ) . We have succeeded in act uponing the purchaser behavior harmonizing to our old market research. The company is escalating with its image of a nurturing pupil to be all-around both academically and athleticss. For the launching of Frixion pen, we will utilize this method to better communicate with our mark market and clearly understand consumer perceptual experience towards the trade name. We will besides join forces with some non-profit organisations for charity work, supply scholarships for pupils, thereby carry throughing our duty to the society of our corporate societal duty, in order to heighten the image and enrich the value of whole organisation.
Marketing Mix
Pilot Frixion Pen ‘s selling mix is comprised of the undermentioned attacks to merchandise, monetary value, topographic point and publicity.
Merchandise: The Pilot Frixion pen, including all the characteristics described in the earlier Product Offering subdivision and more, will be sold a guarantee that the ink will non be vanishing on a temperature below the auto-ignition point of paper or else refund or replacing will be accepted. Thereby, implementing tight control measures to closely supervise quality and client satisfaction. We will guarantee that there is ample supply of replacing parts such as ink refills and other types of after-sales service. Pilot ‘s iconic trade name and logo is clearly placed in our pen ‘s packaging every bit good as in all selling runs.
Monetary value: The pen will be introduced at a retail monetary value of SGD 2.20, same monetary value as the current Frixion pen in the market. The pricing strategy is calculated to include the production cost and the cost for research and development of the merchandise. We try to maintain the merchandising monetary value invariable for the old ages in front in line with our purpose to do high-quality merchandise moderately priced.
Topographic point: Our focal point is to retail the Frixion pen at spouse educational establishments ‘ bookstore to do it convenient for pupils to buy. We will besides impart our merchandises at major bookshops and stationary stores thru jobbers and distributers all over Singapore.
Promotion: With the use of all sorts of media, we will foreground the Pilot trade name equity and the merchandise distinction of the Frixion pen. The advertisement bureau will assist us in bring forthing bombilation before and during the merchandise debut, so advertizements is undertaken on a seasonal footing to keep trade name and merchandise consciousness. We are stressing on the partnership with educational establishments in athleticss and faculty members to carry through our corporate societal duty of fostering pupils to be all-around.
Financials
This subdivision will offer a fiscal overview of Frixion pen. We will turn to break-even computation, gross revenues prognosiss, and expense prognosiss.
Breakeven
Our break-even computation is set at gross of $ 2.20 per unit, based on the current monetary value of bing Pilot pen in the market. Variable cost is assumed $ 1.00 per unit: 45 % of the merchandising monetary value, and estimated fixed costs of SGD $ 300,000. Based on these premises, the break-even computation is as follows:
Gross saless Forecast
Based on market research, pupils on mean purchase 3 pens in a twelvemonth. We will number on repetition clients. With this information on manus, we are be aftering to sell 1.05 million units from the premise that 50 % of the pupil population of Singapore ( 350,000 ) . For the 2nd twelvemonth, we are be aftering to capture 90 % of the pupil population in Singapore of about 700,000 which has possible gross revenues of 1.89 million units for norm of 3 pens purchased by a pupil each twelvemonth.
Expenses Forecast
The selling disbursals for marketing research are budgeted extremely in the first twelvemonth to garner client feedback thru polls and studies needed for doing betterments and look into if the program is effectual. Internal selling section fund has been set aside for a fixed sum each twelvemonth. We besides allocated a large part of the budget to advertisement so more money is spent in the first twelvemonth asA a agency for doing visibleness for thisA new merchandise and it will diminish in theA 2nd twelvemonth but seasonal advertizement is made during the start of the school twelvemonth.
For advertizement, the biggest part goes to sponsorship of an educational establishment ‘s athleticss tourneies and academic research. This method is effectual for Pilot ‘s other merchandise line that propelled the trade name to being on top of the Singapore market. The remainder are famous person indorsements, Television advertizements, vehicle wrap advertisement, hoardings, on-line advertisement and others.
Control Procedure
The direction will detect the advancement of the selling program by supervising client feedback through polls and studies and do accommodations harmonizing to the consequences of the feedback. We will besides compare the projections from marketing program to the existent gross revenues from the mark market to see if any alterations need to be made. We will closely supervise the selling budget used for advertisement, market research surveies and internal section costs to minimise disbursement and maximise profitableness. Last, we will analyze the mark market portion per centum to see if it surpass or fall short of outlooks and rectify as needed.
Eventuality Plan
Below are the redresss to some possible contingencies. These will enable us to respond really rapidly to rectify any jobs that may happen.
If the client feedback shows that our selling runs is non well-liked by the populace, it should be replaced instantly.
If gross revenues are down for the mark market, we need to carry on more market research to grok why the mark audience is non reacting to the selling. If the original mark market was inaccurate, we will alter to a new mark market based on gross revenues informations gathered.
If the selling disbursals exceeded the budget allocated, we will analyze it and happen out precisely where disbursement increases come from and see if it is necessary or non.
