Analysis and strategies tablet market in France

STRATEGIC MARKETING Professor NGAYO FOTSO

Estelle BOISSART, Charles GUERIN, Woojin KIM, Garance COUVRY Class 13 IT

Year 2014-2015

Analysis and Strategies: Tablet Market in France

Quantitative assessment, Qualitative assessment, Segmenting, Targeting and Marketing mix

STRATEGIC MARKETING Professor NGAYO FOTSO

Estelle BOISSART, Charles GUERIN, Woojin KIM, Garance COUVRY Class 13 IT

Year 2014-2015

Table of Contents

I. Quantitative Assessment ............................................. 1 1. Market Potential ............................................................................... 1 2. Market Size ...................................................................................... 1 3. Growth Rate .................................................................................... 1 4. Market Coverage ............................................................................... 1 5. Market Forecasting ............................................................................. 1

II. Qualitative Assessment .............................................. 2 1. Macro Environment Analysis .................................................................. 2 2. Opportunity & Threat Assessment ........................................................... 4 3. Micro Environment Analysis .................................................................. 5

III. Segmentation & Targeting .......................................... 8 1. Segmentation ................................................................................... 8 2. Targeting ........................................................................................ 8

IV. Marketing Mix ......................................................... 9 1. Competing with product ...................................................................... 9 2. Product .......................................................................................... 9 3. Place ........................................................................................... 11 4. Price ............................................................................................ 12 5. Promotion ..................................................................................... 13

Appendix .................................................................. 15

Reference ................................................................. 17

STRATEGIC MARKETING Analysis and Strategies: Tablet Market in France

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I. Quantitative Assessment

1. Market Potential

The market potential of tablet is 6,877,998,512€ in value and 24,564,310 units in volume on an annual basis. (computation in Appendix)

2. Market Size

Market size is based on sales volume through all retail outlets and direct sales to consumers, businesses and other organisations. The market size of tablet in France in volume is 6,200,000 units in 2013. France is the second biggest market, which is following Germany, in Europe and the 10th largest market in the world. (computation in Appendix)

3. Growth Rate

The French tablet market represents a compound annual growth rate (CAGR) of 63% (in value) between 2010 and 2014. Market consumption volume is forecast to increase with a CAGR of 102.1% (in volume) between 2010 and 2014, to reach a total of 7.5 million tablets in 2014 generating 1,824.6 million euros. We can say that the market could be considered as an introduction phase and this market would have further development in future. (computation in Appendix)

4. Market Coverage

According to our calculation, only 25.24% of the market is covered today, which means that the market is not even half covered yet. In turn, there is still much room to be developed in this market. As the market is growing rapdly and only a quarter of market is covered, it could be interesting for a new company to enter the market. (computation in Appendix)

5. Market Forecasting

Under the assumption that the annual growth rate stays the same as that in 2014 (CAGR of 63% in value), the market size in value is expected to be reach 14,703 million euros in 2018. (computation in Appendix) Yet, the result does not properly reflect the reality because the performance of the market is forecast to decelerate as the market is moving from an introduction phase to a maturity phase, with an anticipated CAGR of 18.85% of the five-year period 2014-2018, which is expected to drive the market value of 14,703,579 euros in 2018.


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It is clear that the market would be more covered in 2018 than now but will remain still potential. Besides the market is anticipated to grow steadily by 2018 without a decline.

II. Qualitative Assessment

1. Macro Environment Analysis

The macro environment analysis contains the political, economic, sociological, legal, ecological, technological aspects. 1) Political

The plan “Numerical France 2020” implemented in 2012 by the minister of the numerical industry, economy and energy, Eric Besson, has several main objectives and most of them are already in place.

The first one is enable all French people to access internet, another is develop the 4G, the third one is to increase the production and supply of numeric devices, and the last one is to diversify the numeric usages and services in the companies but also at School.

This French political environment seriously affects, in a positive way, the market of tablets, as more and

more persons will have a better access to the Internet, and tablets will be used in school as an educational tool. 2) Economic

The French GDP was 2 060,6 billions euros and its growth rate was 0,4% in 2014, which gives France the 5th world power position. On the other hand, there is a high rate of unemployment, 10.1% and the legal working framework is 35 hours a week, which is constraining. The French inflation is 0,5%.

In 2011 the average income was €2130 per month against a world average of €682 per month. Furthermore, it exists some inequalities in the distribution of income in France. Indeed, the French middle class represents 50% of the French population (revenues between €2773 and €4890 for a couple with a child) and 20% of the French population belong to the affluent class (revenues above €4890 for a couple with a child). On the contrary, 30% of the population considers itself modest with revenues for a couple with a child below €2773.

Nevertheless, the French market, with 70% of its people with monthly revenues above 2773 euros, is a great opportunity for the tablet business.

From an overall perspective, the economical aspect of France is still quite good for a business, even if the

unemployment and inflation rates are increasing.


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3) Sociological

The French population growth rate in 2014 is 0,4% the slowest since 2000. The earning capacity of French people decreased of €1500 (4%) since 2009, this can be a potential threat for the business considering the high price of tablets.

Another important thing to mention is that the way French people consume is changing. For instance, 60% of the French population bought a second hand product during the last 12 months. This is a threat for all businesses and for the tablet market as the channels are evolving and a new market is being created.

In addition, the health and ecological consciousness is becoming increasingly important in France. Effectively 30% of the French population wants to consume less but better, meaning they prefer a product that last, a product safe for the health and that respects the environment. This conscious can represent a threat for the tablet market, as people will buy new tablets less often.

French people are becoming more and more highly interested in technologies. Effectively, 41.2 billions French are Internet users and 26.2 billions are smartphones users. But the budget for high tech equipment has decreased by 25% in 2014, even if it remains quite high (380 euros per year). However, tablets are the only equipment that knows an increase by 2% in the purchases intentions.

The evolution of the media’s environment into an interactive environment can be an explanation of people’s craze about tablets. The term interactive media’s environment is used to talk about a method of communication in which the output from the media comes from the input of the users Effectively, nowadays publics can vote and discuss in real time on what is happening on TV. And the use of tablets is a convenient way to do all these things.

To sum up, even if some components of the sociological aspect of France for tablets are threatening, they can always be handled by adapting a new and thoughtful strategy. Overall the sociological segment represents an opportunity for the tablet business. Effectively, tablet is a device that follows the evolution of the sociological environment. 4) Legal

Tablet devices are fairly new and explosively popular, even within government agencies, much of the laws and regulations in place are in favor of the devices. However, l'Agence Fédérale Américaine de l'Aviation Civile in France holds regulations that are not in favor of the tablet. Current regulations state that airline passengers are not allowed to use tablets or other electronic devices below 10,000 feet. In recent months, the FAA has investigated this regulation and will soon make new recommendations, taking into consideration that many pilots use tablet devices in the cockpit.

Modern tablet devices as we know them have only been around for four years, and aside from the legal issues between manufacturers, there has not been a significant amount of political or legal regulation toward the devices. As tablets continue to evolve and become more assimilated into society, it will be interesting to note if regulations start to materialize. However, it is noticeable that most of regulations are in favor of tablet businesses.


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5) Ecological

Tablets contain a toxic metal, which may engender damaging impact on the environment. Effectively these compounds are highly polluting during the mineral extraction, processing, manufacturing, and end of the tablets' life.

In addition, The Waste Electrical and Electronic Equipment Directive (WEEE Directive) has now been transposed in the national laws of all member countries of the European Union, including France. Moreover, the government and the European Union foster companies to invest more in Research and Development to find alternative raw materials, which do not pollute the environment.

This could appear as a threat in the short term, because a sustainable strategy may cost more. However, a

company that as a sustainable approach may be well perceived by the customers, as it suits the new ecologically friendly trend. 6) Technological

Today's tablets use capacitive touchscreens with multi-touch, unlike earlier stylus-driven resistive

touchscreen devices. After 2007 with the access to capacitive screens and the success of the iPhone, multi-touch and other natural user interface features, as well as flash memory solid state storage and "instant on" warm-booting; external USB and Bluetooth keyboards defined tablets.

Since a number of new technologies are expected to come out in future, tablet market looks

promising in terms of development of new features.

2. Opportunity & Threat Assessment

Opportunities Threats

• Global government’s support for the supply and use of tablets

• Broad middle class • High interest in technologies • Interactive media’s environment • Laws are in favor of technology in general

• High unemployment due to restricted legal

work framework • Decreased earning capacity • Development of 2nd hand market • Increased ecological consciousness but

negative ecological impact of tablet’s components

• Government’s intervention with ecological regulations


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3. Micro Environment Analysis

1) Suppliers

Foxconn Technology is a Taiwanese industrial group specialized in the manufacturing of electronic product. Foxconn Technology is one of the firms that generate the biggest turnover in China and it is classified in the top 10 first in Taiwan. It supplies electronic processors and components to world-famous companies such as Apple, Technicolor in France, Blackberry in Canada or Sony in Japan. Foxconn is a very powerful manufacturer, it can be difficult for a company to operates control on it, and almost impossible to negotiate the prices.

Pegatron is another Taiwanese electronics manufacturing company, main manufacturer of the iPad for Apple. They are implanted all over the world (in the United-States, Mexico, Japan, Brazil, Czech, China and Taiwan). Due to their various locations, they can answer to the needs and wants of their clients as fast as possible. Moreover it could be interesting for a company to choose this manufacturer because it tends to develop a green policy and tries to respond to the international norms. 2) Marketing Intermediaries

Resellers: There are many different distribution institutions selling tablets in France. Some brands such as Apple

distribute their products including tablets in their own store (Apple store). So if a new company wants to sell its product it can do it through its own shops.

Other distributors such as technology-specialized stores including la Fnac, Darty and Boulanger sell tablets from other competitors, then a company who wants to come into the market have to be present where the others are.

However, according to the survey we conducted 40.5% of the people prefer to buy their tablet in a technology-specialized store, against 32% who want to buy their tablet in a brand shop, and 27.5% on the Internet.


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Physical distribution firms: ACS Trans is a company that can transport the product all over the French territory safely and rapidly.

Furthermore, the distribution firm tries to reduce its impact on the environment. The client pays for their impact on the environment, thus it could be a good thing for a company that wants to develop the ecological aspect of the product, which is highly demanded.

Marketing Services Agencies: Marketing service agencies such as advertising companies can help to promote their products and increase

brand awareness. Advertising companies can contribute to a large extent to sales as they take care of all the marketing strategies associated with the product.

Financial Intermediaries: The companies, which sell tablets, may need financial aid from financial intermediaries. A bank is a type

of intermediary that could be used by these companies. Group Société Général and Group BNP Paribas are examples of financial intermediaries that a company entering the tablet market could use.

3) Competitors

Apple: This is the main competitor on the tablets market with 33.8% of market share. Apple is very competitive because it innovates a lot and they succeed to catch customers and to keep it. Moreover 65.14% of the people we surveyed said this was the main brand they knew.

Samsung : This is one of the most famous companies in France with a market share at around 18.8%.

Samsung only sells its product in a large distribution store. The company has the capacity to produce high quality products. This company is really ambitious and wants to reach 20% of market share for the year-end 2015. It is the second most well known brand with 23.1% of the respondents.

Amazon: The Company has a market share of 7.6%. It began to sell a small tablet to read books (Kindle)

and it succeeded in developing the product and created a real tablet with a WIFI connection and various applications.

Lenovo: Lenovo is a new competitor in the market. Lenovo bought Dell and produces efficient tablets (4.4%

of the market share). Lenovo succeeded in acquiring a 4.4 % market share really fast so their future development will be important.

Others: 30.3% of the market share is held by a dozen of companies (Google, Microsoft, Sony, Toshiba,

Blackberry, HP, Motorola, Asus). Many companies have not a high market share because tablets sales are marginal according to their sales. Microsoft, Google or Sony have the biggest market shares of this group, but they have some difficulties with their products. Microsoft is however the third most well known brand, with 16.06% of the respondents.


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4) Publics

Citizen-Action Publics: ADEIC - Association de défense, d'éducation et d'information du consommateur

It is more a legal perspective and the customers to have information, legal advices, and assistance during pursuits.

UFC-Que Choisir - Union Fédérale des Consommateurs This organization gives customers tools to choose their products thanks to comparative analysis. They test the product and then give remarks and advices to the customers. They have a special rubric concerning electronic devices and particularly tablets. It is important to take these associations seriously as it can be a way to gain or lose customers.

Media Publics: Magazines: digital world; 01net

Blogs: It exists a lot of blogs for « tablets lovers » in France. Here is a non-exhaustive list of some of them: The first blog, “Ilovetablets” provides comparatives, advices, and a selection of accessories. It also

enables its members to exchange on a forum.

33.8%

18.8% 5.1%

4.4% 7.6%

30.3%

MARKET SHARE TABLETS 2013

Apple

Samsung

Asus

Lenovo

Amazon

Others


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The second one, “tablettestore”, permits the customer to select a tablet adapted to his preferences. The customer can select the different features wanted and the blog analyzes the data to then tell him which tablet will best fit. The plus of this site/blog is that you can buy your tablet on the same site.

This blog also provides general information about tablets, a range of accessories, and news about tablets. The last one “tablettechinoise” is specialized in low cost tablets. Blogs and forums are important and influence the customers as they enable them to be more informed and

aware of the different brands and their features. Most of the customers want to know the opinion and judgments of users before making the purchase. Effectively 90% of Internet users visit forums and blogs. Being aware of these blogs and make them talk about your brand in a good way is crucial for the tablet business. 5) Customers

People can buy a tablet for several reasons: first, a tablet might be used to play video game; this is

particularly true for the youngsters. Then, people could buy a tablet for travel purposes. Finally, some people purchase a tablet because they want to use Internet this is the case of elderly people. People expect a tablet to have a good battery because they want to work, play video game or whatever without having to load the tablet every hour. They use a tablet anytime, in the classroom for students, at the office for employees or executives, and at home for any reasons.

III. Segmentation & Targeting

1. Segmentation

We noticed 4 different segments in the market for tablets based on their common characteristics. We use 2 criteria to divide the market: the age and the earning capacity.

The first segment is children between 5 and 18 years. Children are financially dependent on their parents. Children only play video game on tablets or use Internet for social networks.

Secondly, there is the segment of young people between 18 and 28 years old and the majority them are students. They personally buy their tablet, because they begin to earn money and they don’t want to rely on their parents anymore. They use their tablet to take notes and work for their studies, but there is also a leisure aspect with the games, applications, and the access to Internet…

Then, adults between 28 and 62 years old compose the third segment. This category buys a tablet as a tool for work, for travel purposes, and for an easy access to the Internet.

Finally, there is the segment of retired people, aged above 62 years. This segment use tablets to read books, consult emails, have an easy access to the Internet…

2. Targeting

We decided to target the 2nd segment of the market; young people between 18 and 28 years old.


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IV. Marketing Mix

1. Competing with Product Strategy “Best cost provider”

Combining low-cost and differentiation

The “Best cost provider strategy” is to give customers more value for the money by combining an emphasis on low cost with an emphasis on upscale differentiation.

The objective is to create superior value by meeting customer expectation on product attributes and beating their price expectations. The key is to match close competitors, such as Apple and Microsoft, on key product attributes and beat them on cost.

2. Product

According to our target, which is relatively young (ages between 18-28), we concluded that the product should contain the following three main features: Education, Entertainment and Communication.

1) Education One of the biggest differentiations on the quality of the product is its accessibility to academic materials.

Since there are more and more young people take online courses such Coursera, our product provides easy accesses and friendly environment for those who take courses on the Internet, containing some necessary programs and applications for those materials. Actually, problems in compatibility between some web

Education

Entertainment

Communication


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browsers or utilities (such as Adobe Reader) exist in some other products like Apple. Hence, in order to solve these problems, we also need to make our product more compatible for the sake of students.

2) Entertainment

Another important feature is about entertainment purposes. Considering that the main purpose and uses of

tablets is not to create contents but rather to consume contents, people increasingly tend to use tablets to read books, watch films or use the Internet. In addition, young users targeted, are inclined to use more frequently their tablet for these entertainment purposes.

Therefore the product will provide the high quality of experience for video consumers through enhancing both hardware (e.g. high quality graphic card and HD screen) and software.

Also we must keep in mind that students are not financially able to buy a number of electronic devices for

different purposes. Thus, our product will provide reader-friendly e-book and should also be lighter in terms of weight.

Lastly, with regards to the Internet, our product may contain 4G access and Wifi at a minimum price,

unlike other competitors. Instead, we will save our costs by lessening the storage. Yet, this would not be a big disadvantage for young users because there is a trend that young people are becoming more familiar with cloud computing instead of using hard disk storage for many reasons, such as security and compatibility.

3) Communication Our product will be an ideal device for those who communicate online on a daily basis using social

networks. First of all, as mentioned above, the Wifi and 3G will be easily available. It enables online

Development in related Software & Hardware

Internet

e-book film


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(virtual) meeting anywhere and at anytime using our product. For example, the product may contain virtual keyboards to make easy to carry around.

<Value proposition>

3. Price

To come up with the appropriate price, we surveyed a lot of people aged between 18 and 28 years old. First of all, the results of the survey underlined that people who already bought a tablet are willing to pay

a fair price of 370€. These same persons also estimate that on average a high price would be 657€ and a low price would be 190€. As for non-users, a fair price would be 245€, a high price would be 470€, a low price would be 150€.

To set a price, more than considering the willingness to pay of potential customers, the company has to take into account the manufacturing cost for a tablet. According to a newspaper, the manufacturing cost of one tablet is on average 130€.

According to all the information above, the company should set a price at 230€. It is both under the fair price people are willing to pay so everyone could afford it, and still above low prices at which customers question the quality of the product. Moreover, it is under the prices set by competitors. For instance, prices

• Optimal initial setting for students • Optimal screen for book readers and movie watchers • No compatibility problems for PDF, online video lectures

• Excellent graphic card for high-quality games

Specialisation in education, entertainment

• Wireless virtual keyboard • Light weight of a device (294g) * iPad mini: 308g • Long durable battery life (22 hours) * iPad mini: 10h

Portability

• Exclusive features for online meeting • Fast 4G access • Social network-friendly operating system (OS)

Ease of communication


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of Apple’s iPads are between 249€ (iPad mini) and 705€ (iPad Air 2 128go). It is then coherent with the « best cost provider strategy ».

For each tablets sold, the company would have a margin of 100€ which is still relatively high. This margin can be either saved or used to invest in R&D and improve the features of the tablets.

In the positioning mapping below, we can clearly see that in terms of quality Apple and Microsoft are the

best, however they have high prices. Our company’s product would be at the same level of quality, but the prices would be much lower. The customer would benefit from the best value.

* Star is our product 4. Place

The marketing channel strategy is a system of marketing institutions that promotes the physical flow of goods

and services, along with ownership title, from producers to consumer or business users. It has a non-negligible importance in the marketing mix.

1) Channel strategy & objectives

We want moderate market coverage and a not so distant relationship with our clients. Moreover we wish to win a sustainable competitive advantage in reducing distribution costs. Effectively following the “Best cost provider strategy”, we should carefully analyze each channel alternatives.

2) Evaluate channel alternatives


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It is difficult to reach all the targeted customers without intermediaries. In addition, intermediaries permit to solve the problem of lack of retailing know-how that the company may have. However intermediaries are directly responsible for relationships with the customers company do not serve directly and if channel intermediaries offer poor standards of service, customer satisfaction will decrease and this may impact the company’s own reputation.

A short distribution channel (no intermediaries) gives the producer a better control over the promotion

of its products, however the costs are higher. By contrast, a long distribution channel (lots of intermediaries) reduces the producer control over the promotion of its products but the costs are lowered. In the logic of the “best cost provider strategy”, a short distribution channel can’t suit the company because of the high costs involved. But, it is important to bear in mind that tablet is a complex, technological product with after sale services that may be required. As a result, a too long distribution channel might be perceived as inadequate.

The distribution intensity is the number of intermediaries involved in the distribution process.

Intensive distribution is not a good approach as it is used for convenience products. Exclusive distribution isn’t the solution because it is too restrictive (high costs, low reach of customers…). For the tablet, a selective distribution might be a good option. The selective distribution means that the producer relies on a few intermediaries to carry its products. This type of distribution is used for shopping products like tablets (meaning the customer have to do research and comparisons before the purchase). It is the best option when moderate market coverage is wanted and moderate to high competition is present on the market. In addition 40.5% of the targeted customers surveyed answered that they prefer to buy their tablet in a technology-specialized store.

The company should sell its tablets through the Internet. Effectively, 27.5% of the respondents (both current users and non users) aged between 18-28 answered that they would buy a tablet on the Internet. Yet the company has the choice between two options: using an existing service or create its own online retail shop. Using an existing service like Amazon or Fnac.com is not free. The company pays fees to list its product and pays a “Final value fee” (represented by a percentage taken of the sale price). On the other hand, buying open source online shop software in order to have its own online retail shop might be a good option. Effectively, the initial costs are quite low, and the company benefits from the entire profit. It is also a way to have a better control over the marketing of its products, as the company can influence sales through design, discounts, after sales services… The cons of this tactic are the high maintenance fees on the long term and the difficulty to attract customers at the beginning. However the pros outweigh the cons.

3) The channel structure:

The company must choose a multiple channels structure to have the best possible reach of its targeted customers. A combination of sales in a technology-specialized store and on the Internet is the best option.

It is then important to sell the tablets in a technology-specialized store like Fnac. This channel is represented as follow:


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But it is also essential that the company can sell its tablets trough the Internet by using is own

platform. The company can create its own retail shop like Apple store. Effectively 32% of the surveyed persons

answered that they prefer to buy their tablet from a brand shop. But as the costs are significantly higher, the company may take several years before implementing its own store.

5. Promotion

Promotion enables a company to inform potential consumers about its product. In the case of a new company the promotion is a way to increase brand awareness. In order to have the desired impact on the targeted customers, the promotion must be adequate.

1) Pre-launch promotion:

Pre-launch promotion is the way for a company to enter the mind of potential customers before

actually being present on the market. The best way to reach young people is through media advertising such commercials on social networks. Effectively it permits the company to reach lots of potential customers, as people from 18 to 28 years old are actively present on social networks (91% of 18-28 use a social network). Another advantage of using social networks, especially Facebook, is that the company can decide that its advertisement is only visible for the actual target. The last and main point is that the costs engendered by an advertisement on the social networks are quite low. This is particularly important when following the “best cost provider strategy”.

With an efficient and effective pre-launch promotion, the company does not need further advertisement at the launch of the product. A reminder on social networks might be sufficient.

2) After launch promotion:

After launch promotion is necessary in order to attract more target consumers – people between 18

and 28). As we know, there are several types of promotions available: Advertising, Sales Promotion, Personal Selling, Public Relations (PR), Direct Marketing. We chose to conduct sales promotion using coupons and PR for after launch promotion, instead of aggressive advertising on mass media, which costs more.

• Sales promotion Sales promotion could be effective when it comes to young people for a couple of reasons. First, we

decided to use coupons which offers reduction. We found that young people, especially students, are

Producer Retailer Consumers


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sensitive to prices because they are not financially stable. In addition to reduction, we will adopt a concept of “viral marketing’’ through online social media. For instance, people who want to have coupons need to click ‘I like’ on our Facebook page. Then it could bring win-win situation for both consumers and the company.

• Public relation (PR)

Young people tend to be more active in participating in PR promotions. In order to capitalise our

budget, a good public relation could raise strong attention with low costs. Furthermore, it is a good opportunity to enhance our brand image.

We would like to suggest a public relation campaign which will conduct a social experiment on the use of tablet PCs. Since our product is well developed and focused on some important features for students, the aim of the PR campaign is to show how fast our product is on the Internet and how comfortable and easy to take online courses, in comparison with other competitors’ products.


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Appendix


1. Market Potential

Assumptions:

Let us assume that:

• The geographic boundary is France. • The Products are consumed at an individual level. • The segment, which consumes the products, is :

o males and females between the ages of 15 and 75. o with 44,662,328 potential buyers in France.

• The average ownership of tablet per capita for those who own a tablet (or more than one tablets) is 1.2 units.

• The product life cycle is 2.2 years. • The average price of a tablet is 280€.

• The number of potential buyers : o number of French population – (people under 15 years + people over 75 years) o => 63,928,608 – (12,519,099 + 5,878,181) =44,662,328 o

• The average annual consumption o = average ownership of tablet per capita / life cycle of a tablet o = >1.2/2.2 = 0.55

• The market potential (MP) in value

o = number of potential buyers x average price x average annual consumption o => 44,662,328 x 280 x 0.55 = 6,877,998,512 (6,9 bn €)

• The MP in volume o = number of potential buyers x average annual consumption o => 44,662,328 x 0.55 = 24,564,310 (24 M Units)

2. Market Size

Market size by volume = the sum of units sold by all firms in the market Market size by value = the total sales (= quantity sold x price of each firm) in the market


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However, in order to be more precise, we used a secondary data given by an article.

3. Growth Rate

Based on compound annual growth rate (CAGR) method, we found the data below: Market size by value in 2010 (= beginning value): 258.5 million € Market size by value in 2014 (= ending value): 1824.6 million € CAGR = [(ending value ÷ start value) (1 ÷ number of year) − 1] × 100 = [1824.6 ÷ 285.5) 1/4 − 1] × 100 = 63

4. Market Coverage

Market coverage = (market sizing ÷ market potential) x 100 = (6,200,000 ÷ 24,564,310) x 100 = 25.2 %

5. Market Forecasting

First we tried a time series: weighted moving average method to forecast the sales in 2014 based on the sales in the past between 2010 and 2013. However, it is found that the sales in future cannot outnumber the previous year with this method. For example:

Year Tablets sold Weight

2010 450,000 0

2011 1,450,000 10%

2012 3,600,000 30%

2013 6,200,000 60% The expected sales in volume in 2014: [(6,400,000×0.6) + (3,600,000×0.3) + (1,450,000×0.1)] × 3 = 4,945,000 Therefore, the result by this method shows that the sales would decrease in 2014 compared to the previous year. However, we can say that the result is not logical especially when the growth rate is positive. So we decided to use a CAGR in order to get a more precise result. According to a study, it would reach 72 millions tablets sold in the United-States in 2018 The total of tablets sold in the United-States ÷ the American population

72,000,000 ÷ 316,100,000 = 0,23 tablets per capita And then we multiply the result by the French population 63,928,608 × 0,23 = 14,703,579 tablets in France And if we calculate the CAGR of it: [(Ending value ÷ beginning value) (1 ÷ number of year) − 1] × 100 [(14,703,579 ÷ 6,200,000) (1 ÷ 5) − 1] × 100 = 18,85%


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Reference


1. Market Potential

http://tabtimes.com/tablet-refresh-cycles-12291/ http://store.mintel.com/pcs-tablets-and-ereaders-in-france-2014-market-sizes http://www.datamonitor.com/store/Product/france_tablet_sales?productid=MLIP1485-0003 http://www.tablette-tactile.net/etudes/tablette-marche-146771/ http://www.insee.fr/fr/themes/detail.asp?ref_id=bilan-demo&page=donnees-detaillees/bilan-demo/pop_age2.htm

2. Market Size http://www.marketwatch.com/story/global-tablet-market-report-2013-2018-2014-05-15 http://www.zdnet.fr/actualites/chiffres-cles-le-marche-des-tablettes-39789571.htm

3. Growth Rate

http://www.datamonitor.com/store/Product/france_tablet_sales?productid=MLIP1485-0003 http://www.zdnet.fr/actualites/chiffres-cles-le-marche-des-tablettes-39789571.htm

II. Qualitative Assessment 2. Political http://www.economie.gouv.fr/france-numerique-2020/france-numerique-2020-0 3. Economic http://www.lesechos.fr/economie-france/index.php http://www.coe-rexecode.fr/public/Indicateurs-et-Graphiques/La-conjoncture-en-10-graphiques/La-conjoncture-economique-francaise-en-10-graphiques http://www.inegalites.fr/spip.php?article1054 http://france-inflation.com/index.php


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4. Sociological http://tempsreel.nouvelobs.com/societe/20140114.AFP7501/la-france-comptait-66-millions-d-habitants-au-1er-janvier-2014.html http://www.lesechos.fr/economie-france/conjoncture/0203802559919-pouvoir-dachat-un-recul-de-4-depuis-2009-selon-60-millions-de-consommateurs-1046183.php http://lexpansion.lexpress.fr/actualite-economique/10-chiffres-cles-sur-les-salaires-et-l-emploi-en-france_1358410.html http://www.challenges.fr/economie/20140912.CHA7669/qui-sont-les-francais-de-la-classe-moyenne.html http://lentreprise.lexpress.fr/marketing-vente/marketing-les-5-tendances-a-suivre-en-2013_1522222.html http://www.blogduwebmarketeur.fr/2-factory-utilisateurs-internet-france-2013/ http://www.01net.com/editorial/614578/8-francais-sur-10-sont-connectes-a-internet/ http://www.lesechos.fr/tech-medias/hightech/0203954749019-technologies-le-budget-annuel-des-francais-en-baisse-de-25-1066558.php http://www.investopedia.com/terms/i/interactive-media.asp

5. Technological http://appleinsider.com/articles/10/01/15/the_inside_track_on_apples_tablet_a_history_of_tablet_computing/page/3 http://www.globalintelligence.com/insights/all/10-transformative-technology-trends-for-2011-2012 6. Ecological http://www.e-cycle.com/the-e-waste-impact-of-mobile-tablet-device-programs-in-schools/ http://www.rodalenews.com/chemicals-toys http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0019 7. Legal Albanesius, C. (2012). German court rejects Apple bid to ban Samsung Galaxy Tab 10.1N. PC Magazine. http://web.ebscohost.com.library2.ramapo.edu:2048/ehost/detail?sid=6d33d9e1-f621-4045-9738-6e529525f06c%40sessionmgr11&vid=1&hid=12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=aph&AN=82033418. Daigneau, E. (2011). Tablets: Government’s newest tool. Governing. Retrieved from http://www.governing.com/topics/technology/Tablets-Governments-Newest-Tool.html.


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Evans, B. (2012). How many tablets are in the USA? Does it matter? Forbes. Retrieved from http://www.forbes.com/sites/benedictevans/2012/10/02/how-many-tablets-are-in-the-usa-and-does-it-matter/. Freed, J. (2012). FAA to study use of electronics on planes. Associated Press. Retrieved from http://news.yahoo.com/faa-study-electronics-planes-194606800–finance.html. Genachowski, J. (2011). Genachowski remarks on plans to create 100,000 jobs. Speech presented in Jeffersonville, Indiana. Retrieved from http://www.fcc.gov/document/genachowski-remarks-plan-create-100000-jobs. Keller, J. (2008). Rugged tablet computers make their move in military logistics applications. Military & Aerospace Electronics. ProQuest Central. Ribeiro, J. (2013). Apple vs. Samsung, round 2 to proceed in California court. PC World. Retrieved from http://www.pcworld.com/article/2030475/apple-vs-samsung-round-2-to-proceed-in-california-court.html. Rosenworcel, J. (2012). White Spaces and Spectrum Sharing for Wireless Broadband Presentation. Federal Communications Commission. Retrieved from http://www.fcc.gov/document/commissioner-rosenworcel-statement-white-spaces-presentation.

II. Qualitative Assessment Physical distribution firms http://www.acstrans.fr/ged-transport-routier.aspx Publics http://www.digitalworldbusiness.fr http://www.01net.com/magazines/01net/ http://www.ilovetablette.com http://www.tablette-store.com/blog/ http://tablette-chinoise.org http://www.e-commercons.com/les-avis-consommateurs-un-element-central-dans-lacte-dachat/


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IV. Marketing Mix Price http://www.ibtimes.com/it-costs-just-160-make-google-nexus-how-high-end-devices-help-tablet-manufacturers-make-neat-margins Place http://education-portal.com/academy/lesson/marketing-channel-definition-and-function-in-the-marketplace.html#lesson http://www.ecorner.com.au/FAQs-Questions-Ideas-Centre/Costs-Issues-Starting-An-eCommerce-Online-Business#.VI63_EsU2Qt Promotion http://www.blogdumoderateur.com/chiffres-2014-mobile-internet-medias-sociaux/

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