EXECUTIVE SUMMARY

Medusa specializes in dealing with high-end computers and related accessories. It is the first of its kind in Sri Lanka where a dedicated team of professionals work round the clock to provide the best customized high performance machines to the customers. While we have a variety of types of high performance computers, our main product or service is the gaming sector. Where we cater to the gaming population of the country.

Our main objective is product quality leadership in the market and to become the leading IT retailer in Sri Lanka

Medusas sole mission is to cater to all the needs of the consumer with the state of the art fully personalized Gaming Laptops and unmatched customer service. We offer the best of the best when it comes to interior and exterior hardware equipment with the help of our partners NVidia, Intel and SanDisk distributing the latest internationally released hardware.We operate as a Niche company catering for a selected group of individuals in the higher income class as we strive to maintain a high quality end result.Our unique online interface has reduced human interactions and thus has the benefit of lesser errors and serves the purpose of giving our customers advice on matching up various components. Our customer has the option of getting his/her dream gaming laptop from the comfort of his home or by visiting one of our physical stores. The online interface also allows us to only order a product from the manufacturers when necessary and does not require us to block huge sums of money and spend even more on security and insurance.

2

TABLE OF CONTENTEXECUTIVE SUMMARY2MICRO & MACRO ENVIRONMENTAL FACTORS5Micro5Competitors5Customer5Macro5Technological Changes6Political6TARGET MARKETING6MARKET SEGMENTATION6Geographic6Demographic7Psychographic7Behavioral7MARKET POSITIONING7PRODUCT8Core8Actual8Augmented8Branding8Packaging8PRICE9Approximate Price For Our Product Range9New Product Pricing10Product Mix Pricing Strategy10Optional product pricing strategy10CPU Options11Graphic Card options11Storage Options11PLACEMENT STRATEGIES14PROCESS16PEOPLE16PROMOTION17Advertising17Public Relations19Reference:20

MARKET DESCRIPTION

Our Company, Medusa offers a full range of high end customized computers and related accessories with unmatched customer service.

All available market research shows that the gaming industry in Sri Lanka is still at its infancy and as disposable income increases in the country and more people get exposed to computers and the Internet with the government's plan to provide free Wi-Fi, this gaming industry is bound to have an explosive growth and we plan to, by offering unmatched service, capture a major market share.

Because technology is improving all the time and Sri Lankans don't have disposable income to buy new computers regularly, our company will target mainly companies and individuals that are in the gaming industry and also professionals in designing and other fields that need to keep up with new technology to sustain their needs

These individual and companies are highly educated high end professionals and such companies who are in regular touch software and hardware developments in the world.

We will be the pioneers in this chosen field and will set the bar very high with our professionalism, training, expertise and customer support to ensure that not many companies will be able to match our product and service and thereby build a niche market.MICRO & MACRO ENVIRONMENTAL FACTORSMicro

Factors in an organizations immediate area of operations that affect its performance and decision-making freedom.Competitors1. Barclays Computer (pvt) ltd.2. Redline technologiesCustomerSearching for our target market was a challenge as the gaming population of Sri Lanka is a small uprising community, and as we cater for the upper class gamers, affordability was a challenge for most gamers.Macro

The major external and uncontrollable factors that influence an organizations decision making, and affects its performance and strategies.

Technological ChangesWhen new upgrades for hardware and software are released it forces us to upgrade our product and equipment to maintain its innovative and up to date Brand image. This involves the time lag of importing hardware pieces from our partners.PoliticalWith the rise in import taxes the cost of importing our hardware equipment becomes more expensive and this is passed on to the consumer in the form of higher prices.TARGET MARKETINGIt is defined as a particular group of consumers at which a product/service is aimed. By marketing directly to our target market only, we can determine how much our customers are willing to spend and how often they are willing to make our purchases. We also need to keep up with the changing trends in the future. Target market analysis also ensures that the service our company offers will actually be profitable.Our target market includes: Gamers of the upper class Upper class software designers Engineers Upper class database administratorsThey are our target market due to their high usage of computers and they purchase our service due to the satisfaction they gain by high quality gaming experience in the case of gamers and as per the others, they buy our product for the convenience factor. They may have a strong desire to upgrade their status and all they need is a push from our side as marketers to show them what it takes to get our service and why they require it.

MARKET SEGMENTATIONMarket segmentation is dividing a market into distinct groups of buyers who have distinct needs, characteristics or behavior and who might require separate products or marketing mixes.The importance of market segmentation is that it allows us to precisely reach our consumer with specific needs and wants. In the long run, this benefits our company because we are able to use our co-operate resources more effectively and make better strategic marketing decisions.Geographic One of the most urbanized city which is Colombo as its population of gamers are high and it is the main hub for business and has a majority of offices including the WTC, Kandy due to its high population of gamers and prominent private educational institutes with upper class students consists of youngsters involved in gamingDemographic Age group: of 18-50 years of age. Gender: male and female Income: upper class income with professional lifestyle.Psychographic High lifestyle spending patterns as related to our primary research Busy peopleBehavioral People with belief over convenience and having an upgraded life People with good knowledge that our service would bring due satisfaction People who give due importance to their desiresMARKET POSITIONINGMarket positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of target consumers. Thus we marketers plan positions that distinguish our product from competing brands and give us the greatest strategic advantage in our target market.

We have decided to position our service in a High price, High quality arena.How we overcome competitive pressures? Quality assurance of product Promotional strategies High price to set an image in our target market Convenience Reliability facilities Addressing our customer needs and others servicesHigh quality

High quality /High price

High price

PRODUCT

CoreThis is an intangible physical product. It is the benefit of the product, which makes it valuable to the customer. In this case ours would be the convenient high performance customization Meaning its just a matter of selecting the parts and confirming. The difference from the other products similar to this is the totally flexible customization we provide. We have a vast range of available selections where the whole machine is assembled from scratch exactly according to the customer needs with the specific parts the customer selects, provided the selected parts are technically compatible to the machine architecture. In other words, once we are done with a machine there is no product like that available anywhere in the country simply due to our sophisticated customization. ActualIt is the tangible physical product. What the customer is ordering to be assembled and once done the totally customized, computer system. The stylish design, the quality and how cool it looks are few of the main points. AugmentedA nonphysical part of the product, which usually consists of added value to the money spent. In our service what we offer are extended warranty, the after service of parts and the machine for free, free installations and trouble shooting and quick response time for any technical issue. BrandingThe ancient Greek mythology monster, Medusa, inspires our brand. We have come up with a truly meaningful design that symbolizes the, speed, mean look, and the monstrous power Medusa had. Touching a special place in the hearts of gamers. Further, more illustrious depictions of this brand and log are shown in our presentation. Packaging The total exterior of the machine we build is our packaging. Its worth about 10% of the whole investment. The external casing which holds the customized motherboard that appeals to almost any gamer. We call it love at first sight, which justifies the action of a person looking twice at our display machines when they pass our store. This is what defines our product identity, the positive attracted reaction customer gets is one key factor for our success. If the customers require a smaller casing we are able to provide that too. Our packaging also contains extra protection for our customized motherboard with 2 to 4 powerful cooling fans inbuilt to compensate for any generated heat due to the vast processing speeds of our machines. It is also 90% dust proof simply due to the design architecture allowing extended periods of use without having to remove the system to clean the components.

PRICE

Price is the amount of money charged for a product or service. (Kotler, 2007)

Price is arguably the most important part of the seven Ps. This is because price is the only part that takes revenue (i.e. profit) into account. Even organizations that do not exist for profit maximization would put heavy emphasis on price when it comes to creating their business strategy. Since we will be focusing on the very niche market of high-end gaming we will be using a price skimming strategy for our newer products and a product line pricing strategy for our product mix. With this we hope to sustain a feasible income, which will contribute to the continued sustainability of our company, and the hybrid of these two strategies will give our customers not only high quality products with extreme customization but also some degree of flexibility to suit ones budget. Despite catering to a very niche market that would definitely be able to afford our products and would expect prices of this degree, we offer our customers this magnitude of flexibility because our position in the market depends on customization and is one of the main factors that make us stand apart from our competitors. We have established partnerships with the biggest players in the market to obtain the latest released hardware. This Just-In-Time type value chain allows us to maximize profit and minimize our costs drastically.Approximate Price For Our Product Range

Custom Gaming DesktopsCustom Gaming LaptopsProfessional Workstations

Starts at Rs 120,000Starts at Rs 150,000Starts at Rs 200,000

Add Power to your life.For that gamer-on the go.Expandability and future proofing-in one yummy sammich!

However as mentioned earlier we will be focusing on custom gaming

New Product Pricing

Price skimmingOur product is guaranteed to be of highest quality available on the international market and we will be offering a multitude of after sales services to justify the price to our early adopters. As time goes on however, the price of different computer components will reduce in price, thus our prices for older products too will reflect on this. Of course while the cost is indeed placed a higher range, this gives off the feel a luxury good usually has and we are thus operating on the demand and supply graph model usually reserved for such goods.

Product Mix Pricing Strategy

Due to the fact that we are offering convenient customization we will use multiple strategies to price our products.

Product Line pricing The following laptops are the same except for the power of their cores. Using this strategy we attempt to give our customers the choice of choosing the gaming laptop according to their individual needs. Those who want more power will go for the one with greater CPU speeds and those that want the laptops for more casual gaming will go for the cheaper model etc.

Violet VenomPurple PoisonIndigo Ire

Intel Core i7 Intel Core i5 Intel Core i3

RAM 8 GBStorage Capacity 1128 GBGraphics Card Nvidia GeForce GTX 860MScreen Size 15.6 inchesWeight5.29 lbBattery Rundown - Standard Battery4:10 hrs:minRAM 8 GBStorage Capacity 1128 GBGraphics Card Nvidia GeForce GTX 860MScreen Size 15.6 inchesWeight5.29 lbBattery Rundown - Standard Battery4:10 hrs:minRAM 8 GBStorage Capacity 1128 GBGraphics Card Nvidia GeForce GTX 860MScreen Size 15.6 inchesWeight5.29 lbBattery Rundown - Standard Battery4:10 hrs:min

Rs 225,000Rs 200,000Rs 175,000

Optional product pricing strategy

Customers could either build a gaming laptop from scratch or opt to select one of the above pre made builds and add more features to it. The above price is for the base model of each laptop and any optional features and replacements would add to the price. The following would be a few such examplesCPU Options1. Intel Core i7-6820HK processor (+ Rs 15,000)2. Intel Core i7-4710MQ processor (+ Rs 25,000)3. Intel Core i7-4910MQ processor, (+ Rs 35,000)4. Intel Core i7-4940MX processor, (+ Rs 45,000)Graphic Card options1. NVIDIA GeForce GTX 965M with 2GB GDDR5 (+ Rs 15,000)2. NVIDIA GeForce GTX 970M with 3GB GDDR5 (+ Rs 20,000)3. NVIDIA GeForce GTX 980M with 8GB GDDR5 (+ Rs 25,000)4. AMD Radeon R9 M395X with 4GB GDDR5 (+ Rs 30,000)Storage Options1. 256GB PCIe SSD (- Rs 20,000)2. 512GB PCIe SSD (- Rs 12,000)3. 1TB PCIe SSD (No Change since this is default)4. 2TB PCIe SSD (+ Rs 15,000)

The above is just a small example of the customization options we will offer apart from RAMS, OS, extended warranty, color, etc. The price of a base model product will either increase or decrease according to the components that the customer will or will not add. The following is an example of an increased price if a customer opts to get a newer generation graphics card with a higher capacity and two rams.E.g. Violet Venoma

Intel Core i7 6700HQ

RAM 8 GBStorage Capacity (as Tested) 1TBGraphics Card Nvidia GeForce GTX 860M 1GB Screen Size 15.6 inchesWeight5.29 lbStandard Battery- 4:10 hrs:min

Rs 225,000

Violet Venom

Intel Core i7 6700HQ

RAM 8 GB x2Storage Capacity (as Tested) 1TBGraphics Card Nvidia GeForce GTX 965M 2GB Screen Size 15.6 inchesWeight5.29 lbStandard Battery -4:10 hrs:min

Rs 255,000

Financial Statement (forecast)Year

2016201720182019

Sales LKR 11,000,000.00 LKR 13,000,000.00 LKR 22,000,000.00 LKR 26,500,000.00

Cost of sales LKR 7,000,000.00 LKR 8,700,000.00 LKR 16,000,000.00 LKR 19,000,000.00

Gross profit LKR 4,000,000.00 LKR 4,300,000.00 LKR 6,000,000.00 LKR 7,500,000.00

Lifestyle portal sales LKR 15,000.00 LKR 50,000.00 LKR 110,000.00 LKR 180,000.00

Total income LKR 4,015,000.00 LKR 4,350,000.00 LKR 6,110,000.00 LKR 7,680,000.00

Administrative Expenses

Wages LKR 2,880,000.00 LKR 3,000,000.00 LKR 3,600,000.00 LKR 4,000,000.00

Electricity LKR 48,000.00 LKR 50,000.00 LKR 60,000.00 LKR 80,000.00

Maintenance (physical store & website) LKR 25,000.00 LKR 30,000.00 LKR 42,000.00 LKR 55,000.00

Rent LKR 1,200,000.00 LKR 1,300,000.00 LKR 1,400,000.00 LKR 1,650,000.00

Other (fuel, petty cash etc.) LKR 60,000.00 LKR 95,000.00 LKR 130,000.00 LKR 180,000.00

Promotion and Distribution

Logistics LKR 200,000.00 LKR 240,000.00 LKR 290,000.00 LKR 360,000.00

Google AdSense (frequency Investment) LKR 9,000.00 LKR 25,000.00 LKR 32,000.00 LKR 45,000.00

Facebook Ads (frequency Investment) LKR 3,500.00 LKR 15,000.00 LKR 21,000.00 LKR 30,000.00

Launch Expense (1st year) LKR 160,000.00

Other Ads (hitad, etc) LKR 20,000.00 LKR 60,000.00 LKR 80,000.00 LKR 150,000.00

Legal and Taxes LKR 120,000.00 LKR 160,000.00 LKR 240,000.00 LKR 300,000.00

Total Cost LKR 4,725,500.00 LKR 4,975,000.00 LKR 5,895,000.00 LKR 6,850,000.00

Net Profit/Loss LKR (710,500.00) LKR (625,000.00) LKR 215,000.00 LKR 830,000.00

PLACEMENT STRATEGIES

Placement includes company activities that make our service available to our target consumers in the right quantities and locations.As said before the mode of distribution of our service is through online facilities. The online interface allows us to only order our product from the manufacturers when necessary and does not require us to block huge sums of money and spend even more on security and insurance.Therefore our customer-marketing channel is a direct channel (customer gets the product through online service directly) and also the retailer channel (customer gets the product through our retail outlets) where we provide full service retailing.We have decided to locate certain specialty stores to accommodate our customers in Colombo and Kandy as they have the mass population of gamers and as per Colombo it is the main hub for business and has many upper class educational institutes (central business districts is our type of store cluster).We intend to extend our offices to regions like Galle with increasing profit.Therefore our mode of distribution would begin with exclusive distribution to set an image of our service in the society, as it is a high-class product. Thereafter we plan on moving towards selective distribution to test the market

PROCESS

With many products to choose from and many types of promotions, customers do not want to just buy a product. They are driven to buy from a particular company based on the satisfactory experience of doing so. The process on the how the service is delivered to the customer is very important. These are the steps we will take to ensure the customer gets the correct impression.

1. Have well trained staff who communicate clearly so the customer feels that the company is not selling but solving his problem.2. Ensure that buying process is seamless from the time the customer enters and exits the store.3. Tie up with major credit card companies to ensure online purchase if desired. 4. Systems and process again should be to customers satisfaction. Ensure Web pages are fast enough and customer friendly.5. Offer free delivery to Colombo and suburbs.6. Provide excellent after service. Treat customers with consideration and patience.7. Provide reasonable warranty for products sold. PEOPLE

This refers to the people inside and outside of the business who are responsible for every element of the business transactions. A negative effect will drive the customer out. So it is important to have the right people from Managing Director to general staff.

1. Ensure staff are well trained, properly motivated and have the right attitude.2. Make sure that staff coming into contact are appropriately dressed and have good mannerisms3. Carry out checks on the customers who bring the highest revenue and ensure they are well serviced. Get regular feedback from them on how to improve service.4. Ensure good testimonials are publicized tastefully.5. Answer all calls by the 3rd ring. Customers do not want to be waiting and they do not want to be listening to a long list of information about the company while they wait( like some telecom companies). Ensure phone call is answered by a person and transferred to the appropriate person.

PROMOTION

Promotion is the means of raising awareness or promoting the product in this case, service to the target market, being upper class gamers. This also creates Brand loyalty. Most successful companies allocate a larger portion of the expenditure towards the Promotion. The budget for Promotion has been divided between two categories of the Integrated Marketing Communication mix, Advertising Public RelationsAs we are promoting an Exclusive service of high-end personalized computer we are utilizing the Pull strategy to motivate customers to seek for our service through the means of advertising. Our incentive is to build a higher Consumer demand through the following promotional strategies.

Advertising

The American Marketing Association defines Advertising as any paid form of non-personal presentation or promotion of an idea, good or service by an identified sponsor.As were introducing a new service of Personalized Gaming Laptops with state of the art equipment from our partners mainly, NVidia, Intel and SanDisk, catering for the Gaming population across the Colombo District, through the means of Online advertising through our Facebook page and Google Advertisements as this is recognized as the most visited means of communication and reaches the target market successfully.

Public Relations

Public relations involves building a good corporate image, building relations with the firms publics and handling or heading off unfavourable stories or rumours.-Kotler et al.

Public Relations help with gaining exposure to potential customers, we have adapted this strategy by establish thought leadership on topics of interest.Online CampaignThis comprises of the process of sending out press releases to various media outlets. We have based out campaigning mainly online as it caters for our Target Market. Weve reached out to The Gamer Magazine Sri Lankan gamin and e-sports community as well diGIT to feature Medusa Gaming laptops to its community through online means as well as include us in their monthly issue of the Gamer Magazine. We also promoted the brand by handing out bumper stickers of the Company logo and mouse pads with our trademark. We aim to sponsor the Sri Lankan Cyber Games in 2016 to further promote our Brand Image.Reference:Reid, R., & Bojanic, D. (2009, February 9). Hospitality Marketing Management. Retrieved December 8, 2015. Public Relations - Marketing Plan Help & Marketing Advice. (n.d.). Retrieved December 8, 2015, from http://www.mplans.com/articles/public-relations/#.Vmakh7xYm9Y McFarlin, K. (Ed.). (n.d.). Examples of Public Relations Campaigns. Retrieved December 8, 2015, from http://smallbusiness.chron.com/examples-public-relations-campaigns-10110.html More articles. (n.d.). Retrieved December 8, 2015, from http://www.businessdictionary.com/definition