Keraton Electrical Limited is an upcoming American company emerging into the market with new technology. The company main focus is on consumer electronics and especially the smart Television (TV). Keraton Ltd among other activities hopes to produce numerous smart television models that range from 14 inches and as large as 60 inches. The company aims to create an assembly line of innovative smart TV that reaches the consumers in both average and high income earners. Keraton plans to reach customers inside and outside of the United States including Europe and Asia. The company’s long-term goals is to reach 20% market share within the U.S. by creating brand image and equity through intense marketing while it realizes 55% profit margin, and ultimately generate state of the art smart televisions.

Executive Summary…………………………………………………………………1

Introduction…………………………………………………………………………3

Products…………………………………………………………………………..….3

Situational Analysis………………………………………………..…………………..4

Industry Overview………………………………………………………………………………4

SWOT Analysis…………………………………………………………………………………..5

Marketing Strategy…………………………………………………………………5

Target Market/………………………………………………………………6

Product Strategy……………………………………………………………6

Place…………………………………………………………………..……..7

Price Strategy………………………………………………………….……7

Promotion Strategy…………………………………………..……………..8

Competition ……………………………………………………………………..….8

Operational Plan……………………………………………………………..……..9

Financial Plan……………………………………………………………………….9

Investment plan……………………………………………………………..9

Bank Financing………………………………………………………………10

Conclusion……………………………………………..……………………………10

Recommendations………………………………………….……………………….10

Works Cited………………………………………………………………………..12

Appendix …………………………………………………………………………..13

Introduction

Keraton Electrical Limited is a start-up business with its headquarters in New York City. Keratin limited remains a privately owned firm with production and marketing of new smart TVs set up in the United States. The ownership of the company belongs to three principal players who are responsible for the initial capital and they include Franz Gratin, Dennis Winster and Young Warren. Keraton aims to produce high-modern television technology that targets the average and high income earners. The firm main focus is a new smart TV that incorporates the modern features of style and sophistication that comes with technology development (Kleiner 77).

Products

Keraton smart TV is a new elegant and sophisticated design that allows internet access to the consumers. The smart TV involves built in internet packages that ensures that consumers can manage to access online services such as videos on demand, social networking services, and even instant messaging. The product is a new whole technology that ensures full web browser that can project to most websites. Keraton smart TV comes with an Ethernet port that provides an opportunity to plug in to a home broadband router. The TVs also have the ability to access available Wi-Fi by use of hardware or a USB port that is situated at the back of the TV. The Keraton smart TV integrates internet capabilities because of a set-top box designed for television to ensure advanced computing capability and connectivity (Saro). Additionally, the firm has the authority to a public Software Development Kit (SDK) which is designed to assist in applications. In this way, third party develops related to Keraton can create applications for the smart TVs that ends up in the app store so that consumers can configure and uninstall the ones they prefer. Keraton sophisticated technology enables users to retrieve content such as photos, videos, movies and even music downloads at the comfort of their homes. There are a wide range of multimedia applications that come with Keraton smart TV that is not available in any other models of television sets. These unique features make the product a possible platform for user-generated content and use of high technology to entertain and satisfy customers with a high quality product (Cabrer 422).

Situational Analysis

Industry Overview

Keraton industry is in the smart TVs, which will be produced and assembled in the United States and distributed across the country. This range of products would be produced domestically because there is a competitive market in the United States which is a developed country. Technological changes in the smart TV industry have been considered in developing this new product that enables the product to have an edge over the older models. Keraton smart TVs would keep enhancing into new features that would be attractive to the average and high income earners. The smart TV industry grows fast because new technology emerges in various products, and, therefore, Keraton is prepared to advance to better and sophisticated models. The market for our product is set to begin in the United States and expand to Europe and Asia where new technologies in TV are highly admired. There are no new firms that have entered the market for the last three years and therefore, the company would be competing with the existing firms. However, given the sharp marketing strategies and demand for smart TVs in the market, Keraton plans to succeed in this venture (Kleiner 85).

SWOT Analysis

The marketing environment of Keraton Ltd consists of strengths and weaknesses that the business considers. There are also opportunities and threats that the firm believes it has the potential to handle successfully. The SWOT analysis below represents the conditions of the firm’s position in the marketplace. As Keraton plans to enter into an existing market, it plans to deal with all the challenges and opportunities available (Kleiner).

SWOT Analysis

Strengths Keraton knows the market of Television sales High demand for smart TVs Presence of a segmented marketing with buying authority Digital television systems and demands	Weaknesses Lack of experience while entering an existing market Few consumers are aware of the Keraton brand because it is a new product ·         Slow parent technological development ·         Limited cash flow
Opportunities Positive investment environment based on technological sector Collaboration with required regulators like government in regards to technological development Presence of a huge market both nationally and internationally Keraton can reach more customers through its modern website	Threats Existing competitors may present a similar product and service Lack of backing and security for entrepreneurs

 

Marketing Strategy

Target Market

The target audience for the Keraton smart TV includes young professionals living in urban settings aged between 25 and 45 years. These are people who prefer class and style when looking for a personal television. The major focus for the target audience is watching sports, entertainment and use of advanced technology in their own homes. In essence, these are young and energetic crowd that is skewed towards the male. Many young professional men have high income and concerned about their social status in the society. They adopt to technology fast and they are frequently looking for the best new technology as well as experiences. The smart TV falls under this category and young professional men cannot resist watching sports and entertainment at the comfort of their homes. The target market, therefore, consist of successful and educated individuals who may be single or married. The household income ranges from 60,000 dollars and 120,000 dollars per year. These are individuals who seek value and prestige in their undertakings and the prospect of a smart TV becomes enticing. Currently, the Keraton consumers tend to live around New York, California, and the Northwest. However, the future goals and focus for the brand is to target consumers in Europe and Asian countries (Kleiner 99).

Product Strategy

Keratin innovative smart TV comes with sophisticated features that offer smart viewing. One of the unique features for the product is the web browsing capabilities that allows users to enjoy the ability to interact with online platform. The benefit of browsing through the Keraton smart TV includes the pleasure of using a product similar to a laptop or notebook. Keraton offers the ability to use online services such as video on demand, instant messaging and also social networking. This offers the advantage of watching and listening to the favorite music on television without having to first download from the computer. The product works like a standard computer or laptop only that it also offers television services. In essence, one can buy a smart television and do away with the laptop if music and downloads are the major focus (Saro).  There are various applications and accessories that come with the new Keraton product. In essence, just like smart phones, the Keraton product gives way to online stores where consumers can download apps on their televisions. There is the benefit of accessing games, exercise routines, diets, and shopping lists through the numerous apps the Keraton brand offers. It is a new technology that offers high end watching experience and a wide range of other features. See resolution and social networking capabilities on appendices (Perry).

Place

Keraton Electrical Limited set up its headquarters at New York City through an arrangement to remain in major cities. This is a strategic location for the product to be distributed effectively across the major areas like the Northwest. The company has leased a large warehouse within the center of New York where it would be able to carry out its operations of production and distribution. The space has all the necessary equipment and comfort required in production as well as enough room to accommodate the staff members. People who cannot access the physical location have the option to visit the company’s website www.Keratoneletrical.com. The website displays all the features of the products and allows customers to make orders that are delivered to them. New York location remains a busy town with a stream of customers who have income and resources to acquire a smart TV (Kleiner 107).

Price Strategy

The price of Keraton products would be set with the competitors’ market price in mind. In order to gain quick access to an already existing market, Keraton prices remains moderate and fairer to those offered by the competitors. The firm does not intend to set the price highly to show luxury or prestige, and it would not set extremely low prices to try and get high quantity in sales. The plan involves setting prices according to the value of the products so that customers purchase smart TVs that they feel exhume quality. The firm would be offering discounts to loyal and esteemed customers in a bid to attract more potential clients. Loyalty and consistency with the Keraton products means discounts for all purchases to ensure customer satisfaction (Kleiner 109).

Promotion Strategy

There are various promotional events that Keraton plans to use to get to the consumers. The products avails its products to customers through the direct mailings, the internet, and even in person in an effort to differentiate its products from those of competitors. The media capture millions of people and therefore, commercials through the television generate a lot of interest. The television commercials are aimed at showing the actual smart TV so that clients can be aware of what they are purchasing. These TV ads feature the hands-free motion elements and voice control characteristics of a smart TV. The firm website includes additional promotional strategies with each page having a wide range of Keraton products. The functionality and aspects of the products are indicated in the websites. The website also shows actual movements on how to play the various features of Keraton smart TV so that clients interact with it even though they are not in front of an actual television. Billboards to promote the product stand at various cities in the United States including New York, Buffalo, Plattsburgh, and Binghamton (Kleiner 77).

Competition

There are various competitors for Keraton that exist in the market especially in the U.S. The major competitors of Keraton include Samsun Ltd, LGI, Timberland, Nokkia, HPS and Keratron limited. There are other smaller competitors like TLX and Blue Sky who deal with the older versions of the television. The major competition knows the market niche and customers of the smart TV which gives them a competing edge. However, their prices are inaccessible especially to average or middle income earners. This opportunity gives Keraton an advantage to compete with them successfully especially as the economy appears harsh.  Keraton plans to offer fair prices, innovative brand and enough technical assistance allows the firm to penetrate the market at a fast rate. Despite the stiff competition available, Keraton brand focuses on customer needs for a sophisticated brand that offers class and affordability. Additionally, most of our competitors focus on high income earners as their main customer base, but Keraton brand includes the needs of average earners (Kleiner 177).

Operational Plan

Keratin main operations in New York involve the use of technology to generate a smart TV model. The management of the company follows the leadership of the three owners who include Franz Gratin as the head of production, Dennis Winster who heads the sales and marketing department and Young Warren taking the vice president position. The company at the New York headquarters plans to hire about 700 employees. These employees work in various departments including sales, marketing, Information Technology, accounting and finance among others. The production process involves the production of LED equipment with additional features of smart Technology. The day-to-day operations focus on distribution of more than 200 pieces of smart TV, and additional electrical products that the firm deals with such as fridges and home theatres (Pinson 151).

Financial Plan

Investment plan

In this startup, Keraton Ltd requires financial investment that totals to about 3,211, 223 million dollars. The working capital falls at 2,367,689 million dollars to acquire electronic equipment, staff and also direct costs. Keraton capital investment estimates 845,456 million dollars that would be needed to acquire the factory or production space, organize the assembly line as well as furniture (Kleiner).

Bank Financing

Keraton began its operation with money that was acquired through bank loan to add to the capital raised by the owners and partners while it also has a year of grace period. The bank provided a loan of 1,389,000 million dollars to the company to begin operations on smart TV Keraton has a long-term goal of seeing the project success for 10 years and additional expansion would be conducted after this period. The bank interest rates that the loan attracted in medium and long-term plans estimates at 24% per year (Kleiner).

Conclusion

Keraton Electricals Limited is an upcoming business entering the existing market of smart TV technology. The company has its headquarters in New York City in a leased building that offers space for production and assembly of innovative smart televisions. The target market for the product is the young successful men who have keen detail for prestige and luxury. The competition in the market threats Keraton success, but they have strength of fair price and expanding to international markets. The business management includes three owners who are primary investors and an additional bank loan assisted in starting operations.

Recommendations

Kearton needs to establish an initial market within New York and then expand to other cities in the United States in order to create a standing for its products. It would be efficient to acquire the necessary experience on how best to operate in an existing market and expand slowing. There is need to test the validity of the target market and their viability for the long-term goals. The company has the mandate to establish good connections and relationship with partners to have great leadership and success. Keraton requires a strategy to analyze the opportunities in the market and make use of them and generate best methods of dealing with competitors.

 

Works Cited

Cabrer, Manuel Ramos, et al. “Controlling the smart home from TV.” Consumer Electronics, IEEE Transactions on 52.2 (2006): 421-429.

Kleiner, Eugene. The Successful Business Plan: Secrets & Strategies. San Francisco: The Planning Shop, 2003. Print.

Pinson, Linda. Anatomy of a Business Plan: A Step-by-step Guide to Building the Business and Securing Your Company’s Future. Montague: aka associates, 2008. Print.

Perry, Tekla S. “Consumer electronics.” Spectrum, IEEE 31.1 (1994): 30-34.

Saro, George. User Interface Development for SmartTV using Web technology and CEA2014. Web. n.d. 16 May 2014. < http://www.w3.org/2011/09/webtv/papers/webandtvSept2011-twc-v1.0.pdf>

Appendices

Figure 1