Amonika Computer Parts

1. AMONIKA COMPUTER PARTS
SALES AND DISTRIBUTION STRATEGY
Submitted by Group 20

2. EXECUTIVE SUMMARY
AMONIKA LTD is an Indian computer parts company established in 2010 and is
headquartered at Delhi. It designs, develops, manufactures and sells personal
computers parts and Cloud Computing parts. Amonika computer parts is a very well
known name in its locality , retail outlets and even in retail outlets of neighbouring
states. Amonika computer parts is well known for providing best quality products
at economical prices.

3. MISSION
Our mission is to become one of the world’s great personal technology companies.
We aspire to achieve this objective by leading in three key areas:
• Personal Computers parts: Lead in PCs and be respected for our product
innovation and quality.
• Convergence: Lead the industry with an ecosystem of devices, services,
applications and content for people to seamlessly connect to people and web
content.
• Culture: Become recognized as one of the best, most trusted and most well-
respected companies to work for and do business with.

4. OBJECTIVE
• To become the country’s leading ‘generic Computer parts distributor
• To Provide high quality products at economical prices
• To follow innovative approach so that Amonika can have a unique image in the
industry

5. SITUATION ANALYSIS
India is one of the fastest growing IT markets in the world and also the fastest growing PC market in the
Asia-Pacific region. IT hardware industry has proven to be the backbone of the nation’s growth.
The hardware industry is continuously evolving from desktops to laptops to mobile computing and
further to cloud computing. As per the Department of Information technology, currently, there are 1.1
million professionals in the field of hardware but the count of professionals and computer experts will
rise to 5.6 million until the year 2020.
So with Internet revolution demand of computer parts is also expected to increase in near future and
our main goal is to grab this opportunity and expand our business not only in India but overseas as well.
With the increasing competition with fast evolvement of technology, industry consolidation and pricing
pressure squeezing profitability, it is really important to innovate for sustaining business for a long
period of time.
So to check the present situation in the Industry we have analysed ourselves and industry environment if
following steps:
• Market Summary
• SWOT analysis
• Competition
• Product Offering
• Distribution

6. MARKET SUMMARY
There are 3 basic approaches to market segmentation which are as follows:
One is to choose not to tailor different products and instead produce and sell a
standardized product that is targeted at the average consumer in the market.
Second is to recognize differences between segments and create different product
offering for the different segments
Third is to target only a limited number of market segments or just one and to
become very best at serving that particular segment
As Amonika operates only in locality and few of its neighbouring states we decided
to follow Second approach. In this approach we are planning to target normal day
to day PC users by opening retail outlets in Metro cities and its neighbouring states
with following computer parts:
• Motherboard , CPU, Memory Cards, Keyboard and mouse, Graphic cards etc.
And we are also planning to targets Businesses through Cloud computing
computer parts like Servers, Database, computers etc.

7. SWOT ANALYSIS
STRENGTHS
• Best quality parts and services at affordable prices
• Strong Distribution Channel
• Brand built upon reputation for the parts and services
• Good reputation in its retail networks
• Expert Knowledge about computer parts and its related peripherals
• Innovative Skills

8. SWOT ANALYSIS
WEEKNESSES
• Lack of experienced Staff
• Narrow range
• Low brand recognition
• Low Margins

9. SWOT ANALYSIS
OPPORTUNITIES
• Internet revolution being underway , a boom in computer parts demand is
underway so there is lot of scope of expansion
• Unrecognised space for recognition
• Additional markets

10. SWOT ANALYSIS
THREATS
• Intense competition
• No barrier to market entry for competitors
• Low cost imports
• Fluctuating prices of raw materials

11. COMPETITION
Amonika parts at present facing stiff competition from many companies in this
industry, few of major competitors are mentioned below:
• Dell
• IBM
• Intel
• Asus
• Fujitsu
• MSI
• Gigabyte

12. PRODUCT OFFERING
Amonika’s retails outlet for consumers offer following offering:
• Free 2 year warranty for products sold to its first 100 customers in our retail outlets
• Free accessories with first 100 items sold in retails outlets such as pen drive, printer,
headphones etc.
• 20% discounts on first 100 items sold
• 1 month Free in home services ( Depending upon the locality and feasiblilty of location
of the customer and the store )
For our business consumers we are providing Cloud computing parts and services and
also providing following offerings:
• Free 1 year services for our initial 50 customers

13. DISTRIBUTION
Amonika computer parts will be distributed through:
• Its own retail outlets
• Through other parts retailers
• Online on our website i.e. www.amonikacomputerparts.com

14. MARKETING STRATEGY
Includes :
• Short term Objectives
• Target Markets
• Positioning
• Strategies
• Markeitng Mix
• Marketing Research

15. SHORT TERM OBJECTIVES
Amonika will focus on its short term objectives to achieve its long term objectives.
So objective for the first 2 years of expansion are as follows:
• 1st Year : To increase customer base by providing best quality services and to get
1% market share of the computer parts/hardware industry which means selling
approx. 5,000 units computer hardware in initial year
• 2nd Year : To sustain growth and follow cost leadership strategy

16. TARGET MARKETS
As Amonika operates only in locality and few of its neighbouring states we decided to
follow different strategies for consumers and business customers.
In this approach we are planning to target normal day to day PC users by opening retail
outlets in Metro cities and its neighbouring states with following computer parts:
• Motherboard
• CPU
• Memory Cards
• Keyboard and mouse
• Graphic cards
And we are also planning to targets Businesses through Cloud computing computer
parts like Servers, Database, computers etc.

17. POSITIONING
• Amonika is positioning its brand and product as most reliable products for
performance.
• And also represents its timely and consumer friendly services as a base for a long
term relationship with their customers.

18. STRATEGIES
Product
Offering products for PC users from retail outlets and business users with offerings
which were discussed earlier.
Pricing
Product pricing of our major products are as follows:
• Motherboard : Ranging from Rs 5000 to Rs 25000 ( depending upon specs )
• RAM : Ranging from Rs 500 to Rs 4500 ( depending upon specs )
• Printer : Ranging from Rs 2000 to Rs 21000 ( depending upon specs )
• Server : Ranging from Rs 50000 to Rs 250000 ( depending upon specs )
Distribution
Through Retails outlets, Computer repair shops and Online website of Amonika ltd.
Marketing Communication
• Spread of word of mouth through present distribution channel to their Business and
PC consumers
• Increasing brand display on the shelves of renowned Computer hardware retail
outlets like Chrome etc.

19. MARKETING MIX
Course of Action plan for the first 6 months is mentioned as follows :
• January : Spread of word of mouth through present distribution channels and
contacting business person in the locality about cloud computing and services
• February : Getting feedback of responses from retailers about the demand. Also
contacting leading retail outlets in metro cities for displaying our products
• March : Setup of Retail stores in metro cities and encourage consumers to use
online portal
• April : Advertisment with the help of social media and other mediums
• May : Organizing various Games and discount offers in retail outlets
• June : Check the status if there is any outcome of the promotional activities
performed

20. MARKETING RESEARCH
• Using research we will identify specific features and benefits our target segment
values.
• Various methods of research will be used like market tests, surveys from retailers,
questionnaire from present consumers etc. to name a few. We are also analysing
customer’s attitude toward other established brands and brand awareness
research will help us determine the effectiveness of our promotional campaigns.

21. FINANCIALS
Total 1st year estimated sales expected 5000 units with revenue of Rs. 5,00,00,000.
Anticipated loss for 1st year is Rs. 1 crore
Fixed cost (including advertisement for initial year ) Rs 1,00,00,000
Per unit Cost price (average ) : Rs 9000
Per unit variable cost ( avg. ) : Rs 1500
Break even Units : 5,00,00,000/9000-1500 = 6,666 units
Expected to breakeven by last quarter of the 2nd year.

22. CONTROLS
• Implementation : We are planning tight control measures to tightly monitor our
costs and quality of our products. Strengthening our services providing system as
well to react quickly in case of any issue faced by the customer.
• Marketing Organization : Amonika has hired Alpha ads Services Pvt Ltd. For
promoting our brand and Also has tied up with Chrome, for now, to promote our
brand products.

23. A Marketing
Management Project
Submitted by : Group 20
Group Members:
• Ajay Parmar
• Nishtha Batra
• Gunjan Itkan
THANK
YOU