WE CREATE THE FUTURE OF ELECTRONICS
Case Study
Background
Motor Image introduced Subaru to Singapore in 1986. The company has since set up companies in China, Hong Kong, Indonesia, Malaysia, Philippines, Taiwan, Thailand, Vietnam, and Cambodia to let more people in the region discover and enjoy the difference of driving a Subaru.
We held several meetings with Tan Chong’s Purchasing and Marketing department. We shared the various product categories that we can manufacture under the Subaru brand and we brand-stormed for ideas.
Understanding Subaru’s Marketing Objectives
One of the idea’s was to build a Subaru loyalty customer base, and therefore customizing accessories under the Subaru brand was one of the options. We shared our electronic as well as non-electronic products. The initial products submitted were electronic products such as Bluetooth speakers, TWS earbuds, headphones, etc. However we also shared our manufacturing capabilities in bicycles as well.
Identified Pain Points
Tan Chong wanted to use complementary products to differentiate themselves from the market. Their past marketing campaigns include the Subaru Impreza Challenge which ran for several years. Subaru was a niche brand years ago, and they wanted to create the Subaru Impreza Challenge as a stunt to grow the brand. After our initial idea of electronics – car accessories, the next idea was much focused on bicycles. The reason was two-fold with the rise in popularity for bigger cars such as SUVs and 7 seaters many families plus the pandemic.
The Solution
We recommended for Tan Chong a few range of foldable bicycles – at that time was in demand due to the pandemic and it is able to showcase the large storage space of Subaru’s larger cars.
After several discussions agreed to the project.
Product Development
We recommended Tan Chong customization in terms of product design, color, weight, packaging and materials used for the foldable bike. After initial computer drawings were shown, we worked with our factory to produce working prototypes. We also got the Subaru brand logo to be imprinted onto the foldable bicycle using laser print process.
Product Production
Before production started, we shared with Tan Chong our factory inspection report. The report showcase a summary of our factory’s capabilities and experience in managing global projects. At every stage of production, we give a timely update to Tan Chong on the completed production line. Example, after the bicycle frames are constructed we replayed the information to Tan Chong. In total, there were 8 different production lines to produce the foldable bicycles. We took photos of each stage of production and informed Tan Chong.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 8 QC tests that are done for a completed wireless headphone. One of the critical test is the folding mechanism, and we needed to make sure that the folding lock is secured to prevent accidents.
We completed the production in 42 days, 3 days ahead of time. We took a full day for quality inspection. Every foldable bicycle was inspected and after getting approved marked with a “QC passed” label. After updating the QC report to Tan Chong, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored the foldable bicycles in 5-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). We also added additional protective sponges on the bicycles, specifically at the joints for a better safeguard. We informed our shipping company to be extra careful when handling the carton boxes. The shipment from China to Singapore took around 10 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our foldable bicycles are finally shipped to Tan Chong’s warehouse.
Product Launch
Tan Chong was very pleased that the project was completed in time.
Product warranty
All foldable bicycles were offered a 1 year warranty. We provided a repair guide for the local and regional team. We also manage exchange within the warranty period. To date, no repairs or warranty claims were conducted.
Norton Symantec Background
Our first software customer was Symantec. Founded in 1982 with a company revenue of $6.7 billion. Symantec has grown into a Fortune 500 company through a combination of internal development, strategic acquisition and partnering with industry leaders.
Our first meeting with Symantec team was over a cup of coffee. The first statement that the team delivered was Symantec had blocked more than 5.5 billion malicious attacks in the year, more than 80% prior year. We were impressed. One of the growing trends was the growth of mobile malware which in the same year sales of smartphones will overtake shipment of PCs (364 million). And one other interesting revelation is that Mac-based devices are not immune to threats.
Understanding Norton Symantec Objectives
One of Symantec’s product was Norton Mobile Security available for both Android and Apple OS. And the Symantec team has planned to launch the product in the region with their partners. The Norton Mobile Security targets to prevent mobile risks such as data collection, user tracking, content dissemination, change settings and other traditional threats. Symantec had to find a way to promote their product to their customers. And at the same time make it compelling for their customers to choose Norton instead of their competitors. Kaspersky, Trend Micro, Mc Afee and AVG forms the largest contenders to the mobile security business. Symantec wanted to launch it regionally and needed some ideas on how to market their mobile security software.
We took one step further to integrate with Symantec’s sales and marketing team to better understand their PIP (Product Introduction Plan) and their sales and marketing strategies.
The 4Ps of Norton Symantec Mobile Security – Marketing Mix
- Product – This is the most important aspect of Symantec’s philosophy. Norton Mobile Security has additional features compared to their competitors as follow:
- AVG – Antiphising Web Protection, call and SMS blocker
- F-Secure – SMS Scanning, call and SMS blocker
- Mc-Afee – Anti-Malware scan, Automatic live update, SD card scanning, SMS scanning, Antiphising Web Protection, call and SMS blocker
- Trend Micro – SMS scanning, SD card scanning
- Kaspersky – SMS scanning, Antiphising Web Protection
- Price – Symantec maintain a cost-benefit price policy that stacks benefits against their competition when setting their price. In doing the USPs (unique selling points) are clearly defined to their customers.
- Place – Symantec has joined hands to form distribution and retail partnerships so that stocks are readily available. Other than selling at brick and mortar shops, Symantec invest heavily in selling online.
- Promotion – Promotion is the second most important aspect of marketing in Symantec’s philosophy. To stay relevant, Symantec make efforts to design and plan retail programs to maintain ground presence and partners’ support.
At the same time, we identified some of Symantec’s pain points.
Identified Pain Points
1. Mobile Security market highly competitive and rival brands are lowering their retail price to expand market share
- Symantec wants to maintain premium brand positioning without lowering their retail price
- Customer wants to see match value when comparing between Symantec and their rival brands
- Not every mobile user owns a mobile security software, how can Symantec market their software to their target audience?
The Solution
We recommended for Symantec to improve their Promotion by offering a gift that is relevant to their customer. And if their target audience are mobile phone users, the obvious choice is to select a gift that connects with the mobile phone daily. Taking into consideration cost factor, we recommended in-ear earphones.
We helped Symantec source for a pair of in-ear earphones that is affordable relative to the market price. We did a market survey and the average market price for in-earphone of major brands were between US$50-$200 depending on technology. It was a product of relatively high value. With the proliferation of music app stores, mobile phones are increasingly used for listening to music.
Symantec agreed to the project. The project was to manufacture the in-ear earphones for Singapore and ASEAN region.
Product Development
Symantec wanted to brand the in-ear earphones under Norton. We designed custom-made packaging box with Norton logo. We also introduced laser printing to incorporate Norton logo on the in-ear earphone.
After the designs were approved, we worked with our factory to produce working prototypes. We ran through a cost and benefit analysis to determine the project target price. We delivered the working prototype to Symantec for evaluation. At the same time, we improved on the sound drivers of the earphones. After product evaluation is complete we document every feedback that Symantec has on the final product. With Symantec’s final agreement on the final sample we move on to the next stage – Production.
Product Production
Before production started, we shared with Symantec our factory inspection report. Our factory has manufactured for major brands such as Philips. The report showcase a summary of our factory’s capabilities and experience in managing global projects. The lead time at start of discussion was forecasted at 35 days for 5,000 In-ear earphones. At every stage of production, we give a timely update to Symantec on the completed production line. Example, after the laser printing is done on a batch of in-ear earphones we sent the photos to Symantec for updates.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 5 QC tests that are done for an in-ear earphone. One of the critical test is the sound reproduction of the earphone driver.
We completed the production in 15 days, 5 days ahead of time. A full day was taken for quality inspection. Every in-ear earphone was inspected and marked with a “QC passed” label. After updating the QC report to Symantec, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored boxes of in-ear earphones in 7-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). Each carton box holds 50 packs of in-ear earphones and are printed with our standard labels. We informed our shipping company to be extra careful when handling the carton boxes, and at the same time installed wooden crates for added protection. The shipment from China to Singapore took around 7 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our wireless headphones are finally shipped to Symantec’s warehouse.
Product Launch
Symantec introduced the in-ear earphone gift at the region launch and found success with her retailers and distributors. The customized earphone and packaging box with Norton logo helped Symantec gain traction in mobile security sales. Customers were influenced with a relevant product that matched their daily lifestyle. As such the project found success.
Product warranty
All stocks sold to Symantec was given an additional 1% buffer stocks as one-to-one exchange done by Symantec’s distributors. After 2 years of product warranty review, the 1% buffer was not used. This represents a 0% defect rate for our products.
Canon’s Background
Our first customer was Canon Singapore Pte Ltd. Established in 1979, Canon Singapore Pte. Ltd. is Canon’s regional headquarters for South & South East Asia. After merging with the local sales and marketing company (Canon Marketing (Singapore) Pte Ltd) it oversees both regional and domestic activities in Singapore. The company covers 22 other regions including subsidiaries in India, Malaysia, Thailand and Vietnam.
We held our first meeting with Canon Marketing department. It was an open and candid talk. Canon wants to maintain their No. 1 market positioning amid stiffening competition from the likes of Epson and HP. Canon envision every household in Singapore to possess a Canon printer. Canon runs a huge budget on TV and print media to maintain their premium branding. And Canon wants to define many reasons for their customers to choose her brand. Although printer unit sales slipped year on year, Canon unit sales for consumables grew. With the competition offering prices lower for similar specifications, Canon wants to improve on their promotional activities so that she can hold onto their price and still attract customers to purchase Canon printers.
Understanding Canon’s Objectives
We positioned ourselves as an extension of Canon’s team. To contribute to Canon’s success, we need to understand from their marketing standpoint how we can introduce new ideas and innovation to value-add to Canon’s business. We looked at Canon’s current marketing strategy (the 4Ps in particular) and discussed which aspect they want to improve on. Canon decided that they would want to make significant improve on Promotion to improve sales.
Canon Marketing Mix – 4Ps
- Product – Canon has the distinction of being first in many things such as the 10-key Japanese calculator, world’s first digital camera and laser printer.
- Price – Canon follows the competitive price mentality, and has maintained a price policy that is affordable so that maximum number of people can purchase their products
- Place – Canon has joined hands to form transportation partnerships so that goods are available to the distributor, retailers and consumers. The official dealers of the company provide detailed and efficient services to its customers
- Promotion – Promotion is the most important aspect of marketing in Canon’s philosophy. Canon has an active marketing communication strategy, and promoted sales by offering gifts on their products, discounts on services and lucky coupons for winners.
At the same time, we identified some of Canon’s pain points.
Identified Pain Points
1. Ink Jet Printer market highly competitive and rival brands are lowering their retail price to expand market share
- Canon wants to maintain premium brand positioning without lowering their retail price
- Customer wants to see match value when comparing between Canon and rival brands
- Not every household or family owns a printer, how can Canon market their printers to their target audience?
The Solution
We recommended for Canon to improve sales of their mid-high end printers by offering a premium gift compelling enough for their customer to justify their purchase decision. Their entry level printer will not use Promotion strategy but rather Price strategy.
We helped Canon source for a gift that is affordable relative to the market price. We introduced to Canon wireless headphones suitable for TV. We did a market survey and the average market price for TV wireless headphones was around US$99. It was a product of exceptional high value. It was the perfect gift for Canon’s customers. And the timing was right, TV was in transition from Plasma to LCD and many home owners are attracted to converting their home plasma TVs to LCD TV. These home owners are also the same target audience that Canon wants to target to sell their printers.
Canon agreed to the project.
Product Development
We recommended Canon customization in terms of product design, color, weight, packaging and materials used for the wireless headphones. After hand-drawn sketches were shown, we worked with our factory to produce working prototypes. At the product development stage, the most important is to run through with Canon cost and benefit analysis, we determine our price based on an open and transparent overview of the project cost. From the working prototype, we demonstrated to Canon how the transmitter can connect with various TV brands and the headphone (receiver). At the same time, we calibrated the FM frequency to improve the sound reproduction from the headphones. After product evaluation is complete we document every feedback that Canon has on the final product. We improved the initial prototype and got our factory to manufacture a final sample – we call it the golden sample. After the golden sample is confirmed. We then worked on the packaging box. Perhaps one of the most important aspect of the project. The packaging box was a crucial component of the gift and we developed a packaging box that looks premium yet a competitive price. With Canon’s final agreement on the final sample we move on to the next stage – Production.
Product Production
Before production started, we shared with Canon our factory inspection report. The report showcase a summary of our factory’s capabilities and experience in managing global projects. The lead time at start of discussion was forecasted at 25 days for 5,000 TV wireless headphones. At every stage of production, we give a timely update to Canon on the completed production line. Example, after the headphone parts are constructed we replayed the information to Canon. In total, there were 20 different production lines to produce the wireless headphones. We took photos of each stage of production and informed Canon.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 8 QC tests that are done for a completed wireless headphone. One of the critical test is the radio connection between the transmitter and the receiver (headphone). One of the challenge we solved was to calibrate the radio frequency that is acceptable in Singapore’s IDA telecommunication law; and at the same time offer good quality sound reproduction.
We completed the production in 20 days, 5 days ahead of time. We took a full day for quality inspection. Every headphone was inspected and after getting approved marked with a “QC passed” label. After updating the QC report to Canon, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored boxes of wireless headphones in 5-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). Each carton box holds 20 wireless headphones and are printed with our standard labels. We informed our shipping company to be extra careful when handling the carton boxes, and at the same time installed wooden crates for added protection. The shipment from China to Singapore took around 10 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our wireless headphones are finally shipped to Canon’s warehouse.
Product Launch
Canon was very pleased that the project was completed in time. At the trade fair where the TV wireless headphones were used as gift bundle for every Canon printer sold, sales results exceeded forecast and feedback was positive. We took another 1,000 units order from Canon to fulfill customers who have purchased their printer although our gift ran out of stocks.
Product warranty
All TV wireless headphones were offered a 1 year warranty. We provided a 1-to-1 exchange within the warranty period. In 1 year, there were about 15 units exchange – that’s 0.25% defect rate less than 1% defect rate that we forecasted for Canon.
OCBC’s Background
OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. Recognized for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore and the Asia Pacific by The Asian Banker.
OCBC Bank’s key markets are Singapore, Malaysia, Indonesia and Greater China. It has more than 610 branches and representative offices in 18 countries and regions. These include the more than 340 branches and offices in Indonesia under subsidiary Bank OCBC NISP, and over 100 branches and offices in Hong Kong, China and Macau under OCBC Wing Hang.
Understanding OCBC’s Objectives
We held our meeting with OCBC Global Consumer Financial Services department. OCBC’s credit card base expanded significantly to approximately half a million cards by end of 2002, following the launch of the co-branded Robinsons credit card. In 2008, several key initiatives were launched in Singapore and across the region as part of our continuing focus on service innovation and excellence. For example, SmartChange credit card feature. OCBC target is to be the top 3 banks or credit cards. In the same year credit card business grew 8%.
We positioned ourselves as a marketing extension of OCBC. To value-add, we discussed with OCBC marketing team their objective. They said that although their credit card base has grown, their spending has not. So, to encourage spending they want to drive more awareness with their retailers and get their support to drive more OCBC credit card usage with their cardmembers. However, many retailers have multiple partner bank card promotions and OCBC retailer charge rates are among the highest across consumer electronic retailers.
The Solution
We recommended for OCBC to offer a gift for every minimum spend charged on their cardmember through the retailers.
For a minimum spent of $1,000 charged on OCBC credit card, the retailers would give away a wireless headphone worth SGD$99. The real cost a fraction (SGD$20) of the product perceived value.
OCBC agreed to the project.
Product Development
We recommended OCBC customization in terms of product design, color, weight, packaging and materials used for the wireless headphones. After hand-drawn sketches were shown, we worked with our factory to produce working prototypes. At the product development stage, the most important is to run through with OCBC the cost and benefit analysis, we determine our price based on an open and transparent overview of the project cost. From the working prototype, we demonstrated to OCBC how the transmitter can connect with various TV brands and the headphone (receiver). At the same time, we calibrated the FM frequency to improve the sound reproduction from the headphones. After product evaluation is complete we document every feedback that OCBC has on the final product. We improved the initial prototype and got our factory to manufacture a final sample – we call it the golden sample. After the golden sample is confirmed. We then worked on the packaging box. Perhaps one of the most important aspect of the project. The packaging box was a crucial component of the gift and we developed a packaging box that looks premium yet a competitive price. With OCBC’s final agreement on the final sample we move on to the next stage – Production.
Product Production
Before production started, we shared with OCBC our factory inspection report. The report showcase a summary of our factory’s capabilities and experience in managing global projects. The lead time at start of discussion was forecasted at 30 days for 10,000 wireless headphones. At every stage of production, we give a timely update to OCBC on the completed production line. Example, after the headphone parts are constructed we relayed the information to OCBC. In total, there were 20 different production lines to produce the wireless headphones. We took photos of each stage of production and informed OCBC.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 8 QC tests that are done for a completed wireless headphone. One of the critical test is the radio connection between the transmitter and the receiver (headphone). One of the challenge we solved was to calibrate the radio frequency that is acceptable in Singapore’s IDA telecommunication law; and at the same time offer good quality sound reproduction.
We completed the production in 25 days, 5 days ahead of time. We took a full day for quality inspection. Every headphone was inspected and after getting approved marked with a “QC passed” label. After updating the QC report to OCBC, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored boxes of wireless headphones in 5-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). Each carton box holds 20 wireless headphones and are printed with our standard labels. We informed our shipping company to be extra careful when handling the carton boxes, and at the same time installed wooden crates for added protection. The shipment from China to Singapore took around 10 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our wireless headphones are finally shipped to our warehouse.
Product Launch
OCBC was very pleased that the project was completed in time. We delivered the wireless headphones to all OCBC retailers. In 3 months after they ran the cardmember promotion, their cardmember usage sales posted healthy growth.
Product warranty
All wireless headphones were offered a 1 year warranty. We provided a 1-to-1 exchange within the warranty period. In 1 year, there were about 25 units exchange.
Challenger’s Background
Now 37 years old, Singapore’s only homegrown consumer electronics chain Challenger serves over 500,000 ValueClub members across 40 stores island-wide. Shop the latest IT gadgets, lifestyle products and services with peace of mind. Plus, earn up to 1.5% member rebates to maximise your big-ticket tech purchase. Can’t find a product? Search Hachi.tech, Challenger’s online marketplace with over 50,000 products, offering local delivery or convenient in-store pickup.
We held our first meeting with Challenger’s buyer. It was an open and candid talk. Challenger is interested to explore contract manufacturing opportunities and we first discussed on an exclusive designed bluetooth headset model.
Understanding Challenger’s Objectives
To value-add to Challenger’s success, we need to understand from their marketing standpoint how we can introduce new products to meet their customers’ need. In this case we first discussed on the bluetooth wireless audio category which was growing steadily during the time.
D.LAB Product Mix – 4Ps
- Product – We proposed a mid-high value bluetooth headset with exclusive design with built-in high quality CSR chipset, offering good sound reproduction.
- Price – As we wanted Challenger to maximise profits, we suggested for them to retail at 3 times our contract manufacture cost.
- Place – D.LAB Bluetooth Headset DBH-501 was to be first launched at 22 challenger outlets
- Promotion – Promotion is the most important aspect of marketing with Challenger. Given the room for discount, Challenger does periodic discounts.
Product Development
We recommended for D.LAB DBH-501 to be customized in terms of product design, color, weight, packaging and materials used for the wireless headphones. After hand-drawn sketches were shown, we worked with our factory to produce working prototypes. At the product development stage, the most important is to run through with Challenger cost and benefit analysis, we determine our price based on an open and transparent overview of the project cost. From the working prototype, we demonstrated to Challenger how the bluetooth headset can be paired with both andriod and apple phones. At the same time, we calibrated the Bluetooth IC chipset to improve the sound reproduction. After product evaluation is complete we document every feedback that Challenger has on the final product. We improved the initial prototype and got our factory to manufacture a final sample – we call it the golden sample. After the golden sample is confirmed. We then worked on the packaging box. Perhaps one of the most important aspect of the project. The packaging box was a crucial component of the gift and we developed a packaging box that looks premium yet a competitive price. With Challengers’s final agreement on the final sample we move on to the next stage – Production.
Product Production
Before production started, we shared with Challenger our factory inspection report. The report showcase a summary of our factory’s capabilities and experience in managing global projects. The lead time at start of discussion was forecasted at 35 days for 3,000 bluetooth headset. At every stage of production, we give a timely update to Challenger on the completed production line. Example, after the headphone parts are constructed we replayed the information to Challenger.
For quality assurance and control, every material used for production is examined by our QC team. And in total there are 6 QC tests that are done for a completed bluetooth headset.
We completed the production in 30 days, 5 days ahead of time. We took a full day for quality inspection. Every headphone was inspected and after getting approved marked with a “QC passed” label. After updating the QC report to Challenger, we moved on to the next stage – shipment.
Product Shipment and Logistics
We stored boxes of bluetooth headset in 5-ply carton boxes (we avoided 3-ply to give a better protection for the gift boxes). Each carton box holds 20 wireless headphones and are printed with our standard labels. We informed our shipping company to be extra careful when handling the carton boxes, and at the same time installed wooden crates for added protection. The shipment from China to Singapore took around 10 days.
The final push was to inform our Singapore shipping and logistics vendor to handle the stocks with care at the port during retrieval. With all shipping documents prepared, our wireless headphones are finally shipped to Singapore. At first launch we delivered the stocks to 22 Challenger outlets.
Product Launch
Challenger was very pleased that the project was completed in time. At the outlets where the bluetooth headset was sold, sales is brisk and very soon we had our next order shipment.
Product warranty
All bluetooth headsets were offered a 1 year warranty. We provided a 1-to-1 exchange within the warranty period. Every container (3,000pcs), there were about 5 units exchange – that’s 0.01% defect rate less than 1% defect rate that we forecasted for Challenger.
