10S principles - Marketing Management

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					1     INTRODUCTION
Forming a successful marketing strategy to be positioned in an already existing market or to
enter in to a new market is a key challenge under any circumstance for an entrepreneur.
Therefore, having a clear understanding about the conceptualization of 10S marketing strategy
can provide a methodical approach in positioning oneself firmly in a dynamic environment.

In this context the conceptualization of the 10S is applied to the successful product launch of
Point of Sales Machinery (POS) of Ceylon Business Appliances Pvt. Ltd (CBA). Throughout the
assignment the concepts that are applicable to this scenario are deeply evaluated and described
along with environmental concerns.

Even though currently CBA has already launched strategies to capture a number of market
segments, this elucidates the application of 10S conceptualization to a single selected segment.

The concept of 10S provides an in depth analysis of the marketing mix from the initial stage of
ideology development to categories ranging on to principles of Segmentation, Targeting and
Positioning as illustrated in below Figure 2-1.

1.1   Industry of ‘Point of Sale Machinery’ in Sri Lanka
A POS terminal manages the selling process by a salesperson accessible interface. The same
system allows the creation and printing of the receipt. The pre dominant industries of POS users
are namely; banking, retail, hospitality, hotels & department stores, As of 2012, three local POS
solution providers are present in the field, eying for a market share of the environment.

The industry giant in the field, EPIC Lanka has launched POS machinery solutions since 1998,
with a market share of 50%, followed by Data Management Systems (DMS) with a 25% market
share, and Ceylon Business Appliances with a market share of 15%.

Ceylon Business Appliances was approaching the market as the 3rd entrant of the POS solution
providers in Sri Lanka. Its stylish color display POS mobile terminal is designed with state of the
art communication interfaces and complies with ISO 8583 financial transaction standards.
Besides, its T800 offers large memory option (up to 32MB SDRAM and 512MB NAND Flash)
to cater for large data storage required by multiple applications.

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2      10S Conceptualization
The 10S conceptualization is applied to the viewpoint to create a strategy on product introduction
to market and substantial development of the marketing mix in order to classify a segment that
can be addressed by the new product offering.


    Figure 2-1 Marketing strategy: 10S




The 10S expands the conventional market entrance strategy development process enabling much
more rational and effective gradual analysis of the environment and the variables in selection
process. The process of segmentation beings from defining the business itself and runs until a
brand positioning statement is secured by a dynamic marketing mix in a given context.




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2.1   Scope
As professor Theodor Levitt mentioned in the article, ‘Marketing Myopia’ business scope can be
defined as finding answers to the question of “what business are we in?” (Levitt, 1975) This is
the origin of the marketing strategy development. The Business Scope consists of set of
customers, who have a mutual basic need to be fulfilled. This is also defined by the term
‘Terminal Customer Value (TCV)’ that consists of sub instrumental and terminal values. It also
has the characteristic of being able to be satisfied in many forms. These forms are present for a
TCV to be identified and achieve as much as possible and integrate them to a solution which will
enable to launch a sustaining product that is capable of holding out trials of time.

It is crucial to identify these in order to trace what the customers really want in a given context.
If the business scope is narrowed a firm may face the risk of being ‘Myopic’. A narrowly defined
scope has its own adversarial consequences that would ultimately lead to market failure in the
long run, or either being dominated by competition, or by the product life cycle itself. Being
Myopic is one of the unavoidable interrogations that the organizations face at this stage.
Furthermore it is rather important to monitor whether the company scope is expanding or
shrinking and act upon it.

In the context of Ceylon Business Appliances, we can see that the scope of the business in which
the company operates is Corporate Solutions. CBA has identified and is in the process of
practicing the scope in the markets that it operates. This is quite obvious from its Mission
Statement.

“Maintaining and further nurturing our solidarity with our valued customers and providing
highly personalized and customized service in a customer friendly atmosphere with total
dedication and commitment with a sense of responsibility in achieving all set objectives of the
both partners in business.”

The mission has successfully presented the forms of Company’s goals of bridging the gaps in
order to guarantee the state of the art working environment enhancing the overall productivity of
its customers towards accomplishing development targets towards nation building.




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2.2     Space
In what market are we in; out of the many forms that are available is the main question that
organizations usually come across. This emphasizes the need to curve out the space from an
existing scope. Since there are many instrumental values and many forms that the customers
express, the underlying core value, the Values Expressive Context (VEC) is addressed in this
context.

Figure 2-2 - carving out a market space out of the business scope




                                                Selected Market Space
                                                                                       Business Scope




In the field of Corporate Solutions as applicable to CBA, in order to provide a guaranteed state of
the art working environment and to enhance the overall productivity of its customers the
following forms are available from many.

Table 2.1 - Different forms of Market Space

     Banking Appliances                                           Card Solution
         o Point of sale Machinery (POS                             o ATM cards
            machines)                                               o Identity cards
         o ATM
         o Cheque Scanners

     Office Appliances                                            Stationary
      o Photocopiers                                                o General purpose
      o Printers                                                    o Computer stationery & equipment (E.g.
      o Time Recorders                                                  Blank DVD’s, CDs)
                                                                    o Schooling activities




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   Table 2.2 - TCV and its many product forms

                            TCV                                   Product Forms

                Corporate Solutions                   Office Appliances
                                                      Banking Appliances
                                                      Stationery
                                                      Card solutions
                                                      Computer Software Packages
                                                      Data Solutions


   Thus in definition, a product space is carved out of the available scope to operate in, in order to
   address the needs of the people through Value expressive context. It is evident that with the
   selection of Corporate Solutions as the business scope and Office Automation, as the Space for
   the business model has been crafted to offer and meet all the above value expressive settings in
   some way or the other.

Figure 2-3 Office Automation from a bigger scope




   Thus in definition, a product space is engraved out of the available scope to operate in, in order
   to address the needs of the people through Value expressive context. In order to define the
   boundaries of the space, the following needs to be answered. Having the knowledge of the below
   will ensure that they are not overlapped with others and will provide an outline and a direction
   on where to operate.




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2.2.1 Value Expressive Context Analysis
Figure 2-4 - Customer value in context




                                         Who (Typical
                                          Customer




                          What              Value
                        (Principle        Expressive
                                           Context           When/Where
                         Benefit
                        Location)           (VEC )




                                         How (Mode of
                                             Use)




    o To Whom CBA’s new product offering is going to cater to?

With regard to the offering a wide space is defined from individuals to corporate entities that
want to engage in transaction processing faster and that require a high level of security and those
that value mobility. In this context not only banking transaction are concerned but also
individuals and corporate entities that are willing to engage in nonbank transactions are
concerned in this context.

    o What need is CBA’s new product offering is going to cater to –

Is the new product going to just sort out mere transactions only or whether there will be any
value adding applications such as loyalty card point counting, prepaid top up, gift cards &
lottery? CBA should focus on with regard to the offering at this stage.



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   o Where and When CBA’s new product will be offered?

Where and when the services will be offered, Is it going to be Island wide offering, Is the
services available 24/7?, When and where personnel have access to purchase the product are the
kinds of question being addressed by this.

   o How would CBA’s new product or Services will be offered?

Typically for office automation, concerns are on how the terminals will be offered to the
customer? Is it through a bank that the firm is going to offer the product or is it through direct
personal selling? These are the criteria addressed with regard to this context.




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2.3   Segment
Segmenting is the process of allocating similar customers with similar needs to a single segment
while ignoring intra segment commonalities and while considering inter-segment differences
based on the degree of complexity. Additionally the need and the affordability of the given
market are also taken in to consideration. These allocated groups based on distinctive
characteristics and behaviors require different individual marketing strategies in order to serve
each and every group in the best possible way.
         Figure 2-5 Segmenting the selected space




The SADAM concept illustrates the basic needs in selecting an effective market segment.

Figure 2-6 - SADAM factors




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  The usual two questions are encountered in order to segment a given market space. These are
  governed by Who and Why. In terms of CBA, the segmentation provides an intuition when it’s
  coupled with the hierarchy of needs by Prof.Uditha Liyanage.



  Figure 2-7 The Value pyramid as perceived by the rational consumer



                                           Psychological

              Value of Me
                                                Social


                                             Relational


                                            Experiential
Value for Me


                                             Functional



  Point of Sales Machinery of Ceylon Business Appliances consists of several functional, social
  and experiential needs. If discussed in detailed, this include transaction processing as the primary
  functional need that wide spreads from banking to non-banking sectors. Being this the primary
  functional need, there are people who would want to own the service for the convenience in
  order to meet the requirement.

  Moving one step up is the experiential need which consists of experiencing Speed and security.
  Up to recent times POS machines lacked sophisticated security functions and speed which
  address the need of convenience. The machine is built with the powerful 32-bit ARM9 micro-
  controller which assures faster and reliable transaction. GSM/GPRS mobile communication
  backup with Ethernet or dialup modem ensures uninterruptable online transactions.




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Social needs are the next move in this outline, where a customer wants to belong to a group that
has the mobility of carrying out transactions in different places under different circumstances. In
this context mobility is highly valued. Besides, the machine offers large memory option (up to
32MB SDRAM and 512MB NAND Flash) to cater for large data storage required by multi-
application at different access points.

Along with the relational needs that the value pyramid suggests, the user wants to become a
member of having mobile Point of sales solutions which could eventually save costs and
capitalize on high performance levels. As a result the customer can use a single machine for
multiple uses which is rather convenient. Finally psychological needs of the consumers are met
by the user actualizing the mobile Point of Sale solutions as his characteristic. The GSM
technology and dial up modems provides an added advantage in this context for the customer to
achieve this need.

Combined with the SADAM characteristics and the needs hierarchy as discussed above, chooses
the following as the customer segmentations for this offering.

       Segment 1 – Banking fixed line segment. – This segment caters the Point of sales
        terminals that used for banking financial transactions with the fixed line connectivity.
        This has to use wired PSTN phone connection to perform transactions.


       Segment 2 – Banking mobile segment – This segment caters the consumers who want
        portability security and speed of financial transactions. The segment consumers are
        mostly high volume and secured customers


       Segment 3 – Non-banking segment – this segment caters the consumers who want
        terminals that are certified for non-financial transactions. These terminals are less
        secured. Mostly used in attendance systems, Bus ticket systems.




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Table 2.3Market Segments for CBA's POS terminals

Segment Name                                            Banking Fixed line            Banking mobile                  Non-Banking
WHO Buys                Geographic                   Urban/ Sub Urban/ Rural              Urban                  Urban/ Sub Urban/Rural

                        Demographics
                        (Based on the size of the             Small                       Large                         Medium
                        company)
                        Physiographic                  o   Connectivity           o   Speed                      o   Mobility
                                                       o   Functionality          o   Security                   o   Security
                                                                                  o   Mobility
WHAT is bought          Benefits Sought                o   Uninterrupted          o   More transactions          o   Customer Security
                                                           connectivity in        o   Inbuilt printer            o   Inbuilt Printer
                                                           comparison             o   Customer security
                                                                                  o   Mobility
                        Price Paid                             Low                        High                          Medium
                        Product Attributes          Use of basic PSTN          Flexible communication         Comprises of both PSTN and
                                                    telephone connection       options with                   GSM/GPRS/Wifi/CDMA
                                                                               GSM/GPRS/Wifi/CDMA             communication options
                        Usage Rate                             Low                            High                      Medium
HOW                     Purchase Frequency                   4-5 years                   4-5 years                      4-5 years
WHEN                    Occasion                       o   Individual             o   Fuel Stations              o   Supermarkets
                                                           Merchants              o   Hotels                     o   Hotels
                                                       o   Airline Ticketing      o   Department Stores
                                                       o   Educational            o   Exhibitions and trade
                                                           Payments                   fairs




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2.3.1 Consumer Profile

Consumer profile has to be done for each segment to analyze how the consumer’s perspective on
the product.
The product or service is a bundle of value attributes that determines the purchasing factor.
These attributed are called “Key Purchase Determinants” (KPD). They are then ranked
depending on the importance on each from consumer’s perspective.

The KPDs selected for the segments are as follows

Table 2.4 - Selected KPDs

               KPD                                          Description
      Customer Support      Consider the customer support and software upgrade services for
                            customer requirements
         Functionality      Whether the mandatory features are available such as Magstripe readers,
                            Chip cards readers, display etc.
    Value added features    Whether extra value added features can be programmed to the machine

      Transaction speed     Speed of the transaction approval. Faster approvals are better

     Transaction security   The security of the transactions meets all international standards. IE:
                            ISO8583
          Durability        Whether the machines can work in coarse environments and whether they
                            suit Sri Lankan Power and climate requirements.
          Portability       Whether the machines are portable and have mobile connectivity



The KPDs are then ranked according to the importance of each segment. They are as follows,




2.3.1.1 Consumer profile of segment 1
In the consumer profile

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Table 2.5 - Consumer Profile for Segment 1

                                      KPD            Importance (scale 1 – 10)
                               Customer Support                 7
                                 Functionality                  8

                                Added features                  5

                               Transaction speed                5

                              Transaction security              10

                                   Durability                   6

                                   Portability                  3




2.3.2 Consumer profile of segment 2
Table 2.6 - Consumer Profile for Segment 2

                                      KPD            Importance (scale 1 – 10)
                               Customer Support                 7

                                 Functionality                  8
                                Added features                  8
                               Transaction speed                9
                              Transaction security              10
                                   Durability                   7

                                   Portability                  8




2.3.3 Consumer profile of segment 2
Table 2.7 - Consumer Profile for Segment 3

                                      KPD            Importance (scale 1 – 10)



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                          Customer Support                     6

                            Functionality                      8

                           Added features                      7
                          Transaction speed                    7

                         Transaction security                  8

                             Durability                        7

                             Portability                       7




2.4   Serve
The 4th S can be categorized as the competitor analysis segment. In this section the key purchase
determinants and their importance are analyzed with the offerings of the competitors and the own
organization. This analysis has to be done for each segment to have an idea about their offerings.




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After rating each competitor total score for each is calculated by multiplying with the
importance.

The market players are as follows,

        CBA – Ceylon Business Appliances (Pvt) Ltd., (Own Organization)
        Competitor 1 – EPIC Lanka (Pvt.) Ltd.,
        Competitor 2 – Data Management Systems

Table 2.8 - Competitor Analysis for Segment 1

               KPD                    Importance             CBA         Competitor 1     Competitor 2
                                      (scale 1 – 10)   (scale 1 – 10)    (scale 1 – 10)    (scale 1 – 10)
         Customer Support                       6             7                3                 4

           Functionality                        8             7                8                 8

          Added features                        7             7                6                 5
         Transaction speed                      7             7                4                 5

        Transaction security                    8             8                8                 8
            Durability                          7             4                8                 7

            Portability                         7             2                2                 3

                      Total Score                      285              269               273

                     Percentage %                      0.36             0.34              0.34



The competitor analysis of Table 2.8 reveals that all three market players have almost equal
offerings to the competitor although CBA has a slight edge.



Table 2.9 - Competitor Analysis for Segment 2

               KPD                    Importance             CBA         Competitor 1     Competitor 2
                                      (scale 1 – 10)   (scale 1 – 10)    (scale 1 – 10)    (scale 1 – 10)
         Customer Support                       6             7                4                 4

           Functionality                        8             7                3                 5



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         Added features                     7                6                3                5

        Transaction speed                   7                8                4                4

      Transaction security                  8                9                9                9
            Durability                      7                7                7                5

            Portability                     7                6                6                5

                      Total Score                          412              299              309

                    Percentage %                           0.52             0.37             0.39



According to the above Table 2.9 CBA has the very significant offering over the competitors.

Table 2.10 - Competitor Analysis for Segment 3

               KPD                    Importance           CBA          Competitor 1     Competitor 2
                                      (scale 1 – 10)   (scale 1 – 10)   (scale 1 – 10)   (scale 1 – 10)
        Customer Support                    6                6                7                7
          Functionality                     8                4                5                5
         Added features                     7                3                3                3

        Transaction speed                   7                5                4                7
      Transaction security                  8                9                9                9

            Durability                      7                4                6                6

            Portability                     7                7                8                8

                      Total Score                          273              301              322
                    Percentage %                           0.34             0.38             0.40



As shown in the above Table 2.10 the competitors have a clear advantage compared to CBA on
their offerings.

2.5    Sense
This step is one of the important sections where it senses the market opportunity available. The
market opportunity is where the organization can capitalize on obtaining the competitive



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advantage. This step can be used to determine whether the sensing opportunity available is “Blue
Ocean” or “Red Ocean”.

The analysis is done using the EXPECT-GET Matrix. This exercise analyzes the current market
expectations against the current market offerings. To do the EXPECT-GET Matrix the KPDs are
analyzed using the consumer profile and competitor offerings stated in above sections 2.3.1 and
2.4 respectively. The ratings are given as per the Table 2.11 below.

Table 2.11- Expect Get Rating

                       Value      0                1–3        4-7      8-10
                       Rating     NIL              LOW        MEDIUM   HIGH



The result of this exercise is the Market Opportunity Statement (MOS) where it helps to exploit
the market plan by distinguishing the strong and weak offerings. This will enable the
organization to capitalize on each attribute. One the KPDs are rated in the matrix the market
opportunity can be determined as per the Table 2.12 below.

Table 2.12 - Market Opportunity Determination

Expect               Get                Action
HIGH                 HIGH               Maintain
HIGH                 LOW                Raise
HIGH                 NIL                Blue Ocean(Untouched Market) create
LOW                  HIGH               Reduce
NIL                  HIGH               Eliminate




2.5.1 Expect Get Analysis for Segment 1 (Fixed line Banking)
Figure 2-8 - EXPECT GET MATRIX -Segment 1

                                                                 EXPECT
                                     HIGH                   MEDIUM        LOW        NIL
                   HIGH              Durability,
                                     Functionality,
                                     Transaction Security


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                 MEDIUM                                 Added features,
                                                        Transaction speed

          GET
                 LOW
                                                        Customer Support,      Portability


                 NIL




2.5.2 Market Opportunity for segment 1
The market opportunity for this segment is to increase the customer technology support and
reduce the concentration given to the portability segment.

2.5.3 Expect Get Analysis for Segment 2 (Mobile Banking)
Figure 2-9 - EXPECT GET MATRIX -Segment 2

                                                                      EXPECT
                                 HIGH                   MEDIUM                 LOW           NIL
                 HIGH
                                 Transaction Security
                                                        Customer Support,
                                 Added features,        Durability,
          GET MEDIUM             Portability            Functionality,

                 LOW
                                 Transaction speed


                 NIL



2.5.4 Market Opportunity for segment 2
The market opportunity in this segment is to raise the transaction speed, add more features and
the increase portability of the product to get better market share.




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2.5.5 Expect Get Analysis for Segment 2 (Non-Banking)



Figure 2-10 EXPECT GET MATRIX -Segment 3

                                                                     EXPECT
                                HIGH                   MEDIUM                 LOW      NIL
                HIGH
                                Transaction Security   Portability
                                                       Transaction speed
                                ,                      Customer Support,
          GET MEDIUM            Functionality,         Durability,
                LOW
                                                       Added features


                NIL




2.5.6 Market Opportunity for segment 3
The market opportunity for the particular segment is to raise the functionality of the product and
add more features that the customer requires.




2.6   SWOT
Market opportunity specific SWOT helps to exploit the market opportunity identified. This helps
businesses to determine whether the organization is internally and externally capable of grabbing
the identified market opportunity as illustrated in the below Figure 2-11




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Figure 2-11 SWOT for MOS



                                   External
  Oppertunities                                                   Threats




                                                                        Hinder
Help
                                MOS
    Strengths                                                 Weaknesses


                                     Internal


Environmental Threats Opportunity Profile (ETOP) analysis and Organizational Capability
Profile (OCP) used to analyze the external opportunities and threats of the company and internal
strengths and weaknesses of the company respectively. Both ETOP and OCP have to be
implemented for each segment.

2.6.1 ETOP and OCP analysis for segment 1
The MOS for segment 1 is to improve technology support while maintaining all other
determinants.




Table 2.13- ETOP and OCP analysis for Segment 1

                                                  ETOP Analysis
Key Environmental Factors                  Importance (1-10)       Impact (-5 to +5)   Score
Bank Regulations                           9                       +4                  +36
Distribution Channels                      8                       +5                  +40



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Competition                                7                      +2                   +14
Government regulations                     8                      -1                   -08
                                                                       Total ETOP score +82
                                                                            Percentage 41%
                                                  OCP Analysis
Key Organizational Factors                 Importance (1-10)      Impact (-5 to +5)    Score
Human Resource Availability                8                      +3                   +24
Technology                                 9                      +4                   +36
Brand Name                                 7                      +5                   +35
                                                                       Total ETOP score +95
                                                                            Percentage 63%

2.6.2 ETOP and OCP analysis for segment 2
The MOS of segment 2 is to increase portability of the product, raise the transaction speed and
add more features to get better market share.

Table 2.14- ETOP and OCP analysis for Segment 2

                                                  ETOP Analysis
Key Environmental Factors                  Importance (1-10)      Impact (-5 to +5)    Score
Bank Regulations                           8                      +5                   +40
Distribution Channels                      7                      +5                   +35
Competition                                7                      +4                   +28
Government regulations                     7                      -1                   -07
Mobile Network Availability                8                      +3                   +24
                                                                       Total ETOP score +120
                                                                            Percentage 48%
                                                  OCP Analysis
Key Organizational Factors                 Importance (1-10)      Impact (-5 to +5)    Score
Human Resource Availability                8                      +3                   +24
Technology                                 9                      +4                   +36
After Sales Service                        8                      +5                   +40
Brand Name                                 7                      +4                   +28
                                                                       Total ETOP score +128


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                                                                            Percentage 64%



2.6.3 ETOP and OCP analysis for segment 3
The MOS of the segment 3 is to raise the functionality of the product and add more features that
the customer requires.

Table 2.15- ETOP and OCP analysis for Segment 3

                                                  ETOP Analysis
Key Environmental Factors                  Importance (1-10)      Impact (-5 to +5)     Score
Distribution Channels                      8                      +4                    +35
Competition                                7                      -1                    -07
Government regulations                     7                      -1                    -07
Customer Perception                        8                      +2                    +24
                                                                       Total ETOP score 45
                                                                            Percentage 22%
                                                  OCP Analysis
Key Organizational Factors                 Importance (1-10)      Impact (-5 to +5)     Score
Human Resource Availability                7                      +4                    +28
Technology                                 8                      +3                    +24
After Sales Service                        7                      +4                    +28
Brand Name                                 8                      +4                    +32
                                                                       Total ETOP score +112
                                                                            Percentage 56%

2.7       Select
The purpose of the select stage is to choose the correct segment by considering the analysis done
in the above sections. The criteria used to implement the Select process can be categorized into
two sections.

          Segment Attractive Analysis

           ETOP, OCP, profit estimate, growth estimate, and volume estimate are used to rank the
           segments.


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         Company Capability Analysis

          Companies’ internal capability with the competitors is used to rank the segments.

The results of the above two analysis are then used to get the segment which offers HIGH-HIGH
result.

Figure 2-12- Selection Criteria for Segments

                                                             Competitor Attractiveness
                          Segment Attractive




                                                             HIGH              LOW


                                                  HIGH


                                                  LOW




2.7.1 Segment Attractive Analysis
Table 2.16- Segment Attractive Analysis

Segment Name                          ETOP            OCP    Segment Opportunity                               Overall
                                      %               %      Volume (units)     Profit %        Growth %       Ranking
Fixed line Banking                    0.41            0.63   1000               0.40            0.10           2
Mobile Banking                        0.48            0.64   2000               0.35            0.20           1
Non-banking                           0.24            0.56   1000               0.25            0.10           3



2.7.2 Company Capability Analysis
Table 2.17 - Company Capability Analysis

Segment Name                                                                                               Overall
                                               Own Org (CBA)          EPIC Lanka         DMS               Ranking
Fixed line Banking                             0.36                   0.34               0.34              1
Mobile Banking                                 0.52                   0.37               0.39              1
Non-banking                                    0.34                   0.38               0.40              3




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From the above Table 2.16 and Table 2.17 the Segment 2 – mobile banking has both HIGH –
HIGH ranking.

From all the above analysis it can be concluded that CBA and pursue Mobile Banking segment to
get a competitive advantage and increase the market share.




2.8    Size
After identifying the viable segment to pursue next step would be to size the segment with proper
objectives and goals both qualitatively and quantitatively to reach the goal.

Customer satisfaction, segment migration targets, increasing customer base, time periods is some
of the criteria that have to be concerned.

CBA has a 5 year growth estimate plan increase the total number of machines in the market.

Table 2.18 - Growth Estimate 5 year plan

                            Year             2012 2013 2014 2014 2016
                            Total no of units 1000 2500 5000 7500 10000



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CBA also has a 3 year plan to increase the market share estimate that categorized by banks.

Table 2.19 - CBA Market Share Estimate 3 year plan

                                   Year     Market Share Market Share Market Share
                     Bank                   by 2012      by 2013      by 2014
                     Bank of Ceylon         10%          15%          25%
                     NTB                    10%          20%          25%
                     Peoples Bank           30%          30%          35%
                     Commercial Bank 80%                 85%          90%
                     Seylan Bank            0%           10%          15%
                     HNB                    0%           10%          12%




2.9    Stand
Once the positioning is completed it is required to bring the product to the target customer’s
mindset. This is also known as finding a strategic position in the consumer’s mental filing system
for the product. (Liyanage, Differentiation : The Quintessence of Strategy)

There are five steps that are required to follow when targeting a product in consumer’s mind.
They are namely;

  I.    Identify Consumer Group.
 II.    Target mental Category (Frame of Reference - FOR).
III.    Isolate Key Point of Difference (POD).
IV.     Provide Evidence.
 V.     Develop mental schema.

The five steps when completed are known as Brand Positioning Statement.




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2.9.1 Brand Positioning Statement (BPS) for the Mobile Banking Segment



Table 2.20 - BPS for mobile banking segment

Consumer Group               Banking Sector.
FOR                          Point of Sales Transaction Terminals
POD                          Mobile connectivity
                             Faster transaction completion time
                             More battery power
Reason to believe            Portability of the terminal is important to consumers who want more secure
                             transactions. (hotels)
                             Faster transaction completion time for busy institutions. (Fuel Stations,
                             departmental stores)
                             Inbuilt High Capacity battery provides more number of transitions from a
                             single charge. (Fuel Stations)




Figure 2-13 - Brand Schema for POS terminals

                                                              Efficiency


         Inbuilt High
                                                                              Faster
         Capacity Battery
                                                                              Transaction
                                                                              Time


    Effectivene                                 POS
    ss                                        Terminals

                                                                       Mobile
                                                                       Connectivity


                                                 Portability
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2.10 Seize
Seizing is the process of capturing the market opportunity by using a marketing mix (4Ps: Price,
product, Promotion and place) to realize the position and the opportunity of Market Opportunity
Statements (MOS). Seize is also described as the process of mobilizing the market opportunity.


               Table 2.21 Modes of Brand Expression
                                                      Product



                                              Brand Expression

                         Promotion            Brand Essence      Place
                                              Role , Scope
                                              Value Cluster




     Source: The Chartered Accountant 2010: 17        Price




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The product expression is most fundamental. It must contain and indeed physically encapsulate
the essential elements of value (i.e. functional and experiential) and also provide a basis for the
expression of other values (relational, social and psychological values). The former is a direct
expression of the product and the latter is a proxy for its expression. Toothpaste’s functional and
experiential values delineated earlier are direct.        They are directly related to product
functionality. The other three value types (relational, social and psychological) are derived from
the product.     They, in fact find expression principally through promotion or marketing
communications, such as advertising sales promotion public relations and personal selling.
Moreover, it must be noted that         placing the product is not just a matter of consumer
convenience; it is also a way of expressing the brand’s role and scope and value cluster (i.e.
brand essence). The same is true of the brand’s price. The relationship between cost and price is
often direct and linear. This need not be because price is a way of expressing the brand’s unique
stand or position in the market.(Liyanage, 2010)




2.10.1 Product
CBA’s wireless payment mobile banking POS terminal is designed not only to handle mere
transactions. There are many other features such as Battery support for 18 hours of continuous
non-printing operation and providing the capability of printing over 1000 transaction tickets per
day. With terminal sleep mode the operation can be last for more than 5 days (power down the
terminal logic while maintaining the CDMA/GPRS/Wifi link). As discussed, earlier are added
and bundled up along with it to create a unique product offering to the market. The product is
backed up by the latest commercial technology available in the market ensuring reliability,
security and speed than the offerings of the rest of the competitors in the market.

The stylish wireless payment mobile POS terminal with a large white LCD display is small and
compact that fits the size of a palm where its color could be customized. Additionally the product
consists of a high quality environmental friendly Lithium-Polymer battery with no leakage and
no memory effect. It further has the option to integrate with the merchants ECR system. In this
context these features that are unique to the product would provide an added competitive
advantage; with regard to ensuring reliability, compatibility and security.


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2.10.2 Place
The place refers to where the customers look for your product or service which is also described
as the geographical offering of the product. In CBA’s wireless payment mobile banking offering
is directly through personal selling or through a banking agent. The marketing sales force of
CBA promotes the product after gaining the approval for the offering from banks.

2.10.3 Promotion
Promotions refer to where and when you can get across your marketing messages to your target
market. It is also positioning of the brand and the product as desired in the mind of the
consumers and creation of awareness.

CBA has chosen wide method of delivery of the product on the consumers by a different few
means of media that is available. These include Newspaper advertisement, catalog and brochure
promotions, referrals by banks, personal selling as well as internet advertisements. The product is
promoted with the slogan of ‘Enable Payment, Anywhere, Anytime’.

As the product is highly focused on security, reliability, mobility and speed the promotional
campaigns make sure the message is taken across the merchants and segments that are need to
address.

2.10.4 Price
The price is denoted as; the value of the product or service to the buyer. The perception of any
given market is that when you offer a technologically advanced product, that it usually costs a


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lot. It applies in the same manner in this context as well. The wireless payment mobile banking
POS terminal has a rather inelastic demand since it usually deals with a high profile segment.

For those banks who do not wish in invest on the products that involved high quantities CBA
offers “Rental Scheme” pricing division. Where the bank has to pay only the monthly rental for
the number of terminals that they are using.




3   CONCLUSION
The purpose of this report is to develop a marketing strategy for a brand that is available in the
market using the 10S principles.

For the purpose the Point of Sales Terminals of Ceylon Business Appliances (Pvt.) Ltd., has been
utilized and illustrated on how the steps in 10S concept, namely Scope, Space, Segment, Serve,
Sense, SWOT, Select, Size, Stand and Seize provides support in implementing a marketing
strategy for a product and how the process can be used to identify new markets available.

The Mobile Banking segment has been identified as the segment that can be utilized to gain
competitive advantage in the market.

It is evident that Prof. Uditha Liyanage’s 10S marketing strategy steps can be successfully
implemented in cooperate environments.




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4     REFERENCES
[1]     Agnihotri. P, A. G. (2010). Principles of Marketing : A South Asian Perspective, 13th Ed.
        New Delhi: Prentice-Hall.

[2]     CBA. (n.d.). About us. Retrieved 03 25, 2012, from Ceylon Business Applainces:
        http://www.cba.lk

[3]     Levitt, T. (1975). Marketing Myopia. Hardward Business Review.

[4]     Liyanage, D. U. (2010). The Anatomy of a Brand. The Chartered Accountants, 14-17.

[5]     Liyanage, D. U. (n.d.). Differentiation : The Quintessence of Strategy.




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