CHAPTER I

INTRODUCTION
1.1Background
Evolution Trading Pvt. Ltd.
Evolution Trading Pvt. Ltd. (ETPL) established in 2006 is a trading company with business
interest in distribution and retail of Office Equipments, Electronic Lifestyle and Beverages
products. Evolution Trading Pvt. Ltd. is a leading distribution company in Nepal offering a wide
range of innovative products in mobile handsets and accessories, visual display and audio
solutions, pro-audio solutions, communication solutions and IT peripherals. Evolution has
diversified business interests in beverages distribution and automobiles sales. has representation
for Apple Computers, Konica Minolta, Panaso.
Evolution was incorporated in 2005 as a sister concern of Trade Link International to focus and
expand the distribution network and retail presence in Nepal. Evolution represents a host of
iconic brands like Apple, Panasonic, JBL, Bose, Bosch, ElectroVoice, NEC, Vivitek, Optoma,
Vega and Incase. Our products and solutions reach across Nepal with more than 100 sub-dealers
and retailers and have created a strong brand presence in the sectors we are present in. Trade
Link International is a trading and representation company holding more than three decades of
experience. Evolution Trading Pvt. Ltd with diversified business interest in the distribution and
retail of Electronic Office Automation products, Electronic Lifestyle Products, Beverages and
have recently started an automobile division as a sub dealer for Mahindra Vehicles.

JBL
JBL is an American audio electronics company founded in 1946 by James Bullough Lansing.
Their primary products are loudspeakers and associated electronics. There are two independent
divisions within the company JBL Consumer and JBL Professional. The former produces
audio equipment for the consumer home market while the latter produces professional equipment

for the studio, installed sound, tour sound, portable sound (production and DJ), and cinema
markets. The product which this report is studying is the JBL Bluetooth Speakers.
Product Profile
The products for which promotional strategies are to be made are the New Splash-Proof
Portable Bluetooth Speakers. The four different designs of the product are:
-

JBL Clip+
It is the ultra-light, ultra-rugged, and ultra-powerful portable speaker. This powerful little
box gives 5 hours of battery. Available colours are black, gray and red.
JBL Flip 3
It is a splash-proof portable Bluetooth speaker that delivers surprisingly powerful, roomfilling stereo sound in an ultra-compact size. It features a rechargeable battery that offers
up to 10 hours of playtime, noise and echo cancelling speakerphone, and JBL Connect

technology that wirelessly links multiple JBL Connect-enabled speakers together.

JBL Charge 2+
It has 6000mAH battery and offers 12 hours of playtime with USB charge out, built-in
noise and echo cancelling speakerphone as well as social mode that allows 3 devices to

take turns playing music. Available colours are red and gray.
JBL Xtreme
It is the ultimate splash-proof portable Bluetooth speaker that delivers powerful stereo
sound. It features a massive 10000mAh battery that offers 15 hours of playtime with dual
USB charge out, noise and echo cancelling speaker-phone, and JBL Connect that can
wirelessly link multiple JBL Connect enabled speakers together.

1.2 Statement of the problem

Despite having so much advanced and innovative

features and technically aware

consumers, the product does not seem to find a lucrative market. In country like Nepal,
price sensitivity character of the consumer beats other factors. So it is necessary to
efficiently carve out the proper segment where the product can be effectively introduced to
the consumers. Therefore this research concentrates on surveying the awareness of
consumer about the product and on the basis of which formulating promotional strategies
for the product stated above.

1.3 Objectives of the st u d y

The objectives of our study are as follows:
-

To understand the target segment of customers for the product.

To understand the preference of customers in terms of the features and attributes of

the product.

To understand the current market coverage and market position of the product.

To create a market promotional strategy for the product.

CHAPTER II
RESEARCH METHODS
2.1 Introduction
This chapter is explains the research methods used to meet the stated objectives of the study. The
chapter explains the research process regarding the preference of customers in terms of the
features and attributes of the product and the current market coverage of the JBL. This chapter
explains the collection procedure of data and the methodology used by the researcher for
analyzing the available data.

2.2 Research Design

The research design of the study employs descriptive and causal comparative research design.
The structured questionnaire was used to collect the quantitative data for the survey

2.3 Population and Sample

The main target population for this survey comprise of the higher level students and working
population of Kathmandu. The sample population differs in their age, educational
background,

and

their

work

field.

The

sample is d r a w n f r o m J u d g m e n t a l

S a m p l i n g Technique.

2.4 Sources of Data

The required data for the present survey is obtained from both primary and secondary data.
The p r i m a r y data are collected from primary sources. The primary sources of data
are the opinion survey through questionnaire, field visit and information n received from
the respondents. Secondary data was also used to support the primary data whenever needed.
The secondary information was used from journals, books, newspapers and magazines, websites
and other relevant study materials. The data collection method used in the study was the survey
method. The structured questionnaires was prepared and distributed to the consumers .Consumer
filled the questionnaire themselves.

2.5

Data Collection Techniques

Primary data was used to collect mainly through set of questionnaire. All the questionnaires
were structured.

2.6 Data Analysis Tools

Analysis is important part of study under which the data are presented and analyzed in useful
format. So, after the completion of data collection, all information were gathered, edited, coded
and recorded in SPSS and Microsoft Excel file. Diagrams a r e p r i m a r i l y used f o r
c o m p a r a t i v e studies . This was done through graphs, pie charts etc. Quantitative and
qualitative analysis was also done. All the data collected was processed by using Microsoft excel
and SPSS for obtaining the research result. And, major statistical tool used for data analysis
includes descriptive analysis.

CHAPTER II
ANALYSIS AND RESULTS
This chapter deals with the data background of the surveyed data and then the results of the
statistical analysis and different non-parametric tests done to meet the research objectives.
Analysis of Responses
Profile of the respondents:
Table 1.1: Cross tabulation of Age by Gender
Age
Gender
Male
Female
Total

Count
% within gender
Count
% within gender
Count
% within gender

15 to
25
38
56%
23
74%
61
62%

26 to 35

36 to 45

above 45

3
4%
1
3%
4
4%

3
4%
0
0%
3
3%

24
35%
7
23%
31
31%

Total
68
100%
31
100%
99
100%

The above table represents the cross tabulation of the age group by gender. Male represents 68%
of total population whereas female represents the 31 percent of total population out of the total
respondents of 99. In male category, age group belonging to 15-25 is highest while only 8%
represent the age category above 35 years old. The reason behind high number of respondent in
the 15 to 25 category is because the survey was focused mainly on the music school and the
music lover which we believe belong to this category. As in male category, female respondent are
also high in the age category of 15-25 and low in case of age category of above 35.
Awareness of the product:
Table 1.2: Awareness of Product by Gender
Awareness of JBL Bluetooth Speaker
Gender
Male
Female

Yes
Count
% within gender
Count
% within gender

25
37%
7
23%

No
43
63%
24
77%

Total
68
100%
31
100%

Total

Count
% within gender

32
32%

67
68%

99
100%

The above table represents the JBL brand awareness among the respondents. Out of the
respondents, only 32% had heard about JBL Bluetooth speakers and the rest 68% did not know
about the product. Among them, the brand awareness is low in female in comparison with that of
male.
The above table shows that JBL brand awareness is comparatively low among the respondents.
This shows that the promotional campaign used by Evolution trading to promote JBL brand does
not seem to be effective enough. So, company has to consider using other promotional campaign
which will be effective in creating brand awareness among the customers of this brand.
Awareness of JBL Bluetooth Speakers by Age

Figure 1.1: Awareness of JBL Bluetooth Speakers by Age

The above figure is the JBL Brand Bluetooth Speaker awareness by age. The above figure
shows that the brand awareness is comparatively high in case of 26-35 years category. However,
this percentage is nil for the age category above 35 years. As the brand awareness is high in 2635 years category, they normally belong to the active population group who has independency to

make payment of their purchase at their own. If the company is able to make brand image among
this category of customer, the firm can easily benefits from the independency of the group who
are aware about the brand.
Mostly used products

Figure 1.2: Mostly used products

The above figure represents the product that is mostly used by the respondents. Majority of the
respondents use earphones. The use of earphones is comparatively high compared to other
products as 53% respondents responded with it. Others being 17% in speakers, 12% in-built
speakers, 9% headphones, 6% Bluetooth speakers and only 3% responded sound system. Clearly
it is seen that earphones are more widely used by all.

Sought out qualities in speakers

Figure 1.3: Sought out qualities in a Speaker

When asked about the qualities they seek in a speaker, 44% responded with sound quality, 19%
with portability, 15% with battery backup, 6% noise control, 8% connectivity option and 8%
with speaker controls.

Price Range

Figure 1.4: Price Range

On being asked about the price range the respondents are willing to pay, 64% responded within
0-4000, 25% 4000-7000, 8% 7000-10000, and only 3% above 10000. This shows that our market
is composed of more price sensitive customers.
Preferred Brand of Speakers
The respondents were also asked about their preferred brand of speakers. The responses have
been divided according to gender and are as follows:
(%)
Male
Female

JBL
10
3

Beats
50
36

Philips
15
45

Logitech
7
10

Bose
9
7

Carbon
2
0

Ecoxgear
3
0

This table shows that Beats and Philips are still ahead in the minds of the customers, and not
much prefer JBL products. This can be attributed to the fact that customers know little about the
JBL products. So, much focus is to be given in making the customers aware of the existence of
JBL products.
Factors affecting buying behaviour
Most of the respondents buy the products in the retail stores. The elements that affect their
buying behavior as per their preference are as follows:

Accessibility
Reliability
Availability of alternatives
Store Ambience
Customer Service
After-Sales Service

%
33
35
15
3
7
7

The reliability and accessibility of the store was the most sought out qualities by the respondents
when buying the products. So, Evolution trading should make its retail stores more accessible in
various areas.

Figure 1.5: Desirable Size of the speakers

About the desirable size of the speakers, most of the respondents preferred small and handheld
rather than medium and small.
On being asked about the factors that affects their buying behavior of speakers, 41% agreed to
being influenced by price, 43% by design and warranty and 39% by features followed by brand
and after sales services.
Among the respondents, male were more influenced by design, features, brand, after sales
service, price and warranty whereas female were more influenced by design, after sales service,
price, features, warranty and brand. This shows that in comparison to female, male were more
influenced by features rather than price.

SWOT (Evolution Trading)

STRENGTH
-

New an updated product.

Associated with well known company

WEAKNESS
-

i.e Trade Link International.

-

Strong brand presence

OPPORTUNITY
-

THREAT
-

Price sensitive customers

Porters Five Forces Analysis for JBL speakers

Industry analysis, also known as Porters Five Forces Analysis is a very useful tool for business
strategists. It is based on the observation that profit margins vary between industries, which can
be explained by the structure of an industry.
The Five Forces primary purpose is to determine the attractiveness of an industry. Porter
regarded understanding both the competitive forces and the overall industry structure as crucial
for effective strategic decision-making. The utilization of the Porters five forces model can give
various insights for the industry analysis of JBL speakers. The forces are:
1. Existing rivalry: The existing rivalry among the various competing brands pose a high threat
to the JBL Bluetooth speakers. The rival brands like Bose, Beats, Philips, Sony etc are providing
various models of Bluetooth speakers which aim to capture the market share. Along with the big
rival brands many low end Chinese brands are directed towards capturing the market. They pose
high threats to the JBL brand.

2. Threat of new entrants: The new entrants in the Bluetooth speakers industry pose a high
threat to the JBL speakers. Continuously many new brands and even older brands are introducing
various models of Bluetooth speakers which adds more intense competition. Harman infinity,
Music glow plus 7 etc are the examples.
3. Bargaining power of the suppliers: Powerful suppliers can demand premium prices and limit
the profit for any organization. JBL brand does not face such a huge bargaining power of the
supplier side as the options for choosing the suppliers are numerous.
4. Bargaining power of the buyers: The bargaining power of the buyers has a significant
impact on prices. The awareness of the alternatives of blue tooth speakers, lower propensity to
spend, and choice towards substitutes affects the profitability of the JBL brand.
5. Threat of substitutes: Substitute products are not necessarily the same but they fulfill the
same need of the customer. The substitutes like traditional speakers, earphones, inbuilt phone
speakers, etc pose threats to the JBL Bluetooth speakers. The substitute products are also very
popular and are used by the customers.

CHAPTER IV
MARKETING STRATEGY

4.1. Product Strategy

Product Quality
The challenge for all firms is to set their quality level and ensure that it meets the expectations of
their target market. As JBL brand is known for its quality products, the bluetooth speakers of
JBL score high in this category.
Product features
The JBL speakers provide various features like Bluetooth connectivity, long hours battery
backup, auxiliary input connector, carry case, USB charger, led light etc. These features are
highly appreciated by the customers and respondents.
Product Design
The design of a product can often be the thing that sells it, as this is the most obvious aspect of a
product. Product design is key in the technology sector. The majority of the respondents,
specially men, have considered the design factor as the most influential while purchasing the
product, then followed by brand, quality, price so on. Women in general tend to consider price at
first.
The unstructured interview with the respondents revealed that the design of JBL was not so much
appealing to them. They replied that a comparatively funkier design, crispier colours and
appearance was more appealing to them. Thus, JBL could consider making the design aspect
more appealing to the customers.

4.2Pricing Strategy
Despite of being a high end product, it has not been able to position itself in the market. The
product should focus more on marketing itself so that consumer gets aware of the product and its
high quality features. The actual price range of the product starts from Rs. 4000 to Rs. 50000
which is a quite high price for this kind of product. JBL is stuck between low end product (i.e.
Chinese product) and high end product like beats as the pricing of JBL is high than Chinese

cheaper product and cheaper than beats. JBL should also consider bundling its products so it can
associate its product to high price high value product like Samsung, Sony etc. This will help JBL
to position itself as high price high value product.

4.3 Promotional plan

The challenge facing the JBL Bluetooth speakers is not a lack of innovation but rather of one of
saturation. The recent surge in consumer electronics but lack of knowledge of JBL products
particularly in the speakers market has had a significant impact on sales for JBL speakers. Brand
equity for JBL is quickly eroding due to this market saturation. This Part deals with layout,
development objectives and promotional tactics that retailers needs enact in order to revitalize
the brand.
Establishing the identity of the JBL brand is the foundational building. At this level the first
objective is to establish a connection with the needs of the consumer. The reason for purchasing
a JBL product is to fulfill an audio solution need though Bluetooth. The consumer is looking for
superior quality, functionality and performance, which is the connection to the consumer for
JBL.
The second object at this foundation level is to position the JBL brand in a way that it is top-ofmind for the consumer. Building this brand salience is done through memory association of the
brand elements as well as their overall prior experience of the brand. When a consumer is
looking for an audio solution the JBL brand needs to come to mind. Hence, the following
promotional plans are suggested;
Level 1:
The price point for JBL products places these products out of reach for the average consumer.
Evolution Trading should explore expanding products categories to include a product in each line
aimed at the average consumer. It will be able to increase the performance of the product by
adding a lower price point to the major product categories. For the products it already has,
bundling can be employed. Since, it is a high range product, bundling with laptops or high end
phones can be done.

For example: A customer is less likely to buy Bluetooth speakers worth Nrs 4000 or higher when
his/her cost for his her phone is in the price range of Nrs. 10000 to 15000. Rather bundling it
with high end phones or laptops can create an association to the product.
Level 2:
JBL should move to position themselves for a younger audience. Specifically college students or
recent college graduates. Making JBL products more available not just limiting the majority of
sales through direct purchase but creating attractive displays, mall kiosks, stores-within-stores
and even Cineplex setups. JBL currently comes across as very expensive and dull. Thus,
evolution trading should explore adding excitement to the personality of the brand. This could be
accomplished through print, TV, and Internet advertising.
Level 3:
JBL should participate in event marketing by looking at partnering with local outdoor concert
venues. JBL could explore a branded music festival. JBL Music Festival JBL would be the
headlining sponsors supplying all the pro audio solutions from their professional audio division.
The goal of this would be to build brand creditability as well as help establish the identity of the
professional division.