MARK 2120 Spring 2014 Life of Pi L10

Table of Contents
Executive Summary....................................................................................................................................... 2
Current Market Situation ............................................................................................................................. 2
Customer Analysis:.................................................................................................................................... 2
Competitor Analysis: ................................................................................................................................. 2
Company Analysis: .................................................................................................................................... 2
SWOT Analysis: ..................................................................................................................................... 3
Objectives ..................................................................................................................................................... 5
Early Stage Objective ................................................................................................................................ 5
Maturity Stage Objective .......................................................................................................................... 5
Marketing Strategy....................................................................................................................................... 5
STP............................................................................................................................................................. 5
4P .............................................................................................................................................................. 6
Action Plan.................................................................................................................................................... 8
First year ................................................................................................................................................... 8
Second year............................................................................................................................................... 9
Budget and Controls ................................................................................................................................... 10

M3D is now preparing to enter the Hong Kong Market which aim to bring a new revolution to the 3D
printing market in Hong Kong. The Micro, is an affordable home-based 3D printer, which targeted the
tech-savvy, people with individuality and the practical users in Hong Kong.
Alongside with the product, a platform will also be provided for sharing the blueprints which can
enhance users experience of using the Micro and foster the friendship among the users.
To carry out this revolution, we plan to open a specialty store to sell The Micro and related products
in Central to attract the tech-savvy. An online shop will also be opened for users to place order.

Customer Analysis:
Customers in Hong Kong are generally more tech-savvy, they are more willing to try innovative
product. According to the statistics, the ownership of smartphone reached 385,000 units in Hong
Kong once it has been introduced since 2007. Furthermore, there is a tremendous growth in
smartphone ownership over time. In 2013, the smartphone penetration has proliferated, to 87%,
which is the highest in the Asia- Pacific region. With such characteristics, Hong Kong will be a potential
market for selling the newly developed home-based 3D printer.

Competitor Analysis:
Strictly speaking, we will be the first mover in introducing home based 3D printing to Hong Kong.
Since 3D printing is still an innovative technology, it is not widely accessed by the general public in
Hong Kong. There are only limited types of home-based 3D printing sold in the US, but it is costly and
complicated to purchase them in Hong Kong. As a result, it will be at consumers great convenience
if we establish a specialty store to store these printers in Hong Kong.
Closer substitute may be the 3D printing services offered by companies. However, such service is
much less user-friendly than the home-based 3D printing. It has differentiated by allowing
customization and providing home service. With such advantages, a market can be created for homebased 3D printing.

Company Analysis:
People have great interest in the technology in 3D printing, yet there is no channel for the consumer
to access 3D printing easily as they can only rely on limited companies to experience 3D printing.
Observed this opportunity, we decide to introduce the Micro, home-based 3D printer, to serve the
convenience of Hong Kong consumers. To further provide convenience to the customers, an exclusive
blueprint library is offered as an augmented service. It is an online platform provided by M3D which
offers numerous useful blueprints designed by the technicians, allows sharing of customized

blueprints among users and facilitates discussion about news and experience among users. This
platform can be regarded as a switching cost to the customer and alleviates the threat from copycats.
There will be a specialty store established in PMQ, which is a new landmark in Central where
innovative items agglomerated. It aims at providing convenience to the target customers. In the
specialty store, both the Micro and the filaments, the ink of 3D printer, will be sold. Most
importantly, regarding the lack of customers knowledge, supporting staff will be hired to solve
customers enquiries and demonstrate how to use the printer. All the measures above aim at serving
the convenience of the customers in the first priority.

SWOT Analysis:
M3D home-based 3D printer has several strengths, including the well-established brand popularity
and the first mover advantages in Hong Kong. Correspondingly, weakness is the lack of brand
awareness and sufficient knowledge about 3D printing in Hong Kong. However, there are still
opportunities for the Micro,
Strengths
As the pioneer in home-based 3D printing, the M3D enjoys the several advantages.
1. First mover advantages. As the first comer to create the market for home-based 3D printing,
majority of market share will be seized. Moreover, economies of scale can be enjoyed as well while
the market starts growing.
2. Well-established popularity. Both the brand and product itself possess sufficient popularity around
the globe. For the M3D, it has already created its Facebook page and YouTube channel to display
their news and products regularly. For the Micro, it is not only one of the most popular projects on
the Kickstarter, it has also participated in the first 3DPrint Show1 to demonstrate how to use it. With
such popularity in the world, it is comparatively easy for the product to gain trust from Hong Kong
consumers.

Weakness
As a newly developed product in Hong Kong, some difficulties have to be overcome.
1. Insufficient knowledge. Since 3D printing is an advanced technology to most of the Hong Kong
consumers, not many people are familiarized with this technology. Part of the consumers may be
daunted by complications in learning and using the Micro, and avoid buying the Micro.

Sevenson, B. (2014, February 16). M3D, Micro 3D Printer Unveiled, Priced at $199 on Kickstarter Next Month.
Retrieved May 19, 2014, from http://3dprint.com/1071/m3d-micro-3d-printer-unveiled-priced-at-199-onkickstarter-next-month/

2. Lack of awareness towards the brand. Despite the fact that M3D has already gain popularity
worldwide, its brand image is not well developed in Hong Kong. In Hong Kong, M3D is still a new
brand that takes time to be well defined by consumers.

Opportunities
There are some external factors facilitating the growth of the market.
1. Consumers awareness towards 3D printing. Although people generally do not have sufficient
awareness towards the brand in Hong Kong, they do pay attention to the technology. Since the
technology is in the spotlight, with numerous news showing its amazing functions, that attracts the
attention from consumers. So, there is a potential market for the Micro.
2. New market. Since there is no existing company in Hong Kong selling home-based 3D printer, it is
a great incentive to become the first mover to create a new market to seize the majority of revenues.

Threats
There are external obstacles hindering the growth of the product.
1. Copycat. If the introduction of the Micro successfully earn considerable revenues, copycats appear
inevitably if they see the opportunities Price pressure will be exerted from the copycats since they
will offer lower price in general to attract our existing customers. In order to survive, it is necessary
to keep renovating the Micro and impose switching costs to existing customers.
2. Increasing indirect costs. Since there will be a specialty store established, in which supporting staff
for enquiries will be provided. As the rental fees and salaries level in Hong Kong keeps climbing, it can
be a burden if costs are not controlled well.
Strengths
1. Well-Established popularity

Weakness
1. Insufficient knowledge of 3D printing
technology

2. First Mover Advantages

2. Lack of Brand awareness
Opportunities
1. Attention towards 3D printing

Threats
1. Copycat

2. New market

2. Indirect costs

Our goal in both early stage and maturity stage is as followed.

Early Stage Objective

Since the technology of 3D printing is not widely spread in Hong Kong yet, the targeted market size
is not large. We aim at selling a total of 3 million units of the Micro in the first 5 years.

Maturity Stage Objective

After five year of introduction, the technology should be adapted by Hong Kong users. With more
and more consumers know how to use 3D printing, the target sale can be more aggressive, reaching
5 million units of printer in total.

STP
Segmentation
We understand that the 3D printing is a very new technology and the users are required to be
computer literate in order to operate the printer. Therefore, in the introduction stage, we are
targeting people who are from age 20 to 40. These group of people grew up with internet and usually
the tech-savvy. Based on the sales volume of smart phone in 2007, it is estimated that 5% of Hong
Kong population are tech-savvy. Yet, as the 3D-printing technology grows, it is expected that it will
be widely adopted by the households in the near future. We expected that the household with
monthly income of $15000 or above would able to afford for the 3D printer and they accounted for
42% of Hong Kong population, according to Hong Kong Census and Statistic Department.

Targeting
We are targeting three main types of consumers: tech-savvy/kidult, people with individuality and
practical users. When the product is first introduced, it is expected that the products can attract
people who are tech-savvy and kidult. These types of people are eager to try new things and may
perceived the 3D printer as a toy. However, they are the short-term consumers, and we also need
to target the long-term consumers, people with individuality and the practical users. People with
individuality usually treasures uniqueness and style and they would like something that are
personalized and customized for them. The 3D-printer would allow them to design and create their
own items and it is expected that they may purchase latter version of Micro to further perfect their
own items. For the practical users, they are usually the people who are age 35 or above and have
formed their own families. They values the functionality of the products and Micros ability to print
large variety of goods would sound appealing to them. Besides, one of the features of practical users
is that, once they have purchased the products, they must use it frequently. Hence, it is expected that
they would be the largest consumer of filaments.

Target Consumers
Tech-savvy /kidult
People with
individuality

Needs
New toy
Personalized and
customized items

Features
Brand new technology
Flexibility in designing
creating their own blueprints

Practical users

Functional products

Ability to print large variety

of goods

Impacts
Short-term
Long Term:
Purchase latter
version of Micro
Long term:
Largest consumer
of filaments

Positioning
We aim to position the M3D as the pioneer of home-based 3D printing in Hong Kong, whenever
people think of 3D-printing, the M3D would pop-up in their mind. Besides, we would also like to
position ourselves as innovative and affordable. As The Micro has created opportunity for people to
utilize their creativity to create items of their own needs and style, most importantly, this can be
achieved at a reasonable price.

4P
Price
Our major product M3D printer is planned to be sold at HKD 3888 per one. Since our first targeting
customers are mainly tech-savvy people, they can accept buying electronic devices with similar price
to HKD 3888 or even higher. We expect they are capable to buy our product.
For the filament of the printer, it is planned to be sold at HKD 88 per one which can be used to print
around 30 items. The cost of the filament will be lower in long run since there would be more and
more consumption in future. We expect the marginal profit will gradually increase in long term.

Place
There will be two main channels to buy our products. Customers can either purchase directly in our
specialty store or order our products through the online shop.

We plan to locate our specialty store at PMQ in Central. The PMQ is a new landmark that centralizes
many innovative designs and products. It is now one of the favorite place for the young adults who
are looking for artistic, innovative and interesting products and ideas. We believe that we can attract
most Tech-savvy people there. Also, the monthly rent is around HK$18,0002 which is relatively low
compared to other places in Hong Kong Island.
The online shop will be available 24 hours throughout the entire year. Customers can order the
printer and it will be shipped freely. But we require 10 or more filaments in a single purchase to enjoy
the free delivery service.

Product
M3D Printer
Product specification
Our main product, the M3D printer, is a home-based 3D printer
that can print object that are within the size of 74mm: 91mm x
84mm using plastic. It is USB- compatible and supports plug-andplay, which simplify the installation process. It is also compatible
with PC, Mac and Linux.
Sales and transportation
1 pack of black filament will be included with the Micro. We will
also pack the printer in a light package box to reduce the package
cost but still can protect our product.
Blueprint Library
Besides, there will be a label code on the printer. Users can use the code to create an account and
get access into our exclusive blueprint library. We have already upload some templates onto the
library and we expect there will be more and more templates in future. We allow the verified user to
download the blueprint and make changes on top of the 3D model in the platform so that the stuff
they printed will be more unique and personal. At the same time, we also hope that the blueprint
library can act as a 3D printing community where users can share their opinions towards the Micro
and their experience in designing their own blueprints. We also encourage users to share their own
design in the library for free or sell their blueprints in the library (all the fee collected will go to the
blueprint owners).

Promotion
We have already used certain social networking platform to promote our product including Facebook,
Instagram and Weibo. To further educate the public, we invite some famous YouTube bloggers to
film a video about how to use the software to build a 3D model and how to print it.
We will offer a 10% discount once the consumer checks in at our specialty store. By the power of
word of mouth, we believe that this can boost our public awareness.
2

Chow, V. (2012, December 07). Enterprising designers offered space at former PMQ. South China Morning Post,
Retrieved from http://www.scmp.com/news/hong-kong/article/1099278/enterprising-designers-offered-spaceformer-pmq.

The Micro will be introduced in early December which is the month of Christmas. People would have
higher purchasing incentive and holiday mood to buy thing for themselves and their friends. Here is
the summary of our action plan in the first two years to achieve our stated objectives.

First year
December 2014
Firstly, we will introduce The Micro on our established website. Our online shop will be
on the website. We will launch an advertising campaign for $30,000 to promote The
Micro and also the online shop. At the same time, we will open account on Facebook,
Instagram and Weibo, which are the popular social networking platforms that Hong
Kong people use today, to increase exposure in Hong Kong.
January 2015
Our specialty store will be opened in this month. Customers will be able to buy The Micro and
filaments at the store. There will be about 2 staffs providing technical support to the customers and
all staffs will be able to share their 3D printing experiences with the customers. A 10% discount will
be offered once the customer checks in at our specialty store.
February 2015
Our blueprint library will be opened in this month. All the staffs at the store should be trained to be
familiar with using the library so that they can introduce and teach the customers how to use it. In
this initial stage, the blueprint library will offer the designs by our designers only. Every customer who
buys The Micro can get an account log in to the library.
March 2015
We will invite some famous YouTube bloggers to film a video about how to use the software to build
a 3D model and how to print it.
April 2015
Customers will be encouraged to design their own 3D objects. The blueprint library will add a field
for customers to upload their own designs and share with other users.
May 2015
No special actions will be taken in this month.
June August 2015
A design competition will be held so as to stimulate customers to share their designs onto the library.
Customers can join the competition by uploading their designs of a 3D object. This is opened for
participation for 2 months from June to July. The result will be announced in August. The winner will
receive 50 filaments.
September November 2015
We will conduct a survey in order to estimate our product awareness in Hong Kong at the current
stage. We will also ask customers to fill in a survey about their preferences of the color of The Micro,
filaments and any improvements in our products. We will communicate with our suppliers to
manufacture new colors of The Micro and filaments.

Second year
December 2015
A 20% off discount will be offered once the customer checks in at our specialty store and a 10% off
discount on online store in this month to boost sales in Christmas period.
January February 2016
An Instagram Competition will be held. Customers will be asked to take a photo of their 3D object
produced by The Micro and then upload it to Instagram. They have to hashtag #D3Y (Do-3D-Yourself)
and tag our account in order to join the competition. This is opened for participation in January. The
result will be announced in February. The winners will receive a cash coupon of $500 to shop at the
specialty store.

March April 2016

No special actions will be taken in these two months.
May 2016
New colors of The Micro and filaments will be sold and promoted on online store.
June 2016
Customers can also buy those new colors of The Micro and filaments at our specialty store start from
this month.
July August 2016
A special summer discount price of our products will be offered at our specialty store and also the
online store.
September November 2016
A workshop will be held bi-weekly to teach participants how to use The Micro to print 3D objects at
our store. The workshop will be for free and the participants will get an exclusive 20% discount to
shop at the store within one month. We will also plan to hold more interactive activities to reach
more potential customers in the following years.

Budgets:
We estimate the month sales of the Micro and the ink will be 50 and 200 per month respectively. This
will generate a total monthly revenue of HK$ 234400. The total cost is estimated to be around
HK$142030. The estimated monthly profit will be HK$ 92370. As the Micro becomes more popular in
the market, the sales of the Micro will increase as well as the ink used for 3D printing.

Monthly Budget
Sales :
The Micro
Expected sales: 50 per month
Ink
Expected sales: 200 per month
Revenue
Expenses:
Variable costs
Micro cost
Ink cost
Fixed cost
Rent for PMQ
Wages
Miscellaneous(Utilities, advertisement, insurance
Total expenses:

Net profit:

HK$ 3888/each
HK$ 200/box
HK$ 234400/month

HK$1550/each
HK$ 70/box
HK$ 10530/month
HK$ 30000/month
HK$ 10000/month
HK$ 142030/month

HK$ 92370/ month