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BackGround: Inspero Inc. was founded by two MIT MBA students in September 2014 T

ID: 376081 • Letter: B

Question

BackGround:

Inspero Inc. was founded by two MIT MBA students in September 2014

Their vision

“To completely rethink headphones by inventing a new way to experience and interact with sound.”

Vinci’s team now consist of 50 engineers and designers.

They have operations in New York, Bangkok, Beijing & Shenzhen.

In October 2015. Vinci was introduced and released their first headphones.

The product was a success and sold out within six months.

In November 2016, Vinci launched the first standalone intelligent headphone

Raised $1,297,277 on Kickstarter & Indiegogo.

In 2015, the global earphones & headphones market size was valued at USD 8.7 billion.

The global earphones and headphone market is expected to grow to $15.8 billion by 2025.

Growth Influences

Widespread use of mobile devices

Noise cancelling technology innovations

Popularity in music streaming services

Find the info below about Vinci 2.0 Headphones

ll. Market size

a. Estimated industry sales for the planning year

b. Estimated market growth rate.

III. The Marketing Plan

a. Marketing Objectives

b. The target market and product positioning statement

c. The marketing mix

Explanation / Answer

Market Size:

We have the estimated size of the industry in 2025 as $15.8 billion (future value) and the value of the industry in 2015 as $8.7 billion (current value). The estimation of industry is for 10 years hence forth (2025 - 2015)

So we can calculate the Compounded Annual Growth Rate by the formula

Growth rate = ( Future Value / Current Value )(1/no. of years) - 1 = (15.8 / 8.7)(1/10) - 1 = 1.0615 - 1 = 0.0615 or 6.15%

So Estimated industry sales for the planning year = Current sales * (1 + growth rate) = 8.7*1.0615 = $9.235 billion

Marketing Plan:

Marketing objectives: Increase awareness about the new technology and product, make the consumer experience the new product to feel the difference.

Target Market : Music and multimedia enthusiasts

Positioning Statement: A completely revelutionalizing headphone which makes you experience and immerse into the sound and not just listen to it

Marketing mix