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Marketing Plan: Sonic Personal Digital Assistant
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Sonic, a hypothetical start-up company, is getting ready to introduce a new multifunction personal digital assistant (PDA), also known as a handheld computer. Sonic’s new product is entering a marketplace crowded with offerings from Palm, Handspring, and other PDA makers. The following is excerpted from the marketing plan that Paul Chan, Sonic’s chief marketing officer, has prepared for the coming year.

CURRENT MARKETING SITUATION

The $3.7 billion PDA market is dominated by Palm, which sold in its 13 million units first five years. Industrywide sales are expected to accelerate for at least the next five years, with multifunction devices attracting an ever- increasing market share. Analysts predict 4 million units in total PDA sales for this year and 5 million for the next year.
Market leader Palm offers a range of PDAs for consumer and business use, from a low-end, non-Web-enabled, monochrome model to a slimmer, lighter, high-end model equipped for Web access and e-mail notification. Handspring, an aggressive number two in the market, attracted a 21-percent share in its first year and drove Palm’s share to below 70 percent. It licenses the Palm operating system for its Visor PDAs, which are lower-priced and generally more versatile than Palm’s PDAs. PDAs made by Compaq, Hewlett-Packard, and Casio—all of which are based on the Windows CE operating system—currently account for less than 10 percent of the market.

Despite intense competition, Sonic can rely on numerous strengths: First, its PDA has a superior handwriting recognition system, which simplifies use. Second, it bundles valuable features found only on higher-priced rival products. Third, Sonic’s FDA can accept any Palm-compatible peripheral; and fourth, it is priced lower than competing models. However, its weaknesses include:

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