Advertising Plan Gateway

Table of Contents

1.0 EXECUTIVE SUMMARY

2.0 MARKET DEMOGRAPHICS

2.1 MARKET NEEDS

2.2 MARKET TRENDS

2.3 MARKET GROWTH

2.5 GATEWAY S.W.O.T. ANALYSIS

2.6 COMPETITION

2:7 PRODUCT OFFERING

2:8 KEYS TO SUCCESS

2:9 CRITICAL ISSUES

3.0 MARKETING STRATEGY

3.1 MISSION STATEMENT

3.2 MARKETING OBJECTIVES

3.3 BRAND RECOGNITION

3.4 PRODUCT DESIGN AND DIFFERENTIATION

3.5 LOYAL MARKET

3.6 CELEBRITY ENDORSEMENT

3.7 BUSINESS SEGMENTS

3.8 TARGET MARKETS

3.9 POSITIONING

4.0 STRATEGIES

4.1 MARKETING MIX

4.2 ADVERTISING

4.3 FINANCIAL OBJECTIVES

4.4 POTENTIAL SAVINGS

4.5 3-5 YEAR SALES FORECAST

1.0 Executive Summary

Initially called Gateway 2000, Gateway computer was founded in 1985, in an Iowa farmhouse by Ted Waitt, then 22, and his brother Norm with $10,000 loan guaranteed by their grandmother. “Gateway’s brand embraced a folksy, down-home image by packaging its simple, user friendly products in distinctive boxes with cow spots”. In 1993, the company went public and started selling shares, and was named a Fortune 500 company.

In 2004, Gateway acquired the maker of PC’s “E Machines”, and moved its headquarters to Irvine, CA. The company has devoted itself to “treating customers with respect, while focusing on service, quality, and value.”

On August 27, 2007, PC Maker Acer of Taiwan announced “it would acquire Gateway, the third biggest U.S. personal computer company, for $710 million in cash”. The deal is still pending as it requires regulatory and antitrust approvals, but is scheduled to be closed in December. This acquisition will increase Gateway’s brand recognition in China and Europe.

On September 4, 2007, Gateway signed an agreement to “sell its professional business segment, including Nashville-based configuration centre, to MPC Corporation, to help simplify its business model”. This transaction will consolidate assets, benefit existing business clients and employees. Gateway’s Nashville final assembly centre targets businesses with less than 100 employees. MPC will be responsible for all operations and warranty support.

2.0 Market Demographics

Our products are sold in some retail stores all over the U.S. and in Canada, Mexico, and Japan. The authorized retail stores are: American, Best Buy, Circuit City, Comp USA, Costco Wholesale, HSN, J&R Computer World, Micro Center, Nebraska Furniture Mart, Office Depot, Staples and Fry’s Electronics. We sell products internationally by phone and the web to schools, businesses, government offices, and home offices.

2.1 Market Needs

Demonstrate our commitment to delivering quality products and services. Our management team will be focused on the future growth of the company.

2.2 Market Trends

Gateway will distinguish itself by differentiating our product based not only on appearance but on product design and innovation.

2.3 Market Growth

With the increases in the cost of gas and fuel, consumers are looking for the most bang for their dollar. This is where Gateway’s opportunities lie and producing value prices goods.

2.4 Gateway SWOT Analysis

Strengths

• Gateway has been around for over 20 years, brand recognition.

• Creative product design for PC

• Third largest PC company in U.S (after Acer acquisition)

• Strong U.S. Market share

• Fully designed computer at reasonably low prices

• In 1997, Gateway was the leading global marketer of personal computers, and will continue to strive for that goal with the Acer acquisition.

• Powerful differentiated U.S. Brands: includes successful eMachines brand

• Customer service, making the customer feel comfortable with their computer

• Recycling program that offers customers cash for trading in their old technology products.

Weaknesses

• Lack of Product knowledge meaning that the customers don’t know why Gateway is better than its competitors, what makes Gateway standout.

• Lack of visibility because it closed its retail stores in 2004.

• Gateway’s failure to differentiate its brand offerings.

• Low margins continue to drive the PC Vendor into consolidation trend, in which Acer now will take charge.

Opportunities

• To be the national brand leader in computer hardware, and produce value priced goods and services to meet the needs of our customers.

• The Acer acquisition will create opportunities in the U.S and a competitive edge in selling Gateway products in retail stores.

Threats

• Increased competition from Apple/Macintosh,