02+. Sample Marketing Plan of CarPlus Co.

(based on the Sample Marketing Plan of Pegasus Sports International provided by Philip Kotler)

EXECUTIVE SUMMARY CarPlus Co. is a start up company that specializes in products that safeguard a car. One of its products, the Door Guard when attached to the sides of a parked car, prevents the car from getting scratched due to wrong parking manoeuvres of other cars in the parking lot. (It is primarily made of thermocol with plastic covers and hangs from car windows with a thread.) Several other car protection oriented products are still at the research level and are soon expected to be ready to be launched in the market. With the car market booming in the present time lots of people are buying cars and therefore, logically, CarPlus also has a huge growing market. The target customers need to be informed about the benefits of the product and the products, banking upon their usefulness, will sell on their own merit. Initial local market research has shown that there is great demand for these products. CarPlus plans to heavily depend on the Integrated Marketing Communication both non personal communication tools like Advertising, Sales Promotion, Events and Experiences and Publicity and Public Relations as well as personal communication tools like Direct Marketing and Personal Selling in order to inform, remind and persuade the target consumers car owners and car users about the benefits, usefulness and value of the products. CarPlus plans to achieve fast, significant market penetration through a solid business model, long-range planning and a strong management team that is able to capitalize on the great opportunity. CarPlus plans to use a multi-channel distribution network so as to reach out to a large number of target customers. It plans to use dedicated, hard working direct selling personnel who would extensively canvas for the products. It also plans to tie up with different car dealers, car repair shops and car accessories shops and explore the idea of converting them into business partners or intermediaries. It also plans to sell its products through the Web site. This direct-to-the-consumer approach will allow CarPlus to achieve higher margins and maintain a close relationship with the customers. This multi channel approach will help CarPlus to achieve higher economies of scale. By the end of the year, CarPlus will have also developed relationships with most of the car manufacturers.
Sales Forecast 2007 2008 (Rs.) (Rs.) 50 Lacs 60 Lacs 80 Lacs 70 Lacs 2009 (Rs.) 72 Lacs 60 Lacs 2010 (Rs.) 86.4 Lacs 50 Lacs 2011 (Rs.) 1Crs+ 50 Lacs

Targeted Sales Estimated Direct Cost of Sales

SITUATION ANALYSIS CarPlus is entering its first year of operation. As per the initial local market research results, its products have been well received. Marketing will be the key to the development of brand and product awareness as well as the growth of the customer base. Market Summary CarPlus possesses good information about the market. This information will be leveraged to better understand who is served, what their specific needs are and how CarPlus can better communicate with them. Target Consumer Markets Personal Self Driven Car Owners Personal Driver Driven Car Owners Company Provided Self Driven Car Users Company Provided Driver Driven Car Users Target Business Markets (This market will be exploited in the later years) Owners of Car Fleet Owners Organisations with Own Cars Market Demographics The Profile for the typical CarPlus customer consists of the following geographic, demographic and behavioural factors: Geographic Factors CarPlus seeks to target the metro cities where the density of cars is high and gradually expand to other urban markets. Demographic Factors There is a 70-30 tilt towards the male population. Ages 30 to 60 with 50% clustering around 40-50. Annual Income: Above Rs.2 Lacs p.a. Education: Minimum Graduate, Maximum: Highly Qualified. Behavioural Factors Users are protection concerned.

Sample Marketing Plan of CarPlus Co. Page 2 of 4 (based on the Sample Marketing Plan of Pegasus Sports International provided by Philip Kotler)

Users value their car and care for it.

Market Needs The company seeks to fulfil the following benefits that are important to its customers. Quality Craftsmanship The products need to last and live up to the promises made. Well-thought-out Designs The products have to be so designed that they do not look clumsy on the cars when used. The products need to be designed for ease of use as well. Customer Service Exemplary service is required to build a sustainable business that has a loyal customer base. Market Growth With the price of cars going down, the car market has had steady growth over the years. With the road space within the cities not increasing in the same proportion there is increased clutter and space shortage as far as the parking issue is concerned. CarPlus products need to capitalise on this trend. The increased disposable income of todays professionals also boosts up the purchase of cars. Therefore, the market for CarPlus products has a constant rising graph. SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and tries to describe and understand the opportunities and threats facing CarPlus. Strengths In-depth industry experience and insight. Creative, yet practical product designers. The use of a highly efficient, multi-channel distribution model. Weaknesses The reliance on outside capital necessary to grow the business. The initial difficulty of developing brand awareness as a start-up company. Opportunities Participation within a growing industry. Decreased product costs through economy of scale. The ability to leverage other industry participants marketing efforts to help grow the general market. Threats Future/Potential competition from imitators. Future/Potential competition from an already established market participant. Competition CarPlus is forming its own market. There are, at present, very few companies that manufacture or market similar products that promise to take care of the car. As far as Competition is concerned the company doesnt seem to be faced with a lot of competition initially. However, once the products gain acceptability in the market there is a chance of future competition to evolve from existing established market participants as well as imitators who may come up with cheaper and inferior copies of our products. Product Offering Door Guard: when attached to the sides of a parked car, prevents the car from getting scratched due to wrong parking manoeuvres of other cars in the parking lot. (It is primarily made of thermocol with plastic covers and hangs from car windows with a thread.) Several other car protection oriented products are still at the research level and are soon expected to be ready to be launched in the market. Keys to Success The keys to success are designing and producing products that meet market demand. In addition, CarPlus must ensure total customer satisfaction. If these keys to success are achieved, it will become a profitable, sustainable company in the long run. Critical Issues As a start-up business, CarPlus is still in the early stages. The critical issues for CarPlus are to: Establish itself as the premiere car protection and safety Accessories Company. Pursue controlled growth to see that the pay role expenses will never exceed the revenue base. Constantly monitor customer satisfaction ensuring no compromise on services and satisfaction levels.

Sample Marketing Plan of CarPlus Co. Page 3 of 4 (based on the Sample Marketing Plan of Pegasus Sports International provided by Philip Kotler)

MARKETING STRATEGY The key to marketing strategy is to focus on the people who care for their cars. CarPlus is able to address all the different segments within the market because its products are useful to all the different segments. Mission CarPlus mission is to provide the customers with the finest car protection products available. We exist to attract and retain customers. Success will be ensured by designing, manufacturing and providing to the customers the finest car protection products available. Our services will exceed customer expectations. Marketing Objectives Maintain positive, strong growth each quarter so as to attain the annual targeted growth rate of 20%. Achieve a steady increase in market penetration. Decrease customer acquisition cost gradually over the years. Financial Objectives Increase the profit margin by 1% per quarter through efficiency and economy-of-scale gains. Maintain a significant R&D budget (as a percentage relative to sales) to assist future product developments. A double-to-triple-digit growth rate. Positioning CarPlus will position itself as the premiere aftermarket car protection accessory company. This positioning would be achieved by leveraging CarPlus competitive edge: first-entry advantage, useful designs and passion. Its management would be able to use their vast experience of the market and passion to serve the customers satisfactorily to develop innovative, useful car protection accessories for a broad range of car users. Strategies The single objective is to position CarPlus as the premiere aftermarket car protection accessory company serving the urban car user market. The marketing strategy will first seek to create customer awareness concerning the offered products and services and develop the customer base. The message that CarPlus will seek to communicate is that it offers the best-designed, most useful car protection accessories. This message will be communicated through various means. The company website will be meticulously designed in order to thoroughly inform the customers. Integrated Marketing Communication approach will be adopted so as to create a coherent and clear picture and unconfused positioning attained. Marketing Mix CarPlus marketing mix is comprised of the following approaches to product, pricing, distribution, communication, and customer service. Product The products need to last and live up to the promises made. The products have to be so designed that they do not look clumsy on the cars when used. The products need to be designed for ease of use as well. Pricing This will be based on a per-product retail price. Distribution CarPlus plans to use a multi-channel distribution network so as to reach out to a large number of target customers. It plans to use dedicated, hard working direct selling personnel who would extensively canvas for the products. It also plans to tie up with different car dealers, car repair shops and car accessories shops and explore the idea of converting them into business partners or intermediaries. It also plans to sell its products through the Web site. CarPlus will also develop relationships with most of the car manufacturers. Communication CarPlus plans to heavily depend on the Integrated Marketing Communication both non personal communication tools like Advertising, Sales Promotion, Events and Experiences and Publicity and Public Relations as well as personal communication tools like Direct Marketing and Personal Selling in order to inform, remind and persuade the target consumers about the benefits, usefulness and value of the products. Customer Service Exemplary service is required to build a sustainable business that has a loyal customer base. CarPlus will strive to achieve benchmarked levels of customer care. Marketing Research Focus would be laid on effective marketing research so that the company may emerge as a most appropriate solution provider in the fields of car protection accessories. Research would be emphasised for new product development as well as for modification and development of the existing products of the company. The extensive product testing by a

Sample Marketing Plan of CarPlus Co. Page 4 of 4 (based on the Sample Marketing Plan of Pegasus Sports International provided by Philip Kotler)

wide variety of potential users will provide the company with valuable feedback and help in several design improvements. FINANCIALS This section will offer the financial overview of CarPlus related to marketing activities. It will give a format of breakeven analysis and sales forecasts. The formats are illustrative only.
3Lacs 2Lacs 1Lac 0.00 (1Lac) (2Lacs) (3Lacs) (4Lacs) 0 1.25L 2.5L 3.75L 5L 6.25L 7.5L

Break-even Analysis Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

62 Rs.3,88,000/Rs.6,258.06p Rs.1,130.50p Rs.3,18,150/-

Monthly Break-even Point Break-even point = where line intersects with 0

Sales Forecast CarPlus feels that the sales forecast figures are conservative. It will steadily increase sales.
Sales Forecast 2007 2008 (Rs.) (Rs.) 50 Lacs 60 Lacs 80 Lacs 70 Lacs 2009 (Rs.) 72 Lacs 60 Lacs 2010 (Rs.) 86.4 Lacs 50 Lacs 2011 (Rs.) 1Crs+ 50 Lacs

Targeted Sales Estimated Direct Cost of Sales

Targeted sales is projected to be rising at 20% every year for the first 5 years and the company plans to gradually decrease the estimated direct cost of sales over the years and finally reach a figure where it will be a proportion of the sales. CONTROLS The purpose of this marketing plan is to serve as a guideline for the organisation. The following areas will be monitored to gauge performance. Revenue: monthly and annual. Expenses: monthly and annual. Customer satisfaction New product development Implementation Certain milestones identifying the key marketing programs need to be accomplished on time and on budget.
Milestone Marketing Plan Completion Web site Completion Advertising Campaign Design Channel Designing Start Date Nov.01, 2006 Nov.01, 2006 Nov.01, 2006 Nov.01,2006 End Date Nov.30, 2006 Dec.31, 2006 Mar.31, 2006 Mar.31, 2007 Budget Rs.5Lacs Rs.2Lacs Execution Mkt. Manager Outside Firm Outside Firm Mkt. Manager With Manager, Smart Logistics. Department Marketing Marketing Marketing Marketing

Marketing Organisation Smart Logistics will be responsible, along with the companys own sales force, for the marketing activities. Contingency Plan Difficulties and Risks Problems in generating visibility on the World Wide Web. Initial teething problems as a start-up company. Reaching out to and informing the target customers. Entry into the market by an already established market competitor. Worst Case Risks Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment or intellectual capital to cover liabilities.