Marketing Planning - Marketing Essay Example
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Best Works Motors is currently one of the best car developers in the market. With only a few months from its establishment, we were able to compete in par with other well known car developers which only prove the kind of quality that we are offering to our clients. Aside from this, we are now catering to a number of customers in the market. Our company offers innovative cars that would fit to your style of living as well as on your budget. Currently, we are offering three major car models in the market; we have the Beaut, which is a high end luxury car perfect for those who live in extravagance; we also have the Boffo – a high end family car perfect for people who already have a family; the last but not the least would be the Buzzy – our high end sports car perfect for sports minded individuals and for those people who are actually stylish in nature. Through the aid of advance technology and skilled employees, we have been able to provide our customers with car models that belong to the current mainstream. Although we only have one store, but in the coming months, a number of store branches will be established as per suggestion of the growing number of our clients to further provide efficient service and distribution channel.
Competition is tight in the car production industry, in this regard, it requires for Best Motor Works to become more “creative” in establishing strategies that would make the company stand out among the car modeling firms in the market. One of the possible strategies that might be used by the company would be the acquisition of low cost yet technologically advanced machineries that will be used in the production area. Through this, we could lower down our operational costs which give an avenue for us to maximize profit (St. Clair & Fine 1996: 31). The money that will be save by the management could still be used to finance other strategic plans of the company like providing trainings and seminars for our employees in order to further improve their skills and competencies. Moreover, aside from using the money for providing trainings and seminars to the employees, it could also be used to finance the expansion of the company, like the establishment of new store branches to strategic locations in the economy. As what we can see here, there are a lot of advantages that our company can derive from finding the cheapest yet technologically advance machineries. Since the operational costs of the management can be minimized by this strategy, we could already offer marketing promos to further attract customers. The marketing team of our company could establish brand promotions as well as advertisements to televisions or any kind of media that would inform the market how good the quality of our products is. It has been identified that information dissemination regarding the existence of any product in the market is an effective way of improving the sales and profitability of any business firm. With this, aside from the fact that we are still new in this industry, it is a must to a lot a budget for advertising our products as well as our company. Through this, we could easily penetrate our target market and would surely improve the sales growth of our company.
Based from the market study from the past four periods, I was found out that our company has the sole production of sports cars in the market. This only means that we could monopolize the production of the said product line and establish a good pricing scheme that would consider the factor of the level of demand and supply of sports car in the market. In short, we could charge a bit higher price than what it should be since customers will have no other choice of sports car producer. Moreover, we are also the market leader in the production of luxury cars in the market. It would be logical on our part to charge higher price as compared to our competitor- Firm C. On the other hand, it was also found out that we are currently having a hard time in dealing with the market competition in hybrid cars. This only means that we should improve our research and development team in order to innovate our hybrid cars based on the preference of our target consumers. Moreover, it would be better if the marketing team would find ways on how to successfully penetrate the market for hybrid cars. For instance, lowering the price of hybrid cars as well as offering installment basis of payment with a very low interest rate to attract more customers.
Another factor that Best Motor Works should look upon would be the number of our dealers. During the period 6 of our operation, data shows that, compared to other companies, only our company has the lowest number of dealers. Well, or course this is being justified by the size of our operation, but we are currently expanding and it would be necessary for us to increase the number of dealers alongside with the increase of the number of store branches of the company. Our management must also review the performance of our dealers since they have not been efficient enough on their -work based from the ratings generated for period 6. May be the reason why we are not experiencing the optimal growth for our operation may be because of the performance of our dealers.
Moreover, in order our company could open our stocks to the public to improve the demand of our stocks which eventually create forces for stock prices to increase. The main reason why we would want the prices of our stocks to increase is for the simple reason- to generate more funds to be used for the production and expansion plans of the company. Allowing only the private individuals to buy our stocks is not enough for the expansion plans of the company. It would be better to entertain the capitals of the public, which is actually of great number as compared to the private ones, since there is a large pool of possible stock buyers in the said market. As more and more stocks are sold to them, its prices would go up as based from the law of supply and demand. Another way by which our company could increase the price of our stocks would be to buy our own stock in the market to create an artificial inflation of our stocks. Those stocks that has been bought back could be used by the management as a form of reward for those employees with superb performance or sell it a lower price to their employees who would what to become a part-owner of the company. Another good thing in this strategy would be the chance of boosting the value of the company on the part of the employee since some of them are already part of the company and are already concerned regarding the entire performance and welfare of the organization.
The last but not the least strategy that must be secured by Best Motor Works, considering the last four periods of out operation, would be the poor performance of the security of the design of our Bravo- hybrid car. Maybe this is another reason why there are only few buyers on this car model. In short, we should have to invest more in developing Bravo, specifically, the improving the safety of the said car model. Although our car has the style, the quality and the interior, but if safety lacks from the group, then, consumers might think twice from buying the said product. This could mean additional costs on the upgrading the technology that we already have in order to improve the safeness of our Bravo. We must surpass the performance of Firm D in making cars with high safety standards and we could do this through conducting researches on what kind of technologies that they are applying on their cars to attain high level of safety condition. This is just a matter of identifying the strengths and weaknesses of Firm D’s produced cars.
Goals and Objectives
One of the main objectives of our company is to provide the market with high class, stylish and safety cars for various groups of people. Aside from this, we also want to become the pioneer in the research and development to technologically advanced cars. Being a pioneer in the production of technologically advanced cars would be tantamount to saying that we have the power to dominate and hold the car production industry.
On the other hand, one of the long term goals of the company would be to increase our market share to 15 %. Well, this is a very hard goal to achieve given the tight competition that exists in the market. But through the aid of the identified strategies above, it is not far from happening for the case of Best Motor Works. The main reason why our company would want to increase our market share to 15 percent would be for the simple reason that we would want to have a greater market influence over our competitors and target customers. If one has the large share in the market, it has the power to influence the price level, to some degree, as well as the supply and used this to the advantage of the company. Just imagine if Best Motor Works would have the large share of the market, this only means that we could set the prices of cars in the market depending on the level that we want. We could also use this influence to prevent other firms to enter to our market (Segal 1994: 1). Having a large market share would give us the chance of performing cutthroat competition and would eventually prevent other firms to enter to the industry where we dominate. Aside from this, it is easy for the company to maximize our profit since we could set prices to whatever we would want to.
With regards to the short term goals of the company, we have the targeting of stock prices to $55. It has already been pointed out a while ago the importance of increasing the stock prices on the financial stability of the company. Through Initial Public Offering [IPO], it is sure that prices of stocks would start to inflate since its demand will start to improve alongside with the limited number of stocks coming from vaults of our company (Investopedia.com 2007: 1). The primary reason why we are aiming for this would be for the reason of having enough funds for our expansion plans and improvement of facilities to increase the efficiency and effectiveness of the production area. It is only through becoming a financially stable wherein Best Motor Works could implement its growth plans for the entire operation of the company.
Another short term goal of the company would be to increase the sales growth of the company by 25-30%. This goal is being supported by the proposed strategies stated above. This goal is somehow connected with the long term goal which is to have a larger market share to 15%. Having impressive sales could also mean that they have the large market share in the industry. To some degree, there is a proportional relationship between sales growth and size of the market share; the higher the sales of the company the larger the share that it has in the market, ceteris paribus. Moreover, by having high sales, there is a possibility that the company could earn high profit since the two has direct relationship with one another. Furthermore, there are times wherein the sales growth serves as one of the factors that attract investors, thus, improving more our financial stability. In this regard, it would be necessary to say that there are a lot of connotations that can be associated to the growth of sales and the primary reason why we are targeting 25-35% growth of sales would be to give us a chance of overtaking our competitors in terms of sales since we are only account for a small portion of the total market sales of the industry. This goal must be attained at the start of the 8th period of the operation of our company.
The last but not the least short term goal would be the successful market launching of Bravo- the hybrid car of Best Motor Works. The reason why we are launching another model of car would be to revitalize our product lines and to get the market of hybrid cars, thus, increasing the sales and market shares of the company. Best Motor Works has been weak in the segment of hybrid cars and Bravo would be the entry of our company to penetrate the said segment and widen the scope of the range of our products. This is just simply a way of “conquering” other segments of the car industry to increase our market influence and established good market position in the industry. From the past four periods of operation of the company, we have been a hard time in penetrating the segment of hybrid cars. But there are already existing plans to address the said problem and this was already discussed in the previous pages of this paper. It is now a matter of time and execution of the strategies for us to upgrade our market position in the production of hybrid cars.
Due to advance technology that is being used by our company, we have been able to produce high quality, good interior and stylish cars. This made our company to out-perform our competitors in the market. Moreover, this factor also serves as the reason behind the continuous growth of sales of our company. In short, it is the technology that serves as the key factor for us to have competitive advantage over our competitors. Moreover, we were also able to expand the number of dealers in just a short period of time and this is a good sign of the readiness of our production team for the expansion of the operation of the company. Only that, we still have to address the efficiency and effectiveness of each dealer in order to maximize their contribution to the entire operation of the company. We also have the advantage over the production of sports cars since we almost have all the market for the said segment and this could be used by the company in order to maximize our profit to create more funds for our operation. As far as the last four periods is concerned, Best Motor Works has been exhibiting progressive market share and already reached 14.9% in just 6 period as compared to the original target of 15% market share after 8 periods. This only tells us that we are performing beyond the expectations of the many and currently maintaining the said reputation as what we can see in the data collected for the past four periods. In this regard, it would be justifiable to say that despite of the fact that we are just new into this industry, still, we managed to overcome the barriers and hardships and provide new standards in the car manufacturing industry.
Investopedia.com (2007) Initial Public Offering [online]. Available: http://www.investopedia.com/terms/i/ipo.asp [Accessed 14 January 2008].
Segal, Eliezer (1994) Cutthroat Competition [online]. Available: http://www.ucalgary.ca/~elsegal/Shokel/940303_Cutthroat.html [Accessed 14 January 2008].
St. Clair, Richard & Fine, Chares H. (1996) The U.S. Automobile Manufacturing Industry [online]. Available: http://www.technology.gov/Reports/autos/auto.pdf [Accessed 14 January 2008].