Strategic Marketing Plans -Notes
These instructions apply to strategic marketing plans in general — not to that required specifically for your class or tailored to the product/service/media you are developing. Modify it as necessary.
This is a generic outline for developing marketing plans; not all of the items may apply to any given situation. In your paper, you should discuss as many of these topics as are relevant to your project. Papers should be cohesive, not merely pieced together from each person’s contribution. They should be typed (double-spaced), with a maximum of 15 pages of double-spaced text. There is no limit to the number of exhibits you may include. Cite references for all secondary information sources.
Title Page (unnumbered)
Include your brand name, course title, and the names of all participating group members
•Executive Summary (one page, unnumbered if possible)
Summarize the situation and your proposals to deal with it
Use bulleted style for brevity and emphasis if you choose
•Table of Contents (one page, unnumbered if possible — give page numbers for following sections)
• I. Situation Analysis, including Opportunities and Threats (start page 1)
• II. Evaluation of Current/Former Marketing Strategies, in light of the situation as you have identified it
•III. Your Marketing Plan
•A. Marketing Objectives
B. Target Market Description
C. Marketing Mix
D. Resource Estimation/Allocation, including estimates of profitability
E. Implementation, Monitoring and Control
•IV. References (use endnotes or APA style for citations in text)
FORMAT FOR ORAL PRESENTATIONS
• You will present the highlights of your paper to the class; time allocated for each presentation will be determined by the number of groups to present. In order to fit every group in the 2-hour class period, I must strictly enforce this time limit, so be sure to monitor yourselves carefully so that you are not cut off before getting to the “meat” of your material. I strongly recommend that you plan, time, and practice your presentations before class. You need not include all the items your paper covers.
• Because the time limit may severely restrict the contents of your talk, your oral presentation grade will be based predominantly on style and presentation skills. Each member of your group must speak for at least 30 seconds; all members will share a common presentation grade.
GRADING CRITERIA
• A thorough situation analysis, identifying opportunities and threats, is the minimum requirement for this project and will earn a grade no higher than C. A well-thought-out set of strategies and tactics for your product can increase that grade to a B. A thoughtful evaluation of the strengths, weaknesses and likelihood to reach whatever sales forecast you choose will make the difference between a B, B+ or A. Strive for well-supported arguments for your recommendations that build logically on your analyses. Incorporate all that we have learned in class into your recommendations and implementations, but do not waste time/paper defining marketing terms that I will assume you have all learned.
Your group term project is to develop a marketing plan introducing an alternative fuel vehicle in Australia.
Alternative fuels
• Biodiesel
• Compressed Natural Gas (CNG)
• Electric Vehicles (EVs)
• Ethanol (E85) – Flexible Fuel Vehicles
• Hydrogen & Fuel Cell Vehicles
• Liquefied Natural Gas (LNG)
• Liquefied Petroleum Gas (LPG / Propane)
• LPG and CNG Conversions
• Neighborhood Electric Vehicles (NEVs)
Source:
http://www.
Your transport should be positioned as a model/brand of one of the existing auto makers that already has a distribution network “Down Under” (i.e., in Australia), but you may not use a marketing strategy they are already planning or have already used
In preparing your strategic marketing plan, you may find the following “checklist” useful, but all items will not be necessary for all products, services or experiences. Investigate the following topics only if and as they relate to the situation you are analyzing and entering.
I. Situation Analysis – LONG
A. Current Industry Structure
1. Major Firms/Competitors in the Industry
2. Degree of Concentration / Fragmentation
3. Industry sales (Current, Historic, Trend)
4. Distribution System (you will have to take intermediaries’ needs/demands into account when proposing how to sell to consumers)
B. Market(s) – BRITTNEY, DAN
1. Market Size
a. Number of Users
b. Per Capita Consumption
c. Trend
http://en.wikipedia.org/wiki/
http://www.allianz.com.au/car-
2. Uses, Needs Filled (Current, Historic, Trend)
3. Profile of Users (Current, Historic, Trend)
a. Demographics (including social class, if applicable)
b. Psychographics
c. Geographics
4. Purchase Behavior
a. Decision Making Process
b. Shopping Behavior
An article on shopping behaviour
C. Competition – ABIDE
1. Brand Competition
Companies in the Fray
Telsa
Brands
http://www.aeva.asn.au/
Current brands in australia
Nissan Leafs
http://www.nissanusa.com/
i -Mevs
Aurora solar Car
Branded vs generic compettion
http://chicagounbound.
– Tesla (4 models)
– Nissan (2 models)
– BMW (i3)
– Mercedes (B Class)
– Mitsubishi (MiEV)
– Ford (Focus Electric)
– Renault (ZOE)
– Honda (Fit)
– Chevrolet (Spark)
– VolksWagen (2 models)
– Kia (Soul EV)
– Mahindra (e2o)
– e Supercars (3 models)
– Holden (Volt)
2. Generic Competition
D. Macro Environments (Current, Historic, Trend) – APRIL
1. Economy
With population of 23.3 million and their stable monetary system, low public debt, stable employment market, opened global trade, well-established investment and enterprise framework, Australia is now the richest country in Asia-Pacific (Heritage.org, 2014).
Here are some recent economic indicators in 2014, which is forecasted by Australian Government, Department of Foreign Affairs and Trade. GDP is $1482,5 billion. GDP PPP is $1100.4 billion. GDP per capita is $62,822. Real GDP growth is 2.8%. Inflation rate is 2.7% (Australian Government, 2014).
Another aspect is Australia international trading position. Coal and minerals export account for about half of Australia income. On the contrary, liquid fuels account for 20 percent and household consumption accounts for 30 percent. Therefore, Australia’s ability to pay for household consumption highly depends on its coal and liquid fuels export (Jarvinen, J., Ortan, F., & Nelson, T., 2011)
2. Legal requirements and Regulatory
Electrical definition: extra low voltage (ELV): any voltage less than 60V DC or 25V AC. Hazardous Voltage (HAZV): Voltage greater than 60V DC or 25 V AC at any time.
Battery type: Battery A does not contain liquid and discharge gases into atmosphere; Battery B: contain liquid or discharge gas during normal operation.
Batteries has to be fixed in position so that they will not create hazard to the drivers, passengers or other road users, and battery restraints needs to be designed well and so maintenance operation is safe. It also has to be sealed perfectly so the batteries won’t be affected by flame or water. If the battery is class B, then it must provide for venting of gasses by operation. The label must contain appropriate hazard symbols in use and components connected to or relate to HAZV must be colored orange. An over-current protection device needs to be installed. Auxiliary ELV is needed to guarantee the power to safety equipment like lights and brake boosters, in the meantime capable of operating the hazard lights for at least 20 minutes. Monitoring device will be audibly or visually warn drivers of impending disconnect with sufficient time for drivers to park before disconnection occurs. Electrical installation work has to be considered and performed in standards.
3. Political
Policies are targeted in limit of climate change by decreasing in greenhouse emissions and carbon dioxide equivalent into atmosphere, and of import liquid fuels which becoming scarcer and sourced (Jarvinen, J., Ortan, F., & Nelson, T., 2011).
4. Technological Environment
Thee are three categories of electric cars, Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), and Battery Electric Vehicles (BEV). HEVs combine both an internal combustion engine that use fuel with an electric engine which electrical energy stored in batteries. Vehicle propulsion is a mix of the Internal Combustion Engine vehicle (ICE) and electric powertrains. PHEVs are similar to regular hybrids but are capable of being recharged by plugging in to the electricity grid at home, wall socket or station. Pure battery electric vehicles (BEVs) are powered only by electricity stored in batteries (Feeney, K., Brass, D., Kua, D., Yamamoto, A. & Tourneboeuf, E., 2012).
5. Natural
Increasing greenhouse emissions concern, oil and coal price, and reducing natural resource available make it favorable of substitutes of oil transportation. Globally, there are 1,331 billion barrels of oil. Calculation shows around 45 years of oil supply if production rates keep 80 million consumption barrels per day. Furthermore, Gas, which is 187 trillion cubic meters globally reserved, will remain 62 years consumption. Australia is facing the same supply risks as other countries. Research shows relation between oil and gas in Australia, indicating the increase of coal exports and oil imports dues to their demand and products price. (BP, 2010; under Jarvinen, J., Ortan, F., & Nelson, T., 2011 )..
6. Social Environment
Social can influence the business in Australia. Mercedes-Benz began their sustainable strategy for generation, inside out of its entire production process and their exceptional durability. The company constantly minimizes the impact of cars and trucks on the world by devoting into evolving cleaner, less greenhouse gasses emission, and more efficient power car, presenting the world’s cleanest and most advanced diesel, BlueTEC. They also earned green technologies patents that account for 50 percent they earned in 2010, and their hybrid vehicles are used the most on the road (Mercedes-Benz, 2014).
• II. Opportunity / Threat Identification (Possible consequences of trends or changes in any of the items above)——April
Opportunity
With better electric utilities that offered including better batteries and faster charging options, electric car encounters an emerging market. There are great opportunities for both private cars and public transportation. With a penetration strategy for upper middle class that has not occupied by other companies yet, Mercedes-Benz B-class has relatively more competitive advantages by both its brand image and its performance. Furthermore, since Mercedes-Benz can slightly change their brand image to more environmental friendly adding to its current image of focusing on cleaner gasoline. Moreover, since Australia is worrying about their natural resource, they will also gain support by government.
Threats
The electric car market highly depends on batteries. It involves the time to charge and the amount of time can be used for driving. Another concern is charging facilities network for electric cars, for example, which location is better place for people to charge cars, and how to make home high speed charging convenient for customers. Other than that, it will be a challenge for using this when target customers have less knowledge or too many doubts or concerns when using this new technology, safety, is one of the examples. Furthermore, there are emerging competitors are trying to gain a market share inducing by the trend of environmentally friendly.
• III. Strategic Marketing Plan
A. Objectives—Dan
1. Marketing Measures
Marketing effectiveness is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results for both the short-term and long-term. It is also related to Marketing ROI and Return on Marketing Investment (ROMI).
Marketing expert Tony Lennon believes marketing effectiveness is quintessential to marketing, going so far as to say It’s not marketing if it’s not measured.
2. Financial Measures
3. Time Frame
one year before launching.
B. Macro Environments—-April
C. Proposed Strategy
1. Target Market(s)— Brittney, Dan
a. Uses, Needs Filled
b. Forecast Target Market(s) Size(s)
(1). Number of Users
(2). Per Capita Consumption
c. Profile of Users
(1). Demographics
(2). Psychographics—environmental friendly, long-time investment, safer, social concern, technological oriented, fashionable, being different.
(3). Social Class—middle upper class people.
As of September 2014, over 600,000 plug-in electric passenger cars and utility vans have been sold in the world, led by the United States with a stock of about 260,000 highway-capable plug-in electric cars, followed by Japan with more than 95,000 units and China with over 77,000. Due to its population size, Norway is the country with the highest market penetration per capita in the world, also the country with the largest plug-in electric segment market share of new car sales, and in March 2014 Norway became the first country where over 1 in every 100 passenger cars on the roads is a plug-in electric vehicle. Estonia, which has the second largest EV market penetration per capita after Norway, is the first country that completed the deployment of an EV charging network with nationwide coverage, with fast chargers available along highways at a minimum distance of between 40 to 60 km (25 to 37 mi).
Where the B-Class was previously effectively an extended version of the A-Class, the next-generation Mercedes-Benz A-Class will go on sale locally in early 2013 with an all-new hatchback shape as it targets a younger demographic than its twin.
d. Purchase Behavior
(1). Decision Making Process
(2). Shopping Behavior
The Australian automotive market is highly competitive, with car prices being affected by both auto makers contending for market share and the Australian dollar exchange rate. The Australian automotive sector is currently in a healthy state experiencing solid growth due to a number of factors including a reduction in tariffs and a strong economy.
On the other hand, fuel prices are at record highs and a review of the Australian Consumer Price Index in recent months indicates that the largest increase across all categories of consumer spending was in transportation. Total expenditure rose 3.3 percent between the second and third quarters of 2005. In the year to September 2005, transportation spending rose 5.9 percent with the largest contributor being higher fuel prices.
As a result, buyers now prefer to choose smaller vehicles in favour of traditional big cars. An interesting exception to this is that despite this increasing cost of filling up at the petrol station, prestige car sales such as luxury SUVs were up 61.2 percent in Australia in 2004. This may be related to the fact that new car prices dropped 2.9 percent in the first half of 2004 and tariffs for imports were reduced by 5%. Overall, new automobile purchases are up in Australia in all states and territories, excluding South Australia. According to the Australia Bureau of Statistics, the two largest increases were seen in the Northern Territory at 13.8 percent, and in Western Australia at 12.3 percent.
2. Marketing Plan— Long
a. Product Strategy: Benefit(s) Offered
b. Distribution Strategy
c. Pricing Strategy
d. Promotion Strategy
3. Resource Estimation / Allocation—Abide
a. Financial
● Increase the profit margin by .10% a quarter.
● Achieve a double digit growth rate each year for at least the first five years.
● Develop efficiencies in the delivery of the service through advanced training and work-flow analysis.
b. Physical Facilities
c. Personnel / Expertise
d. Technology
Online media Facebook ,twitter,youtube
TV
e. Time
f. Other
4. Implementation, Monitoring and Control—-Brittney
a. Set Priorities
b. Schedule for Implementation
c. Monitoring Measures
d. Feedback Mechanism
