Makreting Plan Tango by Asad
Makreting Plan Tango by Asad
Makreting Plan Tango by Asad
1. Executive Summary................................................................................. 2
2.Current Market Situation......................................................................... 3
2.1 Market Summary ..................................................................................
2.2 Market Segmentation............................................................................
2.3 Market Targeting..................................................................................
2.4 Target Markets ....................................................................................
2.5 Competition .........................................................................................
2.6 Product Performance.............................................................................
2.7 Distribution ..........................................................................................
3. Threats & Opportunities...........................................................................
3.1 Threats..................................................................................................
3.2 Opportunities ......................................................................................
4. Objective & Issues ................................................................................. 5
4.1 Objectives - Sales, Profit & Market Share...............................................
4.2 Issues.....................................................................................................
5. Marketing Strategy ............................................................................... 12
5.1 Demand Measurement & Forecasting ..................................................
5.2 Positioning Strategy...............................................................................
5.3 Marketing Mix Strategies.......................................................................
6. Action Plan and Implementation........................................................... 13
7. Marketing Budget ................................................................................. 21
8. Control.................................................................................................. 40
Annexure
References
References ................................................................................................ B
1.0 Executive Summary
2
2.0 Current Market Situation Analysis
7%
1%
Motorcycle
21%
Light Commercial Vehciles
Cars
Trucks & Buses
4%
67% Tractors
3
It’s also witnessed that over the last three years car sales have been driven by
the auto financing, approximately 65% cars are sold under auto finance
scheme being offered by commercial banks. So we can say that auto
financing drives car sales, it’s also important to note that the buyers of up to
1000 cc cars mostly utilize the facility.
With the rising cost of fuel people are gradually shifting to smaller cars,
besides, in a number of households the smaller car is also an
alternative/second car.
The Commuter Cars Incorporation, USA has realized the huge potential in
small coupe type cars and motorbikes markets in Pakistan, and decide to
enter in both market with its one product TANGO, by adopting the product
development strategy.
On top of every thing bulk of the buyers of smaller car are those who are
willing to switch over from second hand cars to new cars. That new car
keeps them away from mechanics for atleast 2-3 years, if being driven
properly. Secondly, the users of bikes (Small families, routing home-to-
office-to-home motorcyclists) who may think towards an affordable and safe
car-like convene.
Although, we make a TANGO a car for every person, purse and personality.
But we have targeted particularly the Lower Middles Class comprising mainly
on junior level managers, small business owners, (Income – Group 10,000-
20000), who due to high cost of small vehicles and vehicles maintenance has
not been able to purchase a Car. We are going to address there needs, as they
are fit our objectives and we possess the skills and resources needed to
succeed in the segment.
In the year 2004-05 small Cars production increased 28% over last year but
this was not still able to cater the increasing demand, which far higher then
supply. This difference between demand and supply may continue because of
positive microeconomic indicators of Pakistan.
4
TANGO Targe t M arke ts
5%
25%
Motorcycle Users (Switch)
Small Car Users (Switch)
Public Transport Users
70%
2.5 Competition
The high-paced growth of the auto industry has attracted investments from
other market players and consumers have now been presented with a wider
variety of automobiles.
The 800cc car segment now has more to offer than the models produced by
Daihatsu (Cuore) and Suzuki (Mehran). Three new companies, Nexus
Automobiles (Exclusive), Adam Motors (Revo), and Pakistan Chery
Automobile (Chery QQ) have entered into the 800cc market. These new cars
will effectively provide a greater choice to the consumer as well as put a
strain on margins as the segment is expected to become more price-
competitive.
5
Cherry 0.81 Basic 461,000.00 05%
TANGO (Basic) 125,000.00
R evo 8 0 0 C C
5%
*Based on
C h e v r o le t
4Q0405 5%
figures. C uo re C I
10 %
M e h ra n Le 8 0 0 C C
55%
S a n t r o C lu b
20%
In motorbikes category there are more then 20 local and foreign market
players, but Honda (Supplied by Atlas Honda) is the undisputed market
leader, in all segments of motorbikes markets, from 70s to now. Being a
market leader Honda charged relatively much higher prices and provides
quality product, they positions their bikes CD or “ Cash Deposit” based on
quality, as a result Honda motorcycles have much higher resale value.
6
The comparison of price between TANGO and competitors and market
share of competitors are tabulated below:
TANGO has to compete local and foreign brands of motorcycles that may
be considered or preferred as relatively cheep then TANGO but the people
who preferred and seek safety and luxury of cars will surely switch towards
TANGO as a 1st choice.
TANGO is much, much safer then a motorbike, a family of two having one
or two kids (The Targeted Market Segment of TANGO) can easily
accommodate, and enjoy their safest rides in TANGO.
The ability of more Mileage provided by TANGO can out compete small
cars and quick get through in traffic jams ability with its 1-meter width.
7
The Commuter Car Inc. doing his part by designing a car that pays for itself
purely by convenience, time save during journey, and cost saving from
reduced parking fees and fuel consumption, provide luxuries of cars like Air-
condition, Heating, Audio (Radio/Tape) etc.
2.7 Distribution.
To make TANGO easily and readily available, Commuter Inc., has decided
to deliver TANGO in ‘KIT CARS” shape, the supplies of KIT CARS will be
directly be made from USA. These kits will required less then 8 hours of easy
assembly, through their manuals a consumer can easily assemble and de-
assemble kit into a TANGO or Kit without the help of mechanics.
8
3.1 Threats
3.1.1 TANGO is new phenomena for Pakistani bikers. The bikers who
use to enjoy free style, open air & view full ride of Motorbikes, no
matter, who severe or thick the traffic jam they face, they love to
penetrate in it, by zigzagging or putting the bike on footpath or doing
some awful acrobatic stuff, as TANGO is not for adventurism, it
provides a family convene solution, bike lover may stick with their
passion of adventure, but safety, security and luxury seeking families.
3.1.2 TANGO could not offer side-by-side sitting, it offer a jet cockpit
style sitting that may be difficult for Pakistani consumers to adjust
down.
3.1.3 All three major auto assemblers are in the process of expanding their
capacities to meet the higher than expected demand, and all will be
financing these projects internally. Given the recent announcements
in the 2005-2006 Budget as well as the amendment to the Trade
Policy 2005 - 2006, these expansions could not have come at a worse
time. In the long run, with the level of imports expected to rise by
leaps and bounds, the companies will be building up inventory as well
as not operating at full capacity. This will result in downward
pressure on the assemblers’ margins, mostly due to fixed costs being
higher as they will be spread over a smaller unit base as well as due to
lower sales. Those vendors and assemblers that have not yet
proceeded with their expansions will be re-thinking their options as
expansions will most definitely lead to lower margins.
3.2 Opportunities
3.2.1 The existing users of small cars will switch towards TANGO
because, for many urban areas of Pakistan the TANGO—considered
unique in many ways--has the solution for some of the major
problems urban areas peoples have with automobiles today. Traffic
has overcome the current roads system. There are too many 4-
passenger cars using an entire lane to transport a single person. There
is also too much pollution from vehicles.
9
3.2.2 Finding space to park in congested cities is difficult and time-
consuming. Add in the cost of parking garages and lots or the extra
hassle of moving your car and plugging the meter every hour or two,
and people will jump to an alternative when it presents itself. For
example if an executive who earn Rs: 250,000/= per annum, who
bears Rs: 150/= per day as a fuel bill and Rs: 10/= parking fee with
his 800CC car, now he can reduce its daily expenses upto 50% by
consuming less fuel and less space tacking ability of TANG
3.2.4 Pakistan has one of the lowest number of vehicles per capita among
the developing countries which is around 7 cars per 1000 people &
therefore, it offer lot of room for demand growth due to increased
purchase power and do readily available financing/leasing schemes
by financial institutions.
3.2.5 Competitors’ growth will expected to be slow down in the long term
to approximately 8%. This will be caused by the loss of pricing power
due to the segments becoming more price-competitive. Unit sales will
be slow down due to the variety of cars, both local and imported,
available.
10
Company has the plan to achieve 1000 Cars sales in initial year and then we
will exponentially improve our market shares by sustained and regular supply
of product and by providing quality and value to our consumers. Company
has the mission to gain sizeable presence in the Car/Motorcycle Market that
are dominating Pakistan Automotive Section by 21% and 67% respectively.
Following table shows five-year projection of Sales in term of No. Of Units,
Turnover (Includes Spare Parts Sales), Profit and share in market.
It’s also with this noble in mind that company is offering the best quality &
most economical vehicle at the most competitive prices to the customers. We
will try our best to make it sure that the average citizens of Pakistan would be
the ultimate winner and beneficiary of this car.
4.2 Issues
Competitors have the best brand recognitions and they are well positioned in
trading activities and have efficient network.
11
adopt “Product Development Strategy” We also use “Pull Strategy” and
spend lot of budget to establish consumer demand through advertising
campaign.
In the year 2004-05 small car production increased by 28% over last year but
this was not still able to cater to the increasing demand, which far higher
then supply. This difference between demand and supply may continue until
the presence of positive microeconomic indicators of Pakistan and negative
approach of car manufacturer. The small cars segments market is forecasted
to be remain competitive due to products capacity enhancement of existing
auto giants and as well as many internal automakers are interested to enter
market that shows sure, strong growth prospects of Pakistan automotive
market.
The narrow profile of the Tango has car advantages as described above. The
first Tangos will be electric so they will reduce pollution as well as reduce
congestion.
12
Our product TANGO (T100) the basic model we are going to
introduce for Pakistani consumers has following packaging value
additions and warranty features.
Our pricing strategy are structured and filtrated with current pricing
strategies of competitors, pricing surveys and off course company’s
internal cost evaluation process. Our approach towards TANGO
pricing is based on competition. That’s why we are not applying any
price adjustment strategy.
Additional Costs
Home Delivery of Vehicles etc.
13
o COMMUTER CARS will notify CUSTOMER at the address
when the CUSTOMER’s vehicle is available for purchase in
accordance with the reservation number.
o COMMUTER will assign the reservation number CARS on a
first come, first served basis.
o If CUSTOMER changes its address, written notification shall be
made to COMMUTER CARS and 3S Network at the addresses
set forth herein.
o COMMUTER CARS may cancel this reservation at any time
upon written notice to CUSTOMER, together with refund of
CUSTOMER’s deposit.
o News Releases
o Feature Stories and Interview
o Exclusives
o Speeches / Appearances at Seminars / Conventions.
o Local, Regional or National Talk shows
o Community Involvements
o Lobbying Activities
o Social Responsibility Activities
14
o Development of an interesting and fund idea centered around
our product’s release.
Indirect Advertising
We have identified the type of Media will be used to carry out our
message (That is referred to Media Plan). As we are introducing new
product within one year, therefore our strategy is to advertise the
product with a series of ads in TVC and publications, through which
we steadily make the target consumers familiar with TANGO.
Advertisement/Communication process
Awareness Credibility Interest Preference Selection Loyalty
Lead generation
Buying process
Identify the need Identify Evaluate Select a short Conduct a Purchase Renewal
alternative alternative list of technical
sources sources alternatives evaluation
15
Communication process and the evolution of messaging
TANGO Delivered
on its promise.
Buying process
Identify the need Identify Evaluate alternative Select a short list Conduct a Purchase Renewal
alternative sources of alternatives technical
sources evaluation
16
CCI sales process
Identify Qualify Plan the Propose the Provide due Close sale Manage the account
opportunity opportunity solution solution diligence
17
We are going to hire Pakistan best and renowned Advertising Agency namely
M/s. Manhattan Leo burnet as our Media Communication Partner.
CCI will use the pre-launch period of six to nine months to condition the
marketplace in anticipation of the actual launch. Excitement will increase
over time as TANGO gains significant media coverage and generates word-
of-mouth through grass-roots initiatives.
At the time of launch, CCI will secure coverage in mass media and trade
media to reach the target consumer. Regional events will be staged to create
maximum awareness and acceptance of the TANGO.
• Public Relations
• Indirect Advertisement
• Sales Promotions Events
18
Advertisement process—sample communication vehicles
Brand Awareness Credibility Interest Preference Selection Loyalty
Press briefing or Press mentions Business white Data sheets and Proposal templates, “Thank you” and
tour, or both papers other detailed invoices, and other “just checking in”
product collateral company Advertisement by
documents e-mail, regular mail,
phone, or other
modes
Press releases and Analyst quotes, Press articles Feature and Customer
associated references, and functionality references
materials mentions presentations,
videos, and other
types of
demonstrations
Analyst briefing or Customer and Analyst papers and Printed customer
tour, or both partner quotes and presentations success stories
references
Company Company or Conference speaker Capabilities
informational Road product overview presentations brochure
Shows & Events collateral
Quarters 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Press X X X X X X X X X X X X X X X X X X X X
Interaction
Analyst Views X X X X X X
Events X X X X X X X X X X
19
Trade Shows X X X X X X X X X
Advertisement X X X X X X X X X X X X X X X X X X X X
Public X X X X X X X X X X X X X X X X X X X X
Relations
Brochures X X X
White Papers X X X X X X
For detail TANGO Marketing Budget please see enclosed (Annexure “A”).
8.0 Control
In marketing control section we would like to adopt following control tools in order
to measure effectiveness and efficiency of TANGO whole Marketing Process:
2. Profitability Control:
- Monitor profitability by product, sales area.
20
- Identify Marketing & Production Expenses
- Allocate Expenses to sales effort, transport etc
- Profit & Loss Statement for each product, division etc
3. Efficiency Control:
- Sales force: e.g. average number sales calls/day, average
cost per sales call
- Advertising/Communication: e.g. awareness of ads.
Advertising cost per thousand
- Distribution: e.g. stock control, shelf space & position
(Spare Parts)
4. Strategic Control:
21
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