1.

0 EXECUTIVE SUMMARY
Delivery Services has become a well-known industry in the past years meanwhile
truck rentals are limited to individually owned trucks. LGS Delivery Services and Truck
Rentals is a business combing the delivery services and truck rentals. This business only
offers truck delivery service. The business offers services in places such as nearby
provinces, Metro Manila and to any point of Luzon.

1.1 Mission Statement

The core activity of LGS Truck Rentals is to offer different kinds of trucks for
rentals and truck delivery services to farmers and other agricultural related industries.
The business will provide full commitment and hard work in every tasks given by our
clients. We exist to attract and maintain our quality service to our clientele.

1.2 Vision

Our vision is to provide efficient delivery of the products of our clientele and
offers different kinds of trucks for rent to satisfy the needs of our customers at a
reasonable price. We can do this through lower rate of rents and services.

1.3 Objectives:

1. To provide quality trucks for rent and truck delivery service at low cost

2. Generate income with in a span of one year

3. To have a contract delivery service with a company in the long run

4. To be a well-known trucking company

5. Maintain the satisfaction of the clients

The Service

The business is a combination of rentals and delivery service limited to trucks

only. The units of trucks for rents and delivery services are separated. The total units of
trucks for starting is 45.

1|Page
 The business will start with 20 different kinds of trucks for rent from four
wheeler truck to ten wheeler trucks. 2 ten wheels, 4 eight wheels, 6 six wheels and 8 four
wheels truck. There are 25 units of trucks for contract delivery services for clients, 2
sixteen wheels, 6 ten wheels, 7 eight wheels, four eight wheels and three four wheels.

To ensure that the truck is in good condition preventive maintenance is done to

trucks before renting by another customer.

2.0 SITUATIONAL ANALYSIS

LGS Truck Rental and Delivery Service target market strategy is based on
becoming a well-known forwarding business and truck rentals for businesses that needed
our service. The target markets that we are focused are the feed mills and plantation
owners and other manufacturing firms within the Region III and Manila area that needed
delivery services in transporting the products. We offer truck rentals and delivery
services at an affordable prize.

It is the first time that LGS Truck Rentals is introduce to the business world.
Promoting this kind of services and rentals will need a lot of work to find the best
strategy to introduce it to the market. The target customers should be satisfied with the
service that the company can provide.

3.0 SWOT ANALYSIS

This analysis will give the better picture about the strengths, weaknesses,
opportunities and threats may affect the business.

3.1 Strengths

 Lower rate of delivery and rents

 Different choice of delivery services

 A practical way to transport products efficiently

2|Page
  The business has an established connections with the customers at different
locations

3.2 Weaknesses

 Traffic congestion in Manila

 Repairs if there are damages caused by the clients

 Difficulties in finding other routes for faster delivery

 Competitions with individual truck owners

3.3 Opportunities

 Ability to have a long-term contracts with farms and other firms.

3.4 Threats

 Road accidents

 Elastic price of petroleum

 Calamities may affect the crops that will be delivered

 Calamities can delay the delivery

4.0 MARKETING STRATEGY

Marketing strategy’s objective is to offer the sets and services that the customers
needed. It is focused on finding the service that fit their needs but at the same time it is
affordable. The marketing strategy will allow the business to established good
connections with the clients in order to gain credibility from the people.

Advertising will be done through several mediums, a promotion online through

some website will be done and also on some social media.

3|Page
4.1 Mission

The mission of LGS Truck Rentals and Delivery Services is to become the best
choice to transport of products both for agriculture and non-agricultural products. This
will be done through the use of internet. We plan to be great and influential in the field of
this service. We ensure that our customers will be satisfied in the services of our
company.

Marketing Objectives:

 To maintain the growth rate every month

 To provide quality service to our customers.

 To maintain positive connection to all the clients

 To expand our target market.

Financial Objectives

 Gain profitability within nine months’ time

 Increase the sales by 10% within two years’ time

 Maintain high sales every month if possible increase by 2% every month

Target Market

LGS Delivery Services and Truck Rentals includes the following target market:

 Feed mill owners

 Owners of plantation who owned a small to medium scale plantation who needed
to deliver their products.

 Dealer of fruits and vegetables

4|Page
  Farmers who needed trucks to deliver their crops in any location within the Luzon
and Manila area.

 Small scale manufacturing businesses that needed trucks for delivery

Positioning Statement

LGS Delivery Service and Truck Rentals seeks nothing less than giving the
customer’s satisfaction with the company’s quality service at an affordable rates, unlike
anything in San Fernando, Pampanga. Its office will be in San Fernando, Pampanga the
right place to get a truck to rent with variety of choices they can choose from that fit their
needs.

LGS Delivery Service and Truck Rentals other competitive advantage is their
recognition that superior customer attention is needed in order to grab opportunities. This
holds true for this reason: A business can only succeed if it meets or exceeds its
customers' needs, it may provide a good service but it does not meet the needs of their
customers the business may not survive. We provide our clients various choices to meet
their needs in delivery service and truck renting

Service Strategy

LGS Truck Rentals and Delivery Services will devote itself to efficiently
transport products without delay. Finding ways to ensure that there is no delay at an
affordable rate. Offering the clients the different sets of delivery services and well
maintained trucks.

Pricing Strategy

Pricing or rate of the deliver may vary from different locations. The basis of the rate for
truck rental is the number of days used.

Truck Rental Rate

5|Page
 The maximum days that the truck can be rent is seven. Discounts can be given if
the customer is renting three or more trucks and if it is a regular customer, 5% discount
can be given.

List of Price for Trucks for Rent:

From Pampanga to Manila and Nearby Provinces:

Days of Rent Four Wheels Six Wheels Eight Wheels Ten Wheel s
1 day 1,700 2,500 4,500 6,000
2 days 2,300 3,500 8,000 10,000
3 days 2,800 4,500 10,000 11,500
4 days 3,500 5,500 12,000 13,000
5 days 4,000 6,500 13,000 15,000
6 days 4,500 7,500 15,000 18,000
7 days 5,500 8,500 17,000 20,000

 Beyond 7 days of rent the price will be agreed between the

business and the clientele.

Truck Rental Rate if there is a discount of 5% and three trucks are rented.

Days of Rent Four Wheels Six Wheels Eight Wheels Ten Wheel s
1 4,845 7,125 12,825 17,100
2 6,555 9,975 22,800 28,500
3 7,980 12,825 28,500 32,775
4 9,975 15,675 34,200 37,050
5 11,400 18,525 37,050 42,750
6 12,825 21,375 42,750 51,300
7 15,675 24,225 48,450 57,000

Terms and Condition for Renting:

1. Must pay the half of the price rent.

2. The client must return the truck in good condition.

6|Page
 3. The customer can reserve the truck in advance with a down payment of at least
25%.

4. Maximum days of rent is seven.

Delivery Service Rate

Delivery service rate will vary from different locations. There will be two types of
rate Manila rate and province rate. The company can be a contractual deliver service to
any point in Luzon. The delivery service is consist of one driver and two helpers

Four Eight Ten Sixteen

Route
Wheels Six Wheels Wheels Wheels Wheels
Tarlac City, Tarlac 3,000 4,000 5,000 6,000 9,000
Cabanatuan City, Gapan 4,000 7,000 8,000 10,000 13,000
Olonggapo City,
Zambales 4,000 7,000 8,000 12,000 15,000
Morong, Bataan 5,000 10,000 11,000 14,000 17,000
Pasay City, Manila 7,000 12,000 14,000 16,000 19,000
Kawit, Cavite 9,000 15,000 16,000 18,000 22,000
Los Banos, Laguna 11,000 18,000 19,000 21,000 24,000
Dagupan, Pangasinan 14,000 20,000 22,000 24,000 27,000
Baguio City 17,000 22,000 24,000 26,000 29,000
Solano, Nueva Vizcaya 18,000 24,000 26,000 28,000 31,000
Santiago City, Isabela 21,000 25,000 28,000 30,000 33,000
Tuguegarao, Cagayan 25,000 29,000 32,000 35,000 37,000

Monthly rate of trucking Service.

Number of Eight
Trucks Four Wheels Six Wheels Wheels Ten Wheel s
1 70,000 100,000 150,000 200,000
2 120,000 170,000 220,000 300,000
3 170,000 240,000 290,000 400,000
4 220,000 310,000 360,000 500,000
5 270,000 380,000 430,000 600,000

7|Page
Promotional Strategy

Advertising Strategy

Initial advertising will start on small scale on newspapers, posting an

advertisement about our service on the business section. Internet will be used through
social media and business sites like OLX which we can post an advertisement for free,
since it is an effective way it can help in promoting our services. Using the internet is the
practical way in promoting our service. Inserting the number of the business in the yellow
pages shall be done.

Sales and Promotion

LGS Truck Rentals and Delivery Services will offer some sales and promotion tools like

 Discounts will be given to regular customers

 Renting two or more trucks will be granted to 5% discount

Promotional Materials

Poster that will be post in the internet

Packaging Strategy

The business packaging strategy limits itself to good maintenance of the trucks.
This is called preventive maintenance to ensure the condition of the truck is good.

8|Page
Distribution Strategy

The business will prepare the truck ready for rental and the customer needs to set
the time and date where he can pick up the truck or the customer can go directly to the
truck warehouse. In terms of delivery service the business will go straight to the place
where the service is needed

5.0 BUSSINESS GROWTH AND DEVELOPMENT

The Atlas Truck Rentals and Services will keep thinking ways on how to improve
the services we offer. They will be in regular contact Marketing techniques will be
monitored regularly and will be evaluated if they are still effective to attract customers.
The techniques that are effective will be expanded and an elimination of the ineffective
techniques. Monthly comparisons will be carried out between actual sales, profitability
and cash flow, and their projections. The business will not be profitable within one year.
Profit will be gained in the following years of the business.0. Profits will be put back into
the business in order to aid growth and development, with a focus on the following areas:

 Increase the number of trucks for rent

 Expenditure of promotional activities

 Expand the locations the trucks can deliver

6.0 Financial Forecast

6.1 Sales Forecast

Sales Forecast 2017 2018 2019

Sales in Delivery Service 20,000,000 21,000,000 22,000,000
Sales in Trcuk Rentals 14,825,570 17,500,000 19,000,000
Total Sales 34,825,570 38,500,000 41,000,000
       
Direct Cost of Sales      
Preventive Maintenace of
Trucks 8,500,000 8,500,000 8,500,000
Salary Expense 1,500,000 1,500,000 1,500,000
Income/Profit 24,825,570 28,500,000 31,000,000

9|Page
 6.2 Marketing Budget

Marketing Expense Budget 2017 2018 2019

Newspaper Advetising 300,000 330,000 350,000

Internet Advertising 150,000 180,000 200,000

Yellow Pages Adevrtisment 200,000 220,000 240,000

Other 100,000 100,000 100,000

Total Marketing Budget 750,000 830,000 890,000

Percent Of Sales 3.02% 2.91% 2.87%

7.0 Controls

The purpose of Atlas Truck Rentals and Delivery Services marketing plan
is to serve as a guide for the organization. The following areas will be monitored to track
performance:

 Revenue- monthly and annual.

 Profit margin- monthly and annual.
 Customer satisfaction.

8.0 Contingency Planning

Difficulties and Risks:

 Slow cash flow at the first year

 Legal advisor of the company when an accident involving the company trucks
happen.

10 | P a g e
11 | P a g e