I am doing a market plan and I finished most parts but I need someone to complete the rest which are: 3.5 Positioning 3.6 Strategy Pyramids 5.0 Controls 5.1 Implementation 5.2 Marketing Organization 5
Marketing Plan-Outline
1.0 Executive Summary
Mercedes-Benz is a leading automobile manufacturer catering to the luxury market sector. While alternative luxury brands are available, Mercedes is able to provide “class” behind the wheel that emerging competitors are not able to offer.
In order to increase brand loyalty and obtain potential new customers thru a marketing strategy, Mercedes will offer concierge-type on demand service to current Mercedes-Benz customers and Fortune 500 corporations & prominent cities in test markets. By offering the service to current customers, we feel customers will obtain “more value” when purchasing a Mercedes and view it as a “rewards member perk”. Also, by utilizing this service, friends & family of the users will be exposed to the Mercedes brand and entice them to purchase a Mercedes vehicle in the future.
Mercedes-Benz will also offer this service to Fortune 500 companies or prominent businesses in test markets. The strategy is to establish contracts and build relationships to fulfill the businesses ground transportation needs. For instance, corporations may use the on demand service to transport executives to important meetings, airport commute of employees or key customers, or possibly hotel arrangements. Users will also be exposed to the luxury and class Mercedes has to offer. Contract agreements with the corporations will be the stepping stone to funding the entire project and be able to provide this service to consumers at reasonable prices. Further information will be provided in the financial section.
MB will increase its market share and add value for its current customers with this marketing strategy.
2.0 Situation Analysis
2.1 Market Summary
2.1.1 Market Demographics
2.1.2 Market Needs
2.1.3 Market Trends
2.1.4 Market Growth
2.2 SWOT Analysis
2.2.1 Strengths
2.2.2 Weaknesses
2.2.3 Opportunities
2.2.4 Threats
2.3 Competition
2.4 Services
2.4.1 Service Business Analysis
2.5 Keys to Success
2.6 Critical Issues
3.0 Marketing Strategy
3.1 Mission
To provide services that exceed customer expectations. We will offer luxury cars to current and future customers and corporations for all social and business needs. The high standards of luxury and effectiveness will pave the way for our new service to increase our market share.
3.2 Marketing Objectives
Increase brand exposure in the first years
Increase the number of clients by 5% from the services alone
Potential increase to other business metropolitan and social cities in the United States and possible around the world.
Take market share away from car share services such as Uber, Lyft and even Taxis
Utilize the various car services to attract different customer base
E Sedan
S Sedan
Sprinter Van
Maybach
Increase the Mercedes-Benz brand as a whole to obtain new customers and retain current ones
3.3 Financial Objectives
In the first few years we anticipate that our commercial contracts will cover the cost of the consumer side.
Generating jobs for the community which gives us a good brand image
We predict that our consumer side will take a loss and we will use the commercial side to cover the losses and use that to offer the service as a perk
We are targeting a profit margin of around 5%-10% in the first couple of years and hope to gradually increase it with exposure.
3.4 Target Markets
Large commercial corporations
Consumers that are existing customers to the brand
Consumers that want to become customers
3.5 Positioning
3.6 Strategy Pyramids
3.7 Marketing Mix
Product:
Transportation services for MB customer individual and corporation. Fulfill transport needs:
Meeting
Airport transportation
Personal driver
Family vacation.
price :
Get 10 company per city at $ 150,000 annually.
Place:
We are targeting six major city Atlanta, New York, Chicago, Las Vegas, LA and, Miami as begin after we will spread it in all of the state and abrod..
Promotion:
For consumer if new:
Subscribe first year for free
Loyal customer reward
Option to continue by value of car
If used:
Consumer will need to buy the service
3.8 Marketing Research
In order to get insight into the market we must look into other companies that offer similar services and evaluate what they are doing and the feedback and return on investment that they are getting. The closest service being offered right now would be Lyft’s Lux Black and Uber’s Uber Black.
We could also post questionnaires to our existing customers and to corporations to see what their feedback on the service would be.
4.0 Financials
The following section will analyze future revenues as well as expenses associated with marketing, fuel, & employment expenses. The program will need to offer extensive marketing in order to provide awareness for the service especially in the entry months. Fuel will become a variable expense depending on the volume of usage. Furthermore, employing and training “chauffeur” solely for Mercedes-Benz will also become a significant expense.
The funding for the project goes as follows.
Commercial segment generates the majority of the revenue
Consumer segment provides the “Perk”
Losses or low profit margins are expected, however Commercial will help cover the losses
According to a Travel & Entertainment Benchmark provided by J.P. Morgan, T&E makes for ground transportation makes up about 13% of the budget.
For our pricing analysis of the Commercial segment, we are including the sum of “Auto Rental” & “Other Travel” above to come up with a 13% budget computation.
Certify.com, which provides expense reporting services to companies, provided a breakdown of the annual T&E expenditures by company revenue (Emery).
Taking this information, we create an analysis based on the company revenue
We are targeting Fortune 500 companies to fund this project and based on industry statistics, Mercedes-Benz could price the contracts at $7.5 million. However, we are at an introductory stage and do not have that capacity to completely fulfill a corporation's ground transportation needs yet. We are providing a limited number of vehicles per city. We decided to price our Contracts at $150,000 per year for companies as an introductory price and to test the response by corporations. $150,000 is still an attractive price even for smaller companies such as those in the $100M to $500M revenue.
4.1 Break-even Analysis
Our Break even analysis was completed using the following info:
Contact unit price: $150,000
Annual Cost per unit: $55,200
Based on the analysis, we will break even at 22 Commercial contract units.
4.2 Sales Forecast
The following is a breakdown of targeted revenue for Commercial customers:
4.3 Expense Forecast
The following is a breakdown of the average expected cost per automobile:
5.0 Controls
5.1 Implementation
5.2 Marketing Organization
5.3 Contingency Planning
Sources
J.P. Morgan (2010). Corporate T&E Spend Benchmarks. Retrieved July 8, 2018, from https://www.jpmorgan.com/cm/BlobServer/Corporate_T_E_Spend_Benchmarks.pdf?blobkey=id&blobwhere=1320626471111&blobheader=application/pdf&blobheadername1=Cache-Control&blobheadervalue1=private&blobcol=urldata&blobtable=MungoBlobs
Emery, A. (2017, March 22). 2017 T&E Expense Trends and Benchmark Spending. Retrieved July 8, 2018, from https://www.slideshare.net/ashleye0807/2017-te-expense-trends-and-benchmark-spending-march-22-2017