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Mech n Cab Mech N Cab MARKETING PLAN Submitted By Submitted to Date May6. 2007 2 .
and by His grace. In successful launch of our Mech n Cab. However.Mech n Cab ACKNOWLEDGMENTS Perfection was watchword we had in our mind when we started working on this report. This will help us in enhancing our entrepreneurial and creative skills. we tried very hard to make this report meritorious. The project was assigned to us by Zeeshan Javed. Thanks to mechanics shops & some automobiles services companies for providing us useful information. we are thankful to several people without whom the launch would not have been possible. Thank you 3 . Exquisite perfection is rather trait of God. people generally agree that person can only approach excellence but never actually achieve it. We are thankful to him for giving us a chance to learn about marketing strategies. We thank our families for their support and coping up with our absences.
Mech n Cab TABLE OF CONTENTS Sr# Description 1 EXECUTIVE SUMMARY Brand Name Brief Description of Product 2 3 4 5 6 7 MARKETING PLAN SWOT Analysis BCG matrix MARKET SEGMENTATION Broad Potential Market PRODUCT POSITIONING PRODUCT BRANDING Brand Name Decision Branding Strategy COMPETITOR ANALYSIS Major Competitors Overall Strategy for Responding to Competition MARKETING MIX Pricing Place/Location Product Promotion FINANCIAL PLAN Expenses for Business Operations Sources of Finance ACTION PLAN Page# 5 6 7 8 9 10 11 12 8 9 17 19 4 .
Basically Mech n Cab is a service oriented business in which our basic idea is to provide car related solutions with quick services round the clock throughout the week. The major difference that supports our business would be: • • • • Pioneers in introducing the services No any direct competitor On the spot services Available 24 hours a day 5 . For data collection. Mech n Cab. Mech n Cab also eliminates the car owners to come to our workshop to get the car after repaired because we have the home delivery services at their offices or homes Competitive Advantage We have no direct competitors right now but our indirect competitors are expected to be all service stations as well as small mechanics shops in Karachi. We are introducing a completely new idea that is. On the basis on research and intelligence there are no any relevant services provider available in the market. Brand Name `Mech n Cab` Brief Description of our Services Mech n Cab is automechanic services. We are introducing our idea of launching Mech n Cab in the market on the surety that is potential customers who care for their cars & time. Mech n Cab market consists of consumers who need a service which provides them with 24-7 hour’s service of mechanic every where and now days as we know that every single person is so much busy in this big city Karachi so every one wants a quick service.Mech n Cab EXECUTIVE SUMMARY The report is providing the detailed information about our product & services which we are going to launch. we have used many types of tools like we have conducted surveys through interviews and observations in many areas of the city.
Available 24 hours a day S T R E N G T H S W E A K N E S S E S O P P O R T U N I T I E S • • • New idea can be rejected Time Problem People may prefer their traditional mechanics on Mech n Cab • • • Expand product lines to meet broader customer needs No direct competition If appreciated by the consumers then we will extend our branches T H R E A T • • Slow market growth May others enter the market after our success • Mechanics Shops 6 .Mech n Cab MARKETING PLAN SWOT Analysis • • • • • • Pioneer in the business Mass promotion No any direct competitor Prime location. easily approachable & prominent to the target market Cost advantage.
7 .Mech n Cab S BCG matrix: Our product comes under the “Question Mark” level. because it is just being introduced to our target market and will take time to move to other levels.
Geographic Variables • Posh localities of Karachi like D..H.A & Clifton Demographic variables • • • Age: 25 & Above Income: Family income 45. Psychographic variables. Behavioral variables • NO Concern 8 . Demographics variables. In order to formulate an effective marketing and promotional strategy. Upper Middle Class. the target market for Mech n Cab has been divided into 4 different segments: Based on Geographic variables.000+ Gender: Both male and female Psychographic variables • Social class: Upper Class. and Behavioral variables.Mech n Cab MARKET SEGMENTATION Broad Potential Market During the marketing research that we conducted (through questionnaire attached) we learned that our target market is basically who have their personal cars & they are usually suffering with technical faults while driving that are our potential customers.
~The complete car solution!!~ 9 . the message is very clearly being communicated to the target market. Positing statement of is influential and communicates the message to our target market. Its criteria are based on: 1. 2. over our indirect competitors. Affordable: It has a cost advantage. and its brand name carry’s its feature. Our brand over all positioning strategy is: more for less. Communicable: Since our product is innovative.Mech n Cab PRODUCT POSITIONING The competitive advantage over the mechanics would be our business USP.
Brand Name Decision: Our brand name decision is based on the following reasons: • • • • • Easy to pronounce Easy to spell Communicates the service benefits & features Sounds good Easy to recall Branding Strategy: The branding strategy of our product is Private Branding 10 .Mech n Cab PRODUCT BRANDING Our brand name is Mech n Cab representing the feature of our services.
11 . Overall Strategy for Responding to Competition Brand Name Our strategy to counter the competitors is to create the Mech n Cab brand name in the minds of the customer. Monopoly For the time being. which are the road side mechanics and companies services center in Clifton and Defence. Customer Loyalty We plan to gain long-term customer loyalty by offering quality services through our branches.Mech n Cab COMPETITOR ANALYSIS Major Competitors No major competitors exist as it is an innovative product but we have some indirect competitors. We would offer discounts to our members. we are the only service provider in the Karachi City specifically Clifton and Defence only. Our promotion should be such that only our name should come to the customers’ minds when they face the problems.
Place/Location • Posh localities of Karachi (D. Our product image is to provide better services in low price as compare to market.H. Description of Pricing Strategy Mech n Cab is a type of service that is why initially we have set reasonably low price to gain the maximum share of the target market. 12 . Thus with heavy promotion the company will move its way towards growth. The consumers of our services at this stage of the product life cycle would be the innovators and soon the early majority.A & Clifton) Product Product Life Cycle (PLC) Mech n Cab is in the 1st stage of the product development life cycle (Introduction). growth would be slow as it is an innovative product.Mech n Cab MARKETING MIX Pricing Pricing Strategy We intend to follow the Price penetration strategy because our product is innovative. We are selling at selective places but more profitably there are no competitors entering the market easily.
Mech n Cab 13 .
In the opinion of the people Mech n Cab is the best idea in terms of aeromechanical services. Then to be more precise we came up with the idea of Mech n Cab. Business Analysis: Our sales cost and profit/loss projections for the period of one month Sales Cost Gross Profit 900000 646000 254000 14 . All we needed to do was to identify the need of our services in the market (through questionnaires) and make it available to our target market if high intensity was measured. We came up with the idea of promoting automechanic services in Karachi. Concept Development & Testing: The concept already existed. we analyzed each source and with our objective (profitable customer satisfaction). And the result concluded that there is a market need for such a product.Mech n Cab PRODUCT DEVELOPMENT STRATEGY Idea Generation: All of us brainstormed different ideas amongst our group and talked about it with friends and family to get ideas for various products that they think Karachi’s market would require. Marketing Strategy Development: Our marketing strategy is easily affordable by upper class with out any problem. after which we on researched the various products that can be sources of Mech n Cab: Idea Screening: After research. It was analyzed that: Mech n Cab will be the fast service provider at affordable prices.
Selected Advertising Media 1) Media Types: Our objective is to build primary demand by informing consumers about the features of our services and make position the brand name with its usage in the mind of the consumers. Promotion Methods of Promotion • • • Advertising Advertising Strategy We will be targeting people of high income and owner of cars registered in last five years in Karachi.5 million which will be later catered by our company. approximate number of vehicles in cantonment Karachi is 1. Major media types: • • • • TV News papers Outdoor Advertising (Hoardings. which does not allow us to execute this step. Commercialization: We would go for commercialization once the product has entered the growth stage and is running successfully not far away from the Star in the BCG Matrix.Mech n Cab Test Marketing: Tough we are not going for test marketing as no doubt our product has a cost advantage over our competitors but its pricing strategy is pioneer. Billboards) Magazines 15 Advertising Sales Promotion Public Relations .
Mech n Cab 2) Media Vehicles: News Paper The placement of out product would be on of DAWN. Outdoor Advertising • Distribution of posters & broachers 16 .
000 18.000 290.000 4 3 5 6 Qty Total 50.Mech n Cab FINANCIAL PLAN Total Fixed Assets Amt Mechanical tools Liana Cars Furniture & Fixtures (For offices) Shehzor with Towing facilities (compressor + Grinder + peter Engine) Total Fixed Assets 50000 700000 500000 1200000 Qty 4 4 1 4 Total 200000 2800000 500000 4800000 8300000 Total Fixed Cost Fixed Cost Office Rent Workshop Rent Salaries (Mechanics) Insurance Cars Promotional Budget Lower Staff Telephone Operators Drivers ( for Liana Cars) Total Fixed Cost Amt 50.000 20.000 593000 per Month Total Variable Cost Description Electricity Telephone CNG Gas Consumption Miscellaneous Expenses Amount/Month 15000 20000 10000 8000 53000 per month 17 .000 20.000 15.000 90.000 80.000 290.000 6.000 5.000 5.000 25.000 80.000 20.
Mech n Cab Total Cost Description fixed cost Variable Cost Total Cost Amount 593000 53000 646000 Total Promotional Budget Add on cable 20000 News Paper 50000 Out door promotional expenses ( 5 Bill Boards) 200000 brochure and pamphlet Total 20000 290000 Amount 900000 646000 254000 per Month Sales Projection ( Monthly) Sales Cost Gross Profit Break even Break even Point ( Amount ) Sales Less V COST Contribution Margin Contribution Margin Ratio Fixed Cost/ CM Ratio Sources of Finance The sources of financing for the product are the four members of the Mech n Cab group. who have agreed to invest in the product on an equal share basis Amount 900000 53000 847000 0.95 646000 18 .
2007 June 15. 2007 May 15. 2007 March 1 – April 15.Mech n Cab ACTION PLAN Market Evidence Research Mechanic Search Launch Sales Closing March 15 – April 15. 2007 We plan to launch Mech n Cab ® on May 15. 19 . 2007.
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