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Executive Summary

Extending the service portfolio would be essential for a business to succeed in the long run. Max Garage

which is a Dubai based entity would be an ideal company to go for a mobile car repair systems.

The vehicles would be called Mechanist and would arrive at the customers location during and

emergency or after a scheduled appointment.

The Mechanist would have all the necessary equipment and expert labor who would be able to repair

the car with highest level of efficiency. The Mechanist would also be able to haul the car and an

affiliation with a car rental company would also mean that the customer would be provided with a

replacement car when the car is repaired. The main segment would be the white collar job holders in

the UAE. There would be strong focus on service excellence and the development of customer loyalty.

This would be the basis of the development of differentiation. The promotion and relevant advertising

would be based on the social media and other low cost methods to ensure that financial control is

exercised.
Introduction

Introduction of new products or services is essential in ensuring that a company is able to cater to the

needs of the market. A product line extension can be critical for the business to meet the needs of the

changing market. This report will focus on identifying a car garage to provide online booking for car

repairs. It would also have a car repair van which would be able to ensure that the customers get the

support they need. Further details and assessment will be conducted in the due course of the report.

Company Overview and objectives of the marketing plan

Max garage is one of the leading garages in the United Arab Emirates for the last 40 years. They have

been able to establish themselves as firmly as one of the key players in the market. Their services

include car painting, engine repairs, vehicle detailing etc. The company has extensive expertise in

ensuring that all the vehicle related services are provided to the customers. The company is in a good

position due to its brand image and the fact that it has been able to develop some strong relationships

with other types of suppliers. These types of suppliers would include dial a battery etc. The company is

also offering genuine parts for their customers. They also have a website from where the orders can be

placed and the customers can get appointments for the service of their cars[ CITATION Max20 \l 1033 ].

The objective of the marketing plan is to introduce a new service for their customers. The investment on

the new product would be extremely high this would mean that the focus would always be on the issue

of the return on investment and recovering their costs. Due to the volume of the investment marketing

plan would recommend that the costs would be recovered within the first two years of operation.
Situational Analysis

The external environment would play a massive role in the success or failure of a business venture. The

external environment would include the social, legal, economic, political, technological, competition etc.

each of those factors would be discussed in detail. Each of the factors would be given a rating on a scale

of 1-10. With 10 being the most favorable while 1 being the least favorable.

 Technological

This is one of the most important factor as far as the operations of Max Garage is concerned.

they are operating in an environment where the changes in technology can be critical for the

businesses. A new engine of a car might mean that there can be some serious shift in the way it

can be managed. A new machine can help to resolve some previously problematic issues. The

technological environment is one of the best in the UAE. This is due to the fact that the

government has invested millions in ensuring that the infrastructure and the availability of

technology for businesses across the emirates. This would be essential to ensure that Max

garage would have the launching pad to invest in a new technology[ CITATION Uni20 \l 1033 ].

Thus based on the assessment the rating would be 8/10

 Economic

The income levels of the people would speak volumes about the demand pattern. One of the

key aspects of economic downturn would mean that there can be some fall in customers for

some of their products while there can also be a rise in some of their services too. For example a

fall in economic growth might mean that less people would go for car detailing, or customizing

their cars while it would also lead to increase in the sales of Max garage due to the fact that the

customers would have less funds to invest in a new car and would have their old cars fixed.

Thus, the economy would have some mixed impact on Max Garage[ CITATION Uni20 \l 1033 ].

Considering all the factors the assessment rating would be 7/10.


 Political

The political environment helps a business to succeed in a market. This is due to the fact that

political turmoil results in massive loss to the economy. The economic condition suffers. The

UAE on the other hand has one of the safest political environment. The chances of political

turmoil are limited. This gives the confidence for the companies to thrive. Thus, the assessment

rating would be 9/10.

 Social

The acceptance of the society would always have a huge impact on the demand pattern of a

business. The UAE society accepts the car repairs and does not hold any issues against it. There

is a clear benefit for the company as far as their operations are concerned. Thus, the assessment

rating would be 9/10.

 Competition

The intensity of rivalry can be potential game changer. This is due to the fact that this is a

market where there are local suppliers who are offering the service. The product is sometimes

shopping product when the customers are coming for a specialized service. The competitor

advances can be challenging as far as the demand is concerned. . Thus, the assessment rating

would be 4/10.

SWOT analysis
Strengths Weaknesses

 Expertise  Lack of exposure

 Brand Equity  Limited market offering

 Financial Resources

 Customer Base
Opportunities Threats

 Offering service in different  Government Regulations

Emirates  Competitors

 Mobile Van repairs.

New Service

The New product would include a vehicle repair system which would be equipped handle most of the

car repairs. This truck or vehicle would be called Max Mechanist. The Mechanist would be a vehicle

which would go the customers premises and fix their cars. The service area would include in all the

different emirates. The Mechanist would include all the necessary equipment’s to weld, repair and

ensure that the car can be ready for use in no time. The Mechanist would ensure the customers can

have their car repaired in the same instant. There can be some issues however, which would mean that

the customers need to go for an urgent commitment and need to reach a particular place. The

Mechanist would also be aligned with a rent a car service. This would mean that the Mechanist would

reach the location where the customer wants and the rent a car would be given the customer. The

customer would then continue their journey with the rent-a-car while the Mechanist would work to

ensure that the car is repaired. The company would be able to earn money not only by offering a

replacement car for rent and also the service for repairing the car. A customer would be able to book
this service through the application or can simply call the hotline number which would send the nearest

Mechanist to the site[ CITATION Smi101 \l 1033 ].

This new service would be an ideal service for Max Garage due to the fact that the customers would be

able to use this service for continuing their schedule. Furthermore, they can also book the Mechanist at

12.00 AM and have their vehicle ready when they are scheduled to go to work in the morning. This

would improve the offering of the company in the holistic sense. The pandemic can also serve the

company to ensure that the customers would not have to come to the garage rather the Mechanist

would be sent to resolve the issues[ CITATION Kri16 \l 1033 ].

Marketing Strategy

This section include the marketing strategy which must be followed to ensure that the business can see

success in its operations. Each of the aspect of the marketing from a strategic perspective would be

explained in detail:

Segmentation strategy & potential target market

Identification of the target is essential to ensure that the service offerings would be catered to the needs

of the customers. The main target market would be the busy individuals of the corporate world. This

would include the white collar workers, entrepreneurs, working mothers, elderly. The income group

would be middle to high to ensure that the company is able to charge premium price. Each of the

segment would of the target market would be provided with different service mix.

 White collar workers and Entrepreneurs: this would be the most important segment for the

business. This would mean that these people would be busy with work and other commitment

that they do not have the time to go to the garages. They would be offered to book the services

of Mechanist at any hour. They would be able to use the time when the car is parked to have

their car serviced or have the repair done at a time when they don’t have to leave their cars.
They would be offered the option of the rental car services. They would be offered a year

membership[ CITATION Ger13 \l 1033 ].

 Housewives: they can also be an ideal target market due to the fact that they might not want to

visit the garage as they would have many household duties. Taking care of the children would

mean that they cannot find the time. The Mechanist team can ensure that the service for their

cars are done at the peace of their homes.

 Retired people or elderly: this would also be another segment for Max Garage due to the fact

that they might not have the energy or see the need to wait long hours for having their cars

serviced.

 Health Conscious Customer: this can be for the short term only. The pandemic might mean that

the health conscious customers might not to visit the garage and would rather book the service

at the comfort of their home.

Positioning & differentiation strategy:

The positioning strategy would be focused on best quality and high price. All the main marketing

communications would have to be used to give an impression about the best of service which would

mean that the company would be able to charge higher prices. The market offering is limited to the fact

that the customers would be getting the highest quality. It would be a perfect match with the existing

portfolio due to the fact that the company is already offering some of the exclusive services to its

customer base. Even though this service is not being offered currently in the United Arab Emirates. The

company first needs to ensure that it is able to enjoy the first mover advantage. The main aspect

through which Max Garage can differentiate is through service excellence. It is a natural progression that

new competitors would be coming into the market. The company would be offering the best of level of

service which would help the company to develop loyal customers. Long term service contracts would
also help the company to ensure that they can retain their customer. The use of high switching costs

would be used to hold on to the customers [ CITATION Kot12 \l 1033 ].

Product Strategies

The services offered through Mechanist would be used to ensure that the augmented product can be

targeted. This would be through several aspects of product and service development. The core product

would include the service itself which would mean that the customers would be able to have their cars

repaired. The actual level of product would reach by ensuring that the service professionals are on time

and are skilled. There would also be a clear professionalism which would be prevalent in the service

being offered. This would include a uniform for the service providers. The augmented product level

would be reached in many different ways. There would be warranty for each of the service which would

be provided. For example if the air conditioning system of a car was repaired the client would get a

guarantee for it. If the customers would face an issue they would be repaired at no costs. This would

help the company to reach out the augmented level of the product[ CITATION Kot12 \l 1033 ].

The brand name is an ideal due to a number of reasons. Firstly the name itself would give the customers

the idea about the fact that it is something beyond a typical garage. This name itself says a story which

would be essential in the brand communication and positioning statement.


Some of the services which would be offered under the Mechanist along with some explanation are:

Service Details Target Segment


Emergency repairs On Call This service where the Mechanist White Collar Workers. Highest

with car replacement will be sent along with a price

replacement car for the customers.


Emergency repairs only This service would be used when the All Segments

customer has his/her vehicle broken

down in the road. The Mechanist

would be sent to resolve the issue


Customer Location This service can be used by the All Segments

Scheduled customers when they need a repair

and they would want the Mechanist

to visit them at a pre-determined

time.
Customer Location This maintenance service like oil All Segments

Scheduled Service change, break pad replacement, etc.

this can be scheduled at a prior

time.

Pricing Strategy
The positioning statement would mean that the business would be offering one of the best service.

There would always be a target for service excellence. This would ensure that the customers would be

getting a premium service. Thus, the prices would be on the higher side. The approach would be Cost+

Markup approach. There should also be a concern for the fact that there would be considerable

investment in the venture and the first mover advantage must also be exploited[ CITATION Kot121 \l

1033 ].

Distribution Strategy

This is perhaps one of the most challenging aspect. The decision to ensure that the number of

Mechanists must be used to get the best of service. The service area would be limited to Dubai only in

the beginning with 15 Mechanists catering to the different areas of Dubai. However, there are strong

plans to ensure that the service area can be improved[ CITATION Kot121 \l 1033 ].

Promotion strategy

This is a new concept in the United Arab Emirates. thus, there is a strong need to make sure that the

customers are aware about the services which are on offer. Thus, for the first six months or so the focus

would always be on the informing the customers about the service. This would simultaneously run with

advertising, sales promotion and personal selling. There would also be a dedicated public relation whose

job would be to enhance the image of the company [ CITATION Kot12 \l 1033 ]. Some of the ways the

promotion would be conducted are discussed below:

 Advertising: the cost is always an issue. In these difficult times it is always a pragmatic decision

to maintain the leanest model possible. Advertising can be considered a sunk cost. The rise of

the social media can be a welcome turnaround for Max Garage and Mechanist. Advertising

through the social media can be an ideal way which can be used to ensure that the brand image

and exposure can be developed.


 Promotion through the social Media: the company can offer a discount if the customer shares

their experience in the social media. This would work as a word of mouth and ensure that there

would be promotion of the company services.

 Personal Selling: this is one aspect which would be used to ensure that the different agents are

hired on a commission basis. They would be going around meeting car owners at gas stations,

car wash service centers and give them an offer of getting membership at Max Garage. This

would ensure that the agents would explain the customers and try to sell in a personal capacity.

This would help to spread the word of mouth without having to bear huge costs [ CITATION

Kri16 \l 1033 ].

Corporate Social Responsibility

The company would dedicate part of its profits to Bait Al Khair society to ensure that the development

of the poor and needy is always forwarded. In the long run the company would offer free car repairs to

the needy of the society. For example there are people who have a car but do not have the funds to

repair their cars. These type of services would be offered to ensure that the poor and needy of the

society would be benefited[ CITATION Kot12 \l 1033 ].

Conclusion

Mechanist can be an ideal service line extension for Max Garage. However, there are challenges ahead.

The government certification and the finance costs could be a major hurdle. The dwindling economy

might also mean that the chances of recovering the investment can be a challenging aspect for the

business[ CITATION Kot12 \l 1033 ].


References

Gertner , M. I. (2013). The Value Chain and Value Creation. Advances In Management, 6(10), 1-4.

Kotler, P., & Keller, K. L. (2012). Marketing Management. Pearson.

Kotler, P., Keller, K. L., Hassan, S., Baalbaki, I., & Shamma, H. (2012). Marketing Mangement . Pearson.

Lorette, K. (2016). The Importance of Marketing for the Success of a Business. Retrieved from

www.smallbusiness.chron.com: http://smallbusiness.chron.com/importance-marketing-success-

business-589.html

Max Garage. (2020). About Us. Retrieved from https://maxgarage.ae/about-us/

Smith, D. (2010). Exploring Innovation. Mcgraw-Hill.

(2020). United Arab Emirates Confectionery - Market Assessment and Forecasts to 2024. GlobalData.

Retrieved July 10, 2020, from https://www.marketresearchreports.com/globaldata/united-arab-

emirates-confectionery-market-assessment-and-forecasts-2024

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