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    3 views8 pages

    Marketing Plan Cloud Cab Abbreviated

    Uploaded by

    zoha nabeel

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    CLOUDCAB SMALL JET TAXI SERVICE Abbreviated Example Marketing Plan NOTE TO READER “This is an abbreviated version of a macketing plan for 1 fictitious fim, CloudCab Small Jet Taxi Service. “This appendix is designed to walk you through the main steps of marketing planning. The idea is to provide you with an example early in the course 80 You will have a beter understanding throughout the chapters of how the pieces of a marketing plan come together. Chapter 2 is devoted to the topic of market- ing planning, providing a marketing plan framework and explaining the parts, That framework is used to develop this abbreviated example. Note that in prac- fice most marketing plans contain more depth of detail than s provided here, Alco, zemember that each chapter ends with a Marketing Plan Exercise designed to guide you in applying the concepts from that chap- terto a marketing plan. SITUATION ANALYSIS CloudCab seeks to provide solutions for the time- conscious traveler using quick, laxarious jet transpor- tation. The small company was founded by former pilot Travis Camp and is now poised to be a firt- ‘mover into the California /Nevada/Arizona market EementsofMarkting Svategy Panning. and Competition CloudCab will provide an altemative to frustrating: ‘waits atthe airport and long car tides ata fair price {or its customers CloudCab will use small, underutilized airports and a new class of Very Light Jet (VL)) fo quickly ‘and comfortably trancport customers from one city to another. Its customers will come primarily from businesses needing quick, on-demand transporta- tion. Initially, CloudCab will not face much direct competition, so its biggest challenge will be to con~ ‘vince customers ofits benefits over more traditional products. Macro-Level External Environment Political and Legal Like all companies using the skies, CloudCab is subject to the rules set forth by the Federal Aviation ‘Administration and other regulatory bodies. Fortu- ‘ately, smaller jets have many of the same air prvi legos as their larger counterparts. This ensures access tonveded airspace and air traffic control services ‘The political and legal environment has the potential to become an even more positive face tor for CloudCab as. business. expands. Cloud- Cab uses smaller, underutilized airports, thereby drawing traffic away from congested major hubs and increasing the effidency of the entire eystorn. 1f CloudCab is successful, this may actually induce lawmakers to provide Incentives for companies like ClowdCab. Furthermore, larger airports are already facing ‘capacity sain If CloudCab ties up the governmen- tal resources needed by larger planes carrying more passengers, there may be pressure to limit the use of Small jets a lange aicpors. Sociocultural ‘The macro-trend of consumers leading ime-poor lives continues as both individuals and companies strive to be more eificent in their day:to-day opera. tions. Coupled with an increase in waiting times at major airports due t heightened security procedures, this hae led today’s consumers tobe even more com scious of te time spent in transit. Many are willing to pend extra money on faster, more eosivenient travel ‘options. Technological Until recently, smal jet service on a lage seale was prohibitively expensive. The limited number of peo- ple willing to pay for such service could not compen- fate forthe high cost ofthe jet tel. Due to in technology and the advent of the VLJ, this has begun to change. Several companies have been able {© produce VUJs forthe relatively low price range of, Si milion to $3 million each. Using these efficient threeto-sicpasenger jets, a taxtlike air service is now economically feasible Economic ‘The overall state of the economy will have a large impact on CloudCab’s succes, since business travel dectines precipitously during ecanomic downturns. Since some industries inherently require more travel than others (eg,, consulting, sales) and thus have a larger impact on demand for CloudCab services, ‘CloudCab should particularly watch the health of ‘hose industris as predictors of domand for its owen ‘CloudCab is also heavily dependent on the ability and price of oil. Higher oll prices will erode ‘CloudCab's margins, while shortages may effectively stall the business. The risk involved in relying on a potentially price-volatile resource must be effectively managed to ensure success. Competitive Environment ‘Threat of New Entrants 1 CloudCab is successful it may entice others to ‘enter the market. CloudCab’s businessis very capital intensive, though not as much so asa traditional ai Tine de to smaller lower-cost jot and a Limited oper. sting, area. Stil, the capital needs are sufficient to Geter entry by many. ‘The biggest hurdle facing new entrants is the lead time necessary to procure the VLJs. This requires planing years in advance of actual operation due to backlogs in manufacturing and high demand. Thus, company is ot in the business nowt would likely bbe atleast afew years until twas able to enter. In the seantime, CloadCab would have some waming that new competitor was coming. Rivalry among Existing Firms Fortunately, CloudCab will be one ofthe frst to mare Jet, so initially there will not be many direct com- petiters, For a while, companies currently pursuing, Similar strategies should have ample market share to coexist peacefully, expecially since most are geo- graphically concentrated. However itis just a mate ter of time before a few establish themselves as the dominant brands and expand nationally, increasing, the rivalry and pushing some weaker players out of Ddusiness. ‘ClouelCab will fae some indirect competition irom the start from ther private jet options. These include partil ownership plans and pay-by-the-hour mem- bership cards. Until now, these have been the soli fons of choice for spoody, nwarious travel ‘Threat of Substitute Products ‘CloudCab's greatest threat will likely come from sub- stitute products. Consumers have a variety of options ‘when it comes to transportation. For regional travel, they can choose to fly on a traditional alrline, drive their car, er in some cases take a bus or train. These ‘options do not provide nearly the same level of com> fort and speed as air taxis, but they do accomplish the task of geting « person from Point A to Pomt B ata sgnifcantly lower cost. Also, for business trav- ers, technology solutions such as videoeonferencing, snd cven PC-driven solutions such as Skype Internat phone service make physical travel i» some types [Of meetings nonessential. If national security Uavel limitations develop oF an economic downturn forces firms to cut business travel, these substitutes will predeminate, Bargaining Power of Buyers ‘CloudCab primarily competesin the business-to-bus- sess (B2B) market space, and it will be catering 0 ‘only a few customers pe flight on a limited number of flights. This means that any one customer's deci Son to se CloudCa has a lange proportional impact, ‘especially during CloudCab’s early years. CloudCab will fave to treat esch customer vell because it can- rot afford to lose any Stil, single traveler will notbe ‘able to demand, or bargain for, changes fom Cloud Gob booms the sort of making thooe changes will likely be langer than Uhe revenue collected from that ‘one buyer. On the other hand, a major crparate cli- cat_eupplying many pamsmgecs over Eene—veuld Wield conbiderable power. Bargaining Power of Suppliers. ‘CloudCab uses a single manufacturer for is els; ‘thus the level of dependency is high. Ifthe jets are not evady in Eme or do not moot epecificstions, ‘GloudCab could be put out of business, I Cloud (Gab's manufacturer © notable to Full its contract, ‘CloudCab might have to wait years to have an order filled with another eopplice. Conecquenty, Cloud- (Cat's supplier is in a song postion to bargaln for Internal Environment Firm Structure ‘GloudCab, being relatively new, is far smaller than ‘mont business inthe silineIndisty. Having, fw ‘employees makes communication easy and responce {change quik to one Relining atthe omepee y's success depends heavily om customer adoption ‘ol thenow offering Cload-ab excetives’ actions are

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