Professional Documents
Culture Documents
Mech
N
Cab
MARKETING PLAN
Submitted By
Submitted to
Date
May6, 2007
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Mech n Cab
ACKNOWLEDGMENTS
Perfection was watchword we had in our mind when we started working on this report. However,
people generally agree that person can only approach excellence but never actually achieve it.
Exquisite perfection is rather trait of God, and by His grace, we tried very hard to make this report
meritorious.
The project was assigned to us by Zeeshan Javed. We are thankful to him for
giving us a chance to learn about marketing strategies. This will help us in enhancing our
entrepreneurial and creative skills.
In successful launch of our Mech n Cab, we are thankful to several people without
whom the launch would not have been possible. Thanks to mechanics shops & some automobiles
services companies for providing us useful information. We thank our families for their support and
coping up with our absences.
Thank you
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Mech n Cab
TABLE OF CONTENTS
2 MARKETING PLAN
SWOT Analysis 6
BCG matrix 7
3 MARKET SEGMENTATION 8
Broad Potential Market
4 PRODUCT POSITIONING 9
5 PRODUCT BRANDING 10
Brand Name Decision
Branding Strategy
6 COMPETITOR ANALYSIS 11
Major Competitors
Overall Strategy for Responding to Competition
7 MARKETING MIX 12
Pricing
Place/Location
Product
Promotion
8 FINANCIAL PLAN 17
Expenses for Business Operations
Sources of Finance
9 ACTION PLAN 19
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Mech n Cab
EXECUTIVE SUMMARY
The report is providing the detailed information about our product & services which we are
going to launch. We are introducing a completely new idea that is, Mech n Cab. 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.
For data collection, we have used many types of tools like we have conducted surveys
through interviews and observations in many areas of the city.
Brand Name
`Mech n Cab`
Mech n Cab is automechanic services. 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 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 our idea of
launching Mech n Cab in the market on the surety that is potential customers who care for
their cars & time. On the basis on research and intelligence there are no any relevant services
provider available in the market. 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
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Mech n Cab
MARKETING PLAN
SWOT Analysis
W
E
A
K
N • New idea can be rejected
E
• Time Problem
S
S • People may prefer their traditional mechanics on Mech n Cab
E
S
O
P
P
O
R
T • Expand product lines to meet broader customer needs
U
N • No direct competition
I
T • If appreciated by the consumers then we will extend our branches
I
E
S
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Mech n Cab
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.
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Mech n Cab
MARKET SEGMENTATION
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.
In order to formulate an effective marketing and promotional strategy, the target market for
Mech n Cab has been divided into 4 different segments:
Geographic Variables
Demographic variables
Psychographic variables
Behavioral variables
• NO Concern
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Mech n Cab
PRODUCT POSITIONING
The competitive advantage over the mechanics would be our business USP.
Its criteria are based on:
1. Communicable:
Since our product is innovative, and its brand name carry’s its feature, the message is
very clearly being communicated to the target market.
2. Affordable:
It has a cost advantage, over our indirect competitors.
Our brand over all positioning strategy is: more for less.
Positing statement of is influential and communicates the message to our target market.
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Mech n Cab
PRODUCT BRANDING
Our brand name is Mech n Cab representing the feature of our services.
Branding Strategy:
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Mech n Cab
COMPETITOR ANALYSIS
Major Competitors
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, 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.
Customer Loyalty
We plan to gain long-term customer loyalty by offering quality services through our
branches. We would offer discounts to our members.
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Mech n Cab
MARKETING MIX
Pricing
Pricing Strategy
We intend to follow the Price penetration strategy because our product is innovative.
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. Our product image is to provide better
services in low price as compare to market. We are selling at selective places but more
profitably there are no competitors entering the market easily.
Place/Location
Product
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. 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.
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Mech n Cab
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Mech n Cab
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.
We came up with the idea of promoting automechanic services in Karachi. Then to be more
precise we came up with the idea of Mech n Cab, after which we on researched the various
products that can be sources of Mech n Cab:
Idea Screening:
After research, we analyzed each source and with our objective (profitable customer
satisfaction). It was analyzed that:
Mech n Cab will be the fast service provider at affordable prices. In the opinion
of the people Mech n Cab is the best idea in terms of aeromechanical services.
Business Analysis:
Our sales cost and profit/loss projections for the period of one month
Sales 900000
Cost 646000
Gross Profit 254000
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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, 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.
Promotion
Methods of Promotion
• Advertising
• Sales Promotion
• Public Relations
Advertising
Advertising Strategy
We will be targeting people of high income and owner of cars registered in last five years in
Karachi, approximate number of vehicles in cantonment Karachi is 1.5 million which will be
later catered by our company.
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.
Major media types:
• TV
• News papers
• Outdoor Advertising (Hoardings, Billboards)
• Magazines
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Mech n Cab
2) Media Vehicles:
News Paper
Outdoor Advertising
• Distribution of posters & broachers
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Mech n Cab
FINANCIAL PLAN
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Mech n Cab
Total Cost
Description Amount
fixed cost 593000
Variable Cost 53000
Total Cost 646000
Break even
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
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Mech n Cab
ACTION PLAN
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