Thursday 31 January 2013

MARKETING PLAN AND PROPOSAL FOR KIA MOTORS LIMITED



                                              Executive Summary

There is a need in Cross River for a large selection of quality cars, and KIA MOTOR LIMITED will sell these top-quality vehicles at a competitive price. As the sale manager I have over 5 years of combined marketing experience. I will continue to develop excellent working relationship with KIA MOTORS and the customer.

I will be successful because I offer something different; a pleasant car buying experience. I will create a purchasing environment that caters for the customer's needs. I will introduce a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family.

 Objectives

Ø  100% customer satisfaction, measured through repeat customers, referrals and surveys.

Ø  To achieve and surpass the industry average profit margin within the first two-years.

Ø  To achieve a respectable net profit by year two.

 Mission
I will provide a unique car buying experience to the customers in Cross River State, one that focuses on customer satisfaction first. I understand that vehicle purchasing is a necessary, but sometimes unpleasant experience. My goal is to provide the customer with an enjoyable,
honest service by satisfying individual customers practical transportation needs with a quality product.

I also believe it is important to have quality vehicles at a low cost, and will back each vehicle with a 30 day limited warranty. KIA MOTORS will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners; I will create a working environment that is enjoyable and profitable for all.

 Keys to Success

To succeed in this business we must put together a team of experienced professionals.

Ø  Secure an excellent high-traffic location.

Ø  Establish a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive price.

Ø  Ensure customer satisfaction by encouraging the two most important values, honesty and integrity.

Ø  Create high morale by rewarding employee success with monetary compensation.

 

 

Company and product

 

Kia Motors is being led by an ambitious and industry-focused management team who play a vital role in the day-to-day activities in growing the brand around the world. Kia brand of vehicles, manufactured by KIA Motors Corporation, South Korea is one of the world's fastest growing automobile companies.

 

With an immense success of introducing to Nigeria the wide range of passenger, commercial and special vehicles, KIA Motors Limited has won many Award in the automobile industry and Award for Outstanding Effort and dedication.

 

Competitive Comparison

 

KIA Motors has several advantages over its leading competitor; therefore I will use these advantages as a benchmark for my marketing strategies.  They include;

 

Ø  Quality inventory, backed by an excellent warranty, for a competitive price.

Ø  A very thorough inspection process to avoid selling any "lemons."

Ø  A highly-experienced sales staff with a mission to serve the customers by making the necessary purchase of a vehicle an enjoyable experience to matched customer satisfaction.

Market Analysis Summary

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of cars available for sale.

Market Segmentation

My market segmentation will consist of four basic segments; students, retired, families, and singles.

Students will include high school and college age students who need a safe and economical car. This group is concerned with price, flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for fewer cars. They will also buy cars more often than others, on average every two to three years.

The retired group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years.

Families will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model.

The last group is the singles. They are similar to the students in that they want flashy cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.

The Market Analysis pie chart shows an average increase of 10% in potential customers. Many of these groups will want to trade up for a newer or more expensive vehicle at a later date. This will create an ever increasing market for good car buyers.

Market Analysis

Customers      Growth     Year 1          Year 2                  Year 3           Year 4           Year      CAGR     Students       10%           3,000          4,500                     5,000          6,000             6,800     10%

Retired             12%           6,000          6,200                                7,000           8,000             9,000     12%

Families          10%           3,000          4,500                                5,000           6,000              6,800     10%

Singles                10%           2,000       2,200                    2,400           2,600             2,900   10%

Other                 10%           2,000       2,200                     2400          2,600                           2,900     10%

Total                   52%          16,000    19,600                     21,800      25,200            29,400    52%

 

Target Market Segment Strategy

We focus on providing for the average car buyer first. Our focus will be on those most likely to purchase high-end, high-cost vehicles (highest profit margin). The students, families, retired, and singles have very different needs and wants. We will focus on each group separately, and prioritize our efforts. We will look at every customer as a potential repeat customer, reference, or spokesperson for other car buyers.

Market Needs

There are two important underlying needs: quality vehicles at competitive prices, and a large supply of available vehicles.

There is a real need for a highly professional car dealer who can provide quality vehicles at competitive prices, in a pleasant purchasing environment.

There is also a practical need for new car dealers to move a large used car inventory that takes up valuable space on their lots.

Market Growth

With available market information, new car sales have risen 14%. Spending on new cars continues to rise, despite a slowing economy. As population increases in the area, so will the need for vehicles. Another strength is the fact that people are keeping cars for a shorter period of time before trading or selling. The average driver buys a new (or used) vehicle every four years. Vehicles are also maintaining more value. The result is continued increases in sales and profit margins.

Industry Analysis

The car sales industry is growing at or above population increases. Vehicles are the second largest purchase most consumers make, and more people are buying new and used vehicles than ever.  Relatively good margins have resulted in some success in the local used car industry.

Competition and Buying Patterns

Car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more we can provide a high-quality sales experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other car buyers. This company will build an excellent working relationship with our suppliers and customers.

Strategy and Implementation Summary

The location of company is a very important competitive edge. The company is located in the middle of the City and this will help my marketing strategy because people travel from all over the area to buy vehicles here.

The other competitive edge we need to develop is the buying experience and reputation as a local leader in customer satisfaction. This advantage is important to us because we rely on word of mouth to generate additional customers. Integrity is our difference.

5.1 Marketing Strategy

 

My marketing strategy will focus on two segments. Those segments are described in the following subtopics. I will implement a strategy that treats customers as a community. This means our marketing resources will be centered on advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

The marketing budget will be according the company projection. Marketing promotions will be consistent with the Mission Statement and support the following objectives:

Ø  100% customer satisfaction, measured through repeat customers, referrals and surveys.

Ø  To achieve a respectable profit margin within the first three-years.

Ø  To achieve a healthy net profit by year two.

5.1.1 Pricing Strategy

I intend to introduce a pricing strategy will be based on competitive Blue Book values (wholesale and retail) plus vehicle handling fees. I will not exceed competitive retail prices, and will attempt to sell at wholesale plus a fair profit, generally 15-25%. Quality and price say a lot about our vehicles. The vehicles that are rare or not readily available to meet demand will be priced accordingly. The average industry mark-up for similar vehicles should be 20-30% otherwise decide by the company.

5.2 Sales Strategy

Sales compensation is based on a percent of profits. I will invest adequate time and resources into training each member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased commission and bonuses. However integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.

 Strategic Alliances

We depend on our alliance with local new car dealers and auction houses to maintain our inventory. This relationship is crucial to our success and will be placed ahead of petty differences. Our financial relations with these groups will be handled in a timely and accurate manner. We need to make sure that the personnel, and especially the ownership, of our allies are aware of our support and reciprocation. We will also depend on outside sources for professional development of our sales staff.

Web Plan Summary

I intend to develop a blog Web page and other social network for KIA Motors such face book marketing, email marketing etc, this is one of the secret that I will use to implement my marketing strategy through Yahoo! And google.com, that is customers can visit and view a list of current inventory. I anticipate being operational on net within four months of operation. This would allow those customers who are seeking a specific vehicle to save time by looking before they come. I will include photos and general information for each vehicle.

We will rely on outside help to initially establish the web page because of the little cost involve. I intend to maintain the site myself since I’m knowledgeable in that area. Our Web page would be advertised through all correspondence, business cards, and advertisements. This will provide a "link" to additional information. I will measure success through the hit counter and customer feedback, and re-evaluate or modify the Web page as necessary.

I will develop and maintain a database of vehicle inventory. From there we add specific information on each vehicle, and an aggressive search engine positioning program. I will use the database to make regular contact with email newsletters and notices about new arrivals, special offers, and referral services.

Development Requirements

The KIA Motors website will be initially developed with few technical resources. A simple hosting provider, Yahoo! Web services, will host the site and provide the technical back end.