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.
No comments:
Post a Comment