tkgscc
TRANSCRIPT
Marketing plan
By
Jobyna Terry
Kiona Walton
Crystal Gregory
Genet Takele
Courtney Taylor
Stievenson Delinois
TKGSCC CORP.UNITE GLOBAL POSITIONING SYSTEM
MISSION STATEMENT The purpose of our marketing plan is to provide a long
term strategy that benefits the greatest number of consumers in our market. TKGSCC Corp aims to provide uniqueness, customer care, & quality to all automobile drivers with a GPS that is inexpensive & provides real time weather, traffic, and routing updates to keep them safe in their travels. TKGSCC Corp will act as a full-service wholesalers using the specialty merchandise wholesalers methods.
INTERNAL STRENGTHS&
WEAKNESSES
FINANCES
Currently, since we are a newly established company we only will produce one hundred thousand GPS systems which will bring in roughly $150,000 for 2010.
We will increase our production rate by 75% to accommodate the projected sales of about $270,000 for 2011. We also manufacture GPS chips through our engineering specialist team located in our Japan office.
When we produce the two hundred chips we plan to generate around $12,000 for 2010. Our company plans to increase our production rate by 50% to satisfy our projected sales of about $18,000 for 2011
HUMAN RESOURCES TKGSSC will employ a minimum of 55 employees in the
start up of the company. This will include 4 engineers, 2 payroll accountants, 2 attorneys, 4 managers, 2 Graphic designers, 10 manufacturers and packing, 4 marketing, 4 customer service reps, 2 Human resource reps, 2 finance reps, 8 shipping and distribution, 3 packaging, 3 receiving, and 5 executives.
The managers will be business degree professionals that are already experienced. The staff will be trained before any production is started.
Additional staffing is only needed in the growth stage of our company. After training, employees will be able and ready to prepare and develop the GSP and micro chip upgraded for standard GSP systems. If other additional staff is need we will post job opening in the new paper and on monster.com.
MANUFACTURING TKGSCC Corporation has all the necessary facilities and equipment to meet
current customer demands effectively. We have acquired an office building in the United States and in Japan to handle the manufacturing.
We have partnered with Alpine Electronics and AT&T to produce the necessary components that we need to assemble our GPS systems. Alpine Electronics is located in Japan and we have a building set up there so that the manufacturing can get done and then they mail us the products and we put the finishing touches on them in our office in the United States.
We have the capability to produce two hundred chips for customers to buy that already have GPS systems and would like to update them to have the same capability as our systems. Both of our facilities are sufficient and stable enough to meet the current and new demands. TKGSCC Corporation is a newly established company; therefore we do not have any aging equipment.
Majority of our assembly is done in our Japan office by hand at low cost, but we do have some new machinery that is needed to help assemble and produce the products. The new equipment will increase production and assembly rates, which will enable TKGSCC Corporation to handle our production increase rates for 2012. TKGSCC Corporation will continue grow in the manufacturing aspect in the years to follow our projected rates for 2012.
RESEARCH & DEVELOPMENT
TKGSCC’s Unite is a freshly established a Global Positioning System that continuously provides updated information.
This constantly searches out new traffic reports, routes, and weather conditions in order to improve the efficiency of our customers travels.
Our marketing strategy involves promotions such as discounts, extra equipment, extended warranties, free 6-12 month weather and traffic updates, and gift cards.
TKGSCC sells to different branches of stores on the market today. As an example; the main stream market. Advance auto parts, Auto Zone, Pep boys, Wal-Mart and Radio Shack.
PRODUCT EVALUATION
This plan covers multiple products(one product, one service). We are in the introduction stage of our company. There will be no special packaging to consider. Although this may be true, may cause a price war due to our low prices and this may cause a decrease in competitors sales. There will be no substitution products to consider.
PRICE TKGSCC Corporation prices their products at reasonable prices. The price for the
GPS will be $120. We have a chip that will be sold for $60 which will encourage other consumers who have another company’s GPS to buy the chip and they can benefit from our special features without going out and buying a brand new GPS. In competition with other leading brands like Garmin, TomTom and Magellan who have GPS’s roughly from $75-$800 TKGSCC is the better value for the money, and we promise to always provide customers with easy-to-use, inexpensive products.
When pricing the GPS system we will be using penetration pricing because setting
the price to high may discourage many people, and there are some who are willing to pay an expensive amount but for the sake of the economy, pricing it reasonably will be best and it will generate revenue quickly, also it hold a good percentage in the market share and possibly expand to sell and manufacture in other countries.
Consumers prefer constant prices. If the corporation feels that there is a decrease in consumer demand, and if they do have to raise prices they should have a promotion, for example "If you buy GPS today, you will receive a $10 gift card to go towards accessories, or to any TKGSCC products." The gift card is treated like cash so either way TKGSCC will rejuvenate the income, even though it seems like they lost money by offering a gift card.
PLACE & DISTRIBUTION TKGSCC products can be found in over 25,000
distribution stores throughout the United States and over 50,000 globally.
TKGSCC products can be ordered and delivered from the Electronic channels such as Amazon.com or EBay. TKGSCC has a computerized order entry system that disseminates current demand.
TKGSCC Corporations have an adequate network of intermediaries with companies that have many outlets worldwide to properly communicate with buyers through in-store displays, demonstrations, and personal selling.
Throughout these outlets, there are staffs that are highly trained to inform buyers how TKGSCC products can meet the costumer’s needs
PROMOTION Consumers are currently aware of TKGSCC’S product.
The existing attitude about our GPS System are positive ratings in its quality.
The real time weather, traffic, and routing updates along with a number of features and promotions motivates consumers to purchase our Unite GPS.
Considering that we are currently in the process of recovering from a recession our low prices are attractive to the consumer as well.
TKGSCC plans to convert over 50% of customer traffic to sales within our first 2 years of business.
There is no buying cycles or season in our business. We receive low repeat business and also offer 18 months warranties. Because of our high quality product we do not get much repeat.
EXTERNAL OPPORTUNITIESAND
THREATS
SOCIAL AND CULTURAL ENVIRONMENT
Today our consumers are more technology savvy.
Along with being technologically advanced, our society does everything in a timely matter.
Since our system provides updates with quick relay time on information this leaves the consumer with a safe and less time consuming travel.
ECONOMIC ENVIRONMENT Currently the economy is in the process of recovering
from a recession. Based on the gross, disposable, and discretionary components of the consumer’s income they should be able to afford our product.
GPS sales have risen dramatically over the last year. Within the industry that we are competing in the economic environment has not affected our competitors
TKGSCC Corporation should not be affected either. The economy has been going through inflation, unemployment, and interest rate problems; that will not affect us.
The economy is no longer undergoing a full recession, so our product and company will make a stand in the market.
TECHNOLOGICAL ENVIRONMENT The current technologies are touch screen monitors and voice active.
The future technology could possibly be flat head monitoring and pictureimages to help know surrounding.
Our customers can find our products online or in major retailstores such as, Best-Buy, Wal-Mart and Target. Faster ways to distribute theproduct will be sending out an ad to the people's households in localsurrounding areas that will attract customers and will bring in morebusiness.
The trend in the industry is more easier eco-friendly items,with our navigation customers will never feel left out, our system has up todate technology and it has an automatic upgrade option that will appear onthe screen when updates become available.
Consumers can purchase the product faster in the store with no shipping fees. If the customer decides to buy online, there will be a low fee of $3.99 but shipping will be free with a purchase of $200 or more.
TKGSCC can reach our target market through advertisements such as newspaper ads, commercials, billboards, emails, and in store ads.
COMPETITIVE ENVIRONMENT Our major competitors are Tom Tom, Magellan, and Garmin. Differentiate price strategies, Unite upgrade microchip, frequent updates TomTom ratings are 3.5, Magellan‘s ratings are 4, Garmin’s ratings are 3.
Our competitors do not carry as many features as Unite and our product is affordable.TKGSCC position in the market is where it needs to be.
Competitive Environment- Substitute
A. How easily can consumers substitute something else for your productor ser vice? No substitutions can be made, unless you have a cell phone thatoffers a mobile GPS service.
B. What percentage of the market do substitute products share? Less than50%
REGULATORY ENVIRONMENT
As an Equal Opportunity Employer, TKGSCC will abide by their regulations, TKGSCC offers diversity training to our staff to ensure a well rounded crew. We also provide our employees with copies of Title VII of the Civil Rights Act & the Equal Pay Act so they are aware of their rights. We also follow FMLA because we have more than 50 employees. Therefore we try to follow EEOC regulations as well.
OPERATING ENVIRONMENT Our current customers are between the ages of 16-60. 50% of them have a high school diploma or are more
educated. Also, they have an income of at least $25,000 or more. This portion of the population has grown increasingly in the technology world.
External issues that might influence the buying behavior of these customers is competition with other businesses and prices. If customers feel that our GPS is cheaper and more reliable then we will be the top seller.
But if a competitor creates a GPS cheaper and better than our sales will most likely decrease. Our future plans still include having up to date technology and we are already ahead of other because our chip is universal and can be used for any GPS
SUPPLIERS
TKGSCC Corporation is located in the U.S. and in Japan where our primary supplier is located. We are dependent upon Alpine Electronics for supplying our chips and helping with the design of the GPS. There is not any price fluctuation existing in the market through which we purchase raw material or suppliers.
For 2010 we will develop an inventory of our GPS and chips. For the years to follow we will have inventory readily available. We will also base inventory holdings of GPS and chips on a projection of average monthly sales. Our major supplier is extremely stable and price consistent; therefore, we do not need to consider alternative sources.
PRIMARY MARKET SEGMENT
Our primary market is automobile drivers that do not have a GPS. 45 % of sales are in our market. By the year 2011 we plan on having over 65% of sales in our market.
There will be multiple consumers purchasing the Unite GPS and people that had GPS before will convert their GPS with our chip.
--------$ volume of sales. Frequency of purchase is not usual.
DEMOGRAPHICS DESCRIPTION (Drivers) Age: %Population 18-24 10% 25-34 31% 35-49 33% 50+ 26% Median Age 40% Sex: Male 55% Female 45% Drivers Income: Under: 15,000 10% $15,000-$24,999 20% $35,000-$49,999 45% $50,000+ 25% Family size: Drivers (2 Persons) 45% Drivers (3-4 Persons) 35% Drivers (5+) 20%
Stage of Family Life Cycle: Young Married, No Children 8% Young Married, Youngest Child Under Six 25% Young Married, Youngest Child 6 or Older 22% Older Married, No Children 15% Older Married, With Children 26% Older Married, No Children Under 18 19% Education: Some High School 5% High School Graduate 15% Some College 35% College Graduate 45% Race: White 21% Black 39% Hispanic 13% Asian 14% Other Race 13% Occupation: Employed 70% White Collar 41% Professional Managerial 35% Blue Collar 20% Other 15% Unemployed 10%
GEOGRAPHIC DESCRIPTION
Regions Current Users
Potential Users
Discount Purchases
North 17,200 21,400 35%
South 21,000 19,200 56%
East 18,560 20,300 44%
West 17,300 15,200 62%
Midwest 19,100 23,900 40%
PSYCHOGRAPHIC
ANALYSIS OF USER BENEFITS Product features: 3-D motion sensitive, color touch-screen
monitor, real time traffic (courtesy of traffic.com), weather( the weather channel), and new route updates for avoiding accidents and congestion, visual and voice guidance, global maps (longitude and latitude settings for military use), storage for over 30 destinations, 8 gigabytes for music, adjust for night vision, road side assistance button, rest-stop and points of interest locator (malls, gas stations, tourist sites, etc.), rechargeable battery and solar power battery, clearly spoken directions & car alarm capabilities.
Needs: For customers without GPSs’ the need is to purchase a GPS that provides directions accurately and safely in a timely matter.
Rate of Use: GPS’s sales have double over the last 4 years when everyone else’s sales dropped according to google.com.
User States: All 50 states
Readiness to Buy: The customers’ readiness to buy is high due to the feature our product has.
Brand Familiarity: Unite is fairly new to the market and our brand is not known as much.
Type of Buying Activity: Canalys estimates that just under 4.5 million devices were shipped in Q2 2009, beating the previous quarterly record of 3.3 million. In 2010 TKGSCC will be shipping out 55% of 2009’s numbers. By 2014 IT FACTS predicts that the market for GPS in Europe will increase by 270 million and Unite GPS will be among 900,000 being shipped to Europe for sell.
Kind of Store: Unite will be sold in stores such as Best Buy, Radio Shack, Wal-Mart, Target, Auto Zone, Advanced Auto, Pep Boys & electronic channels such as EBay and Amazon.com
SECONDARY MARKET
TKGSCC Corporation’s secondary market is the consumers wanting to buy just the chip for upgrading purposes. The chip consumers account for 46% of the total GPS sales generating on average $12,000 for this year.
TKGSCC Corporation currently holds 100% of this market because no other company produces this GPS chip. Within the 100% there will be 200 GPS chips sold this year bringing in $12,000 in sales revenue. Consumers purchase GPS’s frequently meaning they will need to purchase a GPS chip for upgrading.
SECONDARY MARKET DEMOGRAPHICS
GEOGRAPHIC
PSYCHOGRAPHIC
ANALYSIS OF USER BENEFITS Product features: 3-D motion sensitive, color touch-
screen monitor, real time traffic (courtesy of traffic.com), weather( the weather channel), and new route updates for avoiding accidents and congestion, visual and voice guidance, global maps (longitude and latitude settings for military use), storage for over 30 destinations, 8 gigabytes for music, adjust for night vision, road side assistance button, rest-stop and points of interest locator (malls, gas stations, tourist sites, etc.), rechargeable battery and solar power battery, clearly spoken directions & car alarm capabilities.
Needs: For customers without Unite GPSs’ that want the addition features that is not offered by their standard GPS.
Rate of Use: Upgrading GPS chips are new to the market and have a low rate of use.
User States: 15 states ( NY, VA, GA, FL, CA, PA, TX, NJ, NC, MO, MD, LA, OH, MN, AZ)
Readiness to Buy: The customers’ readiness to buy is high due to the feature our product has.
Brand Familiarity: Unite is fairly new to the market and our brand is not known as much.
Type of Buying Activity: Canalys estimates that just under 4.5 million devices were shipped in Q2 2009, beating the previous quarterly record of 3.3 million. In 2010 TKGSCC will be shipping out 55% of 2009’s numbers. By 2014 IT FACTS predicts that the market for GPS in Europe will increase by 270 million and Unite GPS will be among 900,000 being shipped to Europe for sell.
Kind of Store: Unite will be sold in stores such as Best Buy, Radio Shack, Wal-Mart, Target, Auto Zone, Advanced Auto, Pep Boys & electronic channels such as EBay and Amazon.com
PRODUCT OBJECTIVES & STRATEGIES
Objective: Increase sales revenues to $30 million by capturing an additional 20% of drivers who do not own our GPS system (4.5 million) and 30% of the total market (3.2 million) from drivers who own a GPS but want to upgrade will purchase the microchip….all under a cheap low price!
Target Markets: Primary, SecondaryDate of Completion: December, 2010
Strategy #1: Sell our GPS System/Microchip in top of the line stores/but limited places….such as Best Buy, Wal-Mart, K-mart, Radio Shack, Target, and etc. Which are in the United States, broaden our GPS market globally by using the internet. Start Date: April, 2010 End Date: September, 2010 Projected Cost of this Strategy: $3,000 Responsibility: Distribution Dept/ Steivenson Delinois and Manufacturing Dept/Kiona Walton
Strategy #2: Create a pricing strategy based on quantity discounts. GPS systems/Microchips will be sold at prices that are lower than Tom Tom. (Coupons, gift cards, buyone-getone deals, and etc.)
Start Date: May, 2010 End Date: September, 2010 Projected Cost of this Strategy: $3,000 Responsibility: Finance/ Crystal Gregory and Pricing Dept/ Courtney Taylor
Strategy #3: Advertise our Product…Billboards, Coupons in the mail, and etc.)
PRICE OBJECTIVES & STRATEGIES Objective #1: To increase sales within our GPS industry by 75%. Target Market: Primary Completion Date: January, 2012 Strategy #1: Create a penetration pricing strategy based on quantity
discounts. TKGSCC Corporation Global Positioning Systems will be sold at prices that are lower than Garmin and Tom Tom.
Start Date: July, 2010 End Date: September, 2010 Projected Cost of this Strategy: $1,500.00 Responsibility: Finance and Marketing departments Objective #2: To increase sales within our GPS chip industry by 50%. Target Market: Secondary Completion Date: January, 2012 Strategy #2: Create a penetration pricing strategy based on quantity
discounts. TKGSCC Corporation GPS chips will be sold at prices low enough to get consumers to purchase it.
Start Date: July, 2010 End Date: September, 2010 Projected Cost of this Strategy: $500.00 Responsibility: Finance and Marketing departments
PLACE/DISTRIBUTION OBJECTIVES & STRATEGIES
PROMOTIONAL OBJECTIVES AND STRATEGIES Objective: Increase product awareness among the target
audience by 30% and inform target audience about features and benefits of our product and its competitive advantage, leading to a 10% increase in sales in one year.
Target Customer Group: Primary, Secondary Date of Completion: In one year periodStrategy #1: a 20-second radio advertisement spot to air in
afternoon/evening hours. Spots will focus on easy access and affordability. It will cover the many different features that makes the whole thing easy.
Projected Cost: $500.00Responsibility: Marketing Department
Strategy #2: a technology magazine advertisement. Projected Cost: $350.00
Responsibility: Marketing Department
EVALUATION & CONTROL