ZENN Car - Admission/Application Essay Example

Marketing 25 March CHAPTER 11 What factors to be considered while setting the price for setting the price for city Zenn? Costs: If the rate does not include enough margins “to break-even, you’re heading for trouble. The best thing to do is sum up all your costs and divide by the number of hours you think you can bill a year. Whatever you do, DON’T think you can bill every hour. You must account for sick days, holidays, hours working on the business, hours with no work and so on. Also make sure you factor in all the hidden costs of your business like insurance, invoices that never get paid for one reason or another, and everyone’s favourite taxes” (Nine Factors to Consider When Determining Your Price par. 1). Profit: Related to your input costs, you should always calculate how much money you put in and what are the final costs and always try to break even. This is business and there is need to make profit. Market Demand: Demand is always related to supply, if what work you do is in high demand, then you could always charge more for your services. Conversely if there’s lack or shortage of work around, you’ll need lower your costs and expect lesser margins. Industry Standards: It is not easy known the right charges for your work, always find the going rate for the work you do and try asking around. Try finding out what other businesses charge as well freelancers working on similar project. Business Strategy: Your strategy or your approach will determine the price you can charge, different companies selling the same product can always charge different and would never expect to pay the same for both Client: There is always variation of price for the client on the basis of the relationship with them, Some clients require more effort, some have higher risk, some provide more work and are repeat clients, some have projects you are interested in doing, some have work which could be problematic and want to stay away. You should vary your price to account all these factors. 2) What pricing approach would you recommend to the management of ZMC for the city ZENN? The pricing approach which I would suggest the ZMC company is the skimming the cream pricing, “a skimming pricing policy involves setting prices of products relatively high compared to those of similar products and then gradually lowering prices.  The skimming price is the highest price possible that buyers who most desire the product will pay” (Allen). This pricing is selected because it is the idea generation turned into a success by an eminent named Ian Clifford; the ZMC was the first company in Canada to come out with a zero engine noise with the least emission and the first electronic vehicle. The time considered at the time of the established there being little competitors, this is the useful method. CHAPTER 12: 1) Describe the current channel of distribution for the ZENN car? The Company’s primary focus is to sell vehicles to both individual consumers and bulk purchasers who need more than on as a retailer network. The focus has initially been mainly targeted on the United States marketplace and further consideration is being to add others areas in world market as well. During future course of action the Company may also look at changing there distribution channels that would be helpful to, and work in coordination with, the ZENN retailers. The Company has signed agreements to improve its sales and marketing by covering 17 retailer locations that collectively cover the year’s quota of 750 units. Some of these retailers currently have the exclusive right to a given territory but will lose that right of exclusivity if the purchase quotas are not achieved. The Company is also restructuring its training and marketing programs as part of its “retailer enablement” strategy. The shipment of ZENN’s was to retailers located in cold climate locales. 2) How does each member of the ZENN Car’s distribution channel add value? The each member in the car distribution are the asset to the company, they contribute directly or indirectly for the success of the firm. The employees have the feeling of oneness in their minds and they think they are a factor which can contribute for the profit orientation in the company. The other factors or the benefit which they receive from the company also helps to add value to the company. With the increased ability to deliver product, more efforts are being made to expand the dealer network in key US markets by increase in numbers. These initiatives involve: a) Direct mail campaigns targeted towards specific areas where sales can be improved b) Trade shows and events, both supported by a focused public relations effort The Company will involved as participant as an exhibitor at the upcoming National Automotive Dealers Association (NADA) conference in early February, considered to be the very important annual event for retailers. 3) What criteria should ZMC use when selecting new retailers for the ZENN Cars? While selecting the retailers a full fledged survey should be conducted on the cost performance and the results obtained. The business license, permit and the certifications which are needed are to be assessed. The UBF (unified business identifier) should be there which gives them the authority for the retail sale all over the country. They should have the retailers permit which is issued by the state department and the adequate revenue statement of them which they posses. 4) What type of the distribution strategy has ZMC been using for the ZENn car; need to revise it if possible? The type of the distribution strategy that are been used by the ZENN motors are the retailer strategy, they give the products for shipping through the retailers; the company also has the agreement with the various retail giants. The distribution of the new cars can be done mainly from the online channels; they can give publicity about the buying through the various social networking sites. The company can take initiation and open more outlets for the electronic vehicle, as they can expect good sales as it is a least air pollutant. CHAPTER 13: 1) What decisions do retailers who carry ZENN cars have to make? The retailers who carry the ZENN cars have to first and foremost consider the features, capacity and the advantages of the car. The retailers should thrive much to make the sale of the cars a huge success. The car sales should be effectively and efficiently carried out. The retailers also need to convey the customer about the benefits of buying such an efficient vehicle. The retailers should also give exiting offers and the promotions for the product in the market. CHAPTER 14 TO 17: 1) Describe the promotion mix of ZENN. Marketing and promotion activities are done to focus on promotion of the ZENN brand, the creation of sales support materials and programs, product management, and management of the retailer network. The Company is also involved in co-operative marketing programs as a method to get familiarity with public, advertise and promotion of ZENN brand in its target geographic markets. Company’s marketing strategy has thought of a number of programs which are incentive based to increase the sales through the retailer network. The company has implemented a marketing campaign for their newly develop model, to facilitate promotional campaign through advertising in electronic and print media as well as to also provide the online media publicity through sites like You Tube and other navigator videos. This will help to provide an online reach for the company, to make use of the brand community and to edify the current models to the customers through the websites, and through other social networking sites. 2) You have the budget of $1 million, prepare the communication plan: Task Amount($) Setting up of organization 300000 Provision for rebates 50000 Salaries and expense 250000 Marketing and promotion 20000 Engineering and development 100000 General and administrative 100000 Total 1000000 Works Cited Allen. Pricing Objectives. Witiger.com. 2001. Web. 25 March 2012. Nine Factors to Consider When Determining Your Price. Freelance Switch. 2007. 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