Integrated Marketing Plan Zamada Motors - Essay Example

Boss October 29, Integrated Marketing Plan Zamada The automobile industry is one of the largest industries in the world. In 2011 the auto industry generated total global sales of 72.8 million units (Plunkettresearchonline, 2012). Due to the high costs of fuel in developed nations such as Canada the sale of compact cars has gained great popularity. Small compact cars have lower overall costs, higher fuel efficiency, and lower maintenance costs. The Canadian market is an attractive place for auto companies to penetrate due to the high income of its residents and large population of the country. Canada has a gross domestic income per capital of $41,000 and a total population of 34.3 million inhabitants (Culturegrams, 2012). Zamada Motors is looking to expand its operations into the Canadian marketplace. The firm in 2014 plans on launching a small compact car called the “2.2”. The car is a small two seater with high fuel economy that is targeted to compete with Fiat, Mini, Ford and Toyota. The purpose of this memo is to provide a comprehensive integrated marketing strategy for Zamada Motors. The company has a marketing budget of one million dollars. A million dollars might seem like a lot of money, but to launch an introductory mass marketing campaign in a foreign country the budget the firm has is limited. Despite the budget constraints there are marketing channels that can be used in a combined manner to achieve the goals of the company. The first step for the company is to let the Canadian population know about existence of the Zamada brand. The marketing plan will start by focusing on the brand. The second step of the strategy is to emphasize on the “2.2” to drive the sales of the product. The marketing budget of the firm will be divided in two initiates. The company will spend 20% of its budget to get the word out about the brand. The remaining 80% of the budget will be used to market the “2.2” car model. In order for the firm to get the word out about the existence of the brand to the entire population of Canada the firm has to select channels that are used for mass marketing. The three channels the firm will select are television, radio, and the written press. Television marketing is one of the most expensive marketing channels a firm can utilize. To minimize cost the company will select to launch its ads in popular shows that are not part of primetime television. The firm will place three commercials per week for a period of three months. The firm will contact all Canadian TV stations to negotiate a deal for the marketing package. The bid the company will make for the commercials will be valued at $150,000. If for some reason the firm is not able to negotiate a contract based on those parameters the company will lower its expectations to two commercials per week instead of three. The second marketing channel that the company will use is the written press. Some of the potential newspapers the firm might perform business with include Georgia Straight, The Fountain Pen, High River Times, and Oxford Review (Onlinenewspapers, 2012). The marketing budget for the written press initiative is $20,000. For that budget the company expects to have a daily ad in the newspaper for a period of three months. The final channel that will be used for the initial public relation launch of the company is the radio. The company will place four radio ads per week for a period of three months. The marketing budget for the radio campaign is $30,000. The second phase of the integrated marketing campaign is to introduce the “2.2” car model to the general public of Canada. The firm has a marketing budget of $800,000 for this initiative. The company will use some of the marketing channels utilized in phase one as well as other marketing channels that are better suited for a marketing strategy to target a specific demographic group. The company will once again utilize television as one of its channel. The television campaign to introduce the “2.2” will be shorter than in phase one, but it will include commercials during primetime television. The television campaign will last six weeks and it will include five 30 second commercials per week. The estimated cost of the television campaign is $200,000. In order to reduce costs the firm will prepare the commercials in-house without the assistance of an outside marketing firm. The radio will also be selected as a marketing channel. The company will release seven radio commercials per week for a period of three months. The estimated cost of the radio initiative is $75,000. Once the company starts to build a reputation in the Canadian marketplace the chances of the “2.2” gaining acceptance will increase. The third marketing channel the firm will use is placing billboards in strategic places. The company will place 250 billboards across the Eastern Canadian region at an estimated cost of $800 per billboard. The total cost of this marketing initiative is $200,000. These billboards will be permanently place in the locations. The fourth medium that the company will utilize is online marketing. The internet has gained popularity worldwide. In North America approximately 78.6% of the population has internet (Internetworldstats, 2012). Online marketing has been gaining popularity during the last decade as more people have become daily internet users. The effectiveness of online marketing is dependent on where you market and what type of advertising offers you use (Arthur, 2012). One of the greatest virtues of online marketing is its low costs. There are small websites that charge less than $100 a month for online advertising space. The online marketing strategy the firm will use will include a wide variety of websites. The firm will place online marketing ads in 600 websites. Some of the websites that will be included are Amazon, Yahoo, Bing, Google, Facebook, Twitter, Espn, YouTube, and AOL. Some of these websites attract incredible amounts of traffic due to the fact that they have millions of users that visit their website regularly. The online advertising on these websites will stay online for a period of three months. After that period the firm will assess the effectiveness of each of the websites in order to choose a new list of websites to use for advertisement based on the results. The marketing budget for the online marketing campaigns is $225,000. Two marketing channels that the firm will use are cellular technology and direct interaction with the customers. Cellular phones have become the most popular electronic gadget in the world. New smartphones such as the Iphone 5 have the capability to connect to the internet instantly and they are also able to receive applications that increase the functionality of the phones. The cellular phone marketing strategy includes two initiatives. The first initiative is to design an application that showcases the “2.2”. The application will show a 3D model of the car and a display of the features. The second technique the company will use is cellular advertising. This type of advertising is very effective because it can target people that meet the customer profile of the company. The company is going to spend $50,000 in the cellular technology marketing initiatives. The last marketing channel the company will use is one on one contact with the customers. The company is going to place 20 “2.2” in different malls. An employee of the company will be present to answer questions to the customers about the “2.2.” In order to catch the attention and draw people near the “2.2” the company is going to give away each of the 20 cars showcased in the malls. The cars will be available for showcase for a period of three months. The marketing budget for the plan is $50,000 which is the equivalent of $833 of rent in each of the 20 malls that the “2.2” will be displayed. A huge box will be place near the car in which the participants of the car drawing game can place their tickets. Zamada Motors has a great opportunity to grow its revenues stream by penetrating the Canadian auto marketplace. Many Canadians are interested in saving money on fuel due to the drastic rise in oil prices and the expectancy that the barrel of crude oil is going to continue climbing for years to come. Zamada is going to utilize a variety of marketing channels to strengthen its brand and to gain the interest of the public in the “2.2” car model. During the initial phase of the plan the company will strengthen the brand value of the firm. During the second phase the emphasis of the marketing campaign will be on the “2.2” car model. From the start the “2.2” will be showcased in the commercials, but the emphasis of the ads will be the brand name Zamada. In the initial phase the marketing channels that are going to be used are television, radio, and written press. During the second phase the marketing channels to be used are radio, television, internet, billboards, and cellular technology. References Arthur, L. (2012). The Effectiveness of Online Marketing. Retrieved October 28, 2012 from http://www.ehow.com/info_7742873_effectiveness-online-marketing.html Culturegrams.com (2012). Canada. Retrieved October 28, 2012 from http://www.culturegrams.com Internetworldstats.com (2011). Internet Usage and Population in North America – March 31, 2011. Retrieved October 28, 2012 from http://www.internetworldstats.com/stats14.htm Onlinenewspaper.com (2012). Canada Newspapers. Retrieved October 28, 2012 from http://www.onlinenewspapers.com/canada.htm Plunkettresearchonline.com (2012). Automotive Industry Overview. Retrieved October 28, 2012 from http://www.plunkettresearchonline.com Read More