JM Family Enterprises Company Marketing Strategy - Report Example

Running head: jm family enterprises company marketing strategy 22nd March Introduction JM Family Enterprises Company is a middle sized firm located in US. With its head office in Deerfield Beach, Florida, the company branches are located in Montreal, Toronto, Atlanta, Cleveland, Mobile, Jacksonville and St.Louis. The company major activities include distributing Toyota Company brands across some areas in US. Other activities that are undertaken by JM include financial services, consulting, selling insurance products and dealing with technology products and services. Major people in the company include Colin Brown who is the CEO, Brent Burns the CFO and Ken Yerves who is the CIO. JM general market includes individuals who are in need of Toyota motor vehicle brands that are known for their high quality. JM specific target market is the US executives with average income as well as self employed individuals within are located around its areas of operations and in Florida. Marketing strategy Major marketing strategy that JM Family Enterprises adopts is diversification of its brand portfolio. Based on the diversified needs of its customers, the company realizes that by expanding its product range, it will be in a position to increase its sales as well as profits. Additionally, the firm has maintained an updated website www.jmfamily.com where it provides adequate information regarding its products as well as its contribution in developing and assisting the community neighboring it (Kenneth and Donald, 2007). Customer behaviors JM Family Enterprises customers have strong loyalty towards the company brands. Customers who are in need of motor vehicles normally make a single visit when they are purchasing their brands. This is followed by regular visit as they seek the services of the company. Other customers who seek the consultancy services make frequent visits since the company is known to offer quality services to entrepreneurs as well as investors. As the result of involving the consumers in the form of giving them a chance to provide feedback regarding the company services, JM Family has maintained a strong positive relationship with its customers. Product strategy As mentioned earlier, JM provides various products. The products are provided through the firm divisions. For example, Toyota brands are processed and distributed mostly at the headquarters by the Southeast Toyota distributors division of the company. Financial services are provided by World Omni Financial Corp while insurance and consulting services are provided by Jim Moran & Associates division. JM Family Enterprises products are of high quality. The company aims at becoming the premier provider of quality products. Through innovation, JM focus is finding improved ways to make its brands meet the needs of its customers. As the company customer base expands as the result of extensive promotion, the company has realized that customers are in need of services such as insurance including those who purchase the Toyota brands. In this regard, JM provides excellent services to its clients. As the result of quality products and services and the competitiveness of Toyota Brands in the global market, JM Family Enterprises products enjoy a strong competitive position in the US market. JM main competitors are Gulf States Toyota Distributor, AutoNation incorporation and Penske Automotive Company. This implies that the company does not face stiff competition in the distribution of Toyota brands across US. However, in other areas such as insurance and consulting the number of competitors is high. Distribution strategy As a distributor of Toyota brands, JM sells its vehicle directly to the customers. However, other services that the company provides are made available to the consumers through the use other firms. For example, the company distributes its insurance services by using companies such as Century Warranty Services, Fidelity Insurance Agencies and Fidelity Warranty Services among others. Based on the reduced channels of distribution that JM adopts especially in its motor vehicle distribution division, the costs of distribution are low. Most of the JM competitors do not use channels of distribution thus experiencing an increased cost of operations. Price strategy JM Family Enterprises Company maintains average pricing strategy. In its effort to enter new markets, the company emulates penetration pricing for its insurance services. In this way, customers who are loyal towards the competitor’s products are attracted by JM affordable prices while at the same time attracting new customers. In order to ensure that the company maintains a positive relationship with its customers, JM ensures that the price the customer pays for their products is equivalent to the value they enjoy. With the improved quality of Toyota brands, the company has embarked on competitive pricing that entails average prices for middle class vehicles but high prices for luxurious brands just like the ones adopted by competitors. Thus, the prices offered by JM Family Enterprises are regulated by Toyota Company. On their part, the competitors emulate skimming prices. This is based on their need to maintain high markup while at the same time maintain their market share. Promotion strategy JM Family Enterprises emulates various methods of promoting its products and services. One of the major medium that the company advertises its products is by use of its website. Through its website, the existing customers and potential customers are in a position to view all the videos that indicates all about the company. Similarly, the company websites informs the customers about the various health and wellness center, their locations, their telephone numbers as well as the hours they work. Through the use of the telephone numbers provided via the website, customers can not only enquire for a product but also they can provide a feedback to the company (Day and Robert, 1971). The company provides discounts to customers who purchase their Toyota brands thus creating a strong positive relationship with them. Through the use of local and international magazines such as Forbes and local newspapers, JM Family is in a position to notify potential customers about new brands and services in the market. Just like its competitors, JM aims at improving community and protecting environment, as a way of enhancing its publicity. For instance, the company has three major community partnerships that aim at improving the lives of residents of Florida. The first one is Jim Moran foundation that was established in 2000 with an aim of assisting innovative programs initiated by the families and Youth in Florida. Secondly is the Youth Automotive Training Center that assists the youth in life management skills, automotive repair and academic remediation. The third one is Africa-America Achievers whose objective is to reward outstanding individuals who use their talents to improve the lives of South Florida residents. Technology issues JM Family Enterprises emulates extensive innovation in its operations. As the demand for modern technology rises, the company embarks on use of experienced man power and technology in its departments. The company aim is to provide high-quality products. Thus, through the use of JM intranet, local and international consumers can send directly their contribution to the company production managers (Percy and Rossiter, 1992). Additionally, the company use Just In Time strategy ensures that any problem that may occur in the production facilities is handled without delay. One of the major positive impacts of technology on the JM products is that they have attained a competitive position in the market thus effectively putting at bay their competitors. High quality products, high revenue and culture of innovation made the firm to be ranked position 27 in 2013 by Forbes list of US largest private companies. Financials Based on the improved marketing and quality products, JM Family Enterprises has continued to enjoy high sales. In 2013, the company revenue stood at $12.5 billion. This was an improvement from the 2012 figure which stood at $11,500. The table below indicates the revenue of the company for the last six years as indicated by its income statement. Year Revenue ($ billion) 2013 12.5 2012 11.5 2011 8.9 2010 9.3 2009 8.4 2008 10.1 Source- (Financials Information for JM Family Enterprises, Inc, 2013) In 2014, the company estimate to attain $ 13.5 sales revenue. In this way, it will be in a better position to acquire more resources thus effectively facing its competitors. Recommendations In its effort to face established competitors in the market, JM Family Enterprises has diversified its product portfolio. One of the recommendations is that the company needs to establish more outlets in the US market. This is based on the fact that due to quality brands of vehicles that the company sells, it has an opportunity of increasing its sales if it opens more branches. As the usage of social media in marketing expands, JM should also expand the use of social sites such as face book and twitter to attract the attention of its potential customers who are tech savvy. In this way, the company will not only create large customer base in the US market, but it will also be known by many customers in the international market. Another recommendation is that the company should expand its organizational structure by ensuring that each of the department of has enough personnel to manage the expansion strategies of the company. JM Family Enterprises should focus on sponsoring sporting events especially in developing countries. For example, the company can effectively enter the African market where it has an opportunity of getting more customers by sponsoring motor vehicle rallies as well assisting the communities affected by hunger and illnesses in war stricken areas. In this way, the company will not only improve its image on the eyes of the public, but it will also enhance strong awareness of its products. References Day, S and Robert, P. (1971). Stability of Appliance Brand Awareness. Journal of Marketing Research, 8 pp 85-90. Financials Information for JM Family Enterprises, Inc. Available from http://www.hoovers.com/company-information/cs/revenue-financial.JM_Family_Enterprises_Inc.55b98b429255927a.html JM Family Enterprises, Inc. Company Information. Available from www.jmfamily.com Kenneth, E and Donald, B. (2007). Integrated Advertising Promotion and Marketing Communications. New York: Upper Saddle River. Percy, L and Rossiter, J. (1992). A model of brand awareness and brand attitude advertising strategies. Psychology & Marketing 9 (4): 263–274. Read More