Autos-Luxus Group Strategic Marketing Plan - Case Study Example

The Strategic Marketing Plan Table of Contents 1. Executive Summary………………………………………………………………….3 2. Introduction…………………………………………………………………………..4 3. Body…………………………………………………………………………………...5 i. Discussion of the Mission Statement………………………………………….5 ii. SMART Objectives……………………………………………………………6 iii. Hierarchy of Strategies………………………………………………………...7 iv. Definition of the Industry in which the Business will compete……………….8 v. Macro and Micro level Analyses……………………………………………..11 vi. Relevance of the marketing research for the strategic decision-making……..13 vii. Significance of the overall segmentation… …………………………………14 4. Conclusion…………………………………………………………………………...14 Executive Summary This paper is divided into three main sections including introduction, body and conclusion. The introduction gives a brief background on a business idea, identifies what kind of industry it is in and mentions a sample product that the business can produce. In this same section, the paper develops a mission statement for the business and outlines what each section of the mission statement entails. In the body part of the essay, a discussion is carried out to determine the relevance of the mission statement, SMART objectives and hierarchy of strategies respectively. These factors are discussed in regard to market strategic plan processes. Further into the body of the document, various factors including but not limited to market mixes, relevance of segmentation, targeting, products, pricing and distribution strategies are discussed in addition to macro/ micro elements that affect a business operation. In the conclusion, the paper deduces from the analysis in the body and states that proper planning and marketing strategies are essential for the operation of a business. For a business to completely succeed, it needs to have clear and specific objectives that are attainable and measurable, associated with every stakeholder or shareholder in the business and enable equitable deployment of resources. Above all, marketing strategy is meant to gain a competitive advantage over competitors in order to enjoy fair dominance. The Strategic Marketing Plan Introduction Selection of Product, or Service or Business Idea Autos-Luxus Group is an automobile company that deals on automobiles that are classy and luxurious, mainly focused on the delight of customers, and particularly focused on technological innovation, positive customer experience, and organizational responsibility. The company has just launched its new innovation by name Sporty-Wegamp Auto-Luxus , an off road vehicle with updated technology, luxurious, non-guzzler, sporty, wonderful features meant for the middle class earners of the current generation. It is cheaper than the older vehicle designs, consumes less fuel, electrically powered and good for heavy duty jobs and sport races. Mission Statement The mission statement of Autos-Luxus Group: ONE AUTOS-LUXUS MISSION: ‘United Team, a Single Plan, One Objective’ UNITED TEAM Individuals working cooperatively as a lean, international business for automotive leadership in the automotive industry, as measured by; Customer, Union/Council, Investor, Employee, Dealer, Community satisfaction, Supplier A SINGLE PLAN Finance our plan and advance our balance sheet Work together effectively and efficiently as one team Step up development of new commodities our clients want and consider worthy (value) Uncompromisingly restructure to function profitably at the present demand and varying model mix ONE OBJECTIVE An exciting viable Autos-Lexus delivering profitable growth for all Body Discussion of the Mission Statement For the mission to be considered as well developed or relevant, it must be able to offer various potential benefits which are inclusive of giving direction, focus, policy, challenge, meaning, and passion (Adapa, 2013; Alavi & Karami, 2009). Both direction and focus statements indicate what the business does and what it wants its success to be and a concentration on the company’s strengths and competitive advantages in addition to describing how it wants to achieve them respectively (Adapa, 2013). On the other hand, policy acts as a guideline of what a company finds morally acceptable and unacceptable and states what the values of the organization are, while meaning indicates what an organization works tirelessly to achieve and why they would want to do so (Khalifa, 2011). Finally, challenge and passion involve formulating the objectives and measurements of achievement for organizational staff and making each person participating in any aspect in the organization show feelings of commitment, enthusiasm and pride (Alavi & Karami, 2009). In this regard, the mission of Autos-Luxus Group Company takes into consideration the market influences that may affect the development of the mission and goals at the level of the organization and the resulting marketing strategies and goals (Alavi & Karami, 2009). It identifies the stakeholders or shareholders who will hold some view on the company direction and rate of progress such as customers, suppliers, employees amongst others mentioned (Khalifa, 2011;(Alavi & Karami, 2009). Further, the mission statement identifies a business ethic because it commits to restructure its plans no matter the market situation and to profit all and finally identifies an organizational culture of working as a team (Adapa, 2013), therefore relevant. SMART objectives This is an acronym that can be used to evaluate how appropriate a goal or an objective is SMART (Jenks, Vaughan, & Butler, 2010). It is often used to design goals that are likely to achieve positive results it makes reference to goals that are Specific, Measurable, Attainable, Realistic, and Time Framed (SMART) (Adapa, 2013). Applying this acronym to the goal of Autos-Luxus Group Company that is, ‘an exciting viable Autos-Lexus delivering profitable growth for all,’ it is seen to be Specific because it clearly identifies an end point (Jenks et al., 2010). The phrase, ‘profitable growth for all’ indicates that in the long run it is supposed to profit all the shareholders (Cole et al., 2010). Similarly, the objective is measurable because the mission statement avails a way through which the level of attainment of the objective can be measured that include, but not limited to responses from customers, suppliers, customer satisfaction levels and many others mentioned (Adapa, 2013). The goal is similarly attainable and realistic because developing automobiles that are profitable to all in the world is achievable despite stiff competitions and number of automobiles purchased (Jenks et al., 2010). Finally there is a clear time frame for achieving the objective because it is a lifetime thing. This means that all products that are developed in the company must meet the set standards. As such, the mission is relevant as it helps identify the expectations that the employees are supposed to meet and similarly serve to increase employee satisfaction (Adapa, 2013; Cole et al., 2010). Hierarchy of Strategies of the Business The Hierarchy of strategies in regard to Autos-Luxus Group Company would fall in three categories that include Corporate, Business and Functional Strategies (Adapa, 2013). Corporate Strategies This company will mainly produce sports-design automobile off-road vehicles that are meant for middle class earners (Saaty & Vargas, 2012). The top management will mainly be responsible for overall supervision, optimal resource allocation to each and every department and finally have each department within the company operate independently under the supervision of departmental managers. Departments would include design department made of design engineers, procurement and supplies department in charge of purchasing and disposing any resources required for the production process, and assembly department that assembles the parts of the completely designed automobiles (Saaty & Vargas, 2012). Business Strategies In regard to running of businesses in the company, Autos-Luxus Group Company will work under a framework in which divisional managers make proposals on what they want and then the top management approves what has to be done (Saaty & Vargas, 2012). However, communication will take place in a top down direction depending on what the strategy states, more so when it comes to communicating policies and instilling discipline in employees. Whenever opportunities appear in the automobile industry, the company will invest provided it fits within its objectives. Functional Strategy In regard to this segment, the functional managers will give proposals to the divisional managers for approval (Saaty & Vargas, 2012). Because the business involves a lot of design and assembly work, the managers in charge of teams or groups meant to perform certain objectives in the company will make proposals to the divisional managers for approval (Adapa, 2013). Definition of the Industry in which the Business will compete Porter’s five forces analysis refers to a framework within which the development of a strategy or analysis of a business can be done. They thus become the five competitive forces that shape strategy (McMillan, 2010). These forces will help understand the business’ current competitive position, and the strength of a position that the business may plan to move into thus taking fair advantages of situations, improving on weaknesses, and a caution against taking wrong steps (McMillan, 2010). As such, it is an important tool meant for planning and includes the bargaining power of suppliers, bargaining power of buyers, threat of new entrants, competitive rivalry and threat of substitute products (Adapa, 2013). The Bargaining Power of the Supplier In this, it is imperative that the business analyses the ease with which the supplier can drive up his or her prices (McMillan, 2010). This depends on the number of suppliers that the business has for every material required, how unique their product is, their control and strength over the company, and the cost implication of changing or switching suppliers (Rice, 2010). The company has to make sure that it has a large supply base for the same product to weaken the bargaining power of the supplier because if the company is in a situation of desperately needing a supplier, then they can easily hike prices for their supply (Adapa, 2013). This requires a defender strategy because the company will have to offer better deals, quality products or even customer service to ensure stability. The Bargaining Power of Buyers In this again, the business has to give considerations as to how easy it is for any buyer to drive down prices depending on how many buyers the company has, the losses they risk facing if they shift to other companies for products and services and many others (Rice, 2010). The company should therefore deal with many, less powerful buyers so that they do not dictate terms. It can be solved via a reactor strategy where effective modes of solving the situation are sort after a direct effect of it is felt (McMillan, 2010). Competitive Rivalry Autos-Luxus Group Company should give attach some importance into knowing the capability and number of competitors they have (Rice, 2010; McMillan, 2010). The company should offer better deals, attractive products and services, and have fewer competitors as possible to avoid losing suppliers and customers to the numerous competitors. Thus the business should strive to be unique (offer what no one else offers) to have a tremendous strength in the market (Rice, 2010). This requires an analyzer strategy to implement because the company would need to study its market keenly before taking a move thus less risk ensuring stability (Adapa, 2013). Threat of Substitution Autos-Luxus Group Company should ensure that they produce products that are not easy to substitute (Adapa, 2013). For instance, if the company produces and electrically powered automobile, they should do it in such a way that customers cannot do it manually on their own or even outsourcing it to maintain strength in the market (McMillan, 2010). This is a defender strategy because the company would be insulating itself from possible changes. Threat of New Entry The company should have a strong and durable barrier against entry in order to preserve the situation that favours them and take fair advantage of the circumstance (McMillan, 2010; Adapa, 2010). It should cost a lot of time or money for one to enter this industry or product line and compete effectively. Therefore, Autos-Luxus should have several economies of scale and extreme protection over their technologies to maintain their control or power in the market. They can develop new products if competition is too stiff as a prospector strategy (Rice, 2013). Macro and Micro level Analyses in regard to Attractiveness of the Market or Industry to Address Strategic Challenges Because an automobile company such as this is affected by environmental factors, it is the responsibility of the company management to adapt the company to its environment or influence the environment in an appropriate way to favour its business (O'Cass, & Weerawardena, 2010). Macro environmental elements include demographic, economic, government, legal, political, cultural, technological and global factors (Adapa, 2013). An instrument such as PESTLE analysis can be used to address micro and macro level factors that affect a business. PESTLE stands for political, economical, social, technological, legal and environmental factors that affect a business. Political and Legal Factors These refer to the frameworks provided for by political and legal environments that include procedures to regulate software information, potential antitrust suit, new tax laws, laws on privacy, and protectionist legislation in some states or countries (O'Cass, & Weerawardena, 2010). The company should opt to operate in a stable political set up or system where rights for co-determination, control for patents, protection for the company’s investments and environment are available. Economical Factors These have a direct influence on supplier and consumer markets and are defined under international or national economical developments such as Gross Domestic Products (GDP), inflation rates, interests charged on loans, currency change rates, money market situations and employment (Yap, Rashid & Sapuan, 2012). They affect demand, intensity of competition, cost pressure and the will and spirit to invest. Autos-Luxus Group Company should invest in a country or market with a higher GDP because demand for their products would be high (Silva, Hutcheson & Wahl, 2010). Social Factors These refer to people’s ideals, opinions, traditions or culture and values of participants in the identified market such as employees, suppliers and customers (Gurkov & Obel, 2012). Autos-Luxus Group Company should follow keenly how values change in whatever market they venture into and adapt its strategies to the changes to ensure survival, otherwise there would be no employees or sales taking place (Phillips & Storey, 2010). For instance, the company would not do well where people prefer riding bicycles to work. Technological environmental factors Because this is an industrial company that adopts a fast change in technology, the microelectronics and robots that are incorporated in the automobile should be up to date to thrill customers (Phillip & Storey, 2010). Environmental factors These refer to the use of natural resources and human life. The company needs energy to run its production processes therefore it can only be located in an environment with raw materials or energy plants or availability (Adapa, 2013). The company should similarly dispose its electronic wastes effectively to avoid law suits emanating from alleged ecological pollutions. Relevance of the marketing research for the strategic decision-making of the business and the influence of product, pricing, distribution and promotion policies on marketing decisions Market research is important in this case because it will help Autos-Luxus Group Company to identify what product or service types would give more profits when introduced in any market, in this case automobiles (Slater, Olson & Finnegan, 2011). It would also help the company know whether consumers are satisfied with their products or not, and if any particular change should be made in the packaging material, delivery time and processes or the product itself therefore making a viable market plan or even do a rough measurement of its existing plan or strategy (Dunning, 2013; Gordon, 2012). As such, effective communication is ensured, possible challenges are identified, market niches are identified and understood, and benchmarks are done in order to evaluate progress or success. Product affects the decision making process in that for this business to succeed, then the product produced must be one that people like (Gurkov & Obel, 2012). Similarly, the pricing of a product is set via a decision at a level that customers will afford. Distribution on the other hand is closely associated with time as the product has to reach the people it is meant for at the right time; otherwise the company is rated inefficient (Adapa, 2013). Finally, promotion policies would determine to a great extent how much information customers or potential buyers know about the product on sale (Luca & Suggs, 2010). Proper marketing should be done in order to create awareness of new products, attract customers and advertise new developments (Slater, Olson & Finnegan, 2011). The significance of the overall segmentation, targeting, differentiation and positioning strategies for the business For a business to be successful there is need to identify an appropriate target market and this is done through market segmentation, positioning, targeting, and differentiation (Adapa, 2013). Market segmentation strategy groups customers into segments that have the same needs. Example is when Autos-Lexus Company groups customers who can buy a particular vehicle in terms of age or job such as middle class buyers (Zuccaro & Savard, 2010). Targeting comes after segmenting and involves choosing the company’s targets in order to develop specific strategies for the targeted group (Panagopoulos & Avlonitis, 2010). On the other hand, perception involves influencing the view of a customer concerning the company’s product or creating a brand image by improving the experience that they will have when they purchase from the company (Banker et al., 2011) knowing their desires and understanding various competing products is vital. Finally, differentiation of markets refers to distinguishing the segments targeted conceptually by being consistent in production, efficient in delivery of services, and hiring skilled personnel above one’s competitors thus gaining a competitive advantage as customers can easily tell the difference between the company’s products and services and those from other competitors based on the benefits and positive experiences that they have (Ferrell, 2012). Conclusion Effective and strategic planning processes can ensure that an organization’s resources are deployed in the most efficient and effective way to attain the company’s objectives. Taking into consideration the above mentioned steps can therefore ensure that each and every person in the organization remains focused, work as a team, and improve collaboration in order to attain objectives that are specific and measurable designed to fundamentally maximize the strengths of the organization, understand opportunities and prevail over business challenges. References Phillips, P., & Storey, J. (2010). E-business strategy. McGraw-Hill. Adapa, S. Dr. (2013). Marketing Strategy and Management. UNE Business School, Australia, NSWA, Armidale, 2351: University of New England. Khalifa, A. S. (2011). Three Fs for the mission statement: what's next?. Journal of Strategy and Management, 4(1), 25-43. Alavi, M. T., & Karami, A. (2009). 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