The document provides a marketing plan for Smart Tune, a new diesel tuner product from Techno Tunes. It identifies the target market as owners of diesel pickup trucks from 2008-newer looking for increased power and fuel economy. The plan outlines the product features, pricing strategy of $380 which provides $85 profit per unit, and distribution through factory direct and retailer channels. A promotional strategy utilizing social media, paid advertising, and events is also described. In conclusion, the plan presents how Smart Tune addresses the target market needs within EPA regulations through its adjustable power levels, connectivity features, and clean tuning capabilities.
1. Smart Tune Marketing Plan
Phillip C. Fuller
BSAD 394- Marketing
March 28, 2014
Professor Leslie Chaffin
Southwestern College Professional Studies
2. SMART TUNE MARKETING PLAN 2
Table of Contents
Executive Summary........................................................................................................................ 3
The Product..................................................................................................................................... 4
Target Market.................................................................................................................................. 4
Future Market.................................................................................................................................. 5
Pricing Strategy............................................................................................................................... 5
Distribution and Place Strategy ...................................................................................................... 6
Promotional Strategy....................................................................................................................... 6
Conclusion ...................................................................................................................................... 7
References....................................................................................................................................... 8
Appendix A Tables and Figures ..................................................................................................... 9
Appendix B Abbreviations and Definitions.................................................................................. 12
3. SMART TUNE MARKETING PLAN 3
Executive Summary
Techno Tunes is a new and innovative company that has been in the background of the
diesel race industry for a combined two decades. We have listened to the wants and needs of the
customers; wanting flexibility, adjustable and the need safe clean tunes that will provide
longevity of the vehicle. The result of the wants and needs is the Smart Tune. Smart Tune
provides users with a smart tuning device; with Bluetooth and a heads-up display (HUD), and
capacitive touch screen that provides an optional three levels of horse power (HP) and torque
increases. Following through, the Smart Tune provides users with a smoke free increase; keeping
true to the regulations from the varying stages of the Clean Air Act. Currently Techno Tunes
have identified the target market to be users of Chevrolet, Dodge, Ford and GMC diesel trucks;
year models 2008 and newer who are looking little more increase in power, torque and increase
fuel economy. Within this report a complete marketing strategy will be conveyed relative to the
traditional 4P’s of marketing, product, price, place and promotion (Pride & Ferrell, 2014).
Techno Tunes has conducted a SWOT analysis, Figure 1 listed in Appendix A,
identifying the strengths, weakness, opportunities and threats the product will have.
Summarizing the SWOT analysis, the Smart Tune is new to market with product with clean
tunes and focus on the mandates put in place by the varying stages of the Clean Air Act
providing power without the smoking of the competitors. The weaknesses identified come
mainly from lack of knowledge about the Smart Tune. Yet, are also listed as having less HP and
torque gains as the competitors. Realizing the opportunities shown in the SWOT, the target
market shows solid growth with new products being released to the consumer. Techno Tunes
will take full advantage of the market growth by producing supporting products and promote
those products through social media, partnership advertising and attending tradeshows and
events. Threats of the Smart Tune include the gains of the competition in terms of HP and
torque, the competition is well-known and the target market is limited to newer models only with
lack of support for older models. A complete list of figures is and tables is available in Appendix
A; with a supplemental listing of abbreviations and definitions in Appendix B.
4. SMART TUNE MARKETING PLAN 4
The Product
Smart Tune is a state of the art diesel tuner with physical dimensions measuring 3 inches tall and
4 inches wide, mounting dashboard mount, that will operate on trucks equipped with the
Cummins, Duramax and Powerstroke turbo diesels. Smart Tune has three levels of programs
adding up 200 HP and 250 ft. lbs. of torque; making it amongst the most powerful,
environmentally mindful programmers on the market with a standard one year limited warranty.
Smart Tune allows for Diesel Particulate Filter (DPF) deletion or allows for it to remain and runs
clean tunes to keep the longevity of the DPF. There is no longer a need to power down the power
plant and wait for a new program to be loaded onto the vehicle, Smart Tune allows for shift-on-
the-fly programming changes; three levels of programming changes with the following
increases: 65 HP/80 ft. lbs. torque, 100 HP/180 ft. lbs. Torque and finally 200 HP/250 ft. lbs.
torque.
Smart Tune remains connected to the OBD II port via specialized micro USB cable with
Bluetooth capabilities for data transfer to an iOS or Android operating, and a Heads up Display
(HUD), that expands five inches tall 6 inches wide, for real-time parameter displays, adjustable
parameter viewing, data export via Bluetooth to any smart phone using the Techno Tunes app.
Smart Tune also showcases capabilities for data logging for trend analysis and will connect to
any computer through Universal Serial Bus (USB) as an alternate method of data transfer and
periodic updating. Smart Tune is available for all makes and also has the capabilities to read and
clear Diagnostic Trouble Codes (DTC) and adjust speed limiter, tire size and speedometer
corrections.
Target Market
The target market is inclusive to Dodge, Ford and General Motors (GM) diesel powered truck
owners with year models 2008 and newer who are looking for just a little more horsepower,
torque and fuel economy. Diesel pickup trucks are available from Chevrolet/GMC, Ford and
Dodge” (Edmunds, 2015); with a new smaller diesel being offered in the smaller Ram 1500. To
ascertain why the those year models were identified, there is abound electronic programming
schema that can be changed to provide the users with the desired levels of performance for their
prime movers; while still operating in safe parameters of the vehicle. “Diesel tuners allow an
5. SMART TUNE MARKETING PLAN 5
unlock performance potential by adjusting engine settings such as injection timing, fuel and/or
rail pressure, and injector pulse width” (Diesel Hub, n.d.). Video (Motor Week, 2014)
With respect to the target market selection, just in the two years between 2010 and 2012 there
were increases in several different breeds of diesel powered cars, sedans, trucks and vans.
However, remaining consistent with our specified target market, the growth of our target market
was measured in new registrations and yielded “the market of new registrations totaled 5.6
million in 2012 an increase of 151,436 since 2010” (R.L. Polk and Associates, 2013); indicating
that growth with a plotted vector of approximately 40 degrees and worthy magnitude as noted in
Figure 1 listed in Appendix A.
Future Market
Looking towards future expansion within the same market, providing that sales and profit grow
beyond the still to be determined milestone, further tactics will be employed to expand the brand.
It has been announced that Nissan and Cummins have entered into a partnership with Cummins
providing a V-8 diesel power plant for Nissan’s 2016 Titan XD (Nissan USA, n.d.). The
expansions of Nissan and Ram providing diesel power plants beyond the typical heavy movers
opens the potential for new product development. Furthermore, should initial production line
items meet expectations, further line extensions from the Techno Tunes will be implemented.
The extensions will be inclusive to programming for the smaller market of Ram 1500, Nissan
Titan; also including efforts to develop air intakes to maximize air intake and combustion,
extracting the highest amount of power and torque at the greatest efficiency.
Further marketing potential includes Business to Business (B2B) customers. Taking note of the
fact that many smaller companies have fleet vehicles that operate on the light duty diesel
powered trucks, an extensive effort will be place into the marketing and promoting of the Smart
Tune to the fleet owners. Focusing on the gains that could be had; not just in power, then again
the finical gains that will be achieved through the decline in the amount of fuel consumed.
Pricing Strategy
A detailed analysis was performed resulting with the sale price to be listed as $380.00; including
related shipping, handling, vinyl decal and required cable with On Board Diagnostics (OBD) II
port adapter. Factors that were taken in to consideration were material, direct costs, indirect
costs, variable costs amongst other required pricing line items. The complete line item
6. SMART TUNE MARKETING PLAN 6
breakdown can be viewed in Table 1, listed in Appendix A, with a charted representation in
Figure 2 also listed in Appendix A.
Other pricing factors included the competition in the market with the main competitor being
identified as Banks Power; with employees totaling greater than 200 (Banks Engineering, 2010).
Through market and product comparison, it was noted the Banks Six Gun Tuner would provide
the horsepower and torque increases comparable to Smart Tune. However, in order to achieve
the capabilities of a visual graphics display similar to the one provided with the Smart Tune an
additional item was required, Banks IQ Dashboard, to interface with Banks Six Gun tuner. In
total the Banks tuner and interfacing IQ Dashboard was priced greater than $1000 at varying
online retailers. It is noted that both products could be purchased separately. On the other hand,
the IQ Dashboard will provide zero power gains.
Distribution and Place Strategy
Smart Tune is a shopping product available only at select retailers proving that selective
distribution will be used; limiting the amount of retailers that will sell the product. Consumers
have the option for factory direct ordering through Techno Tunes website. Techno Tunes will
maintain 200 units on-hand to supply requisitions from retailers and consumers. Techno Tunes
will employ multiple marketing channels. The channels used will be inclusive to factory direct
and a two stage channel. The factory direct channel provides the consumer the option to purchase
and ship the product directly form Techno Tunes. The second, two stage channel, will be used to
allow consumers to purchase the product from designated retailer; of whom is supplied directly
from Techno Tunes. An overview of the product distribution, Figure 3, is listed in Appendix A.
Promotional Strategy
The strategies used for promoting The Smart Tune will be extensive. Starting with a minimal
cost and the greatest reach, social media will be used to spread mass awareness of the product by
communicating directly with users and potential users through mass communications and tags
used in status changes to the account @TechnoTuners. Further marketing promotions will
include paid advertisements to periodicals the target market are apt to read inclusive to Diesel
Power Magazine and 8-Lug. A partnership with be developed with authorized retailers s to
advertise a Smart Tune banner on the retailers’ websites to further expand Techno Tune’s reach
to other potential users. Finalizing the promotion strategy, Techno Tunes will be using events to
7. SMART TUNE MARKETING PLAN 7
promote the product. Multiple events and tradeshows are held throughout the year in various
geographic areas to showcase current products and concepts. Techno Tunes will attend events,
set up booths, deliver brochures listed in Appendix A and if permitted, product demonstration
will occur.
Conclusion
Techno Tunes has provided a marketing strategy to for producing and selling the Smart Tune
diesel tuner. Smart Tune’s capabilities of three staged power and torque level increases
accompanied with clean tunes and the technological advances of HUD, touch screen and
adaptability to fit the parameters of all the needs of the target market. Reiterating, the target
market is defined as Chevrolet, Dodge, Ford and GMC diesel truck owners with year models
2008 and newer who are looking for just a little more horsepower and fuel economy and torque.
Furthermore, a look into the future was provided to give a snapshot where the market is trending
with a potential to extend product lines and business customers. The pricing tactic proved that
the Smart Tune can yield gross profit at $85.15 per unit if sold the price of $380. The pricing was
broken down by line item with consideration given to direct material, labor, shipping taxes and
other variable and fixed expenses; which can be reviewed in Appendix A. Echoing the
distribution and promotion tactics, multiple channels will be implanted for the selective
distribution, the consumer can purchase the product directly from the manufacture or an
authorized retailer supplied directly by the manufacturer. Finally, the promotion strategy was
identified to include special events, social media (Twitter), paid advertising to periodical read by
the target market; and a partnership with the authorized retailers to advertise the Smart Tune
banner on their websites; reaching an even further market population.
8. SMART TUNE MARKETING PLAN 8
References
Banks Engineering. (2010). A Heritage. Retrieved from Banks Power Capabilites:
http://assets.bankspower.com/contact_form_images/new/capabilites/index.html
Diesel Hub. (n.d.). DIESEL TUNING. Retrieved from Diesel Hub:
http://www.dieselhub.com/performance/tuners.html
Edmunds. (2015). What You Should Know Before Buying a Diesel. Retrieved from Edmunds.
Motor Week. (2014, March 14). Quick Spin: 2015 Chevy Silverado and GMC Sierra 2500/3500
Heavy Duty. Retrieved from https://www.youtube.com/watch?v=9WXvFOtGltw
Nissan USA. (n.d.). THE ALL-NEW 2016 NISSAN TITAN. Retrieved from Nissan USA:
http://www.nissanusa.com/trucks/2016-titan/
Pride, W. M., & Ferrell, O. C. (2014). Marketing (ed. 2014). Mason, OH: Cengage-Southwestern
Learning.
R.L. Polk and Associates. (2013, April). Diesel Technology Forum Top 10 Diesel Car, Truck
and Van Sales Lists. Retrieved from Diesel Technology Forum:
http://www.dieselforum.org/files/dmfile/2012LightDutyTopTenLists.pdf
9. SMART TUNE MARKETING PLAN 9
Appendix A Tables and Figures
STRENGTHS
Availability for all makes
Supports EPA mandates
Provides gain less smoke
WEAKNESS
Lesser known product
Fewer gains than competition
Single product
THREATS
Competition’s gains
Marketing of competition
Manufacturing capacity
Older model vehicles not supported
OPPOURTUNITY
EPA focus on competition
Growing market
Marketing/promotion
Figure 1- Smart Tune SWOT Analysis
Figure 2-New Registrations
10. SMART TUNE MARKETING PLAN 10
Table 1- Costs per Unit
Figure 3-Cost Break Down
Figure 4-Distribution Channels
Item Amount Final Sales Amount
Cable $2.00 Sub Total $220.00
Dash Mount $7.00 variable cost $135.00
Decal $1.00 Total $355.00
Mfg & Period Costs $140.00 Sales Tax 7% $24.85
Owner's Manual $2.00 Grand Total $379.85
OBD II Adapter $10.00 Sale Price $380.00
R&D $55.00 Profit $85.15
Shipping Cost $3.00
Cost per unit
Techno
Tunes
Consumer Retailer
Consumer
Retailer
Consumer
12. SMART TUNE MARKETING PLAN 12
Appendix B Abbreviations and Definitions
Abbreviation Definition
B2B Business to Business
DPF Diesel Particulate Filter
DTC Diagnostic Trouble Codes
GM General Motors
HP Horsepower
HUD Heads up Display
USB Universal Serial Bus