The marketing plan provides a long term strategy for TKGSCC Corp to provide uniqueness, customer care, and quality GPS systems at affordable prices. They aim to produce 100,000 GPS systems in 2010 bringing in $150,000, increasing production by 75% in 2011. They also plan to produce 200 GPS chips in 2010 generating $12,000, increasing chip production by 50% in 2011. TKGSCC will initially employ 55 employees across various roles. They have manufacturing facilities in the US and Japan to produce components and assemble GPS systems, with the capability to produce 200 upgrade chips annually.
2. MISSION STATEMENT
The purpose of our marketing plan is to provide a long term
strategy that benefits the greatest number of consumers in our
market. TKGSCC Corp aims to provide uniqueness, customer
care, & quality to all automobile drivers with a GPS that is
inexpensive & provides real time weather, traffic, and routing
updates to keep them safe in their travels. TKGSCC Corp will
act as a full-service wholesalers using the specialty
merchandise wholesalers methods.
3.
4.
5. FINANCES
Currently, since we are a newly established
company we only will produce one hundred
thousand GPS systems which will bring in roughly
$150,000 for 2010.
We will increase our production rate by 75% to
accommodate the projected sales of about
$270,000 for 2011. We also manufacture GPS
chips through our engineering specialist team
located in our Japan office.
When we produce the two hundred chips we plan to
generate around $12,000 for 2010. Our company
plans to increase our production rate by 50% to
satisfy our projected sales of about $18,000 for
2011
6. HUMAN RESOURCES
TKGSSC will employ a minimum of 55 employees in the
start up of the company. This will include 4 engineers, 2
payroll accountants, 2 attorneys, 4 managers, 2 Graphic
designers, 10 manufacturers and packing, 4 marketing,
4 customer service reps, 2 Human resource reps, 2
finance reps, 8 shipping and distribution, 3 packaging, 3
receiving, and 5 executives.
The managers will be business degree professionals
that are already experienced. The staff will be trained
before any production is started.
Additional staffing is only needed in the growth stage of
our company. After training, employees will be able and
ready to prepare and develop the GSP and micro chip
upgraded for standard GSP systems. If other additional
staff is need we will post job opening in the new paper
and on monster.com.
7. MANUFACTURING
TKGSCC Corporation has all the necessary facilities and equipment to meet
current customer demands effectively. We have acquired an office building in the
United States and in Japan to handle the manufacturing.
We have partnered with Alpine Electronics and AT&T to produce the necessary
components that we need to assemble our GPS systems. Alpine Electronics is
located in Japan and we have a building set up there so that the manufacturing
can get done and then they mail us the products and we put the finishing touches
on them in our office in the United States.
We have the capability to produce two hundred chips for customers to buy that
already have GPS systems and would like to update them to have the same
capability as our systems. Both of our facilities are sufficient and stable enough to
meet the current and new demands. TKGSCC Corporation is a newly established
company; therefore we do not have any aging equipment.
Majority of our assembly is done in our Japan office by hand at low cost, but we
do have some new machinery that is needed to help assemble and produce the
products. The new equipment will increase production and assembly rates, which
will enable TKGSCC Corporation to handle our production increase rates for 2012.
TKGSCC Corporation will continue grow in the manufacturing aspect in the years
to follow our projected rates for 2012.
8. RESEARCH & DEVELOPMENT
TKGSCC’s Unite is a freshly established a Global
Positioning System that continuously provides updated
information.
This constantly searches out new traffic reports, routes,
and weather conditions in order to improve the efficiency
of our customers travels.
Our marketing strategy involves promotions such as
discounts, extra equipment, extended warranties, free 6-
12 month weather and traffic updates, and gift cards.
TKGSCC sells to different branches of stores on the
market today. As an example; the main stream market.
Advance auto parts, Auto Zone, Pep boys, Wal-Mart and
Radio Shack.
9. PRODUCT EVALUATION
This plan covers multiple products(one product, one
service). We are in the introduction stage of our
company. There will be no special packaging to
consider. Although this may be true, may cause a
price war due to our low prices and this may cause
a decrease in competitors sales. There will be no
substitution products to consider.
10. PRICE
TKGSCC Corporation prices their products at reasonable prices. The price for the
GPS will be $120. We have a chip that will be sold for $60 which will encourage
other consumers who have another company’s GPS to buy the chip and they can
benefit from our special features without going out and buying a brand new GPS. In
competition with other leading brands like Garmin, TomTom and Magellan who have
GPS’s roughly from $75-$800 TKGSCC is the better value for the money, and we
promise to always provide customers with easy-to-use, inexpensive products.
When pricing the GPS system we will be using penetration pricing because setting
the price to high may discourage many people, and there are some who are willing
to pay an expensive amount but for the sake of the economy, pricing it reasonably
will be best and it will generate revenue quickly, also it hold a good percentage in
the market share and possibly expand to sell and manufacture in other countries.
Consumers prefer constant prices. If the corporation feels that there is a decrease
in consumer demand, and if they do have to raise prices they should have a
promotion, for example "If you buy GPS today, you will receive a $10 gift card to go
towards accessories, or to any TKGSCC products." The gift card is treated like cash
so either way TKGSCC will rejuvenate the income, even though it seems like they
lost money by offering a gift card.
11. PLACE & DISTRIBUTION
TKGSCC products can be found in over 25,000
distribution stores throughout the United States and over
50,000 globally.
TKGSCC products can be ordered and delivered from
the Electronic channels such as Amazon.com or EBay.
TKGSCC has a computerized order entry system that
disseminates current demand.
TKGSCC Corporations have an adequate network of
intermediaries with companies that have many outlets
worldwide to properly communicate with buyers through
in-store displays, demonstrations, and personal selling.
Throughout these outlets, there are staffs that are highly
trained to inform buyers how TKGSCC products can
meet the costumer’s needs
12. PROMOTION
Consumers are currently aware of TKGSCC’S product.
The existing attitude about our GPS System are positive
ratings in its quality.
The real time weather, traffic, and routing updates along
with a number of features and promotions motivates
consumers to purchase our Unite GPS.
Considering that we are currently in the process of
recovering from a recession our low prices are attractive
to the consumer as well.
TKGSCC plans to convert over 50% of customer traffic
to sales within our first 2 years of business.
There is no buying cycles or season in our business.
We receive low repeat business and also offer 18
months warranties. Because of our high quality product
we do not get much repeat.
13.
14. SOCIAL AND CULTURAL ENVIRONMENT
Today our consumers are more technology savvy.
Along with being technologically advanced, our
society does everything in a timely matter.
Since our system provides updates with quick relay
time on information this leaves the consumer with a
safe and less time consuming travel.
15. ECONOMIC ENVIRONMENT
Currently the economy is in the process of recovering
from a recession. Based on the gross, disposable, and
discretionary components of the consumer’s income
they should be able to afford our product.
GPS sales have risen dramatically over the last year.
Within the industry that we are competing in the
economic environment has not affected our competitors
TKGSCC Corporation should not be affected either. The
economy has been going through inflation,
unemployment, and interest rate problems; that will not
affect us.
The economy is no longer undergoing a full recession,
so our product and company will make a stand in the
market.
16. TECHNOLOGICAL ENVIRONMENT
The current technologies are touch screen monitors and voice active.
The future technology could possibly be flat head monitoring and picture
images to help know surrounding.
Our customers can find our products online or in major retail
stores such as, Best-Buy, Wal-Mart and Target. Faster ways to distribute the
product will be sending out an ad to the people's households in local
surrounding areas that will attract customers and will bring in more
business.
The trend in the industry is more easier eco-friendly items,
with our navigation customers will never feel left out, our system has up to
date technology and it has an automatic upgrade option that will appear on
the screen when updates become available.
Consumers can purchase the product faster in the store with no shipping fees. If
the customer decides to buy online, there will be a low fee of $3.99 but shipping
will be free with a purchase of $200 or more.
TKGSCC can reach our target market through advertisements such as
newspaper ads, commercials, billboards, emails, and in store ads.
17. COMPETITIVE ENVIRONMENT
Our major competitors are Tom Tom, Magellan, and Garmin.
Differentiate price strategies, Unite upgrade microchip, frequent updates
TomTom ratings are 3.5, Magellan‘s ratings are 4, Garmin’s ratings are 3.
Our competitors do not carry as many features as Unite and our product
is affordable.
TKGSCC position in the market is where it needs to be.
Competitive Environment- Substitute
A. How easily can consumers substitute something else for your
product
or ser vice? No substitutions can be made, unless you have a cell phone
that
offers a mobile GPS service.
B. What percentage of the market do substitute products share? Less
than
50%
18. REGULATORY ENVIRONMENT
As an Equal Opportunity Employer, TKGSCC will
abide by their regulations, TKGSCC offers diversity
training to our staff to ensure a well rounded crew.
We also provide our employees with copies of Title
VII of the Civil Rights Act & the Equal Pay Act so
they are aware of their rights. We also follow FMLA
because we have more than 50 employees.
Therefore we try to follow EEOC regulations as
well.
19. OPERATING ENVIRONMENT
Our current customers are between the ages of 16-60.
50% of them have a high school diploma or are more
educated. Also, they have an income of at least $25,000
or more. This portion of the population has grown
increasingly in the technology world.
External issues that might influence the buying behavior
of these customers is competition with other businesses
and prices. If customers feel that our GPS is cheaper
and more reliable then we will be the top seller.
But if a competitor creates a GPS cheaper and better
than our sales will most likely decrease. Our future plans
still include having up to date technology and we are
already ahead of other because our chip is universal
and can be used for any GPS
20. SUPPLIERS
TKGSCC Corporation is located in the U.S. and in
Japan where our primary supplier is located. We
are dependent upon Alpine Electronics for
supplying our chips and helping with the design of
the GPS. There is not any price fluctuation existing
in the market through which we purchase raw
material or suppliers.
For 2010 we will develop an inventory of our GPS
and chips. For the years to follow we will have
inventory readily available. We will also base
inventory holdings of GPS and chips on a projection
of average monthly sales. Our major supplier is
extremely stable and price consistent; therefore, we
do not need to consider alternative sources.
21. PRIMARY MARKET SEGMENT
Our primary market is automobile drivers that do
not have a GPS. 45 % of sales are in our market.
By the year 2011 we plan on having over 65% of
sales in our market.
There will be multiple consumers purchasing the
Unite GPS and people that had GPS before will
convert their GPS with our chip.
--------$ volume of sales. Frequency of purchase is
not usual.
23. Stage of Family Life Cycle:
Young Married, No Children 8%
Young Married, Youngest Child Under Six 25%
Young Married, Youngest Child 6 or Older 22%
Older Married, No Children 15%
Older Married, With Children 26%
Older Married, No Children Under 18 19%
Education:
Some High School 5%
High School Graduate 15%
Some College 35%
College Graduate 45%
Race:
White 21%
Black 39%
Hispanic 13%
Asian 14%
Other Race 13%
Occupation:
Employed 70%
White Collar 41%
Professional Managerial 35%
Blue Collar 20%
Other 15%
Unemployed 10%
26. ANALYSIS OF USER BENEFITS
Product features: 3-D motion sensitive, color touch-screen
monitor, real time traffic (courtesy of traffic.com), weather( the
weather channel), and new route updates for avoiding
accidents and congestion, visual and voice guidance, global
maps (longitude and latitude settings for military use), storage
for over 30 destinations, 8 gigabytes for music, adjust for night
vision, road side assistance button, rest-stop and points of
interest locator (malls, gas stations, tourist sites, etc.),
rechargeable battery and solar power battery, clearly spoken
directions & car alarm capabilities.
Needs: For customers without GPSs’ the need is to purchase
a GPS that provides directions accurately and safely in a
timely matter.
Rate of Use: GPS’s sales have double over the last 4 years
when everyone else’s sales dropped according to google.com.
User States: All 50 states
27. Readiness to Buy: The customers’ readiness to buy is high
due to the feature our product has.
Brand Familiarity: Unite is fairly new to the market and our
brand is not known as much.
Type of Buying Activity: Canalys estimates that just under
4.5 million devices were shipped in Q2 2009, beating the
previous quarterly record of 3.3 million. In 2010 TKGSCC will
be shipping out 55% of 2009’s numbers. By 2014 IT FACTS
predicts that the market for GPS in Europe will increase by
270 million and Unite GPS will be among 900,000 being
shipped to Europe for sell.
Kind of Store: Unite will be sold in stores such as Best Buy,
Radio Shack, Wal-Mart, Target, Auto Zone, Advanced Auto,
Pep Boys & electronic channels such as EBay and
Amazon.com
28. SECONDARY MARKET
TKGSCC Corporation’s secondary market is the
consumers wanting to buy just the chip for
upgrading purposes. The chip consumers account
for 46% of the total GPS sales generating on
average $12,000 for this year.
TKGSCC Corporation currently holds 100% of this
market because no other company produces this
GPS chip. Within the 100% there will be 200 GPS
chips sold this year bringing in $12,000 in sales
revenue. Consumers purchase GPS’s frequently
meaning they will need to purchase a GPS chip for
upgrading.
32. ANALYSIS OF USER BENEFITS
Product features: 3-D motion sensitive, color touch-screen
monitor, real time traffic (courtesy of traffic.com), weather( the
weather channel), and new route updates for avoiding
accidents and congestion, visual and voice guidance, global
maps (longitude and latitude settings for military use), storage
for over 30 destinations, 8 gigabytes for music, adjust for night
vision, road side assistance button, rest-stop and points of
interest locator (malls, gas stations, tourist sites, etc.),
rechargeable battery and solar power battery, clearly spoken
directions & car alarm capabilities.
Needs: For customers without Unite GPSs’ that want the
addition features that is not offered by their standard GPS.
Rate of Use: Upgrading GPS chips are new to the market
and have a low rate of use.
User States: 15 states ( NY, VA, GA, FL, CA, PA, TX, NJ,
NC, MO, MD, LA, OH, MN, AZ)
33. Readiness to Buy: The customers’ readiness to buy is high
due to the feature our product has.
Brand Familiarity: Unite is fairly new to the market and our
brand is not known as much.
Type of Buying Activity: Canalys estimates that just under
4.5 million devices were shipped in Q2 2009, beating the
previous quarterly record of 3.3 million. In 2010 TKGSCC
will be shipping out 55% of 2009’s numbers. By 2014 IT
FACTS predicts that the market for GPS in Europe will
increase by 270 million and Unite GPS will be among
900,000 being shipped to Europe for sell.
Kind of Store: Unite will be sold in stores such as Best
Buy, Radio Shack, Wal-Mart, Target, Auto Zone, Advanced
Auto, Pep Boys & electronic channels such as EBay and
Amazon.com
34. PRODUCT OBJECTIVES & STRATEGIES
Objective: Increase sales revenues to $30 million by capturing an additional 20% of drivers who
do not own our GPS system (4.5 million) and 30% of the total market (3.2 million) from drivers
who own a GPS but want to upgrade will purchase the microchip….all under a cheap low price!
Target Markets: Primary, Secondary
Date of Completion: December, 2010
Strategy #1: Sell our GPS System/Microchip in top of the line stores/but limited places….such as
Best Buy, Wal-Mart, K-mart, Radio Shack, Target, and etc. Which are in the United States,
broaden our GPS market globally by using the internet.
Start Date: April, 2010
End Date: September, 2010
Projected Cost of this Strategy: $3,000
Responsibility: Distribution Dept/ Steivenson Delinois and Manufacturing Dept/Kiona Walton
Strategy #2: Create a pricing strategy based on quantity discounts. GPS systems/Microchips will
be sold at prices that are lower than Tom Tom. (Coupons, gift cards, buyone-getone deals, and
etc.)
Start Date: May, 2010
End Date: September, 2010
Projected Cost of this Strategy: $3,000
Responsibility: Finance/ Crystal Gregory and Pricing Dept/ Courtney Taylor
Strategy #3: Advertise our Product…Billboards, Coupons in the mail, and etc.)
35. PRICE OBJECTIVES & STRATEGIES
Objective #1: To increase sales within our GPS industry by 75%.
Target Market: Primary
Completion Date: January, 2012
Strategy #1: Create a penetration pricing strategy based on quantity discounts. TKGSCC
Corporation Global Positioning Systems will be sold at prices that are lower than Garmin and
Tom Tom.
Start Date: July, 2010
End Date: September, 2010
Projected Cost of this Strategy: $1,500.00
Responsibility: Finance and Marketing departments
Objective #2: To increase sales within our GPS chip industry by 50%.
Target Market: Secondary
Completion Date: January, 2012
Strategy #2: Create a penetration pricing strategy based on quantity discounts. TKGSCC
Corporation GPS chips will be sold at prices low enough to get consumers to purchase it.
Start Date: July, 2010
End Date: September, 2010
Projected Cost of this Strategy: $500.00
Responsibility: Finance and Marketing departments
37. PROMOTIONAL OBJECTIVES AND STRATEGIES
Objective: Increase product awareness among the target
audience by 30% and inform target audience about features
and benefits of our product and its competitive advantage,
leading to a 10% increase in sales in one year.
Target Customer Group: Primary, Secondary
Date of Completion: In one year period
Strategy #1: a 20-second radio advertisement spot to air in
afternoon/evening hours. Spots will focus on easy access and
affordability. It will cover the many different features that
makes the whole thing easy.
Projected Cost: $500.00
Responsibility: Marketing Department
Strategy #2: a technology magazine advertisement.
Projected Cost: $350.00
Responsibility: Marketing Department