Table of Contents Executive Summary 5
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- 2 Marketing Plan 2.1 Market and Industry overview
- Table 1: Sales by Distributor
- Table 2: Price Vertical
- Table 3: Retail Pricing
- Table 4: Marketing Promotion Budget
- 2.4. Competitor analysis
- 2.4.1 Competitive strategy
1.5 Project BenefitsWith the creation of Auto IQ the company expects to create eight jobs. The primary benefit of Auto IQ is the recovery of stolen vehicles. With a negative impact of $1.8 billion per year Auto IQ can save Canadians significant money leading to greater social benefits for Canadians and an indirect benefit in the future of less police resources searching for stolen vehicles. With one car stolen every 3.6 minutes Auto IQ can save Canadians money and stress. With the CarBack ’s new technology one of our goals is to sell the product to an auto manufacturer so they can further develop the concept and install it in their vehicles. 2 Marketing Plan2.1 Market and Industry overview“Our mission is to empower automobile owners by providing a reliable and affordable auto theft recovery device” According to Statistics Canada, on average, 400 vehicles are stolen every day: some of them from dealerships. According to the Insurance Bureau of Canada (IBC), car theft costs Canadians about $1.2 billion a year in out-of pocket-costs including deductibles, added health care, court and legal costs. There are products available in the market that can alert the owner when someone attempts to steal their automobile. One device which immobilizes the car when stolen has a very high price point. Other equipments of comparable use are remote starters equipped with theft alarm. All these products more or less serve the same purpose in different ways with varying efficiencies. We found that there is an opportunity to utilize today’s broadly available mobile coverage and the GPS navigation system to develop a unique and affordable auto theft recovery device. Stolen cars are usually taken to a disassembly location and then quickly shipped offshore. Because of this, the time factor in responding to the situation is highly sensitive. By immobilizing the automobile remotely and tracing it as soon as possible, CarBack effectively recovers stolen vehicles. 2.2 Market AnalysisThe major market for CarBack are those customers who buy auto lock devises, car immobilizers and anti-theft remote devises for their automobiles. But we think that CarBack is not in direct competition with any of the existing products in the market. This is largely because of the unique technology used in CarBack and its competitive pricing. In fact, we are creating a new market for this kind of ‘auto intelligence devises’ at an affordable price. 2.3 Marketing PlanThe entire marketing strategy and implementation is crucial to this business. The market response for the product is based upon the prevailing facts and market assumptions. All the market scenarios are described in detail in the marketing plan and strategy map is clearly laid out. 2.3.1. ProductThis is an electronic devise which can be remotely activated to immobilize the automobile in the event of a theft. The product is installed in the automobile, normally under the hood and connected to the engine. When a customer buys the product, it has to be activated with a SIM card before installed in to the automobile and this provides the identity for the devise. Now, it has a mobile number and a password which is unique to this device. It also has a GPS capability to send the location details back to owner’s mobile phone. CarBack offers the customers a reliable and affordable alternative to any of the products available in the market. 2.3.2 PlaceCarBack will be sold through retail channels like Canadian Tire, Future shop, Best Buy as well as through car dealers and after market installers; the best fit is with retailers who have existing auto installation facilities. The primary target market is Canada and market segment is car owners across all age groups. The retail channels were selected owing to their strong presence in the auto parts and accessories retailing. Added to this is their auto maintenance, service and installation capability. We found that several aftermarket installers play a key role in the customization and maintenance of automobiles in many small cities. We decided to target this particular segment to penetrate the interior markets. Detailed distributor-wise sales projection is shown below: Table 1: Sales by Distributor
2.3.3 PriceSimilar products available in the market are priced between $350 and $799. Our market analysis shows that target market is price sensitive and price differentiation coupled with advance product features could act as the key driving factor. CarBack is priced at $153 to the retailer and at a competitive rate of $400 to the end user. Except for the inflationary adjustment, price will be kept at this level for the next 4 years. The price vertical by AutoIQ is shown in the table: Table 2: Price Vertical
The contract agreement with the overseas manufacturer gives us enough advantage to control the cost of production. Though we may have to incur a higher cost of production in the first year ($60), an increase in volume will help overcome this towards the second year to the end of the product’s life. Table 3: Retail Pricing
2.3.4 PromotionMore focus is given for the promotional aspect in the first couple of years to gain maximum market visibility for the new product. Promotional efforts are broken down into Print media advertising-mainly the auto industry magazines, Point-of- sale displays, website development for online promotion and trade discounts. Point-of-sale displays are effective in attracting the customers and are an easy way of making them understand the product features. We plan to make them available in all retail outlets and there will be product brochures and instruction manuals along with them. Showcasing the product in trade shows will be done at a minimum possible cost and also the trade discounts depending upon the sales. The detailed marketing promotion budget is shown: Table 4: Marketing Promotion Budget
2.4. Competitor analysisProducts of comparable nature are available in the market. But, as mentioned earlier, no existing product shares the same feature as CarBack’s tracking ability and reliable communication. However, we do expect other established companies to come up with similar products once we hit the market. We estimate a minimum time line of 2 years for other companies to develop a similar product and make a successful prototype before introducing their product to the market. 2.4.1 Competitive strategyAutomobiles are considered important assets by individuals and often there is an emotional attachment. Having one’s vehicle stolen would be the last thing anyone wants and the solutions available to prevent this are not fool proof. Most of the devices currently available in the market deals with how to prevent or deter theft. But, once the thief manages to take the car away by tampering the security, there is no way one can track the vehicle. CarBack is filling this gap in the market by empowering the automobile owners with the ability to track their vehicle no matter how far they are. Directory: faculty -> Marv%20Painter -> businessplans -> plans2010 faculty -> Course overview faculty -> Curriculum vitae wei chen professor faculty -> Digital image warping faculty -> Samples of Elements Exam Question III contains All Prior Exam Qs III except faculty -> 【Education&Working Experience】 faculty -> References Abe, M., A. Kitoh and T. Yasunari, 2003: An evolution of the Asian summer monsoon associated with mountain uplift —Simulation with the mri atmosphere-ocean coupled gcm. J. Meteor. Soc. Japan, 81 faculty -> Ralph R. Ferraro Chief, Satellite Climate Studies Branch, noaa/nesdis faculty -> Unit IV text: Types of Oil, Types of Prices Grammar: that/those of, with revision plans2010 -> Residents and their tastebuds plans2010 -> Prepared by: Aaron Moffatt Nicole Batty Download 0.67 Mb. Share with your friends:
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