BUSINESS PLAN

Running head: The Marketing Plan: GAP Analysis 1

The Marketing Plan: GAP Analysis

Strategic Marketing Module 2 Case

The Marketing Plan: GAP Analysis

Segmentation Application

Lead Logistics is involved in the service of transporting freight and goods locally. The freight consists of furniture, appliances, and some smaller-scale products for local businesses to their customers. In addition, the business helps other organizations plan and execute the movement and storage of their products from the point of origin to the point of consumption. ( Porter, 2011). 

The customer need for the target service is to build loyalty and trust. Therefore, customer service is essential in this kind of business. The service has to be customer-centric. Delighting the customer is very critical when the business wants to stand out from the competition. However, in this global economy, the bar is set relatively high, and as a business, it has to make the customer happy. Being in the business of moving freights, customer service is one of the essential elements in the performance of the business. ( Clark, 2004). 

Customer segmentation allows the business to build relationships with customers. It also helps improve customer loyalty by finding better and effective ways to meet the customers' needs. Through customer segmentation strategies, the business will be able to be positioned in the market to influence the perception of the customers in the market and have a competitive advantage. The segmentation strategies for Lead Logistic business will be to narrow and define the target customer. Lead helps the customers distribute their products from manufacturing to consumption or from store to home. Identifying the target is critical in developing a market position for the business, and understanding the competition is essential in the logistics business. It is very critical to stand out from the crowded market and have a competitive advantage. The other segmentation strategy for Lead would be to develop the business's value proposition. This involves understanding what the business can do better concerning the competitors—identifying the business's strengths and majoring in improving. Polishing the business's website and other branding materials to communicate to prospective customers about the business is essential. The value proposition should be well crafted to create a strong message, help customers find the website and immediately understand what the business is offering.

The niche marketing strategy that would be appropriate for this logistic company is to advertise and focus on the unique target market of the business instead of the company marketing to everyone who might not be interested in the services that the company is offering. The company will focus on only one group, which would be the niche market for the business. The niche market of the logistic company is the group of people that are most likely to benefit from the business's services. For example, many companies are in the logistics business. While there is a variety of firms that the customers can choose from to transport their appliances, there are groups of people who can not. This group of people needs their products to be handled with care. This is an underserved segment in the logistic business. Marketing the company targeting this unique group would be essential and beneficial for the business. This strategy would be appropriate for the company since not many logistic companies have targeted the group. This will give the company the advantage in specializing and owning the niche market. In the logistic business, competition is very tight, and the company must specialize the services to a specific unique market to have a competitive advantage in the market. Without a niche market, it would be difficult and almost impossible for the logistic company to stand out in the crowded market. Having specific expertise in a particular area will help in marketing segmentation.

Gap Analysis, Benchmarking, and Competitive Advantage

Gap analysis involves analyzing the current market to assess how the needs and the demands of the customers are met. The demand gap is where the logistic service is too expensive or inadequate for the customer. The Lead Logistics firm strives to fill the gap by offering the services at a reasonable and reduced cost and improving the service's efficiencies. The company will use the gap analysis to elevate the team's performance and improve service quality at a reduced cost. ( Frazelle, 2002). 

Competitive benchmarking involves the process of comparing the company to a group of competitors. The performance of the company is compared with other companies to determine the best practice. In comparing the services of the companies with other competitors, most of the big logistic companies offer a very similar form of customer service to all of their partners. Most of the companies lack specialization allowing the gap in this particular market more accessible to identify. The performance of the business has been tracked in the past six months. The competitors to benchmark with the company critically chose. The company was benchmarked against the close competitors. This gives a good view of the companies that are in direct competition with the business. Identifying which companies and how they are doing it ensures that the company takes the strategies that work.( Dibb,  & Simkin, 2013). 

The strategies to achieve a competitive advantage for the logistic business are to ensure that the business offers quality service and reasonable cost. The company will also achieve a competitive advantage by creating value for the customers. Creating value will involve having differentiated services for the customer. The logistic company aims at meeting the increasing demand of the customer. The business can get ahead of the competition by delivering the products faster or as scheduled. The business will create value for the customer by offering additional services such as assembly. By making the process affordable and efficient can give the company an added advantage over the competitors. The company will also obtain a competitive advantage by consistently exceeding the customer expectation, demands, and requirements. This ensures that the customer is serviced at a lower cost and given great value in the process. ( Christopher, 2016). 

References

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Clark, R. M. (2004). Intelligence analysis: A target-centric approach. C Q Press College.

Dibb, S., & Simkin, L. (2013). Market segmentation success: Making it happen! Routledge.

Frazelle, E. (2002). Supply chain strategy: The logistics of supply chain management. McGraw-Hill Companies.

McDonald, M., & Dunbar, I. (2012). Market segmentation: How to do it and how to profit from it. John Wiley & Sons.

Porter, M. E. (2011). The competitive advantage of nations: Creating and sustaining superior performance. Simon & Schuster.