MARKETING PLAN
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Assignment Brief
MARKETING MANAGEMENT
MARKETING PLAN
ASSIGNMENT 1-Precourse –SWOT ANALYSIS
1.0 Background
The MOS Burger franchise is owned by MOS Food Services, Inc that originated from Japan. The business mainly deals in relation with the food and service industry. The first store opened in June 1972 and was named MOS Burger Narimasu. In 1973, their burger named “Teriyaki Burger” was introduced and become a major hit to the public. This would result in the first store that the MOS Burger franchise would expand in Japan, November 1973.
MOS Burger franchise continued to expand their ever-growing and successful business across different states of Japan with the 50th and 100th MOS Burger store opened during October 1976 and January 1979 respectively. MOS Food Services, Inc was not only able to expand the growth of their franchise stores, but they managed to open various subsidiaries that would benefit their main business. The MOS Burger franchise continued to expand well into the 1990s to international markets like Taiwan and Singapore.
As of August 2012, there are currently 1,412 MOS Burger outlets in Japan. MOS Burger has a strong number in employees of 1,122 and capital of the business is at 11,413 million yen as of March 2012 figures. It has a current net income of 1.8 million yen in the year of 2011 (MOS Food Services, Inc, 2012).
The current competitors for MOS Burger are ....
2.0 Internal Factors
Identify the internal factors, consisting of strengths and weaknesses, allows the organisation to understand the positives and negatives of its current business strategies and targets.
|
Strength Strong Brand Identity At least 5 points |
Weakness Price Effectiveness
At least 5 points |
|
Opportunities Technological Advancement
At least 5 points |
Threats Dampening consumer sentiments
At least 5 points |
2.1. Strengths
MOS Burger has a strong brand identity within the Japan market. MOS Burger positions and markets itself to provide high quality fast food dining which has resulted in a strong consumer loyalty (MOS Food Services, Inc, 2011). Providing consumers with value through safe food that contributes to their well-being while yet at the same time being environmentally conscious. MOS Burger implements smoke-free environments or separated smoking areas, and existing stores are gradually being refurbished, some being made smokefree environments and others being equipped with separate smoking areas that are more effective than before at containing the smoke (MOS Food Services, Inc, 2001). Since its establishment, MOS Burger has always focused on using differentiation strategy which is to define the distinctive quality of their products from other fast food competitors.
MOS Burger makes use of the value chain process by being customer centric to providing the customised services and choice of food . MOS Burger has positioned itself among its consumer markets that the food served is of a healthier choice by promoting the amount of calories that are present in their food (MOS Food Services, Inc, 2010). To meet this sustaining its brand personality among the group, MOS Burger changed their cooking oil to those that are blended with vitamin E which is a healthy source of fat. By providing healthier menus, MOS Burger entices a a specific segment of consumers whom are more health conscious thus increasing the market share of consumers (MOS Food Services, Inc, 2008).
MOS Food Services Inc has expanded its business with subsidiaries that would benefit MOS Burger. The set-up like MOS Credit, Inc which operates on the finances and insurance ensures the stability of the organisation. This enables MOS Burger to understand their financial ability to expand or invest (MOS Food Services, Inc, 2012).
MOS Burger has a huge amount of focus on the quality processes and procedures. MOS Burger has a basic policy of using healthy and safe foods by maintaining the standards used like mineral-rich vegetables and natural beef. The suppliers of such ingredients are picked via a careful selection process, ensuring that the quality achieves the company’s standard (MOS Food Services, Inc, 2011). MOS Burger does not franchise their outlets, allowing more control exerted over their products and services with strict training procedures at their training facility. This will not only result in MOS Burger being able to deliver products and services that will meet the consumers’ expectation, but also ensure the experience of the consumers do not differ with each visit to different outlets. This is known as value service which holds on to the consumers’ loyalty.
MOS Burger’s strong financials had allowed constant expansion of its business. With good cash flow, there is strong financial stability within the business and it will enable a higher availability of capital for the organisation. The latest financial figures have shown that profit perspective, operating income, ordinary income and net income came to 1,024 million yen, 1,173 million yen and 749 million yen, respectively (MOS Food Services, Inc, 2011).
2.2 Weakness
Price effectiveness is a weakness of MOS Burger. Prices are premium as compared to major players within the industry. Their competitors are able to satisfy the needs of the consumer and yet achieve this with lower cost. Prices may only differ as little as few hundred yen but as MOS Burger has a huge market to appeal to, losing a small group of consumers across the country may result in losing out a substantial amount of income.
MOS Burger’s organisational structure of research and development is not as adequate at their competitors. Innovative new products are introduced to their menus at a relatively slower rate as compared to the competitors. MOS Burger loses the advantage to rivals like McDonalds if it fails to constantly reinvent or come up with new products.
Drawing from PESTLE Framework (Kotler Keller, 2012) consisting of six components: demographic environment, economic environment, social cultural environment, natural environment, technological environment and political-legal environment use to assess macroenvironment forces. We have identified the following opportunities and threats.
2.3. Opportunities
Technological advancement of smartphones and the internet has open new markets of food retail shopping as people are living increasingly hectic lifestyles. MOS Burger can reach out to more consumers and provide an added convenience through upgrading its booking system and extending its delivery service beyond its current 206 stores and offshore.
The bull run of the Yen against the dollar may provide an opportunity for MOS Burger to explore the possibility of new markets that were previously too costly to expand to as well as altering sourcing strategy by moving non-core production overseas improving cost competiveness. (David W. Conklin, 2006)
2.4. Threats
For two decades, Japan economic growth had been stagnant or seen minor growth.(Leika Kihara, 2012). In addition years, the weak economy has been battling with impacts from the financial turmoil in Europe and appreciation of the yen eroding exporter’s profit margins. As such, Japan is undergoing harsh domestic economic conditions, dampening consumer sentiments. (MOS Food Services, Inc, 2011)
A report by the (Foodservice Industry Research Institute) and (Hiroko Tabuchi, 2010), indicated that the restaurant industry including fast food stores revenue is declining; contracting year on year after its peak in 1997. In 2009, restaurant revenue, fell 2.3 percent, to 23.9 trillion yen —20 percent below the peak. Businesses are locked in fierce price wars as consumers are seeking affordable dining.
(Ministry of Internal Affairs and Communications, 2012) has published a report on the changing demographic in Japan shifting towards an aging population along with declining birth rate. MOS burger’s consumers have been teenagers to younger working adults with disposable income and it has yet to explore into the emerging matured market segment. In the near future, it may face a shrinking customer base as their consumers ‘outgrow’ and move on to find alternatives to meet their needs and wants.
The fast food restaurants commonly perceived as “junk food” has been subjected to greater scrutiny by the public over increasing obesity numbers and health concerns. In an effort to meet changing public’s sentiments, competitors like McDonalds’ are gradually adding healthier product offering like apple dips and corn cups and revamping their menus to reflect calories. MOS Burger’s target segment of health conscious consumers have more choices than ever before while dinning out (Daily Mail UK).
Recent media coverage on escalated dispute over Senkaku islands between Japan and China has sparked anti-Japanese sentiments across Asia (Kazunori Takada and Chris Buckley, 2012). Major Japanese brand name firms have announced factory shutdowns amidst widespread protest. Political instability poses a risk to MOS burger franchisee operations in China (Masatsugu Horie and Ma Jie, 2012).
MOS burger is founded in Japan, a country situated in a zone that is prone to earthquakes and other natural calamities (MOS Food Services, Inc, 2011). In the aftermath of the Great East Japan Earthquake, MOS Burger’s 118 stores across devastated areas suspended operations due to damages and distribution of goods were affected.
Conclusion
MOS burger’s strong brand and financial capitalisation has made it a sustainable organisation within the Japanese food industry sector. Capitalising on its competitive advantage within the industry , it is providing premium high end fast food and incorporating healthier choice within the LOHAS market in Japan. The company uses differentiation strategy based on its price and variety of offerings to stay competitive within the Economically unstable situations of the country. Further analysis will be dealt with during the overall development of the marketing plan , that will possibly enable the growth of the company towards a strategic dimension.
References
1. MOS Food Services, Inc, Corporate.
http://www.mos.co.jp/english/corporateinfo/
2. MOS Food Services, Inc. 2001. MOS Burger Annual Report & Financial Review.
http://www.mos.co.jp/company/ir/library/business_report/pdf/fin_rep0102.pdf
3. MOS Food Services, Inc. 2008. MOS Burger Annual Report & Financial Review.
http://www.mos.co.jp/company/ir/library/business_report/pdf/BR2008.pdf
4. MOS Food Services, Inc. 2010. MOS Burger Annual Report & Financial Review.
http://www.mos.co.jp/company/ir/library/business_report/pdf/BR2010.pdf
5. MOS Food Services, Inc. 2011. MOS Burger Annual Report & Financial Review. http://www.mos.co.jp/company/ir/library/business_report/pdf/BR2012_01.pdf
6. Philip Kotler and Kevin Lane Keller. 2012. Marketing Management Kotler Keller. Pearson Education Limited.
7. David W. Conklin, 2006. Cases in the environment of business-international perspective. Sage Publications.
http://books.google.com.au/books?id=Ppjam4YUSiUC&pg=PA143&lpg=PA143&dq=ap preciation+of+yen+franchise+opportunities&source=bl&ots=v0d7Z__CWQ&sig=sNH7tl
ePv2XXVYKggutw&hl=en&sa=X&ei=2hJqUIjzHbHJmAWi5oGICw&ved=0CDcQ6AE wAA#v=onepage&q=appreciation%20of%20yen%20franchise%20opportunities&f=false
8. Leika Kihara. 2012. Japan eyes end to decades long deflation. Reuters. http://www.reuters.com/article/2012/08/17/japan - economy - estimate idUSL4E8JH1TC20120817
9. Hiroko Tabuchi, 2012. For Sushi Chain, Conveyor Belts Carry Profit. The New York Times.
http://www.nytimes.com/2010/12/31/business/global/31sushi.html?_r=1&pagewanted=all
10. Ministry of Internal Affairs and Communications. 2012. Japan Monthly statistics.
http://www.stat.go.jp/english/data/getujidb/index.htm#b
11. Daily Mail UK. MPs to grill McDonald's over obesity.
http://www.dailymail.co.uk/news/article - 202904/MPs - grill - McDonalds - obesity.html
12. Kazunori Takada and Chris Buckley. 2012. Japan brandname firms shut China plants after protest violence. Reuters.
http://www.reuters.com/article/2012/09/17/us - china - japan - idUSBRE88F00H20120917
13. Masatsugu Horie and Ma Jie. 2012. Toyota Supplier Toyo Tire Reviews China as Protests Grow. Bloomberg. http://www.bloomberg.com/news/2012 - 09 - 20/toyota - supplier - reviews - china - plans - as anti - japan - protests - mount.html
14. Ma Jie. 2012. Nissan Surrenders 2012 Rally as Yen Strengthens, Chinese Protest. Bloomberg.
http://www.bloomberg.com/news/2012 - 09 - 24/nissan - surrenders - 2012 - rally - as - yen strengthens - chinese - protest.html
ASSIGNMENT 2-MARKETING PLAN
Page 2 of 20
Page 9 of 20
TABLE OF CONTENTS
Executive Summary ................................................................................................... 2
1.0 Situation Analysis ....................................................................................................... 3
1.1 Market Summary ................................................................................................... 3
1.2 SWOT Analysis ..................................................................................................... 4
1.3 Competition ........................................................................................................... 6
1.4 Product Offering .................................................................................................... 7
1.5 Key to Success ....................................................................................................... 8
1.6 Critical Issues ......................................................................................................... 9
2.0 Marketing Strategy .................................................................................................... 9
2.1 Mission .................................................................................................................. 9
2.2 Marketing Objectives ............................................................................................. 9
2.3 Financial Objectives ............................................................................................ 10
2.4 Target Markets ..................................................................................................... 10
2.5 Positioning ........................................................................................................... 11
2.6 Strategies .............................................................................................................. 11
2.7 Marketing Mix ..................................................................................................... 12
3.0 Financials .................................................................................................................. 15
3.1 Break-even Analysis ............................................................................................ 15
3.2 Sales Forecast ...................................................................................................... 15
3.3 Expense Forecast ................................................................................................. 16
4.0 Controls ..................................................................................................................... 17
4.1 Implementation .................................................................................................... 18
4.2 Contingency Planning .......................................................................................... 19
5..0 Conclusion ................................................................................................................ 19 References ........................................................................................................................ 20 Appendices
1.0 Executive Summary
Metro Parking, both a professional car park operator and system integrator, provides highcalibre car park services to meet customers’ needs since 1992 (Metro Parking 2010). They are well known and respected as Singapore’s first-rate consultancy, service and equipment provider in professional car park management. Throughout the years, Metro Parking has proved to be incomparable in the industry and is the only car park management company with numerous accomplishments.
This plan seeks to generate an increase in the market share in target market, profit margin, car park equipment sales and retain existing customers by utilising the information obtained from retainer consulting, project consulting and market research, compared to the previous fiscal year.
Key focus points of this plan leans towards generating more brand awareness, gaining a bigger market presence and the targeted increase in sales-revenue. The following will be elaborated in the tables presented in this plan. Figures shown are based on predictions of the next three years attainable by meeting the objective of being customer focused. Procuring new customers and retaining existing customers would be essential in the process of maintaining the positioning as an all-in-one solution provider while reducing competition, improve car park equipment pricing, sales and reducing risk.
With the marketing strategies in place and the heightened brand awareness, Metro Parking can expect to see an increase in its market share and value. Therefore, leading up to a greater success in its revenue growth and enhanced positioning as an all-in-one solution provider in the parking industry.
2.0 Situation Analysis
Metro Parking has been both a professional car park operator and system integrator, which provides high-calibre car park services to meet customers’ needs since 1992 (Metro Parking 2010). Throughout the years, Metro Parking has proved to be incomparable in the industry and is the only car park management company with numerous accomplishments.
2.1 Market Summary
Metro Parking is well known and respected as Singapore’s first-rate consultancy, service and equipment provider in the parking industry (Metro Parking 2010). Therefore, marketing will be the key to the development of Metro Parking’s product and service awareness as well as the growth of the clientele base.
Target Markets
· Building developers
· Commercial building owners
· Management Corporation Strata Title (MCST)
· Competitors
2.1.1 Geographic Factors
Metro Parking targets business consumers, therefore the target markets are segmented geographically instead of using demographics or psychographics characteristics as these two types of segmentation are usually more applicable for consumer markets. Since Metro Parking’s target market lies solely in Singapore, it is impossible to differentiate them into zones because ultimately the company looks forward to covering as many areas as possible. The company’s car parks cover almost all parts of Singapore. It is the preferred partner for the management of car parking facilities from various industries such as commercial, residential, industrial, government and hospital (Metro Parking 2010). Metro Parking is currently managing 34 car parks varying from car park management services and sales of parking equipment in Singapore.
2.2 SWOT Analysis
2.2.1 Strengths
Opportunity Matrix
Success Probability
High Low
|
Attractiveness
Low
High
|
|
|
Diagram 2.2.1 (Self-created 2012)
2.2.2 Weaknesses
Threat Matrix
Probability of Occurrence
High Low
|
Seriousness
Low
High
|
|
Diagram 2.2.2 (Self-created 2012)
2.2.3 Opportunities
· Penetrate into private sectors (70 percent of the commercial buildings are privately owned) where Metro Parking will face lesser competition and minimum red tapes when entering into business dealings with building owners.
· Offer value-added services such as valet parking, self-online services for season holders and various payment modes that provide convenience to season holders renewing season passes. These will greatly enhance its image as professional car park operators.
· Increase the likelihood of renewing contracts with existing customers by fostering good working relationship.
· Widen the target markets to competitors.
· Provide its expertise in giving consultation services in car park design to building owners who are constructing new buildings.
· Set up a subsidiary company where the core business is sales of car park equipment.
2.2.4 Threats
· Shortage of manpower, specifically the car park attendants.
· High staff turnover rate due to irregular working hours and mundane job scopes
· Price control and monopolisation of Electronic Payment System (EPS) by the only supplier, Mitsubishi Heavy Industries (MHI) in Singapore
· Potential increase in equipment prices if MHI decides to raise the cost prices in future
2.3 Competition
Potential
Entrants
Substitutes
Buyers
Suppliers
Industry
Competitors
Rivalry among existing
firms
2.3.2
Threat of
substitute products
or service
2.
3.4
Bargaining
power of buyers
2.
3.
5
Bargai
ning
power of suppliers
Threat of New
2.3.3
Entrants
Diagram 2.3: Five competitive forces model (Self-created 2012)
2.3.1 Intensity of Rivalry
Being the only car park operator receiving continual EXSA awards, this helps in increasing customers’ confidence in Metro Parking. Over the years, Metro Parking has established great relationships with their customers and maintained greater customer loyalty. Metro Parking has to convince its current customers that there will be high switching costs if the customers decide to switch to its competitors.
2.3.2 Threat of Substitutes
Although there are currently no substitutes available in the market for car park operating equipment such as full and semi EPS, Metro Parking is however, still susceptible to its equipment provider, MHI (Mitsubishi Heavy Industries, Ltd 2012). Parking operators may face the risk of being substituted by MHI if they setup their own car park management company in future. As technology evolves, the machineries are also being substituted.
2.3.3 Threat of New Entrants
As costs are high, it will not be easy to enter the industry as large amount of capital will be needed to build, develop and market the services. Inputs such as research and development, advertising, managerial expertise and skilled labour are very expensive. The latest new entrant in the parking industry is Parkway Investments (Far East Consortium International Limited 2012).
2.3.4 Bargaining Power of Buyers
With reference to the five competitive forces, there is a low bargaining power of buyers as there are many buyers in the industry and the services provided by various car park operators are consistent. Therefore, it makes the industry look attractive and less competitive, which also increases the profits potential of the sellers.
2.3.5 Bargaining Power of Suppliers
Suppliers are the businesses that supply commodity and services to the industry. The cost of items bought from suppliers, for example the raw materials and components, can have a significant impact on a company's profitability. As MHI is the only supplier for car park equipment such as antennas and charging units, MHI has higher bargaining power over Metro Parking.
2.4 Product Offering
Being a professional car park management provider, Metro Parking is experienced in delivering excellent service in car park management and operation. The company is also proud to have its very own car park specialists awarded with EXSA and CCI awards throughout the years (Metro Parking 2010).
Metro Parking’s customers experience the following benefits:
· Responsive and cost saving car park management system and services
· Maximised profits through professional analysis and consultancy
· Optimum occupancy of car parks
· Automated and systematic process in revenue collection and consolidation
· Well-trained and service-oriented staff who attend to customers’ needs.
With reference to the above point, Metro Parking also provides services that include EPS,
Cash Card / CEPAS (Contactless e-Purse Application) card systems, Season Parking and NETS (Network for Electronic Transfers) administration as well as consultancy services. The company also provides other value-added services such as valet parking, traffic control and parking enforcement.
Metro Parking does not only specialise in management services but is also an experienced car parking equipment and systems supplier, which provides excellent services and valuable offerings to satisfied clients over the years. The personalised service benefits include having dedicated area managers to service accounts and a team of technical support staff who will be sent to the site to ensure the car park equipment are functioning well. Furthermore, there will also be scheduled maintenance program to ensure the equipment is maintained along with the ability to advise and customise a system that best suit customers’ requirements (Metro Parking 2010).
2.5 Key to Success
A company’s positioning and differentiation strategy must change as the product, market, and competitors change over the product life cycle. As products have limited life, products sales pass through distinct stages, posing different challenges, opportunities and problems. The profits rise and fall at different stages of the product life cycle.
Therefore, products require different marketing, financial, manufacturing, purchasing and human resource strategies in each life cycle stage. One of the keys to success is adding more value-added services to the company for the customers and continues to market, design and produce products that meet the market demand. This should be done during the growth and maturity stage, as it is the crucial stages of a product life. In addition, Metro Parking also needs to ensure total customer satisfaction, which eventually leads to a profitable and sustainable company.
2.6 Critical Issues
The critical issues for Metro Parking are to:
· Enhance the brand image as an all-in-one solution provider in the parking industry
· Increase customer satisfaction through improvements to service
· Foster good working relationship with existing customers and MHI
3.0 Marketing Summary
Metro Parking is currently the only car park management company that is both a car park operator and system integrator in Singapore. With such competitive advantage, Metro Parking is able to position itself to be incomparable in the parking industry.
The primary focus of Metro Parking’s marketing strategy is to expand the customer base and retain existing customers. The key to the marketing strategy is to focus on maintaining a positive and strong position as well as increasing the visibility of Metro Parking as an all-inone solution provider in the parking industry.
3.1 Mission
Metro Parking’s mission is to provide remarkable parking experiences for the motorists -
“We provide a great parking experience for motorists in a safe and secure environment.” (Metro Parking 2010).
3.2 Marketing Objectives
A strong customer base is the foundation of a successful business and every business needs to focus on its customers. In order for Metro Parking to attract customers and increase the value of customer base, it has to make itself visible to the customers through brand recognition.
The marketing objectives for Metro Parking are to:
· Increase market share in target market by three percent within 12 months
· Retain existing customers by offering value-added and customised services through superior customer service
3.3 Financial Objectives
With the increase in new constructions in Singapore, the parking industry is expected to grow. Metro Parking can increase profits by leveraging on its core competencies – comprehensive range of consultancy services and superb equipment provider.
Metro Parking shall be looking at the following financial objectives:
· Increase profit margin by three percent within 12 months
· Increase car park equipment sales by two percent within a period of 12 months
3.4 Target Markets
The main target market for Metro Parking is the building developers and commercial building owners. Some of the building developers and commercial building owners include
AsiaMalls, Ascendas, CapitaLand, City Developments Limited (CDL), Far East Organisation, JTC Corporation and MapleTree.
Many parking facilities are located within office buildings, hotels and mixed-use projects.
More mixed-use developments are gaining popularity in Singapore which includes South
Beach @ City Hall by CDL and the redevelopment of the Capitol site (PropertyGuru Group 2012). With such an increase, it has given Metro Parking more opportunities to increase its market share.
In addition, Metro Parking can target the management corporations that fall under the MCST.
The management corporations include freehold condominium developments such as Sylvan Lodge and The Belvedere (Singapore Land Authority 2011). As most property developers tend to purchase only the parking system and equipment, Metro Parking can leverage on its core competencies and offer value to the developers.
Besides targeting at the building developers, Metro Parking can also reach out to its competitors such as Wilson Parking and P-Parking International. As Metro Parking is currently the only system integrator in the parking industry, it can increase its market share and sales in car park equipment by offering such services to its competitors.
3.5 Positioning
Metro Parking will position itself as an all-in-one solution provider primarily focusing its core business in selling car park equipment to building owners as well as its competitors. The company will shift its attention away from car park management to sales of parking equipment and value added services such as season pass administration, NETS settlement services and central control services.
This will greatly enhance the company profitability as 70 percent of the buildings in Singapore are privately owned. In the local culture, most of the building owners would prefer to manage the car parks by themselves with the unwillingness in sharing the lucrative revenue with the car park operators.
Furthermore, the company faces less competition as a system integrator. There are currently less than five companies in Singapore that sell car park equipment. With its vast experiences accumulated over the years in the business, the company is at a greater position and competitive edge as it is both a car park operator and system integrator. It can also offer its customers with greater flexibility in choosing the right services that tailor to their needs.
3.6 Strategies
In line with the primary objectives, the first marketing strategy is to heighten and create more brand awareness of the company (Kotler et al. 2009, 270). It will communicate to its target markets that the company will shift its focus away from car park management tenders to car park equipment sales. This will also lighten and eliminate its former competitors’ fear towards Metro Parking. In actual fact, the competitors are one of the target markets that the company is targeting at in selling car park equipment. Metro Parking is adopting the mobile defense strategy through market broadening and diversification.
The second strategy will be launching a bypass attack by diverting its attention to the building owners where this market segment is currently neglected by majority of the car park operators (Kotler et al. 2009, 348). The current trend in car park management services is that all the car park operators are paying most of the attention in participating in car park management tenders invited by Housing and Development Board (HDB).
The marketing method will be using the company website as one of the communication channel. The website will also provide great source of information on the car park equipment sale services for interested parties. Concurrently, the company will mail hard-cover brochures printed in good glossy paper to all building owners and its competitors to communicate the goodness of its car park equipment and value-added services. Metro Parking will also organise trade talks and networking lunch to deliver its intended messages.
Undeniably, the company will spend considerable expenditures in terms of monetary and time, but this will be worthwhile as it will showcase and create positive perceptions of the target markets toward the company’s professionalism and its products and services.
3.7 Marketing Mix
Product
Being a professional car park operator, Metro Parking is committed to deliver a great experience for its customers through the provision of high-calibre car park services with the use of in-house car park system and equipment. As part of the Top 500 SME companies in Singapore, Metro Parking is proud to be the only car park operator and system integrator that uses its very own in-house equipment.
To further enhance branding for Metro Parking, the company offers customers a customisable equipment package specially tailored to their requirements. The package will include software and value-added services to meet the specific needs of the customers. By offering the choice of option and flexibility, customers can choose from either engaging Metro Parking to manage the car park or provide state-of-the-art parking equipment such as EPS, vehicle access control systems and cash card parking system (Metro Parking 2010).
Metro Parking will leverage on information and communications technology to create a mobile application that provides drivers with a real-time update on the nearest Metro
Parking’s car parks as well as the number of parking lots available in the car parks. The mobile application will be developed for iPhone and Android users as smartphones are gaining dominant in Singapore. In addition, both iPhone and Android are selected because they have the largest market share in Singapore (Lee 2011).
Price
To produce a finer match between demand and supply, Metro Parking will be using differential pricing where the company will introduce a premium price for its car park equipment, which includes the provision of value-added services. The bundled deal is to encourage customers to use its in-house equipment. Bearing in mind on the affordability,
Metro Parking’s prices are priced competitively with its competitors. Based on its core competencies, Metro Parking will provide value-added services to customers. Some of the value-added services include offering assistance in backend administrative work that is offered solely by Metro Parking, generating reports and updating of season passes.
Place
Metro Parking will be engaging in zero level marketing where the company will channel its products through direct marketing without the use of any intermediary. Also, through channel differentiation, the company also aims to work in partnership with major shopping malls developers such as CapitaMalls Asia, Far East Organisation to position as a leading car park operator amongst its competitors such as Wilson Parking and G. Tech.
Building owners are currently a neglected target market and thus it is an opportunity for Metro Parking to venture into and build up the branding as an all-in-one solution provider. By working with the developers and building owners, it not only helps Metro Parking to create an up-market image but also increases status recognition. Customers will have a better and positive perception of Metro Parking if it is partnering with well-known developers. This will also increase the credibility of Metro Parking.
Condominiums will be another alternative for Metro Parking to tap into. It is also a neglected portion of the target market as competitors usually focus on gaining the tenders for HDB car parks. As condominiums are often associated with a higher social class, this will help to build up the brand perception of Metro Parking and to further support the company’s strategy of using the bypass attack.
Promotion:
Advertising:
In the aspect of advertising, the company will be using print advertisements such as brochures. It will be distributed to building owners to entice them with Metro Parking’s inhouse equipment. The distributions will be done on alternate months during a period of half a year as part of the company’s effort in engaging in direct marketing.
On top of that, Metro Parking will advertise its EXSA awards on print media such as The
Straits Times. This will further enhance the company’s image and shape customer’s perception on the company as being an established and reliable car park operator.
Events and Experience:
Metro Parking will conduct trade talks and networking lunch that will be held in the central business district area such as Raffles Place to increase customer awareness on the equipment and bundled package that the company is offering. It provides a good opportunity for the company to share the product offering and showcase the equipment. Metro Parking will invite the target audience for the networking lunch via electronic direct mailers. Special promotion bundle such as free value-added services for the first three months to the customers will also be introduced during the networking lunch. Apart from that, Metro Parking will also get to know its potential target market better.
Public Relations and Publicity:
As part of the company’s strategy in increasing brand awareness, another form of promotion will be collaborating with MediaCorp, the main terrestrial broadcaster in Singapore to feature Metro Parking in lifestyle television programmes (MediaCorp Pte Ltd 2012). The programmes will focus on how SME companies use information and communications technology to increase productivity as being encouraged by Info-communications
Development Authority of Singapore’s (IDA) initiative. The initiative was mentioned in the media release by IDA where companies are encouraged to develop innovative technology that will benefit the consumers (Info-communications Development Authority of Singapore 2012).
Personal Selling:
Door-to-door selling and cold calling will be other forms of promotional activity for Metro
Parking. To further establish the company’s portfolio, it is necessary for Metro Parking to undertake the basic forms of marketing tactics. This will not only help the company to promote its products and services, but it also enables Metro Parking to select and shortlist potential customers.
4.0 Financials
In view of the finance relating to Metro Parking marketing activities, the following will seek to provide insights on the break-even analysis, sales and expense forecast, and indicate how these activities link to the marketing strategy.
4.1 Break-even Analysis
|
Assumptions (Car Park Equipment) |
|
|
Average Per-unit Revenue |
$75,000 |
|
Average Per-unit Variable Cost |
$37,500 |
|
Estimated Monthly Fixed Cost |
$22,500 |
Table 4.1 (Self-created 2012)
4.2 Sales Forecast
In line with the marketing strategies aimed at generating greater brand awareness, the company aims to provide and improve its services to reach out to its targeted markets. This includes using focused marketing channels such as the company website to act as the main source of information on the services. In addition, the company seeks to invest in below-theline collaterals such as hardcover sales kits, promotions and brochures for meetings and distribution.
|
Sales Forecast |
2012 |
2013 |
2014 |
|
Sales of Equipment - Semi EPS |
$1,200,000 |
$1,240,000 |
$1,280,000 |
|
Sales of Equipment - Full EPS |
$2,000,000 |
$2,060,000 |
$2,120,000 |
|
Maintenance Contracts (Equipment) |
$180,000 |
$185,400 |
$191,000 |
|
Value-added Services |
$24,000 |
$25,000 |
$26,000 |
|
Total Sales |
$3,404,000 |
$3,510,400 |
$3,617,000 |
|
Direct Cost of Sales |
2012 |
2013 |
2014 |
|
Sales of Equipment - Semi EPS |
$960,000 |
$980,000 |
$1,000,000 |
|
Sales of Equipment - Full EPS |
$1,600,000 |
$1,700,000 |
$1,800,000 |
|
Maintenance Contracts (Equipment) |
$144,000 |
$148,000 |
$150,000 |
|
Value-added Services |
$20,400 |
$22,000 |
$23,500 |
|
Subtotal Cost of Sales |
$2,724,400 |
$2,850,000 |
$2,973,500 |
Table 4.2 (Self-created 2012)
4.3 Expense Forecast
For 2012, the marketing expenses will be high during the first and second quarter of operation as Metro Parking will focus on generating product awareness to the target markets. Therefore, the sales and marketing expenses is expected to increase to SGD$ 439,500 in 2012. The expenses will settle a bit during the third and fourth quarter. The marketing efforts in 2012 and 2013 will have created sufficient awareness for Metro Parking. Thus, the sales and marketing expenses will be reduced to SGD$ 268,000 in 2014.
Marketing Expenses Budget for 2012
|
Marketing Expenses Budget |
FY12 Q1 |
FY12 Q2 |
FY12 Q3 |
FY12 Q4 |
|
Advertisements |
$90,000 |
$90,000 |
$35,000 |
$35,000 |
|
Printed Material |
$5,000 |
$5,000 |
$3,000 |
$2,500 |
|
Electronic Direct Mailer |
$4,000 |
$5,000 |
$2,000 |
$1,000 |
|
Agency Retainer (Creative) |
$500 |
$500 |
$500 |
$500 |
|
Events |
$50,000 |
$50,000 |
$50,000 |
$10,000 |
|
Total |
$149,500 |
$150,500 |
$90,500 |
$49,000 |
Table 4.3.1 (Self-created 2012)
Marketing Expenses Budget for 2012 to 2014
|
Marketing Expenses Budget |
2012 |
2013 |
2014 |
|
Advertisements |
$250,000 |
$175,000 |
$150,000 |
|
Printed Material |
$15,500 |
$10,000 |
$10,000 |
|
Electronic Direct Mailer |
$12,000 |
$6,000 |
$6,000 |
|
Agency Retainer (Creative) |
$2,000 |
$2,000 |
$2,000 |
|
Events |
$160,000 |
$100,000 |
$100,000 |
|
Total Sales and Marketing Expenses |
$439,500 |
$293,000 |
$268,000 |
|
Percent of Sales |
12.91% |
8.35% |
7.41% |
Table 4.3.2 (Self-created 2012)
5.0 Controls
Metro Parking’s marketing plan serves as a platform for carving out the company’s brand identity, as well as to reinforce its positioning as Singapore’s preferred car park solutions provider. To gauge the effectiveness of the above marketing strategies, the following will be used to measure the performance of the company through the financial year:
· Revenue: Monthly and Annual
· Expenses: Monthly and Annual
· Customer Satisfaction
· New Product Development
5.1 Implementation
The following milestones identify the outline of various activities that the marketing team needs to take note of and the deadlines for each individual activity.
|
Milestones |
|
|
Plan |
|
|
|
|
Start Date |
End Date |
Budget |
Manager |
Department |
|
Marketing plan completion |
14-Mar-12 |
21-Mar-12 |
$0 |
A. Poh |
Marketing |
|
Media Plan |
22-Mar-12 |
30-Mar-12 |
$3,200 |
A. Poh |
Media Agency |
|
New sales kit |
22-Mar-12 |
30-Mar-12 |
$20,000 |
M. Lee |
Marketing |
|
Corporate brochure |
22-Mar-12 |
30-Mar-12 |
$15,000 |
Fung SP |
Marketing |
|
Upgrading of Website |
23-Mar-12 |
30-Mar-12 |
$10,000 |
Faj |
IT |
|
Electronic document management system |
26-Mar-12 |
30-Mar-12 |
$3,000 |
M. Lee |
Marketing |
|
Print media advertising |
1-Apr-12 |
31-Dec-12 |
$80,000 |
Fung SP |
Marketing |
|
Collaboration with MediaCorp |
14-May-12 |
25-May-12 |
$10,000 |
Alvin |
Marketing |
|
Advertising Campaign #1 - Launch networking lunch |
28-May-12 |
15-Jun-12 |
$10,000 |
G. Lee |
Marketing |
|
Implementation of networking events |
30-Jul-12 |
4-Sep-12 |
$40,000 |
Faj |
Marketing |
|
Advertising Campaign #2 -Sustenance |
20-Jun-12 |
27-Jul-12 |
$25,000 |
G. Lee |
Marketing |
|
Development of mobile application |
1-Apr-12 |
20-Apr-12 |
$2,000 |
M. Lee |
Marketing |
|
Total |
|
$218,200 |
|
|
Table 5.1 (Self-created 2012)
5.2 Contingency Planning
Taking into the consideration on the external competition that Metro Parking faces, the company should keep a close watch on its pricing strategies. Thus, it is important for the company to allow its sales consultants to have a certain degree of flexibility to adjust quotations and provide value added services.
Taking into account the high turnover rate of the frontline staff, Metro Parking has to be in close contact with the human resource department and its manpower solutions provider. This allows the company to upkeep its productivity level and ensures constant customer satisfaction at all times.
Monitoring operations should be in place as a crisis management preventive measure. This process will aid in revealing any drastic fluctuations in the financial market place, while speeding up response time towards problem rectification.
6.0 Conclusion
Throughout its past 20 years in the parking industry including 10 years of experience in sale of car park equipment, Metro Parking has evidently, gained a strong and respectable foothold in the industry. With all these marketing strategies in place, Metro Parking should see an increase in its market share within the next financial year, while enjoying a greater success in its revenue growth and heightened brand awareness. The increase in customer satisfaction would also further enhance its positioning the marketplace as it continues to strive for excellence in its mission to being an all-in-one solution provider in the parking industry.
7.0 References
Info-communications Development Authority of Singapore. 2012. Singapore's Highest Accolade For Infocomm Innovation is Now Open for Nominations.
http://www.ida.gov.sg/News%20and%20Events/20120313115356.aspx?getPagetype=20 .
Far East Consortium International Limited. 2012. Discloseable Transaction Involving Sale Of The Property.
http://www.hkexnews.hk/listedco/listconews/sehk/2012/0316/LTN201203161037.pdf .
Kotler, Philip, Kevin Lane Keller, Swee Hoon Ang, Siew Meng Leong, and Chin Tiong Tan.
2009. Marketing Management: An Asian Perspective. 5th ed. Singapore: Pearson Education.
Lee, Terence. 2011. Android gains mobile ad market share in Asia while iPhone drops, says InMobi. http://sgentrepreneurs.com/news - stop/2011/11/22/android - gains - mobile - ad - market share - in - asia - while - iphone - drops - says - inmobi/ .
MediaCorp Pte Ltd. 2012. MediaCorp : Vision & Mission. http://www.mediacorp.sg/en/about .
Metro Parking. 2010. Metro Parking Professional Carpark Operator in Singapore. http://www.metroparking.com.sg/ .
Mitsubishi Heavy Industries, Ltd. 2012. Electronic Road Pricing System in Singapore.
http://www.mhi.co.jp/en/products/detail/electronic_road_pricing_system.html .
PropertyGuru Group. 2012. Mixed-use projects more popular now than before.
http://www.propertyguru.com.sg/property - management - news/2012/1/32151/mixed - use projects - more - popular - now - than - before .
Singapore Land Authority. 2011. List of Management Corporations.
http://www.sla.gov.sg/doc/new/List%20of%20Management%20Corporations.pdf .
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