Action Plans and Marketing Mix
The goal of this action plan is to ensure that the strategies set in place as outlined in the business
plan are achieved. In essence, it will dictate how various market mixes will be implemented, how
the marketing strategy will work and the marketing budgets necessary for implementation. It
outlines how the activities necessary to make the market plan a reality will be implemented by
ensuring that the ear device meant for hands free driving in the city reaches the intended market
and brings the intended level of profitability.
In implementing the business plan, there is absolute need to focus on the target market as this
will ensure that the projected sales volumes can be achieved (Susman, 2007). The focus market
for this product includes the youths and middle aged individuals who are more likely to actively
use their phones for conversations, music and other uses while driving or attending ceremonial
activities. These are people who want to keep up with their acquaintances both at the social and
professional circles and laws limiting their use of mobile phones are the last thing they should be
Promotional activities will centre on advocating for safe driving. The use of mobile phones
highly prevalent in the modern society and individuals are almost always in communication.
Promotional activities will therefore dwell on showing consumers need for a solution to ensure
that individuals can use their phones while driving without compromising their safety while at
the same time avoiding contravening the law. It is however apparent that as much as GM’s free
hand mobile device is effective for enhancing communication, it is also relatively expensive at
$220, compared to other products such as Nokia Wireless that goes for only $150 and other
cheaper options. This means that the marketing strategy should be highly focused on showing
why GM is the preferred choice, given its versatility, and why consumers should choose GM
over cheaper products (Szwarc, 2005).
Sales persons are expected to sell the uniqueness of GM as a brand and flexible features of the
device including safety, power to attract sounds which makes it useful even for people with
disabilities, its magnetic system that allows it to stick even on plastic surfaces and ability to
enhance hearing in noisy places. This will also be portrayed on print and digital media to create
popularity for the brand.
Given the practical use of the hands free device and the fact that the main target market is out
and about with their cars, direct marketing to motorists will ensure that the business can reach as
many customers as possible. In this relation, direct marketers will be deployed to various cities to
distribute flyers, do demonstrations and sell the hands free devices (Susman, 2007). This is
besides the distribution of the device through the business’ outlets and selected stores across the
The business recognizes that the internet has become part of peoples’ lives and the plan is to
reach out to people through the internet. Through online marketing tactics including the use of
social media, video sharing and a well organized website, the business will reach a significant
number of young and middle-aged clients (Akaur and Medury, 2010). To achieve this, social
pages including Facebook, Twitter, LinkedIn and YouTube will be created for the device, and
shared widely across the social networks. To promote followership, interesting content including
educative videos on safe driving, the importance of having a hands free device and testimonials
will be shared (Akaur and Medury, 2010).
Action Time frame Responsible team
Issues to note
Market survey 3 months Marketing manager How do customers perceive hands
Would customers be willing to
invest in a hands free device and
What are other organizations
doing in terms of marketing?
What are the competitors’ prices
and device quality?
4 months Director and
Is the anticipated income adequate
to cover business expenses and
give projected profit?
Are the budget estimates realistic
and do they offer allowance for
Hands free device
price and supply
1 month Director Can the price be negotiated?
How would the price vary if the
business purchased in large
Purchase and order
Continuous Procurement manager
How fast can an order be delivered
following a purchase requisition?
Alternative modes of transport to
cut on costs
What is the required period for
payment of the devices supplied?
the first six months
and sales team
This is a new product requiring
What are customer needs and can
we meet them?
Competitors with similar products
are selling at a cheaper price than
Profitability is a major objective
Sales Continuous Sales manager and
Which is the target market?
Which are the best places to reach
customers and how?
Is the business plan working as
Is the business sustainable?
What can be done to improve the
The business has an objective of selling at least 200,000 units within 6 months. Considering the
time required for the product to be accepted in the market and the presence of competitors, the
hands free device may take approximately 6 months to break-even and start recording
profitability. Selling the product at $220 each, the company is expected to break-even at 135,136
units. The returns for the product are expected to rise significantly and the sales forecast can be
shown as follows.
Year oneYear twoYear threeYear four
Sales projections per year
Year 1 Year 2 Year 3 Year 4
Number of units 500,000 550,000 700,000 850,000
Sales @220 per
$110,000,000 $121,000,000 $154,000,000 $187,000,000
$25,000,000 $27,500,000 $35,000,000 $42,500,000
Staff $1,200,000 $1,300,000 $1,700,000 $1,700,000
$2,750,000 $1,750,000 2,320,000 2,320,000
$40,000,000 $26,000,000 $13,000,000 $9,000,000
Total $68,950,000 $56,550,000 $52,020,000 $55,520,000
Profit per year
based on units sold
$41,040,000 $64,450,000 $101,980,000 $131,480,000
This budget is developed with significant consideration for possible uncertainties in the market
but it is also an optimistic budget whereby the business hopes to achieve incremental income and
profitability (Thornbory and Farley, 2007). The first year is critical to the success of the business
and a great level of marketing is required in order to make the product known in the market
(Shim and Siegel, 2009). it is for this reason that a huge marketing budget set at $40,000,000 is
projected as it will ensure that adequate marketing and promotional services are carried out. As
the initial year, a considerable amount is also required in setting up; which denote a higher
amount of office and overhead costs (Shim and Siegel, 2009). As shown in the budget above,
some entries keep increasing as the years go by and this can be explained by the fact that the
company is growing and demand and geographical reach of the product may therefore increase
as demonstrated in the larger number of units sold per year. The company is thus bound to spend
more on additional staff and office and overhead costs. The promotional budget however reduces
as clients become aware of the business’ products (Thornbory and Farley, 2007).
Akaur, A. and Medury, Y. (2010) Impact of the internet on teenagers‟ influence on family
purchases, YOUNG CONSUMERS, 12(1), 27-38
Shim, J. K., & Siegel, J. G. (2009). Budgeting Basics and Beyond. Hoboken, N.J.: Wiley.
Sneyd, K.P. & Rowley, J. (2004). Linking strategic objectives and operational performance: an
action research-based exploration. Measuring Business Excellence, 8 (3), 42-51.
Susman, G. I. (2007). Small and medium-sized enterprises and the global economy. Cheltenham,
UK: Edward Elgar.
Szwarc, P. (2005). Researching customer satisfaction & loyalty: how to find out what people
really think. London: Kogan Page Publishers.
Thornbory, G., & Farley, L. (2007). Budget basics. Occupational Health, 59(8), 20-21.