Marketing Plan
Section 1: Executive Summary
Revmi Technologies Inc was incorporated on 5th February, 2010 to carry out the business of designing, developing and marketing advanced automobile technologies in the United States of America. The target market for the innovative products is the rich and super rich members of society since these products are aimed at enhancing automobile comfort and security of users and prevent car accidents. The business idea was conceived after research findings from a research study done by Prof. Sebahatin Blunt indicated that the largest corporations in USA are owned and controlled by a small number of wealthy entrepreneurs compared to the rest of the American population. In addition the research found that these wealthy individuals make decisions that determine the quality and quantity of food on the table of millions of American families and their decisions also generate tax revenues that fund important government projects. In other words this special class of Americans controls a huge part of the economy and should therefore be protected and accorded the best comfort possible to make them generate even better ideas for the future growth of the American economy. Professor Blunt found that the loss of one or more of these top business leaders cost their companies a lot of money while seeking for suitable replacements and most found it difficult to find someone with similar ideas and vision. The founders of the company are Prof. Sebahatin Blunt & Dr. Menzies Macadam and are both renowned scholars having written many articles on motor vehicle safety and comfort features. The two entrepreneurs, who are both American citizens, met in a conference in Japan organized by major motor vehicle manufacturers to discuss recent developments in motor vehicle safety and struck a friendship. The company’s flagship product is a Smart Rear View Mirror which is revolutionary in many ways. The mission of the company is to enhance the safety of motorists by providing smart rear view mirrors that improve the safety of motorists while driving on American roads.
Product description
The flagship product for Revmi Technologies Inc is a Smart Rear View Mirror. The mirror will eliminate drivers “blind spots” that are dreaded by drivers’ especially on busy highways and which have been a major cause of accidents on many roads in America. With continued growth in the economy, many Americans own cars which lead to a major nightmare on roads as drivers try to change lanes especially on roads with many lanes. The smart rearview mirror is aimed at eliminating blind spots thereby making it easier for drivers to change lanes without the danger of being hit by vehicles at the rear and which are moving at higher speeds. The 16-inch mirror will eliminate drivers’ blind spots by providing a 180- degree view of vehicles following at the rear of a car. Current standard rear view mirrors provide about 52-degrees view which create large driver blind spots. The mirror size is also designed to reduce headlight glare by over 50% and enables drivers to see adjacent vehicles until they are visible in their peripheral vision. The mirror will provide a distortion-free-reflection across a highway with as many as five lanes. The mirror weighing 10 ounces only will be attached easily by clamping on the existing mirror in the vehicle. The mirror is developed with a special 4:1 aspect ratio Liquid Crystal Display (LCD) which is fitted inside the mirror and linked to a 6.2-megapixel camera fitted at the rear window glass of the luxury vehicle. At the touch of a switch the images taken by the camera will be viewed in a flash on the mirror which will convert to a screen in a row. The camera will take large clear pictures and will be invisible to rear car drivers. The camera will take pictures at the pressing of a switch fitted on the car steering wheel. This will enable the driver to take a picture of a suspicious car or object in the car’s rear and display it on the mirror. This will enable him to inform the police if he deems that the security of the car and its occupants are in danger. At the touch of a switch fitted on the steering wheel the screen will revert to a mirror and continue providing a 180 degree view of the vehicles on the rear on the vehicle. Viewing of pictures will be timed that it will take a very short time to ensure it does not deter the driver’s view of the rear of his vehicle. The pictures will also be sending automatically to an email address for viewing at a time convenient to the owner. A picture of the mirror fitted in a vehicle is shown here below.
The smart rearview mirror enables a driver, without turning his or her head, to continuously monitor adjacent vehicles when changing lanes or merging lanes as it provides a 180 degree panoramic view. The color will be customized according to the desires of the buyer and /or designed to fit well with the main color of the car. Packaging of the product will be designed in such a way that it provides protection in shipping and storage. The outer cover will be made of heavy gauge plastics which will be thermoformed with varying degrees of rigidity to suit the needs of shipping, storage and the time it will take on the shape before being purchased. The packaging will be designed to securely protect the mirror while shipping or movement across the country. The packaging will be as per the picture below
The plastic casing will be thermoformed with varying degrees of rigidity to ensure that it is hard enough to withstand rough handling, accidental banging on hard surfaces and/or dropping on the hard floor. The transparent material will enable customers to view the product while inside he packaging material to avoid repeated touching as that may damage the electronic equipment and camera. The product will be labeled using the most modern labeling style that will enhance the company product’s image in the market.
Section 2: targeting customers
The target customers for the Smart rearview mirror are the rich and the super rich in USA. The reason why this is the ideal market segment is because the product is not necessarily a necessity for motorists but somewhat a luxury to have. Many motorists can still use standard rear view mirrors that come fitted in many ordinary vehicles to drive to their destinations (Fripp, 2011). The smart rearview mirror is targeting those consumers who are particularly sensitive to their personal security while on roads and those who are likely to be targets of extortionists, criminal gangs, blackmailers and kidnappers due to their status in society and wealth they control. This category is mainly made up of the rich and super rich. According to Forbes magazine the net worth of the richest Americans in 2013 was $2.29 trillion. By conservative estimates close to 10.2 % of all Americans as at 2012 were millions and the number keeps on rising (http://www.forbes.com/forbs-400/). This means that among every 10 American cars on the road at least one is a millionaire. The target market is composed of this class of Americans; the millionaires, multimillionaires and billionaires. This is the class of people who could be persuaded to purchase the revolutionary Smart rearview mirror (Fripp, 2011).
Demographic profile
Demographic profile is used to describe the market segment that the company will target. The demographic profile will determine where advertising will be done and when to achieve maximum impact and achieve sales targets (Hubbuch, 2013). The average age of the targeted customers will literary cut across all ages but will mostly be concentrated between the ages of 35 to over 80 years old. This is the age group that has risen to the pinnacle of their careers and control substantial wealth. The gender of the target market is both male and female and is mostly those who own their own homes and most are chauffeur driven. The target market is quite mobile and is found in all major towns of America. The targeted customers are educated and they enjoy above average incomes in a year. They literary own the prime land and property in the whole of America (Shi, 2011).
Psychographic profile
Psychographic profile of the target customers will assist the company to better market to the target market. Psychographic profile of customers refer to their lifestyles and looks into the interests, activities and opinions of the target customers. The information will be used to design effective advertising strategies that will ensure the target market is reached. Most of the targeted customers control huge economic resources and most would want to give back to the society. Most of these customers like patronizing exclusive clubs and spots. They also consume fine things that life can offer (Hubbuch, 2013). They are sensitive to changes in technology, lifestyle and security threats. They are well informed, knowledgeable and have an opinion on major issue in the world. They influence government policy and have friends in government. They are likely to join politics at one point in their life and therefore their public image is of paramount importance. Knowing the psychographic details of customers will help the company to design targeted advertising to reach customers who might be interested in purchasing the company’s flagship product (Hubbuch, 2013).
PROFESSION
The targeted customers are found in all fields of human endeavor. They lead flagship companies and institutions in banking, social sector, healthcare, entertainment, tourism, education, security etc (Hubbuch, 2013). Most of the targeted customers are the leaders in their industries and make strategic decisions that influence the institutions that they lead. The targeted customers hold leadership positions such as those of chief executive officers, chairmen of boards, owners of companies, directors, chief security advisors, leading scholars and eminent personalities (Hubbuch, 2013).
geographic LOCATION
The targeted customers are located in each and every bustling town and city in America. They are to be found in exclusive spots and clubs. They frequent high end entertainment spots and live in exclusive estates. They own prime real estate properties and live in high class estates exclusively populated by the rich and influential in society (Hubbuch, 2013).
Wants and needs
With increase in terrorism threats and general rise in crime in many states the rich feel particularly targeted. There is a general rise in the number of kidnappings and some are undertaken on the roads. The rich and super rich are generally worried at what would happen to their wealth if something was to happen to them. They are concerned about the security and safety of their loved ones when they leave their houses (Hubbuch, 2013). Since most of their homes and offices are secured by top of the range security systems, their main worry is how to enhance their safety while on the roads. The smart view mirror will meet this need as it will ensure that they monitor every vehicle that will be following them and even take pictures of the occupants and sent to the police if they feel their security is at risk. Products are generally aimed at meeting needs and the need in this case is safety and security while driving on major highways and roads (Hubbuch, 2013).
Section 3: Unique Selling Proposition
Unique Selling Proposition (USP) describes a unique message about a company versus the competition which is used over and over again in promotions, advertising and marketing communication. The Unique Selling Proposition will assist the company to focus on what its business is all about (Stimmel, 2007). The unique selling proposition for Revmi Technologies Inc smart rearview mirror includes the fact that the mirror system will be sold through online methods. The company will sell the mirror through online retailing methods. Clients will be able to order online and the product will be delivered by the company distribution vans at their door step using the address they provide. The company will also partner with large online supermarket chains such as Amazon.com to sell its products. The next selling proposition will be the degree of road safety and security that the rearview mirror system will offer to users. This will be a major USP since the rich are constantly looking for ways to enhance their security and safety while on the roads (Merritt, 2011).
marketing objectives
The main marketing objective of the company will include attaining a market share by 30% in the target market and grow revenues by 30% each year. To do this the company will target the American citizens who have millions or billions in their possession. The company will sell a product that will enhance the safety of this special class of people and which will enable them to identify suspicious vehicles and people who may be trailing them and thus provide them with an opportunity to inform the authorities. The secondary research to establish the availability of an adequate market was done through internet based sources. References of the articles are provided in the reference section of this report (Hubbuch, 2013).
Section 4: Pricing and Distribution Strategy
strengths, weaknesses, opportunties and threats (SWOT)
Strength, Weaknesses, Opportunities and Strengths (SWOT) analysis is one of the tools that organizations use to create a competitive advantage. Revmi Technologies Inc used SWOT analysis to position itself in the target market (http://www.mindtools.com/pages/article/newTMC_05.htm ).
Strengths
Revmi Technologies Inc strengths include the fact that it has a well established distribution network and strategy that it can leverage to grow revenues. The next strength is that it has patented its technology which will enable it to generate competitive advantage. The next strength is that it has built a good reputation among international rating agencies that will enable it to secure funds to expand from financial institutions. The other strength is that it has an experienced and talented workforce and is managed by professional managers with a passion and vision for the business (Jupesta, Harayama &Parayil, 2011).
Weaknesses
One of the weaknesses of the company is that it is still young in the business and therefore has not built adequate switching barriers to ensure it retains its clients (Haider, 2013). The other weakness is that it has not built its own distribution channels and will leverage established supermarket chains who may not give its products special focus (Jupesta, Harayama &Parayil, 2011).
Opportunities
The major opportunity is that the company is poised to reap from increase in wealth of the rich who will definitely look for ways to enhance their safety and security. It has been found that as the economy continues to pull itself from the recession the major beneficiaries are the rich. The next opportunity is that the company will easily attract the attention of major security organization such as the police, the armed forces and spy agencies which will offer a very large market for the company to meet. The other opportunity is in using its dynamic and experienced work force to develop winning strategies (Hubbuch, 2013).
Threats
The main threat that the company faces is intense rivalry that is likely to follow as a result of the possible success of the company in the industry. The other threat would be the slow pace of the product uptake. Previous entrants into the sector performed poorly and made many customers doubt similar products. Some previous entrants produced rear view mirrors which were too blurred by rear vehicles headlights at night whereas cameras used previously were too small to take useful pictures. It will take a while to make substantial sales but when that happens the company will grow very fast especially due to word of mouth. The company will use its strengths to overcome its weaknesses and take up emerging opportunities while at the same time militating against threats ((Jupesta, Harayama &Parayil, 2011; Haider, 2013).
supply-chain and operational system
The company will use the just in time inventory management plan in its supply-chain. This will ensure that it does not hold a lot of funds in its inventory that may affect other important functions that the company will be undertaking. The company will use value chain analysis to ensure only activities that add value are actually implemented. It will ensure lean synchronization is upheld to eliminate wastage in its operational system. The company will use a direct channel through its online distribution platform (Hubbuch, 2013). In this channel, customers will have an opportunity to place an order in the company’s website after which the product will be delivered directly to the registered address of the customer. The company will also use indirect distribution using renowned distribution channels such as Amazon.com. The company in this case will partner with the distribution companies to sell its product through their channels. The company will manufacture its flagship product from its factory in New York. It will set up distribution stores in major towns in USA from which it will supply customers in the town and surrounding environs (Hubbuch, 2013).
pricing strategy
Pricing strategy is the process of setting objectives, determining the available flexibility, developing strategies, setting prices and engaging in implementation and control. Pricing is a very important marketing mix variable as it contributes directly to the profitability of the firm. Price will also be used to enhance the image and quality of the product as it is argued that price and the quality of a product are directly related. Price decisions can impede or enhance the marketing strategy. The pricing objectives will consistent with other marketing mix variables. The pricing decisions will however ensure the prices set exceed the average unit costs (Febrianti &Ariffin, 2013). The company will use psychological pricing strategy to create customer price perceptions to have a special appeal to the target market. The company will deliberately set high prices to imply high quality. The target market is not people who are likely to take too much interest on price as their concern will be the quality of the product. If the company prices it too low then the product will be viewed as of inferior quality. The factors that will influence the company’s pricing decisions include; cost of production, perceived quality of the product, the kind of consumers, the government, channel members and competition (Barnett, 2011; Klapper & Oetzel, 2011).
Section 5: Distribution Plan and Promotions Strategy
distribution strategy
Distribution relates to “place”, one of the Ps of marketing. Distribution creates a link between the manufacturer and the customer. Good distribution systems are important in ensuring that customers get the right products at the right time. Distribution logistics is very wide and covers areas such as retailing and retail management, stores management, selection of warehouse location, and transportation. The company will use direct and indirect channel of distribution. Through its own website the company will receive orders and transport the products to customers after receiving a confirmed order. The company will also use indirect channels such as Amazon.com etc which are renowned throughout the country. The target customers will be located all throughout the country and online distribution whereby customers are sold to directly will be the most ideal. However, due to the fact that the company is relatively new it will partner with large online stores to move its products while at the same time advertise through their websites (Helms & Nixon, 2010).
marketing goals
Promotion is basically the communication component of marketing and marketers use it to communicate to customers about their products. It is often said that one can have a very good product which is marketed at a very competitive price, but it will not attract customers unless it is properly communicated to the customers through promotion. Indeed, the sales philosophy is built on the premise that customers will not just buy a product because it is there. They need to be persuaded to buy. They need to be reminded to buy and so on (Hubbuch, 2013). The promotion mix is comprised of advertising, personal selling, sales promotion and publicity. The company will use the unique selling point as the basis for designing the marketing message. The message will be carried in all forms of promotional activities. The main marketing goals for promotions will be to create a need for this type of product and once that is created, market the product as the one best suited to meet the need (Hubbuch, 2013). This need can be said to be latent which requires the company to really convince the target market that it is very important that they urgently address it. The company will offer money back guarantees if the product fails and will also offer a long warranty period in which the company will replace a defective product at its own cost. The company will carry out intensive promotion activities through television, print and leading journals that the rich are known to read (Kanagal, 2013).
action steps (conclusion)
The action steps are as follows;
| No | Action | Department | Officer responsible | Proposed completion date |
| 1. | Hire qualified personnel | Human resource | Human resource manager | 15th, December 2014 |
| 2. | Secure funding | Finance | Finance Manager | 30th October, 2014 |
| 3. | Rent factory premises and acquire production machines | Production | Production/factory Manager | 15th January 2014 |
| 4. | Design and approve the packaging and labeling | Marketing | Marketing manager | 31st January, 2014 |
| 5. | Set price for the product | Finance/ marketing | Finance and Marketing manager | 31stJnauary 2014 |
| 6. | Design and create website for online distribution | Information Technology (IT) | IT Manager | 5th February , 2014 |
| 7. | Sign product distribution agreements with large online retailers | Legal | Legal manger | 20th February, 2014 |
| 8. | Set promotion budget | Marketing | Marketing Manager | 28th February, 2014 |
| 9. | Roll out promotion activities and distribution | Marketing | Marketing Manager | 31st March, 2014 |
Reference list (APA format)
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