Mujeeb => .NET

1. Terms of Reference

The marketing plan is critically evaluating the use of marketing mix and recommending future marketing strategy for a vehicle finance business, Simplan Ltd. The company provides both businesses and individuals a cost effective solution to vehicle finance and leasing. The company is operating for the last 3 years, head office based in London. Simplan Ltd was providing vehicle sales and accident claims services prier to start vehicle leasing services (simplan, 2006a).

The purpose of marketing plan is to create awareness for Simplan Ltd, which aims to provide state-of-the-art package of vehicle leasing services to businesses and individual through direct contact with the customer and via the internet. It will look into the ways to increase revenue and customer base.

The marketing plan will be part of overall business plan. It will be a living guide to start and build customer relationships for life, will set goals, strategies and tactics to use to achieve overall company objectives.

2. Executive Summary

The major findings and recommendations of marketing plans are:

· Simplan is offering for cost effective, simple and planned solutions to small-to-medium size businesses.
· The customer will see Simplan a friendly approachable team with high quality and state-of-the-art services.
· The first phase to introduce services to already customers base using compensation claim services and to reach out to a large audience.
· Customers are asset to company, there is no business without them and for Simplan they are referral to potential new customer and tend to buy more services over the time.
· Simplan need to emphasis on quality of services as a competitive advantage, so as to stand out in the crowed, and meet the customer expectations.
· Mass marketing is out, and customer-cantered, one to one marketing is in. Today, customer are jaded; they just don’t respond to traditional mass marketing techniques, that’s what marketing plan is looking in.
· The promotion needs to be well thought-out and convey the correct image and feeling about Simplan psychologically.
· Main Message: A Great Car for an Unusually Great Price with Exceptional Support, Conveying Emotions: Happiness, Eagerness, Excitement, Confidence, Satisfaction
· Be able to convey the message of any make, any model. Be consistent and cover a wide range of the target market
· Use of humour to convey your message is one of effective way. It transfer a certain emotion, and can be instilled in the mind of the target market for a long time.
· Advertising – Advert in taxi cabs, brochures and general marketing materials such as business cards. Become listed in popular directories both in print and on the web.
· Sales Promotion –Target personal or business buyer with a sales promotion. Can be used for existing customers.
· Direct Marketing – Brochures in car lots, catalogues of a few cars we can offer – possibly keeping the finance information and the car catalogue separate. Undecided on that.


3. Business Mission
Simplan is a vehicle finance broker with a difference; It don’t just offer excellent customer service, any vehicle at a competitive rate, a free accident support service, full company support, friendly approachable staff but also plethora of finance methods to suit any client (simplan, 2006a).

Simplan aims to offer a comprehensive package of solutions for businesses. It provides risk assessment, vehicle branding and accident management amongst other fleet management services.

It also offer great deals for individuals that allow them to free up your capital and drive a new car. Simplan business package, vehicle services aimed at making business more profitable and efficient.

Business Mission
· Provide the best 'all - round' vehicle leasing service.
· Listen and respond constructively to our clients views.
· Create one point of contact with dedicated account managers for all our clients.
· To win business, keep business and be recommended by each customer.
· Aim to do all this by creating a simple system, planned with every detail

Why Simplan?
· Offer very competitive quotes;
· Impartial advice -acquire the vehicle best suited to your needs.
· A choice of finance methods -giving you the flexibility you need from a reliable business partner.
· Free accident support services -keeping you mobile when things go wrong
· Dedicate account managers -friendly staff there to attend your requirements
· Range of services includes

Services Offered
Variety of services are offered for different businesses and personal requirement (details, Appendix 1). Main services are listed here:
Source: (simplan, 2006b)

4. External Marketing Audit

Macro Environment
Simplan Ltd aims provision of providing vehicle leasing services through out United Kingdom using state-of-the-art technologies. This will be achieved with online portal with increase portfolio of services to appeal the greater volume of customers, using technology for latest customer relationships management.

Economic
The automotive leasing market will change in the coming years at a rate which has never previously been experienced. Most of the industry leaders are using technology to gain competitive advantage (Key Note, 2005a).

Socio-Cultural
Commuting has become an inherent part of British life, as more and more people seek to live in satellite towns and suburbs outside the UK’s major cities in order to improve their quality of lives and those of their children and commute to work place. There is demand of vehicle leasing services (Key Note, 2005b).

Technological
Using Internet, as competitive advantage to provide services will bring a harsh natural selection to outdated business models; it will intensify competition; it facilitates closer relationships between vendor and consumer and allows consumers to compare and contrast vendors with little effort. Beyond the opportunities for improved relationships and services with existing clients, the Internet will allow the Simplan Ltd to increase the audience for their competencies.

Ecological
Vehicle leasing industry in UK have had a mostly positive growth for the last couple of year. Industry analysis show that since 2002 the percent increase in pre-tax profits were 89.1% Global (Business Insights, 2005a), and average percent increase in turnover was 15.5 as in 2004.

Micro Environment

The Market – Customer Analysis

Who: The target customer is someone (male or female) who is looking to hire/own a new vehicle, used vehicle or is a business looking to hire/own a vehicle or fleet of vehicles. They could possibly be looking for an entire motoring package – such as Fleet Management and Vehicle Finance together.

What: The target customers want/need a new vehicle or range of vehicles. They can be looking for any make or model, with a range of financing options available.

Where: They may be at work, home or in town etc. They will more than likely have recently been to, or plan to go to, a car lot or showroom. It could be an idea to partner up with some dealerships which would increase revenue for both parties.

How: The prospective customer would probably want the vehicle with the least hassle, cost and stress possible. Most would want it as soon as possible, also. They will most likely want the situation dealt with professionally and swiftly with the least complications possible.

Competitor Analysis
Local market competitors include Custom Fleet, Lombard and LeasePlan.

Top Ten Companies by Turnover 2003/04
S. No
Vehicle Leasing Companies
1. Arval PHH Holdings
2. Avis Europe PLC
3. Lex Vehicle Leasing Holdings
4. Inula Holding UK
5. Northgate PLC
6. Daimlerchrysler Services UK
7. Lex Transfleet
8. Vanguard Rental (UK)
9. BT Fleet
10. GE Capital TLS

Source: ICC Juniper 2006

New Entrants
The automotive industry is currently in a state of flux. The conditions that are allowing new entrants into the car retail and fleet markets are those which allow established companies to expand from their traditional customer base. The Internet, despite offering great potential for the feet sector, will also offer an opportunity for new entrants to enter the market.

5. Internal Marketing Audit

To compose the message, we need to know the best thing about, or the need vehicle finance satisfies – or even Simplan UK in particular! This is crucial in delivering a well composed, effective message.

With fleet management, you have peace of mind about the status of your vehicles.

If the specific plan is chosen, you can trade it in for a newer model at the end, much like a mobile phone.
The best thing about vehicle finance / Simplan
Vehicle finance makes it much easier to have a high-class vehicle at a good price/rate.
Using vehicle leasing to finance your new car is an easy way to spread the cost of ownership.
It’s a very straight-forward process. – No certain stress or worry.

6. SWOT Analysis

Strengths
· Excellent customer support, staff work as a team.
· Established customer base.
· Informative, attractive website.The company accessible through telephone, email or fax 24 hours.

Weaknesses
· Different small sections with different name.
· Lack of marketing or advertising.

Opportunities
· No set leader in the market – no monopoly by one organisation.
· The Internet – a big way to advertise with low cost
. Possible Partnerships with car dealerships.

Threats

· Many other Vehicle Finance companies around (but again, no-one monopolises).
· Local market competitors include Custom Fleet, Lombard and LeasePlan.

7. Marketing Objectives

With planned, innovative and use of technology, Simplan Ltd can progress in terms of revenue and client-base. It should focus attention on the internet as a marketing medium, better customer relationships management and possibly partnerships with industry players and related organisations.

Simplan want to:
· Capture the attention of the right group of potential customers in a credible yet catchy way.
· Educate them about our products and services.
· Influence them to use services.

This will be succeeded with clear, compelling message and with the help of right promotion.

8. Core Strategy

Target Market
Personal and business – individuals and companies looking to lease, hire or purchase probably around 1-5 vehicles (but not limited to 5 by any means). They would have good credit history, and also must have a job.

Simplan UK can use a mix of these to heighten the odds of reaching the target market effectively. The primary elements of a promotional mix are Advertising, Public Relations, Sales Promotion, Direct Marketing and Personal Selling.

Marketing Mix Selection
The chosen elements need to show difference to other companies, as this service is different from other companies.
They need to be able to convey the message of any make, any model.
All the chosen elements need to explain our principles – such as a high-standard of customer service and making it a simple process.
The effect of all elements needs to be fresh, original and distinctive – conveying empathetic emotions such as humour or “fed up with xyz happening”.
All elements need to be consistent and cover a wide range of the target market – or as much as possible.
The mix has to have the target market in mind at all times – adjust to their predicted attitudes and behaviours also.9. Marketing Mix Decisions

Product
Simplan aims to offer a comprehensive package of solutions for businesses and individual. It provides vehicle leasing for all brand and models, fleet management, new and used car sales. The services will offered with quality, using technology to provide maximum ease for customers.
Type of Car
Lower medium size
Micro/supermini
Small
Sports/coupé
Intermediate size
Executive
4x4
Luxury/prestige
MPV/small MPV


Price
Pricing based on stagesIt is recommended to pricing should be ‘cost-based’, based on adding a profit margin to the cost of services. It need to consider how competitors are pricing and also market demand.

Place
Simplan Ltd services will be provided to anywhere in UK through internet. The services will offered more effectively through franchise and to form alliances. The potential for the fleet community is to utilize these alliances to improve their product portfolios: the Internet will have a significant effect on the ability to offer a pan-national product, the online buyer forecast shows potential for online services.

Promotion
The options available in a promotional mix are Advertising, PR, Sales Promotion, Direct Marketing, Personal Selling and internet. Marketing online have rapidly developed into a new discipline. The tactics required vary as the technology develops and the web as a medium matures.

The one commonly agreed principle is that your marketing strategy should be aiming to “drive traffic to your site” i.e. getting as many people as possible to visit your site. The reason for this is that there is still a “land-rush” mentality on the Internet as new users explore and discover the sites that cater for them.

Customer-Centered Services
Throughout the automotive leasing industry, the drive to rectify this has been spurred by the high level of competition. Automotive companies, including manufacturers and distributor, can no longer be certain of future income growth through customer acquisition, and are instead being forced to re-examine their existing customer bases. Increasingly, the prevailing paradigm is that it makes greater business sense to seek future revenue growth through long-term added-value relationships with existing customers than to spend more money on acquiring new ones.

10. Budget

“Achieving conventional goals. Such as profits and joy, with unconventional methods, such as investing energy instead of money.”
Levinson J. (2005)

It is anticipated that 10% of sales will be spend on marketing activities. It is suggested to spend 10 percent of your marketing budget in talking to everyone, whether or not they match your customer profile. 30 percent of your budget to convince people who match your customer profile. 60 percent of marketing budget should be spend for marketing your current customers.

Employees can be the most cost effective way to transmit marketing message to your prospects and customers.

Online Marketing Budget: One third of online marketing budget should go to designing and posting your website, one-third should go to marketing the site offline and one-third should be devoted to improving and maintaining website, keeping it entertaining and refresh. Remaining truly competitive online is going to cost you twice as much as you think it’s going to cost.

11. Organization and Implementation

Organization have become faster and more flexible, and companies are increasingly aiming their services at specific niches of customers. As a result, the old, tried and true ways of marketing are becoming less and less effective. In their place, advertiser are adopting techniques that are unconventional by traditional standards.

Manager Business Development alongwith team will look after the implementation of plan. Although task can be delegated, but as a matrer of fact, you cant delegate the passion and the vision that you feel for it. To ensure marketing success, management must take command of the marketing process and keep a close eye on it. Planned correctly, and when the effect on the viewer/listener/reader is considered prior to the campaign’s implementation, advertising can be a powerful method to communicate.

The promotion strategy- Implementation

Advertising
Advertising is impersonal and hard to receive feedback from, it is an essential part of the promotional mix for Simplan UK. It introduces the potential customer to the business and can be used to entice them to either ring in or visit the website to find out more. Done properly, it is a powerful tool in my opinion, especially if you manipulate the human longing to know more, to understand

There are several mediums to advertise, TV, Radio, Newspapers, Trade Journals, and of course the internet. But there are also different, less usual ways to advertise a business, such as brochures in the cars of a car lot, or banners on the back of buses.

Sales Promotion
Due to the nature of the business, we obviously cannot just give 10% off of a car in a snap. But if we can come up with something that is affordable, credible and still interesting, then I believe we should deploy it, tied in with the advertising. On the other side of the coin, if a sales promotion is not feasible (at this time), I don’t believe it is an integral part of a marketing campaign and it can be done without. It may be a good idea to offer discounts on other services to existing customers, who know our level of service –this can build customer loyalty.

Public Relations
It may be an idea to do something akin to sponsoring a charity, or fund raising event. It does several things for the company when a potential customer, they are introduced or reminded of the business.

Direct Marketing
It should include email offers, Newsletters and possibly brochures/catalogues are all direct marketing and are all valuable to keeping clients content with their choice to use Simplan UK. Using carefully targeted emails, brochures and leaflets can boost business with current and prospective clients and receives my recommendation for implementation into the campaign.

Personal Selling
Simplan UK already uses this element in accident claim and should also continue to use it as a medium for selling, but keep in mind how the customer may react. Contact with a local taxi firms to advertise inside the cabs is another good idea. Its good idea as people who don’t currently have access to a vehicle but need one, will most likely by using taxis and will therefore see advert. Another area to consider advertising in could be independent car lots. When people are looking for a car they may need a way to finance it.

Online Promotion
Internet advertising campaign consisting of directory listings and registering web address on famous search engine. Using search engine optimisation and pay per clicks promotions, more visitor can be attracted.

Online marketing and branding allows companies to explore the range of marketing and advertising models employed by some of the most innovative international organisations both traditional and Internet-only companies. Simplan UK website and information is registered with number of online business directories and search-engine optimised. It should be the main force behind bringing new business.
Source: Simplan, (2006c)

Print Material
Variety of consistently-designed printed advertising materials is needed so we can use them to effectively let the customer know, build a brand that people recognise and remember easily.

This would include:
Brochures
Printed advert in various sizes
E-Newsletter
Business Cards
Letterheads
Leaflets

12. Action

The adoption of customer relations’ management, closer interaction with both customers and suppliers, through adoption of new technology will be prerequisites for a successful vehicle leasing services for simplan.

The winners in the industry will be those who display innovation. The scope for creativity in the leasing industry will be wide: the formation of alliances, new services for clients, new methods of utilizing the Internet and as well the usual devises to outwit the competition!

The conditions that are allowing new entrants into fleet markets are those which allow old companies to expand from their traditional customer base. The Internet, despite offering great potential for the feet sector, will also offer an opportunity for new entrants to enter the market, and simplan can utilize this opportunity.

The client-facing website has gained the lion’s share of the attention aimed at site design. For these websites to truly harness the potential of the web they must link to the suppliers of the leasing company. This could include vehicle ordering, booking maintenance, viewing contract information, arranging vehicle delivery and disposal, etc. Each of these services, which are integral to the traditional leasing service, need to be offered to the client as they presently are, or over the web.

Read Users' Comments (0)