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Take the Wheel
Take the Wheel: Get the Best Car Deal
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Our Slogan – “Enjoy the Ride”
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Dynamic – Marketing Team
Working together as a team to achieve our goal.
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Carpenters MotorsMarketing Team
Shalendra Andrew : Introduction & Situation Analysis
Johnney Singh : Situation Analysis &Marketing Strategy
Shalvindra Narayan : Marketing
Sanjai Singh : Financial Analysis, Monitoring & Evaluation
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Established in 1921 Largest and most respected
automotive dealer. Nissan, Honda, Hyundai, Holden and
Isuzu
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Carpenters Motors Executive Summary
Launch a new low-cost car, the Tata Nano, in Fijian markets. (Proposed Launch date 1st week of January 2012)
Compete with existing companies by offering a vehicle with better amenities while keeping the price affordable.
Target the rapidly growing middle class customers. Target businesses who desire to add low-cost cars to
their current fleets. Objective is to capture between 4 – 6 % of the Fijian
market share with first year sales of 144 cars. Our financial objective is to achieve $0.5 million in
revenue the first year after expense.
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Situation Analysis Where are we now
Performance - Last 3 Years:
2008 Total Units Sold 225 2009 Total Units Sold 208 2010 Total Units Sold 189 2011 Expected Sales 235
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Market Analysis
40%34%
26%
Current Market Share
Carpenters Motors
Asco Motors
Niranjans Automotive
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Increase Market Share by 15% - next 3 years 4% by 2012 5% by 2013 6% by 2014
40% + 15%
34%
26%
Aim: Increase Market Share
Carpenters Motors
Asco Motors
Niranjans Automotive
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9
New Product Tata Nano Car
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About New Product
Tata Nano was founded in 2008 in India Tata is India’s leading vehicle maker. Size and buying power of middle class is rapidly
increasing, but price still remains the main driver when purchasing a vehicle.
Market with their recent introduction of the Tata Nano in Fiji . . . a sub-compact car costing appox. Fjd $9,290.00 (inclusive of Tax) Sold at approx. Fjd $14,000.00
Carpenters will be targeting customers who may want a low-cost car that is a notch above the Tata Nano.
We also plan to offer optional features that are highly valued by potential customers.
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World’s Cheapest Car- “Tata Nano” - the people’s car
I observed families riding on two-wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby.
It led me to wonder for such a car which is safe & affordable to any middle class family.
Mr. Ratan Tata
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Specifications of Tata Nano.
• Cheapest car in the world.
• 4-door car that can seat 4 - 5 passengers.
• 33-hp (horse power) car with a 624 cc engine.
• Provide a mileage of 23 km/litre.
• Have 2 variants - a Standard and two Deluxe (Air Conditioned) versions.
• No power steering.
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Design Engine
Fuel efficiency. Safety and comfort
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What makes it so cheap !
Uses plastics and adhesives rather than welding. Uses inexpensive polymers instead of a full metal-body. No AC, no power steering and no power windows. Boot does not open - rear seats can be folded down to
access the boot space. Single windscreen wiper instead of the usual pair. Door opening lever was simplified. 3 nuts on the wheels instead of the statutory 4 nuts. 1 side view mirror
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Market Summary
Carpenters market :
Consists of customers who are looking for a low-cost car but want something a little better than what the price leader offers.
Consists of customers looking for options that allow them to customize their vehicle to some degree.
To add low-cost cars to their fleets and concentrating on filling all orders in a timely manner.
Intends to differentiate ourselves by offering options above and beyond the norm . . . options such as sunroofs, air bags and MP3 players.
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Target Market
Targeted SegmentTargeted Segment Customer NeedCustomer NeedCorresponding Corresponding Feature/BenefitFeature/Benefit
Middle Class Middle Class
(Teachers and Retired)(Teachers and Retired)
SafetySafety SpaceSpace
Airbags, tubeless tiresAirbags, tubeless tires Seating for 5, large trunk Seating for 5, large trunk spacespace
Young Middle ClassYoung Middle Class
(Tertiary Students)(Tertiary Students)
To be in styleTo be in style Network with tech toysNetwork with tech toys
Spoiler, sunroof, multiple Spoiler, sunroof, multiple color schemescolor schemes MP3 playerMP3 player
BusinessBusiness SafetySafety Desirable Rental CarDesirable Rental Car Fuel EfficientFuel Efficient
Airbags, tubeless tiresAirbags, tubeless tires Spoiler, sunroofSpoiler, sunroof High kpl, LPG, CNG High kpl, LPG, CNG optionsoptions
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Market Trends
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Johnny Singh
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Marketing Strategy
Mission StatementProvides a unique car buying
experience.Focus on customer satisfaction first.
Provide the customer with an enjoyable, honest service by
satisfying individual customers practical transportation needs with a
quality product.
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Keys to Success
Team of experienced professionals. Secure an excellent high-traffic location. Establish a network of suppliers - highest
reliability and quality, at a competitive price. Customer satisfaction - important values,
honor and integrity. Create high morale by rewarding employee
success with monetary compensation.
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Marketing Objectives
Creating demand Competitive advantage is low fuel consumption
23Km/Litre Cheapest brand new car by far in Fiji Focus on customers Needs & Wants Offer variety of options To provide a “Car 4 All”, which is affordable To capture between 4 and 6% of the Fijian market. First year sales of 144 cars. Second (288) or third year (576) - to enter the
markets in Island Countries in the South Pacific. Add value to our current product - upgrade
product
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Financial Objectives
Achieve approximately $0.5 million in revenue the first year and to keep losses to a minimum.
Net Profit of $3.2 million by 2014 (Higher return on invested capital)
Increase Market Share by 15% (Growth in earning) in 3 years time. (Actual Share calculated by marketing team was 20%)
At Fjd $14,000 the Tata Nano would still be far cheaper than any compact vehicle in these markets.
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Target Markets
Primary Consumer Market: 4-person family who cannot afford a car
today. Secondary Consumer Market: Consumer who may have already purchased
their first car and is looking for a similar low-cost car.
Primary Business Market: Sales Executives, Wholesale and retail
companies & Rental car companies in Fiji.
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Market Positioning
5 Branches are located in: Suva, Raiwaqa, Namaka Nadi and Lautoka in Viti Levu , Labasa in
Vanua Levu. Our reputation Being the Industry Leader Efficiency in Service
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Marketing Mix & Strategy – the 4 P’s
Product: Nissan, Honda, Hyundai, Holden and Isuzu. Price: Varies on model of vehicle, but usually more expensive or the same as their Toyota counterparts.Tata Nano $13,000.00 to $15,000.00PlaceAvailable in Carpenter Motors – Lautoka , Nadi, Suva, RaiwaqaLabasa.PromotionUses print, TV ads, Media, Radio & Websites
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Marketing Strategies
Our marketing team will strategize cost effectively as follows: Nano news in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news
on TV, Online Nano games, Nano pop-ups on major websites and Nano conversation on Facebook and blog spaces
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Promotional Tag line.
‘Have Fun, Pay Less, get more with Tata Nano’
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Online Marketing.
Website: www.carpenters.com
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Social Media
YouTube
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Print media.
The grand launching ceremony The grand launching ceremony of Tata Nano will covered by all of Tata Nano will covered by all kind of media personal and kind of media personal and some famous personal.some famous personal.
International motor show at International motor show at Geneva where Mr. Tata shows Geneva where Mr. Tata shows the Nano in front of the Nano in front of international media.international media.
Business tycoon like Mr. Tata Business tycoon like Mr. Tata when delivered the first Nano to when delivered the first Nano to a comman person, itself it makes a comman person, itself it makes a big news.a big news.
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Word of Mouth / Pamphlets
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Billboard advertisementsalong main street
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Direct mail
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More TVcommercials
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Shalvin Narayan
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SWOT Analysis of Carpenters
MotorsStrengths Skilled & Experienced Staff Wide geographic presence Strong brand image based on quality, environmental
friendly, customized range. Strong portfolio of quality Cars and is the Industry
leader. Targets surrounding community Financially secured Excellent penetration in key markets (Fiji ,PNG (Baroco
Motors) & Vanuatu – Carpenter Motors) Provides incentives for employees – award is given to
employees demonstrating high personal commitment to their customers and community.
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SWOT cont’d
Weakness
Political Instability Product recall Declining operation margin Declining share market in the sector
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SWOT Cont’d
Opportunities Large growth potential Increased SUV’s (Sports Utility Vehicle ) Market Rising Demand for Hybrid Vehicles Innovation Increasing demand for fuel efficient
Threats Current Economy climate Intense competition Shifts in the exchange rates Increase in Government tarrifs
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Competition Analysis
Competitive Comparison Quality inventory Competitive price to uncompetitive price as our
price for brand new car is low. Highly- experienced staff Efficient after sales service
Main Competitors Asco Motor, Niranjan Autoport,
Others Pala’s Autoport, Chanel Motors & Automart Limited.
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Product Offering – Stages of life cycle
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Level of Customer Satisfaction
Extremely High Excellent Service - Sales satisfaction Product quality Vehicle performance and design After-sales service Brand image Cost-of-ownership Loyalty
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Marketing Research
Conduct surveys that will aid us in recognizing the consumer’s desires and needs from a low-cost car.
Plan on forming focus groups that will help push our designers in a specific direction regarding options and amenities for the car.
Conduct brand awareness surveys that will help us measure the effectiveness of our marketing mix.
Conduct customer satisfaction surveys that will enable us to make adjustments to our product as we go.
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TransportDistribution of Vehicles Registered in
Fiji[As at 31 December as per Fiji Bureau of Statistics
report]
Period 2007 2008 2009 2010
Private Cars 82,912 85,186 87,249 89,422
Taxis 5,113 5,153 5,331 5,440
Rental and Hire Cabs
6,362 6,519 6,705 6,991
Goods Vehicles*
42,112 42,677 43,103 43,722
Buses 2,213 2,244 2,265 2,279
Tractors 5,893 5,983 6,048 6,161
Motor Cycles 4,917 5,013 5,043 5,127
All Other Vehicles**
7,186 7,497 7,736 7,943
Total 156,708 160,272 163,480 167,085
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Marketing TeamsControls - Implementation
Developed routine audits that will monitor product quality.
Surveys to measure customer satisfaction.
Reporting system - to track maintenance issues with our vehicles.
Closely track monthly sales and expenses.
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Sanjai Singh
Financial Analysis, Monitoring &
Evaluation
Take the WheelCash Flow Budgets – Inflow &
OutflowPro Forma Cash Flow 2012 2013 2014Income Year 1 Year 2 Year 3From Carpenters Motors
$1000,000.00 $1,000,000.00 $0
Cash Sales $2,016,000.00 $4,032,000.00 $8,064,000.00Total Sales $3,016,000.00 $5032,000.00 $8,064,000.00Expenditures Year 1 Year 2 Year 3Expenditures from Operations
$ 50,000.00 $100,000.00 $125,000.00
Sales & Marketing ExpenseslAdvertising/Promotion $ 100,000.00 $200,000.00 $100,000.00Web Page Maintenance $ 20,000.00 $ 15,000,00 $ 10,000.00Vehicle Purchase $ 1338,000.00 $2,657,000.00 $5,351,000.00Marketing Expenses $ 100,000.00 $320,000.00 $145,000.00
$1000,000.00 1,000,000.00Net Cash Flow $508,000.00 $1,740,000.00 $2,333,000.00
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Sales Forecast by Month
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Sales Forecast by year
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(– based on every quarter)
$325 x 4 = $1.3m $415 x 4 = $1.6m $605 x 4 = $2.4m
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Key Milestones Reached
Leader in the Industry – enjoys substantial Market Share of 40%
Branches are located in Suva, Raiwaqa, Namaka, Lautoka, Ba in Viti Levu and in Labasa and Savusavu in Vanua Levu.
Has over 500 - experienced staff Staff are well trained & its engineers are
extensively trained both locally and overseas, particularly in New Zealand and Japan.
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Carpenters MotorsControls – Marketing Organization
The chief marketing officer is responsible for all marketing related activities. See the organizational chart below for the corporate
marketing structure. We have outsourced much of our frontline marketing operations to Market Tata Nano in order to achieve
better results and cost savings.
Chief Marketing Officer
Dir. of Marketing
Communications
Dir. of Sales Dir. of Marketing Strategy
Dir. of Customer Service
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Contingency Planning s
Restructure (Cost Cutting)
Reduce Staff
Concentrate on existing product
Add Value to our Product & Service
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Risk Analysis
Political Situation New product entering the
market Failure to market new product Government Regulations Train staff - for new Product
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What’s the best car deal?
Fits your needs Fits your budget You control the process - not pressured Priced a little over dealer’s true new - car
cost, or Priced at reasonable - new or used-car
price
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Questions ???
Nano a car of
the future.
