Makreting Plan Tango by Asad

8/14/2019 Makreting Plan Tango by Asad

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Table of Contents

1. Executive Summary................................................................................. 22.Current Market Situation......................................................................... 3

2.1 Market Summary ..................................................................................2.2 Market Segmentation............................................................................2.3 Market Targeting..................................................................................2.4 Target Markets ....................................................................................2.5 Competition .........................................................................................2.6 Product Performance.............................................................................2.7 Distribution ..........................................................................................

3. Threats & Opportunities...........................................................................3.1 Threats..................................................................................................3.2 Opportunities ......................................................................................

4. Objective & Issues ................................................................................. 54.1 Objectives - Sales, Profit & Market Share...............................................

4.2 Issues.....................................................................................................5. Marketing Strategy ............................................................................... 125.1 Demand Measurement & Forecasting ..................................................5.2 Positioning Strategy...............................................................................5.3 Marketing Mix Strategies.......................................................................6. Action Plan and Implementation........................................................... 137. Marketing Budget ................................................................................. 218. Control.................................................................................................. 40

Annexure

TANGO Marketing Budget ...................................................................... A

References

References ................................................................................................ B


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1.0 Executive Summary

Pakistani Automotive market is on boom due to various positive micro andmacro level signs, and providing hefty earning to existing players. CCIprovides Pakistani auto consumers a flexible auto option i.e. Narrow Car -

TANGO. Although as a very new phenomena TANGO faces nocompetition in Pakistani Auto Market but TANGO may disturb the marketof two products i.e. Small Cars and Motorcycles, thats why we may considerexisting Small Car and Motorcycle manufacturers as a competitors. TANGOTarget market will be lower middle class comprising, junior level managers,shop owners and small business owners.

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2.0 Current Market Situation Analysis

2.1 Market Summary

The automobile sector in Pakistan is on boom; it is growing at an amazing

pace for consecutive third fiscal year. The Japanese, Korean & Europeanauto giants have invested almost $1.5 Billion in Pakistans automotivesection. The local investment in the industry is approximately $ 1.0 Billion upto end of FY0405. Following the brief review of Auto Sector of Pakistan.

Total car and Light commercial vehicle production increased by 37%YOY from 110,844 units in FY04 to 151,565 units in FY05, according todata provided by PAMA.

Car production increased 28% YOY from 98,461 units in FY04 to126,403 units in FY05.

The main drivers of the growth in demand have been lower interest rates,

increases in home remittances, and easier access to car-financing, andconstant model changes that promotes competition.

Based on market consensuses, the demand-supply gap stands atapproximately 40,000 units in spite of the 37% increase in car and LCVproduction.

Duties were reduced on CBUs, while they remained unchanged onCKDs in the

Federal Budget 2004 - 2005. The reduction in duties resulted in anincrease in the level of imports.

In 2004 2005, local car and LCV sales totaled 152,364 units, or 25% ofPakistans total auto sales.

Pakistan Auto Sales 2004-05

67%

4%

21%

1%

7%

Motorcycle

Light Commercial Vehciles

Cars

Trucks & Buses

Tractors

Despite tremendous growth in small car (800-1000CC) car manufacturing,supply failed to slake burgeoning demand and exorbitant prices attractedmuch criticism on the manufacturers.

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Its also witnessed that over the last three years car sales have been driven bythe auto financing, approximately 65% cars are sold under auto financescheme being offered by commercial banks. So we can say that autofinancing drives car sales, its also important to note that the buyers of up to1000 cc cars mostly utilize the facility.

With the rising cost of fuel people are gradually shifting to smaller cars,besides, in a number of households the smaller car is also analternative/second car.

The Commuter Cars Incorporation, USA has realized the huge potential insmall coupe type cars and motorbikes markets in Pakistan, and decide toenter in both market with its one product TANGO, by adopting the productdevelopment strategy.

2.2 Market Segmentation

On top of every thing bulk of the buyers of smaller car are those who arewilling to switch over from second hand cars to new cars. That new carkeeps them away from mechanics for atleast 2-3 years, if being drivenproperly. Secondly, the users of bikes (Small families, routing home-to-office-to-home motorcyclists) who may think towards an affordable and safecar-like convene.

Tango consumers are segmented as per following broader categories

2.3 Market Targeting

Although, we make a TANGO a car for every person, purse and personality.But we have targeted particularly the Lower Middles Class comprising mainlyon junior level managers, small business owners, (Income Group 10,000-20000), who due to high cost of small vehicles and vehicles maintenance hasnot been able to purchase a Car. We are going to address there needs, as theyare fit our objectives and we possess the skills and resources needed tosucceed in the segment.

2.4 Target Market

In the year 2004-05 small Cars production increased 28% over last year butthis was not still able to cater the increasing demand, which far higher thensupply. This difference between demand and supply may continue because ofpositive microeconomic indicators of Pakistan.

The segmentation of TANGO Market, we have done product-wisesegmentation and choose 3 brooders categories as per following pie chart.

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Cherry 0.81 Basic 461,000.00 05%TANGO (Basic) 125,000.00

*Based on4Q0405figures.

In regards to foreign entrants, Volkswagen, Renault and Daimler-Chryslerhave planned to make significant investments in the Pakistani markets.Additionally, Roma Group of Companies has also formed an alliance withChinese Auto-Manufacturers and is planning on beginning operationsshortly. However, it still remains to be seen whether these companies willfollow through with their plans to invest as the new government policieshave made Pakistan a less lucrative investment opportunity.

TANGO is an entirely new product for Pakistan automotive consumer, it

surely opens the new ways of competition with 2 or more broader categoriesof products, as we discuss above the products of automotive market wouldbe hit by TANGO introduction, will be small cars by Price and FuelConsumption and Motorbikes by safety and luxury. In view of aboveschedule, its clearly observed that, in small cars market TANGO has mainlyto compete Revo & Mehran, in term of price.

In motorbikes category there are more then 20 local and foreign marketplayers, but Honda (Supplied by Atlas Honda) is the undisputed marketleader, in all segments of motorbikes markets, from 70s to now. Being amarket leader Honda charged relatively much higher prices and provides

quality product, they positions their bikes CD or Cash Deposit based onquality, as a result Honda motorcycles have much higher resale value.

Other players in the market are Dewan Farooque (Producer of Star),Dawood Yamaha (Producer and marketer of Yamaha), Suzkui Motorcycle(Marketer of Suzuki), Metro (Producer and Marketer of Metro) and PakistanAutomobile (Producer and Marketer of Sohrab).

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Market Share - 800CC Cars

M e h r a n L e 8 0 0 C C

5 5 %

S a n t r o C l u b

2 0 %

C u o r e C I

10 %

C h e v r o l e t

5 %

R e v o 8 0 0 C C

5 %

C h e r r y 0 . 8 1 B a s i c

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The comparison of price between TANGO and competitors and marketshare of competitors are tabulated below:

Product Price in Ruppees Market Share in %age *

Honda 58,000.00 to 75,000.00 60%Star 39,000.00 25%Metro 38,000.00 15%All others 38,000.00 to 45,000.00 10%TANGO (T100) 155,000.00 -

*Based on 4Q0405 figures.

TANGO has to compete local and foreign brands of motorcycles that maybe considered or preferred as relatively cheep then TANGO but the peoplewho preferred and seek safety and luxury of cars will surely switch towardsTANGO as a 1st choice.

TANGO is much, much safer then a motorbike, a family of two having oneor two kids (The Targeted Market Segment of TANGO) can easilyaccommodate, and enjoy their safest rides in TANGO.

2.6 Product Performance

TANGO revolutionary commuter vehicle that combines the speed andagility of a motorcycle with the security and comfort of a luxury car. Tomarket TANGO in Pakistan Commuter Cars Inc. USA has made somemodifications, they change TANGO from commuter vehicle to petrol

running TANGO by seeing high Electricity, Spares and battery maintenanceCost of Electricity charged TANGO. As a commuter (Hybrid) vehicleTANGO uses 4 KWh thats the same amount of electricity used to power a1500-watt portable heater for 2 hour and 40 minutes.

Specifications of TANGO (T100)

Length: 85 (2.57m)Width: 39 (.99m)Height 60 (1.52m)Weight 3000lbs (1364 kg)

Mileage: 25-30miles / Litter (Average)Body Carbon Fiber or fiberglassRoll Cage Chrome moly or mild steel tubingPerformance: Zero to 60mph in about 4 secondsStanding mile in about 12 seconds.

The ability of more Mileage provided by TANGO can out compete smallcars and quick get through in traffic jams ability with its 1-meter width.

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The Commuter Car Inc. doing his part by designing a car that pays for itselfpurely by convenience, time save during journey, and cost saving fromreduced parking fees and fuel consumption, provide luxuries of cars like Air-condition, Heating, Audio (Radio/Tape) etc.

TANGO can carry a reasonable amount of cargo, TANGO consume muchless fuel then a (660CC to 800CC) Car.

2.7 Distribution.

Commuters Car Inc. initially provided CBU (Completely built unit) toPakistani consumers, letter-on to cater the other regional market like SARCCountries, Afghanistan and Central Asian Republics and to meet theincreased demand of Pakistani market the company has a plan of establish aproduction facility in Port Qasim (Bin-Qasim) Export Processing Zone.That plan will be able to conduct 70% production.

To make TANGO easily and readily available, Commuter Inc., has decidedto deliver TANGO in KIT CARS shape, the supplies of KIT CARS will bedirectly be made from USA. These kits will required less then 8 hours of easyassembly, through their manuals a consumer can easily assemble and de-assemble kit into a TANGO or Kit without the help of mechanics.

We present our self as a service oriented company; we prefer CCS (CustomerCommunity Satisfaction) culture and make sure the availability of technicalservices and spare parts through out Pakistan. We believe 3S (Sales, Services& Spare Parts) commitment for which we will build franchised 3S Centres inall major cities except Karachi and Lahore where we maintain our own 3S

network.

We provide warranty facility to the customers (6 months or 6000 KMwarranty) through our 3S Network across Pakistan

3.0 Threats & Opportunities

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3.1 Threats

3.1.1 TANGO is new phenomena for Pakistani bikers. The bikers whouse to enjoy free style, open air & view full ride of Motorbikes, nomatter, who severe or thick the traffic jam they face, they love to

penetrate in it, by zigzagging or putting the bike on footpath or doingsome awful acrobatic stuff, as TANGO is not for adventurism, itprovides a family convene solution, bike lover may stick with theirpassion of adventure, but safety, security and luxury seeking families.

3.1.2 TANGO could not offer side-by-side sitting, it offer a jet cockpitstyle sitting that may be difficult for Pakistani consumers to adjustdown.

3.1.2 There is a general perception that automotive market will declinewith the rising interest rate, but the impact on monthly installment isonly marginal thats why we are assure this may be a very nominal

threat.

3.1.3 All three major auto assemblers are in the process of expanding theircapacities to meet the higher than expected demand, and all will befinancing these projects internally. Given the recent announcementsin the 2005-2006 Budget as well as the amendment to the TradePolicy 2005 - 2006, these expansions could not have come at a worsetime. In the long run, with the level of imports expected to rise byleaps and bounds, the companies will be building up inventory as wellas not operating at full capacity. This will result in downwardpressure on the assemblers margins, mostly due to fixed costs being

higher as they will be spread over a smaller unit base as well as due tolower sales. Those vendors and assemblers that have not yetproceeded with their expansions will be re-thinking their options asexpansions will most definitely lead to lower margins.

3.1.4 Competition is increasing from imports due to Budget 05-06,completion from local assemblers due to constant model changes.

3.2 Opportunities

3.2.1 The existing users of small cars will switch towards TANGO

because, for many urban areas of Pakistan the TANGOconsideredunique in many ways--has the solution for some of the majorproblems urban areas peoples have with automobiles today. Traffichas overcome the current roads system. There are too many 4-passenger cars using an entire lane to transport a single person. Thereis also too much pollution from vehicles.

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3.2.2 Finding space to park in congested cities is difficult and time-consuming. Add in the cost of parking garages and lots or the extrahassle of moving your car and plugging the meter every hour or two,and people will jump to an alternative when it presents itself. Forexample if an executive who earn Rs: 250,000/= per annum, who

bears Rs: 150/= per day as a fuel bill and Rs: 10/= parking fee withhis 800CC car, now he can reduce its daily expenses upto 50% byconsuming less fuel and less space tacking ability of TANG

3.2.3 Every near relative of motorcycle-owner knows the danger behindthe motorcycle ride, they send their love-ones to work or school withfull amount of blessings and the blessings continues till their love-ones safely return to home. What makes a motorcycle a dangerousvehicle, no matter who done the error the motorcyclist will be foundon receiving end. Every year thousands of bikers loose theirprecious lives, body parts in cities of Pakistan. TANGO providesracecars style roll cage design; its low center of gravity and weight

comparable to midsize sedan (800CC Car) make the TANGOextremely safe vehicle. TANGO assures that motorcyclist can enjoylike-wise free and zippy style ride of motorcycle with the safety ofcar.

3.2.4 Pakistan has one of the lowest number of vehicles per capita amongthe developing countries which is around 7 cars per 1000 people &therefore, it offer lot of room for demand growth due to increasedpurchase power and do readily available financing/leasing schemesby financial institutions.

3.2.5 Competitors growth will expected to be slow down in the long termto approximately 8%. This will be caused by the loss of pricing powerdue to the segments becoming more price-competitive. Unit sales willbe slow down due to the variety of cars, both local and imported,available.

3.2.6 In the Federal Budget FY06 GOP has recommended a furtherreduction in CBU (Completely Build Unit) import duties andrationalized engine capacity bands while keeping CKD Dutiesconstant. The Major factor at the heart of the uncertaintysurrounding the local auto industry is the lack of a long-term

industrial policy for the auto assemblers by the Government. Thishas caused uncertainty among the assemblers in regards to theirfuture investments. That can be considered as an opportunity but inlonger term it is a threat.

4.0. Objectives & Issues

4.1 Objectives Sales, Profit and Market Share.

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adopt Product Development Strategy We also use Pull Strategy andspend lot of budget to establish consumer demand through advertisingcampaign.

5.1 Demand Measurement & Forecasting

In the year 2004-05 small car production increased by 28% over last year butthis was not still able to cater to the increasing demand, which far higherthen supply. This difference between demand and supply may continue untilthe presence of positive microeconomic indicators of Pakistan and negativeapproach of car manufacturer. The small cars segments market is forecastedto be remain competitive due to products capacity enhancement of existingauto giants and as well as many internal automakers are interested to entermarket that shows sure, strong growth prospects of Pakistan automotivemarket.

5.2 Positioning Strategy

In that very critical stage, we have considered competitors positioning andhow their products are perceived, the needs and desires of our targetaudiences, the elements of mystique or drama that our product naturally hasabout it. Due to involvement of cretin risk factors, we are neither going formass marketing or niche marketing because our product is not fall into aniche category also due to an automobile producer we are expecting acomplex buying behavior from our target consumer. therefore, we havedetermine a specific positioning, based on a following qualities or benefit ofTANGO.

The Tango is a new concept in personal transportation. It is a 2-passengercar that is no wider than a motorcycle. Like a motorcycle, the seating isarranged in tandem with the driver in front. The rear seat can be used tocarry a passenger, a baby seat, or it can be removed to carry groceries orother goods. The Tango is narrow, but it is a normal height. Thesetogether with its roll cage structure make it a very safe vehicle. The Tango isless likely to tip-over than most vehicles because it uses ballast to achieve alow center of gravity.

The narrow profile of the Tango has car advantages as described above. Thefirst Tangos will be electric so they will reduce pollution as well as reduce

congestion.

So TANGO will be positioned as The Ultra Narrow, Safe andEconomical Car

5.3 Marketing Mix Strategy

5.3.1 Product Strategy

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Our product TANGO (T100) the basic model we are going tointroduce for Pakistani consumers has following packaging valueadditions and warranty features.

o Available in 3 basic colors: Metallic Red, Green & Blue.o

One CBU Unit accompanied by: 1 No. Toolkit (Free) , 2 No.Tires (Free)o 12000-Miles or 1 years (Which come first) Repair & Maintenance

Warranty. (Only at our 3S Network)o Compensated vehicle and personal insurance.o Compensated cost and earliest possible documentation.

5.3.2 Price Strategy

Our pricing strategy are structured and filtrated with current pricingstrategies of competitors, pricing surveys and off course companysinternal cost evaluation process. Our approach towards TANGOpricing is based on competition. Thats why we are not applying anyprice adjustment strategy.

Ex-factory Price Rs: 115,000/=Add Sales Tax Rs: 20,000/=Add: Distributors Margin Rs: 20,000/=Retail (Consumer) Price Rs: 155,000/=

Additional CostsHome Delivery of Vehicles etc.

5.3.3 Place Strategy

The third P thats really referring to distribution in TANGOmarketing plan.

The TANGO is available at our 3S Network Network. Consumerhave to deposit Draft/ Pay Order of Retail price at 3S Network onthe name of Commuter Cars Corporation Pakistan:

o CUSTOMER understands that the actual selling price include taxor delivery. The deposit is fully refundable and held in an escrow

account.o COMMUTER CARS has no access to funds. In the event that

CUSTOMER wishes to have the deposit refunded, CUSTOMERshall notify 3S Network and/or COMMUTER CARS in writingat the addresses. 3S Network shall refund the deposit, withoutinterest, to CUSTOMER at the address within seven days ofreceipt of written notice.

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o COMMUTER CARS will notify CUSTOMER at the address when the CUSTOMERs vehicle is available for purchase inaccordance with the reservation number.

o COMMUTER will assign the reservation number CARS on afirst come, first served basis.

o

If CUSTOMER changes its address, written notification shall bemade to COMMUTER CARS and 3S Network at the addressesset forth herein.

o COMMUTER CARS may cancel this reservation at any timeupon written notice to CUSTOMER, together with refund ofCUSTOMERs deposit.

5.3.4 Promotion Strategy

This is purely communication strategy of our plan. That P ofTANGO Marketing-Mix containing 3 broader categories i.e.o Public Relations and Publicityo Advertisingo Promotion and Events

Public Relations and Publicity

As we are trying to develop and bring to market a new product, thuswe begin planting our PR seeds early in the game. The mantra of ourPR actives based on Integrated Marketing Communications idea, thatensure that everything the press sees or hears is controlled and isconsistent with the image plan. Following some tools we are going

to use for Public Relations and Publicity.

o News Releaseso Feature Stories and Interviewo Exclusiveso Speeches / Appearances at Seminars / Conventions.o Local, Regional or National Talk showso Community Involvementso Lobbying Activitieso Social Responsibility Activities

Following some strategy ideas for types of information tocommunicate to the press

o Prior to product release, sneak previews to the press.o Using both trade and consumer press.o Schedule press release so that various media sources publish

information that builds on it and progressively includes newtidbits of information.

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o Development of an interesting and fund idea centered aroundour products release.

Indirect Advertising

We have to translate all of our objectives in to a specific advertisingmessage to meet our goals. That is basically the test of Positioningweve established earlier. We have tested and refined it, now it cansays exactly what we need it to say The Ultra Narrow, Safe andEconomical Car.

We have identified the type of Media will be used to carry out ourmessage (That is referred to Media Plan). As we are introducing newproduct within one year, therefore our strategy is to advertise theproduct with a series of ads in TVC and publications, through whichwe steadily make the target consumers familiar with TANGO.

As we map out our Advertisement strategy, we use following to makeour communication with our target audience effective and efficient:

Determine the appropriate set of communication activitiesbased on the relationships among the communication, buyingprocess.

Outline the use of messages and other communication toolsthroughout your selling process.

Indirect Advertisement and Target consumer buyingprocesses

The following diagram depicts the relationships among the indirectadvertisement, target consumer expected buying process used withand by TANGO buyers. In the row beginning with Awareness, theAdvertisement process outlines the key communication objectivesthat must be met to facilitate progress in the buying and sellingprocesses.

Advertisement/Communication process

Awareness Credibility Lead generation

Interest Preference Selection Loyalty

Buying process

Identify the need Identify alternative

sources

Evaluatealternative

sources

Select a shortlist of

alternatives

Conduct atechnical

evaluation

Purchase Renewal

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Communication process and the evolution of messaging

As we moves through the communication process, we must evolveour messages to map to the information requirements of our

audience. In general, as we move through the communicationprocess, our messages should provide more detail and substantiationabout our business and product (TANGO). Understanding themessages that are required to support the later stages of the buyingand selling processes makes it possible for us to create bettermessages in the earlier stages of the process. The following tablesummarizes how and when we can evolve the essence, or the nettakeaway, from our messages.

Communication processnet takeaway from TANGO messages

Awareness Credibility

Lead generation

Interest Preference Selection Loyalty

CCI is in the Automotive business.

The industry and customersvalidate CCIs business.

CCI has a vision for and commitment

to the Auto business.

CCI has specific offerings and capabilities that meetcustomers specific needs.

CCI has strong capabilities thatmake it competitive in the Auto

business.

You made the rightchoice in selecting

TANGO.

TANGO Deliveredon its promise.

Buying process

Identify the need Identify alternative

sources

Evaluate alternativesources

Select a short listof alternatives

Conduct atechnical

evaluation

Purchase Renewal

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CCI sales process

Identifyopportunity

Qualifyopportunity

Plan thesolution

Propose thesolution

Provide duediligence

Close sale Manage the account

Promotions and Events

Because our advertising efforts primarily affect the opinions of ourtarget audience but it dont always create and immediate action (atleast not initially), therefore, we also need to plan special promotionsthat will encourage quick action. Promotion is based on incentives toact, such as free gift with purchase, eating out discount coupons etc.

Sponsored events are increasing in popularity and account for billionsof rupees annually for marketing. They are extremely useful in TANGO case, when we are going to lunch a new product. Wearrange mega events called Meet The TANGO The NarrowCar, participated by dignitaries, celebrities, renowned singers. That

shows/events ties in with our product promotion; the name ofTANGO and TANGO itself will be displayed very prominently.

6.0 Action Plan and Implementation

That portion of TANGO marketing plan refer to tactical andimplementation issues, the decisions exactly which magazines or newspapersin which to advertise? What is the difference?

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We are going to hire Pakistan best and renowned Advertising Agency namelyM/s. Manhattan Leo burnet as our Media Communication Partner.

CCI will use the pre-launch period of six to nine months to condition the

marketplace in anticipation of the actual launch. Excitement will increaseover time as TANGO gains significant media coverage and generates word-of-mouth through grass-roots initiatives.

At the time of launch, CCI will secure coverage in mass media and trademedia to reach the target consumer. Regional events will be staged to createmaximum awareness and acceptance of the TANGO.

Target media includes print (newspapers and magazines) and electronic(television, radio, online). The emphasis will shift depending on the launchphase. During the pre-launch phase, the target media will include businessand Internet press. The target will be enlarged to include general news and

lifestyle media during the launch phase.

The TANGO is a durable item, in which consumer has to go through withComplex Buying Behavior in a way to take a decision and TANGO is verynew internet in Pakistan Automotive Market therefore, we should not go forpersonal selling and sales promotion options. Therefore, followingcomponents will be included in promotion mix of TANGO

Public Relations

Indirect Advertisement

Sales Promotions Events

Advertisement vehicle options

The types of Advertisement vehicles that we use to support different stagesof the buying and selling processes are dictated by the correspondingadvertisement objectives. In the row beginning with Awareness, thefollowing table outlines the key vehicles that support each Advertisementobjective. Not all Advertisement vehicles are required for you to relay yourmessage to the market effectively. In early stages of evaluations and analysiswe have use the Target Audience Profiling Questionnaires to understand

fully how your audience finds information and to select the most appropriate Advertisement vehicles based on your audiences preferred sources forinformation.

In conjunction with the preceding table, which outlines the evolution ofmessaging throughout the Advertisement process, our marketingadvertisement specialists use the following table to determine how best tofocus messages in each Advertisement vehicle.

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Advertisement processsample communication vehicles

Brand Awareness Credibility Interest Preference Selection Loyalty

Press briefing ortour, or both

Press mentions Business whitepapers

Data sheets andother detailedproduct collateral

Proposal templates,invoices, and othercompanydocuments

Thank you andjust checking in

Advertisement bye-mail, regular mail,phone, or othermodes

Press releases andassociatedmaterials

Analyst quotes,references, andmentions

Press articles Feature andfunctionalitypresentations,

videos, and othertypes ofdemonstrations

Customerreferences

Analyst briefing ortour, or both

Customer andpartner quotes andreferences

Analyst papers andpresentations

Printed customersuccess stories

Company

informational RoadShows & Events

Company or

product overviewcollateral

Conference speaker

presentations

Capabilities

brochure

Industry eventtrade show floorparticipation

Company orproduct overviewslide presentation

Competitivepositioningadvertising

Return oninvestment (ROI)tools

Awarenessadvertising

Product overviewdemonstration on

Web

Technical whitepapers

Public relat ions Press and analystarticle reprints

Communication vehicles tactical calendar for TANGOCustomers

Quarters 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20PressInteraction

X X X X X X X X X X X X X X X X X X X X

Analyst Views X X X X X XEvents X X X X X X X X X X

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Trade Shows X X X X X X X X XAdvertisement X X X X X X X X X X X X X X X X X X X XPublicRelations

X X X X X X X X X X X X X X X X X X X X

Brochures X X X

White Papers X X X X X X

7.0 Marketing Budget

For detail TANGO Marketing Budget please see enclosed (Annexure A).

8.0 Control

In marketing control section we would like to adopt following control tools in orderto measure effectiveness and efficiency of TANGO whole Marketing Process:

* Annual plan control: are planned objectives being achieved?* Profitability control: where is the company making money?* Efficiency control: how efficient are our marketing expenditures?* Strategic control: are marketing strategies matched to the opportunitiesavailable?

1. Annual plan control:* Sales analysis:

- Actual vs. planned sales (Periodic Basis)By Division (Spare Parts & CBU)

By ProductBy Sales Area

- Market Share analysis: Tracking of Market share vs. maincompetitors - by product

Actual vs. Planned Market shareMarketing Expenditure to Sales Analysis:3S Centers to Sales Ratio

Advertising to Sales Ratio- Financial Analyses:

Profit Analysis vs. Planned Profit - for example, byproduct, sales are.

- Consumer Attitude Tracking:Ad-hoc Consumer SurveysConsumer PanelsCustomer Complaints

2. Profitability Control:- Monitor profitability by product, sales area.

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- Identify Marketing & Production Expenses- Allocate Expenses to sales effort, transport etc- Profit & Loss Statement for each product, division etc

3. Efficiency Control:-

Sales force: e.g. average number sales calls/day, averagecost per sales call- Advertising/Communication: e.g. awareness of ads.

Advertising cost per thousand- Distribution: e.g. stock control, shelf space & position

(Spare Parts)

4. Strategic Control:

Stages in a Marketing Audit: -* Marketing Environment Audit:

Macro-environment: e.g. population, political, -economic, cultural,Marketing-environment: e.g. consumers,competitors, suppliers, distribution channels,

* Marketing strategy Audit:- Business Mission- Marketing Objectives- Overall Strategy

* Marketing Organization Audit:- Formal Marketing Dept Structure

- Personnel Efficiency

* Marketing Systems Audit:- MIS- Marketing Planning System- Marketing Control System- NPD system

* Marketing Productivity Audit:- Profitability Analysis- Cost Effectiveness

* Marketing Function Audit:- Product- Price- Place- Promotion

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Documents

Makreting Plan Tango by Asad