INTERNATIONAL UNIVERSITY FOR SCIENCE AND TECHNOLOGY IUST

Business and finance facility

Marketing department

Graduation project

Marketing Plan (Car Assembly Line By STC )

Advisor: DR. Prepared by:

Spring 2011

Executive summaryThis project is to learn how to apply the principles of marketing plan in practical business case. The marketing plan is a complete process that starts with the introduction, in this step the marketer should define the problem and determine the applicable criteria to develop in each of the next stage. Clear strategy and objective is the essence in this step. Next step is to conduct a situational analysis to asses factors such as competitors, market trends, customer habits, and government regulations. Then we can introduce the tactical marketing tools depending on the previous findings. The third step is a detailed study for the 4Ps in order to organize the marketing efforts in systematic frame that determine the major characteristics of the marketing plan. For instance, it means identifying the major product and the price strategy companied with the distribution plan and promotion activities. Conducting the market research is the final step. The market research should have the research tools including questioner, focus group, and brainstorming. After completing the research the conclusion is clear and detailed marketing plan. Case study: This section is about STC that suppose to implement the marketing plan to estimate the marketing feasibility of new assembly line to produce pickup called Wingle . STC will conduct a full marketing plan including: the competition strategy of the firm the expected market share the promotion policies and the SWOT analysis of the company

Table of content

How to Write a Marketing PlanThe Marketing Plan is a highly detailed, heavily researched and, hopefully, well written report that will evaluate many inside and outside forces affecting the organization. The Marketing Plan is generally undertaken for one of the following reasons: 1. Needed as part of the yearly planning process within the marketing functional area. 2. Needed for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a new strategy to fix an existing problem. There are many ways to develop and format a marketing plan. The approach taken in the project is considered to be as the following : 1234Introduction. Situational analysis. Tactical marketing program. Marketing research.

Part 1 IntroductionPart 1 of the plan is designed to provide the reader with the necessary information to fully understand the purpose of the marketing plan. This part also includes organizational background information, which may be particularly important if the audience for the plan is not familiar with the company. This part of the plan contains two key components: 1. Purpose of the Marketing Plan 2. Organization Mission Statement and vision.

Purpose of the Marketing PlanThe main body of the Marketing Plan often starts with the planner providing the rationale for the plan. The tasks associated with this section are to:

Offer brief explanation for why this plan was produced

e.g., introduce new product, enter new markets, continue growth of existing product, yearly review and planning document, etc.

Suggest what may be done with the information contained in the plan.

Organization Mission Statement and visionThe organization mission statement consists of a short, finely-honed paragraph that considers the following issues Why is the company in business? What markets do we serve and why do we serve these markets? o In general terms, what are the main benefits we offer our customers? o What does this company want to be known for? o What is the company out to prove to the industry, customers, partners, employees, etc.? o What is the general corporate philosophy for doing business? o What products/services does the company offer? In developing the vision presented in the mission statement consider: o Company History o Resources and Competencies What are we good at? What is special about us compared to current and future competitors (in general terms do not need to mention names)?o

Part 2: Situational AnalysisThis part of the Marketing Plan is extremely important and quite time consuming. For many, finding the metric needed in this section may be difficult, especially for those entering new markets The situational analysis covers the following key areas:

Products Target Market Distributor Network Competitors SWOT Analysis Porter 5 forces model , modern method for situational analysis

Competitors analysis:in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats that able the company to Rank the key success factors over competitors.

SWOT AnalysisSWOT Analysis is a powerful technique for understanding the Strengths and Weaknesses, and for looking at the Opportunities and Threats for the company \ as well as for product.

Part 4: Tactical Marketing ProgramsThis is the heart of the marketing plan. It contains the 4Ps marketing mix: Product In this section discuss the decisions to be made for existing or new products and services. consider all aspects of product decisions in terms of: 1-General description e.g., category of product, product line information 2-Features/attributes offered 3-Branding 5-Packaging Promotion Describe the decisions related to how the product will be promoted. In general, promotion consists of four major areas advertising, sales promotion, public relations and personal selling though not all may be used. Timetables for promotion are important since certain types of promotions (e.g., magazine ads, trade shows) require long lead times. Place This marketing tactics section lays out the distribution plan for the product or service. Distribution is a broad concept that includes all activities and entities responsible for getting the product or service to the customer. Distribution costs can represent a high portion of the overall cost of the product so an efficient distribution system may be critical for marketing

success.Price Pricing decisions can be a complicated undertaking that requires knowledge of the market, competitors, economic conditions and, of course, customers. For this section it is not necessary to provide extensive financial evaluation of the pricing decision since most of this will take place in Budgeting and Implementation.

Part 5: Marketing ResearchMarketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes. Marketing research is often partitioned into two sets of categorical pairs, either by target market:

Consumer marketing research, and Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

Qualitative marketing research, and Quantitative marketing research

Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns. Marketing research may also be described as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in marketing. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior.

Marketing research methods Methodologically, marketing research uses the following types of research designs Based on questioning:

Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques

Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population involves a large number of respondents - examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis.

Lets move to the case study to see how these theoretical principles discussed before could be employed in the real world of business. The case study will be a good example of the marketing plan given in brief detail the implication of this plan focusing on SWOT analysis and how this analysis lead to best understand the competitors and to gain advantages over them.

STC Marketing plan car Assembly linePart 1 Introduction

The project is to open an assembly line for cars in Adra area located in Damascus Countryside, which is 32 km North East of Damascus City, by Shammout Trading Company (STC). The assembly line will produce cars, trucks, and pickup. As the Syrian government issued recently a new law that would allow the local manufacturers to produce and sell diesel double cap pickups in the Syrian market, whereas it is prohibited to be imported, and as STC sales of pickups are increasing and it reached 955 Deer pickups in 8 months, and with GWM plans to discontinue Deer production, STC decided to start up producing the Wingle pickup truck double cab. Plus, double cab demand is available and is unsatisfied well. On a later stage, the assembly line will assemble Haval SUV model (Sport Utility Vehicle). Car market in Syria can be considered as a new market. According to statistical studies, we have found that there was a dramatic increase in pickups registration numbers starting the year 1991 to the year 2008. This change that happened was due to liberate car imports and reduce the customs duty tax. In Syria there are more than six car factories, to name the most important ones: SIAMCO, SEVICO, Hmisho, Khaloof, Sons of Taleb-Agha, and finally Awad & Beitamouni. All of them do cooperation with Chinese and Iranian companies. No local factory cooperates with Korean or European companies.

The target customer for Wingle double cap pickup in Syria is a person who wants a heavy duty truck with 4 passengers seating. This person can be a worker, supervisor, engineer, farmer, mechanic, technician, or someone that is driving in the countryside and he has to crossover some unpaved road. Some of target market my want to use the pickup for work and for family as well. So they need a double cab truck.

According to a survey, dated 2007 by the Syrian daily Newspaper Baladna, showed that pickups accounts for 10% of car sales in Syria and the Total yearly vehicle registration of pickup cars is close to 9,000 vehicles. I also estimate that the yearly market increase will be about 2% which is close to the yearly population growth in Syria. STC estimates that the Wingle double cab ex-Syria will start up as 17% of double cap pickup market. On a later stage, STC estimates that Wingle DC will reach 40% pickups double cab market in Syria. There are big opportunities for this project. To mention some; Syria needs 930,000 home units in the coming 5 years, many engineers will be in the need for Wingle DC, the opening up of the Syrian economy, the willingness of the government to localize car industry in Syria, and the yearly development in the Tourism industry which is estimated at 17% yearly.

The entry strategy of Wingle DC will be by penetrating the market at low selling prices and a KNOW-ME Media. This will be a Pulse in order to increase share of voice and this will later increase share of market which is the sales. The later stage will be launched after seeing the first impact of sales and customers opinions. The 2nd stage consists of 2 campaigns working as a reminder of the car.

The History of Shammout Group business: Shammout Group launched its activity as an exporter of different products to Arab countries and freight services provider. Shammout Group entered the auto business and has become well-known in that field all over Syria ,This was besides trading several commodities like steel, lumber, and food stuff. Vision statement: To become pioneer in each attentive competence of our Companies, depending on our history, gathered experience, strong presence, wellknown name & reputation in the Syrian market, seeking success, consistent management, leadership and continuous achievements that lead us towards improvement and innovation.

Mission Statement: To provide high quality, valueadded services and to build mutually beneficial relationships with customers and suppliers, through extremely consistent performance and continual improvement..

Part 2 Situational analysis

Description of the car market in Syria

The car market in Syria can be considered as a new market. According to Statistical studies, I have found that there was a dramatically changes starting from year 1970 to the year 2008 on pickup trucks registration. On 1970 there were 5,000 pickups On 1980 there were 60,000 pickups On 1990 there were 80,000 pickups On 2000 there were 215,000 pickups On 2008 there were 335,000 pickups.

\

From the above data we can see that there is a constant increase of pickups numbers registered in Syria. Some of the increase was a jump. This can be seen from year 1970 to 1980. As for the second Jump, from 1990 to 2000, were due to reduce Government control on vehicle importation. But starting the year 2000, government control was lifted totally and imports went back to normal. (Central bureau of Statistics: www.cbssyr.org) Chinese cars represent 1% of all car importation into Syria in 2001 (about 118 passenger cars). But on 2005 it reaches 15% of total Syria car imports (8000 passenger cars). This dramatic increase stopped soon and turned down. It stays at 9% on 2009. Although cars ex-china, were considered as affordable and options fully loaded, after usage, it was found to be of low quality and devalue very fast. Some of Chinese manufacturers reacted fast and strengthened exported cars and used better materials, but still, it will take time for any Chinese brands to stand out from the crowd. As on terms of pickups import number, it has been increased due to the fact that these vehicles were built strong and were imitation of Japanese models.

Local car manufactures in Syria As now to move more specific to local Syrian made cars. I have seen more than six factories have started making cars in Syria. To mention the most important ones: SIAMCO factory started on 2006 making a passenger 4 doors car named SHAM. SIAMCO is a joint venture between Iranian car company Iran Khodro, Sultan Company, and the Syrian Ministry of Industry. Marketing of this car was very weak. We hardly see advertisement. Only in Motor fair/Show, the company launches price reduction. This company depends on classified magazine Dalil and Wassela for advertisement. The Second car manufacturing in Syria is SIVECO Company. It started production in early 2008. This is a joint venture between Syrian company Hmisho 20% and Iranian company SIPA 80%. SIVECO manufactures two small passenger cars, named SABA and Emessa. Marketing of this car was very weak for such big project. We hardly see advertisement. Only in Motor fair/Show, the company launches price reduction. This company depends on classified magazine Dalil and Wassela for advertisement. The third manufacturer is Hmisho Assembly line. It is owned by Mr. Hmisho and partners. Marketing of this car was good. We saw TV advertisement. They are active also in Motor fair/Show. The assembly line produces 4 models all of Cherry except F3 which is coming from China.

The forth is The factory owned by Mr. Khaloof and it manufactures mid-size truck, light truck, pickup single cab, and double cab. The brand name is Junda. Advertisement for this group is very weak. Only the launching was good. All vehicle brochures are in 2 faces and reflect low brand Image. I expect that Junda price will be reduced more as it is now the first to be launched and the only player in the Syrian market. The fifth factory is for Sons of Ahmad Taleb Agha in Hama City. It manufacturers light truck space cab. Engine is gasoline 1.1 liter. The sixth factory is Awad & Beitamouni in Damascus Adra industrial city. They will assemble a pickup double cab named Shoroq powered by Isuzu diesel engine. I couldn't get any information on the factory as it is still confidential. Launching the car is soon. Some of Local made vehicle in Syria.

Name Cham Emessa Hmisho Tiggo Jonda Double Cab Jonda Truck Sukan space cab Shoroq

Engine 1.6 Gasoline 1.1 &1.3 Gasoline 1.6 Gasoline 2.7 diesel 1.1 Gasoline 1.1 Gasoline 2.7 Diesel

Doors Size 4 Mid 4 Compact 5 4 2 2 4

Selling price U$ 9,500 8,075

SUV 11,500 Pickup DC 11,950 Light truck Light truck Pickup DC About 5,000 About 5,000 12,000

We can learn from the above that Syrian made cars are: 1- Prices are grouped below $12000. 2- They are all having small engine size for Gasoline less than 1.6L and For Diesel more than 2.5Liters. 3- Many of them focus on Sedan only. New ones move to trucks. 4- Many of them do cooperation with Chinese and Iranian companies. None with Korean or a European company. 5- Marketing activities is very poor. Only Hmisho did TV advertisement.

Target Market: To study and specify the target market of the Wingle Double Cab, I made an analysis of the need of using this vehicle. The target customer for Wingle double cap pickup in Syria is a person who wants a heavy duty truck with 4 passengers seating. This man can be a worker, supervisor, engineer, farmer, mechanic, technician, or someone that is driving in the countryside and he has to crossover some unpaved roads. Some of target market may want to use the pickup for work and for family. So they need a double cab truck. We also noticed that in some Provinces in Syria, the secondary roads are not paved well. So many people prefer to buy a pickup truck instead of sedan for daily usage as it has high ground clearance. Some of these people might have high mileage per year. So they prefer diesel engines to save on transportation.

In the Countryside taxies don't exist. We saw many pickups and light trucks working as taxies between towns and farms. So a pickup, double cab, and diesel engine will be the best option for this service. So the needs assessments for Pickup, Double Cab are: 1234567A Heavy duty vehicle that needs less maintenance Can take 4 passengers Has big space and loading capacity Cross-over vehicle or high ground clearance Fuel consumption is moderate Price is moderate. Is available in diesel engine.

Any vehicle that has 5 points out of these seven points can be considered as indirect competitor. Competition Product Analysis (Key success factors) Direct Competition: 12345Toyota Hilux double cap around $30,000. Mazda BT50 double cab around $27,000. Chevrolet Colorado double cab $24.000. Syrian Junda, 2.7 liters diesel Pickup double cab at U$11,950 Syrian Shoroq 2.7 liters diesel Pickup double cab at U$12,000

In-direct competition: 12345Great Wall Deer single cab $9,700. Syrian Hmisho SUV Tiggo $11,500. Fiat Doblo $15,000. Suzuki APV Van 1.5 at U$14,500. Dacia Logan MCV $14,800.

For some people who are living or driving most of their time in the city, these five models are considered as indirect competitors . Also for some people, who have light usage, they will compare these five models to the Wingle double cab. Nevertheless the direct and indirect competition for Wingle double cab is not that tough due to many factors: 1- Price Factors: Japanese pickup double cab models such as Toyota Hilux, Mazda, Nissan, and Mitsubishis' price are more than 2 times higher compared to Wingle Double Cab ex-Syria due to custom duty tax. And this is why target market people can't afford to pay $30,000 for Toyota Hilux. They are filling the need for pickup double cab by buying pickup single cab or some of the indirect competitors mentioned above. As for Junda DC and Shoroq DC, the prices will compete with Wingle DC but STC name is well known in the Syrian car business market. Plus the launching price of Wingle will be competitive. These two factors will give an advantage for Wingle over other ex-Syria. STC Should positions Wingle DC lower than competition by at least $1,500 because: The offered prices by Junda DC, Shoroq DC are the launched prices. These two companies will reduce its price when Wingle DC is launched . STC strategy for selling cars is always below competition prices of same model by $1000 or more. STC might need to double its marketing and advertisement budget. Especially in the first couple of years. This additional budget will come from big number of sales. Big sales number come from competitive selling price.

2- Needs Factor: Only Wingle DC estimated to fill the 7 needs fully. As Wingle made in Syria by STC will be focusing more on the first needs which is heavy duty reliable vehicle and needs less maintenance. 3- Newness factor: Many persons who are considered as Early Adopters will prefer to be the first to own Wingle pickup double cab. But these Early Adopters are less than 3% of total pickup DC market. And these people should be treated well as they can be considered as the opinion leaders and they might recommend the Wingle or not. STC should win the opinion of these people as they will help in building the brand later.

4- Made in Syria by STC: This will say that the manufacturer is willing to make the car as a success and service centers, Spare parts, guarantee all are real. STC should be higher than customer expectations. 5- Distributor name: Shammout Group name is well known in Syria. STC has 7 showrooms and has more than 35 agents and has been in the business since the year 1990. I suggest that STC opens a special service center in Jazeera area north east Syria as most of sales is expected to be in Jazeera. The sales manager of Jonda DC informed that most of sales were to Jazeera and Idleb province.

SWOT Analysis for the Wingle Double Cab:Strength: Aerodynamic look and shape. Availability in different engine sizes in fuel and diesel The distributor name Shammout is trusted in Syria among car importers. The selling price is competitive according to the strategic pricing of STC. Big distribution network of STC. It has 7 Show rooms and 35 agents across Syria. Long list of Standard feature in Wingle DC. Made in Syria means the manufacturer is fast responsive to customer complaints. Made in Syria means spare parts are available and not expensive. Made in Syria means servicing the car is not expensive.

Weaknesses Brand name is Chinese, where China is still considered as the 4th level of car in Syria. The resell value is low for Chinese car. Wingle name is new in Syria. Only last year 2009 Wingle was launched in single cab. The Wingle shape doesn't have a front or back bumpers. Front bumper is included in the face of the vehicle. This car is designed for heavy duty, so bumper should be strong such as Toyota Hilux or Deer's bumper. Wingle diesel engine noise is high, and might distract customers.

Opportunities As Wingle DC will be made in Syria, this will push public sector to buy it especially if service center is good and reliable. Do some export to neighboring countries . Syria needs 930,000 home units in the coming 5 years. Many engineers will be in the need for Wingle DC. In Syria there are more than 25 car rental companies. Many will be in the need to buy pickup and later will rent these pickups to construction companies. Launch attractive deals with banks for financing the Wingle DC, with low monthly installment, will facilitate the sales. Syrian Army buys pickup. Wingle should be a good option. Many Foreign companies in Syria prefer to rent/ lease pickups. This option should be studied and offered by STC. Threats Opening up of other local manufacturer of pickup double cab. Especially by Hmisho Group or any Japanese models. Changes on the custom duty for pickup double cab. Many NGOs such as UN do not buy or use Chinese cars. This segment is lost. Syrians are price oriented. Indirect competition can affect the sales of the Wingle Double Cab. With the government new acts to transform the Syrian Economy from a centralized one to social market economy, it would be expected to see more agreement to be signed with European Union to enter into the European market, thus the custom duties might get lifted. (The agreement signed with Arab countries, Turkey, and Iran and their effect if they were revised to lift the cars custom duties

Porter Five Forces analysis:The second analysis is Porter five forces. In this analysis the focus is on the project itself. 1. Rivalry among companies in the industry We suggest that STC position its price below than both Shoroq and Junda ex-Syria models. This is the everyday strategy of Shammout group. STC Should position the selling price of Wingle DC lower than competition by at least $1,500 because: STC should keep servicing the vehicle at the best. STC should make Wingle DC warranty longer than Syrian Junda and Shoroq. This will reflect the quality of the Wingle DC . 2. Bargaining power of suppliers The supplier is the brand owner. Great Wall Motor has the upper hand in negotiation. GWM Controls the supply of spare parts, controls the quality, control the prices, and controls the models. GWM should think as STC as a partner. The switching cost of STC is high. This means that it is difficult for STC to find another supplier. STC is new to car assembly business. STC needs a helping hand to have a strong, confident entrance into assembly business so, GWM should position its work strategy with STC on cooperation, win-win, facilitate the work flow, and offer low competitive prices for parts.

3. Bargaining power of buyers STC should always study direct competition, indirect competition, and future competition and be responsive to the new situation of market needs. Syrians are price oriented and any price increase will reduce demand. Direct competitors to Wingle DC such as Junda and Shoroq are sold now at $12,000. On the launching of Wingle DC, they will reduce the price to compete. This is why it is suggested that Wingle DC selling price should be $10,500. We need also to mention that STC sales people should say that Wingle is the sister of Deer pickup were customers already owed Deer and this name is known from the sales achieved. 4. Threat of new entrants (barriers of entry) STC should build the brand fast even if it needs to increase the marketing budget. In the mean time I see seven points as barriers to enter Car Assembly lines industry: Investment Capital Government regulation Demand that local factories are not fulfilling. Sales Network and service locations The attractiveness of local automotive sector for foreign companies The absence of experience in managing car business

The major direct competitor for STC is Hmisho Company as this competitive company strategy is to offer low prices. This company soon might produce pickup double cab and offer it below competition selling prices and shift part of the pickup DC manufacturing cost to other sedans models.

5. Threat of substitute products or services STC should monitor indirect competitor actions. Also should monitor future competitions as well as Hmisho Company. STC should study new models of indirect competition and compare them to the need assessment mentioned earlier.

Part 5 Tactical marketing program

1-product: STC product will be The assembly line to produce cars, trucks, and pickup Producing the Wingle pickup truck double cab, the assembly line will assemble Haval SUV model (Sport Utility Vehicle). The WINGLE pickup DC IS: 1234567A Heavy duty vehicle that needs less maintenance Can take 4 passengers Has big space and loading capacity Cross-over vehicle or high ground clearance Fuel consumption is moderate Price is moderate. Is available in diesel engine.

2-price STC Should position the selling price of Wingle DC lower than competition by at least $1,500 because: The offered prices by Junda DC, Shoroq DC are the launched prices. These two companies will reduce its price when Wingle DC is launched . STC strategy for selling cars is always below competition prices of same model by $1000 or more. STC might need to double its marketing and advertisement budget. Especially in the first couple of years. This additional budget will come from big number of sales. Big sales number come from competitive selling price

3-place I suggest that STC to cover mainly Al Jazeera area north east Syria as most of sales is expected to be in Jazeera. The sales manager of Jonda DC informed that most of sales were to Jazeera and Idleb province. Syria can be seen as having 5 parts. Southern area covers Damascus, Daraa, Soweeda, and Qunetra. Coastal area covers Lattakia and Tartous. Central area covers Homs and Hama. Eastern area covers Jazeera. Each service center must serve customers that can be available within a radius of 100 km. The availability of service center and spare parts are a good support for making the decision of buying the Wingle DC or not. 4- promotion First of all, if STC wants to have a higher brand position for Wingle DC, it should plan for this from the first touch that a customer will see the Wingle DC which is the brochure. Brochure: The available brochure is not considered as good. Its only has 2 faces, plus the picture of loading capacity doesn't reflect any accurate understanding as no one will load Wingle big rocks! The brochure should be at least 6 faces showing the Wingle from different angles with talking about engine, performance, body, chassis, inner photo, and colors. This brochure should be printed on high quality paper as Toyota brochure. The loading capacity should show real pictures of local Syrian material loaded in Wingle DC that gives an accurate impression of loading. Showrooms, appointed service centers, and guarantee should all be written in clear big font. As for price posting, I suggest that STC use a sticker of price on catalog. This is because price is a major factor in buying Wingle DC and also to make price public.

Gift items: Any gift to be given with Wingle DC should be of high quality and durable. Some of pickup owners would like the pickup to have different features than we think of. I suggest that STC meets with some owners and ask them what they really like to have more in the pickup. We may think of small water tank, a fridge, and a small storage location for special items. But any additional feature should be of high quality.

Service centers: Service centers should be clean. And a special area for customer waiting should be designated. I suggest that STC should invite agents and workers at appointed service center to a seminar and training workshop in the factory. So technician should be trained well in advance of launching. Syrian consumer likes gift. I suggest that STC should give a gift to any owner of Wingle DC visiting the service center. Small gift can be a key chain, a digital diary, a note book, or even to wash the Wingle DC for him for free. Any gift should be of durable high quality. This gift will reflect the importance of Wingle DC for STC and will give it a small higher push in customer brand positioning. Website: We recommend that STC launch a website for Wingle DC in Arabic and English language. This website will serve STC for export market. Also keep in mind that many engineers log on the internet. I also suggest that STC launch this car on Fannat website and make a test drive. Syrian consumers like to have an objective view before any purchase.

AdvertisementThe Entry Strategy: The entry strategy will be penetrating the market by offering it at low selling price and a KNOW-ME Media. This will be a Pulse in order to increase share of voice and this will later increase share of market (sales). The Later stage: The later stage will be launched after seeing the first impact of sales and customers opinion. The 2nd stage consists of 2 campaigns working as a reminder of the car but with each reminder, STC should make a change, an offer, or a development on the car. So the advertisement is not copy of the old one. First pulse is on the factory opening ceremony. STC should invite many people that are linked to engineering sectors such as Engineers Syndicate members in all Syrian governorates, government figures, STC agents, service center people, engineering university teachers, Syndicate of contractors, and Mayors. These people will spread the words and will be as opinion leaders in the Syrian market. The first Pulse campaign will be on local TV, Radio, Bill board, and printed newspaper. STC should reserve an area in central cities in Hama, Homs, or Jazeera as a sampling item showing the Wingle DC to people. Second pulse will be on the end of the lunching year. This campaign will talk about price reduction or gift with the Wingle. It will be on radio, newspapers, magazines, and incentives to agents to sell the Wingle. The third Pulse will be in the second year. This will be again on TV, radio, newspapers, billboard, and sampling the vehicle (Showing it) in well-known square in other cities than it was sampled.

PositioningBefore I introduce the Positioning for Wingle DC, we have to read literature part on two pickups. Toyota Hilux: We know that the Toyota Hilux was a helping tool in participating in the construction boom in Saudia Arabia and the rest of gulf countries. Saudi people name it Waanet. This name came from the name of engine size of 1.8 (One. Eight). The name Waanet is a slogan means a pickup. Skoda pickup: In Syria, when import duty tax was high. Skoda introduces a version of Skoda Felicia pickup single cab. Due to low custom duty on pickups, many worker, employees, families, and business owned this car. You can see this truck in every single street in Syria. It was good for everyday usage but not as a truck. Its engine was of Volkswagen technology. Its price was competitive and played a major role in sales expansion. From the above mentioned, we need to position the Wingle to be as a nationwide pickup double cab in Syria. If STC would like to use another name of Wingle, STC can use the brand name Deer as deer is known in Syria. Another option is the translation of Deer word (Ghazal). Or, I suggest using Latin names. STC should think of name that reflects power and endurance and easy to pronounce and remember.

Part 5 Market Research

There are several reasons why a bright future is seen in Syria for Pick-up trucks double cab car, among them: 1- The opening up of the Syrian economy. This will welcome companies to invest in different sectors such as construction, agriculture, and trade. Many investments need transportation tools for its work . 2- The opening up of private banks. This will increase competition between banks and reduce interest rate and increase financing cars sales. 3- The population increase each year which is about 2.7%. Slightly more than 500,000 new born each year. This is a major driver for growth and demand. 4- Syria needs about 930,000 home-units in the coming 5 years. So a huge construction boom will be seen and such business needs trucks and pickup cars. 5- Syria is an agriculture country where 34% of its work force is working in farms and agriculture. Especially in the North East (Jazeera area). 6- More than 50% of Syrians are under 18 years old. If the Wingle name is built well, new generation will buy it . 7- Many Syrian roads are still unpaved. So, in the countryside, a pickup truck will always be the best vehicle for transportation. 8- The search for oil. Many local oil service companies need pickup truck double cab for their workforce.

Percentage of Syrian population according to age

Over 50 20 To 49 0 To 19

Industry sales projection According to a survey, dated 2007 by the Syrian daily Newspaper Baladna showed that SUV and pickups will each accounts for 10% of car sales in Syria. Total car sales in Syria are around 170,000 vehicles a year. So the total market of pickup can be considered as 10% of market. We estimate that pickup double cab market is half of pickup market which is close to 9000 vehicles. We also estimate that the yearly market increase will be about 2% which is close to the yearly population growth in Syria. STC estimates that the Wingle Double Cab ex-Syria will start up as 17% of that market. On a later stage, STC hopes that Wingle DC will reach 40% pickups market

Sale Growth The production in the first year will be 1500 vehicles. Starting the second year, the company could start exporting. Attached is a table for 10-year plan production Year 1 2 3 4 5 6 7 8 9 10 Total Syria sales 1500 2295 3276 3816 3888 3960 4032 4104 4176 4248 35295 Regional sales 0 300 400 500 500 500 500 500 500 500 4200 Total sales 1500 2595 3676 4316 4388 4460 4532 4604 4676 4748 39495

QuestionnaireThe survey done in Jazarea area, distributed to the major car companies in this area. The questionnaire focus on the following aspects : 1234Percentage of the demand on different car brands. What is the best and more frequent use of media tool. Customer demand of cars specification . The increase limits in extra specifications .

1- Pickup brands percentage of sales :

Porter 38% H100 33%

KIA 2700 19% Dong Veng & Havi 10%

2- Alwasila & Aldalel newspapers are the most media tools in Jazera area.

Al Wasela 48% AL Dalel 52%

3- Pickups extra specification : specifications Air conditioner Central lock system ABS Electronic windows Air Backs Headlamp Sensors Screen , Skin brushes , Remote control , and CD player . Wight based on priorities 1 2 3 4 5 6 7 8

4- Customers ability to pay for extra specifications : Price Limit SYP30,000 to SYP55,000 SYP55,000 to SYP75,000 SYP75,000 Up to SYP100,000 Percentage 63 % 30% 7%

Interpretation of data : From the survey we can understand that the consumer favor the heavy pickups and this is what Wingle about . The most appropriate and media tools is newspaper advertising STC should focus on Wsaela & Dalel to improve the public awareness of the product. STC must develop the awareness to other media tools including radio and TV advertisement to increase the acceptance of the product which return to increase sales . On the other hand , the car specification for customers are varied according to usage needs and rate . the most appreciable specification including air conditions , central lock system , and ABS . 63% of the customer afford to pay SYP 50,000 for those extra specifications , STC should include those 3 main requirements at the lowest installment cost and that will increase the profit margin for each pickup .

Second questioner conducted to 10 prospective customers to measure the following attitude: Concept and Usability Test Feedback 10 Prospective customers provided the following suggestions about the potential of STC New Assembly Line in terms of Strength of the business idea. Structured questionnaire and focus, discussion group conducted to our prospective customers and to our primary target market.

Do you recommend the idea of acquiring new chanies Wingle DC by STC and introduce it into the Syrian market which can be a sbtitute for other imported pickups ? Is it feasible?

a. Yes b. No c. Unsure

Yes 80 % Unsure 20% No 0%

Response 8 of the prospective customers are fully like our business idea and they confirmed that they will have full involvement in the learning of Wingle DC . While 2 customers view Wingle to be almost unfeasible.

Buying Intention Survey

If we lunch our project providing you with the variety of reqierd specification, you would? a. b. c. d. Definitely buy Might or might not buy Probably not buy Definitely not buy

Definitley Buy 30 % Might or Might Buy 60% Probably not Buy 10% Definitly not by 0%

Response

Interpretation of data :

Conclusion:

Suggestions and recommendations :

Summary in Arabic

References:

All data resources are:

The yearly reports of transportation ministry (website "www.cbssyr.org") STC company Direct inquires Questionnaires covering al- Jazeera area and Der . Prospective customers questionair

Internet sources : www.greatwall.com www.shammoutgroup.com www.wekipedia.com

Booksources :

Special study Notes: USD exchange rate is 46.5 Syrian Pounds STC means Shammout Trading Company. Some vehicles prices are under promotion or are subject to change Data are according to the Central Bureau of Statistics. Other data collected are based on Shammout trading company sources. SUV means Sport utility vehicle. DC means Double Cab. NGO : Non-Governmental Organization UN: United Nation Jazeera area in Syria is North East region of Syria. It includes the governorate of Qamishli, Hasakeh, Raqqa, and Der Ezzor. ATL : Above the Line BTL: below the line