Mech n Cab

MechMechN

CabCab

MARKETING PLAN

Submitted By

Submitted to

DateMay6, 2007

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Mech n Cab

ACKNOWLEDGMENTS

Perfection was watchword we had in our mind when we started working on this report. However,

people generally agree that person can only approach excellence but never actually achieve it.

Exquisite perfection is rather trait of God, and by His grace, we tried very hard to make this report

meritorious.

The project was assigned to us by Zeeshan Javed. We are thankful to him for

giving us a chance to learn about marketing strategies. This will help us in enhancing our

entrepreneurial and creative skills.

In successful launch of our Mech n Cab, we are thankful to several people without

whom the launch would not have been possible. Thanks to mechanics shops & some automobiles

services companies for providing us useful information. We thank our families for their support and

coping up with our absences.

Thank you

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Mech n Cab

TABLE OF CONTENTS

Sr# Description Page#1 EXECUTIVE SUMMARY 5

Brand Name Brief Description of Product

2 MARKETING PLANSWOT Analysis 6BCG matrix 7

3 MARKET SEGMENTATION 8Broad Potential Market

4 PRODUCT POSITIONING 95 PRODUCT BRANDING 10

Brand Name DecisionBranding Strategy

6 COMPETITOR ANALYSIS 11Major CompetitorsOverall Strategy for Responding to Competition

7 MARKETING MIX 12PricingPlace/Location ProductPromotion

8 FINANCIAL PLAN 17Expenses for Business OperationsSources of Finance

9 ACTION PLAN 19

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Mech n Cab

EXECUTIVE SUMMARY

The report is providing the detailed information about our product & services which we are

going to launch. We are introducing a completely new idea that is, Mech n Cab. Basically

Mech n Cab is a service oriented business in which our basic idea is to provide car related

solutions with quick services round the clock throughout the week.

For data collection, we have used many types of tools like we have conducted surveys

through interviews and observations in many areas of the city.

Brand Name `Mech n Cab`

Brief Description of our Services

Mech n Cab is automechanic services. Mech n Cab market consists of consumers who need

a service which provides them with 24-7 hour’s service of mechanic every where and now

days as we know that every single person is so much busy in this big city Karachi so every

one wants a quick service. Mech n Cab also eliminates the car owners to come to our

workshop to get the car after repaired because we have the home delivery services at their

offices or homes

Competitive Advantage

We have no direct competitors right now but our indirect competitors are expected to be all

service stations as well as small mechanics shops in Karachi. We are introducing our idea of

launching Mech n Cab in the market on the surety that is potential customers who care for

their cars & time. On the basis on research and intelligence there are no any relevant services

provider available in the market. The major difference that supports our business would be:

Pioneers in introducing the services

No any direct competitor

On the spot services

Available 24 hours a day

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Mech n Cab

MARKETING PLAN

SWOT Analysis

STRENGTHS

Pioneer in the business

Mass promotion

No any direct competitor

Prime location, easily approachable & prominent to the target market

Cost advantage.

Available 24 hours a day

WEAKNESSES

New idea can be rejected

Time Problem

People may prefer their traditional mechanics on Mech n Cab

OPPORTUNITIES

Expand product lines to meet broader customer needs

No direct competition

If appreciated by the consumers then we will extend our branches

THREATS

Slow market growth

May others enter the market after our success

Mechanics Shops

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Mech n Cab

BCG matrix:

Our product comes under the “Question Mark” level, because it is just being introduced to

our target market and will take time to move to other levels.

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Mech n Cab

MARKET SEGMENTATION

Broad Potential Market

During the marketing research that we conducted (through questionnaire attached) we learned

that our target market is basically who have their personal cars & they are usually suffering

with technical faults while driving that are our potential customers.

In order to formulate an effective marketing and promotional strategy, the target market for

Mech n Cab has been divided into 4 different segments:

Based on Geographic variables, Demographics variables, Psychographic variables, and

Behavioral variables.

Geographic Variables

Posh localities of Karachi like D.H.A & Clifton

Demographic variables

Age: 25 & Above

Income: Family income 45,000+

Gender: Both male and female

Psychographic variables

Social class: Upper Class, Upper Middle Class..

Behavioral variables

NO Concern

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Mech n Cab

PRODUCT POSITIONING

The competitive advantage over the mechanics would be our business USP.

Its criteria are based on:

1. Communicable :

Since our product is innovative, and its brand name carry’s its feature, the message is

very clearly being communicated to the target market.

2. Affordable :

It has a cost advantage, over our indirect competitors.

Our brand over all positioning strategy is: more for less.

Positing statement of is influential and communicates the message to our target market.

~The complete car solution!!~

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Mech n Cab

PRODUCT BRANDING

Our brand name is Mech n Cab representing the feature of our services.

Brand Name Decision:

Our brand name decision is based on the following reasons:

Easy to pronounce

Easy to spell

Communicates the service benefits & features

Sounds good

Easy to recall

Branding Strategy:

The branding strategy of our product is Private Branding

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Mech n Cab

COMPETITOR ANALYSIS

Major Competitors

No major competitors exist as it is an innovative product but we have some indirect

competitors, which are the road side mechanics and companies services center in Clifton and

Defence.

Overall Strategy for Responding to Competition

Brand Name

Our strategy to counter the competitors is to create the Mech n Cab brand name in the

minds of the customer.

Monopoly

For the time being, we are the only service provider in the Karachi City specifically Clifton

and Defence only. Our promotion should be such that only our name should come to the

customers’ minds when they face the problems.

Customer Loyalty

We plan to gain long-term customer loyalty by offering quality services through our

branches. We would offer discounts to our members.

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Mech n Cab

MARKETING MIX

Pricing

Pricing Strategy

We intend to follow the Price penetration strategy because our product is innovative.

Description of Pricing Strategy

Mech n Cab is a type of service that is why initially we have set reasonably low price to

gain the maximum share of the target market. Our product image is to provide better

services in low price as compare to market. We are selling at selective places but more

profitably there are no competitors entering the market easily.

Place/Location

Posh localities of Karachi (D.H.A & Clifton)

Product

Product Life Cycle (PLC)

Mech n Cab is in the 1st stage of the product development life cycle (Introduction); growth

would be slow as it is an innovative product. Thus with heavy promotion the company will

move its way towards growth.

The consumers of our services at this stage of the product life cycle would be the innovators

and soon the early majority.

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Mech n Cab

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Mech n Cab

PRODUCT DEVELOPMENT STRATEGY

Idea Generation:

All of us brainstormed different ideas amongst our group and talked about it with friends

and family to get ideas for various products that they think Karachi’s market would require.

We came up with the idea of promoting automechanic services in Karachi. Then to be more

precise we came up with the idea of Mech n Cab, after which we on researched the various

products that can be sources of Mech n Cab:

Idea Screening:

After research, we analyzed each source and with our objective (profitable customer

satisfaction). It was analyzed that:

Mech n Cab will be the fast service provider at affordable prices. In the opinion

of the people Mech n Cab is the best idea in terms of aeromechanical services.

Concept Development & Testing:

The concept already existed. All we needed to do was to identify the need of our services in

the market (through questionnaires) and make it available to our target market if high

intensity was measured. And the result concluded that there is a market need for such a

product.

Marketing Strategy Development:

Our marketing strategy is easily affordable by upper class with out any problem.

Business Analysis:

Our sales cost and profit/loss projections for the period of one month

Test

Marketing:

Sales 900000

Cost 646000

Gross Profit 254000

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Mech n Cab

Tough we are not going for test marketing as no doubt our product has a cost advantage over

our competitors but its pricing strategy is pioneer, which does not allow us to execute this

step.

Commercialization:

We would go for commercialization once the product has entered the growth stage and is

running successfully not far away from the Star in the BCG Matrix.

Promotion

Methods of Promotion

Advertising

Sales Promotion

Public Relations

Advertising

Advertising Strategy

We will be targeting people of high income and owner of cars registered in last five years in

Karachi, approximate number of vehicles in cantonment Karachi is 1.5 million which will be

later catered by our company.

Selected Advertising Media

1) Media Types:

Our objective is to build primary demand by informing consumers about the features of our

services and make position the brand name with its usage in the mind of the consumers.

Major media types:

TV

News papers

Outdoor Advertising (Hoardings, Billboards)

Magazines

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Mech n Cab

2) Media Vehicles:

News Paper

The placement of out product would be on of DAWN.

Outdoor Advertising

Distribution of posters & broachers

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Mech n Cab

FINANCIAL PLAN

Total Fixed Assets

Amt Qty Total

Mechanical tools 50000 4 200000

Liana Cars 700000 4 2800000

Furniture & Fixtures (For offices) 500000 1 500000Shehzor with Towing facilities (compressor + Grinder + peter Engine) 1200000 4 4800000

Total Fixed Assets 8300000

Total Fixed CostFixed Cost Amt Qty Total

Office Rent 50,000 50,000

Workshop Rent 80,000 80,000

Salaries (Mechanics) 15,000 6 90,000

Insurance Cars 20,000 20,000

Promotional Budget 290,000 290,000

Lower Staff 5,000 4 20,000

Telephone Operators 6,000 3 18,000

Drivers ( for Liana Cars) 5,000 5 25,000

Total Fixed Cost 593000per Month

Total Variable CostDescription Amount/Month

Electricity 15000

Telephone 20000

CNG Gas Consumption 10000

Miscellaneous Expenses 8000

53000 per month

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Mech n Cab

Total CostDescription Amount

fixed cost 593000

Variable Cost 53000

Total Cost 646000

Total Promotional BudgetAdd on cable 20000News Paper 50000Out door promotional expenses ( 5 Bill Boards) 200000

brochure and pamphlet 20000

Total 290000per Month

Sales Projection ( Monthly) Amount

Sales 900000

Cost 646000

Gross Profit 254000

Break even

Break even Point ( Amount ) AmountSales 900000Less V COST 53000Contribution Margin 847000Contribution Margin Ratio 0.95Fixed Cost/ CM Ratio 646000

Sources of Finance

The sources of financing for the product are the four members of the Mech n Cab group,

who have agreed to invest in the product on an equal share basis

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Mech n Cab

ACTION PLAN

Market Evidence Research March 15 – April 15, 2007

Mechanic Search March 1 – April 15, 2007

Launch May 15, 2007

Sales Closing June 15, 2007

We plan to launch Mech n Cab ® on May 15, 2007.

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