stephan sorger · product #1 in fuel economy strong value proposition; premium features pricing...

Marketing Planning

Chapter 13. Sample Marketing Plan

Stephan Sorger

www.stephansorger.com

© Stephan Sorger 2015: www.stephansorger.com; Marketing Planning, Ch. 13. Sample Plan; 1

Disclaimer:

• All images such as logos, photos, etc. used in this presentation are the property of their respective copyright

owners and are used here for educational purposes only

• Some material adapted from: Sorger, “Marketing Planning: Where Strategy Meets Action”

http://www.stephansorger.com/


Key Topics

Term Description

Report-based format Traditional format, with text and figures to support each step

10-slide format Short-form format, covering only essential elements



Ford Fiesta Marketing Plan: Executive Summary

Criteria Metric Comments

Objective 10% share by 2012 Increase market share of subcompact cars in U.S.A.

Market Overview Size: 460K units/yr Market trends point to continued growth

Market Segments Primary: Millennial Millennials: 80 million people; 20% of buying market

Competitors Leader: Honda Fit Honda at 14.6%; Crowded market

Product #1 in fuel economy Strong value proposition; Premium features

Pricing $13,320 - $17,120 Premium pricing to support premium product positioning

Distribution 3,800 Ford dealers Exclusive distribution through dealer network

Promotion 25% of budget Digital marketing to target web-savvy Millennials

Finance 3 primary metrics Awareness; Market share; Customer satisfaction



Ford Fiesta Marketing Plan: Market Overview

Market Factor Description

Industry Automobile manufacturing. Category: Small (subcompact) cars

NAICS/SIC code NAICS 336111/ SIC 3711: Automobile manufacturing

Customer needs Direct needs: Transportation

Indirect needs: Freedom, self-expression, self-esteem

Size About 459,802 subcompacts sold in U.S. market in 2009

Growth Rate About 11% growth rate for light vehicle sales in U.S. for 2010

Political Trends NHTSA CAFÉ standard: 35.7 MPG in 2015

Economic Trends Continuing high gasoline prices favor subcompact cars

Social Trends Small cars seen as fashionable; Negative perception of large SUVs

Technological Trends Increased usage of safety technologies, such as ABS and ESC



Ford Fiesta Marketing Plan: Targeting Chart

Market Segment Potential Alignment Marketability

Millennials 80 million people Ford’s new technologies Accessible through

a good fit for tech-savvy digital media

market


Ford Fiesta Marketing Plan: Positioning Chart

Market Segment Positioning Approach Points of Difference Points of Parity

Millennials Benefits: “All of the benefits Premium elements Ford reputation; Quality;

of a larger car in a in a subcompact; Wide dealer network

smaller package.” Bluetooth; SYNC


Ford Fiesta Marketing Plan: Market Structure

Manufacturer Subcompact Model U.S. Sales, 2008 Market Share

BMW MINI 45,225 9.8%

Chevrolet Aveo 38,516 8.4%

Honda Fit 67,315 14.6%

Hyundai Accent 68,086 14.8%

Kia Rio 36,532 7.9%

Mercedes/Smart ForTwo 14,595 3.2%

Nissan Versa 82,906 18.0%

Scion xD 14,499 3.2%

Suzuki SX4 20,704 4.5%

Toyota Yaris 63,743 13.9%

Volkswagen Rabbit/Golf 7,681 1.7%

TOTAL 459,802 100%



Ford Fiesta Marketing Plan: Market Structure

Criteria Ford Fiesta BMW MINI Honda Fit Toyota Yaris

Market Share New model to U.S. 8.4% 14.6% 13.9%

Messaging Premium features European heritage Quality & design Reliability

Competitive Adv. Operations Edgy marketing Technology Procurement

Strengths Can-do culture Racing heritage Well-built cars Reliable cars

Weaknesses Low innovation High service costs Low innovation Product recalls

Product: MPG 30 city/ 40 hwy 32 city/ 37 hwy 27 city/ 33 hwy 29 city/ 36 hwy

Pricing $17,150: 5-door $19,500: hardtop $18,260; 5-door $13,705; 5-door

Distribution Worldwide dealer Worldwide dealer Worldwide dealer Worldwide dealer

Promotion Social media Traditional & social Traditional & social Traditional & soc.



Ford Fiesta Marketing Plan: Market Opportunity & Strategy

Objective Market Opportunity Strategy

Increase market share of Premium subcompact cars Launch Ford Fiesta in United States

subcompact cars in U.S. for Millennials Market goal: Target Millennials

to 10% by end of 2012 Design goal: Leverage global design

Volume goal: 46,000 units/year



Ford Fiesta Marketing Plan: Market Opportunity & Strategy

Product Criteria Ford Fiesta

Target Segment Early adopters within Millennial demographic

Features Blockbuster feature: Class-leading MPG

Technology features: SYNC; Bluetooth; Sat-Nav

Premium features: Leather seats; High-quality interior materials

Parity features: Meets expectations for cargo volume, etc.

Quality Leverage Ford’s reputation for quality

Packaging Offer 5 different models to suit different tastes and applications

Brand Emphasize innovation and new technologies to change brand perception



Ford Fiesta Marketing Plan: Value Proposition Elements

Element Ford Fiesta

Target Segment Millennials who appreciate luxury amenities in a subcompact package

Motivation to Buy Budget-minded consumers; Performance-minded consumers;

and Use Cases Family-minded parents to give vehicle to children

Product Name “Fiesta” name could remind older people of previous lackluster models

Must use distinctive styling to set it apart

Product Category Premium subcompact automobiles

Benefits Head: Class-leading MPG; Ford quality

Heart: Sexy styling; Zippy performance; Latest technology

Competitors Direct competitors: Other subcompacts

Indirect competitors: Public transportation; Used cars

Differentiation Primary: Feaures—premium features normally found only in larger cars

Secondary: Form—distinctive shape



Ford Fiesta Marketing Plan: Pricing Tactics

Pricing Criteria Ford Fiesta

Objective Product-quality leadership

Approach Perceived value; Premium price for a premium product

Competitor Impact Direct competitors: Fiesta includes premium features not included by others

Indirect competitors: No used car offers such advanced technology

Channel Impact Ford network of dealers expected to welcome bold new entry to U.S.

Costs Costs include development costs to tailor vehicles to U.S. market

Environment Slow economic recovery and high gasoline prices will favor subcompacts



Ford Fiesta Marketing Plan: Distribution Tactics

Distribution Criteria Ford Fiesta

Intensity Exclusive; Ford dealers only

Levels, Consumer Leverage existing Ford dealerships

Levels, Business Fleet sales not planned for initial launch; will re-evaluate as demand grows

Logistics Inventory levels; Sales training; Service training; Training materials



Ford Fiesta Marketing Plan: Promotion Tactics

Criteria Introduction Phase Ford Fiesta

Goals Create awareness; Educate customers Create awareness; Educate; Stimulate trial

Targets Early adopters Millennials, especially early adopters

Push/Pull Push: Product demonstrations Push: Supply Ford dealers with training

Pull: Educating consumers Pull: Target consumers with digital marketing



Ford Fiesta Marketing Plan: Marketing Communications Mix

Element Ford Fiesta

Advertising Objective: Informative advertising

Budget factors: Higher budget due to new product in crowded market

In-house vs. External: External due to large account, large media spend

Media: Digital media; TV; Radio; Magazine; Outdoor; Product placement

Social Media Ford Fiesta Movement; Social networking; SEO; SEM; Video sharing

Viral Marketing: 100 Agents; Fiesta community app

Sales Promotion Fiesta Reservations Program; No price-offs or rebates

Public Relations Objective: Drive buzz; SEO-enabled press releases; Automotive outlets

Events Objective: Build awareness; Sponsor Millennial-based events

Race competition version of Fiesta

Personal Selling Leverage Ford dealer network; Provide sales training



Ford Fiesta Marketing Plan: Financial Data

Financial Data Description

Fixed Cost Fixed cost, Total: $500 million

Unit Cost Cost per unit: $8,000 (estimate)

Price Average price: $16,000 (estimate)

Sales Forecast Year 1: 40,000 units * $16,000/ unit = $640 million

Year 2: 50,000 units * $16,000/ unit = $800 million

Year 3: 50,000 units * $16,000/ unit = $800 million



Element Year 1 Year 2 Year 3

Revenue $640 million $800 million $800 million

Cost of Goods Sold (COGS) $320 million $400 million $400 million

= Cost/Unit * Units =40K units*$8K/unit =50K units*$8K/unit =50K units*$8K/unit

Gross Margin Amount $320 million $400 million $400 million

= Revenue – COGS =$640M - $320M =$800M - $320M =$800M - $320M

Gross Margin Percentage 50% 50% 50%

= (Revenue – COGS)/ Rev. =$320M / $640M =$400M / $800M =$400M / $800M

Expenses, Total $480 million $300 million $250 million

Operating Income - $160 million $100 million $150 million

=$320M - $480M =$400M - $300M =$400M - $250M

Ford Fiesta Marketing Plan: Pro Forma Income Statement



Budget Category % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Advertising 35 1 1 4 4 4 4 4 4 4 2 1 2

Social Media 25 1 1 2 3 3 3 3 3 3 1 1 1

Sales Promotions 5 1 1 1 1 1

Public Relations 5 0.2 0.3 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.3 0.2

Events 20 1 1 2 2 2 2 2 2 2 2 1 1

Personal Selling 5 1 1 1 1 1

Other Items 5 1 1 1 1 1

Total 100

Ford Fiesta Marketing Plan: Proposed Marketing Budget



Task and Description Resources Status January February March

1. Infrastructure Activities

1.1 Get cars:Fiesta Movement Joe 100% Start: 1/3 End: 2/3

1.1 Get social media pages Chris 80% Start: 1/3 End: 2/3

2. Pre-Launch Activities

2.1 Develop creative for ads Bill 30% Start: 1/7 End: 2/7

2.2 Content for social media Chris 40% Start: 1/7 End: 2/7

2.3 Prepare dealer material Maria; Sales mgr. 80% Start: 1/3 End: 2/3

3 Launch Activities

3.1 Update Fiesta Movement Chris New Start: 2/10 End: 3/20

3.2 Launch ad campaign Bill; Agency X New Start: 2/10 End: 3/20

4 Milestones/ Deliverables

4.1 1000th Facebook Friend Joe Pending Event: 2/15

4.2 10000th Fiesta customer Bill Pending Event: 3/31

Ford Fiesta Marketing Plan: Project Schedule



Metrics Family Description Example Metrics

Awareness Brand building measurement Brand recognition; Brand recall

Potential reach (#fans); Mentions/day

Market Share Sales performance measure Ford Fiesta sales per month

Ford Fiesta sales by geography

Competitor sales

Customer Sat. Satisfaction measurement Third party ratings; J.D. Powers

Social media: Sentiment trends

Customer satisfaction questionnaires

Ford Fiesta Marketing Plan: Metrics Family Table



Scenario Trigger Actions

Low Awareness Awareness below 50% Gather market research

Assess communications vehicles

Re-evaluate advertising

Low Market Share Share 20% below forecast Affirm value of car

Provide incentives; Reprice

Low Satisfaction Below top 3 in quality ranking Assess perceptions of quality

Target areas for improvement

Advertise path to quality

Ford Fiesta Marketing Plan: Contingency Plan



Slide # Slide Title

1. Executive Summary

2. Market

3. Competitive Landscape

4. Product

5. Pricing

6. Distribution

7. Promotion

8. Finance

9. Schedule

10. Control Metrics

Ford Fiesta Marketing Plan: Ten Slide Format



stephan sorger · product #1 in fuel economy strong value proposition; premium features pricing...

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