Posted: December 17th, 2014

Marketing Management;

Marketing Management;

About the company

•    Vision:-
?    Our vision is to become a head of the leading companies for automobile services sector in GCC countries.
•    Mission:-
?    Our business is essential for everyone because of rapid lifestyle. We will make the life easy for customers with our multi home automobiles services done by qualified employees.
•    The Objectives:-   (assuming that we will start our business on January 2015)
(SMART: specific, measurable, achievable, realistic, time-based)
1.    Build the brand awareness in Qatari market at the end of the first year.
2.    Increase the market share for the company by 20% on (December 2015).
3.    Covered all the company’s obligation to the bank (loan) after one year of business.
4.    Starting to earn profit after one and half year of business life.
Phase one: product idea “Your Mechanic”

?    Introduction about our group
Imagination is our group name that we chose because it defines and expresses our creativity in work and how we can together as a team to convert our dreams to the real world using the team building structure. This also shows the ability for anyone to imagine or on the other way; to form a picture and illustrates the ability of thinking to come up with new ideas by the brainstorming.
?    Brief idea about our service
Now a day’s people prefer to have their services in their home also they prefer to have more flexibility of the services provided to them at their place with their free time because of the fast routine life. To take the benefit from this situation, we made some search about what people need and want here in Qatar for home service specifically to explore this idea. We found that a lot of people would like to have home automobiles services, so we came up with this idea that will help drivers (family, young and students drivers).
?    The brand name
We call it “Your Mechanic”, the basic idea is our mechanics comes to you were ever you are to provide you the service that you want related to your car.”Your Mechanic” company has a marketing statement, which is “we make it easy”. Some of the services that we provided to our customers are car repairing, changing the oil engine, changing brake shoes, fixing the car’s battery, car washing, oil filling and making special cars designs for events like national day. All this services come to you at your home or office or any were you would like. You can take appointment to get your service also you can call us for emergency situations. Our service will be helpful for every driver; it will save his/her time and cost with our quick services at affordable prices.
?    Kind of services that we deliver
“Your Mechanic” is unique service, especially in Qatar. This is because of multi services that this company provides. As a shortcut of company services, it provides the service of repairing, washing and decorating.
•    Repairing
First of all, what kind of repair and maintenance that company can provide? Of course not all of them can be provided at home or any other place; some of them need a special workshop using big machines that cannot be moved outside. As an example of the company repairing services are changing oil and filter, repairing air condition, battery replacing or charging…etc.
•    Washing
Furthermore, everyone wants to have clean car all the time, but because of our weather plus sometimes there is no time to go to the washing car place, so this company make your life easier by having this service at home.
•    Decorating
In addition to that, as this company is new to the market, it wants to give their customers some special service that also it gains a lot in Qatar, which is car decorating and designing. This service is growing in some special events; one of the best events is Qatar National Day. In this day, the competition between car services companies increase to achieve high profits as much as they can. This part of services will need special graphics to design the stickers for car and this will be done inside the company’s workshop. After that, will have ready to the customers that they want to be special than others by ordering their own designs or choose from the company ready designs.

All of this was an introductory for the main services that can be provided at home and other benefits in details will be specified in next paragraphs. Automobiles workshop service repair is a unique service providing company with customers in their houses or any other place that specified by the client. The company is keen to save time and effort by covering all types of basic repairs. The company is providing this service with having original spare parts from the proxy and oils deliver by having contract with cars dealerships.
?    The competitive advantage

Here are the competitive advantages of this service compare to market competitors:-
1-    This service is specially people who want to save their time, who are usually on a hurry to reach their places, also for families or any driver that faces a problem in the road.
2-    It helps the costumer to be more satisfied in several ways like saving time rather than going to the workshop and have their cars repaired.
3-    It comes to the consumer’s place or house and work on it in at the same time.
4-    Moreover, there will be no waiting in line for customers turn, in one phone call a reservation can be made with the timing and the destination that they ask for and less effort will be spent on going to the garage or drop the car and wait for a few days to be ready because traffic can take hours to get customers to garages.
5-    The advantage that customers can get is the service is considered helpful to ignore traffic and to get an appointment and start working on the car immediately.
6-    Other value added to customer is that will support woman who drives and find it hard to go to places that are usually for men like garages and workshops that sometimes she can get harassment or bothered so it will be a better solution to get her car fixed at her house.
7-    As well as forgetting refilling fuel can be a constant issue for people who drives, so with this service customers can avoid getting it, also it saves energy rather than going to the petrol station every couple of days to get the car’s fuel refill.
Phase Two: The SWOT Analysis
We will start with internal environment that mostly controlled by the company. The company needs to capitalize its strengths and try to minimize or working hardly on their weaknesses to be improved.

•    Strengths
1.    Providing an automobiles quality services to customer’s place, this is new in Qatari market.
Our company will provide more flexibility of the services to people at their place with their free time, and it will be helpful for every driver; it will save his/her time and cost with our quick services at affordable prices.
2.    Having qualified employees raise the service efficiency.
In our company we will employ qualified employees which they are specials in cars mechanics and we will make sure that they have well training and good skills in cars mechanics before we employ them. Having professional qualified mechanics will provide a good quality of service and that will hopefully satisfy our entire client.
3.    Using the technology, having our own website or App to book an appointment.
Having our own website or App for our company, this will be more easer for customer to know which services we provide; also they can book an appointment for any services so there will be no waiting line for customers turn because everything will be organized.
4.    Selling related products in addition to the car services.
In our company we will also sell related product to car like car accessories.

•    Weaknesses
1.    Lack of market awareness.
Lack in market awareness can slow our business if we don’t know exactly what market need in Qatar and in GCC.
2.    Shortage of human recourses, especially in Qatar.
Having shortage in human recourses especially because we are looking for professional so that will cause pressure at work and in providing services.
3.    Hiring qualified employees is not easy and their wages will be costly.
Will to have qualified employees that’s will cost a lot of training for them and in addition to their high wages.
4.    Insufficient financial funds.
Having insufficient financial fund mean that we have to borrow money from bank to start our business and we have to work in sufficient way to get profit and to pay our debits.

Moving to the external environment, it is clear that for every opportunity the company faces threat at the same time.

•    Opportunities
1-    Few numbers of competitors in the market.
The small number of competitors in the market that will help the success of the project and the superiority of the spectrum because of the project that we are the only that able to meet the needs of the market.

2-    Can exploit the trend of social media programs to market for our self by saving money.
There were many ways of advertising became easy to set up, whether to sign up an account in “Instagram” and display images and services for consumers or advertising pages online with few amount of money .

3-    The fluctuations in weather, especially in dusty and rainy days, will increase the demand for car washing and fixing.
Climate change leads to increased opportunities for demand for the project, especially with the atmosphere that characterized dust and rain, leading to increased demand for our services from the car wash and repair.

•    Threat
1-    Changing people habits can be difficult.
We are facing a threat to change the habits of people and ideas, for example, there are many customers do not want to change their habits that they prefer to go to workshops for repair of automobiles themselves.

2-    Other business can imitate us, having a competitive environment.
In the State of Qatar are witnessing a remarkable development in the Qatari economy and the piece produces a competitive environment may affect us in the tradition of the possibility of its project and imitate.

3-    New technologies that enter to automobiles sector can be a threat for us because it needs adaptation.
Great advances in automotive technology would threaten the project it is possible the project may close in the future, may we address the safety of the environment, and the spectrum may lead to a few opportunities to get our services.
As an example for this point: Qatar market might all shifting to use hybrid cars in the future, so that will lead us to cut off one of our services, which is oil filling.

Phase Three: Segmentation Process
The best way to ensure that products sale, and that a company competes better in the market is by ensuring that the marketing program targets those individuals that are likely to buy the goods. With the current economic state, it is impossible for one to target everyone. This is best achieved through segmenting market, which is efficient, affordable and effective. This paper therefore, aims at discussing how ‘Your mechanic’ can segment its market.
In segmenting, the best way is for ‘Your mechanic’ to use demographic, geographic, psychographic, and behavioral segmentation. This is because it plans to focus on individuals who do not have enough time to go to workshops to repair their vehicles, and are of different types and from various backgrounds. For instance, students who are in a hurry want to reach the university on time without car’s problem or drivers and families who get problems on the road. It plans to help them avoid wasting time by ensuring they do not queue and that they do not go to the workshops. In demographic, it should divide the large market based on age, occupation, income and education.
Being an organization that plans to sell its products especially to Qatar’s different communities, geographic segmentation will be important. It should give different marketing messages depending on the various regions and communities it operates on. Psychographic segmentation involves considering the different interest and activities, class, lifestyles among others. It should consider such people as outdoor adventurers, high-income earners and workaholics. Finally, it needs to do behavioral segmentation, by considering user behaviors. For example, price sensitivity, pattern of use, benefits sought and brand loyalty. This is because individuals may have the same demographic makeup, but differ in their behavioral tendencies.

Phase Three: Targeting and Positioning Processes
?    Targeting:-
The step coming after segmentation is selecting the appropriate segment/s to be the target market/s. Targeting process has ordinary steps, which will be described in details in this paragraph. First of all, from segment profile in segmentation table we will select our target market. We will define each market that can be our target market today or in future.

(Segment 1) Universities’ students:-
•    Age: between (18 – 25) years old.
•    Income: 500-3000 QR.
•    Usage rate: monthly.
•    Benefit sound: affordable prices.
(Segment 2) Business Men:-
•    Age: between (30 – 65) years old.
•    Income: above 40,000 QR.
•    Usage rate: weekly.
•    Benefit sound: high quality and speed service.
(Segment 3) Women employees:-
•    Age: above 25 years old.
•    Income: above 10,000 QR.
•    Usage rate: monthly.
•    Benefit sound: privacy and convenient.

“Differentiated Marketing Strategy” will be used in order to reach out to every client that is possible by providing campaigns or promotions that consider both woman and men while sending different messages in the same campaigns for different segments. For example, a businessman who has no spare time to take his car to get washed or repaired and women who finds it very difficult to bring her car in a place that is usually crowded with men. Also we will be offering multiple types of services targeting three main segments.
?    Positioning:-
o    Positioning statement:

For students, women, businessman, your mechanic make your life easy with our multi home automobile service among all competitors, your mechanic comes to you wherever you are because we believe that your time is very important to you.

o    Slogan:
“We make it easy for you”

How can our company differentiate from the others?
Our company “your mechanic” can differentiate from the others competitors for several unique reasons, our company provides car services to customer home, place and anywhere they want to have the services with fast and flexibility ways that help the customer in there fast routine life. This idea is unique and new in the market which makes us differ from the other competitors, further more we try to make it easy as much as possible for the customer so we had our own website and App to book an appointment, so the customer doesn’t have to wait in line and it will save time for us and our Client.
How can companies use packaging labeling warranties and guarantees as marketing tools?
In our company we use guarantees that promise a complete satisfaction for our client, as well as we try to give our customer confidence in our services, so we focused on customer satisfaction.
Marketing mix:
We have months of the year, which increases our demand for our services from washing and polishing cars  and repair also In winter, the demand for the car wash is increasing, especially after the fall of rain and be in a December to February . In these months also a lot of families take the opportunity of that weather to enjoy camping in desert that which increase our demand in winter. And also in the summer will increase the demand for our services through the dust that gives us thus increasing the demand for car wash and also through high temperatures in the summer, the consumer want the fastest service and guarantee that no one leaving the house with heats up.
Pricing Strategy

?    Pricing Objectives:
1.    To minimize our costs in the first year 2015 by 60,000 QR.
2.    To reach maximum current profit at the end of 2016(second year) by90,000 QR.
?    Elastic demand:
•    The demand would be elastic for us in our service because there are some seasons that we will change our prices whether we increase it or decrease it. So it might lead to a decline in the demand and some customers switch to another suppliers. The main advantage might be that there are few alternatives that the consumer can substitute with.
Market Price Range QR    Services
30-60    Car washing
100-1200
3000-5000
150-200
700-1500
25000-35000
1050
600-700    Car repairing
Repair AC
Changing oil
Changing tire
Changing engine
Change breaks
Checking every 5000 kilo
…etc

1000-3000    Car designs and decorating

Services    Fixed cost    Variable cost    Total cost/Annually
Equipment’s    80,000        160,000
The van    120,000        120,000 QR
Salaries    1500        108,000 QR
Workshop rent    20,000        240,000 QR
Wheels

700 QR
36,400

Soap
5 QR    1800 QR
Insulation        1300 QR    32,000 QR
Car lights        1200 QR    12,000 QR
Refill fuel tank (full)        120 QR    24,000 QR
Total    221500    3325    734200

– We will have 6 employees who work for our service
– Unit variable cost = 106200 / 3000 units = 35.4 ~ 35

?    Our place in the market:-

•    This graph shows how our prices for automobile services compared to the market price – after had discussion with family members who use car services frequently- for variety of services the most expensive goes to decorating the car and the lowest price goes to car washing.
?    Selecting pricing method:-
•    Makeup pricing:-
?    Our costs and units
1.    Fixed costs————————221500
2.    Variable cost———————-35
3.    Expected unit sales—————–3000

?    Total unit cost = VC + FC / unit sales
= 35 + 221500 / 3000
Cost = 108.8 ~ 109 QR
•    Target-Return Pricing:-

?    We want to make 30% profit margin
= Total unit cost / 1-pofit margin
= 109 / 1-0.3
Price = 155.7 ~ 156 QR

?    Break-even volume
= FC / (Price – VC)
= 221500 / (156 – 35)
= 1830 units
?    Break-even in value
= Break-even volume * Price
= 1830 units * 156 QR
= 285480 QR

?    Our pricing strategy  (Going-rate pricing)
This strategy for pricing depends on competitors’ prices. Due to we want to maximize our profits, so we will not charge our customers higher prices. What we did above is we took the average prices of the market to price our service.

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