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Strategic Marketing Plan for Super Bikes (Sri Lanka) Company Ltd
Executive Summary
Super Bike (Sri Lanka) Co. (Pvt) Ltd., since its inception has created a huge brand image and remains a large commercial force which is constantly driven to satisfy the legitimate interest of its stakeholders, the customers.
Super Bike (Sri Lanka) Co. (Pvt) Ltd., has changed its focus to differentiate itself from other players in the market, especially the Indian players, by filling real needs of our target group with reliable, friendly and efficient service.
The company’s market focus has made explicit in its plan to review the vision and strategy, adding more value to the target audiences in Sri Lanka.
Apart from the above facts, it was a pleasure to identify the needs of the target audience and how we as a leading bike company in Sri Lanka could cater to the needs of the young riders.
I have also given insights to the real target audiences, what innovations would satisfy the needs of the target audiences and how the company would achieve its goals to grow as the leading bike company in Sri Lanka.
Background of the Company
Super Bike (Sri Lanka) Co. (Pvt) Ltd. started its business in 1993 with two young but experienced bikers with an engineering background. They observed that the bike market was growing fast in the Asian market and was becoming very popular in both sporting and general usage. They developed frames for super bike that were suited for off-road and standard range.
Super Bike Co., does not sell directly to retail customers. It relies on a network of 20 distributors in Asia. Super Bike expects all their distributors to be in the Asian countries to handle the total production and service range such as selling bicycle spare parts and service including warrant, repairs, etc.
Super Bike is also the sole distributor for a bike company in Korea and sells their products ranging off-road five models and standard six models in Sri Lankan market.
Situation Analysis
Situation analysis analyses the internal and external factors of a business. It identifies the capabilities of the business, customers, business environment and its impact on the company. A situation analysis is an essential part of the business plan and is reviewed periodically to ensure its current relevance.
Super Bike Company’s major competitors are most likely to be the firms that come up with the best business plan and utilize their skills to make the firm successful.
PESTEL Analysis
It is a framework or tool used by marketers to analyze and monitor the external marketing environment factors that have an impact on the organization. An organization has no control of these factors. The results of the PESTEL analysis is used to identify threats and weaknesses which is usually used in a SWOT analysis.
PESTEL stands for:
- P : Political
- E : Economical
- S : Social
- T : Technological
- E : Environmental
- L : Legal
According to PESTEL analysis the Super Bike (Sri Lanka) Co. Ltd understands about the internal and external factors that affect the organization. It identifies the new trends in the macro environment or the external factors and work very closely to adopt according to it.
In order to track these trends the company will keep a close eye on all the above factors. These factors can cause various threats as well as lead to opportunities to the company. Furthermore, these factors are beyond the control of an organization.
SWOT Analysis
The next step on the marketing plan is to know our strengths, weaknesses, opportunities and threats. To identify these, a SWOT analysis would be performed.
Given below is the matrix of our strengths, weaknesses, opportunities and threats or the SWOT analysis.
Strengths
Capitalize on strengths
- a) This company has high efficient business strategies to develop their products and to sell their items.
- b) It is a specialized company in motor bikes.
- c) The company has financial stability
- d) It posses modern technology (machines, work forces and specially trained people)
- a) Favourable consumer perceptions
- b) Management and the staff have skills and the management in a variety of areas
- c) Reduces inventors risk and exposure
- d) Think differently
Weaknesses
Address weaknesses
- a) There is lack of opportunities to expand the business in the country.
- b) Sri Lanka is a developing country therefore, people do not have enough money to spend on motor bikes
- c) Creating brand awareness for new products are difficult
- a) Committed to expand
- b) High margins provide flexibility
- c) Professional sales team recruited with assistance of venture partners who will have affinity with our experience in the supermarket chain industry
Opportunities
Maximize opportunities
- a) There is scope for innovation in existing markets.
- b) It is a low cost – high profit industry.
- c) Japanese bikes are more expensive than Korean bikes.
- d) Capacity to operate in a high growing industry.
- a) Build consumer preferences
- b) Sell benefits
- c) Ease, quality and consistency of products ideal for introduction to the market
Threats
Minimize threats
- a) Competition from the other players in the market.
- b) Price competition.
- c) We cannot stop macroeconomic activities.
- a) Increase the number of dealers
- b) Guaranteed demand
- c) Venture with others to fight back
Objectives
Objectives are the firm’s desired goals to be achieved. Objectives should be SMART. It refers to the followings.
Specific
- The stated objectives will have to be to the plan.
Measurable
- The objective under consideration has to offer measurable results.
Actionable
- The target stated in the objective will have to be responsible.
Realistic
- This refers to practicability of the stated objectives.
Time frame
- All objective should specify a time frame for the targets.
Our SMART objectives are as follows.
- a) To achieve a market growth of 20% by the end of 2020.
- b) To increase number of customer base.
- c) Promote the brand awareness amongst many target audience.
- d) To reach the sales revenue of Rs 2850 million in the end of the year 2020 with an extensive of the product line.
- e) To foster a good public image for motorcycling and motorcyclist
- f) To promote the increased use of motorcycles for transportation and recreation
Strategy
Strategic Marketing Plan
The marketing plan is the central instrument for directing and coordinating the marketing efforts. Marketing plan is most important factor of any organization to develop their future various activities.
There are two levels of marketing the planning
- a) The strategic marketing planning
- b) The tactical marketing planning
Marketing Plan is further defined as the logical sequence of activities leading to the setting of objectives and formulation of plans for achieving them. It could include marketing tactics, product features, promotions, merchandising, pricing sales channels and service.
The Super Bike (Sri Lanka) Co. Ltd. is specialized in motor bicycle trade. They produce off-road and standard range of motor bicycles. Super Bike (Sri Lanka) Co. Ltd, has developed a marketing plan as follows:
- a) To identify individuals who does business with us, and the prospective customers.
- b) Established a strong presence in the Super Bike (Sri Lanka) Co. Ltd in the country.
- c) To make market penetration, nationwide distribution and making an opportunity gauge market acceptance of other competitors and reduce business and financial risk.
- d) Utilize acquired market knowledge and try to gain and established a relationship with the non bike riders both through motor bike affiliations and through the efforts of our friendly staff.
- e) Established significant high margin sales.
Definition of Brand:
A unique design, sign, symbol, words or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors. Overtime, this image becomes associated with a level of credibility, quality, and satisfaction in the consumer’s mind. (American Marketing Association)
Therefore, branding is
- a) a seller’s promise
- b) has to deliver a set of specific features consistently.
- c) builds an identification of the product in the consumer mind.
There are four main steps in building a brand
- a) Brand recognition.
- b) Brand acceptance.
- c) Brand performance.
- d) Brand loyalty.
The Role of Brands
Brands identify the source or maker of a product and allow consumers, either individuals or organizations, to assign responsibilities to a particular manufacturer or distributors. Consumers may evaluate the identical product differently depending on how its branded consumers learn about brands through past experience with the product and its marketing programme. They find out which brands satisfy their needs and which ones do not. As consumer lives become more and more complicated, rushed and time starved the ability of a brand to simplify decision making and reduce is invaluable.
Brands also perform valuable function to firms. First, they simplify product handing or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. The brand name can be protected through a registered trade mark. Manufacturing process can be protected through Patents and Copy Rights and Designs. These intellectual property rights ensure that the firm can safely invest in the brand and reap benefits of a valuable asset.
Brand strategies
There are a few branding strategies available in the market
- a) Individual product branding, such as Lux, Coca-Cola, Sunlight, Viva
- b) Blanket family branding such as Maliban, LG, Samsung, Keells, Damro
- c) Company trade name combined with individual brand name such as Nissan sunny, Nissan bluebird; Singer TV, Singer washing machine
Super Bike (Sri Lanka) Co. Ltd will be using the branding strategy of Blanket Family Branding Strategy. Accordingly the company name and the product name would be the same. For instance, in the case of LG products – all products under LG brand name such as LG refrigerators, LG Television. If LG brand name fails in the market it will adversely affect demand for all LG products under LG brand.
The product range of Super Bike (Sri Lanka) Co. Ltd.
- a) Off-Road Five models – Brand names as follows:
- Super Striker (180R)
- Super Mount Rider (200R)
- Super Off road Express (200R)
- Super SBR (250R)
- Super Evil (250R)
- b) Standard Six Models – Brand names as follows:
- Super Champ (70cc)
- Super Smile Scooty
- Super SB100
- Super GL125
- Super GN150
- Super Goes Rider (180cc)
The above names are the brand names used by Super Bike (Sri Lanka) Co. Ltd. The company has eleven models under the branding strategy of Super Bike Co. All models use the company name ‘Super’ as it uses the family branding strategy.
Integrated Marketing Communication Plan
The best marketing strategy in the world will ultimately fail, if it is unable to get the correct message across to its potential customers at the right time. An Integrated Marketing Communication Plan will match effective and efficient way to distribute our message across to the target audience in motor bike riders. So what needs to be taken in to consideration is that however great the service is, if unaware of it the battle will be lost to the competitors.
The main reason behind the marketing communication plan is to gain customer awareness, confidence and to minimize the confusion where the customer will be indecisive, sceptic and indifferent. Our focus is to project an image of experience, quality, dependability and excellent customer service and add value to our prospective customers in order us to win the confidence of target audience.
We are certain that if we clearly communicate the advantages and reasons for the customers to do business with us, then they will not be hesitant to commit and use us for their daily needs and the business will not go to a competitor.
We deeply believe in the range of motor bikes, we have in our shelves. So then our prospects will pick up on that passionate attitude and will lead to feeling confidence and positive about using us.
Another aspect to the communication plan is that, we all know purchasing is an emotional decision. We have been able to instil our prospects good feelings about our company and business relationship with us, and how they can improve their lives or solve the problems of time factor. Accomplishing that will be at heart as important as in the sales process on focusing attention on products features and benefits.
Communication goals
- a) Gain customer confidence and overcome potential feelings of distrust which paves the way into moving to competitor.
- b) Making the customers aware of the products and services available.
- c) Be the best motor bike company in the country by communicating to the masses that “We are the SUPER”
Communication strategy
The following is the list of communication collateral to be created and improved to create awareness of the products and the ways to reach the target audience.
a) Sales brochures
The brochures will include detailed information about the Super Bike (Sri Lanka) Co Ltd compelling reasons for using super bike Sri Lanka and contact information including contact numbers, web addresses etc. The brochures will be general enough that the customer could tailor to suit their needs.
b) Advertising
- Outdoor advertising
Hoardings of the super bike company, distribute leaflets to all target avenues in Sri Lanka.
- Yellow pages and rainbow pages
List in all phone directories, place advertisements in the most popular / most read directories.
- Internet
Site optimized, linked and place search engines, ad directories. These actions will ensure super bike company appears high for relevant local search.
- Television
Solicit local news stations and others businesses related programs to carry out a strong story about the super bike company Sri Lanka.
- Radio
Investigate the possibility of having a promotion.
- Newspapers
Solicit the local newspapers to write an article about the Super Bike (Sri Lanka) Co. Ltd
- World of mouth/referral actions
Super Bike Sri Lanka’s current business goals includes that complaints be tracked and evaluated. Formulate a simple survey, having a suggestions box at the entrance / exit of the company to get the customers feedback about the motor bikes.
Marketing Mix
Our marketing plan considers the marketing mixes very carefully as follows:
Product
Super Bike (Sri Lanka) Co. Ltd products offerings will be positioned as cost effective, reliable, operational solutions to the current and future needs of the congested place of the Sri Lankan motor bike industry.
Super Bike (Sri Lanka) Co. Ltd will emerge the pinnacle in current market and will be able to provide superior service, convenience, speed, consistency, and ease of use, reliability, supported by a committed team. This will enable Super Bike (Sri Lanka) Co Ltd to be the leader in the industry.
Price
This pricing strategy will be competitive enough to convince customers that they are purchasing and effectively high quality product with a reasonable amount of money. A primary research indicates that the target market is not price sensitive.
The sales price will return an estimate 43% gross margin on sales.
Distribution
Utilizing the distribution channels of the large corporations with whom we secure strategic alliances will facilitate product distribution. Such corporations will typically have nationwide coverage. This strategy will ensure a presence in the market that increases awareness and builds demands.
Promotions
Super Bike (Sri Lanka) Co Ltd entry in to the Sri Lankan market will be supported by a campaign to established its profile in the motor bike industry. This will include the following:
- a) Seek out and convince – decision makers in the basic family units
- b) Undertake a campaign of personal selling, targeting the decision makers.
- c) Advertise in industry journals, Magazines, on the intended and on our web site.
- d) Continuous advertising in the Television, radio and News papers.
- e) PR – press write-ups, personal interviews and product trails.
Target Audiences
In order to provide a profile of the users of and to perform an analysis at the effectiveness of the company following methodologies were employed.
- a) A review and analysis of previous studies of motor bikes are conducted.
- b) Focus group with target audiences were planned and facilitated.
- c) The survey of the target markets and special details about the buying behaviour of the consumers were found out in order to collect the specific data.
Key audiences of Super Bike Company are:
- Internal – staff, friends and the management team.
- External – families, housewives, business and professional executives.
Segmentation
A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables are geographic, demographic, psychographic and behavioural segmentation.
- Geographic segmentation – nations, regions, cities, density, climate, etc.
- Demographic segmentation – age, family size, gender, income, family life cycle, occupation, religion
- Psychographic segmentation – lifestyle, personality
- Behavioural segmentation – occasions, benefits, user status, usage rate, loyalty status, attitude towards product
Nearly one-third of the company’s sales are from direct consumers, which is about 30%. Only 70% is from the distributor buyers. The following tables illustrate it clearly.
- Table 01: Direct Consumer Vs Distributor Buyers
Direct buyers
Distributor buyers
Customer base
30%
70%
- Table 02: Demarcated under geographical area.
Urban
14.9%
58.3%
Suburban
39.5%
43.5%
Rural
2.2%
1.6%
- Table 03: Demographic Segmentation
Age
16 – 20
21-35
36-60
Above 60
Percentage
8%
52%
36%
4%
Targeting
Once Super Bike Company has identified its market segment opportunities, it has to decide which ones to target. Marketers usually combine several variables in an effort to identify smaller, better defined target groups. When evaluating different market segments, Super Bikes must look into factors such as the segments overall attractiveness and the company’s objectives and resources.
Action Plan
- Product-related activities
Market activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
NPD
New Branding
Pricing related activities
Market activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Price changes
Distribution activities
Market activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
New channels
Expanding
Promotional activities
Market activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Advertising
Sales promotions
Personal selling
Public relations
Direct marketing
Budget
Budget is a crucial part of the marketing plan. It gives a clear overview of all the costs associated in carrying out the marketing activities, including advertising, branding, public relations, staffing costs, etc. Creating a marketing budget assists you to stick to your plan and avoid unanticipated costs, reducing the possibility of overspending. A marketing budget also provides a financial road map and allows you to determine the return on investment.
The following is the budget for Super Bikes (Sri Lanka)
Super Bike (Sri Lanka) Co Ltd
Budget
INCOME
Budget
Operating Income
Off-Road Five Model
13,275,000.00
Standard Six Model
9,570,000.00
Other
3,870,000.00
Total Operating Income
26,715,000.00
Non-Operating Income
Interest Income
1,280,000.00
Gifts Received
1,000,000.00
Donations
1,000,000.00
Other
585,000.00
Total Non-Operating Income
3,865,000.00
Total INCOME
30,580,000.00
EXPENSES
Operating Expenses
Accounting and Legal
567,000.00
Advertising
2,670,000.00
Depreciation
1,208,000.00
Dues and Subscriptions
875,000.00
Insurance
1,350,000.00
Interest Expense
485,000.00
Maintenance and Repairs
625,000.00
Office Supplies
285,000.00
Payroll Expenses
3,620,000.00
Postage
50,875.00
Rent
2,000,000.00
Research and Development
1,500,000.00
Taxes and Licenses
1,000,000.00
Telephone
492,000.00
Utilities
647,000.00
Web Hosting and Domains
1,370,000.00
Other
500,000.00
Total Operating Expenses
19,244,875.00
Non-Recurring Expenses
Furniture, Equipment and Software
1,800,000.00
Gifts Given
800,000.00
Other
500,000.00
Total Non-Recurring Expenses
3,100,000.00
Total EXPENSES
22,344,875.00
Net Income Before Taxes
8,235,125.00
Income Tax Expense
825,000.00
NET INCOME
7,410,125.00
Evaluation
A business evaluation is an analysis and review of the entire business as a whole. It is conducted to determine the overall standing and operation of a business. The evaluation is conducted to ensure that the stakeholders understands what areas may need attention and what changes need to be implemented to get the business in the desired track.
Super Bike Co. will initially see how well the strategy is aligned to its long term vision. If the strategy being followed lines up, it is on the right track.
Then, it would check how well the business and operational plans (tactics) are aligned with the strategy. It would determine whether the listed tactics, when executed, advance the business along the strategic direction?
Third, check the results since the tactical plan was established. Is the business progressing towards the vision? Are a high number of the tactical goals being completed? Are the goals being completed on time?
Finally, on top of the third step, it would ensure that the company is remaining on target.
Super Bike Co., would use the following methods to evaluate its performance:
- a) Measure Performance Vs Plan.
- b) Surveys, including Customer Satisfaction Survey
- c) Customer Feedback
- d) Growth in terms of profit and growth in the customer base.
Stake Holders
A stakeholder is a person, group or organization who:
- may affect a decision, activity or outcome of an organization
- may be affected by a decision, activity or outcome of an organization
- may perceive themselves to be affected by a decision, activity or outcome of the organisation’s existence
The primary stakeholders are typically the company’s investors, employees, customer and suppliers.
The primary stakeholder of Super Bike (Sri Lanka) would be the two young investors of the business, the workers who have employed themselves to work in the company, its consumers, mainly between the ages of 21-35, and the suppliers such as the Korean supplier of the bike parts.
Each group has different interests, objectives, and agendas which may be competing. Identifying and ranking their influence and interest to keep moving forward and avoid getting pulled in every direction is very important.
Not all stakeholders are equal, so figuring out who holds the sway and what is the best champion saves a lot of stress. You can classify stakeholders using this simple matrix:
Image source: https://www.mindtools.com/pages/…
Key Performance Indicators
Key Performance Indicators (KPIs) are measurable values that a company uses to determine whether it is meeting its operational and strategic goals. Different businesses have different KPIs depending on their individual performance criteria.
Super Bike Co., focuses on the following areas as its KPI:
- Motorcycle Sales : This can be the number of total sales. This will measure which brands appeal to the customer more. It gives a very good indication of how much sales has been done.
- Focus on repayment selling : Many people borrow to purchase motorbikes in Sri Lanka. Giving them the price as repayment will sell the motorcycle and recover the money as well.
- Service Gross Profit : Explaining to the customer the work being done upfront. By doing this the customer will understand what you are doing and is less likely to question the bill.
- Service Additional Work : Contact customers for approval before doing any additional work since it would be hard to ask for additional charges after the work has been done.
- Motorbike Holding Cost : This is the total money invested on the bike, i.e. buying cost, insurance, registration and maintenance. This value would indicate whether the bike has been sold profitably.
- Market Share : Use reliable market data to determine the market share of Super Bikes. Relying on competitor figures are not advisable.
- Revenue per Sale : This would tell you how much revenue you gained after deducting all expenses including, buying costs, registration and maintenance.
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