Marketing Plan for the year 2012

BEVA AUTO

Student : Mimoza Musliu 118333 Valdeta Pajaziti 118332 Mentor : Selma Kurtishi

I. EXECUTIVE SUMMARY
The company Beva Auto is part of the widely spread selling and servicing network of cars Porsche Macedonia. This company is dealer of Volkswagen, Volkswagen Commercial Cars and Audi AG for the south eastern part of the Republic of Macedonia. As one of Volkswagen partners, Beva Auto was established in 27 December,2006 after being granted the franchise of becoming a dealer. As a general importer over the past few years, Beva Auto has sold and repaired a large number of cars which has enabled the company to successfully operate in the Macedonian market. This Is due to the fact that the company has continuously been seeking towards new ways of attracting customers by offering and finding new ways of doing business such as through credit and leasing. Beva Auto is headed by a single director and this company has its workers separated in different tasks which cooperate with each other in order to reach success. The importing process is planned each year and cars are ordered directly through the portal in Germany. Beva Auto has a also established a long-standing relationship and mutual trust with the rest of the partners, especially with the main importer of Volkswagen which is located in Skopje. The everyday exchange of information and the programs aimed at improving the quality of the business are the main factors that have contributed to this successful collaboration. A major challange Beva Auto is facing is how to increase profits and gain competitive advantage over its competitors. An evaluation of the companys internal strengths and weaknesses and external opportunities and threats served as the foundation for this strategic analysis and marketing plan. The plan focuses on the companys growth strategy, suggesting ways in which it can build on existing customer relationships, and on the development of new product features and services targeted to specific customer niches. Beva Auto is considered a business-to-consumer marketer.

II. ENVIRONMENTAL ANALYSIS

Founded as an official dealer of Volkswagen & Audi as well as a servicing center for servicing and repairing all of Volkswagen model with original parts, Beva Auto, provides high-quality cars from a well known and trusted brand, which are imported from Germany. It also provides servicing of these cars with the same quality and efficiency as in any other servicing Centre of Volkswagen and Audi. Beva Auto was established in 2006, after being granted the franchise of becoming a dealer. Enver Pajaziti established this company, and through the strategies he used for attracting the costumers as well as building long-standing relationships and mutual trust with its costumers and with the rest of the partners, turned Beva Auto into a very successful company.

A. The Marketing Environment

1. Competitive forces. Beva Auto Company is the first official representative in the Pollog region including Tetovo, Gostivar, Kercovo and Debar. In Macedonia Volkswagen has the first place in car sales. Approximately 6500 cars are sold annually, which represents about 20 % of the whole sold cars. The competition in the car industry is very strong on a local, regional and national basis. The car market in Macedonia has changed quite a lot in the last ten to fifteen years.In this market the number of offered car brands has increased significantly. In the Macedonian market were present these European brands: Italian (Fiat, Lancia, Alfa Romeo), French (Reno, Peugeot, Citroen), German (Opel, Mercedes, Volkswagen, BMW), English (Rover, Cupper), Swedish (Volvo, Saab) and Spanish (Seat) etc. Nowadays we can conclude that the number of car brands being offered in Macedonia has increased a lot.As far as its concerned to the analysis of which brands in which territory are more requested, we can say that in Eastern Macedonia German cars are sold more, while in the second place we can put French brands of cars, other brands of cars are sold too but in a smaller amount. Beva Auto is not the only dealer and servicing centre. There is another distributor of the same brand of cars too in Tetovo. This distributor also provides servicing of Volkswagen and Audi. Eventhough in the short term this competitor did not take a large amount of the market share, in the long term if Beva Auto does not implement a strategy that will differ it from its competitor may fail to succeed. However, with the new laws and reguulations brought by the government, now its much more easier and cheaper to bring cars from outside the Macedonia, rather then buying them in Macedonia. As the tendency for buying cheaper and good cars is rising, additional competition is expected to enter the market. 2. Political forces The political issues that surround Beva Auto are due to the visa liberalization for Macedonia. When the excises for the cars brought from abroad were removed the company lost a lot of potential customers because many of them decided to buy cheaper cars from the other Western European countries. 3. Economic forces. The global crisis also affected Macedonia and its citizens, by making them even more poor, and with less buying power which affected the performance of the company and its finances. With less profit, and increasing expenses, Beva Auto company finds it difficult to cope with the economic crisis. Thus it should find ways to reduce expensses. One of the best solutions is to cut the budget for mass media advertising. Instead the company should put advertiments online, which result to be much cheaper and more effective than advertisments in televisions, magazines, newspapers etc.

4. Sociocultural forces. In todays society, automobiles developed into lifestyle-products and status symbols, transferring an image and families owning two or more cars are no rarity. The car is not anymore considered as a luxury item, but as a neccessity. Almost every family member has its own personal car. This trend results in higher demand for cars. To better understand the needs and wants of the costumers, Beva Auto needs to concentrate on their target markets habits, lifestyle, and wealth distribution, which may affect the current price list. 5. Technological forces The rapid development of technology, allows businesses be closer to their costumers as well as cooperate with their business partners easier and more efficiently. A company website, would be the perfect solution to direct communication of Beva Auto with its costumers. This can be achieved by posting on its website detailed informations, prices, credit opportunities and recent offers that it provides for its costumers. It is also a great way to find out what costumers think about the products and service you offer, by reading the costumers review section. Beva Auto makes use of the virtual private network wich enables the company to use the Internet in order to establish secure intranets and extranets between Volkswagen dealerships and factories,and secure extranets between itself and its suppliers. As well as for further communication with Porsche Macedonia and the other Volkswagen partners. 6. Environmental Factors Nowadays most of the companies have evolved from Marketing Concept into that of Societal Marketing Concept. Generating customer satisfaction and long-run public well-being are the keys to both achieving the companys goals and fulfilling its responsibilities. Beva Auto needs to take into account environmental issues such as the impact of energy consumption levels and waste disposal. These aspects will allow the business to continue to success with a higher turnover as an outcome. 7. Legal and regulatory forces. Legal factors are very crucial for the companys overall operation process. Thus Beva Auto should pay great attention to issues such as health and safety, employment, and competition laws.

B. Target Market(s)
By focusing on commitment to service and quality, Beva Auto has effectively implemented a differentiation marketing strategy in a somewhat diverse marketplace. Its ability to differentiate its product has contributed to superior annual returns. Its target market mainly consists of people ranging from 20 to 40 years old. There is a wide range of car types, starting from sport cars tailored for bachelors or young families without children, to those cars intended for bigger families ( parents with kids). It must also be mentioned that in Eastern Macedonia, German cars are sold more. When analyzing the economic standard of the citizens in Macedonia, Volkswagen and Audi cars, represent luxury rather than neccessity. This is due to its high prices, when compared to the average income of Macedonian citizens. Since Beva Auto has the necessary information about what group age, what family type and in which region of Macedonia its products are sold more, it only remains to the company to implement strategies that will fullfill the needs and wants of these target market.

C. Current Marketing Objectives and Performance

The overall goal of Beva Auto marketing program is to create enhanced public awareness through a comprehensive marketing campaign that will result in increased overnight visitation. Through marketing, products and services get closer to the consumers. It also enables consumers get information for the products and services. Marketing is one of the most powerful tools in achieving great results in selling the products. Beva Auto company has a solid marketing, all medias are used in any time in order to enable the customers be informed in time about any new event in the company and about the new benefits for the customers. Beva Auto uses these types of media for promotion : television, radio, the internet, billboards, daily newspapers, automobile magazines (weekly and monthly), direct presentations and it organizes car test driving. Compared to the other competitors the prices of cars being sold at Beva Auto Company are more affordable. Development strategy is clear, Volkswagen and its professional staff are aware that development depends on the ongoing tentative of developing the technology and innovations. Regarding Beva Auto, their market strategies include often promotions in some cities in Macedonia, offering the customers the opportunity to test drive the cars. This company is also interested in understanding the customers wishes and needs, it accepts customers warnings and in this way they correct their companys weaknesses. This Company also offers guarantee for consumers investment, quality, often and regular servicing and the opportunity to change old with new car. Regarding the companys performance, the company is currently debt free except for the mortgage on its facility. However, the need for cash to fund operations in the meantime makes it necessary for the company to borrow significant amounts of money to cover the expenses. Beva Auto marketing objectives also include increases in both revenues and profits of

approximately 10 percent over the previous year. In order all the expenses to be covered 5 to 10 cars must be sold monthly. If we suppoze that approximately 7 of the cars with price of about 16.000 and profit of 7%, that is 1.120 profit per car. If we calculate 1120 per car x 7 cars (sold per month) = 7.870 profit. On the other hand the Service centre must exceed 11740 income per month in order to cover the expenses. There should be minimum of 150 income per day.

III. SWOT ANALYSIS

A. Strengths
1.Beva Autos product differentiation strategy is the result of a strong marketing orientation, commitment to high quality, and customization of products and support services. 2.A long-term relationship with the primary supplier has resulted in shared knowledge of the products requirements, adherence to quality standards, and a common vision throughout the development and production process. 3.Professional trained manager and staff. 4.Experience in this field, and a trend setter in the automobile world. 5.Taking part in all the fairs and taking different courses, and continuously following the changes in the auto business. 6.Finding new ways of selling cars with credit or leasing. 7.Bringing the brand close to the customer, offering guaranties for the service and maintenance as long as possible and trading old cars for new ones. 8.Offering warios kinds of cars from Volkswagen.

B. Weaknesses
1. First, the business is managed and owned by the same person, which is a huge responsibility and may cause a lot of stress. 2. Despite the successful, long-term relationship with the supplier, single-sourcing could make Beva Auto vulnerable in the event of supplier dissolution or even worse if the supplier will refuse to supply Beva Auto, instead to supply the competitors company. Contingency plans for suppliers should be considered. 3. A very big disadvantage for the company is that it does not have a business website. Therefore, they are unable to communicate with their customers and advertise their business on the Internet. 4. The guaranties should be valid for a longer time 5. Difficult access and high price of car reserve parts

C. Opportunities
1. Technological advances have not only made peoples lives easier, it have also brought greater efficiency in making business. Beva Auto can take advantage of the internet and use it as a tool for getting closer to its costumers. 2. As companies look for ways to develop customer relationships rather than just close sales, reminders of this relationship could come in the form of acceptable premiums or gifts that are useful to the customer. 3. By enabling more affordable and long term leasing opportunities for its costumers, Beva Auto may gain a great comptetitive advantage over its competitors.

D. Threats
1. Cars are nowadays a must rather than a luxury, so many companies want to enter the car industry. Since bringing cars from abroad has become very easy, the bariers to entry for other companies have been reduced significantly. 2. Single-sourcing can be detrimental or even fatal to a company if the buyersupplier relationship is damaged or if the supplying company has financial difficulty. 3. Competition among Volkswagen and Audi cars and other brand cars is very strong.

E. Matching Strengths to Opportunities/ Converting Weaknesses and Threats

1. The development of technology can be used by the company to result in an increased interest and awarness of consumers for the products and services that Beva Auto offers. . 2. Beva Auto must modify its management hierarchy, empowering its employees through a more decentralized marketing organization. 3. Beva Auto should discuss future growth strategies with its supplier and develop contingency plans to deal with unforeseen events. 4. Beva Auto should consider diversifying its product line to satisfy new market niches. 5. Beva Auto should consider surveying its current customers and its customers clients to gain a better understanding of their changing needs and desires.

V. MARKETING STRATEGIES
A. Target Market(s)
Target market 1: Bachelors or young families without children Volkswagen and Audi cars not only provide cars for bigger families, they also provide sport cars tailored for bachelors or families without children. These cars are usually fast cars, with only two seats and more expensive than other more traditional cars. Target market 2: Families, usualy with children Most of the cars that Volswagen and Audi offer are mentioned for bigger families usualy with children. These cars are usually more comfortable, bigger, more clasical cars with 4 doors. Target market 3: Other companies that resell cars Beva Auto is also looking for ways to resell its cars to other companies that do not have the right to be official distributors of Volkswagen and Audi cars.

B. Marketing Mix
1. Products. Beva Auto not only markets cars, but also provides servicing and repairing of these cars with original parts coming from Germany. Beva Autos intangible attributes are its ability to meet or exceed costumer expectations consistently, its speed in responding to costumers demands. Intangible attributes are difficult for competitors to copy, therefore giving Beva Auto a competitive advantage. 2. Price. Beva Auto provides high-quality cars customized to its clients needs. The value of these products and services is reflected in its price, which some costumers find cheap and some expensive, according to their incomes and cars price. Beva Auto should be sensitive to the price elasticity of its product and overall consumer demand. 3. Distribution. Beva Auto uses direct marketing. Since its products are big, heavyweighted they are sold at the companys auto saloon. Distribution of cars to other cities is not preferable. Eventhough, in some special cases by the help of special vehicle transporters this can be achieved. 4. Promotion. Since cars performances and features can be better described through visual aids, advertising in Television and in the internet are the primary tools used for promotion. Another useful way which Beva Auto uses to promote its products and services includes test driving. This gives the costumers the opportunity to experience from closer the cars comfortability and its performance.

VI. MARKETING IMPLEMENTATION

A. Marketing Organization
Since Beva Autos current and future products require extensive customization to match clients needs, it is necessary to organize the marketing function by customer groups. This will allow Beva Auto to focus its marketing efforts exclusively on the needs and specifications of each target customer segment. Beva Autos marketing efforts will be organized around the following customer groups: (1) Bachelors or young families without children (2) Families, usualy with children (3) Other companies that resell cars. New positions in the compan must be created such as marketing director and sales manager, so that each group will be headed by a sales manager who will report to the marketing director. In addition, each group will have full decision making authority. This represents a shift from the current highly centralized management hierarchy to a decentralized managment. Frontline salespeople will be empowered to make decisions that will better satisfy Beva Autos clients. These changes in marketing organization will enable Beva Auto be more creative and flexible in meeting customers needs. Likewise, these changes will overcome the current lack of diversification in Beva Autos product lines and client base. Finally, this new marketing organization will give Beva Auto a better opportunity to monitor the activities of competitors.

B. Activities, Responsibility, and Timetables for Completion

All implementation activities are to begin on July 1. Unless specified, all activities are the responsibility of Beva Autos president, Enver Pajaziti. On July 1, create two sales manager positions and the position of marketing director. The marketing director will serve as project leader of a new business analysis team, to be composed of three employees from a variety of positions within the company. By July 15, assign three members of the analysis team to each of the following projects: (1) research potential new product offerings and clients, (2) analyze the current billing cycle and billing practices, and (3) design a customer survey project. The marketing director is responsible. By October 30, the three project groups will report the results of their analyses. The full business analysis team will review all recommendations. By December 15, develop a marketing information system to monitor cli ent reorder patterns and customer satisfaction. By January 31, make initial contact with new potential clients for the current product line. Each sales manager is responsible. By March 1, finalize a customer satisfaction survey for current clients. By April 30, implement the customer satisfaction survey. In addition, implement a new product offering

 By June, analyze and report the results of all customer satisfaction surveys and evaluate the new product offering. The marketing director is responsible. Reestablish the objectives of the business analysis team for the next fiscal year. The marketing director is responsible.

VII. EVALUATION AND CONTROL

A. Performance Standards and Financial Controls

The following performance standards and financial controls are suggested: The total budget for the billing analysis and the customer survey will be equal to 50 percent of the annual promotional budget for the coming year. The breakdown of the budget within the project will be a 20 percent allocation to the billing cycle study, a 30 percent allocation to the customer survey and marketing information system development, and a 50 percent allocation to new-business development. Each project team is responsible for reporting all financial expenditures, including personnel salaries and direct expenses, for their segment of the project. A standardized reporting form will be developed and provided by the marketing director. The marketing director is responsible for adherence to the project budget and will report overages to the company president on a weekly basis. The marketing director also is responsible for any redirection of budget dollars, as required for each project of the business analysis team.

B. Monitoring Procedures
To analyze the effectiveness of Beva Autos marketing plan, it is necessary to compare its actual performance with plan objectives. To facilitate this analysis, monitoring procedures should be developed for the various activities required to bring the marketing plan to fruition. These procedures include, but are not limited to, the following: A project management concept will be used to evaluate the implementation of the marketing plan by establishing time requirements, human resource needs, and financial or budgetary expenditures. A perpetual comparison of actual and planned activities will be conducted on a monthly basis for the first year and on a quarterly basis after the initial implementation phase. The business analysis team, including the marketing director, will report their comparison of actual and planned outcomes directly to the company president. Each project team is responsible for determining what changes must be made in procedures, product focus, or operations as a result of the studies conducted in its area.