Marketing Plan for Torque- Hydro Manufacturing Company

Title page
A. Cover Page
1. Marketing Plan for Organization/Company name:
2. Proposed by:
3. Submitted to:
4.
B. Table of Contents Pages
1. Executive Summary 1.0
2. Company Description 0.5
3. Strategic Focus and Plan 1.0
a. Mission/Vision Statements
b. Goals
c. Core Competency and Sustainable Competitive Advantage
4. Situation Analysis 1.0
a. SWOT analysis
( Internal Strengths and Weaknesses: Management, Offerings, Marketing,
Personnel, Finance, Manufacturing, and Research and Development (R & D)
( External Opportunities and Threats: Consumer/Social, Economic,
Technological, Competitive, and Legal/Regulatory
b. Industry Analysis
c. Competitor Analysis
d. Company Analysis
e. Customer Analysis
5. Market-Product Focus 2.0
a. Marketing and Product Objectives
b. Target Markets
c. Points of Difference
d. Positioning
6. Marketing Program 2.0
a. Product Strategy
b. Price Strategy
(i) Breakeven Analysis
c. Promotion Strategy
d. Place (Distribution) Strategy
7. Financial Data and Projections 1.0
a. Past Sales Revenues
b. Five-Year Projections
8. Organizational Structure 0.5
9. Implementation 1.0
10. Evaluation and Control 0.5
11. References
Executive
With new technologies arising, the torque tool industry can
customize precise torque limit without the risk of over or under
tightening. For the commercial markets, this new developing technology
will result in better electronic tools customized for each industry,
than the current offers in the market. Current Torque wrenches and other
torque products in the industry lack reliable and accurate Torque to
tighten fasteners used in the new machinery manufacturing environment,
properly (Debelak, 2000). Also with new technological capabilities,
producing durability in harsh manufacturing and automotive environment
will be essential in making torque products successful in industries
across the nation. Torque’s potential clients are automotive and
manufacturing businesses, as well as, smaller mechanic shops who want to
maximize their business capabilities by purchasing the best torque tools
on the market.
Through automotive and manufacturing distributions
targeting mechanics and engineers, the launch of the new company and
products with take place at the 2014 International Manufacturing Trade
Show (IMTS), in Chicago Illinois. HYPERLINK
“http://www.imts.com/visitor/attend.html”
http://www.imts.com/visitor/attend.html . With the technology behind a
new style of torque guns, we will be positioning the product as a
customizable “Escalade” of torque wrenches. With promotion and a
skimming price strategy affixed to the products, the launch will take
place among industry giants at trade shows, and advertising in well
known mechanic and engineering magazines and sponsorship of new tech
savvy automobiles at auto shows. The objective for the upcoming year is
to sell at least 200,000 units, with a 5% market share and a 15% net
margin.
Company Description
Torque-Hydro Manufacturing Co. was started by a team of
engineers from the Midwest they wanted to develop a new age hydraulic
torque gun for the various needs of the manufacturing sector. The
company started off small, manufacturing Torque guns for local
mechanics. It now has contracts with over 200 mechanic shops all over
the United States.
In recent months, the company wants to expand and move to larger
facilities that can accommodate additional employees and new machinery
to keep up with all the new orders that have been coming in. The next
chapter of Torque-Hydro Manufacturing is to expand even more and venture
into the car manufacturing companies like GM and Ford. The products that
the company makes have been receiving great reviews from the mechanics,
customers, and reorders have doubled over the last quarter. The company
believes that soon, their products will be in manufacturing companies
across the United States and also oversees.
Torque-Hydro Manufacturing Co. believes in the quality
and unique features of their product will be a driving force in the
industry over the next 5 years. The marketing plan will summarize how
the company will expand its products to new industries, and deliver new
and innovative high quality products that will last in the toughest
environments. This marketing plan shall also covert the company’s
strategic marketing plan for the next five years. The company hopes it
shall play a crucial role in enabling it to penetrate new markets.
Strategic Focus and Plan
Mission
The mission of Torque-Hydro Manufacturing Co. is to
design, develop, and manufacture in- house high-tech torque guns that
can be design specific to support any manufacturing company’s needs.
We believe that there is a fundamental value, personal and financial
reward in producing a high quality product that offers customers the
most value for their money. We also believe that there is greater
customer satisfaction in offering customized goods, which satisfy
individual customer needs. We provide a stable work environment in which
employees can grow, and pride themselves with superior knowledge of the
product. We believe that employees are our greatest resource, and this
is the motivating factor in providing a suitable, working environment.
Vision
Our vision is to become a leading company in the production
of in- house high-tech torque guns, which meet individual customer
needs. We plan to have a five percent market share within the next five
years and compete favorably with leading industry players. Our vision is
to expand globally so that we can offer our hydraulic guns to the global
markets. We believe that the next five years will see a rapid expansion
in our services and increase our market share. Our existing customers
are part of our success so far and we plan on maintaining a favorable
relationship with them during this journey. Our employees being our
biggest resource will continue to enhance their skills in order to offer
competitive products.
Goals
To continue to make a high quality product that succeeds in the market
To enter into the national market as a strong brand
To keep developing our human resource capital in order to keep up with
changing technologies and market demands.
To expand to international markets and continue offering competitive
products at international levels.
To gain a five percent market share within the next five years.
To be a recognizable brand that offers high quality goods across the
country.
Core Competency and Sustainable Competitive Advantage
Torque’s greatest asset is its human resource capital
which is well trained and motivated. We believe that a great workforce
is important to our company because this is the core of Torque’s
business. In addition to the human capital, the company’s high quality
products that meet individual customer needs give us an advantage over
other market players. Torque’s biggest advantage over other market
players is the ability to offer customized goods, which satisfy
individual customer needs. This enables the company to satisfy customer
needs with utmost precision and ensure maximum customer satisfaction. In
addition to this, Torque has regular maintenance workshops across the
country, and this enables it to keep in touch with our customers and
offer any maintenance services required. Torque also offers a two- year
warranty on its products while other market players offer a maximum of
one year.
Situation Analysis
SWOT Analysis
Strengths
Torque-Hydro Manufacturing Co’s biggest strength lies
in the ability to produce high quality new age hydraulic torque guns.
This is boosted by the fact that the company’s founders have a
background of mechanical engineering, which ensures that we continue to
produce goods that are of good standards. The company’s management is
keen on the quality standards offered because this is its biggest
strength. In addition to this, ability to produce customized hydraulic
torque guns ensures that we meet individual customer needs at a very
high level. This has enabled us to meet satisfy our customers’ needs
and ensured customer loyalty and satisfaction.
Torque- Hydro Manufacturing Co. also values its employees
and their skills. The company has regular training workshops and
seminars which inform employees of the changing technologies and market
trends. This has enabled the company to maintain good standards that are
our biggest advantage over other market players. Thus, the company’s
management ensures that the human resource capital is well taken care of
and trained regularly in order to keep up with market trends and satisfy
customer needs competently. The company’s other strength is the
positive customers relations with all its existing and new customers.
This has ensured that the company’s customer loyalty has remained
high, and this is important for the business. Thus, the company’s
ability to maintain strong customer relations has been essential in its
operations and expansion.
Weakness
Torque- Hydro Manufacturing Co.’s weakness lies in the
time taken to manufacture a customer’s order. The average time it
takes to manufacture a functioning hydraulic torque gun is two weeks on
average. This is so as to ensure that the customer gets the best quality
that can be offered. However, the time taken is bound to reduce to about
one week with the acquisition of new machines that have higher speeds of
manufacturing. Thus, in the next five months, customers can be sure to
receive their orders within a period of one week.
Opportunities
Torque- Hydro Manufacturing Co. heavily depends, on
technology to offer quality services. The dynamic nature of technology
offers endless opportunities to the company because, through technology
it can improve its production capabilities. The changes in technology
are bound to make the company very successful in its future endeavors.
It is through technology that the company can improve on its
manufacturing speeds while maintaining high quality standards. Thus, the
changes in the manufacturing technology offer endless opportunities for
the company to offer quality products to its customers within the
shortest time possible.
Additionally, the company is yet to expand its
competitive products on a global scale. Based on preliminary research,
the company’s products are popular even among customers in countries
where the company is yet to launch. This is based on referrals and
contact with our products to some extent. This shows that the company
still has a huge untapped market share across the globe, and the aim is
to tap this market in the course of the next five years. This presents a
great opportunity that can be a major source of expansion once utilized.
Within our current area of operation, the company is yet to maximize on
the potential customer base. The plan is to tap this potential market
first, with the advantage of superior products that offer high quality
and value to our customers.
Threats
Torque- Hydro Manufacturing Co. is still at its infant
stage. The company faces competition from other established companies in
the same sector, with superior experience and a solid customer base.
These companies have huge revenues, which enable them to offer their
products at competitively low prices. This is because they enjoy
economies of scale in their manufacturing process. These companies have
a competitive advantage because they are also able to afford superior
advertising advantages, which make them more visible than Torque,- Hydro
Manufacturing Co. this has made the company’s market penetration
challenging, but customer referrals and loyalty still give Torque- Hydro
manufacturing an advantage.
Industry Analysis
The new age hydraulic torque guns are a fairly new concept
in the market. These guns are made of superior technology and are easy
to use. Due to the complicated nature of their production, most
companies are yet to grasp their production. Currently, there are only
two other companies in the country that can produce the new age
hydraulic torque guns efficiently and within the required standards. The
other hydraulic guns available in the country are mostly imported, and
they do not have a strong foothold as yet. This gives Torque- Hydro
manufacturing Co. a big chance to expand its products through its
biggest strength of production of high quality products. The company’s
target market share is five percent in the five years. This is to be
achieved through various marketing strategies that will make the
products more visible than currently and also highlight on the quality.
Competitor Analysis
Torque- Hydro manufacturing Co.’s competitors include
Jade Hydraulics and Singh Hydraulics. These companies have been in
operation for a period of twenty years and have a wealth of experience
and knowledge in the sector. This gives them a competitive advantage as
well as customer loyalty and trust. In addition to this, the companies
have huge revenues that enable them to enjoy economies of scale and
afford to change their technologies frequently to meet customer needs.
However, like most big companies, these companies do not have good
customer relations. This is one of Torque- Hydro’s biggest strengths
because the company can respond to individual customer needs with
precisions and efficiency.
Company Analysis
Torque- Hydro manufacturing Co. has been operation for a
total of five years. Within this period, the company has been able to
establish a firm customer base. The company was started by two
mechanical engineers who had experience in the manufacture of hydraulic
torque guns. This has been the company’s biggest competitive advantage
because of the expertise of the management. So far, the company has
received great reviews from leading magazines and customers, and it
continues to expand in order to serve its increasing customer base. The
company’s success is hinged on its ability to offer high quality guns,
as well as, its great customer relations which have been instrumental in
maintaining customer loyalty. Thus, as the company moves ahead, it plans
on utilizing technology and human capital to maintain its reputation in
quality standards and customer service.
Customer Analysis
Customers are any company’s biggest asset. At Torque-
Hydro manufacturing Co, customers are the core of the business. Through
favorable customer relations, the company has been able to expand
rapidly due to reorders, referrals and positive customer feedback. The
company’s main clients are retailers who buy the hydraulic torque guns
in small quantities but who, nevertheless, buy frequently. This makes
the flow of business high and has been instrumental in the expansion of
the business. The company, however, is targeting wholesalers as it seeks
to expand its reach in the country and beyond. Based on research, many
customers now prefer customized products, which can meet their
individual tastes, preferences and needs, this gives Torque- Hydro
manufacturing a competitive advantage over competitors who have not been
able to offer customized hydraulic torque guns adequately.
Market- Product Focus
Marketing and Product analysis
Torque- hydro manufacturing Co. focuses on the
manufacture of hydraulic torque guns. The company’s main marketing
strategy has been through the use of billboards and in mechanic
magazines. This has been instrumental in ensuring that the company
remains visible. The company has also immensely benefited from positive
customer analysis and referrals. This has so far enabled the company to
acquire customers, but the company now intends to use other marketing
channels such as International Manufacturing Trade Show (IMTS). This
will place the company in contact with potential customers (Ferell,
2012).
The company’s products are aimed at automotive,
manufacturing industries and other small mechanical industries. These
are industries that require high quality hydraulic guns which can
withstand a lot of pressure and last long enough. The ability to produce
customized hydraulic guns by Torque- Hydro manufacturing Co. has been
instrumental to the company because it can produce products that suit
each customer’s special needs. The hydraulic guns have repeatedly
received good ratings from the manufacturing and automotive industry,
and this is an indication that the company has the potential to acquire
new customers and expand its customer base.
Target markets
Torque- Hydro Manufacturing Co. has so far focused on
retailers. The company, however, also sells its products to
manufacturing and automotive companies although this is not on a large
scale. The company now targets on increasing its customers in the heavy
manufacturing and automotive industry. The target also extends to
wholesalers in order to expand across the country. These target markets
are bound to increase Torque’s target market share of five percent.
Thus, over the next five years, marketing strategies will focus on
maintaining and attaining new clients especially wholesalers,
manufacturing and automotive industries.
Points of Difference
Most hydraulic- gun manufacturing companies produce their
products on a standard basis. Customers choose their products based on
the industry. However, at Torque- Hydro manufacturing Co. customers have
the chance to order customized products, which fit their needs and this
enables them to customize their final products. This difference has been
instrumental in promoting the popularity of Torque because customers
desire to have products that fit their individual needs. The other point
of difference is that Torque offers a warranty period of two years
because the company believes in its products and assures customers of
the best quality and service.
Positioning
Torque- Hydro manufacturing Co. positions itself as the
preferred Hydraulics- gun manufacturing company in the country with
superior quality, customized products. The company plans to position
itself as the best company to offer products suitable for all
manufacturing industries, automotive industries and other mechanical
needs. This will enable it to compete with other companies, which
provide similar products. Torque also plans on expanding on the retail
market share which has been the biggest source of its success. Thus, the
expansion plan also targets retailers who are regular consumers of
hydraulic guns.
Marketing Program
Product Strategy
Torque’s strategy has been to produce products that suit
individual customer needs. This ensures that all clients are well
catered for, based on their needs. The company plans to improve and
capitalize on this strategy (McDonald & Keegan, 2002). Due to changing
technologies, it is possible to offer customized products affordably and
with utmost precision while maintaining quality. Torque also offers high
quality products, as is reflected in the two- year warranty offered to
customers. Thus, the product strategy shall continue emphasizing on the
ability to offer customized hydraulic guns and well as the assured
quality of the guns. This will give Torque and advantage over other
companies that offer standardized hydraulic guns only.
Torque’s advertising will give an emphasis on quality.
In order to assure potential customers of the authenticity of the
message the company will use customer testimonies, as well as positive
reviews from major industry players and industry magazines. This is
crucial because most customers trust products based on experiences from
others. The marketing strategy will thus focus on the major strengths of
the products as opposed to the brand name. The brand name will feature
secondary to the product because the aim is to sell the strong features
of the products, which will indirectly sell the brand name because
brands are recognized based on quality of products offered.
Price Strategy
Pricing determines whether a product sells or not. The
pricing strategy is to price products based on the customer preferences.
The standard pricing, however, is maintained at a level that is between
the highest and lowest prices in the hydraulic guns market. This is
because the aim is to offer good quality products at an affordable
price. Torque’s prices are based on the principal of making sensible
profits that sustain the business without hurting the customer. This
enables Torque to compete favorably with other market players because
the quality and price attract customers. The pricing strategy will,
therefore, ensure that the quality remains high, and customers are not
exploited.
Promotion Strategy
The promotion strategy will focus on emphasizing on the
strong products of Torque’s hydraulic guns. This is because the aim is
to promote the hydraulic guns and not the brand name. The promotion
strategy is to use electronic and print media as the primary means of
creating awareness. The company intends to create a strong facebook and
twitter presence and engaging regularly with its customers. This is
because social media are the new popular media amongst young people who
have the largest disposable income and thus, spend a lot on such
products as customized goods and services. In addition to this, Torque
shall run advertisements across all major television stations for a
period of three months. The company will also use manufacturers’ and
automobile shows to showcase its products to current and potential
customers. This strategy is aimed at creating awareness which is
important especially in acquiring new customers.
Distribution Strategy
Torque- Hydro Manufacturing Co. currently relies on its 200
outlets countrywide as its major distribution channels. However, with
the planned expansion, the company intends to partner with other retail
shops to distribute its products countrywide. Torque shall also partners
with major wholesalers in the manufacturing sector to distribute
Hydraulic guns across the country affordably and reach a wider target
group than the current one. The distribution channels through
wholesalers will focus on areas that the Torque has not operated in
before. This will also include retailers in such areas because they are
already established and thus, they have an already established
clientele.
Financial Data and Projections
Past Sales Revenues
Torque- Hydro Manufacturing Co. has been in operation for five years.
The average annual revenues total to about five million dollars
annually. This is a remarkable improvement because the company made
sales worth five hundred thousand dollars in its first year of
operations. The company has, however, increased its sales revenues over
the past for years, but it experienced a reduction in sales occasioned
by the global financial crisis. The revenues for the financial year
2011-20112 stood at five million dollars, despite the financial crisis.
This shows that the company has a potential for growth if it can tap
into new markets and acquire new customers.
Five- Year Projections
Torque- Hydro Manufacturing Co. intends to venture into vehicle
manufacturing in the long run. However, Torque will focus on entering
new markets within the next five years. This will include going global
and conquering new towns within the United States. The projected revenue
after this expansion is projected to be twelve million dollars in annual
sales. The plan is to use marketing as the primary means of creating
awareness about the company’s hydraulic guns and acquiring new
customers. The projected revenue is thus, inclusive of advertising costs
that will be incurred.
Organizational Structure
Torque- Hydro Manufacturing Co. has a fairly simple
organizational structure based on its small scale operations and because
the core business in manufacturing. The organizational structure
comprises of management department, manufacturing department, marketing
department and distribution department. The management has two levels of
management the highest level is comprised of top management, which has
two managing directors. These are the co- founders and owners of Torque-
Hydro Manufacturing Co. the next level of management has mid- level
managers who are also the heads of their individual departments. The
management is tasked with crafting the goals of the company. The
managers thus lay, down the goals and clear path to be followed in order
to achieve these goals.
The manufacturing department is the biggest department
of the company because manufacturing is the core of Torque. This
department is in charge of manufacture of Hydraulic guns and innovation
so as to keep the company ahead in terms of innovation and product
superiority. The marketing department is responsible for generating
sales and ensuring that the company and its products are strategically
placed in order to make sales. The department also handles customer
relations so as to ensure that customer needs and concerns are well
appreciated. The distribution department takes care of the distribution
of the hydraulic guns. This is concerned with ensuring that the
company’s products are readily available in the market or on demand.
The department is also responsible for finding new markets and outlets
for Torque’s hydraulic guns.
Implementation
The implementation of the marketing plan will take place
in phases for purposes of accountability and to ensure proper evaluation
of every stage. The first phase will involve setting up a social media
unit that will be tasked with setting up of facebook and twitter pages.
The unit will then be responsible for maintenance of customer relations
through social media. The main duty will be to create an online
presence. The next stage will involve crafting advertisements to be run
on billboards and television. This will be after the expansion of
distribution channels and introduction of Torque products in new
markets. Once these marketing plans are well implemented, Torque will
embark on a thorough customer relations plan so as to manage customer
needs well. This is important because the company’s marketing plans
includes customer referrals and evaluation as a marketing strategy.
Evaluation and Control
Evaluation involves monitoring the effectiveness of the
marketing strategies used. This is important because it enables the
company to improve on its strategies and strengthen those strategies
that have helped the company to succeed (Baker, 2008). Torque- Hydro
Manufacturing Co. uses sales values as a primary means of evaluating the
success of a marketing strategy. This is because the primary focus of
marketing is to increases sales. The other evaluation method involves
obtaining customers feedback of how he or she found out about Torque’s
products. This is important because the company knows which marketing
strategy is most effective and strengthens so as to obtain maximum
benefits.
Every marketing strategy also requires control, so that is
can stay within the primary objectives of marketing. Torque will use
monthly analysis to evaluation to keep in touch with the progress of
each strategy. This analysis gives feedback about the success of each
strategy which enables the company to make continuous changes in the
marketing strategy (Baker, 2008). Thus, control is an important part of
every marketing plan because it ensures that the plan stays within the
intended limits and meets its goals successfully. Continuous evaluation
enables Torque to control the use of resources and change the strategies
based on success and failures.
References
Baker, M. (2008). The Strategic Marketing Plan Audit. Cambridge:
Cambridge Strategy Publications.
Ferell, O, C. (2012). Marketing Strategy. New York: Cengage Learning.
Debelak,D. (2000). Street Wise Marketing Plan: Winning Strategies for
Every Small Business. New York: Adams Media.
McDonald, M & Keegan, W, J. (2002). Marketing Plans that Work. New York:
Butterworth- Heinemann.
MARKETING PLAN 1
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MP-1: Marketing Plan Outline
MARKETING PLAN 1