Marketing Plan for:

Marketing Plan for:kia-spectra. (DAS motors)Proposed by:

Submitted to:

Table of Contents

1. Executive Summary

2. Company Description

3. Reasons of failure

4. Strategic Focus and plan

Mission/Vision

Goals

Core Competency and Sustainable Competitive AdvantageAnsoff Matrix

Porter Generic Strategies5. Situation Analysis

SWOT Analysis

Internal Strengths and Weaknesses

Management

Offerings

Marketing

Personnel

Finance

Manufacturing

Research and Development (R & D)

External Opportunities and Threats

Consumer/Social

Competitive

Technological

Economic

Legal/Regulatory

Industry Analysis

Competitor Analysis (Porter 5 Forces Model, Defense Strategy, Attack Strategy)Company Analysis

Customer Analysis (Segmentation/Targeting)6. Market-Product Focus

Marketing and Product Objectives

Target Markets

Points of Parity (POP), Points of Difference (POD)

Positioning

7. Marketing Program

Product Strategy/ Branding Strategy, BCG MatrixPrice Strategy

Promotion Strategy

Place (Distribution Strategy)

8. Financial Data and Projections

Past Sales RevenuesFive-Year ProjectionsBEP

9. Organization

10. Implementation

11. Evaluation and Control

1. Executive Summary

The Executive Summary sells the marketing plan to readers through its clarity and brevity. The summary should present a description of the product/service, its target market, and its need within the market. The summary should also provide an overview of the main points of the plan and should emphasize an action orientation.

2. Company Description

Kia is a Korean based company, specializes in automobiles manufacturing. It started its operations in bicycle and motor bikes manufacturing. It soon expanded its functions to the manufacturing of pick-ups and small trucks. It entered into the car market in 1986. Kia pride, spectra, classic, sportage were one of the star products and earned high fame for the company till 2004 in Pakistan. In Pakistan, deewan motors had the dealership of Kia cars.3. Reasons of failureTemperature problem

Kia spectra had a temperature issue. The engine gets warm by just a normal use of car.

No Genuine parts

Availability of genuiune parts is the biggest issue, Kia spectra was a Korean product so there were no availability of parts here in Pakistan.

Fuel consumption

A major drawback for Kia spectra was its fuel consumption, the fuel consumption was very high as per usage of car. The mileage was not good enough.

Suspension system

Kia spectra had issues in suspension system, the breakers in the city caused the breaking of sharks of the Kia spectra.

General xp2000 tire

It had general tires, the quality of general tires was not that much good as compare to the other tires.

Breaking system

Breaking system was weak, in order to stop the car, the driver had to push a lot of force on pedals. 4. Strategic Focus and Plan

Mission statementTo be providers of best, innovative automobiles to the customers, we will deliver the high value added products and services based on our customers requirements, which will further provide the long term benefits to the customer. We will apply such strategies which will provide high engineering solutions, convergence with future technology to capture market and consumer needs.Vision statement

We work together for a better future, we will be life time partners in automobiles, and we build tomorrow.

GoalsOur non-financial goal: Quality is our moto. So we will cater market in such a way, all previous customers will switch back to KIA SPECTRA. For the very first year, Profit maximization is not our goal. We have set up such a price which is highly affordable, to capture the market.Financial goal: Our goal is to sale as much as units of the KIA spectra, so that we could generate a revenue of 5670000000.Core Competency and Sustainable Competitive Advantage

People

We believe that future of ou organization depends on the members of out organization. So key factor of our organization is employee. So we hire most talented employees.

Challenge

We prefer smart work rather than hard work. So we accept every challenge which will provide benefit to our organization.

Customer

We support customer driven market, by providing best car named kia spectra, which is now available with more better specification than before.

Ansof matrix

Product Development Strategy: The car industry already exist in the market, but the KIA SPECTRA car was failed, So now we DAS motors(KIA DEALERS) are re launching as a new product in the existing market.Porter generic strategies

Overall Cost leadership

We are trying to cater masses, our goal is to cut down costs from inbound logistics to marketing and selling and then come up with the affordable prices.

Situation Analysis

Kia believes that a comprehensive marketing strategy will be key to the success of the business. The kia spectra model which was failed before due to some reasons. We are here now with that same product and with best modifications in it.

Basically our situation analysis is based on the customers, availability of product and awareness. so we have summarized our situation anaylsis in swot format. (strengths weakness and opportunities and threats). 1.

SWOT Analysis

1. Strengths South koreas largest automobiles producer

Top 5 largest automobile manufacturer based on its sales.

It has strong presence due to its sponsorship to events like the euro cup, fifa world cup

Around 40,000 employees

Good product portfolio and strong brand presence

Has sales of nearly 1.5 million cars per year.

2. Weakness Past recall of crtical components like the braking system was a concern.

Has not expanded aggressively in terms of the geographic reach.

3. Opportunities Today youth is more interested in cars modification, so our car design can be best for modification.

We have recreate kia spectra in better and advanced engine.

4. Threats Competitors automobiles are already commercialized. Creating awareness is little difficult.

Customers are already attracted towards competitors automobile technology.

Industry Analysis

People in Pakistan are so curious about car. In Pakistan we already have a huge car industry. People like new modifications, new shape, and new features. KIA Spectra was already a failed product in the year . so we DAS motors(KIA DEALERS) now relaunching KIA SPECTRA. Kia is always focusing on their customer needs, so they have customer feedback channels, in which they ask customer how do the users feel about the product.

Competitor analysis

Our big competitors are Toyota, Suzuki and Honda. They have already captured the market share, but they have also higher price as compare to KIA SPECTRA, with that KIA SPECTRA has more specifications than the corolla, swift, City.Company AnalysisKIAs main strength is, it is 5th largest automobile industry in the world. it is largest south Korean industry. The company is having high quality models like KIA SHUMA, KIA .Kia has already a highest market share in the Korea and all over the world.In Pakistan, Kia has dealership with DAS motors. As the KIA name creates the brand image. Das motors now come up with the re launch of that failed car model, named KIA-spectra. The product strengths are its modifications:

Fuel consumption now is very low because of hybrid technology. Braking system is good. We have moved from general xp2000 tire to the Dunlop tires.

Air bag system.

Customer Analysis

The reason we are here is the customer, so we value our valuable customers. DAS motors (KIA DEALERS) are always customer centered. So they are trying to cater masses, they did not go for focus or niche market. They want people to buy their KIA SPECTRA which is highly efficient. Those who are having low income, they can go for the installment service which we are offering to the customers.5. Market-Product Focus

Marketing and Product Objectives

Quality is our Moto. We DAS motors(KIA DEALERS) are people oriented, so our prime objective is to provide such a car which can be highlly beneficial for the customer. KIA spectra is now back with the outstanding features, superclass model. We will be having strong communication which will create a brand image of our KIA SPECTRA. The cost is highly effective.

Target Markets

Points of Difference

Previous Brake system to AGS brake system.

General tires to the dunlop tires.

Hybrid technology.

Positioning

We will change the perception of customers about kia spectra. As we know why kia spectra failed in Pakistan like: due to high fuel consumption, no genuine parts, heat up problem et.cetera. Now we have come up with all the solutions but it,s little bit difficult to create brand image of product which is already failed because people have past experiences and normally they are deprived about purchasing that failed product again because this is human psyche.

Now kia is available with outstanding features and specification. Along with it, we have promoted our product in a very effective manner just to create a brand image in the minds of target customers.

Actually the remake our product is highly attractive which creates very good and direct image in the minds of consumers once they see and use this product.6. Marketing Program

PRODUCT

BCG MATRIX

Question mark

KIA spectra lies under the Question mark category because Kia spectra has low market share in the market because people are not aware about this product, but the car industry has high growth in the market.BRAND NAME:

KIA SPECTRAFeatures:

The drivers enjoy smooth driving.

The car has strong body.

High capacity luggage storage area.

Electronic side mirror.

Manual car as well as automatic cars both with cng fitted as well as without cng .

1600 cc car.

Effective mileage system.

Services:

35% insurance discount for the very first year. Free car wash once only. Free oil change once only.Warranty:

One year for the interior warranty. PricePrice strategy

Price penetration strategy:We have initially set a lower price to attract customer attention towards KIA spectra

ModelsModelsPriceCredit TermsPayment Period

KIA SPECTRA CX1,500,00030000quarterly

KIA SPECTRA CX ECO1,550,00032000Quarterly

KIA SPECTRA CX automatic1,600,00034000quarterly

KIA SPECTRA CX ECOmatic1,650,00036000quarterly

PromotionAdvertisement strategy

Media

MediaTIMING HOURS-amRate/minTiming hours-pmRate/minNO. ADDS/DAYAverage COST/day

GEO entertainment9-1030,0007-8pm220,000151875000

DAWN NEWS9-11am15000+Gst8-11pm25000+GST25585000

ARY digital09-11:30am81,0008-10pm265,500101732500

EXPRESS NEWS9-11am200007-9pm4000020600000

TOTAL 4792500

Newspaper

Print Media EditionsPositionSizeColorsCost

DAWNKarachiFront PageHalf Page4 Colors35,040,000

JUNGKarachiFront PageHalf Page4 Colors26,214,000

GRAND TOTAL61,254,000

FM Radio

FrequencyStationRATE/MINNo. of addsTotal cost/day

Fm-101Karachi12002024000

Fm-101Lahore10002020000

Fm-101Islamabad8002016000

Fm-107Karachi(5pm:8pm)741030222300

Reference:

http://www.advertiseinpakistan.com/Billboards

PLACESSIZE (Feet)Cost / month

Teen talwar 15X45450,000

Nazimabad15X45150,000

Tariq road15X45300,000

Shahrah-e-Faisal20X60325,000

Defence 15X45550,000

TOTAL1775000

PlacesDistribution strategy

Exclusive distribution:

We are using exclusive distribution because we have just one single outlet in Karachi at Shahrah-e-Faisal, Nursery.

7. Financial Data and Projections

KIA MOTORS CORPORATION AND SUBSIDIARIES Consolidated Interim Statements of Financial Position(Unaudited)As of June 30, 2014 and December 31, 2013(In millions of won)

Note20142013

Assets

Cash and cash equivalents24W1,133,7282,311,264

Short-term financial instruments245,401,9984,035,379

Accounts and notes receivable - trade24,252,626,6452,072,818

Accounts and notes receivable - other24569,194468,210

Advance payments27,09130,571

Prepaid income taxes72,75652,401

Inventories55,515,6984,331,367

Other current assets9,24160,678170,376

Total current assets15,507,78813,472,386

Long-term financial instruments24613,629294,377

Long-term available-for-sale financial assets241,039,2981,237,107

Long-term accounts and notes receivable -

Trade242,3921,662

Investments in associates and joint ventures69,830,8059,197,720

Property, plant and equipment, net4, 7, 10,149,577,6139,777,005

Intangible assets, net4, 81,758,1271,715,739

Investment property, net447,80150,254

Guarantee deposits24166,018162,190

Deferred tax assets20235,299171,023

Other non-current assets9,24105,252102,577

Total non-current assets23,376,23422,709,654

Total assetsW38,884,02236,182,040

KIA MOTORS CORPORATION AND SUBSIDIARIEConsolidated Interim Statements of Financial Position, Continued(Unaudited)As of June 30, 2014 and December 31, 2013(In millions of won)

Note20142013

Liabilities

Accounts and notes payable - trade24,25 W5,229,3845,192,589

Short-term borrowings10,241,582,327876,376

Accounts and notes payable - other241,613,4421,763,692

Advances received124,278179,600

Accrued expenses241,884,9041,119,919

Income taxes payable263,526259,772

Current portion of long-term debt and bonds10,24369,999758,648

Provisions - current13650,936617,969

Other current liabilities11,2442,48937,673

Total current liabilities11,761,28510,806,238

Bonds10,241,056,0701,081,778

Long-term debt10, 14,24797,789604,968

Long-term advances received44,05043,086

Defined benefit liabilities12411,624171,914

Provision for other long-term employee

benefits232,558214,238

Provisions131,410,6181,422,824

Deferred tax liabilities201,471,6671,484,205

Other non-current liabilities11,2485,45597,994

Total non-current liabilities5,509,8315,121,007

Total liabilities17,271,11615,927,245

Equity

Common stock152,139,3172,139,317

Capital surplus1,560,6501,560,650

Retained earnings17,812,60616,301,812

Accumulated other comprehensive income

(loss)15(50,707)101,976

Other15151,040151,040

Total equity21,612,90620,254,795

Total liabilities and equityW38,884,02236,182,040

5 year projection (DAS MOTORS)

No. of yearsno. of cars/dayno. of cars/monthNo. of units sold/yearAverage revenueaverage costaverage profit

11030036005670000000565200000018000000

2206007200113400000001130400000036000000

33090010800170100000001695600000054000000

440120014400226800000002260800000072000000

550150018000283500000002826000000090000000

8. Organization

9. Implementation Plan

The main purpose of our promotional strategy is to create awareness about the product we offer in the market. We are very much clear about the existing situation of our business and we want to expand our business with a very fast pace. We are trying to co.ordinate our work with specialists. We have hired a team who will be interpreting the performance results. We have also set such a network, through which we can get the feedback about the product and its specifications. Feedback helps the company in determining its pros and cons. As the kia is largest automobile company in south korea so we are trying to cater masses here in Pakistan through effective promotion and by providing superior customer value at reasonable price. Our advertising campaign is highly effective and we have invested a huge amount in it. Initially we have started our business in Karachi but later on we will be moving towards the every corner of Pakistan.

Our goal is not to maximize the profit so we try to give our best in facilitating the target market.

We treat our customers as custowners, means customers are the owners of the business and employee are considered as an asset to the company. We have hired a very qualified staff and technically smart labor, who will be working with a great zeal in order to provide total customer satisfaction.

10.Evaluation and Control

In this phase of marketing we have to compare the results with our plans we made. We will be making sure that either the plan matched up with the results or not. If no, then we will be having few corrections and alterations in order to meet with the marketing objectives. Time factor is very important, we need to make sure that all the things are getting done on proper time or not. We also will be analyzing our sales revenue either it is more than the expected or less than the expected. If it is less then why? What could be the reasons? Either people enjoy our product or not, if not then what should be done to overcome the problem. With the passage of time we will be making changes in our policies as per the customer needs.