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10 STEP Marketing Plan for Israel’s LPG

Israel’s LPGOctober 2010 Product

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10 STEPMarketing Plan for ISRAEL’S LPG

Israel Bombasi October 2010 Product

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5 Steps for Part 1(PTM and positioning)

1. Identify your target (PTM)2. What do they need (NWE)3. What are they choices

(competitors)4. Where is the opportunity (gap)5. How big is the market (3Cs)

5 Steps for Part 1 (PTM and Positioning)

1. LPG is use in all households2. Who want convenience3. Can choose Israel’s LPG(M-gas),

etc.4. Gap is all other brands focus on

quick service/delivery or savings5. The market size is P 305,550.

Israel’ LPG niche is P76,387,00.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Product7. Price 8. Promo 9. Place 10. Generic Winning Strategy of Mix

5 Steps for Part 2(Marketing Mix & Strategy)

6. Israel’s LPG- M-gas7. Is 10% lower8. Uses signage,

leaflets,cards, directional sign

9. Is distributed within subdivision and nearby houses

10. Uses a niche approach to win

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Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1.My primary target market (PTM) is..

Demographics (13-60, M/F, A,B,C, single/married)

Lifestyle (tambay,student,working,retired)

Behavior ((.36 kg, 3x a day, P20/day, blue flame, long lasting)

1.Close-up primary target market (PTM) are the “teens” at heart

Demographics (13-24, M/F, social class ABC, single)

Lifestyle (study, just starting work, pa-cute towards the opposite sex)

Behavior (.36 kg, 3x a day, P20/day, blue flame, long lasting)

2. My PTM’s NWE

Needs from Maslow’s hierarchyWants determine choiceExpectations from the product

Note: for multiple answers, underline and use bold font for the best answer. See examples that follow

I want to be loved

I am complete when I have lifetime romantic partner

2. My PTM’s NWE

House holds needSafety needs for security and protection

House holds choose Israel’s LPG over other LPG because of ….

Standard LPG tank, safety, packaging, price, credibility& awareness of distributor, brand; LPG regulatory and safety standards approval.

House holds expect that when they buy Israel’s LPG(M gas) they bought the exact 11 kg ,and long lasting.

3a. Direct and indirect products that address my PTM’s NWE

List of Competitors products/ brands

Determine the variables that affect choice of product, brand

3a.Israel’s lpg has many formidable competitors

Direct: Shellane, Gasul,Total,Caltex Island,Asenso,Estrellita,BMG,TSP

Indirect: Charcoal users, Kerosene users,electric users

Variables: Age, Price, packaging, specific use, convenience of use, availability, Occasion of use, brand

3b. Competitive Position Map

Critical Variables1. Price2. Availability Make a position map plotting the

different competitors

2 Examples of Position Map

1. 600 vs. 6502. M-Gas (low price) vs. Generic

brands 10-15% high

Ensure exact weight= represent relative market shares of M-gas

Israel’s LPG niche: low priced product for households

Price/ Age Matrix

13-24 yrs 25-49 yrs 50yrs up

High price

Low Price

Shellane,Caltex,GasulTotal

Israel’sLPG

M-gas AsensoTSP-Estrellita

Price vs. Age Matrix

Israel’s LPG unique positioning is shown in this competitive map

Many competitors in prevent tooth decay and saves money positioning.

Positioning vs. Brand Matrix

Israel’s LPG unique positioning is shown in this competitive map

Exact Weight M Gas Estrellita Gasul Shellane

Safety standards

Branded

24/7 availability

Positioning vs. Brand Matrix

Many competitors just deliver the product and does not extend value added service.

4. Identify the gap between customers and competition

Where is the marketing opportunity?Households-Industrial-TransportationWhat NWEs are not being addressed?Efficiency-availability-costWhat can be the unique selling

proposition for the productLow cost and focus service

4.Israel’LPG positions strongly in a niche market opportunity

Israel’s LPG is the only LPG distributor that gives better service/for households extends extra service/no delivery charge who want to have confidence and

security when it comes to cooking and safety.

No brand has a similar position.Others focus on product alone, low price

and large segments

5a. Estimate the market size using competitor data

1. Top 4 Corporation Data or news Total Sales of lpg 290,700,000

2. LPG (290 billion)vs. Petroleum(1.1 trillion) 3. vs. 1-1 suppliers4. Visual observation- warehouse5. Pirating personnel or garbage6. Illegal interview7. “Share of Shelf”

5a. Based on competitor data, lpg market is P290billion

SOURCE: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html

5b. Estimate the market size using company data

1. Claimed market share2. Guesstimate on market share

Fair share of market Distribution extent

3. Historical sales

5b. Based on taxes and remittances data, where M gas share is 25%,(muntinlupa area) total market size is 8million

1. Licensing and tax sales is P8 million

2. M gas claims market share of 25%

3. Then total lpg market size is P8 million(0.25) = P2 million

5c. Estimate the market size using customer data

1. Usage per day or per year Per household 20 per day or .36 kg per day

5c. Consumer data indicates a size of P43 billion

LPG Usage:

60 million Filipinohousehold cook average of 3x per day using .36 kg/day lpg which costs around P6.6 per cooking

60 M x 3 x P6.6 X 365 = P43 billion

5. Concluded that lpg market in Muntinlupa is 2 million

1. Competitor data= P6 m

2. Company data = P2 m

3. Usage data = P 10 m

Use instinct and best business judgment to finalize market size

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Photo of product category

Show a product shotYour product and your competitorswith, without box as they look in the

supermarketAll pack sizesAll variantsAll major brands

6a.LPG category is dominated by 4 major brands

Product shot 1 of direct competitors

Product shot 2 of indirect competitors

How product looks in supermarket shelves

6b. Product Description

LPG tank 11 kg. in dark blue color cylinder tube.

There are 4 sizes, 2kg, 11kg, 22kg, 50kg.

6b. Product Description

M-gas is a liquefied petroleum gas that has blue dark color in cylinder tube Its ingredients are alkane hydrocarbons with propane.

There are 4sizes, 2.0 kg, 11kg, 22kg

and 50 kg.

7. PriceShell Calte

xGasul Total M

gasStrelita

Senso

2 kg 162 160 158 156 138 151 150.5

11 kg

600 610 605 600 580 615 605

22kg 1,300

1,350

1,325

1,250

1,095

1,175 1,170

50 kg

2,635

2,600

2,655

2,605

2,500

2,580 2,590

7. Price- M-gas is 10% lower priced in affordable M-gas 2 kg =P138 M-gas 11 kg = P529 M-gas 22 kg= P1,058 M-gas 50 kg=P 2,475

M-gas is priced 10% lower than other brands with aim of maximizing profits in its niche

8a. Promo

Advertising Sales Promotions Public Relations Direct Marketing Personal Selling

8a. Promo

Samples

Discounts-leaflets-cards-free delivery

8b. Competitor promo

The top LPG and petroleum companies have a strong commercials in TV, News papers, and Radio.

In the market of generic lpg we can only promote through leaflets, tarpaulin, and contact numbers, and word of mouth, we fight like guerillas where the big ones doesn’t have presence and maximize potentials.

8b. Competitor promo

Samples

leaflets-free delivery

9. Place

Where is your product available? Supermarkets, sari-sari stores,

convenience outlets, drugstores Nationwide or in key areas only? Method of delivery (some products

can be delivered to your home, ordered via internet, phone orders, etc.)

9. M-gas is distributed in metro manila

Sari-sari stores, distributor outlets, selected depot areas, market stalls

Pick-up by customers Cash and credit transaction

10. What is the generic winning strategy?

Which of the 4 strategies are being used? (bold and underline the most dominant strategy) Low Cost Producer Supply and Distribution Leverage Differentiation Niche

10. M-gas is a niche

M-gas main strategy is to develop the niche market of 13 to 60 year old member of households.

It benefits from the commercials of the big 4 promoting LPG.

Has a low cost price, excellent product distributed in metro manila.

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SUMMARY The 20 year marketing plan gives us a direction and guide

each step to take to see where our business is going the way we want it to be.To adopt and develop marketing strategies and plan. To identify opportunities and gain milleage over

competition. To satisfy the needs, wants and expectation of the customer. To satisfy the 3c’s which would result in profit.

5 Steps for Part 1(PTM and positioning)

1. Identify your target (PTM)2. What do they need (NWE)3. What are they choices

(competitors)4. Where is the opportunity (gap)5. How big is the market (3Cs)

5 Steps for Part 1 (PTM and Positioning)

1. Close-up PTM are “teens at heart”2. Who want to feel confident3. Can choose Colgate, etc.4. Gap is all other brands focus on

preventing tooth decay or savings5. The market size is P 12 Billion.

Close-up niche is P3 Billion.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Product7. Price 8. Promo 9. Place 10. Generic Winning Strategy of Mix

5 Steps for Part 2(Marketing Mix & Strategy)

6. Close-up toothpaste gel7. Is 10% premium8. Uses TV, movies and events 9. Is distributed nationwide10. Uses a niche approach to win

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YOUR ASSIGNMENT AS A MARKETING STUDENT

My Recommendation:

Follow the 10 steps in order to produce a logical marketing plan

Your Assignment

Use this template to make your marketing plan for a product or company that will also be the topic of your STRAMA

Ensure only those with are included in report

Follow power presentation principles