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Marketing Plan for Auto Knights, Inc. November 11, 2008 Marketing Team Kolade Ajayi Cumba Dixon Pavel Hrynkevich Albert Manzano Biby Mathew Diane Turner MARK 6305 – Value-based Marketing Dr. Scott Wysong Fall, 2008

TABLE OF CONTENTS EXECUTIVE SUMMARY....................................................................1 COMPANY BACKGROUND ..............................................................4 MISSION STATEMENT......................................................................5 OBJECTIVES.....................................................................................6 ENVIRONMENTAL ANALYSIS..........................................................7 SWOT ANALYSIS............................................................................14 MARKETING RESEARCH ...............................................................18 TARGET MARKET...........................................................................25 PRODUCT/SERVICE........................................................................27 PRICE...............................................................................................29 PLACEMENT....................................................................................32 PROMOTION....................................................................................35

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Executive Summary
Auto Knights, Inc. is a new business venture that will offer routine automotive maintenance services. Our goal is to become the brand name that the auto driver automatically thinks of when requiring auto services. The following information includes a comprehensive marketing plan that will be used to launch the business in the first quarter of 2009. For purposes of this plan, the following Assumptions are to be made: • Auto Knights, Inc. is a fully-funded start-up company. • All funding required for marketing initiatives has already been factored into the overall business plan budget. Our Mission Statement clearly defines our purpose of being the leader in the routine automotive maintenance field as well as excelling at customer care. The primary Objectives are to 1) increase brand awareness to 20% by 2009 2) capture 10% of the target market by end of 2011 and 3) open two new locations by end of 2011. By completing a comprehensive Environmental Analysis, we learned that our two major competitors are Pep Boys Auto and Christian Brothers Automotive. Several current trends will both challenge our company and also offer some unique opportunities for growth. Our SWOT analysis is based on market and industry research as well as an indepth review of the owners’ perceived strength and weaknesses. Strengths: • We offer services during non-traditional business hours as well as night appointments. • Flexibility that results from being a small business; therefore we are able to quickly react and respond to rapidly changing local market conditions. • One owner has previous automotive maintenance service experience as well as extensive industry knowledge. Weaknesses: • Consumers have a lack of brand awareness. • Limited service coverage area due to the fact we have only one facility. • The industry labor pool of certified automotive technicians available for hire is very small.

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Opportunities: • Limited competition during our non-traditional hours of operation. • Aftermarket automotive maintenance providers are outperforming traditional auto dealership services for routine automotive repair services. • Due to substandard customer care and quality in the industry, Auto Knights, Inc. has the opportunity to become the leading provider of excellent customer care. Threats: • Lack of available supplier parts to replenish Auto Knights, Inc.’s inventory during night hours. • Auto dealerships are now targeting the same automotive routine maintenance market. • Due to the slowing economy, people are driving less, thereby reducing the demand for maintenance services. The primary and secondary Marketing Research reinforced the company founders’ belief that there is a market for excellent auto services offered outside of normal working hours. This research also confirmed that our proposed Target Market has the correct customer base and location for our new company. Determining the correct Price was based on analyzing the competitors’ pricing strategy as well as performing a breakeven analysis. By offering services outside of normal business hours and including an optional pickup/delivery service, we believe customers will be willing to pay a slightly higher fee for the same services offered by our competitors. The Placement of our initial business location is at 1234 Carroll Avenue in Southlake, Texas. According to our research, the population of Southlake and the surrounding areas of Grapevine, Colleyville, Trophy Club and Keller meet our target demographic market. Locating our business at the intersection of Carroll and Southlake Boulevard will provide a convenient, central location as well as high-visibility. Additional locations will be opened in the Plano/Frisco and Highland Park areas of the Dallas-Forth Worth Metroplex. We will promote our services in Southlake and the surrounding areas by use of Integrated Marketing Communications (IMC). Our IMC approach will be comprised of an internet website, sales promotion items, direct marketing campaigns and various advertising tools such as radio and print ads. Implementation of our marketing plan will begin in January, 2009, when we begin advertising our new venture in preparation of the Grand Opening which is scheduled for end of first quarter of 2009.

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To measure the success of the marketing plan, a formal Evaluation of how well the company’s stated objectives have been met will be conducted. This will be accomplished by analyzing the company’s profit/loss and growth at the end of each of the three years – 2009, 2010 and 2011 – covered by this plan. Auto Knights, Inc. will also rely heavily on the customer feedback surveys to capture the customer satisfaction ratings.

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Company Background
The concept for Auto Knights, Inc. was realized on January 15, 2008, by six working professionals who met in the waiting room of a local automobile dealership in Dallas, Texas. Each expressed dissatisfaction and frustration with the lack of decent customer care and honest service in the automotive repair industry. They all agreed that there was a market for a repair service that catered to the convenience of customers due to their hectic working schedules. From this initial conversation, the idea of forming an automotive repair company that catered to busy professionals and families was introduced. The founders continued to meet on a weekly basis and further refined their vision of Auto Knights, Inc. The goal was to create a successful automotive maintenance company that specialized only in routine automotive services and repairs while providing excellent customer service for most light passenger vehicles. While other companies offered the same services, Auto Knights, Inc. would differentiate itself by offering the services during non-traditional working hours, thereby allowing the customer more flexibility to schedule car repairs. An optional, premium service would be to pick up and return the vehicle to the owner’s residence or place of business. The founders of the company invested their own money in the sum of two million dollars each. With funding secured and the business plan in place, Auto Knights, Inc. plans to open for business in the first quarter of 2009. The Board of Directors has voted to hire a marketing firm to promote the company’s launch and to establish a considerable market share for Auto Knights, Inc.

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Mission Statement
“Auto Knights, Inc. strives to be the premier provider of superior routine automotive maintenance services within our service areas. We cater to the busy lifestyles of professional individuals and families in our local community by providing excellent service, customer care and convenience 24 hours a day.” Core Values: • • • • We value and respect our employees by promoting a fun and upbeat workplace. We consistently strive to exceed our customers’ expectations by providing a quality, timely and responsive customer experience each and every visit. We support activities that have a positive influence for our local youth. We believe in a responsibility to our community by consistently following best practices to ensure a safe and eco-friendly environment.

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Objectives
Auto Knights, Inc. formulated the company objectives based on both the Environmental/SWOT analysis and the market research. Both avenues of information indicated the absence of automotive routine service providers offering non-traditional hours of service. Based on the perceived limited direct competition, Auto Knights, Inc. should be able to easily achieve the stated objectives. The following objectives have been established on a “per year” basis for each of the first three years of operations. Year One (2009): • • Capture at least 3% of the auto maintenance service consumers in our target area. Increase brand awareness from 0% to 20%.

Year Two (2010): • • Capture at least 7% of the auto maintenance service consumers in our target area. Obtain a sales profit of $1,000,000.

Year Three (2011): • • • • Capture at least 10% of the auto maintenance service consumers in our target area. Gain a 14% brand penetration of the routine automotive maintenance services market in the Southlake area. Based on the customer feedback surveys, achieve a 95% overall customer satisfaction rating and a 90% willingness to recommend. Open two new locations in similar target markets in the DFW area: o Plano/Frisco o Highland Park

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Environmental Analysis
Competitor Analysis Competition is inevitable, especially when one company dominates the playing field and is rewarded easily with substantial profit. One by one, the market is accepting the companies who are able maintain a profit, increase customer standards and promote affordable prices for products and services. The aftermarket automobile maintenance industry is now saturated with corporate franchises and independent service providers. Auto Knights, Inc. is on par with its two primary competitors - Pep Boys Auto and Christian Brothers Automotive. The following analysis provides a brief synopsis of the primary competitors. This information was obtained from each of the competitors’ websites (Pep Boys Auto1 and Christian Brothers Automotive Corporation2 ). PEP BOYS AUTO 3 Primary website: www.pepboys.com Mascots: Manny, Moe, and Jack Slogan: Parts, Services and so much more Main Headquarters: Pep Boys 3111 W. Allegheny Ave. Philadelphia, PA 19132 Main Phone:215-430-9000 Fax: 215-227-7513 Toll Free: 1-800-737-2697 Stock Symbol: PBY-NasDaq Stock Market Brief History of Pep Boys Auto The company website, www.pepboys.com, tells of how the well-known Pep Boys Auto came into existence. In 1921, there were four Navy friends who pooled whatever money they could which totaled about $800. Using this initial investment, these friends opened the very first auto parts supply store in Philadelphia. The company continued to do business and opened two more locations in Los Angeles, California. The business eventually established itself as a multi-billion dollar company. Today, in 2008, Pep Boys Auto states that they have 560 stores in the United States as well as stores located in Puerto Rico. Pep Boys Auto Company Profile Pep Boys Auto has gained a reputation for being the ideal shop for those who want to repair their own vehicles, instead of spending the money to have the
1 2

www.pepboys.com www.cbac.com 3 http://www.hoovers.com/pep-boys/--ID__11472--/free-co-factsheet.xhtml

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vehicle fixed by a vendor. The company does business with clients of varying sizes by promoting top of the line products as well as independent automobile parts. Pep Boys Auto also provides onsite maintenance services to its customers. Pep Boys Auto is competitive in four targeted areas in the aftermarket industry: 1) do-it-yourself 2) do-it-for-me (service) 3) buy-for-resale (sales to professional garages) and 4) tire sales. Pep Boys Auto provides the following products and services for its customers. These products and services may vary depending on the location of the business in the United States and Puerto Rico Oil & Filter Change Engine Air Filter Replacement Cabin Air Filter Replacement Radiator Repair and Replacement Coolant System Drain and Fill Coolant Hose Repair and Replacement Brake Fluid System Drain and Fill Transmission Fluid System Drain and Fill Power Steering Fluid System Drain and Fill Differential Fluid Drain and Fill Fuel Filter Replacement Fuel System Cleaning Timing Belt Replacement Serpentine Belt Replacement Tire Rotation Tire Mounting and Balancing Wheel Alignment Safety Inspections Emissions Testing Christian Brothers Automotive Corporation4 Primary website: www.cbac.com Mascot: Unknown Slogan: Unknown Main Headquarters: Christian Brothers Automotive Corporation 15995 N. Barkers Landing Suite 145 Houston, TX 77079 Phone: (281) 870-8900 Fax: (281) 870-1200 Stock Symbol: Unknown

4

http://www.hoovers.com/Christian-Brothers-Automotive-Corporation/-HD__fhtfhcfjr,src__dbi--/free-co-dnb_factsheet.xhtml

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Brief History of Christian Brothers Automotive Corporation Christian Brothers Automotive Corporation (CBAC) shares on their website www.cbac.com of how the company laid the foundation and became the profitable company that it is today. The story begins with the primary owner, Mark Carr, who founded the company in 1982. Even though Mr. Carr had limited experience in repairing and maintaining automobiles, the customers were quickly astounded by his professional treatment, especially by his sincere honesty and integrity. Mr. Carr realized that customers had been treated inappropriately and that his method of conducting business was very untraditional in the automotive industry. He continued providing quality customer service to his clients and running his business on structurally sound ethics and morals. In 1997, Christian Brothers Automotive Corporation teamed up with an investment company to open several new locations in strategic areas in order to promote and grow the business. In 2008, Christian Brothers Automotive Corporation has 41 locations in 7 different states - Alabama, Georgia, Kansas, Missouri, Oklahoma, Tennessee and Texas. Christian Brothers Automotive Corporation Company Profile The company’s primary mission and purpose objective found on the website states “To glorify God by providing ethical and excellent automotive repair service for our customers, according to Colossians 3:17” and “And whatever you do in word and deed, do all in the name of the Lord Jesus, giving thanks through him to God the Father.” Christian Brothers Automotive Corporation provides the following products and services to its customers: Oil & Filter Change Engine Air Filter Replacement Cabin Air Filter Replacement Radiator Repair and Replacement Coolant System Drain and Fill Coolant Hose Repair and Replacement Brake Fluid System Drain and Fill Transmission Fluid System Drain and Fill Power Steering Fluid System Drain and Fill Transfer Case Fluid Drain and Fill Differential Fluid Drain and Fill Fuel Filter Replacement Fuel System Cleaning Timing Belt Replacement Serpentine Belt Replacement Tire Rotation

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Tire Mounting and Balancing Wheel Alignment Safety Inspections Emissions Testing Legal and Political Environment The name of the game is revenue and how much of it a company can earn. If a business has an untapped strategy or tactic, the company should exploit it to dominate the target market industry. When this happens, there is usually a backlash to the competition because certain products and services or information that results from this new strategy or tactic are not readily available to the competition. A great example is the automobile industry. Car manufacturers must invest large amounts of funds necessary for research and development. They recoup the initial loss by economies of scale and, in return, receive a profit from sales to the industry communities of interest. The data pertaining to the newly developed vehicle parts specifications and specialized methods of vehicle repair is kept confidential from independent auto repair shops and public consumers. The only group who has access to this information is the car dealerships who safeguard the sought after data and overcharge the consumers for maintaining the car. This is one of major hurdles that Auto Knights, Inc. has to face, and it has a crucial impact on our business. Auto Knights, Inc. is among the thousands of independent automobile maintenance shops registered in the United States that are affected because of the inability to have access to this information. “Shops reportedly found that either “much of the data” or “some of the data” was missing from information provided by car companies”. 5 How are independent auto repair companies to stay in business when they are literally turning away clients because certain repairs require the technical specifications to which the independent providers are not privy to, but are essential to perform the service? Research shows that “independent repair shops turn away 1.2 million consumers each year because of a lack of repair information. Based on those numbers estimates that the independent aftermarket is losing $5.8 billion in service and parts sales annually because of the inability to access the necessary repair information.” 6 When issues similar to the ones stated above arise, shortly thereafter comes the intervention of the United States government. Currently, there is a legislation bill being debated in Congress entitled Motor Vehicle Owners’ Right to Repair Act. The purpose of this legislation is to require automobile manufacturers to provide information to independent automobile maintenance shops. This will allow
5

Moore, Bob, “Repair accessibility Issues Heard Loud and Clear,” Aftermarket Business,116 (November 2006): 11 6 Moore, “Repair accessibility Issues Heard Loud and Clear,” 11.

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equitable competition with the auto dealerships. Unfortunately, groups such as the National Automobile Dealers Association Political Action Committee (NADA PAC) represent those who do not wish for this bill to pass. An organization like the NADA PAC “gave $2.9 million to House and Senate candidates. In addition, the owners of car dealerships and their executives gave another $4.25 million.”7 If the legislation is not passed, Auto Knights, Inc. will continue to experience a diminished ability to perform all car repairs and services. The company must take the necessary steps to ensure that a profit will be realized within the first three years of operation. While Auto Knights, Inc. is powerless as a singular independent business owner, as more and more independent auto shops interconnect and demand that the relevant information be shared, there is a larger chance of the independent repair shop surviving. As a result, Auto Knights, Inc. will be able to provide a higher standard of products and services to those customers who prefer patronizing the aftermarket industry instead of auto dealerships. Trends in the Automobile Industry Trends are another obstacle that Auto Knights, Inc. faces, but it comes with the territory when targeting a profitable area of the aftermarket industry. Trends come and go similar to seasons, but some trends have a heavier impact than others, just like the seasons. Trends are nothing more than a window of opportunity to capture as much revenue as possible. These windows of opportunity are a result of a “weakness” in the automotive industry and are often exploited to turn a profit. When one industry market performs at poor standards, the customers voice their opinions by choosing another market. It is almost like a see-saw effect. Usually, when a market performs poorly and customers are dissatisfied, there is always another market to pick up the slack and turn a loss into a profit from those dissatisfied customers. Consider the automotive industry and the aftermarket industry. Customers have differing experiences within these two industries, and some express opinions that car dealerships (automotive industry) are notorious for providing unacceptable customer service. “According to the May 2008 issue of Consumer Reports, more Americans (71 percent) are very satisfied with independent repair shops for vehicle service than new car dealers (53 percent)”8 Once these customers actually utilize an independent repair shop, they experience the quality work and affordable services which are within their budget. “As evidenced by the Consumer Reports study, millions of car owners trust the independent repair shops to provide affordable and competitive automotive repair service.” 9 As a
7

Barlas, Stephen, “Debating Right to Repair,” Aftermarket Business, 118 (February 2008): 2 Anonymous. (2008). Automotive Aftermarket Industry Association; Higher Level of Satisfaction With Independent Repair Shops Than Dealership. Pg. 239. Retrieved October 25, 2008, from University of Dallas ProQuest Database (1544383301) 9 Anonymous. (2008). Automotive Aftermarket Industry Association; Higher Level of
8

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result, a lucrative window of opportunity exists for Auto Knights, Inc., which is a part of the aftermarket industry, when customers are dissatisfied with the automotive industry. Another trend occurring currently in the market is that original equipment manufacturers (OEM) and car dealerships are attempting to re-kindle the relationship with previous customers as well as current and potential customers. These businesses are finally realizing that it does indeed take more money to recapture an old client as opposed to attracting a new customer. “The dealerships are actively looking to extend their relationships with vehicle owners beyond that three-time window.” 10 The reason why some dealerships are resorting to this strategy is because of low sales and a customer base that is fleeing toward the aftermarket independent auto repair provider who will actually cater to the customer’s needs. Dealerships are starting to take notice, and, before they become a victim of their own tactics and put themselves out of business, the dealerships are changing the approach to customer relations. This change in approach within the automotive industry is a very real threat to the success of Auto Knights, Inc. Another trend that is occurring in the automotive industry is that car dealerships are entering the automobile body repair market once again. As a result, customers are able to move back and forth between the automotive and aftermarket industries to get the best deal at the most affordable prices. “In an era when more and more auto dealers seem to be staying out of the body shop business, those dealer body shops that do remain seem to be thriving.”11 Many dealerships are taking the initiative to work with all types of insurance companies to ensure that the dealership gains the customer’s business which will increase profits substantially. “Customers tend to be more satisfied when the shop that works on their vehicles is on their insurance company’s list of recommended repair shops.”12 Customers are actually getting the best of both worlds when the insurance company is directly involved with the dealership as this direct relationship relieves the customer of having to personally file a claim as well as alleviating any concerns that there will be no remediation if the dealership performs substandard repair work. Auto Knights, Inc. will seize this opportunity by working with insurance companies to be included in the list of recommended repair shops.

Satisfaction With Independent Repair Shops Than Dealership. Pg. 239. Retrieved October 25, 2008, from University of Dallas ProQuest Database (1544383301) 10 Clapper, Casey, “Dealerships Move to Capture More Repair Dollars,” Motor Age 126 (March 2007): 22. 11 Engebretson, Joan, “Body Shop is Key Profit Center for Dealership,” Automotive Body Repair News 47 (March 2008): 3 12 Harris, Donna, “Study:Insurer Referrals Benefit Body Shops,” Automotive News 81 (February 2007): 6241

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Social and Cultural Environment Auto Knights, Inc. believes strongly in corporate and social responsibility which is defined “as taking the steps to improve the quality of life for the employees and their families as well as for the local community.”13 Auto Knights, Inc. actively supports and provides a positive influence to the Southlake youth community by: • • Sponsoring youth recreational sports teams. Working with the Southlake Independent School System during career days to provide tours of the Auto Knights, Inc. facility and educate the students about the automotive industry.

Auto Knights, Inc. takes its responsibility to the community for a safe and ecofriendly environment very seriously by consistently following the automotive industry’s best practices in protecting the environment. Technological Environment Auto Knights, Inc. uses the following technological advances in automotive repair: • • • State of the art automotive maintenance facility with an automated pulling system. The facility has been recognized with the Blue Seal of Excellence by the National Institute for Automotive Service Excellence. All technicians are ASE (American Service Excellence) Master certified.

13

http://en.wikipedia.org/wiki/Corporate_social_responsibility

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SWOT Analysis
Internal Strengths • • The founders invested their own capital. Therefore, there is no accountability to outside investors. Auto Knights, Inc. has the flexibility resulting from being a small business: o Able to quickly react to changes in the local market. o Absence of bureaucracy in the decision-making process. Auto Knights, Inc. management has a rich cultural diversity and wealth of various business experiences. This background will guide the strategic vision and direction of the firm as well as helping to prevent negative group think. One of the founders has previously worked for an automobile repair company and has a robust understanding of the inner workings of the automotive maintenance industry. Auto Knights, Inc. offers routine maintenance services during nontraditional business hours, including overnight service. Auto Knights, Inc. will pick up and return a vehicle to either the customer’s residence or place of business. Auto Knights, Inc. specializes in routine maintenance services for both foreign and domestic light vehicles, thereby ensuring a large potential customer base. All technicians are board-certified. Auto Knights, Inc. utilizes a database that contains detailed information on all manufactured vehicles and repair parts.





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Internal Weaknesses • • The founders have a lack of experience in starting and growing a small business. The founders are working professionals who have elected to continue pursuing careers outside of Auto Knights, Inc. Finding time to support and develop the business is a potential risk.

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There is a lack of qualified, certified automotive technicians available for recruiting and hiring. Filling vacant positions or increasing the staff may be a challenge. As a new business, Auto Knights, Inc. has not established local business contacts and relationships. There is minimal public recognition of the Auto Knights, Inc. brand. The founders are not able to fund any additional capital. Therefore, until the business shows a profit, there will be no opportunity to expand the business. Also, if the business incurs repeated losses, there is a considerable risk that the business will fail as there are no financial reserves. Customers may be hesitant to trust Auto Knights, Inc. with transporting the vehicle to and from the service facility as the company has an unknown reputation with the public. Auto Knights, Inc. has only one location at this time, so the service area for the pick up and delivery service must remain limited. This will limit the number of customers that can be reached.

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External Opportunities • Due to rising fuel costs, people are keeping vehicles longer than in the past. Older cars require more maintenance services. This affords Auto Knights, Inc. the opportunity to develop a longer relationship with the customer. There is limited competition for the “non-traditional hours” business as few automotive services in the area are open 24 hours a day, 7 days a week. There is considerable customer frustration about the lack of customer service in the automotive service industry. Auto Knights, Inc. can benefit from this situation by differentiating itself from the competition by having superior customer care. The aftermarket auto maintenance business is still out-performing auto dealerships and is not going away anytime soon. 14

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14

Angell, Sue, “Automobile Dealerships vs. the Aftermarket,” Aftermarket Business 117 (September 2007)

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• •

The market for auto services is showing strength during rough economic times. 15 Auto Knights, Inc. is located in Southlake, TX, a higher-income area, which will better support the additional fee that will be charged for the pick up and delivery of the vehicle. As there is minimal public transportation in Southlake, the majority of residents use personal vehicles for transportation. This translates into a large potential customer base for Auto Knights, Inc. Customers traditionally spend many hours waiting for automotive services to be performed. As a customer’s time is valuable from both a professional and personal perspective, Auto Knights, Inc.’s pick up and delivery service will save the customer time and money by freeing the customer from waiting on the service. This will be an important selling point in earning the customer’s business. Auto Knights, Inc. will offer only a limited choice of automotive repair services upon opening for business even though there are many other potential automotive maintenance/repair services that could be offered. Once Auto Knights, Inc. is a trusted, profitable company, it will be relatively easy to move into new market segments and offer expanded services as the physical infrastructure and solid customer base will already be established. Auto Knights, Inc.’s pricing strategy, which is based on research of competitor pricing, will allow the company to offer exceptional customer service at very affordable prices. As there is a need for automotive maintenance services in geographical areas outside of Southlake, Auto Knights, Inc. could be franchised into most areas that do not currently have a 24 hour, 7 days a week automotive service.











External Threats • •
15

There is a lack of parts inventory available for purchase by Auto Knights, Inc. during the night hours. 16 Auto dealerships are attempting to capture a larger share of the auto repair services market. Dealerships are targeting vehicles with 90,000

Entertainment & Travel editors from staff and other reports. Copyright 2008, Entertainment & Travel via <http://www.verticalnews.com> VerticalNews.com. 16 Niederkohr, Tschanen, “All Night Repairs Have Little Effect on Traditional Distribution Channels,” Aftermarket Business 117 (October 2007): 10.

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miles and greater because of the high-price to fix and maintain these automobiles. Auto Knights, Inc. is also targeting the same market. 17 • • Dealerships are offering more incentives to customers to maintain vehicles with 90,000 miles or greater. 18 Dealerships are offering extended warranties and auto repairs outside of the more typical 3-year warranty. This will encourage the customer to visit the dealership instead of independent maintenance services such as Auto Knights, Inc. 19 Due to the slowing economy and rising oil and gas prices, people may limit driving. Less driving results in longer times between necessary routine maintenance services which will lessen repeat business for Auto Knights, Inc. 20 There is a potential risk that the customers will not adopt the pick up and delivery service due to concerns about the vehicle’s safety during transport. A major competitor, with a deep capital base and bulk-based pricing, could offer Auto Knight, Inc.’s unique pick up and delivery service for lower consumer prices.







17

Clapper, Casey, “Dealerships Move to Capture More Repair Dollars,” Motor Age 126 (March 2007): 22. 18 Clapper, “Dealerships Move to Capture More Repair Dollars,” 22. 19 Clapper, “Dealerships Move to Capture More Repair Dollars,” 22. 20 “Gasoline Prices Dent Car Repairs,” Wall Street Journal, July 30, 2008

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Marketing Research
The purpose of the survey was to determine customer demand for our service which is 24-hour automotive routine maintenance services. The survey assisted in specifying our target market, provided the necessary information for our pricing strategies and encouraged feedback from the respondent’s previous automotive car service experience so that we can ensure better customer satisfaction. The answers to the following seven major questions provided significant insight into the consumer thoughts and aided in determining if there is a window of opportunity in starting up an all night automobile routine maintenance shop. 1. Would you use an automotive service that is open 24 hours a day? 2. Thinking of the last time you chose an automotive maintenance service facility, what was the most important factor in the selection? 3. How likely would you be to pay a nominal fee for services provided outside of normal business hours? (Normal hours being defined as Monday to Saturday 7 AM to 6 PM) 4. How likely are you to allow a 24-hour automotive maintenance service to pick up your car, complete the necessary work and return it to your residence or place of business? 5. What is the largest fee you would pay for the service to collect and return your vehicle to your residence or place of business? 6. How many miles are you willing to drive for automotive maintenance services? 7. Based on your previous visits to automotive maintenance service facilities, please tell us about your worst experience. Research Design Our research design consisted of an internet survey. The survey contained ten questions with seven questions being closed-ended and three being open-ended (See Customer Survey in Appendix.). The first six questions were directly related to the customer interest, pricing strategy and specification of the target market. Questions seven through nine were to give us data on our target market demographics. Question ten was to give us consumers’ feedback on their previous routine automotive car experiences. The Sample The sample consisted of 84 respondents. The majority of the respondents were from the Dallas/Fort Worth Metroplex area. The survey was a convenience sample distributed to students of the University of Dallas, family, friends and coworkers.

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Analysis of Results The data we received from the survey was very useful in determining our market strategy development. There are some cases where the survey results proved different than we what believed, but provided new opportunities for our marketing strategy. The analysis below consists of the results of the seven major questions mentioned previously. Please refer to the Appendix for an actual view of the survey in its entirety. Would you use an automotive service that is open 24 hours a day?

Ninety-four percent of the persons surveyed responded with an outstanding yes that they would use an automotive maintenance service that was open 24-hours a day. This confirmed that our service has a differential advantage over our competitors and that there is an interest to use our service. The information also showed that there is a potential market demand for the service so we have a window of opportunity to establish our business in those communities interested in our product and services.

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Thinking of the last time you chose an automotive maintenance service facility, what was the most important factor in the selection?

This question was crucial because it shows the important factors the consumers consider when choosing an automotive maintenance service facility. Our initial thought was that the “Hours of Operation” and “Days Open” were going to be the most significant factors for consumers. However, the results of the survey showed otherwise with “Quality of Repairs”, “Cost”, “Location” and “Customer Service” being the most significant drivers. While the data showed that our initial thoughts were incorrect, it is very possible those percentages were low due to the fact that currently no automotive maintenance service facility stays open 24-hours a day in the Dallas/Fort Worth Metroplex. Therefore, it may be possible that in the consumer’s mind, those were not important factors because no current automotive service has ever provided extended hours or days beyond the defined normal business days and hours. This provides an excellent opportunity for our company’s strategy because we are revolutionizing the common trend in auto maintenance. Our market strategy will be to encourage the consumer to realize that his or her time is very important and Auto Knights, Inc. will provide an important service in such a manner that the time spent on routine automotive maintenance service is minimal

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How likely would you be to pay a nominal fee for services provided outside of normal business hours? (Normal hours being defined as Monday to Saturday 7 AM to 6 PM)

The results showed that consumers are indifferent to paying a nominal fee for services provided outside the normal business hours as the percentages are spread out. This information is significant in the pricing strategy of our services for consumers who decide to bring their cars to our 24-hour automotive maintenance service shop.

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How likely are you to allow a 24-hour automotive maintenance service to pick up your car, complete the necessary work and return it to your residence or place of business?

The results showed us that consumers are most likely to utilize our specialized pickup/return service of the vehicle from either the residence or place of work. This indicates once again that this extra service we provide gives us a differential advantage and that consumers are willing to purchase this service, thereby supporting our business and marketing strategy. The data also verifies that our service is an excellent opportunity for revolutionizing the common trend in auto maintenance and that there is a potential market demand for the service. What is the largest fee you would pay for the service to collect and return your vehicle to your residence or place of business? The purpose of this question was to help us in our pricing strategy for picking a consumer’s car up and returning it to the residence or place of work. From the results of the survey, the price ranged from a minimum price of $0 to a maximum price of $200. The average price was $40 for the largest fee the consumer would pay for the service.

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How many miles are you willing to drive for automotive maintenance services? This question aided in our decision as where to locate the business. The results showed that the farthest a consumer was willing to drive for our 24-hour automotive repair shop was a maximum of 50 miles and a minimum of 2 miles. The average distance that consumer was willing to drive was 20 miles. This result, along with the demographics questions on age and income, greatly assisted in determining our target market. Based on your previous visits to automotive maintenance service facilities, please tell us about your worst experience. This was an important question because two of our objectives are customer satisfaction and customer recommendation. Learning about the worst experiences our potential clients had with our competitors showed us what paths not to tread if we want to succeed with our new business. This research data provides a beneficial advantage for us by enabling us to know how to service our future customers better. The results showed that our competitors lack quality and even minimal customer service. An underlying theme from the responses was a huge distrust in automotive maintenance service shops. Many people believed that the market lacks any integrity. Our marketing strategy is to address this issue by offering superior quality and customer service which are two factors that are vital to our company’s success. In order to implement a successful business and marketing strategy, we will learn from and then incorporate strategy that has proven successful by our competitors. Our company has passion. “We have passion for everything we do, from the cleanliness... to our award winning showroom.” 21 We have a chance to succeed where our competitors have failed on numerous occasions, even when they had a chance to redeem themselves as they never took the opportunity. We have done our research and are aware of our weaknesses, but “customer service is our strength and will continue to guide us into the future.” 22 Implications of Market Research “The key to service success is communication. That’s key. But it’s got to happen on both sides.” 23 This is absolutely true as we cannot provide service until we
21 22

Miller, Chris, “Thinking Outside the Bays,” Aftermarket Business 116 (January 2006): 1. Miller, “Thinking Outside the Bays,” 1. 23 Niederkohr, Tschanen, “All Night Repairs Have Little Effect on Traditional Distribution Channels,” Aftermarket Business 117 (October 2007): 10.

Marketing Plan for Auto Knights, Inc. Page 24

complete the research and determine the demand within our target market. We will ask our customers to speak up; we will listen and then provide the service they demand. The results of our research support our marketing plan strategy. Some of the results did differ from our initial thoughts, but we are able to see the opportunity the data presented that actually strengthen our strategy. “You have to be aware and take advantage of every opportunity……You can’t afford to lose customers.”
24

Overall, the marketing research did confirm the customer demand for a 24-hour automotive maintenance service as well as helping us to specify our target market. Our approach to pricing was also confirmed. The insight into the consumer’s experiences in regards to past automotive care experiences with our competition will prove invaluable in refining our approach to customer care.

24

Miller, “Thinking Outside the Bays,” 1

Marketing Plan for Auto Knights, Inc. Page 25

Target Market
Overview Auto Knights, Inc. realizes that customers utilize a vehicle daily to be productive and maintain a current lifestyle, whether it is to travel to and from work or to fulfill personal obligations. We recognize that customers have more important things to do throughout the day than wait while the vehicle is serviced. We also realize “people are driving their vehicles longer and therefore, doing more maintenance on them.” 25 Since Auto Knights, Inc. provides routine automotive maintenance services, the target market could be so broad as to include any person who drives and maintains a vehicle. However, due to our differential advantages of 1) offering services outside of normal business hours and 2) offering a pickup and delivery service, the Auto Knights, Inc, target market must be narrower and more focused due to the higher price that we charge for these advantages. Our marketing strategy is to help people relieve the stress of finding and obtaining routine automotive services by picking up and returning the car during hours when the owner does not need the vehicle, such as during the night. Based on all these factors, the target market for Auto Knights, Inc. is the working professional and/or family members who, due to their very busy lifestyles, do not have the time or desire to wait while automotive maintenance repairs are completed. Auto Knights, Inc. is providing these automotive maintenance services because it releases clients from the burden of taking the time to take the car into the shop. “If we can free up that time so you can do something else, it’s worth it and that’s what people are telling us.” 26

25

Entertainment & Travel editors from staff and other reports. Copyright 2008, Entertainment & Travel via <http://www.verticalnews.com> VerticalNews.com. 26 Niederkohr, Tschanen, “All Night Repairs Have Little Effect on Traditional Distribution Channels,” Aftermarket Business 117 (October 2007): 10.

Marketing Plan for Auto Knights, Inc. Page 26

Demographics

The first of the demographics to determine our target market was the age range. The results from the survey showed that 83% of the target market age range should be in the 25-55 age brackets.

The second of our demographics to help determine our target market was the yearly annual income of the respondents. The results from the survey show that 68.4% of the annual income fell in the $50,000-$100,000+ income brackets. We believe that the customers in the higher income brackets will be willing to pay for our services.

Marketing Plan for Auto Knights, Inc. Page 27

Product/Service
Auto Knights, Inc. will offer a robust selection of routine auto maintenance services. Since we are locally owned and operated, we take pride in being part of the local business community. We know and understand our target market because they are our neighbors and friends. Our professional and courteous staff will ensure that each customer is treated with the utmost respect. Our mechanics are highly trained and all are required to have at least 40 hours a year of continuing education. Each of our transport drivers is bonded and insured for the customer’s peace of mind. Our customers will benefit from our revolutionary vision of what a routine auto maintenance service should be. We will be open 24 hours a day, seven days a week with the exception of major holidays such as Christmas and Thanksgiving. Auto Knights, Inc. will offer a premium service to pickup and return the vehicle according to the customer’s personal schedule. We will also offer overnight service appointments so that the customer is never without his or her personal vehicle during the busy working or weekend day time hours. By taking advantage of this service, the customer will greatly reduce or even eliminate time spent on obtaining routine auto maintenance service. This is not only the vision of our company, but it is also what sets us apart from the competition. (See Appendix for a full list of services offered.) Value will be added to our service in many ways. We will offer non-traditional hours for the customer’s convenience. We will offer express checkout by allowing the customer to register a credit number that will be charged at the completion of each service, thereby eliminating the need for the customer to ever physically visit our facility to pickup his or her car. We will participate in a frequent customer reward program. For every ten oil changes, the customer will receive the 11th oil change free. (See Appendix for the frequent customer reward card.) Our brand uniquely describes who we are. The name of our company “Auto Knights, Inc.” lets the customer know that we are in the automotive service industry. The word “Knights” plays on the fact that we offer services during night hours as well as invoking an image of coming to the customer’s rescue. For our logo, we chose a stylized “knight in shining armor” that is holding a wrench for a sword and a tire for a shield, incorporating the literal meaning of “Auto Knights”. Our slogan “We Treat You Like Royalty” lets the customer know that he or she is our main focus and number one priority. The rich, bright red and yellow colors used in the logo were chosen because both are a “royal” color and also very eyecatching. Customer satisfaction is a very important part of any successful service provider. At Auto Knights, Inc, we will institute a rigorous customer satisfaction program. At the completion of every auto service, the technician will place a postage-paid,

Marketing Plan for Auto Knights, Inc. Page 28

pre-addressed reply card in the automobile. The customer will be asked to return the card. The card will not only contain several customer feedback questions, but will also have a freeform text box to allow the customer to compliment or complain about our services. For any card returned that is rated as less than excellent, the onsite manager will be required to contact that customer to discuss the concerns. The cards, along with the manager’s notes, will be presented at the monthly manager/owner meeting. Feedback will be evaluated, and any necessary corrections to either personnel or procedures will be discussed. (See Appendix for customer feedback survey.)

Marketing Plan for Auto Knights, Inc. Page 29

Price
To determine how to price each of the 20 routine automotive maintenance services offered by Auto Knights, Inc., we researched the pricing structure of six competitors: Jiffy Lube, Meinke, Pep Boys Auto, NTB, Christian Brothers Automotive and Wal-Mart. First, we collected the prices for each service from the competitor. Then, we calculated the average industry price for each of the 20 services. Finally, we calculated what fraction each type of service constitutes in the overall services performed. (See Competitive Pricing Grid in the Appendix.) Based on the information obtained from a local auto service provider27 and on our cost estimation, Auto Knights, Inc. will incur costs which are at the average level in the industry. The gross profit margin for a healthy auto service company is about 72-74%. In other words, 26-28% of sales are variable costs. The fixed costs are about 62-64% of sales. This leaves about 10% as a net profit. We projected the estimated fixed and variable costs for the first year of operations. A breakeven analysis calculation was then performed to determine the number of services needed to be sold and the sales dollars required to break even. (See Figure 9-1 Year One Breakeven Analysis.) Auto Knight’s Inc. will have two pricing structures – the Silver and Gold levels. The Silver pricing level will be for customers who elect to visit the facility personally and wait for service completion. The Gold pricing level will be structured to include the surcharges for using our exclusive automobile pickup and return service. (See Figure 9-2 Pricing Levels.) The Silver level will have a 15% markup above average industry price. The Gold level will have a 30% markup due to the fact that Auto Knights, Inc. will be positioning itself as a premium service provider. In conjunction with average costs, these markups will allow us to cover the higher than average advertising expenses which are inherent to a new firm penetrating a market.

27

Information gathered from in-person interview with a local auto service provider management and staff. All requested to remain anonymous.

Marketing Plan for Auto Knights, Inc. Page 30

Breakeven analysis for Year One (2009)
Estimated Sales and Variable Cost*
Sales Variable Cost Gross Profit 976,000 388,000 588,000

Estimated Costs* Fixed
Salaries Payroll tax, absentee wages, employee benefits Rent Real Estate Tax Utilities: power, heat, light Computer: CRM, repairs Phone Training Other Expenses 299,600 54,000 77,676 7,620 16,800 15,600 9,744 3,600 5,000

Total Fixed Cost Net Profit

489,640 98,360

Breakeven Analysis
Average Number of Visits a year* Average Gross Profit per Service Breakeven point in units (services) 4,080 $ 144.12 Fixed Cost Gross Profit per unit 489,640 $144.12

= 3397.50

Breakeven point in sales

Fixed Cost Profit Margin

489,640 60.25%

=$812,68 0.50

* Estimations of sales, profit margins and costs derived from research and interviewing local auto service company.

Figure 9-1 Year One Breakeven Analysis

Marketing Plan for Auto Knights, Inc. Page 31

Auto Knights, Inc. Silver Level Package

Auto Knights, Inc. PRICING GRID
Oil & Filter Change Engine Air Filter Replacement Cabin Air Filter Replacement Radiator Repair and Replacement Coolant System Drain and Fill Coolant Hose Repair and Replacement Brake Fluid System Drain and Fill Transmission Fluid System Drain and Fill Power Steering Fluid System Drain and Fill Transfer Case Fluid Drain and Fill Differential Fluid Drain and Fill Fuel Filter Replacement Fuel System Cleaning Timing Belt Replacement Serpentine Belt Replacement Tire Rotation Tire Mounting and Balancing Wheel Alignment Safety Inspections Emissions Testing Figure 9-2 Pricing Levels

$34.26 $26.37 $32.78 $416.69 $97.61 $135.21 $76.15 $132.66 $98.08 $77.34 $87.54 $75.61 $142.57 $354.63 $105.12 $11.37 $18.39 $74.73 $14.38 $31.34

$38.73 $29.81 $37.06 $471.04 $110.34 $152.85 $86.09 $149.97 $110.87 $87.43 $98.95 $85.47 $161.17 $400.88 $118.83 $12.85 $20.79 $84.47 $16.25 $35.43

Auto Knights, Inc. Gold Level Package

Marketing Plan for Auto Knights, Inc. Page 32

Placement
Location Auto Knights Inc. has decided to build the headquarters and first service location in Southlake, Texas. The organization chose Southlake because of the plentiful benefits the city currently provides to a startup company as well Southlake having a population that matches our target customer demographic. The facility, located at 1234 Carroll Avenue, is at the intersection of Carroll and Southlake Boulevard. Being near the Southlake Town Center, a heavily populated retail/residential development will provide Auto Knights, Inc. with a high-traffic visibility. Auto Knights, Inc.’s target service area is a 10-mile radius from our physical service location which will include not only Southlake, but also the neighboring areas of Colleyville, Grapevine, Keller and Trophy Club. Since Southlake Boulevard is the main thoroughfare for Southlake, our facility will be easily accessible to all residents, commuters and visitors to Southlake and the surrounding areas. This location will also have easy access from the following routes: Texas State Highway 121, Texas State Highway 114 (connecting to Interstate-35 West and Interstate-35 East) and Farm-to-Market Road 1709.

Marketing Plan for Auto Knights, Inc. Page 33

Demographics The additional reason why we choose Southlake to begin our operations is due to the demographics. The following facts were taken from the City of Southlake’s website (www.cityofsouthlake.com).28 • • • The City of Southlake’s population is estimated to be 26,100 as of January 1, 2008, and by “2010 population projection of 28,019, projected build-out of 30,160”. The transportation infrastructure that feeds into the City of Southlake are “major highways are S.H 114 and F.M. 1709”. The labor force and economic base, the “labor pool ages 18-65 within 15 miles of Southlake: 596,972.

These demographics indicate that there are several opportunities for potential customers who are not satisfied with their current service provider to come to our location and experience the excellent customer service that we will provide. The statistics also show that there is an extensive labor pool available to us for expansion of our operations in future months. The last attractive factor is that the founders have the opinion that Southlake is known for its high brand value and class distinction which is the target market in which Auto Knights, Inc. aims to be successful.

28

http://www.cityofsouthlake.com/repository/unmanaged_content/Departments/EconomicDevelopm ent/FastFacts2008.pdf

Marketing Plan for Auto Knights, Inc. Page 34

Décor Our facility will be designed to blend in with the architecture of the Southlake Town Center. The exterior will be red brick with Austin stone trim. There will also be extensive landscaping. Our facility’s exterior will be closely aligned with the existing Southlake Town Center architecture (picture is of Southlake Town Hall):

The interior customer greeting area and waiting room will be decorated with soft, neutral earth tone colors. There will be ample high-end furniture (sofa and wingback chairs) for the customers along with cherry wood accent tables. For our customer’s comfort, we will offer our customer a complementary beverage coffee, tea, water or a soft drink during each visit. The actual service bays will be painted a bright, clean white. The office staff will follow a dress code consisting of a monogrammed company polo shirt and khaki slacks. Each technician will be required to wear a company issued uniform as well.

Marketing Plan for Auto Knights, Inc. Page 35

Promotion
For the launch of the business, Auto Knights, Inc. will use the following promotional elements: Internet Marketing Auto Knights, Inc. will create and maintain a website that offers the internet consumer a full description of our services as well as special promotions and discounts. (See example of www.AutoKnights.com website in the Appendix.) Sales Promotion Auto Knights, Inc. will offer coupons as a way to pull in customers and increase our bottom line during the first few weeks of operation. We plan to distribute the coupons via our website, through our direct mail promotion and in our print ads. We project the use of coupons will count for twenty percent of our business in the first few weeks of operation. (See coupon in the Appendix.) Direct Marketing Auto Knights, Inc. will utilize direct marketing to reach the majority of households in Southlake and the surrounding areas. We will mail a flyer containing information on the ranges of services offered along with a discount coupon for the first visit. We will use Martin Worldwide, Inc., (www.martinworldwide.net) an internet company that sells mailing list for communities and cities within the United States. We have allocated 10% ($25,500.00) of our advertising budget to direct marketing. (See flyer in Appendix.) Advertising Auto Knights, Inc. will incorporate several advertising tools to reach an even wider customer base. 78% of the total promotional budget will be allocated to the overall advertising budget. Radio 77% of the advertising budget will be spent on ads on two radio stations, KERA 90.1FM and KLTY 94.9FM. We believe 90% of our target market will be reached through these radio stations given that the median age of the population in Southlake is 36.7 (2002 Census report) which is falls within the listening demographic of these stations. Print Newspaper advertising will comprise 15% of the advertising budget. Advertisements will be placed in both the Dallas Morning News and the Fort

Marketing Plan for Auto Knights, Inc. Page 36

Worth Star Telegram to ensure a more complete coverage within Southlake and the surrounding communities. (See newspaper ad in Appendix.) Billboards Auto Knights, Inc. will rent a billboard for $5000 a month for the first three months of operations. A billboard will serve as a visual reminder of Auto Knights Inc.’s location. The expense of the billboard will use the remaining 8% of the advertising budget. (See billboard in Appendix.)

Marketing Plan for Auto Knights, Inc. Page 37

Budgets Promotional Budget Internet Marketing Sales Promotion Advertising Direct Marketing $15,250.00 $15,250.00 $194,000.00 $25,500.00 $250,000.00 6% 6% 78% 10% 100 %

Allocation of launch Budget
$15,250.00 $15,250.00 Internet Marketing Sales Promotion Advertising Direct Marketing

$25,500.00

$194,000.00

Allocation of launch budget, percentage
Internet Marketing 6% Sales Promotion 6% Internet Marketing Sales Promotion Advertising Direct Marketing Advertising 78%

Direct Marketing 10%

Marketing Plan for Auto Knights, Inc. Page 38

Advertising Budget Radio Newspaper Billboard $150,000.00 $29,000.00 $15,500.00 $194,000.00 77% 15% 8% 100 %

Advertising budget in dollar

15,000.00 29,000.00 Radio Newspaper Billboards 150,000.00

Advertising budget in percentage

Newspaper 15%

Billboards 8%

Radio 77%

Marketing Plan for Auto Knights, Inc. Page 39

Implementation and Evaluation
Implementation Auto Knights, Inc. is a startup business and, in order for the company to become successful, the company has formulated a step-by-step timeline of the actions to be executed. These documented strategies and tactics will allow Auto Knights, Inc. to capture a very respectable share of the automotive maintenance service market within a short time period. The organization will open for business prior to the end of the first quarter of 2009. During the first quarter and prior to the actual company launch, the organization will be using Integrated Marketing Communications concepts to gain brand awareness and capture potential clients by utilizing internet marketing, sales promotion, direct marketing and advertising media. By the end of the first quarter of 2009, Auto Knights, Inc. will be fully operational and ready to serve the clients that will be attracted during the initial IMC campaigns. Prior to the actual opening of the business, Auto Knights, Inc. must have the following business areas designed and implemented in order for the first year of business to function properly and be profitable. The following areas are: • • • • • Building and equipment setup Automobile supplies stock (oil, filters, manual/electric hand tools, etc.) Administrative staff and procedures Certified technicians Integrated Marketing Communications concepts (internet marketing, sales promotion, etc.).

Finally, Auto Knights, Inc. must continually strive to make current and potential customers aware of our services in order to recoup the initial investment in the company. This process is never completed and will remain an ongoing effort until the life of the business has been relinquished. The following timeline listed below illustrates the steps Auto Knights, Inc. will implement for the forecasted Years One through Three: Pre-Launch Setup Phase • Auto Knights, Inc.’s primary website will be live by mid-first quarter of 2009. • Promotional items will be printed. • Signage for Auto Knights, Inc. displaying the company logo will be placed at the physical facility. Year One • The Grand Opening of Auto Knights, Inc. facility will be held.

Marketing Plan for Auto Knights, Inc. Page 40

• • •

Promotional and advertising items will be created and distributed. Customer survey feedback will be distributed with every service. Marketing efforts will continue to establish brand awareness.

Year Two • Increase promotional and advertising frequency and penetration. • Obtain exceptional sales revenue. • Increase market share of automotive maintenance services in Southlake and targeted service area. Year Three • Increase brand penetration in the target market. • Open two new locations in the Dallas/Forth Worth Metroplex (Plano/Frisco and Highland Park). • Obtain strong customer service satisfaction and recommendation scores. Evaluation Results are crucial for ensuring a profitable success, especially for a startup company such as Auto Knights, Inc. To guarantee a long-term success, Auto Knights, Inc. must first determine if the current implementation plan is producing desirable results in the short-term. Therefore, the company has decided to employee the following methods to measure the effectiveness of the implementation plan. The Customer Survey will occur at the conclusion of every service while the third-party reviews will occur at the end of each of the three years covered in the implementation plan. Customer Survey The primary goal for Auto Knights, Inc. is to have an exceptional customer satisfaction and recommendation score as this is literally the strongest foundation possible for the business to be successful on a day-to-day basis. If an honest connection cannot be established with the customer, the future success of the company is in jeopardy on the initial day of business. We believe that in order for Auto Knights, Inc. to become and remain successful, the company must ask for and listen to those individuals who will experience the frontline impact of the company’s products and services. This will include both the customer and the employee. Each individual involved in the service interaction will provide a unique perspective. The employee will be able to provide tangible feedback on current service procedures and policies which will be shared informally with management. The customer perspective will be more intangible such as overall impressions of the company and services provided. To gather the customer feedback, a customer survey feedback form will be placed in the vehicle at the conclusion of the service.

Marketing Plan for Auto Knights, Inc. Page 41

Third-party Accounting Firm Auto Knights, Inc. has invested a tremendous amount of time, resources and finances for the initial start as well as the future lifespan of the company. To protect this investment, Auto Knights, Inc. will engage a third-party accounting firm that is in good standing and is a member of the National Associated Certified Public Accounting Firm organization. This accounting firm will be responsible for auditing the year-end financial statements. The financial reports literally illustrate the truth of the business and by continuously monitoring the company’s Income Statement, Statement of Retained Earnings, Statement of Cash Flow and Balance Sheet, the owners of the company will be able to measure the success of the company on a yearly basis. Should the numbers prove not to be as profitable as desired, a mandatory adjustment of strategies and tactics to realign the company will occur in a timely fashion. Third-party Marketing Consulting Firm Auto Knights, Inc. will engage the services of Latimark to analyze the current Integrated Marketing Communications methodology to determine the effectiveness in meeting the stated marketing objectives. The metrics that will be measured will include brand awareness/penetration, target market segment share and customer satisfaction and retention. In the event that any of the feedback produced from the methods above indicates that the company is not meeting the stated objectives, current procedures and/or practices will be modified to align the company in such a way that the objectives will be met in the future.

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