Sample marketing plan

1. Company IMAGE/LOGO
*Company Name
Charlotte, NC. 28219
Prepared by:
Gregory Ballard
Rashmi Menon
Huong Pham
Lee Rendleman
Joseph Tieber

3. 1.0 EXECUTIVE SUMMARY......................................................................................................................................1
2.0 SITUATIONAL ANALYSIS...................................................................................................................................2
2.1 MARKET SUMMARY..................................................................................................................................................2
2.1.1 Market Demographics...................................................................................................................................4
2.1.2 Market Needs................................................................................................................................................4
2.1.3 Market Trends...............................................................................................................................................5
2.1.4 Market Growth..............................................................................................................................................5
2.2 SWOT ANALYSIS....................................................................................................................................................8
2.2.1 Strengths.......................................................................................................................................................8
2.2.2 Weaknesses...................................................................................................................................................9
2.2.3 Opportunities................................................................................................................................................9
2.2.4 THREATS...........................................................................................................................................................10
2.3 COMPETITION.........................................................................................................................................................10
2.4 PRODUCT OFFERING................................................................................................................................................11
2.5 KEYS TO SUCCESS..................................................................................................................................................13
2.6 CRITICAL ISSUES.....................................................................................................................................................13
3.0 MARKETING STRATEGY.................................................................................................................................16
3.1 MISSION................................................................................................................................................................16
3.2 MARKETING OBJECTIVES.........................................................................................................................................16
3.3 FINANCIAL OBJECTIVES...........................................................................................................................................17
3.4 TARGET MARKETS..................................................................................................................................................17
3.5 POSITIONING..........................................................................................................................................................17
3.6 STRATEGIES...........................................................................................................................................................17
3.7 MARKETING MIX....................................................................................................................................................18
3.8 MARKETING RESEARCH...........................................................................................................................................18
4.0 FINANCIALS.........................................................................................................................................................19
4.1 BREAK-EVEN ANALYSIS...........................................................................................................................................19
4.2 SALES FORECAST....................................................................................................................................................19
4.3 EXPENSE FORECAST................................................................................................................................................19
5.0 CONTROLS...........................................................................................................................................................21
5.1 IMPLEMENTATION....................................................................................................................................................21
5.2 MARKETING ORGANIZATION.....................................................................................................................................23
REFERENCES............................................................................................................................................................24
APPENDIX TABLE: MARKETING EXPENSE BUDGET...................................................................................25
APPENDIX TABLE: SALES PERFORMANCE METRICS DASHBOARD.......................................................26
APPENDIX TABLE: CUSTOMER SERVICE PERFORMANCE METRICS DASHBOARD...........................27
APPENDIX TABLE: MARKETING PERFORMANCE METRICS DASHBOARD...........................................28

5. 1.0 Executive Summary
*Company Name is a full service Third Party Logistics (3PL) firm. It provides for its clients the know-
how and ability to arrange for the movement of its goods through: ocean and air freight forwarding,
customs brokerage, consolidation, warehousing, order fulfillment, information services, logistics and
compliance consulting, and (Lead) 4PL and Project logistics. *Company Name uses its' buying power to
obtain advantage with shippers and to mainstream the supply chains of its clients. Taking control of their
respective supply chains allows for firms to focus on their core competencies rather than attempting
navigation through the maze of logistics management.
In the next year, *Company Name seeks to enter a new target market, automotive parts. In its past,
*Company Name has mainly focused on the furniture industry and general department store merchandise.
*Company Name plans to optimize its future position by diversifying its revenue streams and leveraging
its core competencies. Given the in-elasticity of price in the logistics industry, *Company Name
differentiates itself through exceptional customer service. One of *Company Name's assets that ensures
world-class service is iRadar, an in-house developed tracking program designed to give real time
information on the locations its customers’ products.
There are several marketing priorities that are crucial to ensure a successful penetration into the market.
The first priority is to build awareness of its brand within the automotive parts wholesale and retail
segments. This will be accomplished through the joining of trade associations, advertising in leading
industry magazines, and participation in industry tradeshow events. Secondly, continuing to provide
superior service is a must in order to generate positive word of mouth buzz among players in the industry.
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6. 2.0 Situational Analysis
With over thirty years experience, *Company Name offers high-level expertise in the international
logistics industry. Currently, it focuses on providing logistics services in these key industries (percentage
of *Company Name’s business noted):
•Furniture - 30%
•General Department Store Merchandise - 30%
•Hardware - 15%
•Footwear - 10%
•Electronics - 10%
•Hosiery - 5%
The current breakdown of business services *Company Name provides is 75% Ocean Freight
Arrangement, 12% Cargo Consolidation, 8% Customs Brokerage, and 5% other logistics services. Its
primary activity, the arrangement of ocean freight forwarding, involves the purchase of container space
from various shipping firms based on the anticipated needs of its clients. *Company Name bears the risk
for clients by preemptively purchasing space and absorbing the costs of any unused space. Due to its
purchasing volume, *Company Name is able to receive reduced rates from the shipping agents but still
char*Company Name the prevailing market rates to its consumers. Clients are then able to avoid the
additional cost and penalties associated with purchasing excess container space.
Due to the recent downturn in housing market, *Company Name's primary source of business, the
furniture industry, has declined. US consumers no longer are purchasing the volumes of furniture to
decorate their new homes which has resulted in the obvious decrease in the importation of furniture and
subsequent movement of goods across US trade lanes.
As a result, next year *Company Name intends to pursue the automotive industry in markets in which
they already have experience, specifically in China and Canada. While the slowing of the US economy
has hurt home and furniture sales, the automotive parts industry continues to grow as US consumers rely
more heavily on repairing their current vehicles and opt out of purchasing new cars. Even during the
economic boom of past years, in which discretionary income was at an all time high which increased the
rate of new car purchases simultaneously, the automotive parts industry still continued to grow.
By expanding into a new market, *Company Name will have the opportunity hedge its risk against any
future downturns affecting any of the industries in which it works.
2.1 Market Summary
The target market groups *Company Name is planning to focus on are Aftermarket Auto Parts Stores and
Auto parts wholesalers. The other target market groups under consideration were Original Equipment
Manufactures (OEMs) in the United States and auto parts manufacturers in Asia and Eastern Europe. Due
to *Company Name’s prior experience in the furniture business, the Aftermarket Auto Parts Retail
Outlets’ and Wholesalers’ needs were the most similar to servicing the furniture business. Both these
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7. target market groups have large distribution centers to which the goods are delivered. *Company Name
would provide third party logistic services for importers and wholesalers across different trade lanes.
Dealing with OEMs and auto parts manufacturers is more challenging as it requires a tighter integration
with the manufacturers supply chain. The parts are typically directly delivered to the assembly line.
Given *Company Name limited experience in the import of auto parts, this would not be a good market to
target initially. However, future operations could target these two additional market segments as well
The two main markets in which *Company Name will focus are:
Aftermarket Auto Parts Chain Retail: Our most important market segment is the provider of retail auto
parts, such as Advance Auto, Auto Zone, Carquest, and O'Reilly's. These companies need logistics
functions that are better handled externally than managed in-house. These retail stores have stores
throughout the United States and typically use centralized distribution centers from which items are
housed and distributed. Many of the products in the stores are manufactured in East Asia, specifically
China as well as in Canada. Logistics solutions are based on cost, service, timeliness, and ability to track.
Auto parts wholesalers: Auto parts wholesalers are also located throughout the United States and in some
instances, sell to the after market retail chains. They import their products from East Asia, Brazil, and
Eastern Europe. These sellers bulk break items and create assortments to send to various distributors also
throughout the United States. They determine logistics needs through cost, quality of service, timeliness,
and the ability to track.
Table: Market Analysis
Market Analysis Projected Revenue Growth (in billions)
Potential Customers
2008 2009 2010 2011 2012 CAGR
Auto Parts and Accessories Stores in the
$46.9 $48.1 $49.0 $49.6 $50.9 2.07%
US
Motor Vehicle Supplies and New Parts
$139.1 $141.9 $145.8 $150.1 $155.2 2.78%
Wholesalers in the US
Total $186 $190 $195 $200 $206 2.60%
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8. Market Analysis (Pie)
Auto Parts and Accessories Stores in the US
Motor Vehicle Supplies and New Parts Wholesalers in the US
Other
2.1.1 Market Demographics
Cars initially came to market in the early part of the 20th century. Consequently, the need for car repairs
has been in existence for nearly a century as well making the Aftermarket Auto Parts industry a mature
industry. The companies obtaining aftermarket parts include large retail chains, wholesalers, and small
local repair shops.
As manufacturing trends have shifted to increased overseas production, the manufacturing of auto parts
has experienced the same move to off shore production. As this transition has occurred, business
customers in the United States have had to develop supply chains to ensure success. The logistics of
moving parts has therefore become an integral part of auto part retailers’ and wholesalers’ business
models. Many of these firms, however, do not have the adequate resources to successfully make these
arrangements as their core competencies are helping individual consumers in vehicle enhancement and
repair.
2.1.2 Market Needs
With the substantial growth worldwide, there will be increasing need for logistics help to move the parts
not only to the United States but around the world. The logistics needs will change as the industry grows
as well. If *Company Name can be one of the first movers, then in the future, they will be able to take
advantage of their increased experience relative to competitors.
Clients come to *Company Name to obtain reliable, trackable, and timely logistics expertise. They
understand it is difficult to handle logistics needs and would prefer to concentrate on their core
competencies. *Company Name's increased buying power and superior shipment control reduces cost and
increases the clients' ease with handling worldwide operations. A long term relationship is the result as
businesses continue to need additional product movement.
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9. 2.1.3 Market Trends
As labor has become more expensive in the United States, auto part makers have increasingly been forced
to import products from overseas markets in order to keep costs down. Currently, Mexico, Japan, and
Canada are the lar*Company Namet producers of US auto parts totaling $62 million dollars in imports in
2006. China and Brazil, however, are increasing their share of the market. In the past seven years, the
markets have grown by 28% and 10%, respectively. It is anticipated that global manufacturing production
will shift and grow by almost 15% in Asia and around 13% in Eastern Europe.
Market Analysis (Bar)
200
150
Auto Parts and Accessories Stores in the US
100
Motor Vehicle Supplies and New Parts Wholesalers in the US
50 Other
0
2008 2009 2010 2011 2012
2.1.4 Market Growth
The Global Automotive Parts industry is projected to be at $1.1 trillion in sales by 2010. Auto parts
imports to America have grown by almost 37% since 2001 (from $26 trillion in 2001 to $43 trillion in
2006). The substantial growth within the market and for US imports makes it a great opportunity for
*Company Name. It is also unlikely that this growth will slow down in the near future. Growth has been
driven by an increase in the number of vehicles on the road, an increase in vehicle usage rates, and greater
diversity of vehicle types. Rising oil prices, however, could put a damper on anticipated growth estimates.
Revenue growth rates of both Automotive Parts and Accessories Stores and of Motor Vehicle Supplies
and New Parts Wholesalers in the US have also been impressive as shown in the tables below. Future
revenues growth rates for Automotive Parts and Accessories Stores and Wholesalers are positive as well.
The average projected growth rate for both industries is just over 2%.
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10. IBIS World Reports: Motor Vehicle Automotive Parts and Accessories Stores in the US September 11 2007
IBIS World Reports: Motor Vehicle Supplies and New Parts Wholesalers in the US December 04 2007
IBIS World Reports: Motor Vehicle Automotive Parts and Accessories Stores in the US September 11 2007
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11. IBIS World Reports: Motor Vehicle Supplies and New Parts Wholesalers in the US December 04 2007
With the increases in these industries, logistics needs will obviously increase simultaneously. This will
particularly be the case as the United States' labor rates will continue to impede manufacturing. Imports
will be necessary to meet the growing demand. The previously mentioned manufacturing growth rates in
Asia and Eastern Europe of 15% and 13% respectively provide an opportune market to move auto parts
across the Pacific into the States. The growth figures for Freight Transportation Arrangement support this
conclusion as seen in the Table below:
IBIS World Industry Report (Oct 2007) Freight Transportation Arrangement in the US: 48851
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12. 2.2 SWOT Analysis
As a mid-size company, *Company Name is able to deliver customizable personalized solutions for each
of its clients. It has significant experience in the logistics industry with more than 30 years of service
giving credence to its ability to deliver. *Company Name further distinguishes itself by developing its
own tracking software, iRadar. *Company Name can accurately give real time responses to its clients
about their products' location.
Although *Company Name has worked in the industry for many years, it does not currently have any
exposure in the auto parts aftermarket arena. Furthermore, *Company Name is not a quot;brand namequot;
making it more difficult to gain instant access. Access could also possibly be hampered due to decreases
in current revenue segments providing fewer resources for entry into new markets.
The automotive parts import industry has grown significantly over the past seven years. As manufacturing
in the United States becomes increasingly more expensive, outsourcing will and has become more and
more prevalent. US auto parts imports coming from China have grown by almost 30%.
Competition within the industry is intense and the barriers to entry are few. On-going technological
change and development makes it likely other companies will develop superior tracking tools. Security
initiatives both within the US and abroad have created a much more difficult marketplace with a plethora
a rules and regulations that must be not be overlooked.
2.2.1 Strengths
1. True expertise. Over thirty years of success within the logistics industry.
2. A customer-driven, privately owned organization with a reputation for exceeding expectations
3. iRADAR’s functionality is a giant step above traditional freight forwarder and carrier applications. A
few of the software’s capabilities available include:
• Real time P.O & SKU level global logistics visibility
• Exceptions based email alerts - iRADAR helps identify, react to and resolve problems such as
shipment delays before they may occur.
• Shipment milestone email notifications automatically alert users of status chan*Company Name
• A flexible and open information architecture to provide integration opportunities with Enterprise
Resource Planning (ERP), Warehouse Management Systems (WMS) and other internal systems
• Customized management reporting along various performance metrics utilizing built in Seagate
Crystal Reports
4. A mid-market company with both a global reach and a local touch, employing multi-national staff and
affiliates in more than 75 locations worldwide
5. International Presence with over 15 offices worldwide
•An experienced consolidator with corporate offices and an extensive Container Freight Station
(CFS) infrastructure throughout China and the Far East.
6. Contacts. Years of industry experience yields word-of-mouth marketing, contacts, and channels that
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13. create networks for increased buying power.
7. Customs compliant (AMS 24-hour rule) and security conscious (C-TPAT certified)
8. Non-carrier affiliated to ensure unbiased, customized transportation solutions
9. Good sales coverage in auto regions (OH & MI OEM Tier 2 & 3 suppliers, Southeast parts retailers
10. Good network where parts are imported from (China, Brazil, Turkey, Canada, etc.)
2.2.2 Weaknesses
1. Currently do not have any strong contacts within the automotive industry—retail or wholesale
2. Decreases in revenues from other segments (furniture) creates fewer resources to develop new markets
3. Have not yet attended any trade shows
4. Have bid on but not won any Retail segment contracts
5. Do not have a quot;name brandquot; such as FedEx
6. Not ISO Certified, boilerplate legal requirements
7. Airfreight weakness—little experience and few contacts
8. No Assets (Warehouses, trucks, etc for Just In Time distribution). All relate to the OEM side of the
business and working for Big 3 auto manufacturers directly.
2.2.3 Opportunities
1. Auto parts industry is growing by large percenta*Company Name year over year.
• Both Aftermarket segment and Wholesale segment
2. US imports of auto parts is growing tremendously due to increased costs of manufacturing in the US.
3. Industry is fragmented with no dominant players making to easier to access the auto parts 3PL market
4. Auto parts manufacturing is growing in China, Brazil, and Eastern Europe: more goods that need to be
moved.
5. Outsourced (3PL) nature of supply chains
6. Supports *Company Name’ “global” business model – good volume where freight is from (China,
Brazil, Turkey, Canada, etc.)
7. Auto parts hold up well in economic downturns.
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14. 2.2.4 Threats
1. Significant competition already exists within the auto parts logistics industry
2. There are not many barriers to entry therefore additional competitors can easily enter the marketplace.
3. Economic recession could have a negative affect on auto parts sales due to decreases in discretionary
income.
4. Other companies creating more competitive technologies.
5. Maintaining profits under price pressures from customers and consistently delivering cutting edge
technology to customers.
6. US and International security initiatives
2.3 Competition
The key elements in purchase decisions made by 3PL clients include high levels of customer service,
reliability, and tracking ability.
Competition comes in several forms:
1. In-house logistics handling. *Company Name’s key advantage in competition with in-house logistics is
that managers are already overloaded with responsibilities; they don't have time for additional
responsibilities in new market development or new channel development.
2. National and well-known brands such as FedEx, UPS, and DHL. A key disadvantage with well-known
brands is brand recognition, reach, additional services, and negotiating power. A key advantage in
competition with major players is increased personalized service.
3. Niche providers. A key disadvantage is existing developed relationships and loyalty.
Advanta*Company Name include a quot;think outside of the boxquot; attitude and wider breadth of experience.
4. Specialized services. Potential strengths include exceptional know how. However, issues can result
from the lack of a larger knowledge base.
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15. 2.4 Product Offering
*Company Name offers expertise in a third party logistics provider (3PL) specializing in U.S. trade with
the Far East. *Company Name offers international supply chain solutions incorporating innovative
logistics technology and world-class operational execution. Through past performance in the furniture
industry, *Company Name has demonstrated excellence in the following:
Ocean & Air Freight Forwarding
*Company Name is full-service global logistics solutions provider specializing in U.S. trade with Asia.
As such, we offer:
Features & Benefits
• Leverage our buying power to obtain competitive freight rates
• Multiple carrier tiers increase your service options
• Superior shipment control through overseas corporate offices, strategic partners, and web-
based tracking.
A one stop, full-service capability for all your international transportation needs.
We cater to your needs, whether you are an importer or exporter shipping via ocean, air or multi-modal.
Our forwarding solutions include the best logistics options for your particular situation, such as FCL and
LCL ocean transportation, consolidation, airfreight, and inland drayage.
Other value added services include: Labeling, bar code scanning, packing & specialized handling
Warehousing, order fulfillment, and distribution Documentation & export letter of credit preparation
Cargo insurance and claims processing Lead logistics provider and 4PL service
Leveraged buying power to increase your shipping options, flexibility and control.
As a privately held, non-carrier affiliated freight forwarder, consolidator, customs broker and information
services provider, we contract our significant freight volume with various ocean and air carriers to offer
you multi-tiered service options and competitive rates. We ensure superior shipment control through a
vast network of global offices, strategic partners, and “people on the ground” in your main trade lanes.
Web-based tracking, events management and milestone reporting.
We’re not your average freight forwarder. By combining the latest I.T.-based cargo management
techniques with iRADAR, our proprietary global logistics visibility and supply chain events management
platform, we are assured of exceeding your most exacting information needs. Our detail-minded team of
logistics professional ensures that each shipment milestone unfolds according to plan providing total
supply chain accountability.
Consolidation & Distribution
Expand your distribution options with flexible warehousing at every origin and destination. Our
consolidation and distribution objectives are as follows:
Features & Benefits
• Reduce your landed cost through consolidation to optimize full container loads
• Ship mixed loads (from multiple suppliers and/or countries) directly to your customers
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16. • Improved shipment coordination and supply chain communication through iRADAR
• Reduce your landed cost through a customized consolidation program.
Cargo consolidation is a core competency for *Company Name. Through our extensive network of
container freight stations (CFS), we can optimize your container loading capabilities and minimize costly
less than container load (LCL) shipments. Let *Company Name provide a customized consolidation
program and all the information you need to manage it online via iRADAR.
Improve communication within your supply chain.
The key to any consolidation program is effective shipment coordination between suppliers and
importers. Ours highly trained staff working on your behalf around the world ensures consolidation
success through fluid information exchange and proactive vendor relationship management.
Empower your consolidation and direct container programs.
Take advantage of the shipping efficiencies offered by our Multi-Vendor Consolidation (MVC) program.
By mixing multiple suppliers, P.O.s and SKUs in the same container, you can improve your equipment
utilization and accelerate your import lead-time. Multi-Country Consolidation (MCC) may also be
utilized to load LCL shipments from multiple countries into one full container shipping from a base port,
which saves you time and money. Other consolidation options are available for high volume clients,
including Overseas Order Fulfillment (OOF) to facilitate direct containers.
Utilize value added services including:
Bar Code Labeling and Scanning Garment on Hanger (GOH) Inspections Pick & Pack / Order Fulfillment
Digital Imaging Palletization & Shrink Wrapping
Customs Brokerage & Compliance
*Company Name’s seasoned staff of brokers is your link to the U.S. Bureau of Customs & Border
Protection. Our expert service includes:
Features & Benefits
• Full service capability to handle all of your Customs brokerage needs
• Increased cargo security through *Company Name’s C-TPAT certification
• Regular client updates keep you informed of pertinent Customs issues
• Integrated brokerage and logistics services provide a total solution
Offers full service capability, from customs entries to compliance consulting.
We offer the following brokerage services: Pre-Classification and Clearance Remote Location Filing
(RLF) Automated Clearing House (ACH) Bond Preparation & Maintenance Binding Ruling Requests
Protests & Petitions Duty Drawback Compliance Consulting
C-TPAT, excellent U.S. Customs relationships, and personalized service.
Today heightened security is business as usual. We all share a common need to comply with U.S
Customs’ initiatives, and *Company Name is certified member of C-TPAT (Customs-Trade Partnership
Against Terrorism).
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17. Our expert staff of brokerage professionals ensures your best interests and good standing with U.S.
customs are always maintained. *Company Name is known for its personalized service, and our brokers
take great pride in building trusted client relationships. We continually pass along relevant Customs
information concerning your business and provide a support system to guide you through all Customs-
related issues.
Offer a total solution of integrated brokerage and logistics services.
When *Company Name handles both the brokerage and logistics functions, our clients enjoy the
convenience of a seamless door-to door service. Our brokers and logisticians work hand in hand to ensure
that your products move on time and as planned. And when customs issues arise, you can count on our
staff’s expert coordination to keep you informed and compliant.
2.5 Keys to Success
1. Provide a targeted level of customer service through a customer centric approach enabled by
technologies such as iRadar in order to generate positive word of mouth buzz
2. Develop visibility to generate awareness amongst Auto Parts Retailers and Wholesalers
3. Leverage current expertise and contacts in order to enter auto parts logistics market.
4. Recognize entering a new market is a long term endeavor
• Short term strategies sug*Company Nameted provide ideas for entry but plan will need to be
revamped once penetration goals are met.
2.6 Critical Issues
Internal Factors:
1. Penetration into the target market: *Company Name should use promotional tools like personal
selling, participation in trade shows such as AAPEX, CAPA Expo, etc., and advertising in trade
magazines such as Automotive Industries, Automotive Logistics, Automotive News.
2. Customer relationship management: It is vital to manage a good relationship with the clients. Some
critical factors for the successful management of client relationships are recommended below:
(a) Well-Understood Goals and Objectives of Relationship
Perhaps the single, most important factor is for *Company Name to have knowledge of and understand
the business needs of the client. *Company Name should strive to refrain from “information hiding”, and
focus on developing successful relationships by sharing its goals and ambitions. *Company Name should
discuss with clients what will it take for them to achieve their individual objectives. Anything less will
result in attempts to make sub-optimal decisions. Only when *Company Name is willing to disclose its
true goals and objectives will the relationship benefit.
(b) Corporate Compatibility
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18. Effective relationships will be facilitated by the extent to which the client and 3PL
Organizations are culturally-aligned. Key factors that are relevant to this alignment include: corporate
philosophy; management capabilities; and management style. Additionally, compatible relationships are
characterized by effective multi-level organizational alignment, in which there are specific roles to be
played in the relationship by people at the executive, managerial, and front-line levels of both
organizations. Also, the extent to which information systems and technologies are integrated will be of
major importance.
(c) Ability to Reach Consensus on Matters of Importance.
Aside from the fact that in any client-3PL relationship one party is the seller and one is the buyer, it is
important for each party to understand the needs of the other and to reach consensus on matters of mutual
importance. Although conduct of most relationships will endeavor to be consistent with a formal contract,
the use of the contract as a management tool is a symptom that the relationship, and the ability to reach
consensus, is having problems. Additionally, successful relationships will be characterized by trust and
commitment, effective communications, and a willingness by both parties to share risk and reward.
*Company Name should ensure that both parties draw up a protocol for addressing and resolving
problems that may arise during the relationship.
(d) Effective Measurements and Measurement Strategies. Perhaps the most useful management tool is
the availability of agreed-upon key performance indicators and an effective strategy for measurement,
feedback, and continuous improvement.
(e) Migration Plan Toward Advanced Service Offerings
Considering the importance of new product and service offerings to the success of client-3PL
relationships, it is particularly useful to have a well-developed strategy for new service development. This
strategy should focus not only on functional services (e.g., transportation; warehousing; customs
brokerage; freight forwarding; etc.), but also on value added services (e.g., information technology; order
entry and customer service).
(f) Outlook for the Future
Given the increasing competitiveness of the 3PL sector, coupled with the growing sophistication of the
buyers of 3PL services, it is likely that we will see further progress in terms of improved relationships
between buyers and sellers of 3PL services.
Considering the extent to which 3PLs are enhancing the strategic aspects of their businesses (e.g., focus
on specific customer segments; industry consolidation; globalization; and availability of information
technologies), *Company Name should focus on strategic approaches to customer relationships.
3. Top management support: The management should be supportive of the project, especially in the
initial phase. Poor execution can lead to customer dissatisfaction and potential loss of business.
4. Financial stability: Financial stability of customers is very important. *Company Name should take
measures to ensure the financial strength of a potential customer. For instance, a thorough evaluation of
the credit history of potential customers would help hedge against this risk.
5. Human resource factors: Loss of key personnel would create a delay in being able to achieve the
goals of the marketing plan . In fact, adding an additional member to the marketing team would help to
ensure success.
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19. External Factors:
Macroenvironmental factors likely to affect *Company Name include:
a. Rise in oil prices: Increase in oil prices can result in an increase in operating costs which would in
turn cut into profit margins.
b. Threat of counterfeit/ low quality products would cause boycotting of goods and services and
could result in increased regulations.
c. Tariffs: A rise in protectionist sentiment in the US may result in high tariffs on imported goods
Microenvironmental factors likely to affect *Company Name include:
a. Competitors: Intense competition exists in the auto supply industry.
b. Customers: This includes the client’s perception of the services provided.
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20. 3.0 Marketing Strategy
3.1 Mission
*Company Name’ mission is to provide customized logistics solutions incorporating the ultimate
customer service and latest technology from a professionally rewarding environment.
3.2 Marketing Objectives
*Company Name needs to build awareness of its brand by positioning itself as a customer-centric
logistics provider within the aftermarket automotive parts industry. Clients should be sought in both the
Aftermarket and Wholesale segments. The industry is tight knit--one contact can lead to multiple
additional contacts. The personal selling and networking strategies have already previously been proven
within the furniture industry.
Other activities should include being seen in major trade press, participating in industry events, and
gaining recognition. Some measurable and specific objectives are to attend at least one major trade event
such as the Taipei International Auto Parts and Accessory Show, place at least one advertisement in an
industry publication: Automotive Industries, Automotive Logistics, or Automotive News, and to join at
least one auto part association such the Automotive Aftermarket Industry Association, Certified
Automotive Parts Association, and Automotive Warehouse Distributors Association.
Other possible associations:
•American International Automobile Dealers Association (AIADA)
•National Truck Equipment Association (NTEA)
•Performance Warehouse Association (PWA)
•Specialty Equipment Market Association (SEMA)
•Automotive Recyclers Association
•Automotive Parts Rebuilders Association (APRA)
•Auto Engine Rebuilders Association (AERA)
•Motorcycle Industry Council (MIC)
•National Automobile Dealers Association (NADA)
•Motor & Equipment Manufacturers Association (MEMA)
•Original Equipment Suppliers Association (OESA)
•Automotive Aftermarket Suppliers Association (AASA)
Other tradeshow events:
Hong Kong International Auto Parts Fair
Auto Aftermarket and Tuning Fair
China Ningbo Auto Parts and Accessories Export Fair
2008 Global Automotive Aftermarket Symposium
2008 Automotive Aftermarket Product Expo (AAPEX)
By completing these objectives, penetration into the market should be possible.
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21. 3.3 Financial Objectives
The main focus for the coming year is to gain exposure in the marketplace. *Company Name’s annual
sales cycle begins in March leaving little time to pursue marketing objectives and therefore meet solid
financial objectives. An extremely aggressive goal for 2008 would be for *Company Name to seek to sell
125 containers at an average price of $4000 per container in order to break even with $500000 in
revenues and $25000 in marketing expenses. The stretch goal for the end of 2009 is to fill 800 containers
at on average price of $4000 per container, generating $3.2 million in revenues. At a 5% margin,
$160,000 in profits would be generated.
3.4 Target Markets
The target market groups *Company Name is planning to focus on are Aftermarket Auto Parts Stores and
Auto parts wholesalers. The other target market groups under consideration were Original Equipment
Manufactures (OEMs) in the United States and auto parts manufacturers in Asia and Eastern Europe. Due
to *Company Name’s prior experience in the furniture business, it was felt that Aftermarket Auto parts
Retail Outlets and Wholesalers were the most similar to servicing the furniture business. Both these target
market groups have large distribution centers to which the goods are delivered. *Company Name would
provide third party logistic services for importers and wholesalers across different trade lanes.
Dealing with OEMs and auto parts manufacturers is more challenging as it requires a tighter integration
with the manufacturers supply chain with the parts typically directly delivered to the assembly line. Given
*Company Name limited experience in the import of auto parts, this would not be a good market to target
initially. However, future operations could target these two additional market segments as well.
3.5 Positioning
For auto part retailers and wholesalers, seeking reliable, customer focused logistics solutions, *Company
Name Services is a third party logistics provider that arran*Company Name multi-modal forwarding
solutions, consolidation, distribution, and customs handling of products. Unlike other competitors,
*Company Name customer orientation complemented by their superior technological capabilities (i.e.
iRadar) delivers world-class solutions. Using all elements of the marketing mix, supported by marketing
efforts, *Company Name will educate the target markets about its 3PL services and motivate these first-
time users to use *Company Name’s services over the competition.
3.6 Strategies
*Company Name should intend to use a slow growth strategy in entering the automotive parts logistics
marketplace. Gaining brand exposure will be an on-going effort supported in large part through referrals.
Referrals, especially in *Company Name’s industry, are the best marketing tool. However, gaining
customers to provide word of mouth advertising is time intensive. In order to initially attract clients,
advertising through Aftermarket auto parts industry publications, joining trade associations, and
participation in tradeshow events should be used. Developing partnerships with large logistics industry
promoters such as Inboundlogisitics.com is also necessary. Through these partnerships, *Company Name
can establish itself as an industry leader by providing articles and gain additional exposure through the
partners’ websites and/or publications.
1

22. 3.7 Marketing Mix
As an International Transportation Specialist *Company Name is a third-party logistics (3PL) and
application service provider (ASP) specializing in U.S. trade lanes with Asia. *Company Name is an
experienced consolidator with corporate offices and an extensive Container Freight Station (CFS)
infrastructure throughout China and the Far East. As a mid market company with both a global reach and
a local touch, *Company Name is able to pay individual attention to customers. It employs a multi-
national staff and affiliates in more than 75 locations worldwide. *Company Name is a customer-driven
channel specialist distinguishing itself with operational experience in emerging markets with a reputation
for exceeding expectations. *Company Name is a qualified leader in I.T. based cargo management,
offering state of the art tracking systems developed in-house, iRadar. By not being carrier affiliated,
*Company Name ensures unbiased, customized transportation solutions.
The manufacturing of auto parts in China has grown exceptionally over the past seven years. United
States' imports of auto parts from China have grown by over 28%, making it an ideal target market.
*Company Name's current existing presence in Asia makes expanding into additional industries a natural
product extension.
Pricing is determined by shipping companies and is typically standardized. Rates are rather price inelastic
given there are not many cheaper substitutes or alternatives available. Importers and 3PLs are therefore
forced to pay what the market bears. Theoretically, if the ocean freight transportation costs became too
high, importers might stop importing and U.S. manufacturing would increase. However, in the current
environment, that is highly unlikely due to overseas labor costs – the main component of the overall
landed cost of goods – is so low. Pricing is based off the ocean container “base rate” from either Hong
Kong or Yantian, China, which is usually the same rate, to the final destination in the U.S. Other import
origins (i.e. Shanghai, Bangkok, etc.) are simply add-ons (aka “arbitraries”) to the per container base rate.
For example, typical base rate ocean container rates are as follows:
•Hong Kong or Yantian to door-Charlotte, NC: $3,500/40’ container
•Hong Kong or Yantian to door-Riverside, CA: $1,800/40’ container
•Hong Kong or Yantian to door-Detroit, MI: $4,300/40’ container
Personal selling, advertisements in industry magazines, and trade show participation are the keys to
promoting *Company Name as a new 3PL entering the auto parts logistics industry. Press releases and
editorial articles can also demonstrate *Company Name's customer-centric focus as well as expertise and
experience in the logistics industry. By positioning themselves as superior channel specialists, credibility
and awareness can be established.
3.8 Marketing Research
For continuing success in the auto parts business *Company Name should keep a finger on the pulse of
the auto industry. *Company Name should continually participate in auto industry associations actively
networking at various tradeshows and conferences. In addition, *Company Name should work closely
with existing customers for repeat businesses as well as referrals leading to new business opportunities.
Subscribing to professional research reports both regarding the auto industry and 3PL providers would
help in monitoring industry trends.
1

23. 4.0 Financials
*Company Name' current plan does not anticipate closing sales in 2008 as its main focus is penetrating
into the automotive parts logistics industry. In order to gain exposure, the allocated marketing expenses
are $25000. If sales were achieved during the penetration period, $500,000.00 in sales would be required
to break even against the marketing budget. $500,000.00 in sales equates to selling 125 containers at
$4,000.00 per container shipping from China to the United States.
The plan assumes two important trends:
First, a steady increase in sales as *Company Name's customer base grows. *Company Name will have
to take on additional risk in order service the needs of its new clients, auto parts wholesalers and retailers
-- if the plan is implemented due to the increased securing of container space from its shippers.
Second, as *Company Name gains transaction in this new market, marketing expenses should decrease as
word of mouth and referrals become the primary source of marketing. Initial marketing expense must be
quite high comparatively given that we are building a reputation and marketing without the leverage of
past marketing, starting from zero.
4.1 Break-even Analysis
In order to recoup the marketing costs associated with pursuing the auto parts industry, *Company Name
must ship 125 containers at an average of $4,000.00 per container. This will generate $500,000.00 in
revenue and $25,000.00 in income, which will cover the marketing budget. For each additional container
shipped will realize *Company Name a profit.
It should be noted that *Company Name bids for container space with the shipping companies each
March. The costs that *Company Name incur both fixed and variable are incorporated into the Request
for Proposal (RFP) bids made to the shipping company based on the amount of container space purchased
for their annual sales cycle. The cost of pursuing business with the aftermarket auto parts is a non-
standard cost will not be accounted for in the RFPs in 2008.
4.2 Sales Forecast
Unknown
4.3 Expense Forecast
As previously mentioned, *Company Name has an annual not a monthly sales cycle. The budget for sales
and related expenses were already incorporated into last year’s RFP to the shipping companies. The
1

24. marketing expenses are additional expense not accounted for in last year’s RFP and will be used to
promote brand awareness for the upcoming sales cycle. The total budget is $25,000.00 which is the
marketing budget to promote and gain entry into providing third party logistic services to the aftermarket
auto parts industry. *Company Name is not likely to significantly increase their sales and marketing
expenditures over the next 3 years. The current budget for this endeavor is $0. The increase in the budget
would be effective January 1, 2008. The marketing budget will be spent on advertising and attending
trade shows to promote *Company Name’ services. Currently, *Company Name does not provide third
party logistic services to this industry and must introduce its product to this industry. The lar*Company
Namet marketing expenditures are in magazine advertising. In order for the Aftermarket and Wholesale
segments to gain awareness of our service, *Company Name must promote itself in industry publications.
Attending trade shows is the second most costly marketing expenditure. These trips are vital to gain face
time in front of prospective clients.
Expense Budget 2008
Design Advertising
Taipei International Autoparts and Accessory Tradeshow
$6,000
Magazine Ad - Automotive Logistics
$4,000
Magazine Ad - Automotive Industries
$2,000
Magazine Ad - Automotive Industries
$0
Trade Association Fees - Automotive Aftermarket Industry Association
Promotional Items
Auto Aftermarket and Tuning Fair (Tradeshow)
Table: Marketing Expense Budget
Marketing Expense Budget 2008 2009 2010
Design Advertising $1,000 $750 $500
Taipei International Auto parts and Accessory Tradeshow $2,500 $2,500 $2,500
Magazine Ad - Automotive Logistics $5,000 $5,000 $5,000
Magazine Ad - Automotive Industries $6,000 $6,000 $6,000
Magazine Ad - Automotive Industries $5,000 $5,000 $5,000
Trade Association Fees - Automotive Aftermarket Industry
$1,000 $1,000 $1,000
Association
Promotional Items $2,000 $1,500 $1,000
Auto Aftermarket and Tuning Fair (Tradeshow) $2,500 $2,500 $2,500
Total Sales and Marketing Expenses $25,00 $24,25 $23,500
2

25. 5.0 Controls
Stringent control activities must be in place in order to monitor quality and customer service satisfaction
so *Company Name can respond immediately to any problems. Once contracted, customer relationships
will be managed using reviews, customer satisfaction surveys, problem resolution, and continuous
improvement.
The following performance metrics should be implemented involving key performance indicators
reported on a regular basis:
Sales Metrics Customer Service Metrics
• •
Number of retained customers On-time delivery
• •
Number of sales calls On-time pickup
• •
Amount of new revenue Orders shipped
• •
Amount of recurring revenue Space utilization
• •
Number of proposals given Claims ratio
• •
Competitive knockouts Rating and billing accuracy
percentage
Marketing Metrics
• Cost per shipment vs. historic cost
• Cost per interaction by campaign per shipment
• Customer retention rate • Monthly optimized cost savings
• New customer retention rate
• Customer satisfaction
2

27. *Company Name should aim to embrace a top-to-bottom quality management approach to keep its
customer retention rate above 95%.
*Company Name should ensure that all the stakeholders involved in the implementation of the
contracts are kept informed with daily updates via the tracking system. Executive summaries are to be
sent regularly. The daily updates would help minimize phone calls coming from higher-ups inquiring
about the progress of the contracts undertaken.
5.1 Implementation
The sales cycle is typically yearly from May 1 to April 30 of the following year. *Company Name
purchases container space from the shipping companies. The sales team makes calls to renew contracts
beginning in January and signs new clients to gauge amount of space needed. Contracts, however, do not
have to be signed in January; they can be done at anytime.
In March, Request for Proposals (RFPs) are sent to the shipping companies based on anticipated space
needed. *Company Name assumes the risk for unused space. Any clients that do not use the space they
requested are not penalized by *Company Name. However, *Company Name may face additional
penalties from the shipping companies for not using the contracted space. *Company Name does also
have the ability to obtain more space if needed.
The first four bullet points will happen immediately between January and April
• Create prospect list of 10 potential clients, wholesaler/importers & retail chains
• Generate sales calls to these prospects.
• Create/design advertisement that can be used for trade publications and brochures that target the
aftermarket auto parts.
• Attend trade shows
• Ink one to two contracts, not necessary immediately, this is longer term goal
Longer term goals
• Increase prospecting follow up with prospects met at trade show -- six months
• Within 1 year meet breakeven for marketing budget.—125 containers
• Ideal target is 800 containers signed for the 2009 RFP
• Year 2 leverage relationships built with clients to increase client base and containers.

28. Table: Milestones
Milestones
Milestone Name Start Date End Date Budget Department
Create Prospect List 1/1/2008 1/31/2008 $0 Sales
Sales Calls 2/1/2008 2/28/2008 $0 Sales
Design Advertising 1/1/2003 1/15/2003 $1,000 Marketing
Taipei International Auto Parts & Accessory 4/9/2008 4/12/2008 $2,500 Marketing & Sales
Show
Auto Aftermarket and Tuning Fair 4/15/2008 4/20/2008 $2,500 Marketing & Sales
Magazine Ad - Automotive Logistics 3/15/2008 4/15/2008 $6,000 Marketing
Magazine Ad - Automotive Industry 2/1/2008 3/1/2008 $5,000 Marketing
Magazine Ad - Automotive Industry 1/1/2008 12/31/2008 $5,000 Marketing
Promotional Items for Tradeshows -- Key 11/15/2008 12/15/2008 $3,000 Marketing
Chains & Pens
Totals $25,000

29. 5.2 Marketing Organization
There are several layers of management within *Company Name. As a privately held company, the
ownership is more heavily involved in the day to day operations. Tony Bikhazi is President of the
Americas and one of three owners. David Bennett reports directly to Tony and is the Vice President of
Sales and Development heading the U.S. sales and marketing function. Karim Azar is the Director Sales
Administration and Planning and reports to David. Philip Wolfe is the Sales & Marketing Coordinator
but primarily focuses on inside sales and reports to Karim Azar. Bill Smith is the Director Supply Chain
Management whose central focus on marketing role and reports to David. Jason Manganaro is the
Marketing Communications Specialist and reports to Bill. Lindsey Heiden is a Marketing Intern and
reports to both Jason and Bill.
Given the multiple levels, *Company Name’s entire marketing organization will be involved in the effort.
Specific roles are as follows: Bill Smith will be responsible for the marketing plan implementation,
working closely with sales management (David, Karim) to guide the sales force effort (sales calls). The
actual marketing effort (press releases, advertising/promotion, execution, campaigns) will be conducted
by Bill and Jason. Critical issues to the success of the marketing effort include hiring a 3rd quot;Full Timequot;
marketing employee in 2008 to help Bill and Jason.

30. REFERENCES
Automotive Aftermarket Industry Association 2008 Schedule of Events. http://www.aapexshow.com/.
Retrieved December 4, 2007
*Company Name’ website. (2007) www.*Company NameExpress.com. Retrieved throughout the
semester.
*Company Name. (2007) *Company Name MKTG MBA Project Overview UNCC 9_17_07
presentation.
*Company Name. (2007) *Company Name Marketing Department. Segment Analysis: Auto Parts
presentation
Gordon, Benjamin. (2006) State of Industry and Opportunities. http://www.eyefortransport.com/3pl2007/
knowledge_center_download.shtml. Retrieved November 20, 2007
IBIS World Industry Report. Freight Transportation Arrangement in the US: 48851.
https://connect2.uncc.edu/industry/,DanaInfo=www.ibisworld.com+default.aspx?indid=1209.
Retrieved October 27, 2007.
IBIS World Industry Report. Automotive Parts and Accessories Stores in the US: 44131.
https://connect2.uncc.edu/industry/,DanaInfo=www.ibisworld.com+default.aspx?indid=1012.
Retrieved October 15, 2007
IBIS World Industry Report. Motor Vehicle Supplies and New Parts Wholesalers in the US: 42112.
https://connect2.uncc.edu/industry/,DanaInfo=www.ibisworld.com+default.aspx?indid=914.
Retrieved October 15, 2007
International Trade Administration website. (2007) http://ita.doc.gov/td/auto/data/index.html. Retrieved
October 22, 2007
The North American 3PL Market – A brief analysis of eyefortransport’s recent survey (2007).
http://www.eyefortransport.com/3pl2007/knowledge_center_download.shtml. Retrieved November 20,
2007

31. Appendix Table: Marketing Expense Budget
Marketing Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Budget
Design Advertising $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taipei International $0 $0 $0 $2,500 $0 $0 $0 $0 $0 $0 $0 $0
Auto parts and
Accessory Tradeshow
Magazine Ad - $0 $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Automotive Logistics
Magazine Ad - $0 $0 $6,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Automotive Industries
Magazine Ad - $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000 $0
Automotive Industries
Trade Association Fees $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
- Automotive
Aftermarket Industry
Association
Promotional Items $2,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Auto Aftermarket and $0 $0 $0 $2,500 $0 $0 $0 $0 $0 $0 $0 $0
Tuning Fair
(Tradeshow)
Total Sales and $4,000 $5,000 $6,000 $5,000 $0 $0 $0 $0 $0 $0 $5,000 $0
Marketing Expenses

32. Appendix Table: Sales Performance Metrics Dashboard
Sales Metrics
January 2008 - December 2008
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Sales Metrics
Number of retained customers
Number of sales calls
Amount of new revenue
Amount of recurring revenue
Number of proposals given
Competitive knockout

33. Appendix Table: Customer Service Performance Metrics Dashboard
Customer Service Metrics
January 2008 - December 2008
Jan-
08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
On-time delivery
On-time pickup
Orders shipped
Space utilization
Claims ratio
Rating and billing accuracy percentage
Cost per shipment vs. historic cost per
shipment
Monthly optimized cost savings

34. Appendix Table: Marketing Performance Metrics Dashboard
Marketing Metrics
January 2008 - December 2008
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Cost per interaction by campaign
Customer retention rate
New Customer retention rate
Number of customer referrals
Customer satsfaction