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Marketing Plan

Essay by 24  •  December 30, 2010  •  2,319 Words (10 Pages)  •  1,064 Views

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2.0 Introduction

Founded in year 2001, Oriental-E Auto (OEA) is led by a team of experienced Sales Person & Directors in the automotive field who deals with the sales of used cars in Selangor, Malaysia.

OEA consists of comprehensive and quality selection of the used cars in Malaysia. The cars range from Proton, Perodua, Honda, Toyota, Nissan, Ford, Mercedes Benz, BMW and various other brands. The main sales centre located in Jln Kapar, Klang while another branch is in Seksyen 18, Shah Alam.

2.1 Vision and Mission

 OET Vision is to be the leading and most innovative car distributor and to achieve a well-balanced diversified business.

 OET Mission is to provide excellent support and a service to its valuable customer by practicing the philosophy of customer is always right.

2.2 Product and Services

The core business of OEA is to sell used cars in Malaysia. All makes of used cars are bought and sold such as Proton, Perodua, Toyota, Nissan, Honda, Hyundai, Naza, Kia, BMW, Mercedes Benz, Mitsubishi and many more. Besides selling used cars, OEA also provides after sales car maintenance services to customers to be equal to new car buyers in Malaysia.

OEA also provide other services such emergency breakdown services, car tow, maintenance and repair workshop to ensure continuous customer relationship. Delivering a quality product and service are the motto and core competencies of OEA in Malaysian used car market.

3.0 Strength, Weakness, Opportunity and Threat (SWOT) Analysis

The SWOT analysis addresses the strengths and weakness within OEA and the opportunities and threats that exist in its environment. This analysis will be able to identify the areas to be leveraged and points out where OEA must improve in determining the appropriate marketing strategies to market the current downturn of used cars demand.

3.1 Strengths

OEA strengths include:

Ð'* Team members comprised of young and energetic minds.

Ð'* User friendly and easily accessible staffs and management team.

Ð'* After sales support which most other competitors are not focused.

Ð'* High experienced staff who previously worked for other used car dealers will be able to share the experiences gained.

3.2 Weaknesses

OEA weakness includes: -

Ð'* Very young and new company as its only 6 years since start of operations lack of experience compared to some other very well established competitors.

Ð'* A lot of competitors nearby focused on same town. (niche market)

Ð'* No historical present

Ð'* Cheaper new car prices and lower interest rate

Ð'* Limited capital resource

3.3 Opportunities

Opportunities available to OEA include:

Ð'* Very drastic value drop of new cars just after few months of usage affects consumer thinking of the need to change new car.

Ð'* Increasing inflation rate and lifestyle cost naturally encourage consumers to limit expenditures on liabilities such as vehicle.

Ð'* Easer and flexible loan finance by various finance institutions made loan process easy, which benefits the consumers.

Ð'* Customers' looking for a good service rather than just good price gives opportunity to OEA to enhance the customer service.

3.4 Threats

OEA threats include: -

Ð'* Increased competition from other old competitors.

Ð'* Low interest rate for car loans by banks.

Ð'* Existing reputation of some used car dealers as "cut and join" of accident cars.

4.0 Environmental scanning of current status

Environmental scanning is the process in which a firm continually collects and evaluates information about its external and internal environment (Customessaymeister, 2007). In simpler words it means, continual monitoring of the external environment that could impact the organization. Environmental scanning can be looked at 2 perspective, macro environmental scanning and micro environmental scanning.

4.1 Macro environmental scanning

The macro environment consists of forces that originate outside of an organization and generally cannot be altered by actions of the organization. Macro environmental variables include socio-cultural, technological, political-legal, economic, and international variables (Alex, 2000). In the context of used vehicles business, the elements that analyzed are as below:

4.1.1 Political Factors

Political stability in surrounding area of Klang and Klang Valley is generally stable. Not much political factor contributes to used car industry specifically.

4.1.2 Economic Factors

Economic factor plays a major role in this business as interest rates for used cars are higher than newly manufactured cars. This is a factor that follows the market force which is decided by financial institution. This has quite an impact on buyer's decision as consumers would reluctant to pay higher interest rate. Current inflation rate spikes every year due to the ratio of income against expenditure raises constantly would effect the buying exercise as well.

4.1.3 Socio-cultural Factors

Socio-cultural factor do contributes to this industry. Preference of consumers to choose a imported / non-local cars for the quality and durability compared to local Malaysian cars. Another factor here that affects this industry is the gender equality where roles of women within society are changing from a housewife to working / businesswoman. This creates the need for transportation.

4.1.4 Technological

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