A.
Executive Summary
Marketing planning is a systematic process involving the assessment of marketing
opportunities and resources, the determination of marketing objectives and the development of a
plan for implementation and control. (Dibb and Simkin, 2001)
A marketing plan lets you implement an integrated strategy with regard to your customers
and your sales goals. The marketing plan identifies the characteristics of your potential
customers, details where to find them, specifies how to reach them and suggests how much they
will pay. It forms the basis of your sales activities and marketing initiatives. Its purpose is to
focus your efforts and avoid wasting your resources. (Bert Markgraf, n.d)
The Rapide Tire Hub has been launched for 4 months in the tire industry. It is located at
Brgy. Taculing, Bacolod City. They’re aiming to be known as the one who offers the cheapest
price in the tire industry. They seek to produce high quality product at a cheaper price to provide
customer satisfaction. Although it is newly launched, they believe that the company will
continue to grow by the next 5 years.
The Rapide Tire Hub is focusing on its all consumer vehicle tire segment in whole Panay,
Negros Oriental & Occidental market. It is a sister company of De Pedro Tire Supply. They offer
different types of brand tires with a cheaper price in all types of tires. The Target Market is end-
user and reseller client.
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B. Current Marketing Situation
The automobile sector employs 6 people. Tire is a major component of all
automobiles and ensures safety of the passenger and long life of the car. The total
consumption of tires in Western Visayas is approximately 6.5 million tires. Sector wise
growth for the tire industry in the last 4 months has been as follows:
1. Sales
Since the month June, the sales are 7.9 million. They have set a target to
get 2 million every month. If they reached it, the employees will receive P1,500
as incentives.
Month Sales
June 2.1M
July 2.2M
August 2M
September 1.6M
2. Costs
Their estimated monthly expense;
Salary and Commission P60,000
Freight and Shipping P8,000
Vehicle Repair and Maintenance P4,000
Registration P3,000
Supplies P2,000
Communication and Post P2,500
Miscellaneous P1,000
Account Payables P400,000
Light and Power P4,500
Total P485,000
3. Profit
For a month, they gain;
Sales Costs Profit
P2,000,000 P485,000 P1,515,000
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4. Competitors
Brand and product level competition focuses on identifying similar
products offered by competing brands. In the case of passenger car tires the major
competition is from imported tires of Japanese, Chinese and Korean origin. These
include:
Bridgestone
Yokohama
Michelin
Dunlop
Marshal
Nexen
These brands are expensive but the market still continues to purchase it
because of the high quality product.
5. Channels
For now, they have a social media account in Facebook for advertising
their products, telemarketing customers through phone calls, referral bases and it
is a sister company of De Pedro Tire Supply located at Bacolod and has a branch
in Iloilo.
6. Supply
The products they get are from the following suppliers;
CSS Parts Sales Inc. – Sanful Tires
Ram Tires Inc. – Winda & Boto Tires
First Rubber Manufacturing – Toyomoto & Achilles Brand
7. Forces in the Macro-environment
In implementing good marketing strategies we should consider the macro-
environment forces;
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Political Factors
Driving laws
Demographic Factors
Driving age
Economic Factors
Buying power
Social-Cultural Factors
Health Concerns
Technological Factors
Promotion opportunities
Slow internet
Natural Factors
Logging
Pollution
Traffic Congestion
C. Opportunities and Issue Analysis
The SWOT analysis covers the internal strengths and weaknesses of Rapide Tire
Hub along with the market opportunities and threats that exist in its economic
environment.
Strengths
Strong dealership network all over Western Visayas
Prompt after sales service
Tires are covered by warranty against manufacturing defects
Sales agents are qualified and well experienced
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Introduction of a new Truck/Bus radial tire
Weaknesses
Greater portion of sales is highly dependent on cheaper prices
Performing poorly in the commercial vehicles segment
Dealers have very low profit margins in the products
Low brand name awareness
Opportunities
Expanding into more branches
Improving relations with existing dealers to increase their loyalty to the brand
Improving advertising efforts to enhance the brand image and perception of
products
Increase market penetration through selective new dealerships
Threats
Continuing and increased, smuggling of tires
Reduction in real purchasing power of consumers due to high inflation rate
Increasing competition from local and imported brands in the market
Improved performance of local competitors
Lower prices offered by competitors
D. Objectives
Reach the target of 2 Million at the end of the month and have 5 additional clients
in a week. For the next 5 years, additional 3 branches in different places and to be the
known as the one who offers the cheapest price in the tire industry.
E. Marketing Strategies
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Product
The Rapide Tire Hub is a tire distributor in Negros. They offer tires to both
resellers and end-user. Following is the product strategy;
All PCR’s and TBR’s Tires offers Winda, Boto, Sanful, and Toyomoto Tires.
Rims and Mags – Tofu Brand
Price
The Rapide Tire Hub faces heavy competition in the tires segment in Western
Visayas. It sells on a cheaper price on the promise of quality and its expertise in the field
of tires.
Promotion
They created a page in social media like Facebook so that customers will know
about the business. They posted some of their products that they sell. They offer free
mounting for every piece of brand new tires and give tire samples.
Place
The Rapide Tire Hub is located at Brgy. Taculing, Bacolod City along the
highway that is accessible for the customers. The tires are mostly sold to dealers and
agents. It has tire changer and vulcanizing services.
F. Action Program / Recommendation
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Activity Inclusive Date(s) Person(s) Budget Progress
Involved Measurement
Dealer’s Meet Every month of Clients P20,000 20% out of 100
August
Team Building Every Summer Employees and P50,000 15% out of 100
Employers
Freebies (Shirt,
Calendar, Ballpen Every month of Clients P50,000 Soon
and Umbrella) December
G. Implementation and Control
The following areas that will be monitored;
Target sales in every month
Improvement of the product/business
Additional clients
More product promotions
In achieving their desired goals they need to promote the product through
Facebook with 2 posts per week and introduce the business through a caravan along the
city and all strategies will keep in mind for implementation.
