Gen X Marketing Plan 3

GenX EnginesMarketing Plan for New engine line

684 Marvin AvenueSt. Joseph

p. 269 834 6462f. 269 834 4242

[email protected]

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Table of Contents

Executive Summary.......................................................................................................

Highlights

Objectives

Mission Statement

Keys to Success

1. Description of Business...................................................................................

Changes that affect business decision

Location

Products and Services

Suppliers

Service

Manufacturing

2. Marketing..........................................................................................................

Market Analysis

Marketing Organization

Marketing mix

Target Market

Advertising

3. Market Segmentation

Competition

Pricing

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4. Strategy and Implementation

Evaluation of control and performance

Milestone

References

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Executive Summary

GenerationX engine brand is a growing company that focuses on quality products,

friendly customer service atmosphere and innovation work environment in order to build a

brand that means number one in large engine production. The company is still in its growing

stages we have hired a select group of employees that are very experienced and devoted in

developing and engineering quality products. GenX made this move to reinforce a brand

loyalty by providing our customers with a professional staff that is at their disposal when

they purchase our engines. Our goal is to sell the whole experience which includes the

engine, customer service, full service accommodations and guarantee that we are there for

the customer at the original purchase and the entire time they own the engine.

Providing education and resources to our customers will give them all access pass in

getting the best experience while owning our engines that include installation, maintenance,

troubleshooting and a breakdown of all parts associated with our engines. Over 50%

percentage of our current customers are small transit companies, and their positive feedback

has contributed to our customer base continuing to grew to the point where transit companies

in the bigger markets are starting to take an interest in buying our engines.

We have a strong relationship with all our suppliers that allow us to provide the quality

and expert service with our engines while keeping the cost to the consumer’s low.

GenerationX engines brand represents the future in engine design by focusing on what is

important to the customer and the environment while staying relevant in the industry.

GenX has put together a small group of experienced team members allows us to stay

focused on building a brand that is number one in large engine production. By having the

concept of providing a full experience instead of just selling an engine, we can separating

GENX ENGINES - MAY 2014 3

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ourselves from our competitors. We plan to become a one stop shopping company for all

products surrounding engine manufacturing and being known throughout the industry as the

company who cares about their customers. The objectives and business philosophy that

GenX established when they first started will have little negative effects on operations as our

business continues to go because the business philosophy will be a way of life and not just

objectives. By providing education and resources to our customers may be an added expense

to our original production, but the cost will be worth the return on investment once the

engine line is up and running.

Focusing on innovation, customer service, and quality will assist the customer in

lowering their overall expense in engine purchases. Giving the customer a sense of security

when buying our engine will help in building a long term relationship and loyalty

recognition. Providing additional services that are part of buying our engines will provide

extra incentives to our target markets in considering our engines before our competitors.

With our customer base starting with a small business, we can establish a reputation of

being a company that can fit your needs no matter how big your business is; this is a great

selling point because we do not limit ourselves to just one area of our target market. Having a

great relationship with our suppliers helps our target audience when it comes to cost of the

engine as well as cost of repair parts in the future. By continuing to find new and innovating

ways to improve on our product, shows our target market that we can provide them with

quality engines today and in the future no matter what environmental or economic changes

may occur.

The marketing team took months of research, and the results were a new engine line that

has been designed to break them into the growing business of transit engines in both national

and international markets. This line will include gas, diesel, natural gas and electric engines


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for all types of coaches. They both think that the new design will make their business a

competitive force in the transit industry and open doors in providing engines in the highway

and construction industry. With the new line GenX will also redesign their logo to be more

appeal to the eye and can be used with their future appeal lines.

Original Logo GenX Engines

New Logo

Now in 2014 they have development a very successful engine manufacturing company

that services demand response, private transit agencies and other public service agencies.

Daryl and Bill sat down together and looked at the direction of the business and decided they

wanted to move into the global market starting with the United States. They also want to

establish a strong enough business concept that will go passed transit engine and reack all of

the transportation industry.

Highlights

Produce quality and environmentally friendly engines

Expansion into new market

Increase customer base

Build brand loyalty

Expand vendor base while maintaining a close relationship environment

Continuing innovation advancements


GENXEngin

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Expand target market

Objectives Develop a diverse engine line that can penetrate the new markets

Take the business to a new level in the transportation industry

Provide a solid training program for employees and customers

Making resources for customers accessible in many different formats

Saturate market with multiple marketing techniques to expand awareness and

build brand loyalty

Stay ahead of the target markets needs

Continuous monitoring of laws, regulations and environment changes

Reinforce the teamwork that will develop our strengthens and build on our

weaknesses Use all opportunities to develop our products and the company itself

Mission Statement

Provide environmentally friendly, affordable and quality products that can fit any customer’s

budget. Expanding the company while maintaining a personal connection with vendors,

customers and employees. Committing to continuous innovation, education, quality and

contributing positively to the environment.

Keys to Success Create a demand for your product

Provide what we advertise


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Build strong relationships

Stay on top of changes

Build brand loyalty

Make products easily accessible with multiple outlets

Provide options to fit any budget

Description of Business

GenX Engine provides a variety of engines that fit the customers’ needs and

budget along with other services that are associated in building and repairing engines. Based out

of the United States with 2 locations in Michigan. Our company started out as a family solution

to a local problem and has increase in momentum to a corporation and plan to collaborate with

other companies to provide even better solutions for customers in the transportation industry.

Economic Forces:

With the current economic conditions continuing to affect the population, the need to find

alternative means of transportation has become a rising concern and has shifted the public's

spending from owning vehicles to bikes, carpooling, trains and public transportation. The

percentage of income that the average American is spending on transportation continues to

increase, jumping .5% in the last year. The two major components in the increase are the rise

in fuels prices and a rise in purchases of fuel efficient vehicles, as economic problems

continue the consumer’s efforts to save money are being directed towards public

transportation. There has been a 1.42% increase in public transportation in the last year and


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will continue to increase as long as the percentage of people out of work stays at the current

rate, and fuel prices continue to increase. .

The main regulation and restrictions that we have to be aware of throughout the process

is the environment affects and costs benefits. The current economy has changed the

consumers spending, and companies are finding that they can no longer depend on brand

loyalty or product's quality to back up the price will not have the same effect as the

consumer's budget. Therefore guaranteeing that the engine passes all emission checks and

any other safety regulations.

The NAFTA and GATT should not affect our new engine marketing opportunities since

we have already established consumer base in most of our target audience. We will have to

keep a close eye on added testing and hidden tariffs that other countries may try to introduce

when penetrating new market segments. We will also be aware that introducing our new

engine into our existing markets that international business governances may want to modify

existing agreements in order to profit from importing these engines.

We have decided to create a team that will work with each of the international markets to

ensure that the transition into the new engine design will have very few to no hidden

obstacles once the engine is release into the market. The results from the report they develop

will be used to develop strategies that will incorporate any new circumstances that may

develop so that we can continue with our projected goals.

Political Forces:

Elective officials are focusing on the controls that focus on public transportation is becoming

environmentally friendly, providing proper safety equipment, and qualified professionals to

maintain these engines to ensure public safety. With the public transportation accidents and


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equipment failures becoming a common news story, some politicians are using these stories

to promote the environment, safety, and quality controls that are in place where others are

using them to provide reasons to cut funding.

Our company is working with local, state and federal representatives doing our development

stages to show them how this new line of engine will be cost efficient for everyone involved.

Providing documents with facts and figures on how our design is providing a positive

reaction from the public towards their government representatives and using public

transportation. While working with these different companies, we have seen a positive

response and potential involvement in future projects. Taking the time to correspond with all

these companies has helped us in the development of these new engines by getting feedback

and making alterations during the prototype process that may lower the percentage of

glitches during the first few years of production.

Technological Forces

Advances in reducing emission have our target market looking for engines that can

handle the wear and tear of transit functions without causing the damage that the past

and current engines have made on the environment. The manufacturer’s that produce

diesel engines have been working on a new version that will reduce diesel emissions

by 99% in nitrogen oxides and 98% in black carbon, allowing a zero emission result.

Current technology is a significant difference from the engines that were being

produced in 1988 which emitted 60% more emissions and contributed to the

deterioration of the ozone, the diesel engines now only contribute 6% to the

environment.


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The EPA keeps a close eye on the percentage of emissions that the transit industry

emits by creating such regulations such as a diesel emission’s reduction act.

Following in the governments feet steps individual states are also creating regulations

that limit the percentages of emission, California is a great example with their

California Air Quality Improvements. They initiated this program in order to reduce

frequent situations that occur in their state that include wildfires and residential fuel

combustions.

Gas engines are turning to natural gas engines that is 10% lower in fuel efficiency

than the diesel engine and has 35 to 45% lower lifecycle cost. Currently, 18% of all

transit buses are using natural gas engines and officials are suggesting that transit

agencies should eliminate their diesel engines and increase their natural engine that

will allow the emissions to decrease by 80%.

The advances in this type of advance technology is safer to the environment and cost

efficient to the buyers and their consumers.

The strict EPA emission requirements, developments in fuel efficiency,

improvements in power and developments in domestic resources will be important

factors when manufacturing our new engine line and the way that we promote the

engines.

We plan to stay 10% below the emission’s requirements, 55 lower than the current

fuel efficient engines, life cycle cost that is completive with the gas engines currently

being produced. Using technology that lower oil usage in order to keep materials and

production within the domestic market while increasing our sales in both domestic

and international markets.

With each market segment has different priorities when purchasing engines, we will

have to research the each market to find out what their needs are and how product are


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can fit these needs. One way will be surveying transit companies in both domestic

and international markets and developing marketing strategies that will appeal to the

consumer in each market that we plan to sell these engines. In order to market the

new engines, an imperfect competition will provide us with realistic needs of our

target audience.

The information that we have gathered during our development stages and

taking in the consideration the feedback from our government officials and surveys of our

target audience we feel confident that the engine we have design will perform favorably in

the current market and future markets. Our development team ensured us that the design

concept has the capabilities so alteration can place as the regulations and needs change in the

industry.

Sociocultural Forces

With the cost of fuel and basic needs of the consumer changing so is the way that

manufacturers are developing and producing products, so it is our goal to produce high

quality engine that is fuel and cost efficient without putting the cost on to the consumer in the

first year of production. We have also noticed that age cohorts have changed where the

leaders of our target audience is younger and have different buying patterns than their

predecessors.

In order to market our engines, we need to be aware of these changes so that we attract

our target audience in each of the markets that our engines are entering. With the knowledge

that we are still a business in its early stages of recognition, we also intend to develop a

marketing strategy that will be attractive to consumers that are currently using our

competitor’s engines. Our team is well aware that these types of consumer may be a little


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more difficult but we feel confident that with the right market strategy back up with a quality

product we will be able to convince these consumers to try out our engines before making a

decision.

Our company is still in its early stages of development so the general attitude of society

is more in the curiosity stage than having a positive or negative attitudes about our company

or our products. We believe that this new engine design will put us on the map and give

society a positive attitude when they hear our company name within the transit community.

We intend to use this new engine to improve our branding style of high quality fuel efficient

engines with low repair cost and demandable customer service.

We understand that our consumers are looking for quality, cost and have a practical

application. Consumers are willing to pay for quality unless they have to spend obsessive

amounts of time learn to use the engine or to work on them, because we tend to create a

department that focuses on providing any additional information that our consumers may

need. All parts to service these engines will also be accessible so that our consumers can

keep their engines in peak performance with little down time.

Even with the advancement in fuel efficiency and lower environmental impacts

individuals and groups that are driven by increasing a green environment will continue to

find a negative aspect in the new design in order to increase the need for fewer commercial

engines on the road. The EPA will also monitor our product to ensure that the claims we

promoted are being honored, and the EPA will notify us if we are in danger of violating our

claims or any government, state and local regulations.

We will provide a breakdown on how GenX will achieve the objectives and claims we

have been promoting for our stockholders and our consumers, by providing this information


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we are sure to relieve any doubts in our stockholders and consumers about the quality of our

engines because of the price we are offering. Our goals are to follow all regulations and

standards that surrounds the making of these types of engines and will make the modification

to the engine prior to launch for public purchase.

Location Our current manufacturing plant and business office is located in St. Joseph Michigan

We can be found on the web my using www.genx.com

GenX engines currently employs regional representatives

o North, South, West and East – 3 representatives per regions

By 2018 we will have two additional locations in United States and two locations in

the international markets.

o California

o Virginia

International Market

o England

o China

By 2019 increased locations

o Texas, Georgia, Nevada, Washington

o Oregon New Jersey, Ohio

International

o Sweden, Australia


http://www.genx.com/

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Products and ServicesGenX is a full service engine supplier that includes manufacturing, special builds,

training, parts and repair manuals and online resources, client personal representatives,

Annual Customer appreciate week, parts department, certified mechanics and engineers,

discount services, promotions, trail offers and 24 hour customer services.

SuppliersOur current suppliers our local vendors that we have built strong relationships with and

have become part of the GenX family. With this type of environment, they are just invested

in the quality products as we are. With the development of our new engine line, we are in

negotiation with multiple suppliers so that GenX can improve our resources.

As we develop, we intend to use local suppliers that surround every new location. GenX

feels that a part of being a successful business is investing in the community surrounding the

company. When we bring new Suppliers on board, the focus will be a team environment and

making sure that the people we work with our moving in the same direction as GenX that

includes our values and focus.

ServiceGenX provides engines for several different applications for the Transit industry; our engine

inventory includes:

o Diesel, Gas, Hybrid, Natural gas, electric

With our new engine line, we will be able to accommodate customers that have the smaller

service buses all the way up to luxury and specially designed coaches. Because of the special


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design that our certified engineers developed we can also customize the engine to suit the

customers’ business and budget.

We will be proving training seminars with the purchase of our new engines throughout

the first year. Part of our services is providing a representative visit monthly to assure that the

customer is satisfied and provide information on any topics that the customer may have. This

service are provide as long as the customer owns a GenX engine.

To encourage potential customers and competitors customer our new engine line we will

offer:

Prototypes - providing us with concrete data to use in attracting new customers and

developing word of mouth advertisement even before the engines our out. The companies

that we choose to use these prototypes will be able to create a buzz about our upcoming

engine line by expressing their opinions about the engines to other companies within the

industry. Our prediction is that a prototype tactics will generate new business even before the

product launch, having potential customers seeking our company out to obtain information

about our company and engines.

Direct sales - sending out our representatives to potential customers and having them

provide information about our engines and how using our products can benefit their

company's overall performance, the economic advantages in the current and future markets.

Discount programs - Providing a variation of discount programs that will fit any budget

when a company decides to purchase our engines


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Trail offers - We will use trail offers as a way enticing competitor's customers to use our

engines over the competitor's engines

Demonstrations - will be used to promote public awareness and generating a constant

buzz about our company and engines. Demonstration will be used at conventions, three

month campaign where our company will travel across the united State, by request and state,

county, federal functions.

Training and online resources - The market environment changing offering

additional services included in the purchase of our engines can set us apart from our

competitors. GenX will provide hands on training during the first three months, after that

training will continue to be available in the form of monthly training seminars, online

training, training e-books and videos and special site training when requested.

Part Department - In-house and website parts department for our customers to have

access to any part that is required to keep the engines in top performance. We will also

provide vendor locations that supply our parts near the customer’s business, because we feel

any time that our customer has to delay work because of repairs on our engines is not good

business.

Service Plans-We intend to provide 10, 15 and 20 year service contract with every

engine that will cover manufacturing defects on all major components, replacement engine


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that have reached it service limits and GenX service techs maintenance that the company

cannot perform themselves.

Web Advertising Development

The company website – This will offer as part our direct sales and provide our customers

direct access to our company no matter where they are located.

Website Advertising – Using all the major search engines, automotive relative web pages

and online shopping networks.

Search Engines:

MSN, YAHOO, GOOGLE, FIREFOX. INTERNET EXPLORER

Other website:

New Flyer, Muncie and Mohawk

Online shopping networks

E-bay, Amazon, overstock, Nationalbusparts.com and Highway &Heavyparts.com

Marketing

The overall performance of the transportation industry, specifically the transit market is not

declining; however the components of competing in this industry are changing and have

made staying in the market a little more difficult. because of financial needs of the engines


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being developed currently and in the future. The need for transit engines has been increasing

due to the need for alternative transportation for public and personal use; the economy and

the environment have plan a significant role in the way get around. All companies that want

to maintain a viable competitor in this industry has to make these issues a standard in any

decision making for their current and future products.

Market AnalysisThe current needs of our demographic target market are to find fuel efficient, low

emission and cost effective parts and materials to be used on their buses in order to provide a

safe and economical mode of transportation that will have very little environmental effect on

the earth's atmosphere. They are looking for ways to increase transportation reliability, cut

repair cost and improve service performance in the long term. They are looking for an engine

that will meet all current regulations according to their government policies and geographical

location without compromising other areas of their budget or safety protocols.

Another essential need is obtaining an engine that can be easily worked on were the

repair parts are convenient and affordable, transit agencies understand that a good percentage

capital spent for engines is not spent on the initial investment but the maintenance of that

investment. The economy and the environment have affected the way that the target market

is buying, and manufacturers have to be very aware of these changes in order to stay

competitive.

The government and society as a whole as express their concerns about polluting the air

and economic environment to the point where manufacturers must pass rigorous regulations


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just to put their products on the market. These changes have been a curse and a blessing

because the investment to make these engines have been extreme and have caused companies

to either close down or merge lower the number of competitors. Having fewer competitors

can help companies like ours because we have a chance to make a dent in the market, on the

other hand, making sure you have the right capital in order to enter the market is a higher

priority the in past years.

. GenX will use regions and types of customers when marketing their engines because the

incentive to buy this type of product is surround by the customer's environment that they will

be using the engine in and the customer's business. We are not going to offer our heavy duty

engines to a transit company that has small transit buses that are not used continuously, but

will offer our mid-size engines that will perform the best for their business.

Marketing organization

All our representatives will go through training and certificate to enable them to work with

our customers and make decisions that benefit both the customer and the company; However

new bulk buys will have to be reviewed by the board before signing an agreement with our

customer.

To ensure that the customer feels that their needs are our priority the board will arrange a

meeting with the customer either at their business or one of our distribution centers instead of

sending a representative. Once the deal is complete the customer will be assigned a

representative that will be well informed on what the agreement states and will be able to

make judgment calls in the future.

We are just as concerned about the happiness of our employees as we are about our

customers and will provide a variety of incentives that make the employee feel as a member


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of the team and not just an employee. Quarterly bonuses, increased personal days for every

year of service, Christmas bonuses, quality insurance benefits to employees and their

families, retirement plans, continuing coverage after retirement and input on changes made in

their department.

GenX will provide monthly organizational meeting were all employees come together

and share vital information the affect the company. We will also instruct department

manager’s to implement weekly department meetings that will enable employees to come

together and address and issues, concern or developments that could affect the current

business strategies. Creating a working environment that promotes creativity, employee

input, and a sense of ownership that will enable the company to achieve the marketing

activities that are expressed in the business plan.

Marketing Mix

Establishing a solid marketing and making strategy a business need to look at all aspects

of introducing a new product which includes:

Unforeseen events in any part of the new product.

Looking at negative results due to these unforeseen events, looking at the initial

Investment against the projected return on investment and the current balance

between supply and demand.

Information that can be very beneficial in developing a new product or product

line.

o The target market demographics

o The competition strengths, weakness and customer base

o The average pricing for similar products


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o suppliers for your raw materials and retailers that the company can use to sell

their product

o Retrieving this data will aid in the marketing success of the product, build brand

loyalty, dominating the market and the business.

GenX plans to use several different forms to measure that success of our new product line

1. Gathering opinions in the form of:

Surveys- current customers, potential customers, competitor’s customers, vendors and

suppliers

Focus groups – they will be performed before, 6 months and one year after product

launch

2. Evaluating numbers

Monitoring web activities, sales, buyer trends, industry environment

GenX can use these observations and statistics to get a well-rounded perception of how well our

new engine line is performing. These surveys, statistics, evaluations and other measuring tools

help companies make correction or discontinue a product.

Target Markets

Identification

The target market that our company will focus on is travel and tourism, public

transportation, private buses company and Transit repair service providers in the United


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States and foreign companies. Tailoring our market strategies to be structured according to

the customer’s needs, the environment in which they operate and the type of load capacity

that they will need, understanding all these areas allows us to focus on offering the clients the

products that best suit their needs.

Our target market is transit companies, and they spend an average of 53% of their budget

on vehicles and maintenance, part of their focus now is to find ways to lower fuel cost by

switching to alternative bus options such as hybrids and Trolleys. They also want to provide

a safe and comfortable ride for their commuters, so providing an engine that can provide

quality, fuel efficiency and low repair cost will be a big selling point. The target consumer is

buying more engines, with bus manufacturer’s ranking as the top consumer followed by

transit agencies, with the current transportation trend showing an increase in public

transportation the need for future engines will continue to increase.

When determining how to approach each potential client, we understand that needs are

imperative, and this includes geographical characteristics. Our R&D department will use the

PRIZM strategy we will be able to obtain the information regarding geographic and

demographics in each of the markets we tend to offer our engines. We know that the type of

engines that are beneficial here in the United States may not fit the needs or regulations in the

European markets. Working within each countries regulation and the transit companies

themselves will help us in offering the right engine to the right market and will give us the

best chance for a sale and repeat business.

With the economy in its current status, every market is looking for an engine that is fuel

efficient and emits the lowest emission discharge. Our engines will be fuel efficient

according to the fuel that is design for and score below the standard government regulations

for emissions. Our competitors’ already have established themselves in all the major markets


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that we will be entering and have recently produced a new line of engines that also focus on

the key elements that we our offering.

We however tend to stand out over our competitors by providing our target market with

specific information on how using our engines will satisfy their needs now and in the future.

When going into each market we will present data showing the cost and environmental

factors for the current industry, and we will also provide estimated forecast for the future on

purchasing our engines versus our competitors. Each market will have environmental factors,

financial needs, economic conditions and cultural behaviors differently. We will send out

surveys to all our current clients, send small teams to different market location overseas and

do personal interviews with transit companies and service centers to find out what they like

and dislike about their current engine manufacturer; the team will also find out what they

would want in an engine provider.

The more research that we do will help us when it’s time to launch our engines in

presenting the best marketing strategy to the right market.

The demand for Transit engines in the USA has increased slightly over the last few years

in all three major areas of use:

1. Long distance transit buses or coaches (average .5% a year)

2. City bus service (average 1.5% increase a year)

3. Demand Respond (average 5% increase a year)

In the European markets, the transit system is an essential part of the culture and has

continued to increase in numbers as the concern for environment safety and economic factors

are brought to the forefront in the decisions made about transit transportation. European

transit market is predicting a significant increase passenger usage and developmental


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improvements. Currently, 21.8% of Europeans use some public transportation, this number

would increase if transit companies could spend more of their capital on improving other

areas of the transit system that poses a negative impact on potential passengers.

Market SegmentationWe plan to use a differential marketing strategy in order to service different levels of

customer that are found throughout the target market by using trail offers, promotional

tactics, offering bulk discounts and providing variation of engines to suit the target

demographic requirements. We will also use social, Augmented, direct, relationship and

organization marketing strategy in order to demonstrate the uniqueness of our company over

they competitors.

Distribution strategy will consist of local and remote access allowing our customers to

order engines that are the most convenient to them, because we are a growing company

remote access will bring in a majority of our new consumer base. Remote Access or web

base sales give our customers a convenient way to purchase engines and services without the

hassle of leaving their state or country with the understanding that they will get the same

quality customer service as they would if they were to purchase our engines at one of our

distribution centers. Local access can be used by customers within our distribution center and

prefer a more personal interaction when purchasing our products.

The other type of distribution strategy that we will use is sales representatives that will

maintain marketing districts by visiting our customer's business once a month combining

local and remote access reinforcing customer's views of our company as a leader in quality

products and customer service.

Commercial bus companies - operating expenses vary depending on the size of the

organization, Greyhound budget will be much higher than time line coaches


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State owned bus companies -operating expenses are funded by a variety of different state and

government funds and have a set budget to work with

Tour Bus - vary just like the commercial bus and budget will be based on the scale of their

business

With the competition combining forces, we can see the financial stress to provide that right

engine to the right market is becoming paramount. We also understand with the rise in transit

transportation means there is a high demand for an engine that can handle extreme usage without

polluting the environment. In the United States the focus is more of finance and pollution where

the foreign markets are deal with multiple concerns because of their terrain having multiple

demographics that go from congestion and narrow to rough, long and dried out location. They

also have economic and environmental issues so the engine we may introduce to our United

States clients may not work for our foreign clients, so need to do as much resource as possible in

order to having them want to purchase our engines.

GenX based the target market on our existing customers and the potential customers in the

new markets that we are entering, our mission is to expand to become a leader in Diesel and

alternative fuel engine manufacturing. During this process we plan to continue making our

smaller accounts just as important as our new customers, remembering that brand loyalty cannot

be achieved without taking care of all of our customers the same way no matter what size their

operating budget may be


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Cum-mins/

Paccar 55%

Detroit Diesel26%

GenX Engines

19%

Domestic Transit Sales Segments

Cummins/Paccar Detroit Diesel GenX Engines

CompetitionOur current competitors are Cummins, Detroit Diesel because they are currently holding

the lead in the manufacturer of transit engines, and they have an inventory that can satisfy

any consumers needs not matter what the size business the consumer has.

Ford is a leader in small transit engines and has service centers all over the world that can

provide the customers with any replacement part at a moment’s notice. Ford also has a

network that can provide Ford with parts they do not have in stock with a short turnaround

time in which to provide Ford’s customer with the part requested.

Detroit Diesel is a company that is still ranking high in transit engine manufacturing even

though they were bought up by Daimler Chrysler. Detroit diesel made a smart move because

they now have more resources in which to pull from while still using the name that has built

a strong brand loyalty with engine consumers. The fact that they have such a strong brand

loyalty and now have capital that is as significant as Cummins, and they will be another

competitor that will make obtaining a significant part of the transit engine revenue difficulty.

Merging engine manufacturing companies will be another major threat to the number of

sales that we can obtain because their disposable capital will be extremely higher than the


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capital that we are currently using. The number of connections that these merging companies

have can make expanding into new markets harder on us because vendors and customers may

feel loyalty to these companies or signed contracts that state they only can work with our

competing manufacturer.

Intra-Competitors

Cummins has cornered the market in providing transit engines for the large and small

coaches that most commercial, state and government agencies are using in both the national

and international markets. They are up on all current government and environmental

regulations and provide variations of their engines in order to have engines that can be

affordable to other their consumers and any potential consumers.

Detroit Diesel has also consumed a large part of the large coach engine in both the

domestic and international markets, but all the products that they provide for their engines

may not have the brand logo on them because they tend to use aftermarket parts.

Inter-competition

Ford is based mainly in the domestic market but in the last few years gaining ground in the

international market. Their focus is on the needs of the smaller transit engines and gives them the

advantage of providing expert customer service and quality parts and service centers that are

conveniently located all over for consumer accessibility.

Doing prior research to understand the consumers wants, needs, budget, dissatisfaction and

what they like about their current manufacturer will allow us to focus on promoting certain

futures on our engines. We will be able to design our demonstrations, promotions, bulk buys and

trail offers so that potential consumers can be persuaded to switch from their current

manufacturer to using our engines. Providing information and examples of how our engines


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quality rank above our competitors in both large and small transit engines and the positive affect

on their budget now and in the future if they purchase our engines.

Intra competition is where our marketing team will have to present a strong web-based

environment that will demonstrate the quality and performance of our engine products and

services without human involvement. Other areas that we need to focus on in this competitive

environment is personal sales presentation and saturating the foreign market with vital

information and demonstration videos.

Inter competition is where are marketing team will use direct marketing,

demonstrations, prototypes and seminars to influences the customers. Because the competitors

are competing in the same region, state, district or cities making a personal connection with

customers can provide a platform to stand out amongst the competition.

PricingPricing strategy is to stay 5% lower than the average engine price in the current market,

this percentage allows us to attract customers without making a negative impact on our

revenue projections. As we build a strong customer base in our new market adjustments to

our pricing strategy may occur as long as it does not affect our initial business mission to

provide quality engines that are economically affordable.

We expect this initial investment to add 10% to our current budget and increase our

projected profit by 25% given us 15% return on investment. Operation will have to increase

their productivity once we hit the bigger markets, which would include hiring more

employees, adding machines and possibly a bigger facility. Having a strong working

relationship with our vendors will make getting the best materials in a timely matter an easier


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process, allowing our operation to perform at its peak and filling orders in the right time

frames. Staying compliant with all environmental regulations and satisfying the customers’

needs will be a significant portion of our operation's budget but the future investments and

sales will benefit from having this strategy in place.

Concentrating on both strengths and weakness to the new engine product line allows us to

strategize different ways to lower or eliminate these weaknesses and reinforce the strengths

before the company implements the production of the new engine line. After processing the

evaluation, GenX then establishes a price for a new engine line. The marketing team can then

adjust the price to reflect any pre-production cost not consider in the currently projected

budget before announcing the price to the public.

20162017

20182019

$1,000,000

$51,000,000

$101,000,000

$151,000,000

Sales

Net Profit

Expenses$1,315,000.00$1,325,000.00

$1,545,000.00$1,560,000.00

12500001360000

GenX New engine Financial forecast Overview

Sales Net Profit Expenses

Advantages in the Industry for our Marketing Plan


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With the market environment changing in the transit industry, GenX Engines has the

opportunity to establish a competitive edge over the major competitors in the market.

Changes that will benefit our company

o Environmental requirements

Economic factors

Company mergers

Transportation needs

Versatility

Service repair

Our current inventory already focuses on staying below the standard requirements

and the new engine line will surpass our current figures by 5% or more. We could see

even lower numbers after any adjustments that are made during the final stages of

development.

o After providing specific data about the engine line

o Environmental and emission testing

o Long term economic advantages

o Endurance

Low maintenanceo Replacement parts accessibilityo Training and warranty availabilityo Cost- now & future

We will be able to stand out over our competitors to attract our target audience that includes existing and potential consumers

Prototype -March10, 2016

Demonstrations - January 30, 2017

Direct sales - no completion date


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Trail offers - February 28, 2018

Website development - December 01, 2015

Web advertising development - December 10, 2015

Distribution of catalogs, pamphlets, flyers etc.... - May 04, 2016


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Advertising

We have constructed a marketing mix that focuses on customer

satisfaction in the current market and in the future, developing a well-

rounded business platform in which to build a strong brand loyalty

without forgetting how we started. Making sure that our company's

mission and vision stays intact no matter how big we become and always

providing quality products, customer service and reasonable prices that

will endure as the market continues to change. We are just as concerned

with profits as any other company, but we believe that profits are

produced by how well the company can satisfy their customers and,

therefore, putting more emphases on the customer’s needs will produce

positive results in our profits.

Just like the industry environment competitive advantage fluctuates

one minute you have the advantage and the next minute someone else in

the industry has come up with an even more successful advantage. That

is why it is important never to stop finding new and better ways in

servicing the target markets and the why to do this is to never stop

researching, developing and making advancements that will help in

keeping a competitive advantage as the market environment changes.

GenX has already developed a plan to include research and development

department that will provide the company with any changes in the

market environment or technicians that have developed technical

advancements on our existing engines.


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Strategy and Implementation

Strategy

1. Begin with a 10% markup in the initial pricing

- we determined this price range by evaluating the average price point within the

industry with the amount of sales and found that a 5% increase in price over our

competitors will sustain us during the start up without losing interest of potential clients

because of the cost factors. The average engine in this demographic is between 6,000 and

8, 000 dollars and remembering that economic factors are a major concern for the

majority of our target market 10% is just enough to enable us to stand by our claims and

produce a quality product.

2. Within the first year reach 15% of the target market

- We feel that we can achieve this objective by the percentages that our competitors

are currently achieving

3. Provide a 10 year service plan

4. - Including this type of service in our client's initial investment will help in building a

loyal consumer base, by showing them we will be there even after purchasing the engine

5. Establishing quality recognition throughout our company, developing a strong strategy to

become a leader in the industry

6. Maintaining a solid connection with a current and future clients


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Marketing New Engine Line breakdown

Research and Development stage

Retrieving data on the transit companies within the market, their buying behaviors, and other

manufacturers that may pose a threat and regulations that can affect the design of our new

engine line. The team members that will be responsible: Marketing manager, research and

development manager.

There will be three completion stages during this time:

Initial product development - August 02, 2014

Midpoint research and development - March 02, 2015

End of development - January 28, 2016

Prototype development

Actually building and in house testing followed by one of our existing customers using it in

their buses for at least 6 month The CEO, CFO, R&D manager and the project manager will

be in charge of this area and the completion date will be February 2, 2017.

First run in the product line

This is where we can evaluate the timeframe for every step of product and fix any hiccups

that may occur before multiple orders are placed with shipment dates confirmed

Pre-sales


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Are generated by the promotional activities we set in place starting with the prototype

Product launch

Introducing the product to the public

Evaluating Control

A continuous Analysis during development of the new engine line, pre-sales, the actual

launch and a year after the launch will enable us to adjust activities in order to stay under

budget. This type of monitoring will also help in providing capital to the unexpected situation

that may occur and was not in the initial budget projections. Once the engines have been

launched conducting quarterly audits and evaluations will keep our company within the

marketing plan and ensure that we can complete the activities to reach our 1 year, 5 years and

10 year plans.

During our prototype phase, we plan to implement corrective solutions that may arise

when the engine is actually being used; this action will lower the chances of shortfalls when

the engine line is actually on the market. We do expect to have some shortfalls after the

launch because of variation of usage, engine models and environmental changes, and that is

why we intend to have on call department that will be in charge of resolving this issues.

Making customer service representative, technicians, expert mechanics and resources

available 24 hours a day for the first two years of production will decrease the down time that

a customer may occur and reinforce the brand loyalty we are developing.

We have already established that we will be preforming continuous monitoring during

every stage of a new product line and doing quarterly audits and evaluations for the first year

after the product line is launched. The audits will focus on goal accomplishments, budget

usage, customer evaluations, sales performance, production numbers and revenue; to ensure


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that we are provided with correct numbers we will have an in-house audit team as well as an

outside audit team. Investing in two different audit evaluations can provide us with a biased

view of how our new engine line is preforming against our projected marketing plan.

Evaluation of Performance

After evaluating our cost against the projected budge, we find that we were able to stay

under the allotted capital set for this product launch. At this time, we have not had to make

any major corrective actions that will change the projected revenue for this launch. Our

distribution budget did exceed our projected budget by $20,000 bring the grand total for

distribution to $60,000. Our projected distribution activities and the physical distribution

process did not match according to the budget, but the results from the actual distribution

activities enable our company to increase revenue by 4% of the projected revenue.

Based on our evaluation concerning the price difference in our distribution activities we

found that the actual distribution process benefited the company better than the initial plan

design that was created. Promotional activities stand within budget with a surplus of $5,000.

The performance standard we set was meet but during the process we realized that we could

afford to upgrade our promotional activities that would enable us to offer more to the target

audience. Based on our evaluation we have already taken action in upgrading our

promotional activities.


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Budget vs. Actual:

Forecast budget Budget Amount over Budget

Pre-Launch $250,000 $300,000

Research Development $126,000 $200,000

Prototype $185,000 $150,000

First run production $175,000 $190,000

Promotionslegal& outside professional budget:

$45,000

$55,000

$40,000

$40,000

Distribution $40,000 $60,000 $20,000

Product launch

Web development and advertising budget

$ 40,000 $38,000

Demonstration budget $60,000 $50,000

AUDITS AND EVALUATIONS

$35,000 $30,000

Milestones

Continuing the success of our global business we see GenX achieving all our current

objectives for the first year. Below we have broken down marketing strategies for the next2,

5, 10 and 15 years. During years 5-10, we will work on advancements in engine models to

stay a step ahead of our competitors. During this time, we will be working on building a

strong customer base for our transmission in out to dominate the needs of our target

audience.


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First 6 months –

Increase brand awareness - using social media, monthly site visit by our

representatives and marketing tactics involving promotions, discounts, reward

programs and special pricing when buying in volume that will increase sales by 30%

in the domestic market and obtain 20% of the international markets.

Expand the web-based activities by 15% - designing a web site that is very user

friendly, convenient online customer service, section for customer’s feedback,

questions and issue they may have and have immediate response time in resolving

any negative issues.

Have any existing bugs or design issues resolved - Sending out satisfaction surveys to

our customers focusing on the performance of the engine and their opinions about

what they like and what they dislike and product weakness that they feel need

improving.

At the end of the first year –

Have an increase domestic sales of 15% and 10% in the international market - flooding the target market with pamphlets, emails, direct mail, promotional events, live demonstrations and web resources that will attract new customers and build stronger.

Decreasing product delays by increasing or vendor data base by 40% allowing the

company to have a surplus of raw material.

Location expansion - Increasing our manufacturing plants by 3 in the domestic market

and opening two strategically located plants in our international markets.

Increase our replacement parts accessibility by 45% - partnering with engine part

retailer's across the market:

o Retail Partner


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New Flyer, Muncie, Mohawk

o Online retailers:

E-bay, Amazon, Highway&Heavyparts.com, Nationalbusparts.com

6% of the increased sales are from consumers that left our competitors - by providing

the products, services and resources that we promised have convinced our

competitor's clients to continue business with us after their trail period was over.

Second years

Increase domestic sales by 25% and increase international market by 15%

Achieving 30% increase in Web activity over the first year.

Decreasing shipping delay down to unexpected circumstances that would include

weather, vendor shipment errors, transportation delays or traffic delays

Increase domestic location by 4 bring the total manufacturing plants to 7 and

increasing international plants to a total of 4 by the end of the 2nd year

Increasing retail outlets partnerships by another 10%

Competitor's client conversion increase by 8%

Five Years

Expand into the industrial and highway markets

Dominate the 18% of the domestic market

Create an appeal and accessory line

Open a transmission manufacturing Department

We will have found a strong, loyal consumer base and think we should expand our

inventory into other major components associated with the engine starting with the

transmission.


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Ten years

Develop plans to become self-reliant

Fifteen years

Become a major manufacturing and distributor of all aspect associated with our initial

product the engine.

The company will achieve the goal of becoming a self-sustaining company with very few

vendors and a massive percentage of the transportation sales.

The team will be focusing on the benefits and uniqueness of our engines over our

competitors can be achieved because our company has already established a solid business

platform that is reinforced by skilled and certified employees. Focusing on environmental

and economic changes has provided us with the knowledge and resources to set our engines

ahead of our competitors in the new market environment.

GenX will use multiple marketing research techniques throughout the first year will

enable us to strengthen our weakness while expanding our market demographics and building

brand loyalty. We do plan to continue using a personal approach with our customers, vendors

and partnership as our company grows and making it part of the company's vision,

strengthening our brand loyalty and promoting the benefits of using our engines.

Increasing domestic and international markets by strengthening brand loyalty, producing

quality products and treating everyone that we do business with as an asset, giving us

advantages over our competitors. Staying current with changes in regulations, environmental

laws, buying patterns and economic stability will allow us to keep moving forward in

developing quality engines and increasing the percentage of the market we will be able to


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obtain. Developing a strong web base will enable us to fulfill our mission in providing

quality services and being accessible to our consumers no matter what the situation.


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Reference Page

www.cummins.com

http://www.demanddetroit.com/

http://www.ford.com/commercial-trucks/eseries-cargo-van/

http://finance.yahoo.com/news/mass-transit-security-market-forecast-

234900963.html;_ylt=A0LEV725gotTbxEA2DoPxQt.;_ylu=X3oDMTByN

W1iMWN2BHNlYwNzcgRwb3MDNwRjb2xvA2JmMQR2dGlkAw--

http://www.globalmasstransit.net/

http://www.ntdprogram.gov/ntdprogram/

http://transitresourcecenter.com/technology.html#transitvehicle


http://transitresourcecenter.com/technology.html#transitvehicle

http://www.ntdprogram.gov/ntdprogram/

http://www.globalmasstransit.net/

http://finance.yahoo.com/news/mass-transit-security-market-forecast-234900963.html;_ylt=A0LEV725gotTbxEA2DoPxQt.;_ylu=X3oDMTByNW1iMWN2BHNlYwNzcgRwb3MDNwRjb2xvA2JmMQR2dGlkAw--



http://www.ford.com/commercial-trucks/eseries-cargo-van/

http://www.demanddetroit.com/

http://www.cummins.com/

Gen X Marketing Plan 3

Documents

Transcript of Gen X Marketing Plan 3