MarketingPlan for DUCA
DUCAis a new and innovative self-drive car that gets the name form thedescription of its functionality, the Duo-Drive-Car. The car isproduced by an American owned private company DyTech Auto Ltd, whichwas started five years ago after the conception of the product idea.The company was started in 2009 after the directors won the 2009International Innovation and Technology Competition for campusstudents. With the sponsorship from technology companies, thedirectors established the company and the DUCAprojectisfinanced by three leading motor and technology companies in theworld.Themain purpose of the company is to manufacture the world’s first carwith a self-drive mode. This marketing plan presents the marketingobjectives, the marketing mix and the description of the marketingstrategy for the company on the innovative car.
Themarket for the new car is dynamic and is expected to be determined bythe technological advancement of the innovative applied. The DUCAcarwas designed with this consideration and that is the reason why theproduct has taken over five years to design, develop, test and sellon the pilot program. The marketing plan is in the final phase of theproduct life cycle, which is the sale of the product at commerciallevel. The following are the descriptions of the marketing mix forDUCA.
Thefollowing are the general characteristics for the product (DUCA,2014):
Product Model: DUCA Model D1.
Crew: 1 Driver
Capacity: 4 passengers
Payload: 1210 kg
Length: 9.02 m
Height: 1.98 m
Empty weight: 1440 kg
Useful load: 1210 kg
Fuel capacity: 2300 cc
Maximum speed: 185 km/h
Certifications: FAA certification and FMVSS certification.
TheSWOT Analysis of the Product
TheSWOT Analysis for the company will reveal thestrengths that DUCA will utilize to overcome its weakness in theprocess of exploiting the opportunities.
Strengths: DUCAhas the uniqueness of having the self-drive mode compared to othercars in the market. The company also has the strength in thesuperiority of its IT systems that supports the development of theproduct. Moreover, the company has the strength of being backed bythree of the world’s strongest companies. These unique aspectsstrengthen the firm and the product in addition to being theessential factors for the growth of the business.
Weaknesses:Alongwith the strengths, DUCA has the weaknesses of being a new productfrom a new company without experience in the technology or automotiveindustry. The company therefore has the weaknesses of low productioncapabilities and manufacturing abilities. This is because the companyexpenses are currently being financed by capital because of no salesor revenue.
Opportunities:Themain opportunity is to distribute DUCA globally after introducing thenew car in the U.S market. The company has a whole world as themarket since it has a unique and a new product. The company hasopportunity increase sales and adopts unique distribution strategiesthrough the implementation globally as many high-income earners loveclassy lifestyle cars.
Threats:TheDUCA model faces a threat of low reception of the car fromconservatives who would not risk being driven by a car withoutautomatically. These customers would rather stick to drive themselvesbecause of their safety concerns.
Thecurrent price that has been set for the DUCA is $149,000. The pricewas derived at after the total costs per unit were calculated to104,300. With the profit margin policy for the company adopted at 30%($44,700) of the selling price, the selling price was arrived$149,000. Despite the already set price, the company will focus ondeveloping pricing strategy that is more affordable for both thelocal and international customers. Price will be developed to bereasonable to each specific market niche to promote customer loyaltyand increase sales for more profits in different geographic areas(Kotlerand Keller 43).Afteropening the establishment of production centers in America, thecompany will work to gain new customers and amerce new markets byallowing for establishments of moderate prices. These markets willrequire lower prices despite the costs of designing the car for theirroads.
However,for markets like the United States, where high prices are notsignificant, the company can increase its pricing strategy to add themargin to quality enhancement. DUCA will consider the fact that it isnot a monopoly and many other companies will be trying to introducesimilar cars in the future both in the United States and globally.Therefore, DUCA will be manufactured with innovative technologies tocontrol production costs and work to maintain the introductory priceof $149,000 and avoid any increase.
Becauseof introducing a product that people do not have previous experiencewith, extensive marketing campaigns will be done from the time ofproduct launch and sale. The company has developed new marketingstrategies to avoid relying on old market ones. This is a new productin the motor vehicle industries. Therefore, the company will have tochange tactics from the conventional ones and adopt new ways ofattracting and retaining customers. Besides this plan, thecompany hasbeen successful in its promotion of the pilot model so far. Untilwhen future potential competitors will start using DUCA’smarketing plan, the company will continueto use the pilot strategies. This will not happen soon and thecompany’s promotional campaigns will follow familiar trends in thenear future.
Thebest medium of marketing and advertising media will be the Internet.This is because it will be possible to show videos of the DUCAduringthe test drives and the promotional drives. According to Kotlerand Keller (47),such a strategywill capture the attention of potential customers and theadvertisement will be fruitful. The internet is a great tool becausemost of the potential customers are regular users of the internet andcan be easily be accessed.
Thecorporate magazines and newspapers will be another promotional mediumfor DUCA.These will targetspecific audience of since users of these media are the mostpotential. The corporate staff and management are among our toptarget customers since they can afford to buy the duo-drive carthrough corporate financing. Local newspapers will be a veryappropriate way to advertise the duo-drive car in the emergingeconomies (Lamband McDaniel 28). This is because theirreaders rely on them to update on a regular basis.
Inaddition, DUCA marketing will distribute promotional coupons anddiscounts to individuals and corporations who place orders for thepilot model. This will be done to improve the position in both themotor market. According to Lamb and McDaniel (39), the word-of-mouthand personal network is still one of the best methods of spreadinginformation in America. Therefore, the discounts to customers forreferring others will assist in motivating new buyers to pass themessage. Such discounts will help increase the number of customers byattracting them with reduced cost while maintaining the originalprice of $279, 000 in addition to the high-quality drive and flight.
Theother major promotion strategy will be training the new andprospective buyers on the operation, features and maintenance of theduo-drive. The buyers will be able to access free tutorials andattend free training sessions on how to operate the car in two modes.These trainings and tutorials can be accessed on the internet and allover the world and in the DUCA customer care centers.
Finally,the social networking sites and the social media present verypowerful platform of marketing and advertising the duo-drive car.DUCA will set social media strategies of advertising the car all overthe world in order to create global awareness. Social media will be atool to link potential buyers to the company’s online training andordering system. In addition, the social media will be powerful increating market awareness for the car.
Bysetting the price at a reasonable level for local and internationalcustomers, DUCA will also implement its place strategy. Thedistribution of DUCA duo-drive car model overseas will help thecompany develop strong and diversified customer base.
DirectDistribution:The direct distribution by the company will establish customercenters to build trust with customers through close ties. DUCA willuse direct marketing in each of these regions since the strategy hasbeen a successful and convenient with the pilot marketing program. Asmore customers prefer to auto-drive than manual drive, the companywill open new customer centers worldwide. Through these centers, newcustomers will learn everything about the new functionalities thatcomes with the auto-drive car.
IndirectDistribution:To increase the market coverage, the company will establish anindirect distribution channels to the international market. After theUnited States consumers have already purchased classy cars, thecompany will introduce the duo-drive DUCA globally. This will be donethrough demos, drives and test drives in public and corporate eventsand competitions globally. The global events will leverage the DUCAcar to stand out as a unique and new machine among the existing motorvehicles.
Internationally,the duo-drive DUCA car will be distributed across Europe, Asia andAfrica. However, a keen focus will be placed on China who can be athreat in developing such a machine in the future. DUCA will alsomaintain a strong partnership with local and internationaldistributors and global vendors in promoting, marketing, ordering anddistributing the car.
TheDUCA is a new innovative car model designed and manufactured byDyTech Auto Ltd. The company is a new entrant in the motor industry,but with a mission of introducing a brand of cars that has auto-drivemode in the market. To achieve this mission, the company hassuccessfully completed the testing stage of the product and the saleson pilot basis. The DUCA model is now in the commercial marketingstage. The DUCA model has the main features of a standard car, butwith an additional functionality of an auto-drive mode where thedriver can select for the car to drive itself. This is the featurethat makes the company and the DUCA model unique from others in themarket. To market the car, the company will adopt new andconventional marketing in addition to the appropriate distributionglobally. This will see the company venture the market and dominatethe niche with the innovative car.
Lamb,CW and McDaniel Hair. Marketing.South-Western: Cengage Learning, 2008, Pring
Kotler,Philipand Keller, Kelvin.MarketingManagement.San Francisco: Pearson Education Limited, 2012, Print