Market Research:
a. Underdone my Bianca (formally aka: HENDRICKS) Le Roux : Founder of
Burgeon Marketing Agency.
(This is an entry-level standard of Market Research we do. (Reference of the standard of work we do, so that you do not get conned out of Marketing, PR, and Communication Services.)
EXECUTIVE SUMMARY
1. Research
a. Current position: This includes, where possible: ∙ Customer profile(s)/buying history ∙ Buying process ∙ Product/service description and benefits ∙ Market position/sales history/competitive situation ∙ Marketing/advertising history ∙ Distribution and sales methods ∙ Manufacturing/marketing margins ∙ P & L history/potential
b. Key Issues-losing market share
2. Corporate Strategy
Toysan has been able to maintain a 20% market share in South Africa for some years. Neil Kokemuller (2017) mentions that corporate strategy is the plan a company implements to achieve its vision and mission while achieving specific goals, in this case the drop in market share has affected the sales which has the Board of Directors committed to attain the 20% market share again. Toysan should be willing to invest money and time to conduct a marketing campaign in order to determine how Toysan can regain the lost 12% and also attain and maintain 20% of the market share in South Africa for the next five years.
3. External and Internal Analysis:
a. Overview of Market:
The market overview can be drafted by answering questions highlighted by Lee Ann Obringer, 2019. The campaign will need to determine the following points regarding the market:
The size of the target market: Focusing on the potential users of the 3 main range of vehicles namely exclusive executive range, mid-range saloons and low range hatchbacks. It should determine how many people are in managerial or executive positions for the exclusive executive range. How many people are in middle management or in positions that allow them to afford this range of cars example of such positions are chartered accountants, engineers, doctors etc. For the low range hatchbacks, the number of people in low positions like administrators, marketers or graduates that have been recently employed.
These figures can be used as a guide to determine whether the target market is growing or shrinking. it could help determine possible trends and be proactive about them.
The target market can be segmented with the following categories:
Age
Race
Employment rate
Geological location
b. Competitor Analysis
Naamsa (2019) predicts 558 000 vehicles to be sold locally compared to the 552 190 achieved in 2018. Last year, the organisation predicted 572 000 models sold.
c. SWOT ANALYSIS
4. Marketing Objectives:
The financial objective is to get the 20% market share back and maintain for 5 years while also conducting market research for the purpose of identifying weaknesses in order to fix and maintain steady growth in the next 5 years.
By creating brand awareness so as to get new clients, scale sales and gain more market share within South Africa.
To obtain information for research and development purposes of improving the product to surpass customer expectations and stay ahead of the competition.
5. Marketing Strategy
Market Segmentation
We have segmented the Market into 3 sections to which we will analyse and base our marketing efforts on though Direct Marketing. These segments, mentioned in the market overview are further divided into the following segments: Age, Race, Employment level and Geological location.
Table 1 shows acquisition of vehicles according to geographical location is predominantly within Johannesburg, Cape Town and Ekurhuleni and Durban, our marketing efforts through online advertising targeting these locations through, google, facebook and instagram advertising. and In terms of race, aTelevision adverts will incorporate many races to indicate inclusivity within the advertising campaign.
Graph 1 Source:Stanway (2003:5)
Source: from Statistica South Africa on Wheels 24
Figure 2 shows that based on Race, White ownership is predominant among vehicle owners, however Black Africans are a close second. While the acquisition of vehicles according to a geographical location is predominantly within Johannesburg, Cape Town and Ekurhuleni, and Durban, our marketing efforts through online advertising targeting these locations through, google, Facebook and Instagram advertising. and In terms of race, aTelevision adverts will incorporate many races to indicate inclusivity within the advertising campaign.
Figure 3 employment rate SA and trend of employment, meaning more cars will be needed.
With the prediction of the increase in the employment rate, this will mean crafting adverts to the Generation Z audience who will come into purchasing vehicles.
Figure 4: Distribution of Vehicle Ownership by Gender
Gender comparison indicates that women predominantly purchase vehicles. Our advertising efforts will also be crafted to cater to women to capture the market share.
The graph below indicates the top-selling brand of cars overall in 2018. Toysan can make use of this information to determine its main competitors during the analysis.
Source : Trading Economics(2019)
figure 5: Top 20 vehicle brands of highly sold units.
b. Competitive Advantage: loyal customers, reliability, 30 years indicates a strong loyal base and the longevity of the company and the penetration it has within the market, this indicates a good sense of the perception customers have towards the brand.
c. Direct Marketing tactics, implementation, scheduling, and budget:
The table below highlights the tactics that can be used, derived from Lahle Wolfe, 2019. It also highlights the implementation method and cost estimates:
Direct Marketing tactic implementation specifications cost EstimatesInternal MarketingConducting one on one interview with employees to determine any internal factor that may have contributed to the decrease in market share( Mohammed R(2013:23). Employees can be motivated to partake in this by providing them with incentives. Employees can also assist in getting involved in the marketing campaign and receive incentives.R0.00 to R1 000.00 for refreshments during discussion sessions. or R5 000.00 to R10 000.00 to hire a specialist to conduct the internal research.
Targeted online adsWe create a lead generation, giving something for “FREE” if they provide their email address. This can be obtained via Facebook Lead Ads. Through this advantage, we obtain new clients plus old ones. Platforms include Facebook, LinkedIn, website pop-ups, YouTube and Google Ads etc.R 1000.00 to R10 000.00 depending on which platform is to be used to reach 5 hundred thousand to 3 million people. Direct mailOnce we have obtained the emails, we can send promotions, deals and educate clients about our already existing products and social responsibility initiatives.R500.00 to R5 000.00 depending on graphics design, ad designs etc.Phone callsFollow up phone calls on how the customer found the service and product will create a more sound relationship, a personal touch. R 1 000.00 to R5 000.00 depending on the number of people that will be reached via phone calls. Television infomercialsTelevision Infomercials will be crafted around inclusivity of different races and age groups, one targeted to mothers (convenience of space, safety, and easy parking features), middle income audience (luxury on a budget), and Gen Z audience(youthful appeal and budget and fuel consumption friendly). This figure could vary between R15 000.00 to R30 000.00 and can be avoided if the response rate of the other tactics are successful.
Based on the tactics mentioned in the table above, the schedule for each implementation is mentioned in the table below:
The 4 P’s for this marketing strategy are as follows:
6. Control and Forecasting
Google Analytics and Facebook pixel will give us insight into what adverts are working and what is not, what is converting into clickable interests to our website. Our targeted marketing campaign will be “Get a free test drive lead advert. Through these means we will determine the potential interest, we will also conduct surveys to gather insight into customer behavior and preferences and gain new customers through these initiatives.
The target audience will be directed to a survey in which they will be able to select which marketing tactic attracted them to provide the response to the campaign. To evaluate whether the tactic is effective, the number of responses and the response rate will be compared, and the tactic with the highest response rate will be focused on in order to attract more responses and potential clients.
Once responses start coming in and the marketing tactic which led the person to the survey is determined, the cost per response can then be calculated. This can be done by taking the timespan for that marketing tactic in comparison to the amount of money invested in that tactic during that period.
This is the time where awareness of Toysan can be built, attitudes towards the brand are understood and additional weaknesses, strengths, opportunities, and threats can be identified. Valuable feedback will be used to make changes to Toysan’s operations, branding, quality, etc in order to regain the 20% market share.
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