HAS 505 ASU J and K Auto Repair Marketing Plan Analytical Review

This example marketing plan is provided by the Small Business Administration. Get help starting and running your small business at SBA.gov. J&K Auto Repair Marketing Plan 1. Marketing plan summary J&K Auto Repair (J&K) will build a customer base made up of local community members and drivers on the nearby highway. It will establish a reputation of a trustworthy business with an experienced staff and competitive prices. J&K will gain an advantage over its competitors by being one of the only local shops to offer both auto repair services and auto parts for sale. 2. Market research The Bureau of Economic Analysis and Bureau of Labor Statistics show that many members of the local community work for the nearby university. These jobs pay well, and many university employees earn well above the area’s cost of living. There is a strong market for non-student residents. Half of the university students have a car on campus. The university is roughly a two-hour drive from the nearest major city, which means many students drive long distances for internships and to visit family. 3. Target market J&K estimates that 80% of its customers will come from the local community, including the university, while the remaining 20% will come from drivers on the nearby highway. 3.1 Local community The local community members represent the largest share of J&K’s customer base, and are the best opportunity for repeat customers. 3.2 University students and staff J&K is located near a university. Creating awareness about the business on campus will turn students and university staff into customers. J&K AUTO REPAIR 1 3.3 Highway drivers Drivers on the nearby highway represent hundreds of potential new customers each day. They are a smaller, but important, portion of J&K’s customer base. 4. Competitive analysis In addition to J&K, there are four auto repair shops within a 15-mile radius. But only J&K and one other shop offer both auto repair services and auto parts. In its marketing tactics, J&K will emphasize that it’s a shop where customers can have their cars repaired and buy parts. The majority of J&K’s inventory includes: • • • • • • • Tires Batteries Brake parts Chemicals (oil, antifreeze, more) Wiper blades Filters, belts, and hoses Accessories (floor mats, seat covers, more) 5. Market strategy J&K will build out its social media presence. It’s a free and effective way to create awareness about the business and directly engage its customer base. It will purchase advertising space in the print and online editions of both the local newspaper and the university newspaper. J&K will also purchase ad space on a local TV news station’s website. To attract customers from the nearby highway, J&K will purchase a billboard ad that will include directions from the highway to the shop. The business also will build relationships with local tow truck companies with the goal of getting those companies to refer their customers, many of whom are highway drivers in need of a tow, to J&K. 6. Budget J&K has budgeted $1,000 for marketing. These funds have already been accounted for in the business plan. J&K has broken down the cost by each marketing tactic. Billboard: $500 • • • Local news TV station digital ads: $200 Local newspaper digital/print ads: $200 University newspaper digital/print ads: $100 J&K AUTO REPAIR 2 Total billboard costs 7. Return on investment J&K will revisit its marketing plan in four months to look at which tactics worked and which didn’t. At that time, it will decide whether to cut the unsuccessful tactics and direct those funds elsewhere, or give them more time to work. J&K AUTO REPAIR 3 This example marketing plan is provided by the Small Business Administration. Get help starting and running your small business at SBA.gov. J&K Auto Repair Marketing Plan 1. Marketing plan summary J&K Auto Repair (J&K) will build a customer base made up of local community members and drivers on the nearby highway. It will establish a reputation of a trustworthy business with an experienced staff and competitive prices. J&K will gain an advantage over its competitors by being one of the only local shops to offer both auto repair services and auto parts for sale. 2. Market research The Bureau of Economic Analysis and Bureau of Labor Statistics show that many members of the local community work for the nearby university. These jobs pay well, and many university employees earn well above the area’s cost of living. There is a strong market for non-student residents. Half of the university students have a car on campus. The university is roughly a two-hour drive from the nearest major city, which means many students drive long distances for internships and to visit family. 3. Target market J&K estimates that 80% of its customers will come from the local community, including the university, while the remaining 20% will come from drivers on the nearby highway. 3.1 Local community The local community members represent the largest share of J&K’s customer base, and are the best opportunity for repeat customers. 3.2 University students and staff J&K is located near a university. Creating awareness about the business on campus will turn students and university staff into customers. J&K AUTO REPAIR 1 3.3 Highway drivers Drivers on the nearby highway represent hundreds of potential new customers each day. They are a smaller, but important, portion of J&K’s customer base. 4. Competitive analysis In addition to J&K, there are four auto repair shops within a 15-mile radius. But only J&K and one other shop offer both auto repair services and auto parts. In its marketing tactics, J&K will emphasize that it’s a shop where customers can have their cars repaired and buy parts. The majority of J&K’s inventory includes: • • • • • • • Tires Batteries Brake parts Chemicals (oil, antifreeze, more) Wiper blades Filters, belts, and hoses Accessories (floor mats, seat covers, more) 5. Market strategy J&K will build out its social media presence. It’s a free and effective way to create awareness about the business and directly engage its customer base. It will purchase advertising space in the print and online editions of both the local newspaper and the university newspaper. J&K will also purchase ad space on a local TV news station’s website. To attract customers from the nearby highway, J&K will purchase a billboard ad that will include directions from the highway to the shop. The business also will build relationships with local tow truck companies with the goal of getting those companies to refer their customers, many of whom are highway drivers in need of a tow, to J&K. 6. Budget J&K has budgeted $1,000 for marketing. These funds have already been accounted for in the business plan. J&K has broken down the cost by each marketing tactic. Billboard: $500 • • • Local news TV station digital ads: $200 Local newspaper digital/print ads: $200 University newspaper digital/print ads: $100 Total billboard costs J&K AUTO REPAIR 2 7. Return on investment J&K will revisit its marketing plan in four months to look at which tactics worked and which didn’t. At that time, it will decide whether to cut the unsuccessful tactics and direct those funds elsewhere, or give them more time to work. J&K AUTO REPAIR 3
Purchase answer to see full attachment