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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
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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
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Expand target market
Objectives
Developa 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
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Products and Services
GenX 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.
Suppliers
Our 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.
Service
GenX 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 Analysis
The 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
States and foreign companies. Tailoring our market strategies to be structured according to
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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 Segmentation
We 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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Competition
Our 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
Cummins/Pacca
r
55%
Detroit Diesel
26%
GenX Engines
19%
Domestic Transit Sales Segments
Cummins/Paccar Detroit Diesel GenX Engines
28. Engine Design
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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.
Pricing
Pricing 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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GENXENGINES - MAY 2014 29
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.
Advantages in the Industry for our Marketing Plan
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.
Sales
Net Profit
Expenses
$1,000,000
$51,000,000
$101,000,000
$151,000,000
2016
2017
2018
2019
$1,315,000.00
$1,325,000.00
$1,545,000.00
$1,560,000.00
500000
975000
1250000
1360000
815000
350000
295000
200000
GenXNew engine Financialforecast Overview
Sales Net Profit Expenses
31. Engine Design
GENXENGINES - MAY 2014 30
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 maintenance
o Replacement parts accessibility
o Training and warranty availability
o 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
Trail offers - February 28, 2018
Website development - December 01, 2015
Web advertising development - December 10, 2015
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GENXENGINES - MAY 2014 31
Distribution of catalogs, pamphlets, flyers etc.... - May 04, 2016
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 fluctuatesone 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
Prototypedevelopment
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 productline
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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GENXENGINES - MAY 2014 35
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
Promotions
legal& 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.
