Mevis is active in many sectors: Automotive, producing elements for the dashboard, doors, seats, bonnet, engine, lights and wheels

1. Marketing plan
MEVIS S.P.A
COVA Gabrielle 1530047
MATTEODA Michelangelo 1729227
MELCARNE Giulia 1532522
TIRONI Verena 1526805
TRAVAGLINI Silvia 1548452

2. ¡ INTRODUCTION
¡ ANALYTICAL PART
§ Macro environment
§ Micro environment
§ Demand analysis
§ Competitors’ analysis
§ Internal analysis
§ SWOT analysis
¡ STRATEGICAL PART
§ Objectives
§ Strategic choices
§ Market penetration
§ Market expansion
¡ BUDGETING
§ Sales and budgeting forecasts
INDEX

3. 1961: Born in Veneto after a “purchase error”, which managed to fulfill the unsatisfied local
demand for springs
1883: Mevis introduced the principle of the Company Wide Quality Control
1986: Just in Time method adopted by the company to compete with the European market
1996: Mevis created its first online platform as a promotion instrument
1997: The first spring factory in Europe to receive ISO 9001
2006: New plant in Slovakia and Mevis tripled its production activity
2013: First production unit and technical center in China, specialized only in the production of
hood parts
MEVIS HISTORY AND MISSION
“Total customer satisfaction is our aim and we build around a wire to achieve it”
1. QUALITY PRODUCTS: they are technically excellent and qualitatively high
2. BEST COMPONENTS to meet consumers’ needs
3. WORK WITH CUSTOMERS to create a valuable efficient final output
Mevis is active in the mechanical sector, producing metal springs

4. MEVIS’ PRODUCTION PER SECTOR
0,7
0,15
0,1
0,05
AUTOMOTIVE
ELECTROMECHANICAL
HOUSEHOLD,
ELECTRICAL
APPLIANCES
OTHER
0%
10%
20%
30%
40%
50%
60%
70%
80%
Mevis is active in many sectors:
- Automotive, producing elements for the dashboard, doors, seats, bonnet, engine, lights
and wheels;
- Electromechanical, especially focused on electric motors, control panels and electrical
plugs;
- Household, where the focus is on drums, door glasses, detergent compartments and
controls;
- Other sectors such as sport, motorcycle exc.
We have chosen to focus on the automotive sector since it represents the 70% of the
overall production of the company. Our choice is also due to the fact that Mevis’ three
most profitable customers (Faurecia, GM and Eberspaecher) belong to this industry.
Quoteofpdtonoverall
production(%)
Source: see Mevis’ report

5. WEIGHTS OF PRODUCT CATEGORIES ON
TOTAL PRODUCTION
The graph shows the range of products Mevis offers. In particular, it produces:
- stamped and formed parts,that represent the 21% of the total number of products;
- wire components, that represent the 19%;
- welded parts that represent the 18%;
- tube components, that represent the 15%;
- flat and wire springs, that represent the 12%;
- assembled parts, that represent the 12%;
- plastic overmoulded parts that represent the 3%;
We have decided to focus our attention on Mufflers’ Supports, that are included in the
stamped and formed parts.
21%
Sources: See Mevis report

6. THE ORIGINS OF REVENUES FOR
MEVIS
From a monetary point of view, mufflers’ support are quiet important as they
represent the 22,3% on the company’s overall revenues*.
The remaining 77,3% of the revenues, is very fragmented among the different ranges
of products (compression springs, copper coils, tubular parts, switchgear, linkages..).
Since in the 2012 revenues accounted for € 53,8 mln, it can be computed that
mufflers’ supports allowed the company to earn:
€ 11,99 mln ≅ € 12 mln.
Products are the main source of revenues, since
all the accessory services contractually provided
by the company (such as consulting and
assistance) are directly offered for free in order to
reinforce the relationship with its clients.
However, Mevis manages to balance this kind of cost
with its revenues, in order to avoid losses.
Given its know-how, another important revenue source is related to the
customized products Mevis is frequently asked to provide. The company is
able, indeed, to tailor a new product to its clients’ specific needs.
*Source: direct information (e-mail) from the A.D. of Mevis, sources in the appedix
22,3%
77,7%
muffler's
supports
others

7. 1. High quality product: “we are a built structure focused on quality, which guarantee
the excellent to every question” (ISO/TS 16949;99 and ISO 9001-2000)
2. Respect for people: Safety and relaxed atmosphere in the workplace, belief in ethic
of relations, and involvement of all the Mevis’ staff to our objectives (Carta dei valori e codice
etico di Mevis)
3. Constant development of innovative solutions thanks to the accumulated
experience of its employees and to the constant effort in purchasing the best
technology
4. Personal involvement and high motivation
5. Attention to customers' needs: Innovative technical support for product development
to find suitable solutions for the customer’s needs
6. Respect for environment: ethical commitment through the person and the
area surrounding the productive place
VALUES AND COMPETENCES

8. 2010 2011 2012 Total change %
SALES 51.365€ 56.561€ 53.839€ +4.8%
EBITDA 3.810€ 2.320€ 2.855€ -25%
ROI 12% 7.2% 7.2% -40%
ROS 10% 5.8% 6.7% -33%
ROE 10,2% 5.8% 6.3% -38.23%
LAST THREE YEARS DATA
As we can see from the table, Mevis has been affected by of the European crisis, that heavily
affected the automotive sector; this started in 2008 and its effects were revealed on the market
on the following years. However, if we consider the absolute values, these data still remain very
high, so Mevis can be perceived as a high profitable and efficient firm.
The main decrease has been registered from 2010 to 2011, since all the values besides sales
register a huge reduction.
However from 2011 to 2012 we notice that the NET INCOME, ROS and ROE (related to the
overall company) have increased, while ROI remained unvaried on a good level of profitability;
this means that investments on technology have created more value for the company.
Sales show a different trend, increasing in 2011 and decreasing in 2012 due
to a higher raw materials’ prices. In general the total change for sales is positive.
Source: See Mevis Balancesheet in the appendix, Table 2, page 6

9. BENCHMARK WITH COMPETITORS’
DATA
COMPETITORS EBITDA ROS
Lucchini SPA 52.942€ 5.64%
Defendi SRL 52.931€ 5.56%
Costacurta SPA 50.752€ 12.46%
OCM SPA 46.818€ 4.21%
General Fitting SPA 42.984€ 4.63%
Mevis’ revenues in 2012 : €53.839
Mevis’ ROS in 2012 : 6.7%
Data concerning the overall company clearly show that Mevis is a strong firm
also in relative terms, as its Net Income is higher that the other ones as its
Return on Sales (only Costacurta performed better). However these are some
potential competitors we found on Aida, not as important as those we will
mention in the competitors analysis, but they are still useful to understand Mevis’
financial position.
Source: Aida database, 2012 data
We have seen that Mevis faced a shock in 2011, but after that, in 2012 it
succeeded in increasing its values.
The importance of Mevis’ numbers is highlighted by the direct comparison with
some of its competitors:

10. MACRO ENVIRONMENT:
THE MUFFLER’S SUPPORT SECTOR
INDUSTRY RIVALRY:
The industry is highly concentrated, indeed there is a huge number of firms, mainly small,
competing in it (even if Mevis and its 3 main competitors, namely GLM, Stamet and CGR,
hold around 70% of total market share). However, products are very differentiated and
switching costs for customers are quite high since the products are very customized
according to each customer’s need. Therefore, the industry rivalry is not significantly high.
POTENTIAL ENTRANTS:
The industry is not protected by any government regulation (nonetheless the possess of
quality certificates is advisable but not compulsory in order to operate), so it may be easy for
a company already in the metal mechanical industry, serving the automotive market, to enter
the specific industry of muffler’s support, even considering that they have already access to
distribution channels. However, the industry requires significant economies of scale (in order
to maintain low prices) and high investments in R&D to remain at the edge. Incumbents can
also obtain protection through patents. These can represent barriers to entry. Therefore we
can state that in this industry the threat of new entrants represents a medium level issue.
SUBSTITUTE PRODUCTS:
Muffler’s supports do not have a substitute product because each car needs this
component and there are not other kind of products that are able to satisfy the same
need. Therefore the threat of substitutes in the industry is null.

11. THE MUFFLER’S SUPPORT SECTOR
(II)
POWER OF BUYERS:
Mevis’ customers are car producers and first tier suppliers. Their power depends on
different elements such as their dimension: some of them have very high power,
such as Tenneco and GeneralMotors, whereas smaller clients have a lower
bargaining power.Moreover, customers are very price sensitive and some of them
have also the necessary resources to vertically integrate. A point in favor for Mevis
is the fact that it offers very customized products and so, for its customers, it is not
easy to switch to another supplier. The power of buyers therefore can be
considered as medium.
POWER OF SUPPLIERS:
Mevis’ suppliers are those who provide the company with the raw materials
necessary to the production of muffler’s supports. They have a low bargaining
power since they offer a commodity product (steel, copper) and Mevis can
choose among a lot of them.
Suppliers, as a consequence, have a low bargaining power.

12. MICRO ENVIRONMENT:
DEMAND ANALYSIS
Market share
(€) Secondary demand
Source: AD Federico Visentin
(€) Primary demand:
€12mln/ 0,12= 100 mln€
We focus our analysis on the European market since we are
already established in this market with a good market share
12%
12 mln
100
mln

13. ¡ Muffler's supports do not have effective substitutes.
Therefore non-users of this product do not exist.
¡ We can thus say that the potential demand corresponds to the primary
demand (100 mln €).
¡ Market development index=100mln/100mln=1
¡ Potential gap=0 (the difference between the potential demand and the
primary demand)
¡ Competitive gap= 100MLN – 12MLN= 88 MLN (difference between the primary
demand and the secondary demand)
Considered that our potential gap is zero, our strategy will be aimed at
decreasing the competitive gap (by stealing competitors’ customers), that
instead is quite consistent.
POTENTIAL AND COMPETITIVE GAP

14. COMPETITORS’ ANALYISRESOURCES/PRODUCT
(materialsused)
_ +
_
+
SIMILAR NEEDS
(to sustain mufflers)
POTENTIAL*:
-MOLLIFICIO SANT’AMBROGIO
-CAPPELLER
-CIMA
-LUCCHINI
-DEFENDI
-COSTACURTA
-GENERAL FITTINGS
DIRECT:
- GLM
- STAMET
- CGR
NO COMPETITOR INDIRECT
*see” Potential Competitors” , page 1 of the appendix

15. DIRECT COMPETITORS
MEVIS
(12%)
STAMET
(12%)Others (29%)
CGR (12%)
GLM
(35%)
The graph shows the market share of
Mevis’ main competitors in the muffler’s
support industry. We can observe that the
4 main players in the sector (GLM, Mevis,
Stamet and CGR) account for the 71% of
the total market, whereas the remaining
29% is shared by a lot of small other
companies, both italians and foreigners.
Source: Mevis’ Report
It is clear that GLM is the market leader (35% of market share), despite its
smaller size compared to CGR and Mevis, and this can be attributed to the fact
that this company is very specialized in the muffler’s support industry.
Mevis, CGR and Stamet are the followers with eachone respectively holding
the 12% of the total market share.
The table in the next slide shows a comparison between Mevis and its main
direct competitors..

16. COMPANY TOTAL
ANNUAL
TURNOVER
(€/2011)
TURNOVER
GROWTH
(2010-2011)
MARKET SHARE OF
THE MUFFLER’S
SUPPORT MKT
MEVIS 56,5 MLN + 10% 12%
GLM 32 MLN + 24,56% 35%
STAMET 22 MLN - 7,6% 12%
CGR 47 MLN + 9,3% 12%
The main dimensions considered are: the dimension of the each company (in term of annual
turnover), the growth rate of each of them and the correspondent market share in the
muffler’s support industry
From the data, we can observe that Mevis is the biggest company in terms of revenues and
it shows a good growth rate. It is interesting to notice that, except for Stamet, all the
companies present positive growth rates, despite the period of crisis. This is a clear signal
that it is possible to pursuit growth within the industry.
Table Source: Lince report database
The table in the following slide instead compares the same companies in terms
of main clients and points of strenghts.
DIRECT COMPETITORS (II)

17. MEVIS GLM STAMET CGR
MAIN
CLIENTS
• GM
• Fiat
• Magneti Marelli
• Faurecia
• Fiamm
• Valeo
• Eberspaecher
• Ferrari
• Maserati
• Bmw
• Mercedes
• Toyota
• Peugeot
• Iveco
• Volkswage
n group
• GM
• Fiat
• Magneti Marelli
• Tenneco
• Leitner
• Mainly
French
car
producers
STRENGH
TS
• Huge variety of
products
• Customized product
• High customer
orientation
• High investments in
R&D
• Highly
specialized
in muffler's
supports
• Flexibility
• Work just in time
• Highly specialized in
muffler’s components
• High customer
satisfaction (because
of the building of
synergies with
clients)
• High investments in
R&D
• High
technologi
cal
product
• Good
reputation
DIRECT COMPETITORS (III)

18. INTERNAL ANALYSIS:
RECENT EVENTS ON MUFFLER'S
SUPPORTS
Muffler’s support in Mevis has faced a recent development. The company has
started to produce supports that are no longer rigid, but flexible and adaptable to
fit perfectly to the muffler’s shape.
This allows Mevis’ clients to have a product
which could become perfectly customized.
The design, construction and development
of a component that is going to enter into a
more complex project, requires numerous skills.
In a process which aims at rational and technical
solutions, Mevis staff tries to answer and foresee the customer’s needs not only
through its experience, but also planning the development of all new main
technologies.
However, the muffler’s support has to follow the quality trend of its main product
(the muffler), so the quality improvement is limited since there is an issue
regarding the lowering of the muffler’s quality itself.

19. ACTUAL MARKETING MIX
PRODUCT
The product we are focused on is the muffler’s support.
Mevis’ offer comprehends not only the product but also some peripheral services such
as after-sales support and the work along with customers in all stages of the product
development (that leads to a huge customer orientation).
Moreover, post sales assistance allows to decrease alternative management costs for
the final shoppers.
The augmented product is composed of the in-house development of
production machines to better meet the customers' needs (and this permits us
to offer high customized products)
MAIN FEATURES OF MEVIS’ OFFER:
• Quality
• Quick response capacity

20. PROMOTION
“Not going to the customer but waiting for him to
come to you”
Mevis’ aim is to provide high satisfaction to its
clients that will allow to obtain a good word of
mouth.
• Promotion activities are directed towards two targets: final users/buyers and first
tier suppliers (that supply car manufacturers with mufflers) such as Tenneco,
Eberspaecher, Faurecia and Magneti Marelli.
Mevis tries to make them aware and interested in the product through trade fairs
and exhibitions in the automotive area, also using conferences and public relations
to highlight the advantages of the items.
• On the online channel, the usage of automotive blogs to make the product known
is a very effective tool.
• The company has no media-advertising expenses since in the B2B market
this tool is not used; it is possible to say that, in this sector, the campaigns
are mostly focused on public relations

21. PRICE
*Source: see “Sources” in the appendix, page 1
++ source: see “Table 1: Medigurren situation” in page 5 of the appendix
The company does not significantly leverage on price. The medium price for a
muffler’s support is about €6 for the low segment cars such as Fiat and
Volkswagen, and €10 for high segment cars like Range Rover and BMW series 5
(it depends on the materials used)*.
However, prices are negotiated with each different client on the basis of the
quantity purchased, the specificity of the product and the bargaining power it holds
toward the Company.
• Prices are set through the mark-up method, which implies an increase of a fixed
or variable amount to the production costs of the product.
• Maintaining low prices is not enough to succeed in this industry; in fact
companies that tried to set very low prices to the detriment of quality and
service, now are failing (like the Spanish Mediguren**)
• There is no comparison with competitors for what concerns the setting of the
price. The company actually doesn’t use a competition-based method to set
prices.

22. PLACEMENT
Mevis Car
Manufacturer
Mevis First tier
supplier
Car
Manufacturer
DIRECT
INDIRECT
(SHORT)
Mevis’ production and delivery occur “just in time”, following the orders of its clients.
The main feature of Mevis’ peripheral services is the quick response capacity in case
of emergency of the users, added to the quality of the product.
This is essential in the automotive world where everything is extremely rapid and
reaction times are very fast.
The current distribution strategy of the company implies the use of a mixed
distribution channel, since it uses both a direct and an indirect one.
MIXED DISTRIBUTION CHANNEL

23. INCOME STATEMENT OF THE
PRODUCT
€ 2012 %
Sales 12.000.000 100%
VALUEOF PRODUCTION 12.000.000 100%
Cost of production 9.888.000 82,40%
EBITDA 2.112.000 17,60%
Amortization and depreciation 888.000 7,4%
EBIT 1.224.000 10,20%
Financial cost (+); revenues (-) -48.000 -0,4%
Extraordinary cost (+); revenues (-) -96.000 -0,8%
Income taxes 252.000 2,1%
NET INCOME 1.116.000 9,30%
Source: Mevis CEO, data referred to last 12 months rolling

24. Fiscal: the increase of taxes such as the IVA causes an increase of prices for direct
customers. This determines:
higher pression for price reduction
decrease in demand for cars
Socio-cultural:
Nowadays people are more involved with ecology and "green-issues”. This leads to:
decrease in use/demand for “traditional” cars
They are also more concerned about security. Therefore:
car producers put more focus on the usage of high-quality products and
components to satisfy this kind of need.
Another important element is the increasing income of people in emerging markets:
this leads to increase the demand for cars, specifically the primary demand of
these countries
MACRO ENVIRONMENT (II)

25. SWOT ANALYSIS

26. MARKETING OBJECTIVES
Reducing the competitive gap by increasing
the market share by 1% yearly, in order to
move Mevis’ market share from the actual
12% up to 15% within three years
Maintaining a positive annual growth rate in
terms of volume, despite the crisis, through
line extension.
Export mufflers’ support production in China
in order to achieve economies of scope and
build a stable position in that market
1
2
3

27. OUR PROPOSALS FOR MEVIS
Given the previous analysis and the market conjectures, our
aim is to increase the overall Mevis’ performances, in terms
of Market Share, in order to satisfy the objective number
one. We manage to do that by reinforcing muffler’s
support (a product we already offer) in the actual European
market because we want to reduce the competitive gap and
steal market share from our main competitors.
* See appendix: Graph 1, page 2
**See appendix: Table 1, page 5
MARKET
PENETRATION
PRODUCT
DEVELOPMENT
MARKET
EXTENSION DIVERSIFICATION
PRESENT NEW
PRODUCTS
NEWPRESENT
MARKETS
This objective would be easier to be reached in Italy because, considering the product
we are focused on, Mevis has the second biggest market share, after GLM.
On the other hand, despite the crisis and the decreasing demand for cars (and
therefore of mufflers’ supports) in the overall European market*, we believe it is
possible also to act on this market in order to increase the company’s market share.
Indeed, despite the crisis of 2009, Mevis is a financially stable company, since its loss in
revenues was only the half of the competitors’ one. Therefore it can be possible to take
advantage from situations like the one faced by Mediguren** (a Spanish company that
failed) to increase Mevis’ own market share.
This would be a market penetration strategy

28. The demand for cars in the Chinese market is increasing*.
We expect to see in the upcoming future the same trend.
In 2013 Mevis already established a plant in China,
providing hoods part, and this could represent an
opportunity to introduce the muffler’s support production in
this market, taking advantage from the deriving economies
of scope.
In order to satisfy the third objective, Mevis should bring a
product it already offers in a new market.
MARKET
PENETRATION
PRODUCT
DEVELOPMENT
MARKET
EXTENSION DIVERSIFICATION
OUR PROPOSALS FOR MEVIS (II)
NEWPRESENT
PRODUCTS
PRESENTNEW
MARKETS
This would be a Market Extension Strategy.
* See appendix: Graph 1, page 2

29. ESSENTIAL FACTORS INFLUENCING
OUR STRATEGY
ECONOMIC: the recession in Europe and the reduction in consumers' expenditures,
high inflation rates and the increasing price of fuel determine a decrease in the demand
for cars, which represents, in this case, the most important client industry. This is one of
the reasons why Mevis’ clients ask the firm to produce abroad, in order to stimulate the
foreign economy and gain market share. On the other hand, the decreasing price of raw
materials (copper and steel)* is one of the factors that pushes the European business
because it leads to a decrease in production costs.
POLITICAL: urban driving restrictions, congestions, charges for use of roads and
parking, stricter rules on CO2 emission negatively impact on the demand in the
automotive industry. On the other side, governments often launch incentives to sustain
this important industry.
See appendix: Graphs 2 and 4, pages 2,3

30. MARKETING STRATEGIES
Achieving MARKET PENETRATION…
… by retaining the actual customers
PRODUCT PROMOTION

31. The services listed above are included in the “package” Mevis offers to its
customers. They are very important because they represent a way in which the
company can reinforce the relationship with its clients, making it long lasting.
It is especially on these services that Mevis has to be concentrated, in order to
implement the market penetration strategy, because a satisfied customer will
probably place more commissioned orders and this will be a tool to increase the
company’s market share.
In the B2B market, service quality plays an even more important role than
the product itself. Fast and immediate problem solving services highlight
the inseparability of the support service from the core one.
Mevis provides:
- intangible services: specialized engineers trained by prestigious
university’s teachers; after sales assistance;
- tangible services: product customization.
PRODUCT: FOCUS ON PRODUCT
POSITIONING
A) SERVICE QUALITY:

32. B) INCREASE THE PRODUCT’S PERFORMANCE
PRODUCT: FOCUS ON PRODUCT
POSITIONING (II)
One tool to increase the product performance is through a line extension.
This would be done by using the wire tube’s technology that allows to have a
lighter muffler’s support (this is one of the product features requested by Mevis’
clients in order to have better performances of the car);
Moreover, another tool can be the usage of resistant and less expensive materials
in order to align the muffler’s support’s life span to the one of the muffler itself.
Since recent analysis on cars show that muffler’s supports have a longer life span
than cars*, it is reasonable to save money and increase the efficiency by reducing
the durability of our product.
In this way Mevis can invest the money saved in order to provide services to its
customers.
• Information provided by Mevis’ CEO, see “Sources” appendix page 1

33. MARKETING STRATEGIES (II)
Achieving MARKET PENETRATION…
… by retaining the actual customers and by stealing competitors’
ones
PRODUCT PROMOTION

34. A) GOOGLE ADWORDS
We want Mevis to invest money to develop promotional campaigns in order to increase the
awareness of its existence and stimulate interest in its offer and USP. This would lead at
increasing the market share by stealing clients from competitors.
Promise: To reach the objective of growing market share (penetration) it is necessary to transfer
the idea that Mevis’ product is the one that can meet the customers' needs in the best way, to
generate desire for the product.
Target: actual and new potential buyers (car producers and assemblers) served both by Mevis
and its competitors.
A) GOOGLE ADWORDS
How: Mevis will resort to Google ADWords, a contract with the most famous search-provider.
In particular, we want to increase the visibility of the company through the appearance of its ads
connected to as many searches as possible, but still related to the mechanical sector. In this way,
anyone who would look for some information about the mechanical sector and puts some key-
words on the Google search bar, will have the possibility to see Mevis’ online ads and might open
them.
In order to implement this kind of promotion, the company has to win a bidding game, so this
strategy requires an investment based on the bid amount and on a fixed sign-up fee (5$)*.
Moreover, Google has implemented a Cost per Click approach*: in this way, Mevis has to pay
whenever the add is clicked.
How much: our budget for this strategy will account for €25.000 per year.
* Harvard Business School, “Microsoft Search”, page 6, Jan W.Rivkin, Eric Van Den Steen, January 15, 2009

35. What:
These Improvements are aimed at updating the
website with all the data of the last two-year-
period and make them more visible too, in order
to be downloaded in a faster and easier way.
B) WEBSITE IMPROVEMENTS
How:
Mevis will not look for new competences to make this strategy concrete because it
can rely on the already present ones, since it is only a matter of adding data without
setting up again the whole website. Moreover, since the company is already present
in China, the translation of the website contents into the Chinese language will not
be difficult and, therefore, will not represent a cost.
How Much:
It will be a zero-cost strategy for the reasons in the “how” point.

36. C) TRADE FAIRS
The participation at fairs of the sector and events connected to it, represent the main promotion
activity in the B2B sector. We want Mevis to leverage this tool in order to reach the largest
possible number of customers and let them know its existence and USP.
Where: Mevis should participate to 2 international trade fairs, in Italy and Germany since these
represent the major events related to the sector. In particular, every year we plan the firm to get
part of the EMO Milano (in October) and of the Valve World Expo in Dusseldorf that will take
place each year in December. However, it will also participate to smaller local fairs in order to
reinforce its local position.
How: A well trained sales force is essential to transfer to customers the proper information
regarding Mevis’ USP; their role is also essential in order to attract new clients. Therefore, the
people that are going to represent Mevis in the fairs will be trained in order to be prepared
properly to face eventual potential customers’ questions. Interested potential customers will also
be provided with Mevis’ informative brochures with all the information on how to contact the firm
and there will also be a small exposition of its muffler’s supports so that they can easily
understand the quality of the product offered.
How much: We suggest that Mevis should invest in trade fairs an yearly amount of €20.000.
In particular, it could allocate €8000 for each international fair and use the remaining €4000 for
local fairs. Moreover, the company should invest an additional and variable amount on
sales force training courses that will decrease year by year due to learning economies.
This program will be treated in more details in the budget.

37. MARKET EXTENSION
Achieving MARKET EXTENSION...
.
...by expanding in China
PROMOTION

38. A) PARTICIPATION AT CHINESE
FAIRS
The third objective can be reached by leveraging promotion, aiming at creating attention and
knowledge about Mevis’ USP (to successively develop a preference for its product) and creating
awareness. In this new market the role of promotion is even more important, since in China the firm is
not an established company in the muffler's support market as it is in Europe.
Target: actual demand’s buyers served by international competitors.
A) PARTICIPATION AT CHINESE FAIRS
How: organizing and taking parts to conferences and events (that are part of public relations) to
make the company and its products known in the Chinese context. As well as in the European market,
other activities will include the participation at fairs and the usage of personal selling. Our idea is that
Mevis should take part to the “Flowexpo China” that takes place usually in May and to the “CIMA Motor”
in October. The sales force must be very committed and skillful, in a way to deliver to customers the idea
of superior benefits (in term of performance and services) offered by the
product and capture demand from more established competitors.
How Much: we aim at allocating the following amount of money:
- Flowexpo China: €2000 per year
- CIMA Motor: €2000 per year
- Public Relations: €30.000 in the first year and decreasing in the following ones (see budget).

39. B) INTRODUCING THE PRODUCTION
OF MUFFLERS’ SUPPORTS IN CHINA
We want Mevis to obtain economies of scope. Indeed Mevis is already present in the region
with a plant that produces hood parts and the introduction of another product category can be
an effective way to decrease overall costs. We aim at exploiting Mevis’ deep capabilities and
skills in the sector in order to build a strong position also in a huge market like the Chinese one.
It is also important to notice that cars’ sales in China are increasing and, as a consequence, also
the demand for muffler’s supports*. This represents a great opportunity.
How:
Even Mevis’ clients require the application of this kind of strategy because the company, by
hiring new personnel in this geographic area to introduce this kind of product, will cause an
increase of local people’s income and, therefore, with an high probability, the final demand for
cars. In this way, Mevis’ clients (car producers) will also be able to catch new customers.
How Much:
For this strategy, Mevis will have to hire:
- 30 new fabric workers with a remuneration of €500/month each;
-1 quality management committee with a remuneration of €1500/month;
- 1 sales manager with a remuneration of € 1500/month
Regarding the engineers and the administrators they do not represent a cost since
Mevis is going to maintain the same personnel already present in its plant.
*see Appendix: Graph 1, page 2

40. What:
C) INTRODUCTION OF A CHINESE
VERSION OF THE WEBSITE
How:
Mevis won’t look for new competences because it has already a plant in China. As
a consequence, there are already people who takes care of the translations and
communications with the Chinese market.
How Much:
This will be a zero costs strategy because there will be no need to acquire
new competences.
We want Mevis to expand in China,
therefore we believe it is fundamental to
introduce a Chinese version of the actual
Website.

41. INTERACTIONS BETWEEN THE TWO
STRATEGIES
The two strategies proposed (Market Extension and Market Penetration) are
interdependent.
Google AdWords and participation at fairs can be correlated: this is because when
someone searches for Mevis on the web, for example, he could be able to find the
fairs the company is participating in, and may be interested in getting a ticket to find
out more about the firm’s products.
Moreover, Google AdWords can be also a useful tool to promote Mevis’ presence in
the Chinese market and not only in the European one.
In addition, the line extension we have proposed for the European market, will be
also useful in the Chinese one, indeed the company can export there the know-how
it has gained.
Then, of course, the expansion in China will allow Mevis to increase its global market
share.

42. OPPORTUNITIES
Mevis has entered in a market (the Chinese one) that is today
considered one of the most profitable emergent ones. This experience
can be useful to plan an eventual future entry in other emergent
markets.
WEAKNESSES:
Mevis’ promotion activities are not so poor anymore: indeed the company
will allocate more monetary resources to fairs and to other promotional
instruments such as conferences and public relations.
Other methods used to increase the awareness of the customers are: the
online channel, the usage of automotive blogs and Google ADWords.
STRATEGIES’ IMPLICATIONS

43. SWOT ANALYSIS AFTER OUR
STRATEGY

44. BUDGET: SALES PLAN
2012 2013 (budget) 2014 (budget) 2015 (budget)
Market demand (€) 100.000.000 97.000.000 94.090.000 91.267.300
Market share 12% 13% 14% 15%
Sales ( pieces) 2.000.000 2.101.667 2.195.433 2.281.683
Price (€/piece) 6 6 6 6
Revenues (€) 12.000.000 12.610.000 13.172.600 13.690.095
ASSUMPTIONS:
Market Demand: decreasing at 3% (average of the European and Chinese market
trends)*
Market Share: gradual growth for the following three years: from 12% to 15% in
2015;
Price: constant price (€6)
Sales: +14,08% in three years at both value and volume level
*Sources: http://www.motori24.ilsole24ore.com/Mercato/2013/10/cina-auto-immatricolazioni-settembre%202013.php
And ACEA Website

45. BUDGET: TOTAL MARKETING
EXPENDITURES
ASSUMPTIONS:
Total marketing expenses*:
Marketing expenses will grow from actual €219.240 to €361.240 in the first year.
Then in the following 2 years they will gradually decrease (see budget for details)
The increase of these expenses is necessary in order to develop our strategy and to increase
Mevis’ market share.
Increasing promotion expenses:
Mevis should face higher expenses in communication and promotion in order to achieve the
marketing objectives.
In particular, public relations will increase from actual €25.000 to €70.000 in the first year to
promote the presence in the European and in the Chinese market.
It is expected a reduction in public relations’ expenditures for the following 2 years as the company
becomes more established.
Total investments in tradeshows, to support the promotion campaign, will raise from actual
€10.000 to €24.000.
Moreover promotion expenses will include:
- €25000/year for the implementation of Google AdWords
- €20000 to be invested in “other” promotion activities (such as the printing of brochures
and catalogues for clients).
*See “Note on marketing expenses” in the appendix, page 4

46. BUDGET: TOTAL MARKETING
EXPENDITURES
Data in € 2012 2013 2014 2015
MARKETING STRUCTURE
Sales manager 37600 37600 37600 37600
Sales manager (in China) 0 18000 18000 18000
Account manager 16450 16450 16450 16450
Marketing CEO 42300 42300 42300 42300
Marketing manager 25850 25850 25850 25850
Product manager 15040 15040 15040 15040
CUSTOMER CARE SERVICE
Sales force training 17000 47000 37000 27000
Technical support 20000 20000 20000 20000
PROMOTION
Public relations in Europe 25000 40000 40000 30000
Public relations in China 30000 20000 15000
Tradeshows: 10000
EMO Milano 8000 8000 8000
Frankfurt 8000 8000 8000
Flowexpo China 2000 2000 2000
CIMA Motor 2000 2000 2000
Local fairs 4000 4000 4000
Google AdWords 0 25000 25000 25000
Others 10000 20000 20000 20000
TOTAL MKT BUDGET 219240 361240 341240 316240

47. PERFORMANCES
COMMENTS ON PERFORMANCE:
The ROS is decreasing during the first year, because of increased marketing expenditures. However
it will increase during the second year to match the 2012 value (15,8%). In the third year it will
increase further, in a way that it will reach the 16,7% (a much higher value than the current one).
Regarding the ROMI, for the first three years it will be lower than the current value (863,3%). This is
due to the higher expenses in marketing that the company will face in order to implement its
strategies. However the ROMI increases as these expenses decrease during the years, therefore it is
reasonable to think that in the long run it will reach a higher level than the current one
(considering that Mevis will decrease its promotion expenses as it becomes more
established).
2012 2013 (budget) 2014 (budget) 2015 (budget)
REVENUES (€) 12.000.000 12.610.000 13.172.600 13.690.095
PRODUCTION COSTS (€) 9.888.000 10.340.200 10.748.842 11.088.977
INDUSTRIAL MARGIN (€) 2.112.000 2.269.800 2.423.758 2.601.118
INDUSTRIAL MARGIN % 17,6% 18,0% 18,4% 19,0%
MKTG AND SALES EXPENDITURES (€) 219240 361240 341240 316240
NMC (€) 1892760 1908560 2082518 2284878
ROS 15,8% 15,1% 15,8% 16,7%
ROMI 863,3% 528,3% 610,3% 722,5%