Electrical Repairs Marketing Plan 1, Market Analysis, страница 3

Today the enterprise has a sales department consisting of 3 people. In future it is planned to increase the number of employees of this department to 6 due to attracting those company employees who currently work in other departments and deal with sales.

1.8. Product Promotion at the Market

Table 4 shows the methods to be used by “ElRem” JSC for promoting its products at the market.

Table 4

Promotion Methods	Beginning of the Project	5th Year of the Project
Personal contacts	80%	5%
Circulation of brochures	5%	15%
Exhibitions	15%	45%
Advertising	0%	30%
Mass media, etc.	0%	5%
Total	100%	100%

2. Marketing Strategy

2.1. The Company Strengths and Weaknesses

“ElRem” JSC strengths are as follows:

·  strong experience in electrical motor repairs

·  availability of the company's own ideas put to prototypes and specific products regarding manufacturing and using valve electrical drives

·  availability of production areas for manufacturing valve electrical drives

·  current absence of real competitors

·  good enterprise image with the old customers (80% of customers are old, 20% - new)

·  availability of materials and components for manufacturing valve electrical drives

·  established close contacts with material and component suppliers

·  useful geographical position of the company concerning industrially developed regions where potential customers are located

·  rather skilful employees

·  market oriented enterprise management

One essential drawback of the company is insufficient analysis of distribution markets for valve electrical drives, absence of complete information about potential clients, about potential market capacity. First of all, it is due to the enterprise weak marketing department. With the lack of necessary equipment (computers, access to international information networks, etc.), being placed at the second level of the company management organisational structure hierarchy, the marketing department is unable to receive up-to-date information on the market situation and, besides, is not authorised to put its proposals directly to that managerial level which is competent in decision making, e.g. regarding changes in the product range. Also, the employees of this department lack theoretical market knowledge, which is an essential drawback too.

In order to get rid of the above mentioned drawbacks, “ElRem” JSC is going to reinforce the marketing department with professionals, supply them with necessary equipment and, which is the most important, put more authority onto them.

2.2. Marketing Strategy

Thus, the enterprise marketing strategy will be based on the following principles, shown in Table 5.

Table 5

Positions	Solutions
Target market	First target markets: automobile, tractor, machine tool manufacturing plants. Long term target markets: textile, garment industries.
Market positions	High quality replacing products with much higher price
Production	Production of valve electrical drives with a wide range of technical specifications without re-adjusting the assembling line
Price	Pricing policy - moderately high
Distribution	Direct sales and (in future) representatives
Marketing department	Adding extra skilful employees, placing the department onto the managerial hierarchical level next to the director
Services	Long term warranty with free repair or replacement
Advertising	Development of a new advertising campaign, increasing the advertising budget
Sales promotion	Participation in exhibitions, brochure circulation, publishing of catalogues, arranging a permanent stand at the enterprise itself and with the agents
R & D	Tracing new introductions by the competitors in the CIS countries and abroad. Increasing the research department budget
Market research	Increasing the costs for marketing in the CIS countries and especially in Russia

Sales Strategy

·  direct contacts

·  setting up a sales department

·  development of the sales policy (commission, pay off terms, etc.)

·  studying sales methods

Advertising Strategy

·  Personal contacts

·  Brochure circulation

·  Exhibitions

·  Advertising

·  Mass media, etc.