Expert Answer :The projected focus on this marketing plan is

Solved by verified expert :I.Executive SummaryThe projected focus on this marketing plan is to gain more market share in thetransfer of fuels and chemicals industry. We follow the concept of similar repairfacilities, however emphasizing on customer service and superior workmanship. Weare following the American Society of Mechanical Engineers (ASME), and Departmentof Transportation (DOT) standards to comply with every single aspect of repairs onboiler vessels and vehicles. Furthermore we provide research on our market bystudying on a demographic location to open a repair facility, near fuel loading terminalswhere significant transit of fuel carrying vessels takes place. Aside from service andrepairs, distribution of tanker parts will be sold to potential customers as needed. Thetime cycle of the products that will be sold on Empire Tanker are still in the growth stage,meaning there is great potential for growth on sales and profits. Also the logistics andsupply chain mechanism has been considered at length. Our service methods,distribution methods and information technology will follow the various stages of thesupply chain. Finally it is discussed whether the competitive advantage that EmpireTanker has is sustainable or not. We set our focus on the budget, marketing plan andthe balance between expenses and the profits.II.Company DescriptionEmpire Tanker is a fully equipped repair and tanker parts distribution facility thatstrives in offering expert service to fuel and chemical transportation lines. Our serviceswill offer a higher level of quality and excellence that our customers have yet to experience. We will strive to enhance our own craft and results with top of the lineparts, customer service, and techniques. Empire Tanker fully understands theimportance of using high quality parts in our repairs, as well as employing registeredinspectors and certified welders who will also be well trained in trailer repair andmaintenance. When our customers see our service brand, they will relate it to leadingservice whether it is for repair, maintenance, testing or inspections.III.Strategic Focus and Plana. Mission/Vision StatementsIn order to fulfill the customer’s repair needs, we will contact welding supplystores, as well as tanker parts suppliers. In order to aid our economy, Empire Tankerwill only use American made supplies and parts to make repairs. Furthermore, we willregister with the National Board of Boiler and Pressure Vessel Inspectors, California AirResources Board, and US Department of Transportation to give our customers the easeof mind that our work is certified. Empire Tanker will gain the reputation as:“Your one stop shop for parts and quality repair needs”b. GoalsIn terms of goals, for the next six months, Empire Tanker will promote itsbusiness by making sales visits to potential customers. Our outside salesrepresentatives will inform clients of the types of repair we perform, our shopcertifications, and the parts we carry. Also a website will be developed in order to showour facility and repair capabilities. Also we will introduce an incentive program where after the customer’s fleet tenth visit, they will receive an annual CARB test at no charge.From this promotion, we are aiming for a five percent increase in overall sales. Inaddition this will draw more customers, as well as reward the existing customer base.c. Core Competency and Sustainable Competitive AdvantageIn terms of core competencies, Empire Tanker will develop a reputation forproviding high quality workmanship due to its qualifications. In order to sustain thiscompetitive advantage, our repair technicians will be tested every three years asrequired by the National Board of Boilers and Pressure Vessel Inspectors. In additionour employees will partake in training seminars offered by our vendors. EmpireTanker’s technicians will be fully trained in all aspects of tank trailer repairs.IV.Situational Analysisa. SWOT analysis b. Industry AnalysisIn the fuel, chemical, and propane industries, tests are required in order for fleetsto be complaint with the Air Resources Board, and the Department of Transportation.For this reason, many of these haulers are constantly looking for repair facilities to takeLOCATIONOF FACTORTYPE OF FACTORFavorableUnfavorableStrengthsWeaknessesCertified Facility, Website,Experienced managers neededOpportunitiesThreatsExternalFuel, Chemical, and PropaneCompetition may offer same orcare of their required inspections. With the Department of Transportation, trailer unitsInternalare required to be inspected every 90 days. These 90 day BIT inspections coversuspension and frame of the vessels. Keeping into consideration that most trailersweigh over 23 thousand pounds, constant break down is imminent. Thus repairs andparts replacements are constantly needed. Also the tankers on fuel, chemical, andpropane units must be inspected yearly and every five years as required by the AirResource Board. These tests also translate into potential repairs. Aside from therepairs these units of transportation require, the markets that they serve must be takeninto consideration. We will start by addressing the Propane market.The propane industry primarily fuel the following six applications which are:residential, commercial, agricultural, industrial, transportation, and chemical & refinery.Stringent environment regulations and growing petrochemical industry are expected tobe the major growth drivers for the propane market. According to the report “PropaneMarket by Application” presented by Research and Markets, “propane ranks as the fourth important source of energy for the residential segment. As an energy source,propane competes with electricity, natural gas and fuel oil on the parameters such asprofitability, price and availability.”In the fuel sector, using the year 2013 as the bases, “Gasoline dominated theglobal transportation fuel market in 2013. Gasoline accounted for more than 40% of theglobal transportation fuel market in 2013. Furthermore, North America accounted formore than 30% of the global market share in 2013. It was the largest regional segmentin terms of volume in the same year” (Retrieved from Transparency Market Research).Also the freight rail network is powered by distilled fuels. As mentioned in the USDepartment of Transportation Federal Railroad Administration, “the U.S. freight railnetwork is widely considered one of the most dynamic freight systems in the world. The$60 billion industry consists of 140,000 rail miles operated by seven Class I railroads(railroads with operating revenues of $433.2 million or more)”.c. Competitor AnalysisEmpire Tanker is surrounded by only one competitor. The nearest one is PolarService Center which is National Company. These service centers are locatednationwide and can safely be considered a large company. Polar sells parts that arerelated to the fuel industry as well as suspension components. In addition, they providetesting and service to distilled fuel haulers. However, because Polar is a largecorporation, they have a hard time providing proper customer service. Their completiontime on most of their projects exceeds days, making customers lose money by havingtheir equipment sit idle for too long. Most fuel haulers carry about 9000 gallons,generating an estimated $23,000 dollars in revenue per daily load (averaging the price of fuel at $2.55 per gallon). For this reason, fuel haulers will look for the facility that willquickly repair their units in order to avoid long periods of down time.d. Customer AnalysisOur target customers will consist of fuel, chemical and propane haulers. In thesethree sectors mentioned in the report, Oil & Natural Gas Transportation & StorageInfrastructure: Status, Trends, & Economic Benefits, submitted by the AmericanPetroleum Institute, “Driven by growth in U.S. natural gas, natural gas liquids, and crudeoil, the past 2 years have witnessed rapid growth in direct capital investment toward oiland gas infrastructure assets. IHS estimates that capital spending in oil and gasmidstream and downstream infrastructure has increased by 60 percent, from $56.3billion in 2010 to $89.6 billion in 2013.” Other services include transportation of productssuch as ethanol, coal, and carbon dioxide. When taking into consideration thesenumbers, we can see there is potential to gain a significant market share.V.Market-Product Focusa. Marketing and Product ObjectivesEmpire Tanker’s marketing intent will focus towards gaining market share in therepair of fuel, propane, and chemical transfer units (trucks and trailers). In order toobtain this marketing objective our plan is to fully exploit our core competencies, andtake advantage of the limited competition.b. Target MarketsThe primary target markets for Empire Tanker will be fuel and propane haulers.In the fuel sector, companies such as KAG West LLC where according to their 2013publishing, “KAG revenue for 2002 was $269,228,000, which ranks first amongpetroleum carriers, and third among all North American bulk carriers” (http://www.thekag.com/node/444). In addition we will target propane haulers likeAmerigas, who in their 2014 fiscal year report, “net income attributable to AmeriGasPartners for the fiscal year ended September 30, 2014 of $289.9 million”(http://investors.amerigas.com/investor-relations/news-releases/news-releasedetails/2014/AmeriGas-Partners-Reports-Record-Earnings-for-Fiscal2014/default.aspx).c. Points of DifferenceThe characteristics of Empire Tanker that set us apart in relation to our tankertrailer repair competitors are the following:We are a small repair facility. The service we provide to our customers genuineand reliable.Empire Tanker’s technicians are well trained and fully certified.Extensive knowledge in fuel, propane, and chemical parts.Empire Tanker has decided to reach out these companies who want fast andreliable service at reasonable prices. Our goal is for the customer to avoid as muchdown time do to repairs. Competition in the tanker repair industry has a reputation ofleaving their customers fleet down for too long, resulting in significant money loss. AtEmpire Tanker we will strive to get our customers’ units back on the road, withoutsacrificing quality in our work.d. PositioningLocation is key in succeeding in this type of industry, that is why will establishourselves near loading racks, where significant traffic of fuel and propane units takesplace. Also we will strategically place billboard advertisement near freeway exits to ourlocation as well as potential customers’ locations. In addition we will set our parts warehouse in the front area, so that customers can see the vast array of tanker partsthat we stock.VI.Marketing Programa. Product StrategyEmpire Tanker’s competitive edge lies in its vision, where we understand betterthan the competition that a service visit does not just include repairing a client’s trailerequipment. It also includes the entire service experience from the first time a customertalks to one of our technicians until they drive away from our premises. The long-termprofitability of a repair facility of this type lies in the recurring customer that finds EmpireTanker’s services an excellent experience, despite the fact that they usually haveexperience a breakdown or just a stop for a routine test. Furthermore, the company willseek to examine all aspects of the service experience, in order to find ways to improveits customer satisfaction. In addition, all of our technicians will be rigorously trained totake into consideration customer satisfaction in order to create a self-sustainingcompany culture that focuses around this issue.b. Price StrategySince many of the repairs at Empire Tanker involve routine testing, we will adoptProject-based pricing. This type of pricing will involve a flat fee arrangement agreed tobefore a certain testing, repair or modification is perform on the vessel. We will take anestimate based on our hourly rate, and then price the project accordingly. Our objectivewill be to finish the work as quickly as possible without sacrificing our high qualitystandards. For this to function successfully, the type of work to be performed must beestablished up front. Also for jobs that do not require a quote, an hourly rate of 90dollars will be charged. To reach our breaking even point we must consider the following numbers_Rent=10,000; salaries= 32,000; utilities= 1200; shop supplies= 3,000; Inventory=4,000.Cannot establish a Price Strategy without some numbers: sale price of a service, minus,cost of labor and materials to equal a gross profit per service. Then these are dividedinto fixed costs of the business for a BEP