Marketing Plan Sample 1 - Carlos D

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Assessment 2 
Marketing Plan 
 
 
 
 
Torrens University Australia 
MKT600 Marketing 
 
 
 
 
 
 
 
 
 
 
 
Executive summary 
 
This document will present reasons to understand why a marketing plan for ARB 
should be implemented. The objective of this Marketing plan is to penetrate the 
market and position the new line of products into the Australian market with sales 
of at least 15.000 units for the remaining financial year. The new line of products is 
sport roll bars, for the eight bestselling UTEs in Australia. ARB has several 
advantages and capabilities that could be used to enhance continuous 
company growth. The predominant position of ARB in the market, and the good 
brand value the company has, are the key advantages. The sports roll bars 
market is not attended by ARB, but for several small manufacturers that do not 
have similar brand value to ARB. By selecting the niche market segment to attend 
the eight most sold UTEs in Australia, using a market mix base in introductory low 
cost, quality, exclusiveness, and warranty, ARB will make an economic effort of 
around one million dollars to end with a net profit of more than seven million at 
June 2022. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index 
 
1. The Business ....................................................................................................................... 4 
2. Market Situation ................................................................................................................ 4 
3. Strengths and Weaknesses ............................................................................................ 5 
4. Threats and opportunities ............................................................................................... 5 
5. Objectives and issues ..................................................................................................... 5 
6. Segmentation, targeting and positioning .................................................................. 6 
7. Marketing Mix Strategies ................................................................................................ 8 
7.1 Product ................................................................................................................................ 8 
7.2 Price ..................................................................................................................................... 8 
7.3 Place .................................................................................................................................... 9 
7.4 Promotion ........................................................................................................................... 9 
8. Action Programmes ....................................................................................................... 10 
8.1 What ................................................................................................................................... 10 
8.2 When .................................................................................................................................. 11 
8.3 Who .................................................................................................................................... 12 
9. Budget and controls ...................................................................................................... 12 
10. Recommendations ........................................................................................................ 14 
11. Bibliography ..................................................................................................................... 14 
 
 
 
 
 
 
 
1. The Business 
 
ARB is an Australian company listed in the Australian Security Exchange (ASX) with 
a market capitalization of 3.88 billion (ASX, 2021), founded in 1975 by Anthony 
Ronal Brown. The headquarters and warehouse are in Melbourne, Australia. With 
a presence in the UK, USA, Thailand, Czech Republic, United Arab Emirates, and 
Australia thought 9 subsidiaries exporting to over 100 countries (Ibis World, 2021). 
ARB Has 70 stores spread in all states of Australia (ARB financial statements, 2021). 
It’s administrated by a board of Directors with one Managing director, four 
independent non-executive directors, three non-execute directors, and a 
Company secretary. The company employs 1081 persons in Australia (ARB, 2021). 
ARB designs and manufacture accessories and light metal engineering work for 
4WD vehicles (Ibis World, 2021), such as Bullbars, roof racks, Air locker differentials, 
Old Man Emu suspensions, car fridges, and lights (ARB Catalogue Australia, 2021). 
Also, distributes and sells non-own manufactured products such as camping 
accessories, merchandise, snorkels, winches, compressors, recovery kits, apparel, 
and more (ARB Catalogue, 2021). In total sells more than 100 products, 40% of 
products directly manufactured and 60% outsourced or produced by other 
brands (Calculated from ARB Australian catalogue, 2021). 
 
2. Market Situation 
 
ARB is the biggest company in the Australian market of parts and accessories (IBIS 
World, 2021), with a market capitalization of 4.26 billion in November 2021 (ASX, 
2021). ARB Has an estimated market share of 12.1% (Ibis World, 2021). This 
company has maintained an average growth sales revenue of 9.4% over the last 
10 years (ARB financial reports). Compared with the average industry turnover 
growth (-15.2) for 2020, ARB is above with a positive percentage of 6.7% (Ibis 
World,2021). The industry size of parts and vehicle accessories manufacturers in 
2021 are calculated worth $2,458 million (Ibis World, 2021). It is expected that the 
industry has a growth of 1.3% in the next five years. 
ARB main customers are owners or users of 4WD vehicles. These are final private 
customers (individuals who own 4WDs), other businesses (Distributors, private 
companies, mining industry), General Public (Non-for-profit Organizations), and 
Government (Military, aviation). 
Because of the high fragmentation of the market, other major companies in the 
industry such as Arrowcrest, Mett, and AMA Group, does not represent direct 
competition for ARB (IBIS World, 2021). Those companies specialize in other 
different components, while ARB focuses on the niche market of 4WD. Companies 
that manufacture similar products to ARB are small with minor market 
participation. 
 
3. Strengths and Weaknesses 
 
The main strengths of ARB are the strong and well-developed distribution network 
(ARB FS, 2021). Not only in Australia but overseas thanks to agreements with local 
distributors where geographical conditions are similar to Australia (Ibis World, 
2021). With sustained growth, generously catalogue range, installed capacity, 
and experience, ARB is likely to continue its market participation. The principal 
weaknesses are high production cost, 45% of total income, labour cost 21% total 
income, and fitments constraints (installation of ARB product) due to a lack of 
personnel (ARB FS, 2021). 
 
4. Threats and opportunities 
 
The impact of Covid 19 provoke supply chain disruptions, labour shortages, 
shipping delays, reduction in new cars availability, and economic recession. All 
those threats added to high market competition, and risk associated with 
exchange rates for trading in foreign currencies, are the threats ARB is affronting. 
On the other hand, the company have several opportunities derived from the 
continuous growth in sales of cars, but also because of the strong customer focus 
on SUV and 4WDs, and the constricted desire of Australians to break free from 
covid restrictions and go for 4WD experiences to the outback. As it will be 
explained ahead in the targeting market process, the UTE market has the best 
growth. Also, the two cars with better sales in Australia are two UTEs, Toyota Hilux, 
and Ford Ranger. Finally, ARB has an unbeatableopportunity to use its brand 
value, experience, and manufacturing capacity to release a new product with 
short effort. 
 
 
 
5. Objectives and issues 
 
The main objective of this marketing plan is to penetrate the market and position 
the new line of products into the Australian market with sales of at least 15.000 
units for the remaining financial year. The new line of products is sport roll bars, for 
the eight bestselling UTEs in Australia. 
The Harvard Business Review lists the five most common problems when releasing 
a new product. The ones that could affect ARB are customer acceptance, 
support of fast growth, quality failures, no demand for the product, and customer 
ignorance about the product (customer education). 
 
6. Segmentation, targeting and positioning 
 
Segmentation. 
According to Kotler, when segmenting the market five elements must be 
considered. Measurement, access, profitability, distinction, and achievability. 
Each segment could be measured in size, customer buying capacity, and 
segment profiles. The segment must be accessible and profitable. Finally, each 
segment needs to be easily differentiable from others and the company should 
be able to attend the market successfully. As explained before ARB is present in 
the market of accessories for 4x4 vehicles and 4WDing experiences. This market is 
made up of owners of this type of vehicle that are willing, able and has the 
authority to buy the type of products mentioned before. To segment this market, 
Geographic, demographic, physiographic, socioeconomic, and behavioural 
aspects could be used (Kotler, 2020). Because the objective of the marketing 
plan is to attend to customer needs of the niche market UTEs, the most efficient 
way to segment this niche market is by the type of car owner. This is private 
individuals, Businesses, and Government. Private individuals could be segmented 
by variables such as age, gender, family size, income, occupation, and 
education level. Businesses could be segmented by type of company such as 
distributors, mining companies, and other companies. The government could be 
by agency such as Military, Legislative, Federal, Statal, and so on. 
 
 
 
Targeting. 
After segmenting the market of 4WD and 4WDing accessories in different 
categories the targeting will be concentrated niche market. Three factors should 
be considered to select the target market. Segment size and growth, segment 
structure, and company objectives and resources (Kotler, 2020). Within the market 
of cars, SUVs has the bigger market share with 49.6 per cent for the year 2020. 
However, UTEs present bigger growth with 34.1% and a market share of 17.9% 
(carexpert.com, 2021). Despite the market of SUVs being large, it represents more 
risks and less profitability as is more saturated with brands, models, and 
competitors offering accessories for them. Also, the majority of SUVs are 
considered by law as passenger cars (MA) and not as off-road (MC). MA cars 
have allowed only a few modifications, while MC is allowed to have more (Road 
Vehicle Standards Act 2018). The structure market of UTEs is simple compared to 
others. This is because not all brands offer these types of vehicles, and only 11 
brands have sales of more than 1.000 units. In other words, is easy to attend the 
UTE market. Taking into account ARB objectives, the segmentation targeted will 
be based on in-vehicle brand and model. Within the segment of 4x4 vehicles, the 
body types known as UTE’s will be selected. The second segmentation will be by 
the brand number of sales. Brands and models of UTE with more than 5.000 units 
sold in the last year will be appointed. According to the well-known website 
Carsguide, figures of cars sold in Australia for the year 2020 show that the two most 
sold cars were UTE’s. Leading the list, the Toyota Hilux with 45.176 units sold, 
followed by Ford Ranger 40.973 units. Other brands with sales above 5.000 units 
were Mitsubishi Triton18.136 units, Isuzu D-max 16.062, Nissan Navarra 11.486, 
Mazda BT-50 9.588, Holden Colorado 7559, and Volkswagen Amarok 6349 units. 
Targeting this segment based on brand, models, and the number of sales, but 
also looking at ARB objectives and resources, this segment represents better 
opportunities in growth, size, structure, and profitability. 
 
Positioning 
Positioning is about giving the product a planned perception on customers minds 
(Kotler, 2020). Nowadays, ARB is not present in the market niche of roll bars as the 
company does not manufacture this type of product for UTEs. ARB manufactures 
canopies in full cab heigh option, and lids in secure tub-only option for UTEs but 
not roll bars. There is not a nationally recognized or popular manufacturer of roll 
bars. Therefore, ARB brand recognition as quality, design, innovation, and service 
will be still the objective for this new product. Also, using the company advantage 
of experience manufacturing similar products, the new product will keep similar 
levels of quality to ARB bull bars. This will be achieved by a differentiated design, 
and lower prices compared to competitors. Using ARB manufacturing 
capabilities, supply chains and distribution networks will allow lowering cost than 
the market average. 
 
7. Marketing Mix Strategies 
 
Marketing mix refers to how to use four or seven elements to achieve marketing 
objectives (Harvard Business Review, 1985). Four elements should be employed 
for products and seven elements for services. Product, price place and 
promotions are the key factors to manage when marketing a product. 
 
7.1 Product 
 
The product is a line of eight models of sports roll bars made of steel for UTEs. The 
roll bars will be fitted with a rear stoplight. The UTE brands attended will be Toyota- 
Hilux, Ford-Ranger, Mitsubishi-Triton, Isuzu D-max, Nissan Navarra, Mazda BT-50, 
Holden Colorado, and Volkswagen Amarok from the year 2015 onwards. 
Roll bars are not only for stylish purposes but most important for security. In an 
event of a rollover, the bull bar protects the passenger cabin to be smashed. Roll 
bars improve the structural rigidity of the UTEs backside. They are an important toll 
when customers need to secure high height stuff that Lids or canopies does not 
allow. Also, is an instrument to harness ATVs, Dirt bikes, or other off-road 
equipment. Finally, can be used as support for lighting accessories. ARB sport roll 
bars will be fitted with a stoplight that improves security thought warning other 
drivers in low lighting conditions. ARB will be outstanding from competitors 
because its unique design, build quality, warranty, and options of colour 
customization. 
This product is classified as a consumer product subtype shopping low frequency 
purchase (Kotler, 2020). 
Augmented product. Added to the well-known quality of ARB, 5 years warranty 
will be added to the product. Installation of bull bars for not added cost will be 
granted for a limited time. Nationwide availability. 
 
7.2 Price 
 
Price balance is most important when deciding the price. The balance between 
customer expectations, cost, and shareholders objectives are the key when 
deciding on the product price. The price established for each bull bar will be 
based on a mix of the cost base, competition base, and value-added pricing. 
The price pursued is growth driven price. The company calculate an average cost 
in the range of $150 to $200 AUD depending on the model. This cost is the 
Breakeven price that includes fixed cost, and variable cost. The competitor selling 
price of a roll bar in Australia starts from $300 up to $2.000. Three types of product 
prices will be offered to customers. Captivating, By-product pricing and bundle 
pricing. Because the objective is to penetrate the market by captivating 
customers, and based on ARB brand value, a starting low-price strategy will be 
followed. A starting price of $600 per roll bar will be decided depending on the 
UTEmodel, but not vary up to more than 20%. Because the demand for roll bars 
is greatly elastic, it is not recommended to set a high price. After the release of 
the product, ARB should use price adjustment: discount, promotional, 
geographical, and dynamic upon sales performance. 
 
7.3 Place 
 
Three main distribution strategies could be used, intensive, exclusive, and 
selective (Kotler, 2020). The distribution strategy ARB should follow is exclusive. This 
is because the intention with the release of the ARB roll bars product line is to 
make it different from competitors, exclusive and with a sense of pride. Therefore, 
only ARB stores will be able to sell and install the product. If an intense strategy is 
used, ARB roll bars will be found everywhere, and distinction will be lost. 
Depending upon sales performance, a selective strategy will be adopted later to 
attend the increasing demand using the already established distribution network. 
Therefore, the number of channels levels preferred will be a direct marketing 
channel. This is the manufacturer selling directly to its buyers (Kotler, 2020) 
 
 
 
 
7.4 Promotion 
 
The promotion mix strategy ARB will use is Pull, because no marketing channels 
will be used, the company will direct the marketing activities directly to customers. 
How is communicated effectively the value proposition to customers with the aim 
to build long-lasting relationships, is called promotion mix (Kotler, 2020). 
A spot commercial on the radio of 2 programs related to 4Wdiving will be 
created. Radio programs are a cheaper still massive option to create product 
awareness. Because the targeted market for the ARB product is specific and 
narrowed, TV advertising is not the most recommended tool as it is massive, costly, 
and general. The most economical tool that ARB has is personal selling. This is 
because in all ARB stores exist selling staff that is highly trained on customer service 
but also experienced 4Wdrivers. Jointly whit personal selling through ARB stores, 
sales promotion will attract customers attention and persuade them to buy roll 
bars. Discounted prices and bundle prices should be offered. Public relations 
should be used by participating and sponsoring events of 4Wding. Creating 
alliances with 4WDing clubs such as Four-Wheel Driving Australia, in each state 
and participating in those events with printed material, showrooms, 
merchandising, and so on, ARB could reach in a very effective and economical 
way its targeted customers. Direct marketing also could be used, this is by 
emailing those actual customers that own one of the models of UTE that ARB will 
be served. Finally, but most importantly, the use of digital marketing will be the 
strongest tool to use. A pop-up display will be used in the google search engine, 
ARB website, and each brand website of car serviced. In ARB web page pop-up 
display, inclusion in a digital catalogue, and new releases catalogue, the product 
line will be included. A campaign in the most used social platforms Facebook, 
YouTube, Instagram, Tik Tok, and Instagram (Statista, 2021), will be developed to 
create awareness of the new products and enhance sales. An ARB mobile app 
will be created to allow customers to make purchases using their smartphones. 
This app will be available for android and IOS. 
 
 
 
 
8. Action Programmes 
 
8.1 What 
 
a. Radio spot commercial to be used in the 2 most popular radio stations in 
each state. 
b. Develop a plan to make a display space in each ARB store, and a campaign 
where all sales staff, including those in the 70 ARB stores, B2B sellers, and 
Government sellers, will promote the new product line. 
c. Partnership with Four Wheel Drive Australia, The Four-Wheel Drive Association 
Queensland, and Four-Wheel Drive Victoria, to sponsorship one event in 
each state to promote ARB products. 
d. Email all customers that own one of the brands targeted using the ARB 
database. The email will be created to promote the new line of products. 
e. Addition of the new line of products in the web and physical ARB catalogue. 
f. Pop-up display for the internet. 
g. Social media platforms campaign. 
h. ARB APP for android and Apple store. 
 
8.2 When 
 
a. Spot should be recorded and published on the radio before 15 Dec 2021. 
Then 4 months will be on air. 
b. The planning will start immediately, before 27 Nov 2021 it will be released 
and put in place through all stores and sales force starting to be executed 
from 1 Dec 2021. 
c. Contacts with clubs will start on 25 Nov 2021. One event per state will occur 
in December 2021 and the other in March 2022. 
d. Emails will be sent on 27 Nov 2021, another before Christmas and New Year, 
and regularly at the end of each month. 
e. Online Catalogue will be updated before 4 Dec 2021. 
f. Pop up design will start immediately and will be online before 27 Nov 2021. 
g. Social media design will start immediately and be put in place from 27 Nov 
2021. 
h. Design and development phase will start immediately. The proof phase 
between 7 to 11 Dec and release fore Before 15 Dec 2021. Further, 
maintenance and post-development phases will be carried out. 
8.3 Who 
 
a. Marketing and communications department will hire a radio advertising 
agency to record the post. 
b. Sales manager will create a plan to be communicated to each ARB store. 
Store managers will put in place a plan that involves all sales staff. Sales staff 
will run promotion activities indicated in the plan. 
c. PR & Communications Coordinator Shannon Alderwick. 
d. Marketing Manager Moea Theroux and Master Data Administrator Andre 
Burton 
e. Automotive Catalogue & Engineering Data Analyst Daniel Mitchell and IT 
department 
f. Marketing coordinator Monique Ollerenshaw 
g. Chief Information Officer Tony McCoy 
 
 
 
 
 
 
 
 
 
 
9. Budget and controls 
 
 
 
 
 
Controls 
 
a. The Radio spot commercial will be approved by the Marketing Manager and 
Communications Manager before being placed on air. Agreements with 
advertising agencies will be signed after approval of legal and finance ARB 
departments. After the spot has been released, selected stores will play radio 
stations hired to check if the spot is played in the radio station. 
b. Purchasing department will buy banners, signs, displays and stands that will 
be installed in stores. Each store manager will be responsible for receiving and 
installing advertising apparel. Also, each store manager and sales coordinator 
for B2B and Government will be responsible for supervising that sales staff 
promote the new line of product. A review of the number of sales of products 
per store will be evaluated weekly. Customers in stores will be surveyed asking 
if the sales staff tell them about the new products. 
c. Finance department will transfer funds to clubs and communications 
coordinator before approval of the legal department and General Manager. 
The number of participants at each event will be recorded and reported to 
ITEM DIC JAN FEB MAR APR MAY JUN TOTAL
Quantity Sold 100 400 800 1,500 2,000 4,500 5,700 15,000 
Sell ing price 600 600 600 800 800 800 1,000 
Income
Sales revenue 60,000 240,000 480,000 1,200,000 1,600,000 3,600,000 5,700,000 12,880,000 
Cost of Good Sold
Variable 20,000 80,000 160,000 300,000 400,000 900,000 1,140,000 3,000,000 
Fixed 30,000 30,000 30,000 30,000 30,000 30,000 30,000 210,000 
Gross Profit 10,000 130,000 290,000 870,000 1,170,000 2,670,000 4,530,000 9,670,000 
Expenses
Radio Spot 150,000 120,000 120,000 100,000 - - - 490,000 
Staff Advertise 80,000 - - 20,000 - - - 100,000Club Sponsorship 350,000 - - 350,000 - - - 700,000 
Email Avertising - - - - - - - - 
Catalogue Addition 80,000 - - - - - - 80,000 
Pop-up Internet 60,000 45,000 30,000 30,000 30,000 30,000 30,000 255,000 
Social Media campaign 20,000 15,000 12,000 5,000 5,000 10,000 10,000 77,000 
ARB APP 450,000 20,000 20,000 20,000 20,000 20,000 20,000 570,000 
Total Expenses 1,190,000 200,000 182,000 525,000 55,000 60,000 60,000 2,272,000 
Project Profit 1,180,000- 70,000- 108,000 345,000 1,115,000 2,610,000 4,470,000 7,398,000 
the Marketing department. Emails of each participant will be collected, and 
surveys will be asked about perceptions of ARB, purchases made, and 
satisfaction with the events. 
d. It Department will inform the Marketing manager how many customers 
receive, read, and answer emails sent. 
e. f, g. Master Data Administrator will inform statistics about the number of clicks, 
views, interactions, and purchases to the Marketing manager. Weekly reports 
will be given to General Manager. 
a. IT Department will update the app and will inform the Marketing coordinator 
about APP performance, Sales, downloads, and rate of usage. Weekly reports 
will be given to the General Manager. 
 
10. Recommendations 
 
It is recommended to run this marketing plan to take advantage of ARB 
capabilities and market dominance. The economic effort will be worth it because 
the whole company will benefit from the advertising campaign. It is highly likely 
that all ARB range products will increase sales numbers, thanks to the 
development of a new APP where customers could buy those products. This 
marketing plan covers all the aspects that should be considered from the 
company and market actual situation, through marketing mix, action 
programmes, and ending with budgets and controls. In consequence, this plan 
has been developed carefully making it flexible depending on its progress. 
 
 
 
 
 
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