The strategy of Mike's Trucking is to consolidate its good customer and client service by making timely deliveries, hiring the best drivers and having a competitive pricing structure. The company's goal in the next year is to become an independently-run business entity without having any contracted services. We would like to fully manage our trucking operation, from hiring drivers to sourcing business. The company's goal within the next five years is to operate a full-service trucking business with a fleet of trucks, "hot-shot" trucks, and minifloat loads. Mike's Trucking would like to be in a position to handle any job available at this stage.
Key components of our initial strategy can be summarized as follows:
Mike's Trucking offers the following advantages to customers.
Our major competitive advantage is the vast industry experience and solid reputation of its owner, Mike Smith. His company is also well known among its clients for going that extra mile in the customer-service department.
We markets our services as solutions to the many companies requiring cargo to be transported promptly and efficiently. The company's future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo. The overall marketing plan for services is based on the following fundamentals:
At the time of this writing, Mike's Trucking has a lease arrangement with various companies. The company's pricing is based on miles per thousands of pounds of cargo transported. We will be able charge competitive rates, as we have minimal overhead compared to our competition. The table below sketches out the pricing structure; for a key to this table please see asterisks at the bottom of the page.
Figure 3. The company's pricing structure.
0-1500 lbs. FAK*
1501-6000 lbs. FAK*
6001-16000 lbs. FAK*
16001-30000 lbs. FAK*
* FAK= Freight of all kinds.
** Types of trucks.
Market Responsibilities. Mike's Trucking is committed to an extensive promotional campaign. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives:
Promotion. In addition to standard advertisement practices, Mike's Trucking will gain considerable recognition through these additional promotional mediums:
Incentives. As an extra incentive for customers and potential customers to remember the name, Mike's Trucking plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo.
Brochures. The objective of a brochure is to portray the company's goals and products as an attractive functionality. Mike's Trucking will develop three brochures: one to be used to promote sales, one to announce the product in a new market, and the third to recruit sales associates.
The company will base its sales strategy on increasing the sales from its existing customers, and also to target new businesses. For the latter purpose, we will employ a part-time sales representative.
A customer survey has shown that currently Mike's Trucking is losing sales from its existing clients because the company cannot provide certain types of services. The customers have also shown interest in giving more business to Mike's Trucking once the company increases its truck fleet to handle special orders. Once the new trucks are purchased, we will notify our clientele of the new services and pitch our services to the new businesses. We will further continue our policy of only accepting jobs which can be delivered with high customer satisfaction. Orders that require outsourcing will be gradually eliminated so that we can provide total quality control over the services we render.
The following table and charts show our projected sales for the next three years.