Strategy and Implementation Summary
Initially, Aero Technologies will focus on the local and regional markets in the previously mentioned services. The target customers will include key decision-makers in the large, medium, and small-sized organizations, be they in a start-up, stable, or growth period.
Our marketing strategy will emphasize focus. This will be the key. We are a relatively new company on the market and must focus on certain kinds of services with certain kinds of clients. The project will focus on the local and regional markets, expanding into the international markets as time progresses, and as we gain the necessary experience. The form of growth that shall be initially pursued will be that of organic growth mainly due to limited resources and the need to instill awareness and confidence in our services. The target customers will include key decision-makers, sales and marketing personnel involved in decision-making and transaction sealing.
- We intend to build image and awareness through consistency and distinctiveness in our service provision.
- We intend to focus on delivering quality services and end products that in turn produces good referrals, which can then generate revenue.
- We intend to always have a relatively heavy personal selling component to our marketing.
Our strategy is to (Discussion omitted).
Through the implementation of a fair, effective and competitive remuneration policy we intend to optimize our human resource output and advancement. We need the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows — a mutually beneficial relationship. As a result we intend to vigorously search and find the right people for our organization.
5.1 Competitive Edge
A key factor to the future success of this project is the background and experience of the management team and strategic partners, and their ability to work the market based on an innate understanding of both the business processes and market structures. The delivery of whole, end-to-end solutions will have a significant impact on gaining commitment from the market at all levels. Therefore, the company believes in partnering with its customers to bring the future in communication and information technology into the customer contact zone. Inevitably this shall involve constant liaison with the client, a customer-centric approach that is need-based.
5.2 Marketing Strategy
One core element of our strategy will be that of differentiation from our competitors. In terms of marketing, we intend to sell our company as a differentiated strategic ally, not just our services. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Market penetration through lower prices shall be undertaken where need be whilst premium pricing in the case of high quality services targeted at the upper-end of the market. Our service marketing will strive to ensure that we establish long-term relationships with clients. Our primary intention will be to sell a relationship more than services.
Our service marketing will emphasize the benefits of speed, interaction and flexibility to be gained from utilizing our services. The approach will be entirely needs-driven and a thorough understanding of the business requirements, business processes and technology strategy of the customer being the basis on which an Aero Technologies solution will be built. Once the needs and processes are understood and described, leading edge products and best-of-industry skills will be applied to design and develop a fitting solution to satisfy the need and enable the customer’s business in the most cost effective way.
5.2.1 Positioning Statement
Aero Technologies intends to be uniquely positioned to help customers apply communication and information technology products and skills to meet the challenges facing their businesses today. Our competitive edge will be our dominance of the market as early entrants, customer orientation and traditional hard work. Though our clients might range from large corporations to medium or even small businesses, what is important to the client irrespective of the size or industry is total satisfaction with the end product matched to their capabilities and resources.
5.2.2 Pricing Strategy
Aero Technologies will be competitively priced in relation to the dictates of the market. The pricing fits with the general positioning of Aero Technologies as providing high-level quality service and expertise. Due to the introductory nature of the vast majority of our services we intend to implement a penetration pricing strategy which will ensure that potential clients are not frightened away by our prices up until our services are appreciated and fully operational. However this will dictate that our costs are prudently kept so as to ensure our financial goals come to fruition. Once development of the online applications is completed it is our intention to charge a monthly/six-monthly, or whichever the client prefers, recurring fee which will be charged to their account. This fee will be worked out in such a way that it covers for operating expenses as much as possible (Discussion omitted).
We will make sure that we charge for the service, expertise and any delivery with our aim being to achieve a gross profit margin of at least 60%. Naturally services targeted at the higher end of the market will have higher mark ups as these clients are less price sensitive. All in all we intend our prices to be extremely competitive on the market.
5.2.3 Promotion Strategy
Aero Technologies intends to utilize an aggressive promotional campaign to introduce its business units to the market. The intention will be to take advantage of several media sources in announcing the services and in the process reinforcing awareness of its existence. It should be stressed that these promotional campaigns shall be designed in such a way that they do not undermine the organization’s current corporate image but instead enhance it.
Our promotional activities shall be focused towards driving the organization’s overall strategy relentlessly, developing internal consistency and preparing it to confront any radical changes that may arise. This strategy will be based primarily on informing potential customers of the existence of our services and making the right information available to our target customer. The intention will be to highlight the benefit of utilizing our service(s) which will include:
- Ease of communication
- Improved corporate logistics
- Cost savings on transactions
- Chance to maintain if not improve the corporate image
- Improvements in the operations of the value chain
- Chance to improve corporate visibility regionally as well as globally, and develop niche strategies.
In such a market we cannot afford to appear in or produce second-rate material with poor labels that make our services look less than they are. We intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and pads. We intend to spread the word about our business through the following:
- Advertising (Discussion omitted)
- Personal Selling (Discussion omitted)
- Public Relations (Discussion omitted)
- Events (Discussion omitted)
- Direct Marketing (Discussion omitted)
- Internet Marketing (Discussion omitted).
In all the above we intend to communicate our ability to deliver a service of uncompromised nature and high quality that will satisfy the clients needs. Hence our messages will influence the decisions of prospective clients by emphasizing our unique selling proposition and, persuade prospective clients that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in concert so as to maximize their effect.
5.3 Sales Strategy
The sales forecast monthly table is included in the appendix. The annual sales projections are included here. It should be noted that as we become established and known on the market we project sales to increase at a faster rate than during the initial year.
5.3.1 Sales Forecast
Aero Technologies will receive its revenue streams from a combination of licensing agreements, royalties, sales commissions, monthly subscriptions, registration fees, network access charges, service fees, transaction charges, marketing fees, promotional incentive programs, etc. From this one can see the heavy service orientation nature of the project. The derived value of Aero Technologies will come from the key partnerships established and developed in order to deliver a service provision of transactionally based activities, providing opportunity to build brand and loyalty, around which relationship marketing will play a key role.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$410,000||$492,000||$734,000|
5.4 Strategic Alliances
In today’s volatile and competitive environment it is becoming increasingly essential for organizations to concentrate on their core activities so as to gain and maintain a competitive advantage. This brings out the advantage of undertaking strategic alliances with organizations that the firm may benefit from and visa versa. The solid partnerships the company intends to entrench with several companies will ensure that its solutions are world-class, best-of-breed products and systems. They will also reassure our customers that they are investing in “winning” technology and service that is maintainable, flexible and scalable enough to meet future demands.
At this writing, strategic alliances with several firms are possibilities, including JJJ and KKK given the content of existing interest and discussions. By going into strategic partnerships with suitable organizations we intend to benefit from being able to concentrate on our core activities in the delivery of our service(s) to the end-user, whilst ensuring that we do not have to compromise on quality of execution or the number of services we are able to deliver.