Dreamline Trucking Company Strategic Marketing Plan

Running head: DREAMLINE TRUCKING COMPANY ENVIRONMENTAL ANALYSIS

DREAMLINE TRUCKING COMPANY ENVIRONMENTAL ANALYSIS 4

Week 2 Apply Signature Assignment Part A Strategic Marketing Plan

Dreamline Trucking Company Environmental Analysis

Dreamline trucking company was founded in 1990 ferrying goods between Arizona and Los Angles. The company started with a handful of trucks and now has a fleet of 3,500 trucks and specialized in transit of brokerage and refrigerated trailers. The company generates $850 million in revenue annually and is publicly traded on the New York Stock Exchange (NSE). Dreamline\\\\\\\'s mission is \\\\\\\"to operate truckload businesses that are industry-leading in both margin and growth while providing cost-effective solutions for our customers.\\\\\\\"

The vision of the business is \\\\\\\"to improve the revenue generated from our systems capability, terminal network, and management capacity and leverage the company resources to expand business through mergers and acquisitions.\\\\\\\" Dreamline services include transportation of temperature-controlled truckload carrier services. The proper management of these issues makes it possible for the corporation to address the differences associated with creating a common interest.

Environmental Analysis

Pestel Analysis

Political Forces. The administration\\\\\\\'s change is likely to foster business as the new administration retreats from the previous legislation\\\\\\\'s trade war. These changes and the intended measures to foster trade within the NEFTA agreement will increase demand for trucking and present new growth opportunities (Hong & Nguyen, 2020).

Economic Forces. The covid-19 pandemic led to several business closures that halted its operations by more than 50%. However, some industries experienced a boom as demand for product delivery grew. However, the aggregate demand for trucking services declined dramatically, causing a decline in the demand for goods.

Social Forces. Environment-friendly consumerism is growing and has forced the client firms to advise Dreamline to adopt this trend. Since the firm relies on a business-to-business model, clients, such as Walmart, would like to inform its clients that the goods they are purchasing have been produced and transported in an environmentally friendly manner

Technological Forces. The use of an electronic system to monitor inventory and automatically make an order for stock replenishment has also been adopted widely. Marketing has also transitioned to digital platforms since they reach young audiences who constitute the largest consumers (Thomas, 2007).

Environmental Forces (BCG Matrix).

Dogs. Tipton has a negligible market share compared to Dreamline brokerage, which is a market leader. Dreamline brokerage of trailer\\\\\\\'s company\\\\\\\'s growth has been mainly through referrals since its visibility in the market is high compared to its close competitors (Hong & Nguyen, 2020). Tipton has been profitable, although its growth has been stagnant. Its competitors, such as Pyle and Averitt Truckers, lack strategic advantage and financial resources to differentiate their services and market at a competitive rate.

Cash Cow. Dreamline truckload trailers are the market leader with more than 51% market share of the trucking market segment. Its competitors, such as Pyle and Averitt Truckers, lack strategic advantage and financial resources to differentiate their services and market in trucking at a competitive rate.

Stars. Dreamline\\\\\\\'s business model star is the trucking logistics segment since it controls 19% of the market share. Averitt has made milestones in leveraging its logistical infrastructure to create competition for Dreamline (Thomas, 2007). However, Dreamline has more liquidity and capability, making it a preference among consumers due to its history.

Question Marks. The carrier industry\\\\\\\'s refrigerated trailer segment is growing and is mainly new market entrants, such as Pyle Tractors. Pyle Truckers generates $50 million in revenue on average and services a debt the firm acquired during the freight acquisition and financing corporate operations.

Legal, Regulatory, and Ethical Issues. The firm has been facing litigation for poor remuneration of employees violating the Fair Employment Act. The firm was sued for $100 million last year resulted in financial expenses that could have been avoided (Thomas, 2007). Changes in regulations, Motor Carrier Safety Rating, could result in unexpected challenges due to COVID-19 safety measures in different state regulations could limit the jurisdictions that some of its trucks can operate.

Current Marketing and Target Markets

The business-to-business model has enabled the organization to establish long-term and carry out marketing tailored to meet organizations\\\\\\\' needs rather than individual consumers. However, the firm is relying on traditional marketing channels to reach customers. For example, most of its customers were referred to the company by current clients (Hong & Nguyen, 2020). The marketing strategy is leveraged on the firm\\\\\\\'s capabilities such as environmental leadership, the capability to accommodate various customer needs, industry-leading service, and superior safety record. The organization\\\\\\\'s marketing channels are conventional, and the modern efficiency realized through online mediums is yet to be exploited fully (Gijsenberg & Verhoef, 2019). The current target audiences in Dreamline\\\\\\\'s marketing strategies specialize in the specialty retail industry, the retail industry, the furniture & fixtures industry, the auto & truck manufacturers industry, and the apparel, footwear & accessories industry.

SWOT Analysis

Strengths. Dreamline trucking company is the market leader with more than 51% market share of the trucking market segment. The revenue generation channels have been diversified to leverage the firm\\\\\\\'s logistics and network to generate income. Dreamline has laid its geographical network across America close to population centers. Consequently, the firm\\\\\\\'s market growth is propelled through marketing to such a population using traditional and digital channels to acquire and retain old customers.

Weaknesses. Dreamline services\\\\\\\' market position is not clear that may limit the market reach in its marketing activities. While the firm might be performing well in the sale and positioning the firm accordingly in the market would make it possible for the firm to be more competitive in the market.

Opportunities. New automated inventory systems offer new opportunities for the business\\\\\\\'s growth by eliminating time lags in its client\\\\\\\'s supply chain. The firm has diversified its trucking business into the in transit of brokerage and refrigerated transit market segment that can be developed through online marketing channels to promote these subsidiaries\\\\\\\' awareness. Trade agreements made by the government with Mexico and Canada have opened new markets for the organization.

Threats. The growing ability of new entrants is high with new online marketing channels and logistic systems. The government rejoining the Paris Agreement of 2016 could limit its ability to continue growing profitability before adapting to climate-friendly technology use measures. The reactive tendency to innovation by competitors could limit the firm in remaining competitive in the future. The demand for the services offered by Dreamline often varies with seasons that could sabotage the profitability of the company of the seasons coincide with unlikely events interrupting business. The liability the firm faces due to its employment policies could result in a loss of talented employees and the development of common interests.

Strengths to Opportunities & Converting Weaknesses and Threats

The firm has a diversified portfolio that should use its wealth to build a large base of customers for all the subsidiaries. The firm can define its market clearly by examining the customers\\\\\\\' needs rather than relying on what they purchase (Gijsenberg & Verhoef, 2019). Focusing on service delivery across its subsidiaries rather than product development will eliminate the threat of seasonal challenges in cash generation. Raising the cost of switching could also eliminate new entrants\\\\\\\' threats and secure a loyal customer base.

Marketing Objectives

Dream line aims to increase its market reach among individuals and businesses, targeting this demographic by 40% through online mediums in 2021. To increase inhouse driven innovation and to leverage modern technology trends in marketing by 2023. To segment the marketing audience between 21-29 and 30-38 by 2022 to engage young consumers interactively. Tailor services for different market segments without looking into organizational services.

Part B

Internal Data

Source

What it measures

Data

Potential usage

Financial Data

Monthly acquisition of funds, management of funds, and monthly expenditures of funds in the company

Cash flow reports express the amount of money generated and used in the company in a month.

Production reports indicate the company\\\\\\\'s total cost in a month to produce a certain product or service.

Budget variance analyses investigate the changes between the overall performance of the company and what was budgeted.

It can be used to track the financial progress of cash inflows and cash outflows, evaluate costs incurred by the company in the production of goods and services, help in the decision-making of when to order supplies, and evaluate the overall price per unit.

Marketing information and research

The information generated from analysis of customer patterns and behaviors, products and market dynamics, and their effect on the company\\\\\\\'s performance within a certain period

Marketing research generates information on environmental factors and their effect on consumer habits, product research, corporate research, customer attitudes, behaviors and perceptions, marketing, advertising, and promotion research.

Can facilitate strategic planning in the company, identification of potential competitive threats and market opportunities, evaluation of trend analyses, risk assessment, and provision of revenue projections

Human resources

A monthly collection of company employees\\\\\\\' data, especially during recruitment, formulation of payrolls, and attendance

Functionalities of the human resource system include applicant tracking systems, payroll, benefits time and attendance, training of employees for skill improvement, performance management, succession planning, employee self-service, and reporting and analytics (Vulpen, 2020).

They are potentially used in better analysis and good decision-making processes, recruiting management for the Dreamline Trucking Company, and recording employee training details.

Secondary Data

Source

What it measures

Data

Potential usage

Sales records

Measurement is made through a record of all the company\\\\\\\'s sales and transit services per day. It also includes the reduction in the inventory about the sales or deliveries made by the company, and the sales tax liabilities

Holds information contained in files of the company\\\\\\\'s customer data on purchases, transit, and delivery of goods (Horwitz, 2016)

Customer data addresses, dates of transactions and deliveries, amounts of products purchased or ferried, products bought or ferried, payment methods, and customer returns

Can be used in the effective management of accounts, interests incurred from loans, taxes and working cost in the ferrying company.

Marketing records

It contains a record of information about a specific product or service provided by the ferrying company. For example, monthly temperature-controlled carrier services marketing records.

All labeling, informational letters, advertising strategies, marketing strategies, market research done for a specific service or product, sales and promotional materials used in the marketing of a certain product or service by the ferrying company during a given period

It can be used in quicker decision-making processes.

Generation of customer patterns analysis and competitor information analysis

Product purchasing data

The number of goods purchased and delivered by the company per month

A purchasing plan entails; the type of product or service ordered by the customers or the company, the quantity or number ordered or delivered, the price for each product or service, and all the delivery terms.

It can be used as a tool for monitoring, controlling, and planning the ferrying operations during various decision-making processes in the company

Primary Data

Sources

What it measures

Data

Potential usage

Surveys

An understanding of the markets for the Dreamline Trucking Company\\\\\\\'s products and services

The customer and company relationships and all the transactions made between them (Wreden, 2002)

Both qualitative and quantitative.

When done properly, data collected from surveys can reduce risks in the company and provide insightful information about employees, customers, and the general market and alignment of marketing and other communication programs.

Interviews and questionnaires

Complaints made by certain customers about some of the services provided by the company

Improvements to be made on service and product provision to customers.

Qualitative and quantitative feedback from customers and various stakeholders on the overall performance of Dreamline Trucking Company in the provision of services and production of goods

It can be used in the improvement of service provision and decision-making processes in the company.

Observation

Competitor information and progress, product usage by the customers, and the company\\\\\\\'s customer satisfaction and market trends within a certain region

Both qualitative and quantitative.