This marketing plan, prepared by the Director of Marketing for a fictional freight forwarding company based in Los Angeles, California, examines the company's competitive position in the freight shipping industry. The report covers a SWOT analysis drawing on internal employee surveys and external customer surveys, identifies the restaurant and retail industries as primary target markets during an economic recession, benchmarks competitor pricing for five major carriers, analyzes channels of distribution and customer service performance, and presents a promotional budget review. The plan proposes actionable solutions for improving customer service staffing, enhancing service value, and controlling sales travel expenditures.
The paper demonstrates the use of triangulated primary research — combining employee surveys, customer surveys, field interviews, and direct competitor inquiry — to build a multi-perspective situational analysis. This technique strengthens the validity of claims by cross-checking internal perceptions against external (customer) feedback, a standard practice in applied marketing research.
The paper follows a formal business-report structure: an executive summary previews all major sections, followed by a detailed SWOT analysis, target market identification, competitor substitutes and pricing benchmarks, a channels-of-distribution review, and a promotional budget analysis. Each section closes with an analytical commentary and proposed action items, and the conclusion synthesizes the key findings and sets goals for the next reporting period.
As the Director of the Marketing Department for Freight Forwarding Company, I present this Market Plan on behalf of my department. Months of research and analysis have led us to the conclusions found within this report, and it is our goal to improve our company's overall advertising of its services, customer demand for services, output of its services, and the stream of incoming revenue. This Market Plan addresses the pertinent areas that formulate the basis for our company's success.
Specifically, this Market Plan examines the following areas as they relate to Freight Forwarding Company:
1. Services description and situational analysis (SWOT): What services we deliver and how we currently deliver them. We examine the strengths, weaknesses, opportunities, and threats that currently exist for our company, and propose solutions on how to maximize strengths, decrease and counter weaknesses, exploit current opportunities, and counter the threats to our continued success.
2. The target market: We examine who our target market is and what their current needs and demands are. This report addresses how we can better serve our target market and increase business among them.
3. The competitors' substitutes: We thoroughly address who our competitors are, what services they offer, and how we can tailor our services uniquely to suit our customers' needs while distinguishing ourselves from the competition.
4. The pricing of our services: We address what our current prices are and how they compare with those of our competitors. We also address how we can better market our company through promotional rates.
5. Channels of distribution: We address how our services are currently advertised and delivered to our target market and how we can improve on this delivery.
6. Our promotional budget: We present an example of our promotional budget for the upcoming fiscal year and examine its strengths and weaknesses.
After thoroughly researching each of these categories, we have determined how Freight Forwarding Company can improve its profitability in terms of consumer demand and make our company more attractive than its competitors. While in the past we did not always do so, we now propose a customer-centered approach. We believe that understanding the needs and demands of the customer and focusing on the delivery of those needs is what makes a company successful.
Freight Forwarding Company was established in 1987 as a freight distribution company in Los Angeles, California (Southland Distribution, Inc., 2007). We currently have 120 employees, both full-time and part-time. We offer services throughout the continental United States and Canada by air, truck, and rail nationwide. Our air and rail services are contracted through various carriers. Each year, we ship millions of pounds of freight for our customers. We provide a quality guarantee that the customer's merchandise arrives at its destination damage-free, and we also provide insurance, which we highly recommend. We operate 24 hours per day, seven days a week. Our company specializes in shipping freight for businesses; the customer is charged by the pound and based on the mode of shipment and the speed at which they choose to have their goods delivered. We offer free tracking and guarantee that goods will arrive on or before their scheduled delivery date (Southland Distribution, Inc., 2007).
All claims regarding liability must be made within seven (7) days of the shipment completion date. Our company requires that each customer submit a waiver acknowledging that their goods are free from damage prior to shipment (Southland Distribution, Inc., 2007). In the event that a claim arises, Freight Forwarding Company provides numerous insurance options to cover customer losses. We encourage all customers to understand that it is our goal to provide quality services that exceed their expectations, while also making clear the risks and limitations involved when hiring a shipping company.
In preparation for this Marketing Plan, our marketing department surveyed all 120 employees regarding our company's strengths and weaknesses. We then administered research surveys to customers who had obtained our services within the past year. Our goal was to compare internal and external perspectives to obtain a well-rounded dataset.
The employee survey identified the following strengths: quality of services, value of services, and customer service — specifically, understanding the customer's needs and providing for them.
Based on our customer-centered approach, we conducted our customer survey in a more detailed format and calculated the percentage of respondents identifying each area as a strength. The survey question was posed to customers as follows: "Having recently received services from Freight Forwarding Company, what, in your opinion, are the company's strengths?" The survey was conducted from a random sample of 100 customers. Results were as follows:
44% of customers stated that the quality of our services was our company's main strength. One customer wrote: "I felt confident entrusting my goods to Freight Forwarding Company. They provided step-by-step consultation of the services they provide and a complete description of how they would make the delivery. I was able to track where my goods were at all times, and my goods arrived on time in perfect condition. I will definitely hire this company for all of my future shipping needs."
20% of customers stated that customer service was our company's main strength. One customer wrote: "My questions were answered in a timely and professional manner. This is the first time I have used shipping services, but not at one point did I feel lost in the process. The customer service representatives were knowledgeable and eased all of my concerns regarding the process."
20% of customers stated that the value of our services was our company's main strength. Value was defined as the cost of services compared with the actual service the customer receives. One customer wrote: "Compared with companies that offer the same type of services, Freight Forwarding was very competitive in their prices."
14% of customers stated that the efficiency of our services was our company's main strength. Efficiency was described to customers as how fast the goods arrived at their destination relative to the customer's expectations and needs. One customer wrote: "I needed to have my merchandise at its destination within one week of shipment. Freight Forwarding Company was able to meet my needs by air. I was able to get the goods immediately shipped and they arrived on time. Other companies could not get my goods immediately shipped." Additional customer responses regarding our strengths included the methods and modes of shipping available.
Our marketing department concluded the following based on customer responses: the majority of our customers were satisfied with our quality of services. Most were pleased with how their goods were packaged and shipped, that their goods arrived safely and undamaged, and that, in the event of damage, our insurance options provided the requisite coverage. We believe that overall the quality of service we provide meets customer expectations, although we strive to increase satisfaction in this area, as the number still fell below 50%.
One solution proposed to increase quality of service is to document all situations in which our quality fell below customer satisfaction and analyze our company's responsibility for those situations. For example, if a customer is displeased with the condition of their goods on arrival, we would evaluate whether we could better secure the goods or identify other options within our control for reducing such incidents.
Regarding customer service, our department is concerned that only 20% of customers surveyed identified it as a company strength. To address this, we have instituted additional training sessions for our customer service team and implemented a call-recording system. We are proposing a budget increase to expand the availability of customer service representatives, including the possibility of remote work. Further discussion of customer service will appear in subsequent sections of this Market Plan.
That only 20% of customers consider the value of our services a strength also concerns us. Over the years, we have given much attention to providing superior value, but we believe these results are directly related to our competitors' offerings. Our proposed solutions include strategically incorporating promotions during seasons when customers are less likely to use shipping services, with the expectation that they will hire us to take advantage of the promotion. This plan is still being researched for implementation and assessment of its likelihood of success.
Our marketing department is also researching how to increase operational efficiency. Based on customer responses, we believe that anything falling below 50% in a given area constitutes a weakness. We currently offer ground, air, and rail services tailored to customer needs, and we are examining how competitors' services are affecting our numbers in this category. For example, we currently contract our air and rail services through different carriers. As Director of the Marketing Department, I recently met with the Director of Finance and shared our concerns regarding customer responses in the areas of efficiency and value. The finance department is researching how we can maximize our allotted budget in this area — a renegotiation of existing contracts may be necessary in order to provide greater availability of air and rail options for our customers.
The employee survey identified the primary weakness as the value of our services compared to those of our competitors. The main concern expressed was that our company's brand is still being established as a growing company, and that we do not offer promotions frequently enough to draw business and distinguish ourselves from competitors.
We then surveyed customers on their perceptions of our company's weaknesses. The question was phrased: "Having recently received services from Freight Forwarding Company, what, in your opinion, are the company's weaknesses?" The survey was conducted from a random sample of 100 customers. Results were as follows:
44% of customers responded that value was our company's main weakness. One customer wrote: "I did not believe that Freight Forwarding Company initially offered competitive rates compared with other companies. I managed to negotiate the price down significantly; however, had services been available through Wilson Trucking Corporation, I would have chosen them because they offered more competitive rates."
39% of customers identified customer service as our company's main weakness. One customer wrote: "Whenever I called the customer service line, I was placed on hold for an extended period of time. It was extremely difficult to speak to a live person, but I managed to find what I needed on the website, which is very user-friendly and helpful."
10% of customers cited quality of services as a weakness. One customer wrote: "20% of my goods arrived damaged. I know that there is always a risk when shipping goods; however, I believe that Freight Forwarding was in some way negligent in how they packaged the goods. The company was very good in working out solutions to the problem, and luckily I purchased the requisite coverage for my loss."
Other customer responses in the category of weaknesses included: location of services offered and efficiency of services offered.
The fact that 44% of our customers identified the value of our services as our primary weakness is a significant concern. We are aware that competitors are numerous and that in the freight shipping market, value heavily influences customers who are not generally bound by loyalty. As mentioned earlier, we are collaborating with our finance department regarding the results and implications of this Market Plan. While a full discussion of financial details falls within the purview of our finance department, it is my opinion that renegotiating our contracted rail and air services may result in more affordable pricing for customers. This has been brought to the attention of the Director of Finance and has been listed as an upcoming agenda item.
The finding that 39% of customers identified customer service as a weakness was equally concerning. As a follow-up, I placed a call — posing as a customer — to our customer service department. I was placed on hold for 8 minutes. When my call was answered, I inquired about what types of services Freight Forwarding Company offered. The agent curtly but proficiently answered my questions and directed me to the website for further details. I stated that I did not have access to a computer and that I wanted assistance in deciding which service was right for me. She proceeded to help me, and I ultimately felt satisfied and confident enough to proceed with placing an order.
My primary concern was the length of time I was placed on hold. Research into staffing revealed that we have 4 full-time employees and 9 part-time employees working only nights and weekends in our call center. Customer service calls come in at a rate of six (6) per minute and last approximately 12 minutes each. I concluded that our customer service department is either insufficiently staffed to meet customer needs or that scheduling is not balanced to meet calling demand. While we offer significant tracking and informational services through our website, many customers would still prefer to speak with a live representative or are not prepared to navigate our website independently.
The solution lies within what our budget can sustain. Our company is now in the process of proposing solutions to extend customer service availability while remaining within the allotted budget. In collaboration with the customer service supervisor, we are exploring, among other options: permitting agents to work from home to extend service hours, and upgrading our website to offer a live chat option. We concluded that customers who feel uncomfortable navigating the website may be less hesitant to interact with a virtual representative. Research into the budgetary implications of this website upgrade is currently underway.
In light of the current economic recession, new opportunities in the freight shipping market have become highly competitive. Historically, our opportunities have come from businesses seeking to ship cargo from one location to another — furniture stores, department stores, sporting goods stores, and auto companies, which have used our services to transport raw goods from factory to assembly plant or from assembly plant to retail location. Due to the economic crisis, contracts from auto companies have declined sharply. In 2006, 11% of our contracts involved auto companies requiring shipment of parts or assembled vehicles. By 2009, this figure had fallen to 3%, representing a single active contract. Research conducted to identify the cause of this decline pointed directly to economic conditions.
On the other hand, our current opportunities lie primarily within the restaurant and retail industries. In preparation for this Marketing Plan, we conducted field research with 500 companies across various industries to determine which sectors would most likely use our services in the future. The survey was developed by a marketing committee, approved by me as Director, and administered by telephone. Results are shown below:
Industry Type / Used freight services in the past / Anticipates need in the future
Automobile: 94% / 40% | Restaurants: 91% / 86% | Retail/General: 96% / 90% | Retail/Home Furnishing: 98% / 85% | Retail/Grocery: 92% / 90% | Construction: 43% / 19% | Personal/Moving Services: 22% / 12% | Contracting Companies (plumbing, electric, etc.): 56% / 45% | Health Care (hospitals, nursing homes, etc.): 30% / 30% | Farming/Agriculture: 18% / 18% | Government: 12% / 12%
Based on the above data, the primary opportunities for our company exist in all types of retail and in restaurants. We have begun developing a marketing strategy to target these industries. Our future advertisements, while not entirely excluding other potential customer industries, will focus on drawing the majority of our business from sectors most likely to hire our services.
In determining which threats exist, we focused on environmental factors. The most immediate threat is the economy. Because of the recession, many of our former customers have experienced reduced demand for their own goods and therefore have a diminished need for our services. As part of the market research, we interviewed customers from the industries listed above — particularly those that reported a diminished need for freight services in the future.
We spoke with the owner of a construction company who had been a regular customer in the past. He reported that he would likely not use our services in the near future, stating: "Our business is low. Because of the recession, we have fewer contracts to fill and people are not building homes like they were in the past."
Similarly, we spoke with an executive at U.S. Motors, who had acquired several contracts from 2001 to 2005 for shipment of car parts into their factory. U.S. Motors currently has no active contracts with us. The executive stated: "The auto industry has hit a plateau. People are not buying cars like they used to, and we have had to close several of our plants. We don't have a need for your services like we did in the past, and honestly we don't know when this is going to end."
As these customers illustrate, the economy is currently the greatest threat to our business, and our marketing team is actively working to counteract this challenge. As noted earlier in this report, we have targeted the restaurant and retail industries — those with the greatest current need for freight services — as our primary markets until the broader economy recovers.
Freight Forwarding Company is now in its 13th year of business, and even though this Market Plan has uncovered internal weaknesses — including issues with the effectiveness of our customer service department and promotional budget overruns — we remain a company with a steady client base. Like our competitors, the economic recession poses a threat to our business; however, we have adopted a strategy to counteract this effect. In the midst of the recession, industries such as retail and restaurants continue to demand our services, and we have made these our target markets.
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