Scion Cars Marketing Plan - Essay Example

Marketing strategy

Product

The Scion Cars will be of the highest quality in terms of material used to manufacture, engine performance, features, and fuel consumption. They will be produced to cater to and satisfy the needs of all consumers in the market (Kotler, 1980).

Price

There will be different models of the Scion Cars all designed with regard to the target market segment with affordability as the main point of focus. The car will be cheap to maintain, as the car parts used will be locally available at reasonable prices (Hopkins & Conference Board, 1981).

Place

There are Scion showrooms and outlets in major towns that will be fully utilized for the sale of this product.

Promotion

The Scion Cars will be advertised via all media such as television, radio, internet, billboards, use of marketers and all other effective channels of promotion will be considered to maximize the number of consumers reached (Cohen, 1995).

TABLE 1: PRO-FORMA INCOME STATEMENT AT $18,000

For the current year 2014

R &D

Before launch

Suggested retail price=$18,000

Investigation costs

$260,000

Less retail discount=$2,000

Development costs

$760,000

Price to retail=$16,000

Discount rate per year

5.00%

Less wholesale discount=$3,000

Selling price=$15,000

Annual costs and sales

2011

2012

2013

2014

2015

Manufacturers unit price

$12,000

$12,000

$12,000

$12,000

$12,000

Variable unit cost

$800

$800

$1,400

$1,400

$1,300

Fixed cost p.a.

$2,100,000

$2,100,000

$2,100,000

$2,100,000

$2,100,000

Retail sales expected

$52,600,000

$57,500,000

$61,800,000

$68,000,000

$73,000,000

Industry sales p.a.

330,900,000

500,900,000

800,500,000

134,600,000

180,000,000

Scion market share

2.10%

4.20%

7.00%

8.10%

11.00%

Scion sales p.a.

210,000,000

460,000,000

740,000,000

110,000,000

150,000,000

.

Income statement

Before launch

2011

2012

2013

2014

2015

Sales

$6300000

$13800000

$22180000

$32000000

$43000000

Variable cost

$3200000

$6500000

$10000000

$14000000

$17000000

Fixed cost

$1500000

$2100000

$2100000

$2100000

$2100000

$2100000

Profits

(1500000)

$1200000

$5400000

$11000000

$16000000

$24000000

Cumulative profits

$200000

$5500000

$16000000

$32000000

$56000000

Net present value

$35 400000

TABLE 2: PRO-FORMA INCOME STATEMENT AT $16,000

Research and development

2014 Before launch

Suggested cost=$16,000

Investigation costs

$260,000

Less retail discount=$2,000

Development costs

$760,000

Retail price=$14,000

Discount rate per annum

1.00%

Less wholesale discount=$1,000

Selling price=$15,000