Three-Year Marketing Plan – Heron Engineering Word count: 1500 excluding table 1 & 2 1.0 Executive Summary Heron Engineering (Heron hereafer) is to regain its market share in the Western European region (WE) and Central and Eastern European region (CEE) in both high-and low-technology sectors. Heron is capable of reestablishing its former positon as a market leader in both markets, given the producton of high-quality products that ofer more functonalites and productvity than its rivals at a very compettve value-added price. The primary marketng objectve is to retain outstanding reputaton with respect to the producton of extensive and high-quality product range in both markets. The primary fnancial objectve is to increase its market share and sales over the next three years. 2.0 Situation Analysis Established in 1899, Heron was the global market leader in the industrial stacking and storage business. By the end of 1990s, its European division was facing pressing problems in WE and CEE regions in high- and low-technology businesses. This ensued a loss in market share in both markets. 2.1 Market Summary Heron market shares have dropped in two European regions. The main factors behind the market loss are tough competton, new players entering the market, and change in the environment in which Heron operates. 2.1.2 Geographics Heron divides the market geographically into WE and CEE regions. 2.1.3 Target Market 1. Low-technology products: manufacturers, wholesalers and distributor industries; 2. High-technology products: factories, airports, docks, warehouses and other large facilites. 2.1.4 Target Market Choice Criteria • Low-technology products: (1)price; (2) product availability; and (3) product functonality. • High-technology products: • WE: (1) product functonality; (2) system customizaton; close relatonships with suppliers. • CEE: (1) atractve fnancing; (2) systems functonality; and (3) price, customizaton and close relatonships with suppliers. 2.2 Marketing Audit 2.2.1 The external audit: The Market • The European market worth: £275,000,000.00 • Heron sales revenue: £100,000,000.00 • Heron gross profts: £24,000,000.00 Competition Heron's high- and low-technology businesses face tough competton in WE and CEE regions. Lowtechnology rivals challenge Heron on price, whereas high-tech compettors do so by customising their oferings and building local relaton to meet customer requirements.
Table 1 illustrates the competition faced by Heron as well as the strengths and weaknesses of its rivals. • Competition faced by Heron Engineering Western European markets 65% Central and Eastern European markets 35%
High-technology systems £42,250,000.00 Low-technology products £22,750,000.00 exporting
Low-technology products £22,750,000.00 High-technology systems £12,250,000.00 exporting
Strong in high-technology systems Weak in low-technology products
Strong in low-technology Products (lower price) Weak in high-technology systems
Competitors strengths and weaknesses WE Competitors key strengths CEE – – Strong in low-technology sectors; Lower price.
– – – –
Strong in high-technology systems; Willing to customise their oferings to meet customer requirements; Providing a wide network of sales ofces throughout Europe; Lower price.
Competitors key weaknesses – – – High-technology compettors' products ofer less functonality and productvity; Low-technology compettors produce only crude, simple products with far less functonality; Compettors of high-technology systems are priced higher.
2.3 Internal Audit Western European markets Sales £65,000,000.00 (65%) as follow High-technology systems:(65%) £42,250,000.00 Low-technology products:(35%) £22,750,000.00 Market growth Market shares negligible high Central and Eastern European markets Low-technology products:(65%) £22,750,000.00 High-technology systems:(35%) £12,250,000.00