Marketing Analysis of American Cartage and Distribution Company

This report conducts a market analysis of American Cartage and Distribution Company, a trucking and warehousing service provider based in New Jersey, United States. The report examines the macro and micro environmental factors, target markets, positioning, and marketing mix strategy of the company. It also provides recommendations for the company to adapt to digital marketing and latest technologies for better market reach and awareness.

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Executive Summary
The report conducted a market analysis of American Cartage and distribution Company
which is suited at New Jersey, United States of America. The company offers Trucking &
Warehousing services and it operates by storing goods before distribution to diverse
entrepreneurs. The macro-environmental factor was examined through PESTEL. The pestle
analysis indicated that the environment is suitable for conducting business despite some
challenges such as trade war between China and the US affecting the market. The
microenvironment analysis also shows that the environment is suitable for doing business with a
high number of suppliers leading to low prices despite a high level of competition. The company
targets small, middle and large companies or entrepreneurs in need of warehousing services.
Furthermore, the company uses high qualified staff and quality services to position itself in a
competitive market. The marketing mix significantly shows the company is ahead of
competitors. The company uses strategies such as differentiation and pricing to gain a
competitive advantage. The report concluded that the United States has an ideal environment for
launching newly in products and further recommended American Cartage and distribution
Company to adapt to latest technologies such as the use of digital marketing to reach targeted
audiences and create awareness of the products.

Table of Contents
Executive Summary.....................................................................................................................................2
1. Introduction and the background of company......................................................................................4
2. Situational analysis..............................................................................................................................4
2.1 Macro environment analysis (PESTEL)................................................................................................5
3. SWOT Analysis...................................................................................................................................6
4. Target markets and positioning............................................................................................................7
5. Marketing mix strategy........................................................................................................................8
5. Product................................................................................................................................................8
5.2Price....................................................................................................................................................9
5.3Place...................................................................................................................................................9
5.4Promotion...........................................................................................................................................9
5.5Physical environment.......................................................................................................................10
5.6People...............................................................................................................................................10
6. Recommendation and conclusion......................................................................................................10
7. References.............................................................................................................................................11
8. Appendixes............................................................................................................................................11

1. Introduction and the background of the company
The main aim of the report is to conduct marketing analysis and plan of American Cartage
and Distributors. The company was founded in 2003 and has its headquarters based in Jersey,
United States of America. The company covers 48 states in America and provides various
services under the registered interim license of transacting and offering warehousing services.
Primary, the company’s main services include Trucking & Warehousing and it operates by
storing goods before distribution to diverse entrepreneurs. Recently, the company has installed a
warehouse management system (WMS) in order to tighten its inventory controls, increase
overall warehouse productivity, cutting edge mobile technology and enhancing its operations and
customer services.
2. Situational analysis
The situational analysis includes the macro environment and microenvironment factors that
influence the way a company or an industry operates. Macro environment deals with the external
environment of business while the microenvironment deals with the internal environment.
According to Dockalikova and Klozikova (2014), a company must conduct a thorough analysis
of the internal and external environment in order to determine the profitability of the market. In
addition, through awareness of internal and external factors, a company is able to identify
various factors and trends that might affect the current and future prosperity of business and
come up with strategies of handling the trends.
2.1 Macro environment analysis (PESTEL)
PESTEL is a tool that is used to analyse the macro environment of the business. PESTEL
analysis consists of Political, economic, social-cultural, technological, ecological and legal
factors that affect how the business operates.

Political
Change in tariffs- With the United States engaging in a
trade war with China, changes in tariffs have been
experienced in the country that has indirectly influenced
how the company does business
-Job acts and rises in taxation- The rising trends of
government planning to increase corporate taxation and
revise minimum per hour policies, the company is likely
to experience low-profit margins.
Economic
-The trade war between China and the United States.
-Fluctuation in Canada and the United States
-High GDP- United states have a high GDP indicating that
consumption for products is very high
-government intervention in the free market.
-increasing inflation rates.
- high-interest rates charged by local banks
-high economic growth rates
Social-cultural
High population- USA has a high population of 326
million with the country being ranked as third most
populous in the world. Recent research by Dessalles,
D'Orsogna & Chou (2019) shows that in every 8 seconds
a birth is recorded and in every 11 seconds, death is
recorded. The increased in population ensures there is the
availability of labour.
-low unemployment levels although the aging population
will lead to a labour shortage in future.
-class structure, hierarchy and society’s power structure.
Technological
Growth in digital payment mode
Internet of things
legal
-Data protection (Intellectual property rights and
trademarks)
Environmental
Climate change and national catastrophic

-Consumer protection and e-commerce
-Anti-trust laws
-employment law.
Change in weather affecting logistics services.
Attitudes towards “green” or ecological products
Air and water pollution act.
2.2 micro-environment analysis
Suppliers
The supply power is very low with the logistics and
warehousing industry consisting of too many suppliers.
The availability of too many suppliers has given companies
an opportunity to dictate prices and further lowered
distribution costs.
Resellers
-The number of resellers (third party) is very low. The
distribution chain has limited interference of 3rd parties’
resellers such as wholesalers and retailers. Therefore, the
success of the company and the industry is not determined
by resellers.
Customers
With the company operating in B2B, B2C and local
markets, the number of customers is very high. The
increase in the number of consumer’s means increased in
bargaining power which significantly contributes to
lowering of price by the company reducing [profitability.
Competition
The competition in the industry is very with both small and
key players competing for the available resources. The key
competitors such as Caruso logistics, Champion, Clark and
Commonwealth controls the industry with companies
having a high customer base and market share. In addition,
these key players in the industry dictate prices which
significantly affects small companies like American
Cartage and Distributors
3. SWOT Analysis

Strengths
-Supply chain and operational efficiency ( the
company achieves efficient operations and
supply chain by trimming down its overhead
costs,
-the company offer a broad range of services as
compared to competitors
-customer loyalty
-a desirable market share.
-Strong label brand (the company appeared
among top 500 in global fortune lists for the
year ended 2017)
-Committed to quality
-strong mover advantage (as a result of
deduced economies of scale)
Weakness
-high dependence of operation in the USA
indicating that change in market demands in
the country may significantly affect its
profitability.
-low convenience to customers as a result of
unattractive displays.
Opportunities
-the high demand for warehouse companies as
a result of economic growth.
-opportunities for international expansion
-increased member base
-growth of internet and eruption of
technologies offering the company an
opportunity to conduct digital marketing and
Threats
-Fluctuations in foreign currency state.
-strong competition from other existing firm in
the industry.
-emerging of new companies with
differentiated services.

penetrate diverse markets.
4. Target markets and positioning
American Cartage and Distributors is positioned in New Jersey in the United States. The
company has situated its operating facilities near the significant railway yards, seaports, and
airports. The company's location dictates the central area of interest where a high number of
clients can seek out for their services (Scott, 2017). To attract a high number of clients,
American cartage and distributors have armed itself with a high number of qualified staff who
ensure total customer satisfaction upon the warehousing services offered. The
Furthermore, the organization, on its panel of employees, entails highly qualified sales
person who has played a significant role in ensuring the company has advertised its services to
nearly every corner of US. Through using “qualified employee positioning”, the company have
come up with an online platform called AmriWeb MMS which aid in warehousing services
delivery. The AmeriWeb WMS is an online platform with the task of ensuring that there are
effective communication, event notification, and the integration of the electronically modified
orders. Thus, the organization offers warehouses facilities which are strengthened by the locally
available dray operations, from the rail yards, airports, and seaports. Additionally, the American
cartage and distributors only operate within the United States of America grounds alone.
Meaning that the organization is on its establishment where shortly it opts to extend its services
to the global market.

5. Marketing mix strategy
Marketing mix emerged under the foundation of the renowned McCarthy in the early
1960s. The philosopher is believed to dictate and present the principles of the marketing mix as
Product, Price, Place and Promotion. Subsequently, other developments have been done where,
Process management, Physical evidence, and People have been included in this panel as the
'softer' type of elements. Thus, the product is the essential element looked upon by a high
number of organizations, including American cartage and distributors. Marketing mix can be
referred to as the set of the controllable variables in marketing which the firm has to blend for
proper production of the response it aspires to receive in the targeted market (Oflac et al., 2015).
5. Product
Product is the combination of the resources that the firm has put in place, more so as the
single offered unit to the client with the aspiration of making a profit. With this in mind, the
American cartage and distributors have devoted to brand its warehouses with conspicuous and
images which pulls the attention of the clients (Weems and Chambers, 2017). Additionally, the
organization has set bright design as well as features where the clients can be offered free
services which include, packaging of their goods in a safer way to ease and prevent damages
during the transportation activities. Upon labelling, the organization has seals and packaging
materials which show the brand name of the organization indicating it as a means of advertising
its services.
5.2Price
Every client aspires to weigh the price of the services offered alongside the services
rendered to him. The most probable pricing checked on by the company is the psychological
pricing where the marketing strategy is based upon the theory which asset that high prices affect
the consumers psychologically. Higher rates can lead to fewer clients hence low-profit gain,

while low prices will lead to collapsing of the company by being bankrupt (Oflac et al., 2015).
Therefore, the warehousing has put in consideration the following pricing strategies: charming
the price that is reducing by one digit on the left side, prestige strategy on pricing, buy one get
one free(BOGOF), and lastly application of comparative pricing.
5.3Place
Warehousing is always concerned with the elements and strategies of storing and
transportation of goods. This automatically makes them be availed to the client in a favourable
way as well as on time. Similarly, when referring to a place, the company must put into
consideration several factors which include channels of distribution and centres, order processing
as well as transportation. Therefore, since the company deals with warehousing in the dry land,
the most effective mode of delivery is the use of vehicles where big trucks are used for carrying
heavy luggage. In consideration, the company has selected the most effective channel of
distribution among direct and indirect distribution, selective and exclusive distribution, where
immediate delivery is the most active types since the company is on it's on a macro level.
5.4Promotion
The company is more concerned with the welfare of its clients. Thus, it offers clear
information on the ways and means in which the customer can receive the information for proper
decision making. Promotion might be expensive but offers concrete sales increment. Through the
employed salesperson, advertisements are done through the social media platform, particularly
Facebook, as one of the significant panel used in the ad. Moreover, the company has set forth
discount programs through the launching of the loyalty card, which is technologically
programmed to offer promotion in terms of percentage (Scott, 2017).
5.5Physical environment
On this segment and field, the physical environment is more conducive and favourable
for the general warehousing activities. The warehouses are thus designed in a different mode of

appearance in line with the product demand. This includes checking on the infrastructural
development, cold rooms to cater for the perishable products, where lighting must be of the
highest order to prevent rusting of the metallic products. The store designs are set to offer space
for loading and offloading of the luggage and the products (Wu, and Li, 2018).
5.6People
As indicated earlier, the company has surrounded itself with high skilled labourers. The
employees are employed permanently, although when the tasks are on high demand, casual
labourers are hired to reduce or clear the workload (Wu, and Li, 2018). Also, to retain the most
skilled and experienced permanent employees, the management makes sure there is effective
communication all through the organization to enhance the smooth running of the warehousing
services delivery.
6. Recommendation and conclusion
From the analysis of the marketing mix, the variables are seen to work effectively.
Although change is inevitable, the company must raise its technological advancement in the field
of promotion. This is due to the growing and expanding global market where the warehousing
services deliveries are increasing with the increment of the industrial revolution. Thus,
technology should be applied to the broader field of promotion since this dictates the level of
clients that the organization serves. Some of the technologies the company should adopt include
the use of learning machines and artificial intelligence. Additionally, installation of the backup
should be emphasized, more so the application of cloud computing and installation of the TCP/IP
models to prevent hacking and cybercrime cases.

7. References
Oflac, B. S., Dobrucalı, B., Yavas, T., & Escobar, M. G. (2015). Services marketing mix efforts
of a global services brand: The case of DHL Logistics. Procedia Economics and Finance, 23,
1079-1083.
Scott, P., (2017). The market makers: Creating mass markets for consumer durables in inter-
war Britain. Oxford University Press.
Weems Jr, R., & Chambers, J. (Eds.). (2017). Building the Black Metropolis: African American
Entrepreneurship in Chicago. University of Illinois Press.
Wu, Y. L. & Li, E. Y. (2018). The marketing mix, customer value, and customer loyalty in
social commerce: A stimulus-organism-response perspective. Internet Research, 28(1), 74-104.
Dockalikova, I. and Klozikova, J., 2014, November. MCDM Methods in Practice: Determining
the Significance of PESTEL Analysis Criteria. In European Conference on Management,
Leadership & Governance (p. 418). Academic Conferences International Limited.
Dessalles, R., D'Orsogna, M., & Chou, T. (2019). Power-law distributions of T-cell clone
abundances in a non-neutral birth-death-immigration model. Bulletin of the American Physical
Society.