Marketing and Management

The aim of this report is to discuss about the new business venture to be initiated in Canada. In this report, the target market, segments, promotional and pricing strategies are being identified. In addition, the strategies for targeting the identified customer segments are also being discussed in this report.

Running head: MARKETING AND MANAGEMENT
Marketing and management
Name of the student
Name of the university
Author note

1MARKETING AND MANAGEMENT
Executive summary
The aim of this report is to discuss about the new business venture to be initiated in Canada. In this report, the target market, segments,
promotional and pricing strategies are being identified. In addition, the strategies for targeting the identified customer segments are
also being discussed in this report. The location for the business operation for Gasman is also being identified. It is concluded in this
report that Gasman will have lower set of direct competition in the market of Toronto. In addition, the promotional strategy and
budget discussed in this report will further help in enhancing the business effectiveness in the long term.

2MARKETING AND MANAGEMENT
Table of Contents
Introduction..................................................................................................................................................................................................3
Differentiating factors of Gasman...............................................................................................................................................................3
Venture viability..........................................................................................................................................................................................4
Identification of the supply chain partners..................................................................................................................................................5
Market Opportunity and Target Market Analysis.......................................................................................................................................5
Competitor analysis.....................................................................................................................................................................................9
Identification of the location......................................................................................................................................................................10
Pricing Strategy and Tactics......................................................................................................................................................................10
Identification of the promotional strategy.................................................................................................................................................13
Promotional Strategy and Budget..............................................................................................................................................................13
Conclusion.................................................................................................................................................................................................17
Reference...................................................................................................................................................................................................18
Appendix....................................................................................................................................................................................................21

3MARKETING AND MANAGEMENT

4MARKETING AND MANAGEMENT
Introduction
In the current business scenario, innovative business concepts are important to gain competitive advantages in the market. In
addition, it should also be noted that current state of affairs are highly competitive in nature and thus providing convenience to the
customers will be determining factor for the new businesses. This is due to the reason that customers will prefer the service where
their convenience will be more (Casadesus-Masanell & Zhu, 2013). Gasman is one such proposed innovative business concept, which
will provide holistic vehicle related services at the doorstep of the customers. This is proposed as an innovative solution due to the
reason that as of now, there are number of vehicle maintenance services present in the market. However, most of these services are not
providing added services such as towing and fueling services at the doorsteps of the customers (Pisanto, Pironti & Rieple, 2015). On
the other hand, Gasman will provide one stop solutions for the customers related to their vehicles along with providing them loyalty
benefits in the form of memberships.
This report will discuss about the business viability of the proposed business concept of Gasman. In doing so, this report will
discuss about the revenue stream and key differentiating factors of them. In addition, in this report, the target market for them
including the location, promotion and pricing analysis will also be done based on the budgetary considerations. Competitor analysis
will be done to review the competitive scenario for Gasman.
Differentiating factors of Gasman

5MARKETING AND MANAGEMENT
The first revenue stream for Gasman is refueling services. Even though there are number of doorstep fuelling services
available in the Canadian market but these services are only offering specific services and not any other added services (Banker,
Mashruwala & Tripathy, 2014). In this case, the differentiating factor for Gasman will be the vehicle maintenance service provided to
the customers. In addition, the minimal time to be taken in delivering the fuel to the customers will also be the key differentiating
factor. Another major revenue stream for Gasman will be the membership facilities to the loyal customers. In this case, the customers
will buy long term memberships for added services (Teeratansirikool et al., 2013). In this case, the key differentiating factor will be
the facilities to be given to the customers. Services including tire changes, repair and complementary 5 point inspections will be
provided to the customers. These bundled services are not being offered by any other providers in the Canadian market. The last
revenue stream will be the towing service. Majority of the towing services are transporting the vehicle to the service center but
Gasman will also offer emergency fuel checkups, tire repairs and changes as added services. These factors will differentiate their
services over others (Farhana & Bimenyimana, 2015).
Venture viability
This venture will be viable due to the reason that in the Canadian market, holistic vehicle service providers at the doorsteps are
not common and existing providers are only offering specific type of services. Thus, Gasman will have largely untapped market in
Canada. It should also be noted that with the increase in the corporate professionals in the market, customers are having less time and
they need doorstep services for the maintenance of their vehicles. Thus, Gasman will have high level of market potentiality in the

6MARKETING AND MANAGEMENT
Canadian market (Lechner & Gudmundsson, 2014). In the later stage, the venture can be increased in different other locations based
on the rate of success in the current locations. It is estimated that the annual revenue for Gasman will be approximately US$ 130
million.
Identification of the supply chain partners
There are number of supply chain partners will be added in the supply chain system of Gasman. The major partner for them
will be the service centers, with whom they will have agreements and will tow the vehicles for further servicing (Seuring, 2013). The
spare parts manufacturers will be also considered as supplier as they will supply the parts to Gasman for servicing the vehicles of the
customers (Appendix: 1). Fuel stations will also be termed as supply chain partners due to the reason that Gasman will transport their
fuels to the customers.
Market Opportunity and Target Market Analysis
Value Source
Population 305 million Canada Census
Working Population 50.5 % Dept of Labor
Matures 15 % Assumed
Baby Boomers 50 % Assumed

7MARKETING AND MANAGEMENT
Generation X 20 % Assumed
Generation Y 30 % Assumed
Generation Z 25 % Assumed
Market size in Revenue $ 115.5 million
The table above indicates the market size of Gasman in terms of estimated revenue and the number of consumers based on their
characteristics. Moreover, as indicated the target consumer segments for Gasman for all its services such as matures, baby boomers,
generation X, generation Y and Generation Z belonging to medium income group. These target consumers will be selected based on
the fact that they prefer low price and value added goods (Tsai, Hu & Lu, 2015). The strategies set will be ideal for market penetration
in comparison to its direct competitor. This will be through offering additional value added service offering convenience to these
identified target consumers in case they do not have time to go out. They attain home delivery services that is time saving for them
(Vidal et al., 2016).
The local residents will be the regulate target consumer base for Gasman. Targeting this consumer segment will facilitate in
maintaining a healthy and consisted revenue base for success of its revenue streams or services. Moreover, the mature and baby
boomer target consumer segment of Gasman will include the tow truck companies those desire for superior quality speedy service

8MARKETING AND MANAGEMENT
(Xu, Blankson & Prybutok, 2017). Targeting this consumer segment can ensure the company to attain an increased market share
within selected location of Canada.
Figure 1: Canadian Population Demographics
(Source: Xu, Blankson & Prybutok, 2017)

9MARKETING AND MANAGEMENT
From analyzing the graph above it is gathered that the Canadian consumers are segmented into matures baby boomers, generation X,
generation Y and Generation Z. Moreover, figure 2 indicated below explain the demographics of target consumer spending in Canada
over the years. It has been gathered that the purchasing power of the consumers is increasing which is advantageous for the business
growth of Gasman (Wijaya et al., 2014).
Figure 2: Canadian Consumer Spending Demographics
(Source: Xu, Blankson & Prybutok, 2017)
Competitor analysis

10MARKETING AND MANAGEMENT
The major competitors for Gasman will be Canadian Tire, Element Fleet, Crown City Tire, Bowman fuels and Sure Fuel.
Majority of these competitors are offering specific services and thus Gasman will compete with them at different service levels. For
instance, Gasman will compete with Canadian Tire in offering the tire repairing services and with Sure Fuel in home delivery of fuel
services (Bienkowski et al., 2014). Some of the indirect competitors for them will be the brick and mortar service centers. It is
identified that in terms of tire servicing market, Canadian Tire is the market leader with being in the market for large number of times.
On the other hand, Sure Fuel is the market leader in the fuel delivery services.
Name Quality Pricing Key competitive
features
Trends
Canadian Tire 4 4 3 3
Crown city Tire 4 4 4 3
Element Fleet 3 3 2 2
Bowman fuels 3 2 2 1
Sure Fuel 3 3 3 2
Gasman 3 2 3 2

11MARKETING AND MANAGEMENT
Thus, from the above competitive analysis, it is identified that Gasman will be well ahead of its competitors in terms of quality
and price. This will enable them to offer their services with higher quality standards and lower price points. In the above chart, the
ranking is being given out of 5 and it is shown that Gasman will be ahead of some competitors in terms of key competitive features
also.
Identification of the location
It is recommended that Toronto will be the ideal location for Gasman in Canada. This is due to the reason that direct
competition will be low for them in Toronto and indirect competition will be more. It is identified that majority of the competitors for
Gasman will be brick and mortar stores and mobile apps based services (Montaser & Moselhi, 2014). This market scenario will be
beneficial for Gasman in gaining competitive advantages. In addition, it is also identified that Toronto is the largest city in Canada in
terms of population. Thus, customer and vehicular traffic will be more and Gasman will also have larger market potentiality.
Pricing Strategy and Tactics
The pricing strategy that is considered to be suitable to set by the Gasman is competitive pricing strategy. This strategy can facilitate
the new business to attain a huge consumer base through offering its services and products at an affordable rate in comparison to its
major business rivals (Andrews & Shimp, 2017). The price of the services is deemed to be justified as it can provide tough
competition to its direct competitor through manipulating consumer decision making. Moreover, the target consumers prefer attaining

Underpriced
Real Bargain
Cheap Goods
Ideal for
Penetration
Average Overprice
Premiere Offering
High
Medium
Low
High Medium Low
Value of Offering
Price verses Competition
12MARKETING AND MANAGEMENT
increased value for services at affordable prices (Bellini et al., 2017). In such situation setting low processes in the industry can attain
competitive advantage for Gasman.

13MARKETING AND MANAGEMENT
Figure 3: Price quality and market share grid of Gasman
(Source: Authors Creation)
Focused on price quality and market share grid developed above the estimated prices for all the revenue stream or services offered by
Gasman are explained under that can analyze relative position of the company and justification of pricing strategy selected:
 Gas delivery services will offer fuel to target consumers in case of emergency with charging price of $ 5.80 per unit. This price
is set low and ideal for market penetration in comparison to its direct competitor along with offering additional value added
service offering convenience to consumers in case they do not have time to go out (David, David & David, 2017). They attain
home delivery services that is time saving for them.
 Mobile vehicle maintenance truck services through consumer maintaining partnerships that will be priced by Gasman an
annual membership charge of $ 390 for all its target consumers. The price set is lower than its major rival to attract huge
consumer base and of attaining high market share (Steenkamp 2017).
 Tow truck services of Gasman will set a price of $ 56 for each of the associated services such as emergency fuel, tire changes
and repairs. Moreover, offering such services at this price will be competitive in comparison to its direct rival that is providing
premiere offering as Gasman will offer towing to nearest mechanic shops and even to consumers at home.

14MARKETING AND MANAGEMENT
Identification of the promotional strategy
Promotional strategy of Gasman will be based on both traditional and newer mediums. In terms of the traditional mediums,
Gasman will involve print and television media due to the reason that these are having the most market penetration. The promotional
content will be more informative and will focus on communicating the advantages to be gained by the customers from them. In terms
of the newer promotional mediums, social media marketing will be extensively used (Gangwas, Kumar & Rao, 2013). This will help
in determining the needs and expectation of the customers and can offer the service accordingly. Among the social media platforms,
Facebook will be extensively used due to the fact that it is one of the commonly used mediums in Canada. Thus the market penetration
for Gasman will be higher. In addition, the Twitter will also be used to initiate the more personalized communication process.
Promotional Strategy and Budget
Budget
Catego
ries
Tota
l
Bud
get
Yea
r To
Date
Spe
nd
Budg
et
Rema
ining
%
Rema
ining
Jan Feb Mar Apr May Jun Jul Aug

15MARKETING AND MANAGEMENT
Radio
stations
$85,
000
$61,
000
$24,0
00
28% $15,
000
$15,
000
$15,
000
$15,
000
Public
Relatio
ns
$35,
500
$20,
820
$14,6
80
41% $50
0
$20,
000
$100 $50 $20 $25
Adverti
sing
(print)
$12,
000
$1,1
40
$10,8
60
91% $30
0
$600 $200 $40
Adverti
sing
(online
)
$60,
000
$55,
000
$5,00
0
8% $5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
$5,0
00
Conten
t
Produc
tion
$36,
000
$34,
000
$2,00
0
6% $50
0
$30,
000
$500 $1,5
00
$1,0
00
Events $180 $61, $118, 66% $20, $40, $1,0

16MARKETING AND MANAGEMENT
&
Sponso
rships
,000 500 500 000 000 00
Instagr
am
$240
,000
$240
,000
$0 0% $20,
000
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000
$20,
000
Twitter $36,
000
$14,
300
$21,7
00
60% $12,
000
$2,0
00
$300
Facebo
ok
$15,
000
$3,2
60
$11,7
40
78% $50 $340 $2,0
00
$400 $200 $50 $200
Reid
Signs
$25,
000
$26,
000
-
$1,00
0
-4% $0 $10,
000
$5,0
00
$1,0
00
$10,
000
Totals $724
,500
$517
,020
$207,
480
29% $73,
350
$140
,340
$49,
600
$42,
200
$25,
550
$26,
570
$26,
240
$36,
025
Cumulative Spend $73,
350
$213
,690
$263
,290
$305
,490
$331
,040
$357
,610
$383
,850
$419
,875

17MARKETING AND MANAGEMENT
The table above explained the estimated budget set for promoting the services offered by Gasman to all its identified target
consumers. Through considering the marketing expenditure it is anticipated that the company will attain a steady growth in its
profitability over the upcoming years of its business operation in Canada. In addition, the graph below explains the anticipated
budgeted and actual speeding that can be incurred by Gasman for making all its revenue streams successful in the new market. The
estimated budget has been prepared taking into consideration that these marketing expenses made by Gasman can generate steady cash
flow for the company to support its business operations.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$85,000
$35,500
$12,000
$60,000
$36,000
$180,000
$240,000
$36,000
$15,000$25,000
Actual Spend vs Budget
Figure 5: Marketing Budget for Gasman

18MARKETING AND MANAGEMENT
(Source: Authors Creation)

19MARKETING AND MANAGEMENT
Conclusion
This report concludes that considering the market and business scenario of Gasman, it
can be concluded that the proposed business venture will be viable. This report identified that
Toronto will be the ideal location for business of Gasman. In addition, this report also identified
the target market segments for Gasman along with the calculation of revenue from the targeted
customers. It is also concluded that the promotional and pricing strategies discussed in this report
will be beneficial for Gasman in enhancing their market potentiality.

20MARKETING AND MANAGEMENT
Reference
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education, 32(1), 65-76.
Bellini, E., Dell'Era, C., Frattini, F., & Verganti, R. (2017). Design‐driven innovation in
retailing: An empirical examination of new services in car dealership. Creativity and
Innovation Management, 26(1), 91-107.
Bienkowski, M., Feldmann, A., Grassler, J., Schaffrath, G. and Schmid, S., 2014. The wide-area
virtual service migration problem: A competitive analysis approach. IEEE/ACM
Transactions on Networking (ToN), 22(1), pp.165-178.
Casadesus‐Masanell, R., & Zhu, F. (2013). Business model innovation and competitive
imitation: The case of sponsor‐based business models. Strategic management
journal, 34(4), 464-482.
D. Banker, R., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision, 52(5), 872-896.
David, M. E., David, F. R., & David, F. R. (2017). The quantitative strategic planning matrix: a
new marketing tool. Journal of Strategic Marketing, 25(4), 342-352.
Farhana, M., & Bimenyimana, E. (2015). Design driven innovation as a differentiation strategy:
In the context of automotive industry. Journal of technology management &
innovation, 10(2), 24-38.

21MARKETING AND MANAGEMENT
Gangwar, M., Kumar, N., & Rao, R. C. (2013). Consumer stockpiling and competitive
promotional strategies. Marketing Science, 33(1), 94-113.
Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small
firm performance. International Small Business Journal, 32(1), 36-60.
Montaser, A., & Moselhi, O. (2014). RFID indoor location identification for construction
projects. Automation in Construction, 39, 167-179.
Pisano, P., Pironti, M., & Rieple, A. (2015). Identify innovative business models: can innovative
business models enable players to react to ongoing or unpredictable
trends?. Entrepreneurship Research Journal, 5(3), 181-199.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), 1513-1520.
Steenkamp, J.B., 2017. Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Teeratansirikool, L., Siengthai, S., Badir, Y., & Charoenngam, C. (2013). Competitive strategies
and firm performance: the mediating role of performance measurement. International
Journal of Productivity and Performance Management, 62(2), 168-184.
Tsai, C. F., Hu, Y. H., & Lu, Y. H. (2015). Customer segmentation issues and strategies for an
automobile dealership with two clustering techniques. Expert Systems, 32(1), 65-76.
Vidal, L., Antúnez, L., Giménez, A., Varela, P., Deliza, R., & Ares, G. (2016). Can consumer
segmentation in projective mapping contribute to a better understanding of consumer
perception?. Food quality and preference, 47, 64-72.

22MARKETING AND MANAGEMENT
Wijaya, T. K., Ganu, T., Chakraborty, D., Aberer, K., & Seetharam, D. P. (2014, April).
Consumer segmentation and knowledge extraction from smart meter and survey data.
In Proceedings of the 2014 SIAM International Conference on Data Mining (pp. 226-
234). Society for Industrial and Applied Mathematics, 32(1), 65-76.
Xu, L., Blankson, C., & Prybutok, V. (2017). Relative contributions of product quality and
service quality in the automobile industry. Quality Management Journal, 24(1), 21-36.

23MARKETING AND MANAGEMENT
Appendix
Interview for the competitors
Name of the company: Sure Fuel
Address: Calgary, Canada
PH number: 833-799-7873
1. What are the major competitive factors for your organization?
2. Are this organization is more price centered or quality centered?
3. Are you thinking of further market development or market penetration?
4. Do you think product diversification is important for grabbing the attention of international
customers?

24MARKETING AND MANAGEMENT
Interview for the competitors
Name of the company: Bowman Fuels
Address: Barrie, Canada
PH number: [phone]
1. What are the major competitive factors for your organization?
2. Are this organization is more price centered or quality centered?
3. Are you thinking of further market development or market penetration?
4. Do you think product diversification is important for grabbing the attention of international
customers?