Report on New Product/Service Development: Used Car and Two-Wheeler

This report presents a comprehensive marketing plan for a new venture focused on providing services for used cars and two-wheelers. It begins with an executive summary and table of contents, followed by an introduction and product review. The core of the report includes opportunity identification and situation analysis, market analysis encompassing market size, trends, and technological changes, and an examination of competition. A company overview details core competencies, revenue projections, and an expanded SWOT analysis. Concept generation, rationale for selection, and project evaluation including research methodology are discussed. The report then provides a summary of findings, development and strategy soundness evaluation, and a feasibility analysis that covers technical, market, and commercial viability. The report concludes with recommendations and references. The market analysis includes stakeholders, customer needs, and preferences. The marketing mix, including product, place, price, and promotion strategies, is outlined. The report utilizes primary and secondary research methodologies, including surveys and interviews, to assess market acceptance and trends within the Australian market. The report aims to provide a detailed analysis of the viability and potential success of the proposed venture.

New Product and Service Development

EXECUTIVE SUMMARY
Marketing plan specifies the manner in which company will attain its marketing objective
relating to new proposed product or service. Assessment of market and industry is necessary
before launching a new service; as an idea regarding success of same can be derived through
this procedure. Present report provides discussion relating to our new venture which is related
to used car and two- wheeler. A detail analysis of market and other main variants such as
customer, competition in market etc. have been presented in the report. Thus, if efficient
efforts are made, than success can be attained by the new proposed venture.

TABLE OF CONTENTS
Introduction................................................................................................................................6
Product Review..........................................................................................................................6
Opportunity Identification and Situation Analysis....................................................................7
Market Analysis.....................................................................................................................7
Competition............................................................................................................................8
Company overview................................................................................................................9
Core Competencies and current revenues..........................................................................9
Expanded swot.....................................................................................................................10
Concept Generation..................................................................................................................11
Rationale for selection..........................................................................................................11
Project Evaluation and Testing................................................................................................11
Research Methodology.........................................................................................................11
Summary of findings............................................................................................................12
Development and Strategy Soundness Evaluation...................................................................12
Validity of Underlying Assumptions...................................................................................12
Feasibility Analysis..............................................................................................................14
Particular..................................................................................................................................14
Description...............................................................................................................................14
Technical viability....................................................................................................................14
Market Viability.......................................................................................................................14
Commercial Viability...............................................................................................................14
Conclusion and Recommendations..........................................................................................14
References................................................................................................................................16

TABLE OF FIGURES
Figure 1: Share of market relating to different buyers...............................................................6

Introduction
A brilliant marketing plan is the one which is vital to theeconomic success of proposed
products and services. Present report revolves around the analysis of our new proposed
venture relating to used cars and two-wheelers service. A detailed analysis of value chain and
competition has been discussed in detail. Explanation relating to research methodology has
been provided; it has been accomplished with aim of ascertaining whether the product or
service will sustain in market or not. Lastly, the reason due to which the new proposed
venture will sustain in market or not has been provided in the conclusion.
Figure 1: Product lifecycle
Opportunity Identification and Situation Analysis
Market Analysis Market size- the market size of the proposed product will be huge focusing people
from all age groups. More the number of buyers more will be thesize of the market for
available this service. This size will also depend upon the prevalent trend. This will
include a total forecast of how many people purchase second-hand automobile in a
particular area (Queensland Government).

 Trends- An increase in car selling of 2% has been observed in car selling in
Australian market (Steve, 2016).
Figure 2: Share of market relating to different buyers.
(Source: Steve, 2016)
 Technological changes- European and North American design standards relating to
driving and new technologies to attain the aim of safer driving. However, Australia
represents 1% worldwide sales of motorcycle and thus, cannot direct the development
of future technology. In accordance with Zikmund and et.al. 2013, the main change in
technology which has been observed in vehicle industry is that potentials are made
more reliable on car and bike technology rather that own skills and awareness. Legal issues involved- Due to increase in significant no. of riders killed or injured
seriously in crashes as it involvesrisk-taking behaviour; government is making rigid
rules so that it can be reduced. Special license for recreating riding for juniors is also
required. Further fully licensed riding will automatically illegal riding activities. Market size-As per the opinion of Park and et.al. (2016), market size in terms of
volume is derived by ascertaining production volume and assessing the demand
trends. The revenue relating to vehicle industry in $174 billion on an annual basis
with a growth rate of -.2%; the figures relate to period between the year 2013 to 2018.
The industry is having a significant market size.

Competition Major competitors - Major competitions will be from the large-scale dealers who also
provide such types of assistance services to their customers. The major competition
will be from the Car City Company. This company is a renowned name in the areas of
Sydney and Melbourne. The company deals in providing all the services related to
buying and selling of second-hand automobiles.
 Competitive strategies- The competitive strategies to be used while launching the new
service in the Australian Market will be the strategy of cost focus strategy. This
strategy is expected to satisfy enough consumers and gain popularity (Lawton and
et.al. 2013).
 Market share- Market share will be primarily focused on youngsters living within a
specific area of 20 km. The main approach to be followed for gaining that market
share will be gaining the trust of prospective customers by planning an approach that
creates a stake in their minds. The salesperson will be trained for this purpose so that
they are able to attract the specified market share. Value Chain- value chain of the company closely related to the one provided by
Porter. According to the views of Laszlo and et.al. (2017), in order to deliver quality
service to the customers, it is important to maintain quality right from the source of
origin. Thus, a lot of attention will be placed on gathering information related to the
history of vehicles our client intends to buy. The work will be done with latest IT
technologies, trained staff and some professionals of the field.
 Stakeholders involved- the company will work on adirect marketing basis, in which
the customers will be contacted directly without any mediators. Thus, main
stakeholders will be the employees who will be in a face to face interaction with the
customers. Other major stakeholders will be the financial institutions and shareholders
that will contribute to the financial structure of the company. As per the opinion of
Johnson (2017), thegovernment will be in a way an indirect stakeholder, since any
business works under the legislation provided by the authorities.
 Groups that have an influence on customers- According to the opinion of Huo and
et.al., (2014), a major group that is likely to influence customers is the Government.
Another powerful weapon that affects the consumers’ choice is the rate of inflation
prevailing in the economy. The rate of interest on loans also affects the purchasing
power. The monetary policy of the government decided the amount of cash at the
discretion of public for the purchase of automobiles.

Customers
 Needs and Preference- There are various factors which affect customers need
and perception like the price and of the service. Price of substitute products
also has a stake on shaping their need and perception. The government can
affect the customers’ decision to a very large extent.
 Current primary and secondary target market- The size of the market will
include a number of prospective buyers of the service. Determination of
market size for this service will be entirely based upon market trends of the
industry for second-hand automobiles.
 Trends- The national vehicle fleet has also grown to 2.1% and the same
resulted in 18.4 million registered vehicles in the year 2016. All over it can be
said that increasing trend exists in vehicle market which means that people are
interested to change vehicle with change or innovation of new technology
(Federal Chamber of Automotive Industry).
Company overview
Core Competencies and current revenues
The core competency of the firm lays in its proposed plan. The idea of promoting this
type of service is one of its kinds and is expected to gain momentum in short time. It is very
little and no scope for competition in the near future. For, a rational man will always look
forward to such service before investing in the automobile. Below are the expected profits of
the firm for five years.
Year Expected Profit in $
2017 2,00,000
2018 2,00,000
2019 4,00,000
2020 4.50000
2021 2000000

 Marketing mix to be used- product, place, price and physical distribution- The main
service rendered by the company will be 360-degree assistance to the buyers of the
second-hand automobiles including the registrations, history of the vehicles, the
features and basic characteristics. It also includes insurance facilities. The main target
market will be the adults of age between 18-35. The pricing strategy will be
penetration pricing and the cost-plus pricing; in which the price will be kept lower in
order to penetrate into the market. The physical distribution used will be direct
selling.
 Positioning- Analysis of market plays a vital role in ascertaining whether we should
move further with regard to the new and proposed service or not. The plan, if
executed properly can bring great success to the firm. According to the views of
Sekaran and et.al. 2016, a significant variation exists between on-road requirements
and practical requirement for riding in a bush regarding a motorcycle.
Expanded swot
Strengths
 The major strength of the company
includes the types of service which is
to be provided. The company is ought
to deliver all the service a buyer can
consider before purchasing the
vehicle. The most important are to
deliver them with the details and
history of the vehicle they intend to
purchase. The exclusive service also
includes making the insurance facility
available to the clients.
Weakness
 Not enough experience of the target
market.
 Lack of competitive knowledge.

Opportunity
 New and innovative idea of 360-
degree assistance to the buyers of
used car and two-wheelers.
Threats
 The threatof major companies dealing
in used automobiles starting the same
service.
Strategies to maximize strengths and
opportunities Exercising total quality management
so that the quality of the service
remains at its best (Hair, 2015).
Heavy promotional activity will be
carried on so that the idea is
propaganda reaches to every
individual.
Strategies to mitigate weaknesses and
threats
 Gaining knowledge of the market
thoroughly so that no unforeseen
situations arise. Developing expertise
to mitigate the competitive reaction
from major players of used
automobiles (Goetsch and et.al.
2013).
Concept Generation
Two written concept
Concept Rational Primary target market,
features, benefits and
positioning
 Our company is
concentrated on a
new service idea;
which is relating to
used cars and two-
wheelers buyers..
 The reason for the
selection of this
service is that the
buyers of second-
hand vehicles are
very much concerned
about the vehicle they
intend to buy. They
always want to
receive the best value
 The service will be
provided to one and
all. Moreover, a
customer will be able
to use the service
prior to purchasing a
used vehicle from
anywhere in open
market in the

for their money.
Thus, keeping this
concern in mind, it is
expected that the
business will resolve
this concern of the
clients.
Australian market
 The following
services will be
provided by the new
proposed venture:
1. Approvals relating to
roadworthy.
2. Assistance relating to
registration and
transfers
3. Facility relating pick
and drop vehicles
without
transportation.
4. A 3600on the vehicle
in which the customer
is interested
 The companies that
deliver them the
vehicles may not
provide a genuine
feedback on the
vehicle. Thus they
may consider a third
party
recommendation. For
this, it is important to
develop trust among
their clients by
providing exceptional
services and
developing word of
mouth promotion
(Goetsch and et.al.,
2014).
 The rationale behind
choosing this strategy
is that if the cost of
service is kept low
then the firm will be
able to grab a major
market share in short
time. The main
concentration will be
on specific market
segments located near
the firm and keep the
low price in those
segments.
Project Evaluation and Testing
Research Methodology
The research methodology will include surveying primary and secondary sources. As
per the words of Cravens and et.al. (2014), the primary source will involve aquestionnaire

and personal interview form a sample of customers that are intending to buy second-hand
vehicles. The method of forming sample will be simple random sampling. The questionnaire
will include open-ended questions and some multiple choice questions which will be direct
towards assessing their acceptance of our business proposal. The interview will include
ascertaining whether or not the customers are satisfied with the present service being
provided by various companies at present. Secondary sources will include research on the
already published data on the market size and trends in the industry.
Summary of findings
It can be concluded from above assessment that in thepresent scenario, people want to
remain updated with the technology. Thus, the people are acapablesell off the vehicles when
anew model or advanced technology is introduced in the market. The new proposed venture
relating to used cars is a brilliant concept as people are worried regarding the testing of old
vehicles which they purchase from others. As the company will provide 3600which would
provide them details relating to engine check, valuation check, maintenance history and all
other required detail. Even special service relating to inspection is also provided after the
payment has been made by theclient.
Development and Strategy Soundness Evaluation
Validity of Underlying Assumptions
Perceptual Mapping
According to the words of Cantallopsand et.al., (2014), perceptual mapping provide
assistance to companies in understanding their behaviour i.e. assessment in detail of who,
why, where and what of their behaviour. If one entity understands the concept and ascertains
the reason behind unsatisfied customers than they can make changes for resolving the issues.
Application:
As per the words of Camisón and et.al., (2014), further another two important variants
are pre-purchasing experience and post purchasing experience; through comparing both of
the company will be able to ascertain to what extent they have succeeded in providing
satisfactory to the customers. Loyalty programs and apointof regular service are the two plans
which can be adopted by the company in order to keep the old customer and attract new
clients.