Cargotec Marketing Plan: Market Analysis and Implementation Strategy

This report presents a comprehensive marketing plan for Cargotec, a Finland-based company specializing in port and terminal goods handling. The plan includes a thorough market analysis using tools such as PESTLE, SWOT, BCG matrix, and GE model. It outlines SMART objectives for the company's growth, service quality, innovation, and market establishment. The report details the requirements for market research, value positioning strategy, and an implementation program covering product, pricing, placement, and promotion, including extended marketing mix elements. Budgeting, sales targeting, and monitoring and control mechanisms are also discussed. The plan addresses business-to-business issues and uses a SMART business model to define specific, measurable, achievable, relevant, and time-bound goals. The document concludes by acknowledging the limitations of the marketing plan and emphasizing the importance of continuous improvement.

CARGOTEC MARKETING PLAN 1
Marketing
Student’s name
Course
University
Date

2
The Executive Summary
The marketing strategy to be applied for the achievement of the organizational goals
and objectives must be analysed thoroughly by the marketing manager. Effective
marketing strategy commences with a thorough comprehension of the customers and
the product and how it satisfies their needs. The organization has to appreciate the role
of marketing in improving the sales of various goods and services an aspect that
enhances the continuous success of the business within a competitive business
environment. Cargotec has to utilize its marketing plan to achieve its desired goals and
objectives. A thorough analysis has been conducted through Pestle analysis, Swot
analysis, BCG matrix and GE model. SMART model has also been used to establish
the objectives of the marketing plan as far as the organizational goals and objectives
are concerned. The report entails the marketing plan for the company for three years
with an implementation plan.

3
Table of Contents
The background of the company............................................................................................................5
Cargotec Swot analysis...........................................................................................................................6
The five forces of Porter..........................................................................................................................7
Boston Consulting Group Model.............................................................................................................8
Figure 1.0- Boston Consulting Group Model.........................................................................................8
GE Matrix.................................................................................................................................................10
FIgure 2.0. GE MATRIX.........................................................................................................................10
Pestle Analysis........................................................................................................................................11
The size of the market............................................................................................................................12
Table 1.0..................................................................................................................................................12
Objectives of the marketing plan..........................................................................................................13
The requirements for market research.................................................................................................14
Value positioning strategy.........................................................................................................................14
Implementation program that relates to marketing objectives................................................................15
Product.....................................................................................................................................................15
Positioning...........................................................................................................................................15
Price..........................................................................................................................................................16
Placement................................................................................................................................................16
Promotion.................................................................................................................................................17
Advertisement.....................................................................................................................................17
Open air...............................................................................................................................................17
Extended marketing mix............................................................................................................................18
Physical evidence...................................................................................................................................18
People....................................................................................................................................................18
Budgeting and sales targeting...............................................................................................................18
Monitoring and control.............................................................................................................................19
Great business to business issues.......................................................................................................20
Figure 3.0 A model for innovation.........................................................................................................21
SMART BUSINESS MODEL.................................................................................................................22
Description of the SMART model.........................................................................................................23
Specific.................................................................................................................................................23

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Measurable..........................................................................................................................................23
Achievable...........................................................................................................................................23
Timely...................................................................................................................................................23
Limitations of the marketing plan..........................................................................................................24
Conclusion...............................................................................................................................................24
References..............................................................................................................................................25
Appendix1................................................................................................................................................28
Cargotec’s marketing plan for three years and implementation strategy........................................28
..................................................................................................................................................................28

5
The background of the company
The Finland based company has specialized in local distribution and handling of goods
at the ports and was established in 2005. The latest statistic for the study that was done
in 2018 revealed that the company had created employment approximated 12000
people in more than 100 countries. The company has specialized in providing unique
services at the ports and terminals through handling and local distribution of various
goods(Andrews and Shimp, 2017). The company uses several machines for the
operations, and they include the quay cranes, forklifts, terminal tractors and the yard
cranes. The company has committed itself in services that involve the management of
the goods at the port and their local transportation. These services entail inventory
management through loading, offloading and inspection. The company distributes the
goods both at the national and international level.
Market auditing
Various strategies should be formulated by the company to enhance a thorough
understanding of its market. This is important because it shall enhance an increase in
business activities resulting in a higher profit margin. The company has formulated
various marketing objectives to enhance the effective penetration of different
segments(Antoniadis, Stathopoulou and Trivellas, 2017).

6
Cargotec Swot analysis
This is a crucial tool for the analysis of the internal factors that influence business
operations. Swot analysis outlines the strength, weaknesses, opportunities and the
threats that influence the business operations in one way or the other.
Strength
The company has a skilled workforce comprising of the efficient marketing team that
apply the formulated market strategies that enhances effective market penetration and
the dominance of the organization in various market segments.
The company is experiencing financial constraints that may inhibit rapid investment
in various sectors of the economy.
Opportunity.
The company has various policies that regulate its operations. This entails the policies
in quality that would ensure that it meets its quality objectives.
Threats
Insufficient funds to meet all its operations might be a severe issue to the company

7
The five forces of Porter.
The company uses this as a useful tool for establishing factors that may improve its
competitiveness in the competitive business environment(Brown, Foroudi and
Hafeez,2018). These forces are
Rival competitors
The company has to identify its competitors who focus on outshining it in the market
and formulate successful strategies that would enable it to succeed.
The ability of the suppliers to bargain effectively
Cargotec has the mandate to ascertain the skills of the suppliers in bargaining because
the more their bargaining power, the more they have control over the price for the
products.
The power of the consumers in bargaining
The organization ensures that it agrees with the consumers on the final price to
enhance the long lasting business relationship.
Rate of market penetration by new entrants
The success of the company is determined by the rate of penetration of the new firms
into the market. New firms increase the competition in the market; hence, the company
should formulate effective strategies that would enhance its market dominance to
prevent other firms from penetrating specific markets it serves.
Threat posed by substitute services.
Cargotec has the responsibility of maintaining quality services to overcome the threat
posed by the alternative services and goods in the market that may have an impact in
its operations.

8
Boston Consulting Group Model
The company uses this model in evaluating its potentiality in the business environment.
This model classifies products of the company in various categories as per the growth
rate and the position each aspect competes in the market(Dalila, Foroudi and Hafeez,
2018). Boston Consulting model is very vital for the success of the company because it
enhances its understanding of the investment areas and areas that do not demand
investment.
The services of the company are categorized into four quadrants, as shown
below.
Figure 1.0- Boston Consulting Group Model.
Source:( Katsikeas et al., 2016)

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Dogs
This is a term that is used for various goods with less market share handled by the
company, which is an implication of a decrease in the distribution service by the
company. Re-investment of the organizational funds is essential to enhance the
profitability of such goods; as a result gains nothing for the company.
Question marks
These are goods handled by the company that have low shares in the market. They are
characterized with a high growth rate in the market. To keep up with the demand in the
market demand, they require more cash than they could generate. A considerable
amount of money needs to be invested in such goods to enhance their success in the
competitive business environment.
Cash cows
These are goods that are characterized by a high share of the market and experience
slow growth. The goods have a good cash flow significant for the development of other
businesses it operates.
Stars
This is a term that is used to represent goods which are handled by the company at the
terminal with tremendous growth and market share. These goods inhibit the regular flow
of cash because it requires a high rate of investment for congruous growth.

10
GE Matrix.
This model enables the company to set the priority for its investment among various
business units that exist. It is essential for the business because it enables it to
determine the business units require the allocation of more cash than the others( Eggert,
Ulaga and Drapier, 2015). This model incorporates the attractiveness of the industry
and the strength of the business unit as the key parameters for evaluation.
FIgure 2.0. GE MATRIX
Source( Eggert, Ulaga and Drapier, 2015).
For the formulation of effective strategies for successful service delivery, Cargotec
needs to ascertain the impact of its goods to the consumers. Cargotec has to identify
the position of various business units within the matrix to be in an excellent position to
determine the competitive strength of each product within the matrix. Identification of the
competitive strength is crucial because it enables the company to choose the products
to handle in various terminals to enhance profit maximization after delivering the
service. The products above the matrix are considered for investment as compared to
those below the matrix.

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Pestle Analysis
Political factors
The success of the company is dependent on the political stability of the nation. This
ensures that the company concentrates on business due to minimal disturbance. The
support from the government further enhances the success of the firm in various ways,
such as purchasing of the shares from the firm, among others. The tax waivered by the
government over the operations at the port and terminals is usually advantageous
because they do not affect the profit margin of the company. Incentives are offered to
the organization by the government to enhance the efficient flow of activities at the port
and terminals.
Economic factors
Cargotec can formulate the price of its various goods and services depending on the
economic status of the country. The economy of Finland is determined by the per capita
income of various individuals in the country. When the economy is thriving well,
Cargotec can formulate higher prices for its goods and services and vice-versa to
maintain a congruous profit margin.
Social factors
The population density determines the size of the market by the company. Many people
imply a higher market for the goods and service hence the success of the business due
to a higher profit margin. Finland has many people of different gender, social class, and
age among others who act as the potential market for company’s products.
Technological factors.
The existing technology greatly influences the marketing strategy of the company. The
technology used by the company should enhance valid transaction between the
company and consumers.
Legal factors

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Cargotec has the mandate to operate within the legal boundaries to enhance the
peaceful operations. It must adhere to all the business laws and regulations established
by the relevant bodies for success in the business framework.
The size of the market
Cargotec should forecast the size of its market through thorough market research by
conducting surveys on the potential consumers to ascertain the product needs (Bianchi
and Andrews, 2015). Forecasting of the demand in the market enhances effective
service delivery since the company shall handle the goods preferred by the
consumers(Rydén, Ringberg and Wilke, 2015). The marketing demand and forecast is
outlined in the table below
Table 1.0
Demand Forecast
An increase in the quantity of goods at the
terminals
Expected 30% appreciation in the number
of goods handled at the terminals by 2021.
Service delivery at low prices 25% appreciation by 2021.
Services of good quality The quality-oriented approach by the
consumers by 2021.