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

4
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)

9
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.

11
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

12
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.

13
Objectives of the marketing plan
Facilitate organizational growth
Cargotec shall be able to invest, position its products and segment its markets aspects
that would result in its growth.
Quality service delivery by the company.
The company aims to formulate quality control measures that would enhance its
effective service delivery.
To promote innovation in the company.
It shall incorporate the modern technology in production, which shall result in creativity
and innovation hence the overall success of the company.
To establish the market for the goods.
Through segmentation strategies formulated by the organization, the market for is
ascertained, and this increases the distribution hence an increase in the profit margin of
the organization(Cross, Belich and Rudelius,2015).

14
The requirements for market research
The company needs various aspects of efficient marketing research. The company
should include an expert in the marketing team to conduct the research (Hirvonen and
Laukkanen, 2017). The organization should also have a schedule for marketing
research to enhance timely completion to enhance the continuity of the business. The
relevant team can use the questionnaires to collect relevant data from the sample
population and establish their findings as far as marketing is concerned. The
researchers can also use the media to collect views on the current marketing trend for
the product.
The consumers for the company’s goods and service
The company should be in an excellent position to identify the consumers for its various
goods and services to be in an excellent position to provide goods and services that suit
their needs. Most of the consumers of the company's products are the traders who use
water transport. They usually need to sort the goods at the port service that is offered by
Cargotec.
Value positioning strategy
The company has its name on the machines and vehicles on transit that describe
the value it creates for its products an aspect that attracts the relevant consumers.

15
Implementation program that relates to marketing objectives.
Product
The company handles goods at the port from various manufacturers through unique
services such as branding, sorting and packaging ready for distribution to the target
consumers.
Positioning
The cranes and the tractors used in the organization are painted with a yellow theme for
easy identification. The staff on duty also wears uniforms of the same color for easier
spotting in case of need for consultation. All the organization's assets are fitted with a
slogan meant to attract people to the service of the organization.

16
Price
Cargotec has invested heavily in marketing as long as the price is concerned.
The organization has used two different pricing strategies in different countries along
with consideration of some other factors of the area. These price marketing strategies
are; the premium pricing and the price penetration method(Honeycutt, Ford and Clarke,
2015). In some countries, the organization introduces its goods and services at
relatively low prices as a strategy to attract a vast number of customers. The staffs
henceforth develop a mutual relationship with their customers until they become
habitual to their services. Later in the course of operation, they add on the cost of their
services, the royal customer feels it having little effect accounting on the trust they have
with the organization, thus making profits. This strategy is popularly known as the
market penetration pricing method.
Placement
Placement provides solid evidence on the existence of the product and the brand; the
customers hence, may develop an interest later. When a customer sees the product
itself in the market rather than a graphical representation of the product in a newspaper,
the advert may be more influenced to buy. The number of times the customer is
exposed to the product hence predicts an equal volume of sales. Placement marketing
strategy is strong in boosting the number of sales the organization makes per unit time.
The fact the organization deals with sales of pieces of machinery which requires
demonstration on use hence exposing the potential customers on the use of the
machinery. The strategic placement marketing strategy used in the organization is the
use of the showroom. Most of the showrooms have products of the organization meant
to catch the attention of the potential customers. The showrooms also have sales
persons to demonstrate the use of the products.

17
Promotion
Promotion is generally the communication to the public on the product. According
to Chaffey and Ellis-Chadwick (2019) the promotion marketing strategy has several
elements used differently and enforced by different individuals of different capabilities
for effectiveness in the following ways:
Advertisement
Advertisement is likely one of the strongest means of promotion used in by the
organization. The advertisement refers to communication services on different media to
promote the product by creating awareness of the existence of the product (Armstrong
et al., 2018). Advertisement promotion element is used evidently in the use of the
newspapers, online blogs, billboards, televisions and radio The information conveyed in
these media is meant to create awareness to the public on the product and how
effective it is in serving its intended purpose.
Open air
The organization has invested heavily on open-air promotion strategy. The marketing
management practices roadshows and hire popular and influential artists, especially the
musicians and comedians, to entertain the present public. The management takes that
opportunity to convince the public on the effectiveness of the product and the fall for it
accounting the popularity of the brand ambassador.

18
Extended marketing mix
Physical evidence
The management strives to provide goods and services that last for long to serve as
evidence to the public on the effectiveness of their products and services in the market.
The marketing management appreciates the fact that people develop trust in a given
product on the ground of evaluating the durability of the previously sold out pieces.
People
The management use people as the advertisement tool for their product. Some are
used knowingly and are entitled to pay while others are used unknowingly and are less
conscious of it since it happens as they refer other for the product on account of either
low cost or durability. The marketing management must, however, make sure the
persons entitled to the marketing activities have the necessary competence and handle
the customers in the right manner to create satisfaction.
Budgeting and sales targeting
In three years, the organizations marketing management is planning to increase
the volume of sales by six times the volume of sales recorded in the last trade period.
The budget allocated for all the marketing strategies the marketing department may
prefer to employ limited to 10% the total profit realized at the end of the previous trade
period. The process is supposed to continue for six years until almost every existing
being is aware of the product of the organization.

19
Monitoring and control
Every activity of a business that is either poorly monitored or controlled is a subject to
failure. The activity may lead to losses of the organization resources where’s it was
expected to make a profit. Control is the responsibility of the management, and it should
be done in a systematic way to ensure the people mandated the marketing
responsibility performs it to the best to maximize the resource utilization in the project
(Rademaker and Royne, 2018). The management has to pay close attention to how the
employees use the available recourses to ensure little wastage. They also have to be
conscious of the time factor to ensure no much time is lost in the business activity,
doing less productive activities.

20
Great business to business issues.
Comparison of prices
This enables the customers to decide on the goods that are affordable and consume
them accordingly. This affects the pricing strategy of the organization.
Management of quality.
Many businesses today focus on the provision of better quality services to enhance
effective competition in the market. As a result, Cargotec has formulated various
measures to control the quality of goods and services delivered by the company.
Use of competent technology
Most of the organizations have incorporated e-commerce in their business to enhance
active transactions between the company and the consumers(Tan and Sousa, 2015).
Cargotec has formulated strategies to ensure effective utilization of the technology in its
business transactions.
Sustainable supply chain management system.
Cargotec enhances sustainability in supply chain management by ensuring that its
operations do not have an adverse effect on the environment(Jensen and Rebecka,
2017). This has been achieved through green purchasing where the suppliers collect
the materials that can be recycled and channel them back to the producers for recycling
an aspect that enhances environmental protection.

21
Innovation
Cargotec focuses on achieving innovation through user research and development to
identify the market gaps that need to be filled. The organization can also meet its
innovation goals through an external innovation system(Ratten, 2016). The internal
culture towards innovation by the employees is so crucial for the success of the
company.
Figure 3.0 A model for innovation
Source(Bianchi and Mathews,2016)

22
SMART BUSINESS MODEL
This model has been used as a useful tool by the company to address various issues
that have been incorporated into the marketing plan(Kumar, Choi and Greene, 2017).
These issues act as the concrete solution for the desire of the company to succeed
within the competitive environment.

23
Description of the SMART model.
Specific
Cargotec is focusing on increasing its investment in various sectors of the economy to
generate additional revenue. The company has also focused on marketing
segmentation to ensure that it supplies various products in different segments to
increase profitability(Järvinen and Karjaluoto, 2015).The company is also focusing on
being the price leader in the market by gaining a total of the price for various goods and
services in the market through effective strategies.
Measurable
The company has formulated a three-year marketing plan after which it is confident that
it would have fulfilled all its desires. The company has a budget and sales targeting for
its goods and services as a measurable aspect (Röcker, Homburg, & Vomberg, 2016).
Cargotec has set quality goals for the goods it handles through effective measures of
quality control.
Achievable
Cargotec can achieve all its marketing plan derivatives through its effective marketing
strategies. The company needs a competent workforce to enhance the achievement of
its strategic goals and objectives(Lidstone and MacLennan,2017).
Realistic
Cargotec is very sure that it shall meet all its objectives within the marketing plan
because all its aspects, such as the value positioning, market segmentation, among
others, can be achieved through effective strategies.
Timely
The marketing plan for the company has a specific duration after which all the
objectives would have been achieved (Payne and Frow, 2017).

24
Limitations of the marketing plan
Inflation
This may have an adverse impact on the investment made by the company in various
sectors of the economy due to less return on investment. This has an impact on the
profit margin of the company since it results in low purchasing power by the
consumers(Lantos, 2015).
Existence of black market
This aspect affects the pricing of various goods and services because other retailers
supply the same goods at a relatively low price, especially after they smuggle them
evading some costs such as customs duties.
Stiff competition
This affects the achievement of the sales target by the company after a specific period.
Conclusion
Cargotec can succeed in business so long as it adheres to its formulated marketing
plan. This is because the marketing pan acts as guide for the future direction of the
company. The company has the potential to succeed if all the aspects discussed within
the report shall be adhered to accordingly and effectively.

25
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26
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28
Appendix1.
Cargotec’s marketing plan for three years and implementation strategy.
2019 220 2021 Tactical plan for
implementation
Investment
The company has various
investments in various
locations of the country to
increase its capital base to
enhance the expansion of its
operations. The company
shall use $100000 for
investment.
Market
segmentation
The company shall
use various
segmentation
strategies to
enhance a broad
market for its
services. This shall
improve effective
service delivery for
specific products in
each segment.
.
Budgeting and
sales targeting
To increase the
volume of sales by
six times the
amount of
transactions
recorded in the
last trade period
Regular review of the
policy to ensure
consistent
implementation of the
system
Competent workforce
The company has a skilled
marketing team, effective
marketing of its services.
Value positioning
The organization
shall create a
unique value for its
services
E-commerce
The company shall
incorporate an
online system for
business
transactions with
the clients.
Training and
development of the
new employees
within the
organization
Effective pricing Quality control Specialization Market research

29
The company has an effective
pricing strategy to enhance
effective competition within its
business environment.
The company shall
have fully adopted
quality control
measures to
enhance efficient
service delivery to
the clients.
The company shall
specialize in the
handling of
specific types of
goods based on
the performance in
the market.
The company shall
conduct thorough
market research to
establish the
possibility of
expanding its
services to an
international level.