Marketing and Management Strategies for Gasman Business in Canada

This report outlines a comprehensive marketing and management plan for Gasman, a new business venture in Canada offering holistic vehicle-related services. It identifies the target market, including matures, baby boomers, Generation X, Y, and Z, focusing on their preferences for value-added services at affordable prices. The report details Gasman's differentiating factors, such as doorstep refueling and vehicle maintenance services, membership benefits, and towing services with added emergency support. A competitive analysis highlights Gasman's strengths in quality and pricing compared to competitors like Canadian Tire and Sure Fuel. Toronto is recommended as the ideal location due to lower direct competition and high market potential. The proposed competitive pricing strategy aims to attract a large customer base. The report also includes promotional strategies and a budget to enhance business effectiveness. Desklib provides access to this and other solved assignments for students.

Running head: MARKETING AND MANAGEMENT
Marketing and management
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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.

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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

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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

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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

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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

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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

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(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)

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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

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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

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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