COMSATS Institute of Information Technology, Islamabad

Project Name: Submitted to: Submitted by:

Product Rejuvenation
Aziza Munir Abdul Hameed Mirza (FA12-MBA-065) Junaid Hayat (FA12-MBA-056) Sahar Parvez (FA12-MBA-035) Sana Latif (FA12-MBA-041)

Product Name: Product Logo:

Car wrap

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ACKNOWLEDGEMENTS In the name of ALLAH, the Most Beneficent, the Most Merciful
We are grateful to ALLAH for His guidance and his help in completing this project. It gives us great pleasure and satisfaction for the successful completion of this project. Every successful piece of work has many invisible helping hands with their invaluable support and inspiration. For the completion of our project report many person directly or indirectly assisted us. We would like to express my sincere thanks and deep gratitude to our esteemed guide Miss Aziza Munir, for her kind initiative guidance and valuable suggestion without which the completion of this would not have been possible. We hope this report will be special interest to the Marketing students, who are on look for such real life situation beyond their classroom studies.

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Dedicated to
Our loving parents and family, their care and affection has always been with us and to our friends who have been a source of comfort for us.

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Executive Summary
As our final project of Marketing we have chosen car wrap as our final project. This project is intended to educate every one that how car wrap could be an effective tool to advertise and promote product which would be less expensive as compared to Bill boards or T.V advertisements. This project has covered different marketing techniques which should be implemented on a certain product in terms of PEST Analysis, SWOT Analysis and also the Break Even Analysis to completely ensure that where this product will stand in the market and how it expected to grow when it will be launched in the market. We have also covered that how this product will be rejuvenated and its implication in the market by mentioning the figures and the features of the product such as it doesnt have side effects on the body of the car. It has easy on and off capability, The American Trucking Association (ATA) Survey etc. We have tried our best to research everything and we have tried our level best to coat figures which are from a reliable source and few things are based on our findings after the research but we have coated some figures and we have given the references and we have tried to cover all the aspects of the marketing

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Contents
Chapter 1....................................................................................................................................................... 7 Introduction .................................................................................................................................................. 7 Car Wrap at a Glance: ............................................................................................................................... 7 Objective of this report: ............................................................................................................................ 7 Logo of the Product: ................................................................................................................................. 7 Chapter 2....................................................................................................................................................... 8 Product Category its Target Marketing and Market Segmentation and Positioning ................................... 8 Product Category: ..................................................................................................................................... 8 Market Segmentation: .............................................................................................................................. 8 Target Market: .......................................................................................................................................... 9 Product Positioning: ................................................................................................................................ 10 Chapter 3..................................................................................................................................................... 11 SWOT Analysis............................................................................................................................................. 11 Strengths: ................................................................................................................................................ 11 Weaknesses: ........................................................................................................................................... 12 Opportunities: ......................................................................................................................................... 12 Threats: ................................................................................................................................................... 12 Chapter 4..................................................................................................................................................... 13 Using the Tactical Marketing Tools ............................................................................................................. 13 Product:................................................................................................................................................... 13 Price: ....................................................................................................................................................... 13 Unit Cost: ................................................................................................................................................ 14 Mark Up Price: ........................................................................................................................................ 14 Break Even Analysis: ............................................................................................................................... 14 Place: ....................................................................................................................................................... 15 Promotion: .............................................................................................................................................. 16 Chapter 5..................................................................................................................................................... 17 PEST Analysis ............................................................................................................................................... 17 Political:................................................................................................................................................... 17 Economical: ............................................................................................................................................. 17 Social: ...................................................................................................................................................... 18

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Technological: ......................................................................................................................................... 18 Chapter 6..................................................................................................................................................... 19 Conclusion ................................................................................................................................................... 19 Chapter 7:.................................................................................................................................................... 20 Bibliography ................................................................................................................................................ 20

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Chapter 1 Introduction
Car Wrap at a Glance:
Car wraps have emerged as an affordable and effective alternative to traditional advertising. Instead of paying money for a 30-second television commercial or a one-month highway billboard advertisement, you will have a solution that lasts for years with a minimum cost. Vehicle advertising will give you the opportunity to turn your car, van, or truck into a moving billboard for your business. With an eye-catching design and detailed messaging, a vehicle wrap gives brand exposure to thousands of potential customers, whether youre driving on the highway or parking in areas with heavy foot traffic. In the old days, if you wanted your car to be a different color your only option was to repaint your car. This usually took weeks and sometimes months at a regular body shop, and it would ruin the resale value of your vehicle. Luckily there is a new way to change the color of your car without having to deal with any of those drawbacks. Using large sheets of 3-4 mills thick vinyl, we can wrap your entire vehicle in one of the many different colors we offer. Wrapping a car is the practice of completely or partially covering a vehicle with vinyl. Recently car wraps have been used by the automotive enthusiast to change the color, shape, surface and finish of their vehicles.

Objective of this report:

The main purpose of the report is to find what strategies we will use to market our product, Car Wrap, in Pakistan; the positive and negative aspects of those strategies. The report discusses the process of using market segmentation, target marketing, SWOT analysis, the product, pricing, promotional and distribution strategies, PEST analysis and a competitive analysis.

Logo of the Product:

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Chapter 2 Product Category its Target Marketing and Market Segmentation and Positioning
This chapter describes the category of the selected product. The chapter is divided into four sections. Section 1 states under which category our product falls. Section 2 describes how we will differentiate the population and categorizes them into different segments. Section 3 analyzes which segment we will target and why we target that particular segment. Finally section 4 describes the process through which we will use positioning method to capture a place in the buyers mind

Product Category:
Car Wrap falls under the category of automobile product as a design for attractiveness.

Market Segmentation:
As our product is new in Pakistan, we will go for traditional mass marketing. We will come with one offer for those who have Cars. We will do segmentation according to geographical areas. For this purpose the population is segmented into two parts which are urban, sub urban area consumers

Urban Rich

Urban and Sub Urban Upper Middle and Middle Class

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We further differentiate the geographical segments according to Socio Economic Cluster (SEC) i.e. Occupation and Income. The Table overleaf shows the Socio Economic Clusters we will use.

Socio Economic Clusters A B C D E

Income

High Income

Upper Middle Level Income

Midlevel Income

Lower Middle Income

Low Income

Professional Occupation and Technical

Managers and Officials

Supervisors and clerical

Homemakers and farmers

Retired

The Social Economic Cluster divides the population in five segments which starts from A to E, where A categorizes the highly Occupation and high income earners holders, and consecutively in downward order E categorizes the opposite.

Target Market:
We know that the urban and sub urban middle class people are the second largest part of Pakistan population. A research reveals that urban rich people are more conscious about brands and they use to buy expensive and imported products. However urban and sub urban upper middle and middle class people tend to buy the products which have quality and are affordable. Car Wrap is not a highly expensive but an affordable product. That is why we will target urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. By segmenting of customer according to SEC our target category will be A, B and C, because they are financially good and they can afford to pay money for Car wrap.

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Product Positioning:
Car Wrap will obtain a good position in the buyers mind because we will provide better quality Vinyl sheets and we will present the product in a different way than the competitors do. We will offer quality product in the market at an affordable price, which ultimately helps to position the product in the buyers mind as the best quality Car Wrapping. The American Trucking Association (ATA) reported 91% of people surveyed do notice vehicle graphics. The Traffic Audit Bureau for Media Measurement demonstrated that a vehicle can generate between 30 70 impressions daily. So if we apply these surveys in Pakistan they will not be exactly match due to less consumption of cars in Pakistan but will give an idea to position our product, Car Wrap in Pakistan. As our product has Competitors like Stickers and paint. In case of stickers we cannot give our buyers better prices but in case of Paint we can, because we will provide our customers with better quality by giving them options to choose Vinyl sheet according to their need as we have many types like 3d vinyl, Matte black vinyl etc and we are providing them in different colors as well. Following is a Positioning map which shows the comparison of Car Wrap with its competitors. Positioning Map HIGH Paint

PRICE

Stickers

Car Wrap

LOW

LOW

QUALITY

HIGH

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Chapter 3 SWOT Analysis

The objective of the SWOT is to find and identify the Internal and External factors which are favorable and unfavorable to achieve objectives and to make market and corporate strategies. The objective of SWOT is to improve Weaknesses, combat Threats and capitalize on Strengths and Opportunities. It provides ideas for establishing objectives and actions. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

Internal

External

Strength Weaknesses
Internal

Opportunities Threats
External

STRENGTHS Sss Internal

WEAKNESSES Internal

OPPORTUNITIES External

THREATS External

Strengths:
Strengths are the internal positives which gives a competitive advantage over others. The strength of our product is as follows Providing better Quality Complete wrap with mirrors is new in the market Marketing is easy Last up to 5 to 7 years Waterproof

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No harm to original paint Heat resistant Easy On, Easy Off

Weaknesses:
Weaknesses are the internal negatives or the disadvantages which may interfere to achieve the objectives. The weaknesses of our product are: Vinyl may wrinkle on curved windows No market share Lack of driver visibility (in case of mirrors) No loyalty because its new in market

Opportunities:
Opportunities are the external positives which we can use to improve or growth in the market. Some opportunities for us are: Leader in technology Lowering of prices High consumer income More New Organizations more Marketing Great profits due to attractive market

Threats:
Threats are the external negatives which make trading conditions more challenging. Following are the threats for our product: Competitor with new advancement Competitors can duplicate Govt. policies for safety concerns Change in taxation rules for importing goods

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Chapter 4 Using the Tactical Marketing Tools

This chapter describes the way we will use the tactical marketing tools for marketing Car Wrap in Pakistan. The chapter comprises of four sections. Section 1 discusses the product attributes of Car Wrap. Section 2 visualizes the price of Vinyl sheets according to different Size and Quality and the Break Even Analysis. Section 3 will conceptualize the distribution channel of Car Wrap. Finally section 4 discusses the promotional activities that we will undertake for Car Wrap.

Product:
As Car Wrap is internationally renowned thing, there are Vinyl sheets available in market but for better quality we can import the Vinyl sheets from other countries like USA and China which are providing better quality with cheap rates. We will offer Car Wrap in Pakistan in different themes which are: Special Effect Vinyl, Carbon Fiber Finished Vinyl, Brushed Effect Vinyl, Matt Finished Vinyl, and Gloss Finished Vinyl. Taking into account the customers need we will provide Vinyl sheets in 36 different colors.

Price:
To set the price of the product is one of the difficult tasks to do because it should be according to the customer need and we have to keep in mind our profit as well and we have to look what our competitors will do in response. The pricing strategy we will use for our product is Market Skimming because our product is new in market and it is at introductory stage and for pricing we can use Promotional pricing as well. We will give different special event pricing like on Valentines Day or Independence Day we will provide special theme Vinyl sheets and wrap cars according to the event. Variable Cost Vinyl Sheets Labor cost = 5000 = 1000 Garage Rent Dryers Total Fixed cost = 90000 = 4000

Cutters Magnets Total = 6000 Total

= 3000 = 3000 = 100000

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The above table shows the Variable and Fix cast which will be incurred for the installation of car wrap. At the end of the table we can see the total of Variable and Fix cost which are 6000 and 100000 respectively. To calculate more accurate results and to get the idea about Breakeven point now we will find Unit cost and Mark up cost.

Unit Cost:
Variable Cost + Fix Cost Unit Sale 6000 + 100000 200 6000 + 500 = 6500

Mark Up Price:
Unit Cost (1- Desired return on Sales) 6500 (1- 0.50) 6500 0.5 = 13000. In above calculations in order to find Unit Cost we took 200 as the Number of cars which we will wrap in one month and after the calculations we conclude that our per unit Price is 6500. For calculating the markup price on which we have to sell the product including our profit we will take 50% profit on per unit cost, so after the calculations we can see that we will wrap one car at RS. 13000.

Break Even Analysis:

The Break Even is the point of zero loss or profit. It helps us to find that how many years will be taken in the specific period of time at which a company shows neither profit nor loss and after how many years we will be able to get a return which includes profit. To get that point we will find out the Break Even in Units from the following formula:-

Break Even in Units =

Total Fix Cost

Selling Price - Variable Cost per Unit

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100000 13000 6000

100000 7000

14 units

From the above calculations we can conclude that after 14 car wraps for a specific period of time we will neither get profit nor loss

Place:
As our product is new in Pakistan we will use direct distribution strategy to contact with the customers directly and we have to place our product on the locations on which it is convenient for the customers to find and purchase our product. Mostly customers will go for the product which is easily available, as we are targeting people who have cars and we also segmented our population according to urban and sub urban areas, we divide the availability of our product in 3 divisions which are as follows: Central North South

Division

Location

Central

Lahore, Multan, Faisalabad, Gujranwala

North

Islamabad, Rawalpindi, Peshawar

South

Karachi, Hyderabad

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The table shows that how we make divisions of population into regions and the main cities which fall under these divisions.

Promotion:
As our product has some special offers we can do its promotion by using different mediums to create awareness and need of our product in the minds of customers by creating their interest and motivate them to use Car Wrap. Promotion tools which we use for our product are: Advertising Sales Promotion Buzz Marketing

In advertising we will use different channels like Cars Internet Media Broachers In sales promotion we will offer Discounts Coupons Membership (for first 10 customers)

In Buzz Marketing we can promote by Group of people will drive car with wraps for 1 month Internet

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Chapter 5 PEST Analysis

Macro environment factors are the factors of external environment and they need to be managed because of their impact. PEST is the abbreviation of Political, Economical, Social and Technological. A study of analyzing the factors that make up macro environment is called a PEST analysis.

Political:
The first element of a PEST analysis is political factors. These are the factors which relates with Govt. and its activities. The political factors which can affect or provide opportunities for our product are: Political instability Rules and regulations by Govt. Employment Legislation Taxes which can affect Incomes Election campaigns (use their cars for Marketing)

Economical:
The second element of a PEST analysis is economic factors. The National and Global factors can affect a business. The Economic factors which can affect our product are as follows:-

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Inflation rate (prices will b higher, low number of buyers) Public spending (less income, less spending) Exchange rate (affect the supply and price of Imported goods)

Social:
The third element is Social forces which have an impact on the lifestyle and behavior of the people. As our product has offers which is beneficial for the consumers the following social factors will affect our product: Trendy (affect consumer attitude) Consumer interests (for fashion or marketing) Consumer opinions (after using first time) Consumer income

Technological:
The fourth element is Technological advances which change the pattern in which a business operate. The technological factors which can affect our product are: Impact of internet Advancements which have impact on mix

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Chapter 6 Conclusion
In this report we had tried to explain that how to have different looks of your vehicle through Car Wrapping. We had explain this process in dept. we made an exclusive research on this report, and tried to explain this phenomenon to an extent that everyone at least have an equal opportunity to know about it. As we had reported above that 90% population says that they remember the products through its advertisement. So our product can be the cause of advertisement for different company. Through car wrapping different organization can have their advertisement on car. So we can say that our product can be a moving Advertisement opportunity for organizations. And we also would like to mention that car wrapping can be beneficial for those peoples, whose cars are selected for advertisement. The organization will pay for the advertisement and the persons car will have a unique look. We hope that this project report can help you in understand the benefits of car wrapping.

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Chapter 7: Bibliography Websites:

www.learnmarketing.net www.wikipedia.org http://www.ebay.co.uk http://www.julong-ads.com

Books: Marketing Theory & Practice, Philip Kotler,14th edition

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