Assignment:

Marketing Plan
.

Executive Summary :This is a

marketing plan for an
organisation providing power
and related services to a
diverse market. It aims to
achieve growth in all the
markets and products through
the proposed marketing mix.

[Pick the date]

 CANDIDATE NUMBER :
479

SUBJECT:
STRATEGIC MARKETING

LECTURER:
MR GADZIKWA

Question

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

You are a newly appointed marketing manager in your organization. Your MD asks
you to develop a markrting plan.how you would accomplish this task using the
method leant in class.

Answer

Contents
Contents..................................................................................................................... 3

The Challenge.............................................................................................................4

Mission Statement...................................................................................................... 4

PEST Analysis ............................................................................................................ 4

SWOT Analysis............................................................................................................7

Objectives of Marketing..............................................................................................8

Market Segmentation................................................................................................9

Marketing strategy(4Ps)...........................................................................................13

Conclusion................................................................................................................ 14

References................................................................................................................14

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

The Challenge
The main product of the company is electricity, My organisation provides power for
industry and domestic use . Electricity is packed in different offerings for each
market segment. The other products are from areas of telecommunications and
manufacturing. These are products of a backward, forward , and horizontal
integration that was necessitated by the unavailability of certain scales of services
required by the organisation. These are public data services , transport , and
transformer manufacturing and repair and new green products. Growth is required
across board on all product so that a balanced portfolio is established.

Mission Statement
Our strategic intent is to be the leading supplier of energy and related services in
the region. In the generation of electricity and supply of energy related products,
we are committed to delivering reliable services to exceed stakeholder expectations
through use of environmentally friendly technologies.

PEST Analysis

Political Comment

Item Environment
1 Government of National This has enabled political stability on the
Unity market

Laws: ZERC “
Power sector reforms have seen the formation
No laws condemning and of the Zimbabwe Electricity Regulatory
/or limiting business Commission (ZERC),
activity a statutory body established in terms of the
Electricity Act (Chapter 13:19) of 2002 as
amended by the Electricity Amendment Act No.
3 of 2003. The Commission’s primary function
is to regulate the electricity supply industry
(ESI) in Zimbabwe and to, among other things,
create an enabling environment for competition
and thus
promote an efficient electricity supply industry.
The Commission is also the only legal authority
GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT
 that can approve a tariff increase.” [1]
Credibility Still needs to be earned promises yet to be
proven to be holding on the political front

Parliamentary
Democracy

labour laws (minimum

wage, safety regulations
etc)

Price controls A pricing commission available which can be

prescriptive and not regulatory on prices

Environmental regulation Strong legislation on environment adding

higher barriers to investments

trade barriers

2 Economic
environment
Fiscal discipline

Macroeconomic stability Inflation, lines of credit , fdi , interest rates,

exchange rates

Stable and predictable

tax regimes

Capital Expenditures

GDP 7.1 % rise in 2010 expected

68% of population below

poverty datum line

World Commodity prices Prices of inputs are going up eg coal

Unemployment Still high

3 Social Issues
Demographic issues Population approximately 12million,

Net migration is negative

Age structure: 0-14 yrs approx = 44 %:15-64

yrs approx = 52 %: 65 and older yrs approx =

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 44 %

the culture, education

living standards, housing trends,

attitudes to work, leisure activities,

occupations, and earning capacity

education level, Above 90% literacy levels

health Improving with governance

Trends in social factors demand and tastes are becoming more

affect both internal and urbanised in trends. Economic growth
external factors in the translating into disposable income
company including the
demand for a company's disposable income
products or services

4 Technology
R&D activity, Minimal

automation, Technology catching up with world pioneers

thereby supporting introduction of
sophisticated products and advanced
production management methods

the rate of technological Technology catching up with world pioneers

change as well as the thereby supporting introduction of
current state of sophisticated products and advanced
technology (i.e. production management methods
communications
infrastructure).

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

SWOT Analysis
Environmental factors have been organised as follows : internal attributes
are strengths and weaknesses and the external environment presents
opportunities and threats.

Item Topic Comment

1 Strength

Infrastructure

Monopoly

Shareholder support

Skills

2 Weaknesses

Old and obsolete equipment

Weak financial base

Organizational structure not driven by

strategy

Outdated MIS

– Computer system
– Procurement system
Poor conditions of service

Poor strategy implementation

3 Opportunities

High power demand

Barriers to entry

Political stability

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 Numerous opportunities for partnerships

4 Threats

Lack of credit lines

Shortage of coal

Climate change

Global campaign against use of fossil fuels

in favour of renewable energies

Competition especially IPP

Brain Drain

Shortage of critical inputs from suppliers

Objectives of Marketing

1. Grow market penetration by 20%

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 2. Increase customer loyalty by reducing permanent disconnection to less than
1%

3. Increase paying customers by 20%

4. Increase revenue by 35%

5. Enter into at least one new market segment

Market Segmentation

The market segmentation consist of four segments that is domestic , Agricultural

and rural , Industrial and Importers of power . The segments are described below as
follows:

Segment 1: Domestic Consumers

Item Topic Comment

1 Description. These are the urban

consumers of power .

2 Percent of sales 35

3 What they want Power in small amounts

per customer ,but
reliable . Power from the
grid and from diesel
generators.

They want data services

4 How they use product For lighting and other

domestic appliances.

Access to the world wide

web and communications

5 Support requirements Repairs generally done by

own servicemen.

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

6 How to reach them Door to door , TV ,
Newspapers, At revenue
collection points

7 Price sensitivity Generally understands the

cost drivers in industry

Segment 2

. Segment 2: Rural and Agricultural Consumers

Item Topic Comment

1 Description. These are located in the

farms and rural places

2 Percent of sales 10

3 What they want Power in small amounts

per customer . Power from
the grid and from diesel
generators.

Low interest in data

services

and solar energy.

4 How they use product For lighting and other

domestic appliances.

5 Support requirements Need support from power

company . Skills in short
supply here

6 How to reach them Door to door , TV , , At

revenue collection points

7 Price sensitivity Generally requires

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT
 subsidies for services.

Segment 3: Industrial Consumers

Item Topic Comment

1 Description. These are the large

industries that drive the
economy including mines.

2 Percent of sales 40

3 What they want Power in large amounts

per customer . Power from
the grid and only
emergency power from
diesel generators.

High interest in reliable

data services

Heavy duty transport

Transformer repair
services.

Solar energy.

4 How they use product For manufacturing and

connecting their critical
ERP services.

Solar energy for image

improvement due to
strong environment lobby.

5 Support requirements Have capacity to support

themselves , only
requiring services of the
bulk supply of power or
bandwidth.

6 How to reach them Trade shows , TV ,

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 Newspapers, At revenue
collection points,
presentations

7 Price sensitivity High sensitivity but

understands cost drivers
in power industry

Segment 4:Power Exports

Item Topic Comment

1 Description. These are exports to other

utilities in the region.

2 Percent of sales 15

3 What they want Power in large amounts

per customer . Power from
the grid

4 How they use product For augmenting

distribution power in their
own countries.

5 Support requirements Have capacity to support

themselves , only
requiring services of the
bulk supply of power .

6 How to reach them Trade shows ,

presentations

7 Price sensitivity Willing to pay a premium

for good service

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 Marketing strategy(4Ps)
The marketing mix has been developed for the five main products derived from the
services offered by company and the market segmentation done above. It is shown
below in table.

Product Price Place Promotion

Low functionality Discounts Placement of Small budget for
and support and credit for product promotion 5% of
required . Power bulk purchase internally total and done
is supplied in and these supported through personal
bulk and the customers and market selling.
customer pay faithfully covers bulk
conditions it to and need to consumers
their be and importers
requirements. encouraged of power
Security of to continue.
supply backed
up by power
purchase
Bulk Power agreements
Conditioned Monthly Located in Big budget for
power required payment rural and promotion 25%
at point of cycles and urban areas of total and
consumption . fewer spend on public
No further discounts. A relations and
processing is high cost advertising.
done to power. customer due
High quality to high
required and requirements
branding. for support
Warrants on
solar and DG
power of one
Small Power year supported.
Functionality , Monthly Located in Big budget for
quality and payment urban areas promotion 45%
service support cycles and and industrial of total and
high fewer areas spend on public
discounts. A relations and
high cost advertising. This
customer due is a star product
to high
Data requirements
services for support

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT

 Functionality , Competition Located in Big budget for
quality and pricing since urban areas promotion 45%
service support the product is and industrial of total and
high exposed to areas spend on public
greatest relations and
Transport competition. advertising.
Functionality , Discounts Located in Small budget for
quality and and credit urban areas promotion 5% of
service support these and industrial total and done
high customers areas through personal
pay faithfully selling. Contacts
and need to already exist
be within the
Transformer encouraged industry
and to continue.
equipment Customers
repair are loyal

Conclusion

Our marketing programmes design will be derived from the marketing mix
spacifying the times , budgets and styles of promotion to be implemented and
relevant and relevant monitoring , control and feedback forms and methods are
attached herein.

References

[1]ZERC UPHOLDING ELECTRICITY CONSUMERS ‘ RIGHTS AND OBLIGATIONS 2006

By Zimbabwe Electricity Regulatory Commission

2 Abba Khan 26 June 2010 www.prezi.com

Electricity Amendment Act [Chapter 13:19] , 2003

GMDP 479 STRATEGIC MARKETING MANAGEMENT ASSIGNMENT