Marketing Plan

Marketing Plan 2008

S. No. Contents Page No.

A Introduction 1

B About Phoenix Amour 1

C Marketing Plan 2008 1

1 Part 1: Purpose of the Marketing Plan 21.1 Mission Statement 21.2 Vision Statement 2

2 Part 2: Situation Analysis 32.1 Current Product/service analysis 3

2.1.1 Service Attributes 32.1.2 Distribution 42.1.3 Promotion 42.1.4 Service offered 52.2 Target Markets 62.3 Current Distribution Network 62.4 Competitive analysis 7

2.4.1 Security 2000 62.4.2 G4S SMS 82.5 Financial analysis of CIT service 102.6 Environmental problem and opportunities 122.7 SWOT analysis 133 Part 3 : Marketing Strategies and Objectives 14

3.1 Financial objectives 143.2 Marketing objectives 143.3 Customer service objectives 144 Part 4: Tactical Marketing Program 15

4.1 Target Markets issues 154.2 Product/service issues 164.3 Promotion Issues 16

4.3.1 Sales Department 164.3.2 Telemarketers 174.3.3 Advertisement 174.3.4 Brochures 174.3.5 Exhibitions 174.4 Distribution Issues 174.5 Pricing Issues 184.6 Customer service area 185 Part 5: Budgeting, Performance analysis and Implementation 20

5.1 Marketing Budget 205.2 Performance analysis 215.3 Implementation 226 Part 6: Additional Considerations 23

6.1 Internal Factors 236.2 External factors 236.3 Research Limitations 23

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Marketing Plan 2008

MARKETING PLAN

Introduction:

PHOENIX ARMOUR Background:

Phoenix Armour is operating in Pakistan from 1982 however it was formerly known as Brinks. Phoenix Armour is a pioneer company in cash-In-Transit service in Pakistan and now it is operating in 90 cities. It has divided its operations geographically into 3 regions i.e. South, North and Central. The company is also dealing in Security Guards Services for VIPS, Financial Institutions and other businesses etc, and security equipments like CCTV cameras, Alarms and Intellectual Property Rights.

Marketing Plan 2008: As mentioned above, PHOENIX Group of Companies is covering every aspect of security related business however this marketing plan is related only to Cash-in-Transit Service.This marketing plan is designed to provide the reader with the necessary information to fully understand the purpose of the marketing plan. Essentially this plan is:

Forces the marketing personnel to look internally in order to fully understand the results of past marketing decisions.

Forces the marketing personnel to look externally in order to fully understand the market in which PHOENIX ARMOUR operates.

Sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and support.

To develop this marketing plan a six-part approach is taken that includes:

1. Purpose and Mission

2. Situational Analysis

3. Marketing Strategy and Objectives

4. Tactical Programs

5. Budgets, Performance Analysis and Implementation

6. Additional Consideration

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Part 1: PURPOSE OF THE MARKETING PLAN:

This Marketing Plan is undertaken for the following reasons:

Needed as part of the yearly planning process within the marketing functional area.

Needed for a specialized strategy to introduce something new, such as new product/service planning, entering new markets, or trying a new strategy to fix an existing problem.

Is a component within an overall business plan, such as a new business proposal to the financial community

1.1 Mission Statement:

“Phoenix Armour’s core mission is to provide the customers excellent security solutions in the volatile conditions. We exist to attract and maintain customers; our services and products will exceed the expectations of the customers and will fulfill their demands.”

1.2 Vision statement:

“Our ultimate vision is to become a superior security solution provider for each customer while doing things efficiently as an organization.”

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Part 2: SITUATIONAL ANALYSIS

The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented. The situational analysis covers six key areas: product/ service attributes, target market, distribution, competitors, financial and other issues.

2.1 Current Product/Service Analysis:

2.1.1Service Attributes:

CIT Services:The salient features of services are:

Risk-free transportation of cash and valuables between any bank and office.

Door-to-door secure transportation within city or inter-city, and nationwide.

Salary distribution service. Vaulting facility for cash and valuables, over night or on a long term basis. Backed by a comprehensive insurance cover.

Types of Services:There are four types of services which are as follows:

Local Services:This type of services is done within the city.

Domestic courier service:When valuables are moved from city to another city then this type of service is called Domestic Courier Service.

Plane Side Service:It refers for moving valuables, foreign currency etc outside the country by air.

Wage Packet Distribution:Phoenix Armour also provides wage distribution facility for other businesses where the whole process is done by phoenix is people.

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Domestic25%

Plane Side10%

Local60%

Wage Packet5%

2.1.2 Distribution:This marketing plan is related to services not to any product , that’s why , there is no distribution channels required for making services accessible to the customers, however, contacts of Phoenix Armour’s Operations and unique reference number (proposal no.) is provided to each customer to avail the services.

2.1.3 Promotion:

The Phoenix Armour’s marketing department is the backbone of the company and plays a key role to achieve the goals of the organization. They get business for the company by satisfying the needs of customers and find out new opportunities to increase the market shares of the organization. The marketing and promotions of the company are done by following methods:

Sales department. Telemarketing. Advertisement. Brochures and other printing materials. Exhibitions.

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All above techniques are integrated together to achieve the set targets for the marketing departments.

2.1.4 Service Offered:

As mentioned above, this plan is related to the services that’s why there is no pre and post sale services however CIT services are backed by comprehensive insurance cover. Phoenix Armour also offers vault facilities to their customers to store safely and securely their valuables in any situation.

2.2 Target Market:

PHOENIX ARMOUR

Telemarketing

Advertisement Exhibitions

Printed Materials

Sales

Department

Marketing Department

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Marketing Plan 2008

Generally, Cash-in-Transit service is utilized by the customers those want to move their cash and other valuables between two destinations securely due to security reasons. Phoenix Armour possesses excellent information about their target markets and knows a great deal about common attributes of the most valuable customers. This information will be utilized to better understand, who is served, what their specific needs are, and how Phoenix Armour can better correspond with them.

In case of Cash-in-Transit service, Phoenix Armour’s market consists of basically two segments:

1. Financial Institutions.

2. General segment.

Financial Segment General segmentNational bank of PakistanHabib Bank of PakistanAllied BankUBLMCBBank Al - HabibNIBMeezan BankAtlas Banketc.

Textiles IndustryPharmaceuticalsMoney ChangersOil & GasChemical IndustryConstructionFood & BeveragesHotelsJewelers.etc

2.3 Current Distributor Network:As mentioned earlier that this plan is related to the services so there is no distributor channel is required between company and its customers. The customers are directly contacted with the company if they require CIT services.

2.4 Competitive Analysis:

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Phoenix Armour being a market leader, is not facing intense competition and enjoying the monopoly. However there are some customers those are operating in the same industry. They are as follows:

1. Group Securicore G4S)

2. Security 2000

3. Askari Cash in transit

4. Bahria Cash in transit

Security 2000:

It was formed in 1995, with offices in all provincial capitals. Its Headquarters is in Karachi with eight regional offices spread throughout the Country. Countrywide the company has 10 offices.

SERVICES:

They provide following services:

1. GUARDS SECURITY 2. EXECUTIVE PROTECTION

3. CRISES MANAGEMENT

4. DUE DILIGENCE

5. BRAND PROTECTION

6. SECURITY SURVEY

7. RESPONSE MONITORING

8. RISK ASSESSMENT

9. SECURITY TRAINING

10.EVENTS SECURITY

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Customers:

SECURITY 2000 has 4 full-fledged security divisions in different fields. 5 out of the top FORTUNE 50 companies of the world and 12 of the top 20 NATIONAL companies are their clients.

Some are: Customers Customers

ABBOTTABN AMRO BANKADTAMERICAN PRESIDENT LINES (APL)CGNUCNNDCN - DEFLOGDUPONTENGRO ELI  LILLYGENERAL ELECTRIC (GE)GILLETEGOLDMAN SACHSGSKHUB POWER COHUGHES CORPICIJ WALTER THOMPSONJP MORGAN

KNOLLMERCK MARKERMSDNOVARTISOSRAMPROCTER & GAMBLE (P&G)PAKISTAN STATE OILPAKISTAN TOBACCO COPEPSI CO INTERNATIONALPFIZERPHILIPSRECKITT BENCKISERROCHE STANDARD CHARTERED BANKTHAI AIR INTERNATIONALUNILEVERUNION BANKWORLD BANK3 M

G4S SMS: Formed in 2004 from the merger between Securicor plc and Group 4

Falck A/S’s security business. Listed on the London Stock Exchange (stock symbol: GFS) with a

secondary listing in Copenhagen. The largest employer listed on the London Stock Exchange

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Turnover from continuing operations for the half year from January - June 2007 was £2,263.9 million (2006: £2,025.3m). PBITA for the same period was up 15.9% to £139.5 million (2006: £120.4 m)

G4S SMS Pakistan has been working since 1992. They provide security services over 30 locations and 10,000 employees covering the major cities.

SERVICES:

They are working in the following areas:

1. Manned Security

Mobile Patrol, VIP Guards, Stationary Guards, Reception Services, Physical Protection and Event Security

2. Cash Services. Cash in transit

3. Other Security Services

Security Training, Consultancy Services, Security Survey, Facility Services, and Research & Collection Services

Customer Segments:

They are providing services to following segments.

Public authorities, Small businesses, Medium-sized and large businesses, Residential customers, International organizations, Embassies, Gas & Oil Exploration (Field Operation), Mobile Telephone Companies (Cell Sites)

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And NGOs

The following graph shows the percent value achievement for each service. The domestic service as compare to other two services is not taking much part in profit generation. The main reason is the facility of online transfer where customer can transfer money online to other city/cities without any exposure that’s why they avoid physical transfer of money to other cities.

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Local Domestic Plane SideService Type

Service Achievement for the Year 2007

All three services are showing great results and achievements in the following table in terms of revenue generation. The company is enjoying profit more than it was forecasted specially in local and domestic services.

The main reason of getting more profit in the industry as compare to our competitors is the reliability, goodwill, hard working and quality of our services. However, new competitors are arriving into the market and also existing

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competitors are cutting down their charges and upgrading their logistics which result in intense competition can affect our market shares and creating hurdles to achieve our short and long term goals. That’s why the company has to keep an eye on the competitors by not only securing our market shares but try to reduce competitors’ market shares by aggressive marketing techniques.

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Revenue Achievement for the Year 2007

2.6 Environmental Problems and Opportunities:Phoenix Armour is operating in the security industry. The company follows all the legal obligations that are necessary to run as a business, such as the verification of all the company staff/employees, especially the security guards. The company verified it by using their CNIC cards. The CIT vehicles are strictly bound to follow the traffic rules and regulations, such as parking restrictions and emission of smoke from the vehicle. The company properly maintained the vehicles by periodic maintenance and tuning of the vehicles, which help to reduce the hydrocarbon emission from vehicles. Daily there are various services, which go through SBP (State Bank of Pakistan) and SBP have some restrictions on the entrance of the CIT vehicles in their parking area. The SBP allowed two vehicles at a time normally, however in the rush hours only one vehicle is allowed. There is a break of 3 hours from 1200 to 1500 on Fridays when none of the vehicle is allowed to enter into the bank.

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There is expansion in the financial sector of Pakistan. More banks are opening their branches and expanding their businesses, that gives an enormous opportunity to PHOENIX ARMOUR to increase its market share.Due to the increase in street crimes and unlawful conditions especially in Karachi, therefore more customers desire to transit their cash safely and securely, that gives the company more customers in the general segment. Plastic money, online money transfer and big notes etc, are working as substitute products to us and are reducing the profit of the company.

    PESTLE ANALYSIS          Political Instability  POLITICAL Co. follows all guidelines implemented by SECP.    Decrease In FDI.         Increase in disposable income of customers  ECONOMICAL Expansion in banking sector.    Increase in global inflation         Increase in street crime.

FACTORS SOCIAL Increase in Unemployment.    Increase in fuel prices.         More usage of plastic money.  TECHNICAL Telegraphic transfer and Hundi system of money.    Online transfer of money.         Verification of staff documents.  LEGAL Restrictions by SBP.    all traffic laws are obeyed by armored vehicles.         Proper maintenance of armored vehicles periodically.  ECOLOGICAL Daily checking of CIT vehicles    Rectifying immediately any wear and tear of vehicles.

2.7 SWOT Analysis:

Phoenix Armour has several powerful strengths on which to build, but our major weakness is lack of brand awareness and image in general segment. The major opportunity is growing demand of CIT service due to the nature of the street crimes situation in Pakistan especially in Karachi. We are also facing the threat of competition from other security companies and downward pressure on pricing.

The following SWOT analysis captures the key strengths and weaknesses within the company, and highlights the opportunities and threats facing Phoenix Armour.

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2.8.1 Strengths: Pioneer in the security business in Pakistan. In-depth industry experience and insight. Highest market shares.

2.8.2 Weaknesses: Lack of marketing in General Segment. Lack of marketing research. Company is less customer-focused.

2.8.3 Opportunities: Expanding business in banking sector like Barclays is coming. Law & order situation. Political instability. Still lot of market share could be gain from general segment.

Threats: Increasing competition. Online transfer of money between banks. Increasing competition is compelling company to over look its pricing

policy because SMS is providing their services less costly as compare to us.

Part 3: MARKETING STRATEGY AND OBJECTIVES:

3.1. Financial Objectives:

Increase the profit margin by 2 percent per quarter through efficiency and control on expenses.

Maintain a significant budget for attending exhibitions and printing materials for advertisement.

3.2. Marketing Objectives:

To achieve a stable boost in market development.

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To maintain affirmative, strong growth in 2008.

To enhance brand awareness in the general segment.

3.3 Customer Services Objectives:

To reduce customer complains through communicating with them.

Building relationship between customer services department and customers for enhancing trust on company.

To conduct an annual conference with stakeholders.

Part 4: TACTICAL MARKETING PROGRAM:

Part 4 is the core of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the objectives and goals established in Part 3. In this section details and timetables are presented for six key decision areas:

Target Markets

Product

Promotion

Pricing

Distribution

Other Areas. (Customer Service Area)

Preferably this section includes a brief summary of current marketing decisions (please refer to Part 2 Situational Analysis) so readers of the plan can easily compare what was planned to what is planned.

4.1 Target Market Issues:

In case of Cash-in-Transit service, Phoenix Armour’s market consists of basically two segments:

4. Financial Institutions.5. General segment.

Our primary target market is financial institutions such as leading local and foreign banks, money changers and multinational companies. Phoenix Armour is

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enjoying leading share of the financial sector, where the company is providing services to all the leading banks throughout the country. However, there is a constant need to provide better offering to them to further increase the market share of the company.Our secondary target segment is general segment that comprises of Fuel Stations, Textile Industry, Pharmaceuticals and Jewelers etc. those are needed to transfer cash from one location to another location. First segment is related to retail banks and it is also a primary segment for profit generation. In case of retail banks, they utilize the service when they require cash for their daily operations so generally cash is dispensed from their relative feeding or main branch to the retail branches in the cities at the start of the day and collection of cash from their branches to feeding or main branch in the evening. In case of General Segment, mostly industries avail this service when they require cash for wages or salaries for their staff.

Product (CIT Service) Positioning:

Phoenix Armour is the premier provider for cash-in-transit however viewers from general segment position Phoenix Armour as the company is only dedicated to banking sector. In this year, the company will reposition itself as the services of the company are also available to the customers other than banking sector. This position will be achieved by leveraging Phoenix’ competitive edge: industry experience and passion. Its management is able to use its vast experience and personal passion for the cash-in-transit to develop strong awareness in the general segment.

4.2 Product/Service Issues:As discussed earlier, there are no issues related to distributors and also same with the case with packaging and labeling however for this service the company will use market development technique (same service; new market) to attract more customers from general segment.

4.3 Promotion Issues:In the year 2008, the promotional activities will be done by participating exhibitions, advertisement in business magazines and attracting general segment by distributing broachers and other printing materials. The marketing and promotions of company will be done by following methods:

Sales Department. Telemarketing. Advertisement. Brochures and other printing materials.

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Exhibitions.

4.3.1 Sales Department:

The sales team need to be more pro-active and must work according to the set goals. They will go into the field with the printing materials like broachers and reach the target market and explain the CIT services to them and also take the feedback of customers if they need any special requirement in our services. The sales team will also explain the future benefits of our services to the customers and differentiate our services from competitors. The sale team will try to gather the information about the competitors in the market like their charges, promotion etc.

4.3.2 Telemarketers:

The telemarketers will be assigned particular segments for a month on which they will work with full concentration and efforts. They will be given small goals, like to get a particular number of potential customers from assigned target markets. They will be responsible to generate a report about assigned target market at the end of the month in which they will explain the portfolio of the segment.

4.3.3 Advertisements:To address the related target market, advertisement will be done through yellow pages, business magazines, company’s website, and also in annual magazines of industries like textiles and pharmaceuticals etc. The armored vehicles are also the moveable advertisement for the company because they go number of places specially banks, industrial areas etc, and the potential customers can attract through them. 4.3.4 BrochuresBrochures and other printing materials like leaflets etc. can boost the marketing activities of the company. The brochures will be distributed by sales team to the potential customers and also to existing customers who do not avail the services and there are also numbers of customers where management has been changed and they do not know about our services. By the help of printing materials, the company will refresh the information about the CIT services and to get more market shares. To increase the awareness of the company, brochures will be placed inside the financial institutions. 4.3.5 Exhibitions An exhibition is the promotional way where company can convey its message to the potential target market directly. In the year 2008, the company will take

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part in the exhibitions on the quarterly basis where a well-defined picture of the company will be illustrated to the potential customers.

4.4 Distribution Issues:

This marketing plan is related to services not to any product , that’s why , there is no distribution channels required for making services accessible to the customers, however, contacts of Phoenix Armour’s Operations and unique reference number (proposal no.,) are provided to each customer to avail the services.

4.5 Pricing Policies:

There are 5 types of rates which are as follows:

Base rates: They varies according to the frequency of servicing required by the clients and base rate get doubles if the service is after 5 pm and during holidays weekends, special events like Eid, Christmas etc.

Surcharge: of Rs 0.50 per thousand will apply if the amount or valuable are in excess of 0.50 million and for the banks 0.10 per thousand will apply if the amount or valuable in excess of 1 million.

Sealing charge: is a seal charge which is used on every bag to seal it off with a special number it is Rs. 25 for each seal.

Vault charge: is a premise where valuables are kept for longer or short periods it is guarded by armed men and security cameras and equipment the charge of Rs. 200 per night (only for Karachi and varies for other cities) per consignment is applied

Waiting charge: is a charge of Rs. 500 per hour applies, if vehicle is kept on waiting for more than 15 minutes to pick up the consignment.

4.6 Customer Service Area:

Phoenix Armour has established its customer service department for improvement of the quality of the services. CIT is a service and in service industry, a customer directly contacts to the supplier that’s why customer services department is the backbone of the service industry. The customer service department will be responsible of total satisfaction of the customers. If a customer has any complain regarding CIT services, this department will investigate thoroughly the customer complains and try to eradicate the cause of the problem by giving suggestion to the top management. This department will

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work as a bridge between CIT operation and customers to smooth execution of the services.

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Feedback of Customers

Unsatifactory Satisfactory Fair Good Excellent

The above graph shows the customers feedback about our services.

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Part 5: BUDGETING, PERFORMANCE ANALYSIS AND IMPLEMENTATION:

This step consists of three steps.

Marketing Budget  -  presents a clear picture of the financial implications of the plan

Performance Analysis - presents the expected results of the plan including its financial impact

Implementation Schedule  - shows timelines and identify those responsible for performing tasks

5.1 Marketing Budget:

Marketing Expenditures

5%

13%

5%8%

19%

13%

24%

13%

Ads

Website

Printed Materials

Sales Department

Telemarketing

Exhibitions

Customer Services

Others

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5.3 Implementation:

This section illustrates a discussion of how and by whom the plan will be carried out. The detailed budget allocations and time for each specific marketing communications tools are given below in Gantt chart. This chart is also identifying those related departments for each activity. The marketing plan will be completed in the start of January 2008 by marketing department. The working of sales team, advertisements and telemarketing will be done throughout the year.

Part 6: ADDITIONAL CONSIDERATIONS:

The final major section in the Marketing Plan prepares the reader for potential situations that may affect the plan. In this way the reader is provided with a somewhat more balanced picture of what the company may face as it attempts to implement the plan.

6.1 Internal Factors:

The internal factors that may affect the plan are as follows:

Loss of funding source. Loss of key personnel. Logistic problems. Unexpected virus attack on database. Relocation of departments due to revamp.

6.2 External Factors:

The outside factors that may affect the plan are as follows:

Political Instability Law & order Situations CIT Vehicles have become vulnerable for robberies. Economic Crises for small businesses. Increase in Fuel Prices. Riots.

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6.3 Research Limitations:

Difficult to find solid data on a certain subject. Numbers of assumptions are made on forecasting.

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