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LULU'S AUTOBAHN FUELS AND LULU'S OSTRICH RANCH
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Marketing Plan Lulu's Autobahn Fuels 's marketing strategy is to enhance, promote and support the fact
that our products are faster and cheaper. The overall marketing plan for our product will be based on the following fundamentals: The customer wants to pay at the pump, wants to use credit cards or cash, does not want
to stand in long lines, does not want to be forced to go into the Convenience Store
(C-Store), wants a place that has cheep high quality fuel 24 hours a day, wants fuel that
dispenses at a fast rate, and wants clean restrooms. To prove the value of our product we can look at how gas stations have increase their
customer flow by up grading each site. The lack of speed and convenience in every day fuel pumping is demonstrated by how
upset the customer gets by stopping the pumping process, driving through the station and
not stopping for fuel because there is no credit card reader, and not getting return
service from a customer because he had to wait in line to pay for fuel. Sales Strategy Our product should be treated as a long-term product. As such, the target market segments to focus on are commuters, local drivers, and
tourists. Because of the special market characteristics (easy off and on access for cars,
trucks, and motor homes on I-35), our sales strategy includes advertising daily and weekly
specials, using a digital 100ft sign to advertise specials on I-35 , and having an off
ramp sign showing location and name of site on I-35 : Following are our market position, pricing, and product margin structures. We plan to
review these every day in order to ensure that potential profits are not being lost. Positioning A gasoline station is seen by the consumer as a place to get fast high quality fuel at
a low price. Its unique advantages (include pay at the pump, credit card, bill acceptors, and
Convenience Store (C-Store)) can be exploited to arrive at a winning position in the
consumer's mind. In terms of market segmentation advantages, the customer can use the fact that we are
open 24 hours a day, have the quality products, can pay at the pump, and our prices are
competitive will lead the customer to arrive at a winning position here. We can reposition our competitors by quickly changing prices and keeping quality high
through advertising on our digital billboard sign. The resulting selling basis for our product is its competitive pricing, having fuel 24
hours a day, and paying at the pump. Pricing The prices for our products are determined first and foremost by fuel cost and local
advertised prices for fuel. It is important to know that competitive pricing is essential to our market profile. Compared to the competition, our prices are lower or equal to the competition. Different seasonal aspects of our market affect our pricing because vacation times and
holidays. We feel that our customers will pay $.01 to $.02 deference because they are looking for
price, convenience, fuel grade, and speed Margin Structure Retail I have ask many people what they are looking for in a gas station and the reply has
been price, pay at the pump with credit card or cash, and speed are what they want. Distributor A Convenience Store (C-Store) will have a gross profit margin about 28% while the fuel
will have a gross profit margin at about .10 per gallon of gas sold. Our site is projected
to have a volume of 88,000 to 100,000 Gallons per month of fuel and around $40,000.00 to
$50,000 per month in Convenience Store (C-Store) sales. Note: This is per IMST report done
at site. Manufacturer's Representative The .10 cents per gallon is after a .02 cents of commission is taken by the fueller for
delivering fuel to the site. Direct Sales The gross profit from store and gasoline should be around $13,200.00 per month. $200.00
of this money will be used for direct sales. Discounts We utilize the following discounts in our sales strategy: Discount tickets for tourist
and amusement attractions and advertised specials provided by Convenience Store (C-Store)
distributors . Current Selling Methods Price signs and posters are what is used by Gas Stations.. Methods we will use to promote our product will include digital sign, posters, flyers,
radio, and newspapers. Marketing Responsibilities William R. Hayward will make decisions regarding sales and site locations for new
automated gas stations. Next Steps Based on the strategic plan, decisions that must be made now include which sales and
advertising techniques will best reach the most gasoline customers in the short run then
in the running of the business. Key decisions to be made in the next six months are how fast can the digital sign be
put in place, which specials will get the most response, and what is best way to inform
the custom of the services provided at this site. The information needed to make these decisions is what the competitors are informing
their customers about their products, what are the acceptable prices that the customers
will accept, and how long will it take the customer to respond to this new locations
services. The information needed to make these decisions with confidence is included in the data
provided by the IMST report. The most sensible research recommendations are: 1. That the site be automated. 2. To be a new sit. 3. Install a 100ft company sign which has a digital sign installed under the company sign. 4. Have a grand opening with specials. 5. Have daily specials on food and gasoline. 6. To assist the customer at the pump for 3 months and inform him of the services provided at the site. 7. To daily drive around the area in order to make sure we provide the best prices and service. 8. To have clean restrooms that are handicapped ready. 9. Have plenty of parking. Distribution Channels Lulu's Autobahn Fuels 's marketing strategy incorporates plans to sell our product
through several channels. Our distribution channels include Convenience Store (C-Store),
Signs, Location, Tourist promotions, Radio, magazines, and newspapers. The determining factors in choosing these channels are type of product, specials being
run, roaming the area and check prices, and running trimly surveys. Key competition uses specials and discounts given to them by their distributors uses
advertising, and product posts for distribution channels. Our mix of distribution channels
will give us the advantages of keeping up with the customers needs quickly and effectively
over our competition. A partial list of Lulu's Autobahn Fuels 's major current distributors includes: But not limited to Conoco fuels, Costal fuels, Budweiser, Burdens, Coolers, Sunbeam,
Coke, Pepsi, extra... Executive Sales Because our customers tend to be top corporate managers, it is important that our
company president and senior managers present our product to our customers. Direct Sales The majority of Lulu's Autobahn Fuels 's sales will be handled internally through
direct sales by our staff. Lulu's Autobahn Fuels anticipates hiring 1 additional sales representatives to run
store, gas station, and provide a positive sales image. We have chosen to use a direct sales force because our products require considerable
customer education and post-sales support--directly from the company. Our price point,
pricing structure and profits are such that our costs of sales warrants a
"person-to-person" selling strategy. Manufacturers' Representatives Because manufacturers' representatives carry several product lines that are compatible
with ours, we feel that it would be appropriate to select manufacturers representatives
carrying complementary and compatible products such as pumps, tanks, Uninterrupted Power
Source (UPS), walk in coolers, heat and air systems, Fax Back (a computer fax tells the
fueller when to bring fuel and how much fuel to bring out to the site), point of sales
systems, and Tank monitor systems. Also, manufacturers' representatives that sell dissimilar products yet ones that are
appropriate to their customers' customer, such as United Pump Supply, Inc., Verder Root,
Autogas, Verifone, Wayne systems, and Red Jacket, are also being considered. Distributors One of the key elements designed into the Lulu's Autobahn Fuels 's marketing plan is
the targeting of our distributors. We will select distribution channels already in
existence and staffed with professionals possessing appropriate backgrounds and clientele.
Lulu's Autobahn Fuels 's products are very pertinent to the nature of our distributors
businesses and to the well-being of their customer base. Also, it is significantly less
difficult for us to reach these people and educate about the benefits available in using
our products. This strategic marketing approach takes full advantage of the fact that these
professionals are already involved with parallel products and services. They already have
a track record of experience. By operating within these distribution channels in this manner, we can maintain control
of our market. In addition, we can generate growth at a reasonable pace and obtain
excellent sales results. Retailers Possible retail and wholesale outlets include Sams Wholesale, Albertsons Foods, and all
Gas Stations. OEMs Original Equipment Manufacturers (OEMs) can incorporate our product into their product
line by building new or remodeling gas stations. Direct Response Mail We will be exploring the benefits of incremental, coordinated direct mail programs in
the next 3 months. We anticipate a strong profit potential as we strengthen our direct
response capabilities. We will be approaching this scientifically, as we improve our
customer targeting ability. We propose to send flyers by zip code to cover the city's of
Austin, San Marcos, New Braunfels, and San Antonio with monthly distribution campaigns. All direct mail activities this year will be directed to our existing customer base. In
addition, we will look at weekly newspaper inserts. Method of Distribution The primary means of distribution will be customers from the south bound I-35 highways
and local housing commuters. Additional channels planned are tourist and amusement discounts. An important advantage
to these alternate channels is flexibility. By using more than one method, Lulu's Autobahn Fuels will have more control and will be
more readily able to respond to special needs and circumstances. Other features of our secondary channels are low cost, quick start-up, and increased
capacity. Product Roll-Out Program For first entry into the market, the specific market areas we have selected are San
Marcos and New Braunfels. After initial roll-out and evaluation of results, we will expand our marketing to
additional market areas in this order of priority: Rio Grand valley and then to Padre
Island In support of this program, manufacturers' representatives we have chosen are as follows: Wayne systems, Unite Pump Supply Inc., Stokes Construction, Local Fuellers, and
suppliers Distributors we have chosen are: United Pump Supply Inc.- which supply all fuel and POS equipment need, Stokes
Construction - which acts as general contractor for gas station and Convenience Store
(C-Store), and Eddy Newman and Buddy Burrows- which supply construction, equipment and
leasing contracts Trade Incentives Free advertising Customer Service Our customers emphasize that service and support will be one of their major concerns.
They are constantly impressed with the support we provide. Hot-line service will be
currently available to all customers enrolled in a maintenance/support program. Support to manufacturers' representatives will allow them to perform efficiently as a
sales force. We intend to treat the manufacturers' representatives as an extension of the
"Lulu's Autobahn Fuels " direct sales force, and they will be given the same
support as the "Lulu's Autobahn Fuels " internal sales staff. Technical backup to OEM support groups will be currently supplemented by Lulu's
Autobahn Fuels . The OEM staffs respond to the needs of their customers, and when they
encounter a support issue that requires more information, they may direct their customer
to Lulu's Autobahn Fuels or they may contact Lulu's Autobahn Fuels to obtain the necessary
information. Technical support to marketing and sales functions will be strengthened. Pre- and
post-sales situations involving the application, presentation, and demonstration of
products will be supported by Eddy Newman, Stokes, Buddy Burrows, and Kurt Wanke. Returns and Adjustments Policy At this time, general trade customs for handling returns on food items are at 100%. We
will use the following policies: "If for some reason a product is not right for your business you may return it for
a full refund within 30 days of receipt of product. You must call 1-512-353-2220 for a
Return Authorization number (RA#). Refunds are made only on the price of the package plus
applicable taxes and do NOT include shipping costs." "Credit card refunds are credited to your account and cash/check payments are
refunded within 30 days of receipt of returned merchandise in good condition with a
RA#." We intend to follow industry custom by implementing a returns and adjustments policy on
food items whereby our products will always be fresh and new. Our reasons for this are to
keep customer happy, to have return business, and for our customers to fell save and
secure of a quality product. Advertising and Promotion Lulu's Autobahn Fuels recognizes the key to success at this time requires extensive
promotion. This must be done aggressively on a wide scale. To accomplish our sales goals,
we require an extremely capable advertising agency and public relations firm. Lulu's
Autobahn Fuels plans to advertise in newspapers such as Austin paper. Upon funding, an
agency shall be selected and, with their assistance, a comprehensive advertising and
promotion plan will be drafted. Advertising will be done independently and cooperatively
with distributors, OEM's, retailers and companies with whom Lulu's Autobahn Fuels will
have joint marketing/sales relationships. Objectives Lulu's Autobahn Fuels 's overall advertising and promotional objectives are to: Position Lulu's Autobahn Fuels as the leader in the market. Increase company awareness and brand name recognition among business managers and retailers, buyers, customers. Generate qualified sales leads and potential new distributors for field sales organization. Develop, through market research, significant information to create immediate and long-term marketing plans. Create product advertising programs supporting the clean fuels position. Coordinate sales literature, demonstration materials, telemarketing programs, and
direct response promotions in order to promote the automated fuel concept of paying at the
pump. Media Objectives Lulu's Autobahn Fuels 's media objectives are to: Gain awareness of company among industry groups, engineers, buyers, and customers and owners. Establish an image of Lulu's Autobahn Fuels as an organization that is professional, completely reliable, and highly positioned in the market. Maximize efficiency in selection and scheduling of published ads in publications to
cover all targeted markets. Media Strategy Lulu's Autobahn Fuels 's media strategy will be to: Select primary business publications with high specific market penetration. Schedule adequate frequency of ads to impact market with corporate image and product messages. Where possible, position advertising in or near industry articles on industry, product reviews, front cover, center spread or appropriate editorials. Utilize U.S. Editions of consumer, trade, or specialty publications. Take advantage of special high-interest issues of major publications when possible. Maximize ad life with monthly and weekly publications. To get the most out of our promotional budget, our media coverage will focus on a
commuteraudience. We will develop an advertising campaign built around speed, convenience, and price,
beginning with a "who we are" statement and supporting it with ads that
reinforce this message. Additionally, we will develop a consistent reach and frequency
throughout the year. Due to the nature of our product, it is necessary to run 1/4 page B&W ads. Advertising Campaign The best way to reach our potential customers is to develop an intense advertising
campaign promoting our basic premise--"that you are free to choose how you want to
fuel your car and whether you want to go into the Convenience Store (C-Store) for anything
else". To establish and maintain our company image, the delivery and tone of our statements
will be that you can get in and out of the gas pump fast with out any hassles Ads will convey the look and feel of a new and up dated Gas Station.. Research indicates that a digital sign type advertising has been used by any of our
competitors and greatly helps in increasing sales of fuel and food.. The consumer mind set, as described in Marketing Strategies is they want speed and
convenience. Ideally, after becoming familiar with our product, the consumer will feel free to come
in to the Convenience Store (C-Store), using our food products and clean restrooms. To eliminate the biggest objections to immediate action, our advertisements must
address a self service, easy on and off accessibility, attended free, and pay at the pump
convenience of our gas station and Convenience Store (C-Store). It is important to develop
a promotional campaign that is consistent and easy to understand. Accordingly, Lulu's Autobahn Fuels will created a system of research and response to
insure the maximum benefit from advertising dollars. Anticipated Response: 2,000 at $13 each. We expect to reach a total circulation/audience of 2,000,000, and to maintain that for
a period of at least 12 months. Due to the seasonal and geographical nature of our audience, we plan to target our
adds. In regard to competitor's advertising, it is necessary to address customers concerns and needs with competitive prices. Promotion In addition to standard advertising practices, we will gain considerable recognition
through price specials and tourist specials. Our products have already been installed at other gas stations, and will also be
offered in food stores like Sam's Wholesale at substantial discounts. The number of trade shows attended will be increased each year. These shows will be
attended independently and with companies with which Lulu's Autobahn Fuels will joint
marketing/sales or OEM agreements. Reports and papers will be published for trade journals and technical conferences. As a service to our audience, our products will be showcased in a gas station and
Convenience Store (C-Store) environment. This showcase will double as an ongoing beta
site. The consumer will be encouraged to bring all problems to managements attention. Incentives Fuel discounts will be give in the Convenience Store (C-Store) for products perched Direct Mail In addition to using direct mail to distribute our products, we will exercise our direct customer communications through an on going survey and daily questions from each custom being served. List Management Given the growing potential of primary channel alternatives, we are building our
capabilities in database marketing. . Our registration cards and periodic customer surveys
will help us understand our customer, and measure the success of our marketing, sales and
product activities. Profile overlays or other lists that we buy will fill in our awareness
gaps. This in-house presence will provide our sales and tech support teams with tools that
streamline their operations, while they update our customer knowledge on a daily basis. We
plan to develop a customer information system that will help us make sound decisions by
providing historical answers to the marketing questions we pose. Corporate Capabilities Brochure To portray Lulu's Autobahn Fuels as the leading supplier of state-of-the-art dynamic
products we have developed a company brochure, a copy of which is included with our
Supporting Documents. Sales Support Collateral Materials Lulu's Autobahn Fuels will developed a variety of collateral materials to support our sales efforts. These items are intended to sell our products, attract and support our distributors, and help our distributors sell our products. These items include: TV, Radio, and Newspapers Advertising Budget For the next year, advertising and promotion will require $36,000. On an ongoing basis
we will budget our advertising investment as 30% of total sales. This figure is necessary because of the monthly lease fees for the digital sign seen by
the customers on the highway and cover add costs. Our Spending vs. Industry Average Advertising: Compared to industry averages, the amount we spend on advertising is very
low and will increase sales by at least 50% Sales Promotion: Compared to industry averages, the amount we spend on Sales Promotions
are very small compared to the increase in volume of sales produced Trade: Compared to industry averages, the amount we spend on Trade Advertising is also
very small. Consumer: Compared to industry averages, the amount we spend on Consumer Advertising is
very small. Public Relations Our publicity efforts are intended to accomplish the following: Position Lulu's Autobahn Fuels at the leading edge in providing pay at the pump fuels. Increase Lulu's Autobahn Fuels 's reputation and name/brand recognition among
managers/buyers/customers in prospective companies/industries/markets. Communicate on a regular basis with three target publications: Editors of major trade, business and local publications Key management personnel in the existing customer companies Organization of employees and sales representatives Publicity Strategy During 1999, Lulu's Autobahn Fuels will focus on the following publicity strategies: Develop a sustained public relations effort, with ongoing contact between key editors
and top-level personnel. Develop a regular and consistent product update program for the major target media,
keeping key editors abreast of enhancements and new product introductions. Develop an internal newsletter that can cover key sales successes, significant
marketing and manufacturing events, technical support and product development stories.
Internally, the newsletter would be targeted at all company personnel and sales
representatives; externally the piece would be targeted at key customers and prospects. Develop a minimum of four technical articles written by key executives or engineers to
be placed in a key publication within the next 12 months. Establish contact with editorial staff for the purpose of being included in product
"round-Uninterrupted Power Source (UPS)"--product comparisons in publications
where competing products are compared. This exposure builds credibility and market
acceptance. Produce a complete company back grounder on Lulu's Autobahn Fuels to be used as the primary public relations tool for all target media editorial contact. This will also be effective for inclusion in press kits, dealer kits and sales packages. The back grounder would include sections on the following broad subjects: Overview of the Market: Size; characteristics. The Market present and future. The Company: History, management philosophy, brief sketches of top executives The Products and market niches Major Sales Announcement Major contract agreements representing sales volumes of over $900,000 will be written
up and released to selected media as soon as practical after the signing of papers.
Ideally, these will be joint announcements. Concurrently, a shortened version of the
release will be mailed to all internal and external sales organizations. Press Release Lulu's Autobahn Fuels will be developing a series of press releases on the entire
product line. Press releases will also be prepared for each new product introduction,
technical development, major event participation, and awards/recognition for excellence
and/or performance of our products and personnel. Editorial Visitation Over the next 12 months we will invite influential reporters and editors from
publications in our industry for a visit to Lulu's Autobahn Fuels . During the visit, each
of the editors would receive a complete facility tour, product briefing, and an
opportunity to interview the chairman, president, product designer and marketing manager.
If logistics or timing is a problem with the interviews, then these could possibly be
arranged at the major trade shows. Trade Shows Lulu's Autobahn Fuels participates in the following types of trade shows: Gasoline
equipment, fuel equipment, and Convenience Store (C-Store) equipment. In the past, we have
concentrated on shows geared to fuels. It is now time to expand our horizons to shows that
computerized systems for gas stations and Convenience Store (C-Store)s. In deciding on the Lulu's Autobahn Fuels plan for trade shows, the following factors
have been taken into consideration: Target audience of the show--will this get the message to our target market? Geographic location--a good mix of shows around the country. Time frame--preferably no more than one show a month. Past experience--if any with the show. Participation in someone else's booth. Based on the above considerations, these shows have been chosen for 2000: By Wayne
Dresser and shows that focus combining gasoline and food for road travelers Internal/External Newsletter We currently plan to produce newsletter to serve as an informational piece for internal
personnel, the sales force, and key customers. It includes sections covering each major
department or organization within Lulu's Autobahn Fuels and a message from the executive
staff. It also highlights major developments, such as key sales stories, successful
customer applications/uses/installations, significant marketing events, and product
development news. Publicity Revenues We anticipate at least $180,000 of sales will be generated directly from our publicity, and possibly and additional $108,000 of indirect increase in sales throughout our various channels. |