Strategy and positioning paper
Dan Goodman, Joel Queenan, Dean Sitzler
MKT/421
December 22, 2015
Mr. Peter Francis

Strategy and positioning paper
For any firm to be successful in the business world it needs to have a plan and it needs to appropriately position itself within the market in which it operates. These plans are part of the strategic planning process that occur within an organization and invariably incorporate the skill sets of an effective marketing team. “Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.” (Kerin, Hartley, & Rudelius, 2015, p. 6). By creating an effective marketing strategy the firm can ensure that it is creating value for both the firm and the customer which fosters longevity and sustainability. Furthermore, by establishing a solid positioning strategy as well the firm can be focused and resolute in the market where it does business through effective representation and presentation of its product and or service. In this paper we will examine a fictitious company called Hydro-Cell and the different elements of its marketing strategy and positioning plan.
Company overview Hydro-Cell is a brand new company founded in December of 2015 by Team Balleristic. The team has and has extensive knowledge of the automotive technologies and chemical expertise. Hydro-Cell products demonstrate the team’s passion for the automotive industry and interest in protecting the environment for future generations. The products of the team utilize current technology in new ways to improve the fuel mileage of current vehicles on the road. Hydro-Cell is a relatively new company and is currently only available on a word of mouth basis. The company has plans to start a website for customers to purchase the product directly, and the company will also penetrate into the automotive repair business. This is where the Hydro-Cell could be installed by a qualified technician. Hydro-Cell is a very “green” minded company that uses recycled materials when available for production and encourages recycling throughout our community.
Product description
The Hydro-Cell product is like no other on the market today. In simple terms it is an onboard system that uses electrolysis to pull hydrogen form water and inject it into a car’s ignition system. The product holds two gallons of water and is wired directly to a customer’s vehicle electrical system. This system increases a vehicle’s fuel economy by at least fifty percent. Hydro-Cell units are custom fit for each vehicle application, which gives the product an original equipment manufacturer look (OEM). All of our products are completely automated and only require the addition of water during regular refueling and a simple replacement of a stainless steel core once every 45,000 miles.
Competitive analysis
This technology for use in current automobiles is completely untapped. The company Water to Gas had a few products, however, they have the appearance that they were made from simple store bought in line water filters. No available products seem to be of high enough quality to withstand the extreme temperatures found under the hood of an automobile for more than a year. In addition there are no products available or designed that are vehicle specific. With Hydro-cell, customers will simply be able to type in the current make and model of a vehicle and be able to see if a system is available. To make installation easy for customers, during our testing processes we will produce vehicle specific install video for those who wish to install the system on their own vehicles. The same video is utilized to train the technicians who might be hired by customers to install systems. We presently have a 3 year plan to have systems available for all major make and models that will be available and are available. Also, we will have conversion kits that will allow Hydro-Cell to be installed into many cars that may not be in the system.
In addition to the benefits already presented, there are no other firms offering a delayed shut off to evacuate the lines of the gas (fuel) before turning off the vehicle. Nor is the use of high grade automotive plastic, similar to what is currently used to make intake manifolds and valve covers, found in any of the competition’s products. Hydro-Cell will be produced using high grade automotive plastic giving us a clear advantage among the competition in terms of quality and durability. In comparison to the competitors Hydro-Cells system will be larger and vehicle specific shaped which means, the customer will not add water as often, and have a more efficient running system.
Target market
The Target Market of Hydro-Cell will change as the company grows and more people become confident in the product that we sell. The initial target market will be specifically owners of small repair shops. Shop owners are the people that Hydro-Cell needs to convince and stand behind our products. The shop owner is important because these are the people that customers ask for advice about their vehicles. If we have a great product and are beneficial to the customer the shop owner will see this and want to install this system on customers’ vehicles. In addition, when the customer sees the benefit of our product they will recommend that specific mechanics shop to others. This will create a win-win relationship with Hydro-Cell and shop owners.
Shop owners should ideally target parents the ages of 30 and 45 who take their vehicle in for regular services for the purchase of a Hydro-Cell system. These ages are important because they more likely to seek ways to improve the environment for their children. They are also starting families and are likely to have the need for a larger vehicle which tends to have worse gas mileage than small cars. Our product would help them lower the cost of driving that larger vehicle.
The second target market will be fleet owners. Once a diesel product is produced our company will have a large advantage over most. A team member’s brother-in-law is the president of dry van operations for Knight Transportation, he has already committed to the install of 15 units on his fleet trucks. In addition to commercial transportation fleets we would also approach local government and even the police departments because they are always interested in saving some money on their outrageous fuel cost. The third market would be the mass market sales through the internet. This will be the most labor intensive, needing a technical support line and a very extensive website. When our company begins to sell direct to the customers we need all the bugs of the system completely worked out. This is important because dealing with customers directly one can develop a bad name very quickly if things are not going smooth.
The fourth market would be the world wide Taxi and Chauffeur market. Being able to introduce this product to these companies would not only save the company money, but the drivers would be spending less in fuel every day. According to Bureau of Labor Statistics (n.d.), there were approximately 178,260 employed taxi drivers or chauffeurs employed in the United States in 2014, (Occupational Employment and Wages May 2014). and the market showing a 1.4% increase in 2015. Once our product begins to be recognized and people realize the money to be saved, we feel very strong that the taxi and chauffeur market in the U.S. and worldwide will be amongst one of our highest customers.
Needs that cause the target market to buy
In the business world where large vehicle fleets are operated the cost of fuel is the single greatest expense. According to Automotive Fleet (2015), "Fuel continues to be the No. 1 fleet spend. As new engines and new transmissions become available, fleets are evaluating these and their impact on fuel costs". This expense is enormous and is only exacerbated by the fact that the expense is inextricably tied to the price of oil. As the volatility of the commodity ebbs and flows so too does the cost for businesses. In order to hedge this factor and create more predictability and control Hydro-Cell’s products will be the fleet manager’s answer to this challenge. By dramatically reducing fuel consumption the Hydro-Cell technology and products will create stability in budgeting the expense and reduce the impact to the bottom line.
For the average consumer the impact of fuel prices are not as dramatic on expenses as would be with a vehicle fleet. However, in a time in which the middle class is struggling as much as it ever has anywhere where money can be saved is an idea worth looking into. Hydro-Cell affords the opportunity of the average consumer to reduce the consumption of fuel and as a result creating direct savings that can be retained by the consumer. As previously noted many families with where the parents are in the 30-45 age range drive larger vehicles which are less fuel efficient than that driven by the average young adult and by that of seniors as well. By creating an environment where a large portion of the population reduces the consumption of fuel the long term effect is a decrease in demand which ultimately results in a decrease in price. The utilization of Hydro-Cell products and technology would be a win for all consumers far and wide.
Positioning statement
Hydro-Cells mission is to be the industry standard for the production of high quality, safe, and easy to install hydrogen producing products for a wide variety of vehicles. We want to have our customers to fall in love with driving again by, significantly reducing the cost of driving and increasing the range of current vehicles.
Conclusion
In conclusion, a strategy on how to sustain a firm and a plan on how to position itself in the market is invaluable. Success in life is rarely achieved without having a plan to execute ones desires effectively and the same principle holds true in the business world. Through careful planning a company can focus its efforts and bolster its chances at success in whatever endeavor it pursues.

Reference
Automotive Fleet. (2015). Fleet operating costs remain flat in 2013. Retrieved from http://www.automotive-fleet.com/article/story/2013/11/fleet-operating-costs-remain-flat-in-2013.aspx
Bureau Of Labor Statistics. (n.d.). Retrieved from http://http://www.bls.gov/oes/current/oes533041.htm
Kerin, R. A., Hartley, S. W., & Rudelius, W. (2015). Marketing (12th ed.). New York, NY: McGraw-Hill.