Subject: Marketing Plan Format
Summary: Energy World, Inc. (EWI) is a supplier of equipment to the energy industry and is in a position to capitalize on the growing demand for energy production, refining, and distribution equipment. EWI reorganized into three divisions - oil refinery, liquefied natural gas (LNG), and solar & wind equipment - and also acquired two businesses to form a fourth division - power plant equipment. All divisions, with the exception of division 1 (oil refinery) in domestic markets, are not meeting growth targets. Overseas expansion is being subsidized by strength in existing markets. The marketing plan would have been adequate if EWI was one division. The main flaws were insufficient market research, poor execution, and lack of control procedures. Following reorganization, the marketing plan should have been revised to accommodate each division.
Division 1 - Division 1 should continue to invest heavily in domestic markets, as sales and profits are exceeding forecasts by >30%. However, additional hires are needed for international sales, which should focus exclusively on emerging markets developing refining industries, including China and India. - Division 1 has high domestic margins, but is investing little to no effort in acquiring business overseas. Assign or train additional hires (technical specialists and salespeople) to increase field sales coverage and modify products to attract sales abroad. Price accordingly.
Division 2 - Division 2 should focus international efforts on countries with plans in place to develop natural gas fields, including the Mid-East, Africa, Australia, and Indonesia.