Marketing Plan for Alpha Lujo - Case Study Example

Marketing Plan: ALPHA LUJO Introduction The recent fluctuations of oil prices in the world has necessitated the development of new forms of fuel sources or innovation of technology that tend to use less or no oil at all. One of these technologies is the introduction of electric vehicles which is a new trend that is catching up. In the Australian market, several electric cars have been launched in the market and this paper is going to analyse marketing strategies to be used in marketing a specific electric car model. The ALPHA LUJO is an electric car produced by TIENS limited in China and it is marketed globally. It’s entry into the Australian market has been late but it has been remarkable due to early entry of other hybrid vehicles. ALPHA LUJO is a hybrid car which consumes around 15KW of electricity; the car operates on a speed of around 80-100 km/hr. The car comes in three models with a mean market value of $ 18,000 which makes the car economical compared to fuel consuming vehicles. The production of the car was done into 2-seater and 4-seater vehicles which are suited for personal and family uses. The strategy to market the vehicle is based on its qualities, performance and cost factors. The car has the ability to do well, this compared to other hybrid models because the car passed international crash tests. For ALPHA LUJO to launch successful sales and market presence in Australia, a marketing strategy needs to be developed (Porter, 2005). This paper will analyze the different strategies to be used by TIENS limited to launch its vehicle in Australia. ALPHA LUJO’s marketing strategy will look into marketing objectives, situational analysis and target using three variables namely: price, promotion and channel of distribution. Marketing Strategies In the introduction and eventual marketing of ALPHA LUJO into the Australian market, the TIENS Company has to come up with strong marketing strategies which will ultimately achieve its objectives. For a successful implementation of a marketing strategy, an organization needs to set clear objectives that are scheduled based on either time frames or achievements accomplished (Payne, 1993). The ALPHA LUJO being a vehicle that has been marketed in other parts of the world shows a product which has been fully produced and tested successfully in other markets. In launching and selling its vehicles internationally, TIENS Company must have set out its objectives with intention of meeting these targets. For instance, in this situation is TIENS interested in ALPHA LUJO gaining market leadership in the Australian hybrid vehicle market or is the company interested in exploiting the un-served market in the region (Gronroos, 2006). Another important factor that needs consideration is situational analysis, this is a technique where the firm analyses the current position of its product through use of different methods. Some of the methods include use of SWOT analysis, external analysis or customer analysis. In marketing a product, an organization needs identify its target market and market its products to that market segment. In this situation, what is ALPHA LUJO’s target market? These strategies in this situation will be implemented using four marketing techniques namely: product, price, promotion and channel of distribution (Kemp, 2003). Implementing Marketing Strategies Product The ALPHA LUJO is a hybrid car which is produced in two models namely MyEV118 and MyEV128. The two models are two and four door sedans suited for single and family people. The ALPHA LUJO has been satisfied as one of the safest cars to travel in as a result of safety tests subjected to the car. Therefore this makes the car easily marketable to young and old people alike and thus the target market for the ALPHA LUJO is spread across the Australian population. The ALPHA LUJO is a hybrid vehicle and therefore is easier to maintain compared to fuel powered vehicles which constantly need maintenance (Rowland, 2008). For instance the ALPHA LUJO goes for longer mileages before a battery replacement is necessary compared to fuel powered vehicle which need routine engine very often. TIENS Company should market the ALPHA LUJO as the vehicle of the future since the car is equipped with a lot of technological friendly features making the car most suitable for use by Australians. The ALPHA LUJO is an affordable car to own since it is efficient and consumes absolutely no gasoline and thus this makes the car suitable for the upwardly mobile citizens in Australia especially young employed people. The car is also suitable to old people who do not need to be pressurised in maintaining a vehicle (Gerber, 2002). The ALPHA LUJO being a hybrid vehicle its use is environmentally safe and friendly and therefore many Australians will purchase this vehicle in attempts to reduce harmful gas emissions. Based on performance and efficiency, the ALPHA LUJO can perform like other fuel powered vehicles and thus when marketing the vehicle, TIENS Company should market the car as a more efficient vehicle compared to other vehicles. The ALPHA LUJO can leverage the vehicle as a more efficient and safe car to use for the family and personal uses (Kemp, 2003). When you are marketing a product you highlight the benefits the product has over other product varieties. The ALPHA LUJO is a car which has passed international safety tests and thus it is a safe, affordable and efficient car compared to other fuel powered vehicles. Apart from safety, the ALPHA LUJO is well suited for the Australian market since most of the Australian population live around urban areas most people own sedans. This makes the ALPHA LUJO a suitable vehicle for Australians because the ALPHA LUJO is produced in three sedan models. Price One of the important factors that a consumer considers when purchasing a vehicle is its cost. The ALPHA LUJO retails at a price of $ 18,000 and this price is reasonable considered to other vehicles. The price of a vehicle determines if the vehicle is worth purchasing it or not. The price of the ALPHA LUJO is affordable and considerably cheap compared to fuel powered sedans which retail from between $ 20,000 and $ 30,000. In marketing the ALPHA LUJO to the Australian market, the TIENS Company should consider marketing the vehicle with the intention of the vehicle being in the Australian market for the long-term. If the company market the car with long-term prosperity intentions then there is likelihood that the ALPHA LUJO will gain a strong market share in the future. The ALPHA LUJO will be marketed with the intention of it being the Australian market for a long period of time and therefore the company will price its vehicle cheaply and affordable to the Australian market. The ALPHA LUJO intends to sell at affordable prices and therefore position itself to capture the market. This would especially target the lower end segment of the Australian population with intention of owning an affordable and quality vehicle (Khan, 2003). The importance of the pricing method determines how well the product will fair out in a competitive/new market. Hybrid cars came into the scene in the year 1999 and as of now there are several manufacturers who produce hybrid/electric cars. Due to this, the ALPHA LUJO will price its vehicles based on competitive-based pricing. The increased competition in the hybrid vehicle market will necessitate plans for the ALPHA LUJO to price its cars cheaply for the Australian market to acquire its vehicle models and sample out the technology and quality of the ALPHA LUJO. Competitive based pricing is very important for the ALPHA LUJO since it helps the car to market itself in a competitive hybrid market in Australia which is dominated by established brands such as Toyota and Honda which produce well known hybrid brands such as the Toyota Prius and Honda Insight (Porter, 2005). For that reason, the ALPHA LUJO will be sold at prices lower than the competition for the cars to sell more and penetrate the market controlled by these established brands. ALPHA LUJO’s pricing strategy will also focus on the model of unit pricing, whereby large discounts will be offered to consumers who purchase more than two of the vehicles. Through such a strategy the company will be able to sell more units across Australia and thus gaining a better market share in the country (Rowland, 2008). Promotion The idea of promotion looks into processes used in popularising a product to a specific or unintended market or population. Some of the most popular promotion methods include the use of video advertising, sampling or direct marketing. TIENS Company will roll out several promotion methods for the ALPHA LUJO in the Australian market; the promotion strategies are usually aimed at creating awareness, to stimulate demand or building and maintaining competitive advantages (Chris, 2001). The ALPHA LUJO will be marketed using a combination of promotion methods. The most effective promotion method that will be deployed is use of TV and online advertising, these media types reach a lot audience and thus it would be the most effective mode of promotion to use. The use of TV and online advertising affords the ALPHA LUJO to advertise the features of the car and thus through these methods could be effective in capturing the interest of automobile consumers (Khan, 2003). The ALPHA LUJO will combine use of pull and push strategies aimed at gaining market recognition and engaging the channel of distribution in marketing the ALPHA LUJO. Pull strategies are used in attracting consumers to purchase a product, in the case of the ALPHA LUJO the company will make use of direct marketing to target consumers to purchase the vehicle (Gerber, 2002). Another pull strategy that could be employed is the use of sampling, ALPHA LUJO could offer free test drives to potential consumers through their channels of distribution. As a result, consumers can have the experience of owning an ALPHA LUJO and this could help consumers in experiencing firsthand what it entails to possess an ALPHA LUJO. Test drives are effective advertising forms towards potential consumers. An additional form of advertising could be the use advertising in magazines and newspapers. Advertising in automobile magazines is very effective in capturing motoring enthusiasts and thus the ALPHA LUJO could capture the market through use of this media (Chris, 2001). Push strategies that could be used in marketing the ALPHA LUJO include the use of motoring events to market and launch the ALPHA LUJO to the Australian market. Motoring events are usually attended by inquisitive consumers and these events provide an opportunity for consumers to easily sample and make choices on the cars they would like to purchase. Local Australian motor shows are best placed to engage the Australian market to sample the car and let them make a decision. On such occasions the ALPHA LUJO could showcase their strengths over its competitors. Channel of Distribution In marketing a product, the producer or manufacturer has to identify how the car is going get to the intended or targeted consumers. A channel of distribution is the means under which a product will get from the manufacturer/producer all the way to the consumer. In making a decision in which to select a channel of distribution, several factors are considered. How suited is the channel of distribution for specific product. Motor vehicles are usually distributed through use of motor dealer franchises of manufacturer retail centre in the target markets. In the case of ALPHA LUJO, the company will distribute its vehicles through well established automobile dealers (Oliva, 2009). Marketing through the use of well franchised automobile dealers helps the company gain market presence in whole of Australia. Within the channel of distribution, consumer ordering is very important and in the case of ALPHA LUJO, consumers will either order/purchase their vehicles either through motor vehicle dealers or through online ordering system (Gronroos, 2006). Since ALPHA LUJO will be launching a new car into the foreign Australian market, locally placed retailers will be the best placed resellers for the ALPHA LUJO. The ALPHA LUJO could decide to establish an Australian assembly plant to produce its vehicles and could ease the challenge in distributing the vehicles within the Australian market. In addition the assembly plant will enable mass production of vehicles which are cheap to market compared to imported vehicles. The consideration for the using large distributors in Australia is a good marketing strategy although it might not get the desired effect of penetrating the Australian market. The best channel of distribution approach in marketing is for ALPHA LUJO to set up local units in Australia that solely deals with selling the ALPHA LUJO models in Australia. By setting up local ALPHA LUJO franchises in Australia will be beneficial to the company in that it will be able to cater for the needs of its consumers closely and gauge market reaction to the release of the ALPHA LUJO in Australia. By setting up local shops, the ALPHA LUJO’s new customers will get after sales services and get an opportunity to interact closely to its target market. In distributing cars in the Australian market, transportation to key consumer areas in very important and in the case of the ALPHA LUJO, sea and road transport will be utilised (Karami, 2007). The choice of sea transport is due to the factor that the vehicle is produced outside Australia and thus sea transport will be used to get the cars to Australia. While on the other hand road transport will be used within the Australian market in distributing the ALPHA LUJO. These modes of transport are efficient and make the ALPHA LUJO affordable to the Australian market. Conclusion Marketing is an essential skill in the world of business; it ensures products are sold to consumers based on their needs and demand. Marketing is usually useful in creating product awareness and differentiating your products from the competition. Automobile marketing is a very difficult and intricate task that needs use of different strategies to differentiate from your competitions. In the case of the ALPHA LUJO, the hybrid vehicle which has been marketed in other countries is planning to launch into the Australian market. Marketing strategies used by the ALPHA LUJO in launching the product into Australia focuses on mainly strategies in penetrating an already crowded market and establishing a loyal following in the Australian market. The ALPHA LUJO will be marketed in Australia using four main marketing strategies which focus on the product, price, promotion and channel of distribution (Chris, 2001). For the ALPHA LUJO to successfully launch in the Australian market there needs to be efficient marketing strategies which look into the analysis of the Australian automobile consumers and conduct target marketing for effective sales. The main strategies that the ALPHA LUJO has deployed in the Australian market include the use of pricing strategy and thus they will be able to capture the attention of the young people who prefer affordable and efficient vehicles. ALPHA LUJO’s safety record is a selling point that marketers in the TIENS Company need to exploit to conduct sales in the Australian market. Hybrid vehicles are more efficient compared to the traditional fuel powered vehicles and consequently the ALPHA LUJO should be marketed aggressively against gasoline powered vehicles. The most important factor in marketing is sticking to your strategy and using one’s strength over the competition to win the market. Once the market has been captured the key strategy would be to maintain market share. This is evidenced by the strategy of the ALPHA LUJO in launching its vehicles into Australia. References Chris, H., 2001. Advertising and Promotion: An Integrated Marketing Communications Approach. London: Sage publication ltd. Gerber, C. and Plessis, D., 2002. FCS Marketing Communication. Chicago, IL: John Wiley and Sons. Gronroos, C., 2006. Definint Marketing: A Market Oriented Approach. European Journal of Marketing, 23(1), p.52. Karami, A., 2007. Strategy formulation in entrepreneurial firms. Lowell, MA: Ashgate publishing limited. Kemp, S. and Dwyer, L., 2003. Marketing strategies in the automobile industry: a content analysis. Boston, MA: McGraw Hill. Oliva, R. and Sterman, J. D., 2009. Market Penetration: Skills in marketing. Sydney: Australia. Khan, S., 2003. Strategic Marketing: Making Decisions For Strategic Advantage. 4th ed. New Delhi: PHI Learning Pvt. Ltd. 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