The paper 'Market Diversification Strategy for Compact and Small Car Market in China" is a good example of a marketing case study. China is one of the two countries that are most populous in the world and the automotive industry is one of the five biggest industries in the country. The decade has particularly seen a massive growth of this industry which has surpassed many others. This is a market diversification proposal on the diversification of the compact and small car market in China, for the Holden Balarina Product line. The proposal will be based on the current situation of the Chinese market.
China is the most vibrant automobile market in the world currently and has remained so for the last about four years or so. The country’ s volumes in terms of growth of the automobile industry are twice that of India which is rated number two in the world and this can be explained by the fact that the two Asian countries are the most populous in the world. China is a market to about 75% of small cars, and this can be explained by the fact that fuel prices are quite low in China; the country has a very viable infrastructure when it comes to foreign investment and also that diverse consumer perceptions abound in China (Sahar, 2008).
Rising growth rates in the numbers of vehicles, the incorporation of “ country road tax into fuel price” and “ second-car” consumption are some of the factors that could encourage the need for small cars in the Chinese market. This paper will review factors that concern the market for a compact and small car in China to establish how new compact and small cars are likely to fair (China Association of Automotive Manufacturers and Xinhua, 2007). Objectives This proposal will seek to evaluate the following areas: A brief background of the Chinese market for compact and small cars A market analysis A SWOT analysis A study of a suitable marketing plan A study of a marketing mix 1.2.
Brief Background The Chinese market has constantly been enticing the makers of autos due to its potential when it comes to profits and its potential for growth. The makers of Automakers in the United States of America particularly view the Chinese market as the place where they could make up for the diminishing profits back home.
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