AUDI BMW and Porche Essay
AUDI BMW and Porche
Therefore spending so much cost on a research and then coming up with a product which will also have competitors makes the game risky for these auto players. At times these cars fail due to even minute technological advantage that the other competitor car might have. AUDI BMW and Porche launched their SUV’s a long time back and thus they have captured a lot of market share in the industry (Bloch 1986). Therefore in order to make its place in the market for its first ever SUV, Lamborghini will have to in other words re-enter the market for sports cars in the SUV category.
Like other industries there will be barriers to entry for Lamborghini in this category and one of the most prominent barriers to entry in this market is the brand loyalty of the customers. Brands do their level best in order to retain their customers what so ever and thus Lamborghini will have to work very hard in order to make its place in the market. In this situation analysis when we use the PEST model, we take into account Political, Economical, Social and Technological environment in the industry.
The political side of the economy does not seem to be so effecting on the new SUV, however the economical, social and technological need to be considered by the company. Although there has been a slump in the US economy over all, however the number of those who have become even richer has increased and thus increased the base of potential target market. Moreover social trend of customers and buyers towards owning a sports car as a status symbol and as a sports car has opened new gates to opportunities for the company.
Lastly advancements in technology poses both a threat and an opportunity for the new Lamborghini because if the company is able to market its technological advancements well enough then it can have a competitive edge over the existing cars and other wise it will only add another negative comment in its customer feedback cart. In current situational analysis a company also uses the 4Ps of marketing that are known as product, price, Positioning and Promotion in its marketing strategy in order to keep its marketing strategy in line with the current situation of the company.
Moreover, apart from the situational analysis Lamborghini also needs to take into account its objectives of operation before it goes on to develop its marketing strategy. In this objective analysis Lamborghini has to take into account the 5p model by Pryor, White and Toombs. These 5ps are the purpose of the organization, the purpose of its process, the principals that the company has to follow as an objective, the people it has to serve and the level of performance the company has to achieve by its operations.
Without taking these five factors, a Lamborghini will not be able to devise a strategic marketing plan that is n line with the company’s objectives and goals (Altaner 2000). Moving on to the strategy, Lamborghini will have to look at the market from two different perspectives. First it will have to segment the target market into different sections, and then the company will position the SUV in the auto industry accordingly in order to serve all targeted segments of the market.
A simple example of segment can be the two groups of target market that are the status conscious people and the sports lovers. Although there are a number of other segmentations under these heads however for the time being we have included just the main two of them. The Lamborghini SUV will be positioned differently among the two segments for example, in case of sports lovers, the company may launch its SUV on a racing track and on the other hand for status conscious people, a company might also arrange for a formal ceremony at a 5 star hotel.
Further more in the tactical plan a company has to look into what will be its major communication tools that it will need in order to implement its strategic marketing strategy. For this Lamborghini might take into account various kinds of media in order to market its product. Lamborghini can first of all give its adds in so many auto industry based news papers and magazines already available in the market. For Lamborghini they might be marketing adds but for customers they might look like articles and reports on the upcoming SUV by Lamborghini.
Then the company must distribute copies of these magazines at top notch corporate firms, elite hotels, clubs and show rooms. Apart from these the company should also launch a campaign over the internet at its site and should use search engines like Yahoo and Google in order to direct viewers to the company’s main site where they will be exposed to all sort of information about the new SUV. Moreover the company might also sponsor TV shows in order to give the viewers a live exposure of the SUV and a chance to compare the SUV with other cars (Sirininivasa 1991).
Lamborghini should also select suitable locations by which we mean at posh areas of the locality in order to be accessible to the rich people living nearby. A Lamborghini may not attract potential buyers at the down town but the scenario will be totally opposite if it would have been Beverly hills’ and similar areas. Marketing events that also take help of opinion leader of the society can also be useful to change the opinion of many customers who are loyal to other brands.
These opinion leaders can be former racing drivers and champions. By also answering how the company might use its communication tools in the discussion above we now move towards the tactical planning the company might need. By this we mean that the company might have to take into account the message it wants to communicate, the consistency of different communication tools and messages being implemented in the strategy and lastly the necessary budgets and resources a company might need in order to implement these communication tools.
Lastly in action and control part a company has to define what are the different activities that need to be performed? Who will perform them and why will they be the only ones to perform them (refers to their compatibility and capability)? How the resources are going to be allocated, checked and audited? What will be the benchmarks for performance and how will it be measured and recorded? These questions are essential for any organization in order to keep its marketing strategy and its implementation on track and consistent (MacMillan 1997).
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 5 June 2017
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