As a part of my course in business study, I have to produce a marketing strategy for a new or existing product.
In this coursework I will be investigating and analysing the following aspects of my chosen product, which is Peugeot cars, illustrating “marketing”.
* Use primary and secondary data
* Judge a marketing strategy for a product or service
* Analyse the external influences affecting the development of the marketing strategy
* Create a realistic rationale for the development of a coherent marketing for the product
* Use presentation skills of marketing to an informed audience
* How marketing and market research affects choice of marketing strategy
* Identify, collect and use information relevant to marketing strategy
* Links between analysis of external influences and development of marketing strategy
* Make reasoned proposals for marketing mix, clearly linking proposals to information generated by analysis
* Identify, collect information and apply appropriate methods for checking validity
* Use appropriate models and tools to evaluate likely success of marketing strategy
* Evaluate reliability of different marketing models used
* Develop a well balanced marketing strategy that reflects appropriate use of marketing models and tools
My coursework will involve developing a detailed study of each of the above points that I have stated for Peugeot cars.
I also researched various company of my choice, including Mercedes, BMW, Nissan, and ford.
I contacted all of the above companies by email as I found this a very quick way to receive a reply. Many of the above companies did reply back to me, but I decided Peugeot was probably the best interest as I got email as well as brochures for different cars by post.
(Email shown after)
The reason I have chosen Peugeot is because I think it has the potential to be successful for the coming years as well as they have been in the past.
At present Peugeot seems to have a car appealing to ages between 20-35. I will be investigating to see if this is true by looking at primary and secondary research. I will look at Peugeot as a whole and as individual cars to see what changes have happened from the past years.
Brief history of Peugeot
In 1906 one of the brothers, Robert, set up a rival make in the original factory, calling it Lion – Peugeot. In a short time the two companies came together, with the Lion, the symbol of the city of Belfort, still used as the Peugeot logo.
In 1912, Peugeot’s first small car appeared. The Bebe was designed by Bugatti and became a classic design of the period. It was in 1936 that the Peugeot tradition of using three – figure model designation, all with a zero in the middle in the middle, started with the 402.
What Peugeot lacked at this period was image. That started to change with the 1977 launch of the 205. It set new standards in looks, handling and, after a slightly rocky start, performance with the GTI versions. The ultimate 205 was the mid – engined, turbocharged, 4wd.
From then on, Peugeots set new standards for handling their ordinary prices. Peugeot scored two more hits with the 106 supermini, launched in 1991, and the 306 in 1993, intended between them to replace the much loved 205. The 205 in fact went on until 1996 in increasing restricted numbers but it still sold well. Peugeot realised its mistake too late to develop a replacement in time, but the 206 has done well since introduction in 1998. it does not stand out from the crowd the way 205 used to, but handles looks and drives well the way a Peugeot should. By 2000, 306 too were nearing the end of its model life.
The impressive 406 replaced 405 in 1996, high build quality. Peugeot’s advertising has frequently been among its strongest assets, with effective campaigns boosting the image of 406 and 306 ranges particularly effectively. The 406 coupe, expensive for Peugeot but an exceptionally beautiful car at launch, has also helped the image.
Nowadays in 2003 there are many Peugeot cars. Most brought cars are 206 because of their shape and style.
106, 206, 307, 406, 607, and 807 are the latest cars people want to buy.
106 206 307 406
Europe’s second biggest carmaker sold 2.82 million vehicles last year, 12
percent more than a year earlier, as told on the Peugeot website amid an unchanged European market where it gets more than four fifths of sales. The Peugeot brand accounted for 1.68 million vehicles and Citroen sold 1.14 million cars. Peugeot shares rose as much as 11 euros, or 4.6 percent, to 249 euros. The carmaker’s sales in 2000 went beyond its forecast of 2.7 million cars by 4 percent. Peugeot had expected yearly sales of 3 million vehicles “before 2003.” This year sales are expected to get a boost from the introduction of the Peugeot 206 CC convertible which went on sale.
The company, which has seen its shares, rise to record levels over the past month, also proposed a six-for-one stock split.
The company’s shares ended up 0.04% at 278.1 euros not far below last month’s record of 283 euros.
The shares have increased by about 40% since the middle of October.
The best-sellers are the Camry and Corolla saloons and the ES300 from its luxury Lexus brand in North America, where the Japanese carmaker has about 10% market share and is the top-selling foreign brand. Toyota sold 3.01 million vehicles worldwide, up 12% from 2.69 million last year. (From bbc.co.uk and www.ananova.com/business/story) from this you can tell Toyota is the leader in the leader In Europe. Peugeot is close as they sold 2.82 million. The difference is only 0.19.
Overseas sales enjoyed the biggest gains, rising 23% to 1.99 million vehicles – two-thirds of Toyota’s worldwide sales. Peugeot looks to be heading well on its way to get first place in Europe.
Email from Peugeot
Dear Mr Vasant,
Thank you for the interest you have shown in the Peugeot brand.
You wrote to ask for information on Peugeot for use in your studies.
In 1812 two brothers, Jean-Frï¿½dï¿½ric and Jean-Pierre Peugeot, converted the
Family windmill into a factory producing high quality steel for clock springs
and saw-blades. The quality of the steel was certified by the local authorities
in the Franche-Comte region of France by a stamp in the form of a lion. When the
Peugeot Brothers started manufacturing bicycles and then motor cars, they used
the same high quality steel and adopted the Lion as their logo.
For further information on the history of Automobiles Peugeot, I recommend a
Visit to the website of the Peugeot Museum. First, connect to
www.peugeot-avenue.com, then click successively on “English”, “History”, and
“Museum”. On the site you can read about the creation of “Peugeot Frï¿½res” in
1812, the appearance of the first bicycles in 1882, the launch of the first
Petrol-engine cars in 1890, the 0 in the middle of the name of each Peugeot
Model, charcoal-powered cars that appeared during the Second World War, and a
great deal more.
You can also contact the Museum by post at the following address:
Le Musï¿½e Peugeot
Carrefour de L’Europe
and by telephone (Monday to Friday, from 9.00 am until 5.00 pm) on:
00 33 3 81 99 42 03
To receive further information on the company, please contact the Consumer
Relations Department in writing at the Head Office at the following address:
Direction des Relations avec les Consommateurs
75, Avenue de la Grande Armï¿½e
I do not have an e-mail address for the department.
You may also find it useful to visit www.psa.fr. This is the official website of
the Group PSA Peugeot Citroï¿½n, and it provides a whole range of news and
information under various different categories including Technology, Careers,
Strategy and Finance.
The Peugeot subsidiary in the UK may also be able to help with your research.
Their address is:
Peugeot Motor Company
P.O. Box 227
CV3 1 LT (PG)
Tel: (44) 24 76 88 40 00
Fax: (44) 24 76 88 40 01
Peugeot Open line: 0845 200 1234
You can also contact them by e-mail, using the contact link on their website
www.peugeot.co.uk (click on the “telephone” icon just beneath “Your local
dealer”. On the site you will also find comprehensive information concerning
Peugeot products, services and the dealer network in your country.
Please do not hesitate to contact me should you require any further information.
I hope to see you soon at www.peugeot-avenue.com.
Peugeot Customer Contact Centre
Principles of marketing
There are a number of things that a company such as Peugeot must do in order to keep in business. These things are the main principles of marketing and if Peugeot don’t take them into consideration then they will loose their customers and go out of business.
There are many main principles of marketing. They are:
* Understanding customer needs
* Peugeot must keep ahead of the competition
* Communicate effectively with customers to satisfy customer expectations
* Understanding the Market
* Being aware of constraints on marketing activities
* Co-ordinate its functions to achieve marketing aims
In order to create my marketing strategy for Peugeot, I must understand the principles of marketing listed above. In the following paragraphs, I have summarised what each principle involves, as well as describing how I would base my marketing strategy around it. For each principle, I have given realistic examples.
UNDERSTANDING CUSTOMER NEEDS
Peugeot need to identify and understand the needs of both their existing customers, as well as any new potential customers. They will need to adapt their marketing approach to meet the need of these customers. If companies continually review all aspects of their products, making sure they still meet the requirements of the customers using the 4 P’s, it will help to increase the number of repeat purchases/orders. Repeat purchases and orders go towards showing how successful the product is, and how successfully it is meeting the expectations of the customers.
Keeping Ahead Of the Competition
One of the most important factors in any market is the life and strength of any competition. The market for the Peugeot is competitive so Peugeot are forced to be on their toes. They cannot allow rivals like Vauxhall or Citroï¿½n to gain an advantage over them by offering lower prices or better quality cars in the same market.
In order to be successful Peugeot need to be better then there competitors, and to keep up with and advancements in technology or safety that the competitors are making. These include things like:
* Rain-Sensitive Windscreen Wipers
* Tyre Pressure Monitors
* Electric Seats with Memory Function
Communicating With Customers
In the communication process Peugeot are the senders and consumers are the receivers. Peugeot will put its information into a form that a receiver can understand. This might involve oral, visual, verbal or written messages to transmit the ideas. This process is called encoding. Peugeot will also choose a particular way to use to send the message to the receiver.
Understanding the Market
Peugeot has to explore the needs of its customers and the activities of its competitors before they can achieve a marketing strategy that will work.
To gain an understanding of the market Peugeot need to understand and use different research methods and data.
Primary Research Data:
* Discussions with people
* Focus groups
* Panel discussions
* Questionnaires and Surveys
Peugeot need to understand the purposes of marketing databases and how these are used to provide information about:
Secondary Research Data:
* Customer behaviour.
* Customer preferences.
* Buying patterns.
* Sales trend.
* Product substitution.
* Market shares
Businesses will find that there are constraints on all aspects of marketing activities because customers often want what is out of reach for the company. Below is a list of different requirements that customers have:
* High quality goods and services
* Low prices
* Efficient and convenient distribution
* Imaginatively presented, detailed information about the products
* The latest technology
It is often too expensive for companies to meet all of these needs, which may require frequent changes in production methods and the standard of service etc. All of these things will affect the company’s ability to maintain its productivity and ultimately its profitability.
Peugeot have to strongly consider what the customers want in products, before they design. Peugeot also have to consider the fact that they may not be able to meet all of their expectations due to factors such as cost and resources etc.
External influences on marketing
1, Other car makes – cant criticise other car makes e.g. Cant say Peugeot is better then rover .
2, Copyright of ideas – Peugeot must not copy other cars ideas on their marketing e.g. cant take a fiat advert and replace it with their car.
3, Must not be offensive – Peugeot must not be offensive. The adverts should not offend peoples sensitivities.
4, Must remain legal – Cannot break the laws when marketing i.e. copyright laws.
5, Must not be distasteful – Peugeot must not go pass the boundary of taste and decency.
Peugeot and the Marketing Mix
The four Ps in marketing are:
Peugeot is the product. Peugeot comes in many styles and models. At the current time cars that are popular are 206 this is due to their shape and style.
There are many colours that Peugeot have. The most popular colours are Aegean blue, Onyx black and Aluminium.
The product must be of a quality that not only allows it to be sold in a shop but it also must be seen as some thing that the customers feel they should have.
Marketing life cycle
Development includes market research that needs opinions from others e.g. customers, also includes technical research which basically means how they make the product work. In this case how they make Peugeot work. One other thing includes test research.
Peugeot allows test driving before a customer buys the car. This is a good thing because the customers buying Peugeot will be satisfied before buying the car and investing money.
This is where the product has just been launched and where they have to advertise the product to be able to get a good name and also manage to achieve a good reputation which is certainly needed if the businesses product wants to become successful. The growth also includes Peugeot making a profit so they stay in business and not lose out to other competitors.
This is where the product has now been established and lots of people know about it, the company has gained a reputation and now not as much advertising is needed to be done to try and sell the product. Along with this the company has now achieved its maximum sales and will then start to go into decline.
This is where the companies product has now been around a while and a newer and more up to date product has been brought out and now people are going to buy this instead, now the companies sales start to drop and then the company has to do something to try and get customers buy there product again. They may reduce the price of this product or may start an extension strategy which is where they try to make the live cycle of the product longer. Peugeot have introduce a lot of new cars due to this they have had to balance there sales to get customers buying new cars as well as the old cars. Peugeot have been successful with this that’s why they are the 2nd best car sold in UK. Peugeot fit in decline this is due to them doing so well.