- Organization overview
- Company background
Type of company, origin and location
Energy Autos is a limited liability company operating in US and having its headquarters in New York. The business has a focus on modern technology auto products and was started the year 2013 gaining market leadership with its creativity and innovation application. The business operates like a limited liability company having the benefits of limiting the owners’ liability to their equity contribution and separating the business from the investors involved. In respect to its location, New York was found to be suitable location for the business start up considering the accessibility to raw materials and necessary technology as well as skills in addition to suitable market for the products. (Fred, 2011)
Business and products portfolio
Energy Autos comprise of two business lines focusing on different brands that seek to deliver value to customers through modern technology’s application. One of the business lines is the Motor Vehicles business line whose key products are electric vehicles. The other business line is the power equipments business which produces power generation equipments including generators. However, the key signature brand for Energy Autos is the Electric car which is the product that forms the focus of this marketing plan.
- Strategic mission statement
A business’ strategic mission states its purpose of its existence hence guiding its goals and objectives. In that respect, Energy Autos Company’s mission statement is as stated below. (Fred, 2011)
“To be the global leader in offering modern technology supported solutions and products to the motor world through creativity and innovation”.
- Foreign market choice and rationale
Market choice
With globalization and related international trade creating opportunities for businesses to operate in an international market; both in production and marketing, Energy Autos seeks to expand its operations in the international market by introducing its electric cars’ production and marketing to China. The business’ production and marketing operations will be based in Beijing and the entry strategy will be partnership with local investors in the motor industry. (Keller, 2012)
Rationale
The choice for China and specifically Beijing as the foreign market of focus is guided and informed by an analysis of several factors from which the rationale draws. Some of those factors that define the market’s suitability as well as other opportunities include.
- A significant market size bolstered by the high population.
- Rising income level that increases purchasing power to support and drive premium brands’ business.
- Lower production cost in the country bolstered by the high population and availability of cheap skilled manpower.
- Technological advance in the country that provides necessary infrastructure.
- Suitable and favorable international trade policies allowing international businesses to enter the market.
- Changing lifestyles and cultures that increases demand for modern technologically driven solutions in China’s motor industry.
- Availability of business and marketing support services and systems in the China market. (CIA China, 2013)
- Marketing plan
- Marketing plan potential audience and their needs
A marketing plan is a key guide to a brands’ focus in terms of achieving success through enhanced sales which is pursued through application of suitable marketing strategies. In that respect, a marketing plan is a tool of interest to several parties which defines its potential audience. (Porter, 1980) Thus, a marketing plan’s potential audience and their needs can be summarized as.
Potential shareholders/Investors: The plan serves their need for information about a brand and product’s success in the market as provided by their relative positioning. This helps them in making the decision on further investments in the business or on their investment portfolio.
Management: The plan serves the management’s need to know the position of a brand in the market hence acting as a guide on the strategies that other business functions should apply in supporting the marketing strategy and function. (Keller, 2012)
Financiers: Marketing plan informs financiers on the suitability of a brand whose investment they could be needed to fund. A suitable brand positioning is a good sign of market success hence a strong point for finance sourcing and vice versa.
Distributors/Suppliers: They need to know of the products’ suitability and positioning in order to decide whether it is a suitable one to have in their distribution channels. It also helps in guiding them on suitable marketing strategies for specific products.
Customers: The marketing plan serves the need of establishing a product’s values and attributes that suits their needs. (Fred, 2011)
- Product marketing segment and rationale
Market segmentation can be done using various strategies or methods depending on the preferred basis and aspects of classification which is in turn determined by the key aspects specific to a product or service’s marketing. In that respect, Energy Auto’s market can be segmented by application of the demographics method. This method classifies market and customers in light of their demographic factors including age, lifestyle, economic, education and social class. (Porter, 1980) In that respect, the China market can be segmented into different groups or segments as classified below on each factor’s consideration.
- Age: Classifies customers into the young, middle aged and the old.
- Economic and social class: The criterion classifies the market into low income and social class, middle class as well as upper class depending on their economic and social aspects endowment.
- Education: The market is classified into the educated and uneducated.
- Lifestyles: The factor divides the market depending on their brands and lives’ preferences. (Hooley, Nicouland & Piercy, 2011)
All the above factors have a significant effect on autos market customers’ choice and demand for products. With age determining the suitability of the product depending on the desired use and functionality which is in turn defined by different age groups’ activities while economic and social class determines the ability to buy and the suitability of a product depending on the customers social needs and identity. On the other hand, education determines the understanding that a market segment has about products and their value while lifestyle determines the preferred products on basis of the utility expected, a products expected use and nature of use. (Keller, 2012)
- Target market and rationale
With the Chinese market for Energy Autos having being classified on basis of demographic factors, the most suitable target segment for the Electric Vehicle brand can be summarized as comprising the middle aged who have a high income and belonging to high social class. In addition, the segment features traits of being educated and having preference for modern and technology driven solutions. (Kotler, & Armstrong, 2004)
In that respect, the group fits as the target segment from the suitability of the product’s features in delivering the group’s desired value. Specifically, the middle aged are more likely to be employed as well as having a high income that enables them to buy the product as compared to the young or old, unemployed and low income class who may not afford the product. In addition, the educated, upper social class and those who understands and prefers the benefits of modern as well as technology driven auto solutions would be more likely attracted to the electric vehicle model. (CIA, 2013) Thus the Electric Vehicle target group’s traits can be summarized as:
- Middle aged.
- Belonging to high income and social class brackets.
- Educated.
- Preference for modern and technology driven solutions. (CIA, 2013)
- SWOT analysis
Application of the SWOT analysis tool seeks to identify a business strengths and weaknesses which are determined by its internal factors. In addition the model identifies a business’ opportunities as well as threats which are determined by external factors. In that respect the Energy Auto Company’s position can be summarized as follows. (Fred, 2011)
Strengths
- Skilled manpower that enhances creativity and innovation in developing new brands’ and products’ features.
- Strategic location in the market which enhances market share growth as well as significantly reducing production and marketing costs.
- Strong global brand that is well known hence having a marketing advantage over competitors.
- Strategic partnerships with key industry players like suppliers and distributors hence enhancing meeting of customer needs. (Keller, 2012)
Weaknesses
- Much reliance on technology advance which is subject to fast change and being obsolete.
- Lack of adequate fiancés to expand operations to all key markets as well as fund new innovative initiatives.
Opportunities
- Need for environmental friendly motor brands with current increased concern over environmental conservation.
- Ease of market entry with free trade policies that allow foreign firms to enter new markets at ease.
- Less competition in the new electric vehicles industry.
- Availability of established potential partners who can join with the business to drive the international business venture in China.
Threats
- New entrants have potential to increase competition in the industry that highly relies on technology.
- Lack of clear industry regulations regarding eclectic vehicles may increase regulation of affect industry standards.
- Economic changes like rising inflation in the economy could affect the business success with reduced sale of the premium priced brands. (CIA, 2013)
- Product/service market positioning and rationale
In respect to the target segment’s traits and the company’s capabilities as defined by its strengths and opportunities, it seeks to deliver value to the customers through application of suitable marketing strategies that seek to serve the segment’s needs and preferences, avail the product at the right price and inform the customers of the brand’s value. (Keller, 2012) With that, Energy Autos Company will utilize the 4P’s marketing in positioning the product as a desired brand for the selected China’s target segment as follows.
- Product positioning strategies will entail the product attributes that include use of electric power rather than fuel, having fewer emissions and being a silent vehicle with reduced noise. The features seeks to deliver value to the target group through environment conservation and cost efficiency in-terms of power generation and consumption compared to fuel cost. The use of modern technology also suits the group’s preference.
- Pricing will be done to reflect the brand’s value to customers with its cost efficiency, environment conservation and modern technology design that fits premium pricing that is also affordable to the target group. The pricing will also be exploiting the strong and known brand’s strength by charging a premium price. (Hooley et al, 2011)
- Promotion strategies will seek to inform and persuade potential customers to buy the product with application of strategies like online advertising and public relations which suit the segment in that they have access to online media. In addition, the segment can be easily reached through public relation marketing in institutions where they are employed.
- With the company’s skilled manpower and strategic partnerships, distribution place strategies will seek to avail the product to the customers through establishing strategic partnership with motor vehicles’ distributors located in Beijing where the segment is most likely to be located. Further, online order and purchase systems will also be suitable considering that the segment is technologically savvy hence capable of utilizing the avenue to complete purchase transactions. (Kotler, & Armstrong, 2004)
References
CIA China. (2013). The World Fact-Book. Retrieved from
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
Fred, R. D. (2011). (13th Ed.). Strategic Management: Concepts and Cases. New Jersey
Prentice Hall.
Hooley, G. Nicouland, B. & Piercy, F. N. (2011). (5th Ed.). Marketing Strategy and
Competitive Positioning. New Jersey: Prentice Hall.
Keller, K. (2012). (4th Ed.). Strategic Brand Management: Global Edition. New York:
Pearson Publishers.
Kotler, P. & Armstrong, G. (2004). Principles of Marketing. London: Prentice Hall.
Porter, M. (1980). Competitive strategy: Techniques for analyzing industry and competitors.
New York: Free press.
