Marketing
Introduction
Every driver on the Australian roads needs their own protector. Car angel pty Limited provides a solution the drivers in Australia. Marketing refers the process of a marketer communicating the values of the products or services to potential clients. Marketing in Australia covers a vast area and critical to attract customers. It determines the existence of a company or is a failure. Car angel pty Limited must employ qualified marketers with unique marketing qualities. They must convince the motorists to purchase car angel for their safety. They must show the major importance of car angel in reducing the insurance costs(Berry, 2008, p. 109). This device monitors accidents. Sometimes, it reduces them but also provides an understanding of how an accident happened. Motorists’ awareness on the causes of accidents helps them to avoid the previously done mistakes. This helps to reduce the number of accidents thus reducing deaths caused by the road accidents by a huge number in Australia. Every message the engine control unit provides to the car must be recorded by the device due to the location. Components of the car angel include, an LCD screen, an anti-theft configuration, it gathers information on the visual footage of all the cameras, contains a multi memory options and reinforced with robust steel for protection. Moreover, it sends an automated emergency signal in case of a serious accident occurrence to the server station.
The target customers include all motorists in Australia. This comprises my target market for the car angel. It will reduce the insurance costs for motorists, and the finances saved channeled to other sources of revenue. Car angel could reduce the accidents by identifying the major causes of accidents and teaching the drivers how to avoid them (Eliott, Rundle-Thiele, &Waller, 2012, p. 67). The government of Australia and insurance companies in Australia will include the target customers.
Presently, there exist about 16.7 million motorists in Australia. This reflects the number of potential customers. They all aim at reducing the insurance premiums. Current insurance premiums overcharge the motorists because they lack alternatives. This will increase the alternatives for the motorists thus lowering the cost while achieving quality. Car angel pty Limited provides to them the lasting solution. The government traffic department will also encourage many motorists to use fit car angels in their cars. This reduces their workload in establishing the causes of accidents, and developing the rules and regulations to reduce the road accidents. Reduction in the number of accidents occurrence in Australia will save the governments losses of workforce. It will ensure that Australia progress in its economic welfare. Reduction of these loses allow the government to channel its resources to the productive sector in the economy instead of medication. The market may even grow to international level.
Car Angel Pty Limited faces competition both locally and internationally. Local competitors include the manufacturers of car track systems and insurance companies. Many companies will emerge and manufacture a more advanced car angel. Locally, there exists competition also from the car manufacturers. Advancement of technology in Australia leads to manufacture of advanced cars (Willey, 2011, p. 19). These industries manufacture cars with safety belts and stronger bodies thus protecting the motorists from injuries during accidents. Thus, some motorists prefer to follow the manufactures advice. This reduces the sale of car angels significantly. The insurance companies may decide to lower their premiums to attract the motorists purchase. If the motorists purchase the premiums, they will affect the sale of car angels. Internationally, technology advancement leads to the development of advanced devices for motorists’ protection. Many international companies will deliver their new products into the Australian market on the road safety measures.
These competitors have strengths, weaknesses, opportunities and threats. The insurance companies have their strengths in the enormous numbers of motorists having the insurance cover. These companies may decide to lower their monthly premiums to the motorists while maintaining the profit margin. Their full establishment in Australia gives them a competitive advantage over the newly established car angel. They created customer loyalty thus very hard to lose a customer. They influence the customers’ decision making process. International companies may possess an advanced technology in the manufacture of car angels thus deliver them at lower prices. The competitors’ strength lies on the pricing strategy. The manufactures add the extra features at a cost relatively lower. They may opt to absorb it in their production costs or transfer the cost to the motorists directly. The competitors possess a weakness in the quality of services and devices manufactured. Motorists may not be pleased by the lowering of the insurance premiums. Lowering the premiums affects the insurance industry operations. The insurance industries can only increase or maintain their premiums. Insurance companies’ volatility in its operations provides its other weakness (Gabbott, 2004, p. 78). A shake up in the insurance industry in Australia may lead to the collapse of the insurance sector. Car manufacturers face the problem of transferring their cost of production of high quality cars. Thus, they sell their cars at the fair price. Increase in the price of the car will reduce the number of clients and thus a possible loss. International companies willing to charge a lower price face Australian government problem. The government raises its import duty in order to protect the local infant industries. Thus, the international companies charge a higher price than the local ones.
Opportunities exist despite the competitors’ presence. Accidents occur in Australia and the number of deaths caused by the accidents increase. Thus, there exists a room for improvement to reduce the occurrence rate of accidents as well as reducing the number of casualties. Insurance agencies in Australia provide compensation for the losses of vehicles but do not compensate life lost. Life lost in an accident cannot be recovered by the insurance. It can only compensate the car and documents lost in the accident. Thus, there arises the need to save the loss of life. This gives room for car angel Pty Limited to provide the solution by monitoring the causes of accidents. The opportunity reduces the insurance charges greatly and reduces the number of accidents thus achieving the company’s goal. However, in development of the new product there emerge possible threats. These threats derail the company’s performance and may lower the targets. Car angel Pty Limited targets 120000 units of car angels produced annually. This may fall short due to threats by, the government, and competitors and financial (Connell & Mcmanus, 2008, p. 287). The government may advocate for insurance option thus affect the company negatively. Thus, the new car angel pty Limited must show its strength to receive governments support. It must show its capability in reducing the accidents and the number of deaths occurring due to accidents. Management of the new company may face challenges and fail in its execution of the business plan, or some of the car angels may fail to perform their purposes.
Car angel Pty Limited will promote its sales with the aim of introducing the new product in the Australian market by distributing some samples in the market (Gilmour & Rados, 2008, p. 187). Customers will develop a taste for the device and later purchase them. The company must participate in fairs and exhibitions as a promotional strategy to advertise its car angel. The company will offer discounts on the bulk buying of the car angels. The company will target a larger market share to sell car angels. It targets over two thirds of the motorists in Australia. The company will target to increase the market share while reducing costs. The company’s marketing mix will determine its market share.
Pricing determines the company’s revenue. It must base its price on the cost of production. The profit derived will determine the shareholder’s income (Nowik, 2010, p. 98). Setting the price of car angels will entail cost plus strategy. It will cover the expenses in the production of a unit of car angel and the management determines the profit level they set. For the new product to achieve a larger market share, the commodity should sell at low prices. They must consider the insurance premiums when determining their pricing strategy. The business will reduce its first year profits to ensure continuity of the source of revenue. It will practice price promotions and discount management in its sale. This pricing strategy will maintain the minimum profit levels but increases the number of clients. A large client base will raise the revenue.
The company must segment the general market. It should identify the target market and position itself for advertisement of the car angel. Message delivery in advertisement will follow strategic procedure with an aim of attracting new potential customers. Effective advertisement of the car angels will use the billboards in Australia. They will have strategic locations for most motorists view. It will also comprise media advertising. The government traffic department must support this company for the citizens’ benefit as well as the government itself. Advertisement will determine the company’s sale volume (Higgs, 2011, p. 70). Effective advertisement will enhance the sale of many units of car angels. In turn, this will increase its revenue thus raising its perfomance. The company’s progress lies on the advertisement method used. Car angel Pty Limited will promote its devices in the Australian market. It will target the car manufacturing industries as well as the government of Australia. Effective promotions will occur where motorists converge and have their leisure time too or garages where they take their vehicles for repair.
The key promotional periods to drive sales include servicing of the vehicles, during trade fairs and exhibitions in Australia, when there are many tourists in Australia and during the governments functions. During trade fairs and exhibitions, many people have access to see the performance of the device. Marketers have the chance to display the car angel to most motorists during the trade fairs (Kotier, FitzRoy, & Shaw, 2009, p. 54). During government functions, the promotion tends to be effective due to the large number of people attending the functions. This creates awareness of the presence of the device to potential customers. The best promotional periods consist of many motorists convergence.
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Reference list
Berry, D. (2008). Australian Marketing Problems. St Lucia: Agnus and Robertson limited.
Connell, J., & Mcmanus, P. (2008). Rural Revival.?Place Marketring, Tree Change and Regional Migration in Australia. Wey Court East: Ashgate Publishing Limited.
Elder, B. (2006). Australia. Chatswood: Globe Pequote Press.
Eliott, G., Rundle-Thiele, S., & Waller, D. S. (2012). Marketing 2E. Quensland: John Willey & Sons Australia, Limited.
Gabbott, M. (2004). Introduction to Marketing: A value Exchange Framework. St Lucia: Prentice Hall Pty, Limited.
Gilmour, P., & Rados, D. L. (2008). Australian Marketing casebook. St Lucia: University of Queensland Press.
Higgs, D. (2011). The Self-Publisher's Marketing Guide. Ringwood: Palmer Higggs Pty Ltd.
Kotier, P., FitzRoy, P. T., & Shaw, R. (2009). Australian Marketing Management. st Lucia: Prentice -Hall of Australia Pty Limited.
Nowik, H. (2010). The Disciplined entrepreneur: Australian Expirience Marketing. St Lucia: Sun Books.
Willey. (2011). The Willey Trading Guide. Quensland: John Willey & Sons Australia, Ltd.
