Example Of Essay On Promotional And Advertising Strategy Of Automobile Industry
1. Promotional Strategy
This section compares the present promotional strategy of the two leading motorcar manufacturing company in the world. It deals with the major brand names of the companies like Lincoln, Jaguar, Land Rover and Range Rover. But the report mainly deals with two brand names of the two different companies Ford Fusion and Toyota Camry. It can be seen from the market research that Toyota is the world’s largest automobile company and is also the most profitable company that is operating in USA but the company is facing a huge problem in the year 2015. Its brand Camry is facing a decrease in the market share with the up gradation of Ford Fusion in the US market and this has become a major problem for the company to meet the growing competition in the market (Rajiv, Dutta & Dhar, 2002). It has been estimated from the market study that the Fusion market will grow enormously and the company will sale more than 2.4 million cars because of the high demand for its hybrid and sedan model in the market that will help the company to pass over the sales of Toyota in the year 2015. Hence the Toyota Motor Corps need to develop a better promotional strategy to meet the growing completion of Ford Corporations.
Product: The Camry brand was first introduced by the company in the year 1982 that was a compact car for a family. But the company has developed the model and become the bestselling car in USA for the year 2012. The brand has made the company the most profitable one of its industry and the most popular brand among its competitors.
Pricing: The pricing strategy of the company differs from market to market to beat the competitors (Stafford & Faber, 2005). It is one of the best suited cars for a family of five people and is economically affordable by all class of people. It starts around $23000 in the US market. It provides a narrower price range.
Promotion: The Company works hard for the promotion of the brand. It has been introducing new version of the product with better technology and mileage efficiency. Different attractive ads are used for the promotion of the company.
Place: Toyota is a Company that operates all over the world in different countries. It is the most valuable automobile company of the world and ranks at the top of the table. It develops its brand as per the market need of the place and works hard on the market research for its product. In USA Toyota holds higher market share and that provides more economies of scale and higher efficiency in distribution.
Product: the company has entered into production of the Fusion Brand in the year 2005 for introducing the model in the year 2006. This was a midsized car that is suitable for 5 people. It received the best car of the year award in the year 2010. The company as planned to develop the brand has introduced a new model of the same brand in the year 2015 that will be able to beat the sales on Toyota in the year 2015.
Pricing: The Ford Fusion is cheaper at its lower models as compared to that of Toyota. The rice of Fusion starts around $22000 in the US market. It is quite convenient car for the people with cheaper price and more mileage. It provides a wider price range.
Promotion: The Ford Corporation spends a lot in the promotion of the product as compared to Toyota because of the market position of the brand (Duchessi & Lauría, 2013). Toyota is the top ranker of the table and is one of the oldest and reputable companies of the world. Hence, to beat Toyota the Ford Company pressurizes on promotion of its product to meet the competition in the market.
Place: The Ford Corporation mainly target markets of Europe and Asia and develops its strategy depending upon the market variances of the place. It is important for the company to understand the market to fight with the competitors and develop the brand as per the need of the market. It holds lower market share as compared to Toyota but seems to increase in the year 2015.
2. Recommendation for use of market information
Demand of the consumer: It is important for the company to know what the consumers want from the company and in what quantity. For products that are already available in the market the company needs to observe the feedback of the consumers to develop the product as per the requirement of the consumers (Carmody, 2001). It is important because the consumers are the producers of revenue for the company and without consumers satisfaction the company cannot achieve success in long run.
Company’s position in the market: It is important for the company to know it position in the market to know its growth and success of the product. By knowing the position the company can estimate the future of the product and can take necessary steps to meet the uncertainty that may occur in the future. The company’s position in the market can only be known through a market research and knowing the pros and cons of the products of its competitors.
3. Consumer oriented Information
Consumers are the sole producers of revenue for the company. Without the satisfaction of the consumers the company cannot seek success in long run. Consumers are the revenue provider for the company that helps the company to earn profit and survive in long run. Hence to seek success in the competitive world it is important for the company to consider the consumer oriented information to develop the marketing strategy of the company (Marich, 2009). For collecting the consumer oriented in formation the company needs to go for market research and collect consumers feedback on the product they deal with. It helps the company to develop the products as per the demand of the consumers that further helps the company to seek success in the competitive market. Some of the consumer oriented information that the automobile manufacturing company needs to consider are as follows:
Where do Consumer purchase?
It is important to research the market for any company to know the demand of the product in the market. This information helps the company to know where the product will be more acceptable by the consumers (Pant, 2007). That is which part of the market they need to target to increase the sales of the product.
How do consumer purchase?
This information helps the company to know how often the consumer wants to purchase the product and in what way they would like to buy the product. This helps the company to develop strategy to sale its product and convince the customers.
Why do consumer purchase?
This information helps the company to know why the consumer will buy their products and what necessary changes the company needs to make in the products to attract more consumers.
What consumer exactly need from the company?
This is the most important information for the company that helps the company to develop its production strategy as well as its marketing strategy. Until and unless and company knows what the consumers wants form the company it cannot develop its products for fulfilling the requirement of the consumers. This helps the company to develop its products and necessary strategy to sell its products.
4. Pricing Objectives
As both Ford and Toyota are two of the biggest giant corporation is the automotive industry therefore it is not a big deal for the firms to decide the pricing objectives to gain the maximum profit to that of the other companies in the industry. In order to capture the market with their newly launched product the brand name certainly helps for the cause. The good reputation and the branding certainly prove to be a bonus in making sales figure higher and obtaining the maximum profit. In case of Ford the new automotives provide a 15 percent jump in the sales figure in the current financial year and the Q4 of the company shows that Ford has achieved a profit of $ 6.3 Billion and the net income of the corporation is $ 3.2 Billion in the year 2014 where the pricing of Ford automotives is on average of $22,000 and the profit makes sure the improvement in dividend. In case of Toyota the pricing is on an average of $ 23,000 and the profit figure of the company in the last quarter is improved by 23 percent to $ 4.2 Billion. Whereas the other companies in the sector have average pricing of more than 25,000 and the sales and profit figure is comparatively lower than Ford and Toyota. Basically the pricing strategy of both the companies are decided in order to improve the sale of the automotives and to be notified by the customers several service related offers have been given by the company to the consumers. In compare to the other competitors of the automotive industry Global giants like Ford and Toyota have certainly got an edge as the companies are already registered their worth to the world. In every aspect they have got the upper hand to that of other companies. In case of manufacturing, sales or marketing companies like Ford and Toyota have explored a huge number of customers all around the world. The global branding and the reputation and the services provided by the companies are also valuable in support gain more advantage in the global market. Apart from that latest technology, new workshops and professional and efficient workers have definitely a plus point for the companies. In order to consumer motivation factors firms like Toyota and Ford always are the front runners in the market and they always have more chances and advantages in compare to other companies.
5. Advertising Media
In the advertising section both the companies have more over a same kind of strategy to promote the latest automotives of the company. Both the companies have used the online marketing technique by providing advertisement in the internet according to the market. Besides, the telemarketing has been done to promote the sale of the product (Evangelisti Allori & Garzone, 2010). Apart from this the launch of any product is done in a manner that ensures maximum advertisement through media. Toyota Corporation has the tendency to present the automotive lunch in the car expo by making a huge response from the consumers. Same thing can be seen in case of Ford as well. In the competitive market to gain the maximum attention of the purchasers the companies are investing a lot of cash in promoting and advertising of the product. Digital marketing is the best option for the companies in order to promote new launches as the company can hit maximum portion of the global market by implementing this step. Apart from that social networking sites like Facebook and Twitter can be handy in order to make full utilization as far as advertisement is concerned.
The paper is a competitive discussion of the two market giants of the automobile sectors of the world. Both the multinational company has their own specific strategies in order to achieve the success and to ensure maximum figure of sales as well as profit. Both the companies has a specific pattern of analyzing the market credential and in order to secure the maximum portion of the market the firms are accepted policies regarding to obtain the necessity of the consumers. Companies have got their efficient working groups to perform and analyze the market and according to the result of analysis the governing body and the sales and marketing team take the required steps to optimize maximum profit (Kalshetti, Savanoor & Sharma, 2014). By this descriptive report it can be understood the specific market analysis and decision making of Toyota and Ford have made the companies so successful in the global automotive market.
Carmody, B. (2001). Online promotions. New York: Wiley.
Duchessi, P., & Lauría, E. (2013). Decision tree models for profiling ski resorts’ promotional and advertising strategies and the impact on sales. Expert Systems With Applications, 40(15), 5822-5829. doi:10.1016/j.eswa.2013.05.017
Evangelisti Allori, P., & Garzone, G. (2010). Discourse, identities and genres in corporate communication. Bern: Peter Lang.
Kalshetti, P., Savanoor, S., & Sharma, N. (2014). Comparative Study on Advertising and Sales Promotional Strategies in Pharmaceutical Industry-a Contemporary Thought. ANVESHAK-International Journal Of Management, 3(1), 119. doi:10.15410/aijm/2014/v3i1/50560
Marich, R. (2009). Marketing to moviegoers. Carbondale: Southern Illinois University Press.
Pant, H. (2007). Advertising and media. Jaipur, India: ABD Publishers.
Promotional cultures: the rise and spread of advertising, public relations, marketing and branding. (2013). Choice Reviews Online, 51(05), 51-2486-51-2486. doi:10.5860/choice.51-2486
Rajiv, S., Dutta, S., & Dhar, S. (2002). Asymmetric Store Positioning and Promotional Advertising Strategies: Theory and Evidence. Marketing Science, 21(1), 74-96. doi:10.1287/mksc.18.104.22.168
Stafford, M., & Faber, R. (2005). Advertising, promotion, and new media. Armonk, NY.: M.E. Sharpe.