The Automobile Manufacturing Companies of China - Term Paper Example

Marketing Mix for U.S.A car market – Chery Cars China Contents Contents 2 Executive Summary 5 Introduction 5 Main Finding 6 Change of the marketing activities for Chery into U.S.A market 6 Products 6 Price 6 Place 6 Promotion 7 People 7 Process 7 Physical Environment 8 The Chery into the other countries 8 Products 8 Price 8 Place 8 Promotion 8 People 9 Process 9 Physical Environment 9 Choose another car company into U.S.A market 9 Products 9 Price 10 Place 10 Promotion 10 People 10 Process 10 Physical Environment 11 Conclusion 11 Recommendation 11 Products 12 Price 12 Place 12 Promotion 12 People 12 Process 12 Physical Environment 13 References 14 Executive Summary In this report the company Chery which is one of the biggest car manufacturing companies in China is looking to launch its cars in the market of USA. The market analysis before launching the cars in the market of USA the company needs to conduct the marketing mix of the company and also based on the location to understand the situation of the market in the particular country. The 7P’s of the marketing mix is been analysed based on various concepts and also from various theories that are there in marketing. The marketing mix is also been done using other company that is General Motors which has a good market share in USA. It is seen in the study that the company needs to do to launch the products in a new market shows that the customers preference and their likes and dislikes is the most important factor for the company. Introduction Chery Automobile Co. is one of the automobile manufacturing companies of China with its headquarters in Wuhu, Anhui. It was founded in 1997 by Government of China and is also a state owned co-corporation company with major products as the passenger cars, SUVs and the minivans. The company by 2012 became the 10th largest automobile maker in the country by producing a total output of approximately 590,000 units in the year (Chery, 2014). With the growing market for automobiles in US the company has huge opportunity by entering the market of US. Number of cars per house in US is approximately 2.02 by 2012 and is expected to grow to 2.07 by 2025, which open a huge market for the automobile companies. The US market has again taken the forwards step towards increasing market for automobiles with an expected rise of around 13% in sales over the past years. The marketing mix is one of the business tools which are used to analyse the market condition. The marketing mix\x is done especially to know the offering by the company or the brand. The analysis is been done based on 7 P’s of marketing which are product, price, promotion, place, people, process and physical environment (Richter, 2012, pp. 22-25). Main Finding Change of the marketing activities for Chery into U.S.A market The seven P’s with related to the marketing activities of Chery in US market is been seen below. Products The products launched by Chery in USA must be of high standards in quality and design. The company can also try and come up with concept cars which are more fuel saving and can be run on renewable resources (Pride and Ferrell, 2011, pp. 56-58). Price Chery must look to keep the price of the products that it is looking to launch in USA market at a low price in comparison top other automobile companies to get the competitive edge and also to attract more customers as people in USA look to prefer cars that are of low price more than cars of high price (Moore, 1963, pp. 43-47). Place The company needs to launch its products in most of the major cities in USA and also in the major locations of the city so that it gets maximum visibility and customers also get more aware about the existence of the brand in the market of USA (Kotler and Pfoertsch, 2006, pp. 34-38). Promotion Chery must look to conduct certain events in the city to showcase the cars like auto expo, and it should also conduct events in social media like face book and LinkedIn to reach maximum customers and also to communicate its message to the customers in a proper way. It can also look to utilise other sources like magazines, newspapers to launch its products in USA and also conduct live road shows to give a demo of the cars been made by the company (Kotler, 2001, pp. 123-127). People The company must look to focus the middle class and high class people for the cars that the company is launching in the USA market (Doole and Lowe, 2005, pp. 23-28). They need to understand the culture and buying process of people in USA and based on that they need to put their product in the market. People in USA look to get low price cars which are more fuel efficient thus Chery should look to put more emphasis on these points before launching the products in USA (Knapp, 2000, pp. 67-73). Process The process involved in the launching of the cars in USA market the company needs to provide a good after sales service to the customers (Sekhar, 2009, pp. 38-46). Thus the company needs to also look to provide a good product to the customers so that the customers get their needs and wants satisfied. Customer’s satisfaction with after sales service and other services must be the most important factor for the company (Kotler, and Keller, 2006, pp. 34-38). Physical Environment The physical environment revolves around the stores, the design, and layout of the stores. All these factors do attract the customers a lot more (Hutt and Speh, 2012, pp. 23-28). The Chery into the other countries While entering into other countries the company needs to keep the 7Ps into mind with respect to the particular country. Products The products that are to be launched must be based on the likes and dislikes of the customers. The cars must be made based on the preference of the people of that country (OaShaughnessy, 1995, pp. 52-57). Price The price range of the cars must be based on the spending power of the people and also the range of cars that is mostly preferred by people of that country (Chaston, 2004, pp. 123-125). Place The company must look to open its stores in locations which are major places in the country and also gives maximum visibility to the customers (Coade, 1997, pp. 243-247). Promotion Chery needs to make the promotions based on the technological advancement of the country and is such a way that the right message is been conveyed across to the customers in the right way (McLoughlin and Aaker, 2010, pp. 145-152). People The cars that are to be launched are to be made based on the preference of the people of that particular country based on many factors their likes, dislikes etc. (Mazzucato, M. and The Open University, 2002, pp. 165-172). Process The company must provide the best of service to the customers looking at the way the customers of that particular company needs or are expecting to get (Wright, 2006, pp. 167-178). Physical Environment The stores designs and the layouts are to be made based on the way the customers of that particular country desire or want. As every country people have different choice and different cultures based on which their buying power changes in a huge way (Solomon and Bamossy, 2002, pp. 56-62). Choose another car company into U.S.A market General motors performance in USA market can be seen by analysing the 7P’s marketing mix with respect to General Motors. Products General Motors have wide range of products ranging for both high end customers and also the middle class family in the country. These products are been made keeping the preference of the customers of USA in mind. More fuel efficient and also more elegant in looks and designs (Hill and Jones, 2009, pp. 34-46). Price The price ranges varies for different car models and are present for both middle class and also for high end customers. Covering both the standards of customers will help the company to have huge market in USA (Rogers, 2001, pp. 28-35). Place The stores of the particular company is been located in the major places in the city thus people get to know a lot about the company and also have a good brand image in the mind of the customers (Lüdicke, 2006, pp. 146-153). Promotion General motors look to promote its products in the market of USA using various media channels like magazines, social networking etc. to communicate its message to the people in a correct manner. The company also conducts many events in the social media network like face book and LinkedIn to attract more and more customers to the cars that the company brings in the market (Pearce, 2009, pp. 23-29). People General motors give a lot of importance to the liking of people in the country based on which it launches the products in the market of USA (Rossiter and Percy, 1987, pp. 89-97). Process General motors have a good after sakes service for the people in the country and they have a very specific process to help the customers in providing the best of service (General Motors, 2014). Physical Environment The stores layout and the designs are specifically designed based on the preference of the people in the country and it does provide a lot of liking for the company (Wenderoth, 2009, pp. 38-46). Conclusion Thus looking at the marketing mix that the Chery car company needs to keep in mind for launching the particular car in the country in USA or in other country it is very important for the country that it understands the local market in a proper way and also has a good idea about the preference of the customers with regards to the type of car they actually prefer. Different countries have people of different culture and their preference for the particular product. The company must analyse these likes, dislikes and other factors that influence the purchasing decision of the customers in a big way. Chery Car Company must also look around at the other car manufacturing companies that are already present in USA and look to do the market survey based on the competitors. The company needs to launch its product in the country keeping in a way that it gets a competitive advantage over the other companies and is able to attract more and more customers by launching a good. Thus the analysis of marketing mix does helps a lot in understanding the conditions for launching the product in a particular country. Recommendation Looking at this essay certain recommendations can be given to the company in a way that the company can successful launch the product in the market of USA and also gain a good market share creating a good market image. Products The product that Chery company needs to launch in USA must be based on the preference of the customers that is must be fuel efficient and also of less price with elegant style which will make the customers feel happy and satisfied with the cars. Price The pricing strategy of the product must be made upon the factor that the customers find it affordable and also is very much competitive in the USA market. The affordable pricing of the cars will give the company a lot of competitive advantage. Place The locations of the stores must be very much in the reachable range of the customers and in the major locations of the major city. Promotion Use high level of online promotion of the product as the usage of online media is very high among the people in USA People Chery must have focus on the likes and dislikes of people in USA to understand the exact preference of the customers. Process The company must provide good after sales service to its customers to make them happy and also value added services to the customers. Physical Environment The stores layout should be good enough allowing the customers to move easily and also have a good display of the cars. References Chaston, I. 2004. Knowledge-Based Marketing: The 21st Century Competitive Edge. India: SAGE. Chery. 2014. Overview. [Online]. Available at: < http://www.cheryinternational.com/company/>. [Accessed on 10 April 2014]. Coade, N. 1997. Managing International Business. UK: Cengage Learning EMEA. 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