Justifying the product/market decisions taken in terms of market selection/entry and product, communication and pricing strategi - Essay Example

Download file to see previous pages... On the other hand, there are markets that are quite popular, in terms of marketing, due to their performance but also due their future perspectives. The Chinese market is such market. The entrance of a new product, a car, in the Chinese market is explored in this paper. The various aspects of the relevant marketing plan are presented and explained trying to show how the characteristics of each market can influence the structure and content of the marketing plans related to the particular market. It is proved that the specific strategic initiative, i.e. the entrance of a new car in the Chinese market, would have many chances to succeed but only if the whole process would be carefully designed and monitored through all its phases. 2.Introduction - Product introduction Automotive industry is a quite successful industry in the context of the global market. In fact, according to a report published in November of 2012, last year has been quite important for auto sellers worldwide since the sales in the industry were quite high (CBS News 2012). For this reason, the industry’s analysts have estimated that 2013 will be a year of record profits for the automotive industry (CBS News 2013). In 2013 the profits of the industry’s major competitors are expected to reach the ‘$61.4 billion US’ (CBS News 2012). The area that gives the highest profits per vehicle worldwide is North America, with ‘a profit per vehicle of $2,000’ (CBS News 2012). In Asia, the industry also shows signs of significant growth; in the particular region ‘the profit per vehicle reaches the $1,300’ (CBS News 2013), which is the second highest globally. Another report published by Forbes also highlights the continuous growth of the automotive industry worldwide. In the above report it is noted that ‘the sales of 2012 have been the highest since 2007’ (Henry 2012), a fact that reveals the industry’s strengthening, after the damages that the industry suffered in the context of the global financial crisis. The increase of car sales in USA has been related to the following phenomenon: it is not the number of vehicles that has increased compared to the past, but the profit achieved (Boudette 2012). This means that by developing effective strategies auto car makers in USA have managed to increase their profits, despite the global financial turbulences. The introduction of the new car in China is expected to be followed by high sales, even if not immediately. The country, being part of Asia where auto sales are quite high level, as explained above, has many perspectives as a target market for new cars. However, the review of the market, using PESTLE analysis, would help to identify areas on which the new car’s marketers would possibly focus so that the risks involved with the project are minimized. 3. Method Entry – PESTLE analysis Before entering the global market, a firm needs to review the conditions in the global environment. A strategic tool is available for evaluating the potentials of a market to secure a high performance for a particular product/ service: PESTLE analysis. The specific framework is based on the idea that industry environment is highly affected by six factors (Murray-Webster 2010). After checking these factors, especially as of their effects on ...Download file to see next pagesRead More