Marketing Mix for the U.S.A Car Market - Case Study Example

Marketing Mix for U.S.A car market – Chery Cars China Introduction For any organisation to maintain competitive advantage, it is indispensable to consider developing different marketing strategies that would push the organisation into different levels. One of the strategic ideas of organisations to diversify on the issue of entering into new markets with the intent of broadening their operations is by developing entry strategy. This is crucial in coming up with ideas that would enable the organisation successfully integrate with the new market and win its customers (Lindeman 87). For Chery Cars China, having recorded reduction in its production, it is indispensable for the organisation to broaden its operations to other areas. Venturing into the American market requires a workable strategy that goes in line with the current needs of the customers. This means that the organisation has to conduct a thorough market research that would enable it come up with strategies of conquering the market. The need for market entry strategy Lymbersky (29) noted that marketing strategy is all about defining objectives of the way an organisation intends to join a new market and satisfy the customers. Since Chery Cars China is not the first organisation to enter into the American market, it is apparent that there are different things that the organisation needs to look at to decide on the kind of products the American market needs. It would also be critical to understand what other organisations are offering so that the organisation can come up with unique products that would meet the expectations of the customers (Adekola, Abel and Serg). Besides, the customers must be convinced that Chery Cars China has high quality cars that are different from what they are used in the local market. Current market With the American market being flooded with strong automobile companies like general motors and ford, Chery Cars China has to first carryout a market research on the quality of cars manufactured by these companies. This is indispensable in that the organisation will understand the taste of the customers before venturing into the market (Fernandez and Shengjun 2). This would call for a thorough assessment of the weaknesses of the existing companies so that the organisation can take advantage of that ad develops models that would please the customers. For instance, one of the leading strategies employed by the ford company in the US market is provision of quality cars that make its customers loyal. Current product With the increased debate on the need to have eco-friendly cars in the contemporary world, Chery Cars China can take advantage and decide to design vehicles that are eco-friendly. This is critical in that people would see the organisation as an environmental sensitive company (Haak 198). One of the concerns of any market today is the issue of corporate responsibility. People are evaluating organisations depending on their involvement on the issue of social responsibility (Maddock and Fulton 224). One of the areas that are articulated in the social responsibility is the issue of environment. Organisations that have clear and outstanding focus of the environment issues tend to win the heart of many people (Morden 24). Therefore, Chery Cars China can capture the attention of many people in the American market if it decides to design eco-friendly vehicles. Additionally, some cars are not fuel efficient in the American market. This means that Chery Cars China can take advantage of that and design vehicles that are fuel efficient. This is instrumental to the customers as they would wish to have cars that consume less fuel due to the escalating cost of living. Marketing mix Chery Cars China must consider the right marketing mix that will enable it successfully take over the American market. This is imperative in that the American market is not the same as other market that the organisation operates. There are different preferences by the customers, different government regulation, economic basis of operating, and general market forces that dictates on the behavior of the market (Tang 29). Price One of the critical issues that every organisation must articulate on is the issue of price. This is indispensable because many people like purchasing quality products, but at a lower price. Therefore, this means that if Chery Cars China can afford to manufacture quality cars and sell them at lower prices, this would help in motivating customers to buy their vehicles. However, this has to be well planned to avoid making losses. In fact, the issue of low prices has been used by other competitors in different sectors to undermine the credibility of the upcoming or new market entrants in the market (Abele 247). The argument that is used to undermine such organisations is that the organisation is selling its products at a lower price because they are of poor quality. In light of this, Chery Cars China must have a good market research that would eliminate this kind of scenario. Product Given that most automobile companies in the American market have quality cars, Chery Cars China must consider offering cars that complement the existing ones. Different designs could be one of the strategies the company can use to attract the customers in the American market (Rosenbloom 75). This should be well thought of depending on the different needs of the customers. For instance, the company may decide to design cars that fit the needs of youth and old generation. Sports like cars can articulate on what most youth need especially on their love for sports and flourish life. The old people would not like cars with complex designs, but ones with simple designs. Place The American market is characterized with a culture of consumption of local products as a show of support of the local companies (Dunne 179). Therefore, for Chery Cars China to win the American market, the company must first understand the culture of Americans to come up with cars that entice them for them to accept the company as their own. This can be done by merging with other local companies with clear guidelines on the objectives of the merger especially in regards to designing specific brands that fits the American market. Promotion Any organisation that wants to thrive in a highly competitive market must design strategies of promoting the brand and its products (LaPlaca and Frank 57). Therefore, Chery Cars China must ensure that it uses the right promotion tools that would capture the attention of potential customers fastest possible. Advertisement comes in as a crucial tool as it helps in enlightening the potential customers of the products. For example, if Chery Cars China decides to venture into the American market with a new car model, it has to ensure that the market is well informed of the coming of such a model. Different advantages that come with the new model must be put across for the customers to make choice (Feinberg et al 117). Workforce Organisations are faced with the challenge of employing right people to work in the foreign markets. This is a debatable concern because of the issue of quality and the culture of the market behavior of the new market. Some organisations decide to employ people from the targeted marked while others decide to take their local employees into the new market (Brocke and Rosemann 115). For, Chery Cars China, training of new employees from the American market needs critical because this would create a picture of social responsibility to the Americans who purposively become the new market. This is advantageous to Chery Cars China because local employees are better placed in understanding the market trend of the American market and the culture of the people of America. Local employees would always update the company on the best options when the company is faced with different challenges (Lamb 52). They can advise the company on the best choices of the American people and different ways through which they can attract bigger market. Organisational culture Chery Cars China must consider bringing in its unique organisational culture that would make its brand name unique to the American market. This should reflect on the mission and objectives of the company. Organisations that do not have organisational culture lacks clear outline of what they want to achieve and this is detrimental in that the organisations are not guided by any values that would enable them to achieve their objectives (Lamb et al 48). For instance, customer experience if indispensable and every organisation that want to excel in the new market should consider prioritising on the needs of the customers first (Bowman 47). Chery Cars China must consider seeking customers’ opinions in order to improve on its weak areas. Best quality must not be compromised by any other thing. Customers always like purchasing the best quality no matter the price. Therefore, Chery Cars China has no other choice other than to channel all its resources towards delivering high quality cars to the American market. This is critical because being a new entrant in the market; the company must portray some level of professionalism and innovation in satisfying the American market (Stead 52). With the use of technology, Chery Cars China can design a website that can be used to keep in touch with the customers both the existing ones and prospectus customers. Today, many people are attracted to organisations that embrace the issue of technology than those that do not. An organisation that shares its objectives to the public has higher chances of capturing the market in a better way than the organisations that use old ways of doing business (Richter 25). Social media, for example, has been utelised by many organisations to interact with customers. It is the greatest way to learn about what people think of the brand and its products. For instance, if Chery Cars China comes up with a new car model that makes people happy about it, the use of social media would help the company in that people will disseminate information about the good things about the new model within a short time. Conversely, if some customers or general public understand that the products offered by the company are of their choice or expectation, the company can use that information in improving on the quality in question (Ansoff and Connect 44). Conclusion With deliberations on the best way through which Chery Cars China can effectively enter the American market; there is a need for a through market research on different market segments. For instance, the company should conduct a research on the perception of customers on its intentions to venture into the American market. The company should also conduct an investigation on the type of models and their quality offered by its competitors in the American market. Chery Cars China should utelise technology for marketing its vehicles to the American market. There is a need to have clear objectives that guides the company on its plans and operations in the American market. Recommendations Chery Cars China should consider employing employees locally in the American market. This will be advantageous in that the local employees understand the American market well. They also understand the culture of the Americans and their consumption behavior. The organisation must make the use of the technology in marketing and designing new car models Chery Cars China should come up with eco-friendly cars that would depict its concern on the issue of environment. This is crucial in the today’s business world since people are looking for organisations that are concerned with conservation of the environment. Chery Cars China should also consider designing vehicles that are fuel efficient. This is imperative in that it makes people save since the vehicle they use saves fuel thus saving their money. Chery Cars China must come up with its unique culture that people would like to be identified with. 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