Marketing Mix Plan: Mitsubishi Outlander - Case Study Example

Table of Contents 1.0 Executive Summary 2.0 Situational Analysis 2.1 Current Product 2.2 Current Pricing 2.3 Current Distribution: 2.4 Current Promotion 3.0 Recommended target market: 4.0 Recommended marketing objective 5.0 Product recommendations 6.0 Pricing recommendations 7.0 Distribution recommendations 8.0 Promotion recommendations 9.0 Conclusion Marketing Mix Plan Mitsubishi Outlander A compact cross-over SUV created by Japanese carmaker Mitsubishi in 2001, the Outlander is presently in its 2nd generation and remains one of the most popular models for this important manufacturer. Seeking to understand the target market for the Mitsubishi Outlander as well as the marketing objectives for this audience, the following proposes a comprehensive marketing mix of this leading automobile. According to Mitsubishi, the Outlander is a highly profitable car with a strong market presence on both sides of the Atlantic as well as in Asia. This thorough marketing mix analysis will begin with an executive summary which will provide a synopsis of the overall marketing plan. It is to this executive summary that we now turn (2007 Mitsubishi Outlander Review 2007). 1.0 Executive Summary: The purpose of this marketing mix is to highlight the niche market targeted as part of this market mix in order to increase both the sales as well as the visibility of the Mitsubishi Outlander, an exciting and competitively priced SUV on the market for just over eight years. A strong situational analysis which highlights the key selling attributes of this product will situate the Mitsubishi Outlander within its industry. This marketing mix will explore the product, its current pricing, distribution and promotional and explore the target market under analysis. Following this, a recommended marketing objective will be put forth and this will guide the analysis. Recommendations will follow with respect to pricing, distribution and promotion. Following this, the report will conclude with a holistic analysis of an exciting new product in the competitive SUV industry. 2.0 Situational Analysis: The Mitsubishi Outlander is a high-end motor vehicle which appeals to the refined consumer who is interested in a stylish SUV which blends the breadth and luxury of a Sports Utility Vehicle with the comfort and maneuverability of a standard automobile. We now turn to a current product description of this exciting car (Mitsubishi Outlander 2009). 2.2 Current Product The Mitsubishi brand is well-known throughout North America and around the world and represents an affordable consumer good. As a specialty good with a core audience of car consumers, the automobile is a stylish SUV with a modern wedge shape. Increased visibility is obtained through high seating and the product has currently gone through some important modifications, now in its 2nd generation. The latest edition of the Mitsubishi Outlander built on the Project Global platform and utilized an advanced engine modeled on that of competitors. As an automobile, packaging is not really relevant but service is provided from point of sale and will vary depending upon the dealership. Accordingly, this product remains a stylish and viable alternative to some of the other products out there on the SUV market (Paley 2009). 2.2 Current Pricing The Mitsubishi brand has created a niche for itself through the introduction of a stylish and sleek SUV which significantly undercuts the competition in terms of pricing. According to a seasoned car reviewer, the Outlander’s base price is $24,998 for the ES 2WD – the introductory model. Later models are priced at under $28,000 and additions such as a 9 speaker sound system and sunroof can be had for an additional $2,250. Accordingly, rival companies such as Dodge, Hyundai, Toyota and Volkswagen offer similar products with V6 engines which are priced at a higher price point. Accordingly, the Chevrolet Equinox, the Toyota RAV4 and the Jeep Liberty Sport are just a few of the higher priced options available in the saturated SUV industry (Editor’s Review 2009). 2.3 Current Distribution: What factors influence the current distribution of the Mitsubishi Outlander? The distribution of this automobile is determined through Mitsubishi retailers and is established through direct channels. Due to the nature of the automobile industry in North America, distribution is centralized through dealerships which operate in conjunction with head office and are responsible for centralized requirements from head office. As with the nature of this industry, few intermediaries are used as distribution decisions are made holistically and from a macro-level perspective with respect to the perceived markets both in the United States of America and around the world. As this product is non-perishable, questions of this nature are not relevant in this analysis. 2.5 Current Promotion: The promotional objectives for the Mitsubishi Outlander are varied but expressly targeted towards a market which is young, adventurous and seeking a modern and sleek sports utility vehicle. Accordingly, the low price point for the Mitsubishi Outlander also plays into a marketing strategy which seeks to appeal to a younger audience. Thus, young people and young professionals are drawn to a high-powered SUV which remains moderately priced and within a reasonable price point, relative to the competition. Current promotions are based upon the concept of “Uthrility”, a term coined to emphasize the thrills and utility associated with this automobile. According to Mitsubishi Canada, the following explains the promotional aims of Mitsubishi through its appeal to a young and adventurous audience: Flexible, adaptable and remarkably versatile, the Outlander is the perfect fit for your lifestyle. Ultra-smooth handling gets you into and out of a tight spot in city traffic or on country roads. Loaded with cutting-edge innovation, and with plenty of room to spare, this sport utility has an almost endless capacity for adventure (The Outlander 2009) Current promotional tools include television, radio and print advertising. This is in addition to a snazzy website available in a multitude of different languages ranging from Japanese to French and English. 6.0 Recommended Target Market: The characteristics of the target market include young professional who expendable income. Thus this market has the greatest potential for an automobile such as this and is generally the preferred market for this subset of the automotive industry. Thus while the ads tend to allude to a male market for this product it is evident that the Mitsubishi Outlander will appeal to adventurous people of both genders. Geographically speaking this market can be found in both urban and rural centers and the behavioral patterns include people who are interested in both extreme outdoor activities as well as urban travel. Looking at the psychographic characteristics of this audience, one would venture that they are young, single and without dependents such as children. Nonetheless, the Mitsubishi Outlander could also function as a family car in the event that the buyer is a family person. 7.0 Recommended Marketing Objective Marketing objective for the Mitsubishi Outlander would entail a comprehensive billboard advertising campaign to increase awareness of this product to the very important university-level demographic. While many students have loans, countless others do not and have tremendous amounts of expendable cash. They also require transportation to get to and from school and the Mitsubishi Outlander represents a viable and cost efficient alternative to the gas guzzling SUVs of their parents. Accordingly, during the 12 month marketing campaign a concerted effort will be made to target incoming university students with an active campus presence and advertising undertaken in the university/college magazine. Accordingly, Mitsubishi Outlander could sponsor a few local events in the hopes of selling or leasing one car per month as part of the active targeted student-level marketing campaign. 8.0 Product recommendations: There are numerous recommendations which can be made of this exciting product, a relatively new and cost effective entry into the SUV market. Attempting to appeal to a young, unencumbered and adventurous market through a targeted media campaign, branding efforts should be made to equate the Mitsubishi Outlander with a young and adventurous spirit. Thus, advertising dollars could be spent on ensuring that the Mitsubishi Outlander brand is solidified within this target market. Cars do not need labeling or extensions – they exist as is – but augmented aspects are currently being offered by Mitsubishi in order to increase the prestige associated with an Outlander purchase. Accordingly, Mitsubishi offers a package through which customers can pay a little more money, approximately $2,500 and obtain a state of the art sound system as well as have a sun roof installed. These options add value to the Outlander and serve to differentiate this product from others on the market (The Outlander 2009). 6.0 Pricing recommendations: Presently, the Mitsubishi Outlander is aggressively priced in the already saturated SUV market. As has been previously outlined, the Mitsubishi Outlander is priced more aggressively than similar SUVs from Dodge, Hyundai, Toyota and Volkswagen (Editor’s Review 2009). From this perspective then, my recommendations to Mitsubishi would be to maintain the Outlander as a viable and inexpensive option and to keep the price point, thus undercutting the competition. The present pricing model seems to have worked positively for Mitsubishi since it positions the Outlander as an affordable and accessible option for the audience that we are trying to target. Price adjustments thus are not necessary in the case of the Mitsubishi Outlander because it remains one of the most reasonably priced SUVs on the market today. 7.0 Distribution recommendations: Since we are dealing with car manufacturing and sales, there is not much flexibility with respect to distribution options. Unlike other products which are sold through a variety of channels, car distribution is quite centralized and manufacturer-specific. Accordingly, since our target audience is the young and adventurous niche it may be worthwhile allocating excess stock to regions in which there is a high student or young professional population. These would include college towns as well as major city centers. These distributions aims will help underscore the marketing aims for this product. 8.0 Promotion recommendations: Promotion is at the heart of the marketing strategies discussed here and much emphasis will be placed upon reaching the target audience mentioned above. In order to reach this niche market of young consumers with expendable income, promotional expenditures should be utilized for a holistic media blitz aimed at increasing awareness of this product. A freelance publicist may be hired to work with the media while advertising, sales and promotions through targeted ads will be employed. The advance promotional budget will be between $25,000 -$50,000. Accordingly, new media such as Facebook and My space will be utilized to help get the word out about the Mitsubishi Outlander. 9.0 Conclusion: Described as “flexible, adaptable and remarkably versatile” (Mitsubishi Canada, 2009), the Mitsubishi Outlander is an exciting product which aims to undercut the competition in the increasingly saturated SUV market. Accordingly, the automotive industry is global and increasingly interdependent. This marketing mix report has undertaken a thorough analysis of one product and has advocated a holistic and comprehensive marketing mix report. With the aim of increasing both the sales and the visibility of this exciting product, the marketing mix has endeavored to provide a comprehensive plan for future growth for the Outlander REFERENCES 2007 Mitsubishi Outlander Review. 2007. http://cnet.nytimes.com/suv/2007-mitsubishi-outlander-ls/4505-10868_7-32201126.html (accessed October 6, 2009) Editor’s Review. 2009. http://www.auto123.com/en/mitsubishi/outlander/2009/review?carid=1094400903&artid=105168&pg=2 (accessed October 6, 2009). Kotler, A. 1991. Principles of marketing. New York: Prentice Hall. Mitsubishi Outlander. 2009. http://www.new-outlander.com/ Paley, Norton. 1999. The manager's guide to competitive marketing strategies. Toronto: CRC Press. The Outlander. 2009. http://www.mitsubishi-motors.ca/Outlander/Landing.aspx?openmenu=outlander_offers (accessed October 6, 2009). Read More