Marketing Mix for U.S.A Car Market - Chery Cars China - Book Report/Review Example

Marketing Mix for U.S.A Car Market - Chery Cars China Executive Summary Chery company is one of the leading car manufacturers of China. The company operates on a global context effectively due to better quality, design and features. The company has developed an improved ‘research and development’ (R&D) facility with the intention of offering superior quality cars in a timely and cost-effective manner. The company in order to enter the market segments of the US is required to provide cars in accordance with the cultural beliefs and expectation of the US people. Moreover, the company is also required to incorporate different marketing mix strategies with the aim of performing successfully in the US automobile market. Table of Contents Executive Summary 1 Table of Contents 2 Introduction 3 Main Findings 4 Changes in the Marketing Activities for Chery into US Market 4 The Chery in other Countries 7 Toyota Motor Corporation into the US Market 10 Conclusion and Recommendations 13 References 15 Introduction Chery Company was founded in the year 1997. Headquarter of the company is located in Anhui, China. The company has been conducting operation in different regions that include Indonesia, Russia and North America among others. The product range of the company comprises commercial vehicles, minivans and passenger vehicles. During the period 2010, the company has revealed impressive performance from its business operations. However, the sales figure of the company is seemed to be declining (Chery Inc, 2013). In this respect, the company developed a joint venture with Jaguar Land Rover on a 50-50 partnership with the aim of performing business operations in a competitive manner. Additionally, the company has planned to enter the market segments of the US in order to improve its sales and profit margin (Gupta & Wang, 2009; Jaguar Land Rover, n.d.). In the US, automobile is regarded as one of the most important aspects towards the society along with infrastructure. Cars are used as effective mode of transportation, freedom, status and identity. The youths of the nation consider cars as a consideration for their lifestyles. Presently, the US car culture is seemed to be changing owing to increased fuel prices and development of technology. The US people demand for more fuel efficient as well as environment friendly cars. The people have revealed their greater interest towards innovative and quality cars (KPMG LLP, 2012; Firat, 1997). Companies are required to adopt marketing mix strategy with the aim of influencing the responses of consumers towards certain products and/or services. Marketing mix comprises 7Ps that are product, promotion, process, place, price, people and physical environment. Main Findings Changes in the Marketing Activities for Chery into US Market Product Chery in order to enter the market segments of the US to perform business operations effectively is required to provide better innovative, environment friendly as well as fuel efficient cars. The company will adopt the similar production process as practiced in China. The company will mainly target youth as practiced in China. In this regard, the products offered in the market segments of the US will be based on the concept of geocentric i.e. on the behaviour and attitudes of car consumers of global consumers. Respectively, the company will support the approach of standardisation (Tao, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Price The company will provide cars at a competitive price due to augmented number of car manufacturers in the US. Additionally, the pricing policy of the company is based on cost-leadership strategy as adopted in home-country i.e. China. In this respect, the pricing policy of the company will also be based on polycentric approach, as the production cost of cars in low in China. Thus, the approach of adaptation will be adopted (CIM, 2009; Jungie & Xiajing, 2013; Vrontis & Thrassou, 2007). Promotion The company will use effective promotional activities which include sponsorship, ads through television and hoardings. Moreover, the company will adopt personal selling, direct marketing, online promotion, public relations and sales promotion as practices in different countries. The company will also adopt brand promotion technique with the aim of creating better awareness amid the US car consumers. In this regard, the company will adopt geocentric approach for promotional activities. In this context, standardisation approach should be followed (Jungie & Xiajing, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Place The company will provide cars in the US market places, where the demand for cars is high with adequate number of small stores providing spare parts and services. Cars will be provided to consumers through developed showrooms in different areas. The distribution network will be developed with appropriate intermediary, so that the customers are offered with products and/or services conveniently. The company will adopt the policy of 4S store comprising Service, Surveys, Spare parts and Sales, so that the customers are provided on the basis of their requirements. In this regard, the company will follow geocentric approach as practiced in other countries. Correspondingly, the company will adopt the approach of standardisation (Jungie & Xiajing, 2013; CIM, 2009; Vrontis & Thrassou, 2007). People The employees of the company are required to competent, so that the needs as well as requirements of the customers are met on the basis of their preferences. Contextually, the employees should possess right attitude and behaviour towards US consumers. Respectively, the company will adopt ethnocentric approach i.e. adaptation approach in order to meet the expectation of the US consumers (Chery Inc, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Process The company will adopt better innovative technologies in the production process of cars that will be manufactured in the US market segments as compared to other countries. The delivery and customers assistance services should be effective in order to meet the expectation of customers. Thus, it can be ascertained that the company will follow ethnocentric approach i.e. adaptation approach for manufacturing innovative cars in the US, as preferred by US customers (CIM, 2009; Gao, 2008; Vrontis & Thrassou, 2007). Physical Environment The showrooms of the company will be developed attractively based on the American culture. Additionally, the stores of the company will be structured with advanced technological design. The employees will ensure that the customers are able to witness a friendly atmosphere. In this regard, the company will follow adaptability approach or ethnocentric approach (Tao, 2010; CIM, 2009; Vrontis & Thrassou, 2007). The Chery in other Countries Product The cars manufactured for different purposes that include commercial use, passenger use and minivans. Additionally, the company will provide better innovative car accessories and technologically advanced products as demanded by the consumers in the worldwide market segments. The consumers are identified to be attracted towards smaller and low-budget cars. Additionally, the consumers demand for eco-friendly or fuel-efficient cars. In this regard, the company operates globally based on the approach of standardisation i.e. geocentric (Chery, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Price The company operates globally with a competitive price owing to the factor that the production cost is marginally low as compared to other car manufacturers. In this respect, the company conducts operation in other countries based on the strategy of cost-leadership. Thus, the company functions on a global context based on the approach of standardisation as its pricing policy is grounded on the concept of geocentric (Tao, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Promotion The company has used different promotional means with the intention of developing a better awareness amid people about the brand, features as well as products and/or services that are to be offered to the global customers. In this respect, the company adopts different measures that include sales promotion, direct marketing, online marketing, advertisements and personal selling among others. The promotional techniques are used in a similar fashion, which denote that the company supports approach of standardisation (Jungie & Xiajing, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Place The company operating in different countries have developed an extensive relationship with different suppliers as well as franchisers, so that the distribution network is developed in an effective manner. In this respect, the company procures as well as provides products and/or services to customers in a time efficient manner. Additionally, the company has also developed ‘Research and Development’ (R&D) facilities in different locations, so that quality and innovative products are offered to the customers. In this regard, the company has adopted the concept of adaptation with the aim of offering products and/or services on the basis of customers’ needs (Hessler, 2010; Ahlstrom & Bruton, 2009; CIM, 2009; Vrontis & Thrassou, 2007). People The company possessed competent as well as hard working employees entitled with the tasks of conducting operations in different market segments. The employees are trained and skilful in conducting marketing as well as operational activities in an effective manner. In this context, the employees of the company play a significant role in ensuring satisfaction of customers. Thus, the company operating in different countries with competent employees is based on the concept of standardisation (Li, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Process The company has developed R&D facilities in different countries, so that better quality products and/or services are offered to the customers. The production system of the company will be based on quality control mechanism. The production process in other countries differs due to dissimilar preferences of the customers. The company works in aligned with suppliers, so that quality products are offered in a time manner. In this respect, the production process of the company is based on the approach of adaptation (Chery, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Physical Environment The company provided training services to employees with the intention of ensuring that the employees are able to offer better assistance to employees. Accordingly, the employees ensure that the expectations of customers are met effectively. Subsequently, the company develops proper business settings in the showrooms in order to build confidence amid customers. In this regard, the company followed the approach of adaptation in order to meet the expectations of customers from different countries (Jungie & Xiajing, 2013; CIM, 2009; Vrontis & Thrassou, 2007). Toyota Motor Corporation into the US Market Product Toyota Motor Corporation (TMC) provides innovative as well as technologically advanced product in the market segments of the US. The company has provided the US people with different variety of cars that include commercial car, luxury cars, passenger cars and pickup trucks possessing local product features. The company providing variety of cars on the basis of needs of the US consumers, has adopted adaptation approach for better business performances (Kirchhoff, 2010; CIM, 2009; Bhandari, 2007; Vrontis & Thrassou, 2007). Price The products and/or services offered by the company are charged on the basis of value that is being offered. The pricing policy of the company is based on the prices charged by competitors and market conditions. Contextually, the company will charge competitive price in the market segments of the US with the aim of improving customer base and profit margin. In this respect, the company has adopted the approach of adaptability (CIM, 2009; Bhandari, 2007; Vrontis & Thrassou, 2007). Promotion The company in order to create a better awareness amid US people has adopted ‘integrated market communication’ (IMC) techniques. The company with the assistance of this technique has promoted products and/or services through advertisement and online medium. The company also made sponsorship in different events for promotional operations. In this respect, the company is identified to adopt standardisation approach, as similar promotion activities are conducted in other countries (CIM, 2009; Bhandari, 2007; Vrontis & Thrassou, 2007). Place The company has developed a decentralised channel of distribution network, so that the customers are offered with the products and/or services in a time efficient manner. Additionally, the company has aligned with different suppliers with the intention of procuring as well as disseminating products to the customers conveniently and cost effectively in the market segments of the US. In this regard, the company is recognised to adopt adaptation procedure (Tang, 2010; CIM, 2009; Vrontis & Thrassou, 2007). People In the US market segments, the company retained competent employees provided with adequate training services with the aim of ensuring that they are able to conduct their operations in accordance with its business practices. The employees are skilful and use innovative technologies in order to meet the varying needs of customers. Thus, it can be comprehended that the company follow standardised approach of employing people (Tang, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Process The leading market of the company is the US as most sales are made in the country. The company has adopted Just-In-Time (JIT) production system with the aim of ensuring that the products and/or services are produced in a time-effective as well as cost-effective way. The production system has assisted the company in providing better quality and superior quality cars to the customers effectively. In this respect, the company is seemed to adopt standardisation approach in its production process (Tang, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Physical Environment The company has setup stores in different parts of the US market segments with an environment based on the trends as well as needs of the people. The company provides services in accordance with the feedbacks of the customers. Contextually, the company is identified to adopt adaptation approach (Tang, 2010; CIM, 2009; Vrontis & Thrassou, 2007). Conclusion and Recommendations It can be comprehended that Chery provides a wide variety of cars that include commercial cars, minivans and passenger cars in worldwide market segments. The company has entered into joint venture with Jaguar Land Rover with the aim of conducting operations profitably in the worldwide markets. The company has developed brand image on the basis of quality cars. Additionally, the company has developed R&D with the intention of building fuel-efficient and eco-friendly cars, as demanded in the worldwide markets segments. From the above analyses, it can be comprehended that Chery in order to enter and perform effective in the US market segments is required to ensure that standardised products are offered to the customers in a competitive price. Additionally, the company is required to adopt IMC with the intention of promoting products features and accessories in an effective manner to the people in the market segments. The company should develop a decentralised distribution network with the aim of procuring and providing products and/or services to the people at the right place. Moreover, the employees of the company should be competent in performing their operations in accordance with the needs of customers. A JIT approach should be implemented in the production process, so that appropriate quantity of products is manufactured within the specified time to meet the market demands. An effective customer relationship should be developed in order to ensure that customers are satisfied in accordance with their expectations (Tang, 2010; Heil & et. al., 2008). References Ahlstrom, D. & Bruton, G., 2009. International Management: Strategy and Culture in the Emerging World. Cengage Learning. Bhandari, S., 2007. An Analysis of Toyota’s Marketing Strategy. Social Science Research Network, pp. 1-13. Chery Inc, 2013. Overview. Company. 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