Build Future and Live in It - Hybrid Car PR Pitch with Creative Content and Market Justification - Research Paper Example

Download file to see previous pages

The paper “Build Future and Live in It - Hybrid Car PR Pitch with Creative Content and Market Justification” is an impressive variant of research paper on marketing. Duanji Autos of Japan is a pioneer and trendsetter of hybrid cars for women drivers. Duanji This hybrid car is marketed as a fashion hybrid car for women. Duanji has its outlets with over 50 locations in Europe, the US, and Africa. Now Duanji plans to start its operations in the Australian market as well. The formation of the company dates back to 1972, John Robison, and Malcolm Webster were the founding members at that time. Presently, Robinson Webster Holdings Ltd. owns the company. The managing director of the company is John Robinson. Currently, it has 44 car outlets in the U.K. alone.

The company has a number of competent and experienced automobile engineers who focus on the main aspects of the company and its development of hybrid cars. The business falls broadly under the following divisions: R&D, Production, Testing, Marketing, Sales, Spares, and Support.

The company has its plants in Japan, Europe, and the Far East. These centers provide the company with an edge in the design of innovative and fresh looks for its existing customers. Consequently, it also provides a refreshing driving experience because of the totally fresh and new range of hybrid cars.

The company had a strong standing in 2004 when it was among the top 250 European car manufacturers. From the perspective of a customer, the company has liquidated and has lost the edge and freshness that it had, which made the customers stand out in their status.

SWOT analysis
A SWOT analysis of Duanji hybrid cars would be useful in this regard. It would be of great help in understanding the status of the company and what future steps it must take to ensure it stands the European and another highly competitive market.

Strengths

• Reliable consumer market
• Classy quality
• Competent engineers and designers
• Outlets at key locations such as New Bond Street and Kensington High street and Nationwide

Weaknesses

• A highly competitive market
• Proliferation in competition
• 40% decrease in profits(8.4million) in 2006
• Limited advertising strategy
• Incognizance towards the quality and stature of hybrid products

Opportunities

• Introduction and firm placing of the hybrid cars Duanji in new markets like Australian and Asian continent
• Ever-increasing consumers for hybrid cars
• Increased effectiveness and role of media, in fuel consumption
• Cognizance of fuel-efficient cars in the publics

Threats

• Forthcoming saturation of the market by the big players
• Decrement in profits
• Highly competitive markets with strong competitors such as Honda, Toyota, etc.

Present Trends in Australian Car Market
The Australian car market is considered to be diverse in nature. Almost all major global players play their role in this market, make efforts and get their due shares in a highly competitive environment. Some of the sales trends are given below in the table.

SEPTEMBER KEY FIGURES

NSW

Vic.

Qld

SA

WA

Tas. (b)

NT(b)

ACT(b)

Aust.

Vehicle sales (no.)

 

Trend(a)

np

np

np

np

np

np

np

np

np

Seasonally Adjusted

24 216

20 398

16 660

5 135

7 992

1 348

758

1 236

77 744

Change from previous month (%)

 

Trend(a)

np

np

np

np

np

np

np

np

np

Seasonally Adjusted

2.0

4.9

3.8

5.0

0.2

-6.1

-2.0

1.9

2.9

Change from the previous year (%)

 

Trend(a)

np

np

np

np

np

np

np

np

np

Seasonally Adjusted

0.7

-1.5

0.2

0.8

-14.9

-8.1

-9.6

4.4

-2.0

 

np not available for publication(a) Trend series temporarily suspended from May 2009. (b) Seasonally adjusted numbers of new motor vehicle sales in Tasmania, Northern Territory, and Australian Capital Territory should be used with caution. For more information, see paragraph 7 of the Explanatory Notes.

It is understood from the whole exercise and opinions found in this research that the automotive industry is facing and will face more challenges in the years to come. Companies will go through constant transformation and development and will deploy all possible methods of innovation, business development, and marketing to satisfy and retain their customers. The most common attribute of successful companies will be their ‘flexibility’ in business and business conduct.

“Automobile companies have announced plans to install capacity of around 900,000 vehicles by the year 2000. The number of cars sold over the next four years is going to be anywhere between 2 and

3.5 million vehicles. It is not certain how exactly demand will grow and on what factors it will depend, and whether there is room for so many players. The supplier industry also faces enormous challenges to keep pace with rapid growth. Manufacturing practices will have to change considerably to come closer to lean production. It is also possible that some companies will increasingly use the Global automotive industry as a base for exporting vehicles to other countries. These issues will become clear as the future unfolds The India automotive industry has been growing for the third year in succession at over 25%. The number of persons per car is 200, which is very large compared to other emerging markets like Korea and Brazil which have about 12 persons per car. There is, therefore, a very huge untapped market. Compared to three major models available in the Global automotive industry market until recently, customers can now choose from a wide variety of products. Mukherjee and Sastry (1996) provide an analysis of the entry strategies of the new entrants. Tables I to IV in the Appendix describe different elements of their entry strategies. The future looks promising since the economy has been growing at nearly 6% in real terms, inflation is relatively low at less than 6%, consumption is growing at 11%, and deregulation and market liberalization are now difficult to reverse.” (Sutter, Joe -2006),

Flexibility would be defined in multi prongs and the companies which can plan and implement flexibility right from the beginning of the business process to the end-users’ satisfaction will be considered successful. Flexibility will enable companies to acquire maximum customer satisfaction in practical form. Without being flexible there is no possibility of developing or growing in business.

In recent years, Mark Goldes (2007) describes, carmakers have looked at several alternatives. Hybrid electric vehicles are rapidly gaining in popularity. Equipping such hybrids or completely electric cars such as the Tesla Roadster, with a large complement of Lithium-based batteries and the capability of recharging from a wall socket at night is an emerging trend. Modest amounts of V2G power could be fed to the grid from cars suitably equipped. Companies will also use various methods and technologies to reduce pollution in the future (see Figure below). However, a worldwide shortage of Lithium is currently forecast, ironically, just as the widespread use of batteries based on that highly reactive metal is beginning to be used to power automobiles. (p 23)

Figure: Pollution Reducing Strategies

Fuel efficiency is another benchmark companies will consider and apply on broader fronts. Highlighting, planning and implementing fuel efficiency will be the best way of developing new markets and growing in the existing ones. Fuels will have many variations in the global market and only fuel-efficient companies will be working and surviving in better form. New domestic usage of vehicles at all levels of income and demography. As all income groups are striving hard to cope with economic issues, in this state it becomes more realistic and practical to make a complete focus on fuel efficiency to capture maximum demographic groups.

Figure: Oil Price Variations

Fuel-efficient cars will play a significant role in the next few years to come unless new fuels become abundantly available at affordable prices. It will determine the level of success for companies and will generate new lifelines for the new generation of cars. Many people believe that hydrogen, electricity, solar power or alcohol can be some effective fuels for future cars and companies will be forced to innovate by keeping these options in their planning to gain maximum benefits of market growth. As a matter of fact, fuel efficiency is not a new concern or trend, Aldo Enrietti (2005), its already existing in business but it will get stronger in the next coming years. Whenever companies will make new models, fuel efficiency will remain one of the leading concerns. (p-795)

“If you don’t have a different business model going forward, you’re probably not needed.” David Stockman (2203)

Term flexibility is another concept will be observed by the leading manufacturers in relation to developing good business together. Without flexibility in production, no possibilities of modernization are possible.

Conflict of ideas as defined by Dooley and Fryxell (1999) can occur at any stage of decision making or problem-solving. Sometimes conflict may appear when the idea is implemented. So the depiction of conflict may vary in different shapes and it is also hard to identify the source of conflict on many occasions. The real test of a manager or modern leader is his or her ability to identify the conflict, its source, involving factors and then to resolve the conflict. (3rd, p94)

Four basic functions defined by business hierarchy, are applied by four strategies under the influence and control of Core Essence. These strategies include:

• Core Strategies
• Communication Strategies
• Resource Strategies
• Financial Strategies

Application of marketing concept by big industries like Automotives is done is a systematic way shown in Figure below:

Figure: Applying Marketing Concept in Capital Products Market

It’s understood that without applying the basic sense of marketing concept, no business development is possible for any capital good manufacturer. In the capital goods market, manufactures should also have a vigilant eye to monitor inter industrial changes. Any change in the consumer market can also influence directly the B2B market and B2C market share. Some contingency plans for the development of new products should always be ready to cope with the challenges of uncertain environmental forces.

“Marketing is not only much broader than selling, but it also is not a specialized activity at all It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer's point of view. Concern and responsibility for marketing must, therefore, permeate all areas of the enterprise.” (Peter F. Drucker – 2003)

In his research Womack, James P (1990) states to have some insight on what industry holds for the future we can review and examine some other factors too. In a conference in June 2006, titled ‘The State of the Automotive Industry’, different opinions were formulated and expressed. (p 323). Some experts say that industry has gone through many changes some are visible and some are still have appeared fully in the next coming years. Some of the changes include a significant shortfall in available employment opportunities due to the high involvement of technology and sophisticated equipment. Threats felt by the business sector in automotive are bankruptcy, suppliers’ dominance, poor grading in markets, lack of good product options, undervalued brand and wrongly customized business options.

Detroit’s president told in press that they made 73% of light vehicles and only 2% of foreign-made vehicles are sold in that category. People will go for diverse buying solutions in automotive purchases. When purchasing automotive customers would prefer economy, style, economy and driving experience.

Methodology & Conduct of Research:
Research methodology for this study contains a multi-prong approach that covers a literature review from various known authors, experts, and consultants. Review in this respect covers various published and unpublished journals, researches, and reports. It also has references from different management books from various gurus. Theoretical basis of research have been established on research work done by these professionals. The methodology gives an understanding about the research procedure that how it was conducted and processed to obtain valuable information. The methodology is based on the selective interviews of leading professionals working in automotive and aftermarket research companies. It also covers a little part with the help of personal views of various car users. The survey conducted in this regard had both direct and indirect questions relating to the present and future of the automotive industry. Research involves the study of the automotive industry and different aftermarket resellers and that was conducted based on Literature Review, Taped-Recorded Interviews, observation, Internet and car users. ...Download file to see next pages Read More