The agency that was creating the marketing strategy was up for a challenge, they knew they needed to maximize profits by creating customer loyalty and bringing back the most loved car in America’s history. Key Business Issue(s) Identification: • Current Customer Trends/rebuilding image The new Beetle was trying to be re-introduced at a time when American’s were buying larger vehicles, usually SUV’s and trucks. The trends were showing that more and more people were purchasing sport utility vehicles as compared to the smaller sportier cars. The marketing group needed some analysis on how they should market the new Beetle and to whom. VW needed to rebuild the image as a “drivable car”.
Expedia provided extensive destination information and strong editorial content with multiple booking options and focused on – flights, hotels, cars, vacations and cruises. Since Priceline was extending its brand across multiple product categories, it had to compete against niche players like CarsDirect in automobiles and Lending Tree in home financing. Background Brand Building Priceline followed an “aggressive brand-enhancement” strategy which included mass market and multimedia advertising, promotional programs and public relations activities. It had invested $24.4 million in1998 and $79.6 million in
They are also able to customize their car with possible features the car model offers. They also could submit a optional finance or lease application. When more companies started to create more of the similar websites, they created more competition for Autobytel. What separates the company and other referral companies are the additional services that they offer during the buying process. The company maintained high
Explain how promotion is integrated with the rest of the marketing mix in a selected organisation to achieve its marketing aims and objectives. My selected organisation is Toyota and I will explain how promotion is integrated with price, product and place (the other Ps of marketing) to achieve their marketing goals. Promotion is an important aspect of the marketing mix for Toyota and it has to work effectively with other aspects of the marketing mix in order for Toyota to have a coherent marketing mix. During the promotion process, Toyota will have to show the general public where they can actually find the cars to buy. They will not just advertise and display on TV, telling people that new Toyota brands are available.
MRC Case Study By: Devorah Serkin, Dan Saguy, Romy Ribitzky, Shimon Zlotnick MRC Inc.• MRC is a Cleveland based manufacturer of car parts• The business plan is based on rapid diversification by new acquisition to: o keep themselves from becoming exposed to risk o Stabilize earnings and cash flow o Escape threat of backward integration by car manufacturers• Currently overleveraged and need cash quick to continue their strategy o Currently, long term debt for MRC is $22.7mm• Achieve management of many acquired companies through decentralized management o 7 divisions run by department heads who oversee operations and report to MRC owner ARI Inc.• American Rayon Inc (ARI) is a Philadelphia based corporation.• Third largest producer of Rayon in the United States• Rayon is currently used in tire production, though market share in tires is decreasing yearly (as of 1960, only 64% market share) Rayon’s market share in tire production Million Market Yearly year pounds share change 1955 406.9 86% 1956 343 83% -3% 1957 318.5 77% -6% 1958 233 71% -6% 1959 287.1 70% -1% 1960 251.3 64% -6%• Has $20mm of liquid assets not needed for operations that can immediately be sold upon purchase View slide Pro and Cons• Pros to acquisition • Cons to acquisition o $20mm in liquid assets o Company is losing market which MRC needs to share offset their debt. o Recent return to o Allows MRC to continue profitability due to with the strategy of reduction of cost rather diversification than increase in sales o Increases credit o Dying company with no worthiness long term future prospects o Stabilizes cash flows o Large company may not o Undervalued company fit with MRC’s costs them $40M in management model common stock View slide MRC Inc.• Assumptions for DCF calculations of ARI: o Numbers are in real terms. Depreciation has been adjusted to reflect the actual inflation rates between 1961 and
Consumers are interested in protecting the environment, and saving money. More and more car manufactures are providing vehicles that use alternative fuels to supply these patrons. This rapidly evolving market place is gaining momentum. It would be a shrewd business decision for Lotus to lead this market by providing this service to the consumer. In order to tap this market, the CFO concentrated on the following; * Hybrid Vehicles * Alternative fuels sources?
Toyota employees see their purpose as threefold: making cars, making cars better, and teaching everyone how to make cars better. Toyota is integrating its assembly plants around the world into a single giant network. They can build a wide variety of models much more inexpensively. That means it will be able to fill market niches as they emerge without building whole new assembly operations. And with consumers increasingly fickle about what they want in a car, such market agility gives Toyota a huge competitive edge.
Hence, local entrepreneurs will be able to grow and expand their business plans. In other word, tariff will able to alter the relative price of goods from foreign countries (Head & Ries, 1999). The enforcement of tariff will able to protect local firms in operating their business. In Malaysia, high tariff and non-tariff trade barriers is enforced on the automobile industry towards foreign competitors such as BMW, Toyota, Honda, and Nyundai (Royal Malaysian Customs Department, 2013). The reason being is to encourage the development and growth of domestic automobiles of Proton and Perodua.
In fact in USA and Japan itself, Prius is sold to the market under its production cost. The Prius was basically a research project which turns into a mass produced car to with the intention of promoting and improving Toyota’s image in the automobile industry. Marketing communication activities are a vital part in achieving the above two and have
The creation of ebay motors, ebay Real Estate, and the LiveAuctions specialty site, as well as the acquisition of Half.com have all contributed to the growth and diversification of this company. In addition to diversifying its customers and its products, ebay has expanded its business by branching out into domestic markets as well. * Business Strategy: broad differentiation strategy ebay competes in the