Summary: Toyota offers a full line of cars for the U.S market, from family sedans and sport utility vehicles to trucks and minivans. It has product for different price points, from lower-cost Scions to mid-prices Camry to the luxury Lexus. Designing this different products means listening to different customers, building the cars they want, and then crafting marketing to reinforce each make’s image. Toyota learned that Scion’s target age group of 16-21 year olds wanted personalization. Toyota markets the Scion at music events and has showrooms where “young people feel comfortable hanging out and not a place where they just go stare at a car,” said Scion Vice President Jim Letz.
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”.
This website was the first online service provided for buyers to shop for cars online so that they do not have to deal with the problems and hassles that arises that traditional buyers would usually deal with when they are at the dealership. Some of the cost and benefits to consumers of the Autobytel system at the time of the case were that they were hassle free compared to going into the dealership, they were good for beginnings, they offer financing and loyalty programs. This is good for beginner buyers because they are able to look at car pictures for every make and model with the specifications and pricing information. After they figure out what car they are looking for, they receive more information about the car they selected. They are also able to customize their car with possible features the car model offers.
The detail was not, however limited to the car. Separate dealerships were created that had the type of atmosphere that affluent consumers expected from a luury carmaker, including a grand showroom, free refresh. ments, and professional salespeople. Toyota placed a strong emphasis on the performance of the new car. A package was sent to potential customers that included a 12-minute video displaying Lexus’ superior engineering.
As a company, I think I may choose the risk seeking strategy, hoping to extend what the company has but also enough to compete with competitors if the market begins an upturn. I am not sure if this will save all employees but hopefully it will help some. The second option would be to move the company to produce only smaller cars, eliminating or sharply reducing the SUV and truck lines. I think that this is a good option, but the company should produce the cars that are in demand. Ford is known for their F150 heavy duty pickup trucks along with the Ford Mustang muscle car.
They are now suddenly hip and energetic! This happened when they introduced the new 2012 VW Beetle. They argue in this ad that their company is now full of handling and speed, horsepower and superior engineering. They use tools such as visual flags, metaphors, symbols and the appeal of ethos to help support this argument. The most prevalent of the devises used is the visual flag.
The different strategies that they used included the following: Product Line Strategy: With this strategy Tesla has introduced two models that were rapidly advancing through the pipeline. The company’s strategic intent was to broaden its customer base by offering not only a bigger model variety but also by introducing substantially cheaper models. The two new models included The Tesla Roadster and The Model S. Each appealed to different consumers. The Tesla Roadster was the company’s first model and was a 2-Seat convertible that had several different warranty options, but sales for this model ended in December 2012 so that the company could concentrate exclusively on producing and marketing the Model S. The Model S sedan began shipments in June. This was a four door, five-passenger luxury sedan that costs around $128,500.
Hybrid electrical cars/vehicles could be considered a radical innovation. We can say that auto manufacturer’s had to come up with a totally different thing, even though they were having a prototype in shape of combustion engines but that was totally different that the Hybrid one. Somehow yes, they are competence enhancing from industry’s, customers and environment perspective. It’s a natural phenomenon that if we have something in front of us, we tend to explore and further develop it as compared to not having an object present. When we have competition, people deliver the best out of what they have and the same applies in this where HEV’s have initiated a path which leads to better, safer, economical and environmental friendly vehicles, which may be achieved by enhancing Hydrogen combustion or Fuel cell technologies.
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?
Case Study Four: McDonald’s Ford Dealership 1. Describe the situation and the buyer’s apparent needs. The situation presented in the case demonstrates a car salesman attempting to gain a better understanding of the potential buyer’s needs. He asks questions pertaining to the use of the car, size, mpg, etc to gain knowledge about the buyer. It appears that the buyer is preconscious of her needs as she goes looks at a larger vehicle, but yet knows she needs one that is simply reliable and good on gas mileage.