Marketing Management Holden Automobile Industry †Free Samples

Question: Discuss about the Marketing Management Holden Automobile Industry. Answer: Introduction At the present times, the competitions in the industries have been the cause of huge innovations which has been improving the lives of people in various ways. These innovations are thus created by different people and are used by nearly all people (Elverum Welo, 2015). In fact, the automotive industry is proving to be one of the most competitive industries in the market. It has very high prices of production and yet it is quite competitive. Various innovations andmarketing strategies are key to ensuring that an automobile organization stands out and captures a large market share. This involves being unique, meeting the customer needs and proper marketing strategies (Nair et al., 2015). Initially, the cars were assembled using hands and thus the selling price was very high. Later on, the car assembly lines were developed, making it possible to produce more cars which made them affordable. Inflation, fuel, and changes in technology have in most cases led to an increase in the prices o f cars. The price index causes the changes in automobile changes in price with time. In order to determine the exact cost of a car, the economists need to use the averages of automobiles in terms of production and associated costs to determine the final selling price. These factors coupled with the efforts of conducting effective marketing and branding is what constitutes the automotive industry. Australia has for a long period of time been a big manufacturer of cars, specializing mostly in the large capacity vehicles. However, in the year 2009, the number of production in this country started declining such that most of the cars were being imported from European and other Asian countries. Holden is a subsidiary of General Motors and is the only manufacturer of Australian designed cars. With most car manufacturers having been closed down and other preparing to close, Holden is also ending up closing its operations in Australia. This paper describes the automotive industry marketing strategies with the case of Holden automobile company. Holden automobile company Holden is an automobile company which is located in Australia and specializes in manufacture and supply of cars, parts, and engines. The government of Australia has always been giving the automobile industry financial support every year. On the other hand, the automobile manufacturing industry has been declining despite the support offered by the government. In fact, the automobile manufacturing in Australia has an unknown future because at the moment, the produce approximately 225,000 vehicles per year (Clibborn et al., 2016). This industry heavily functions on the basis of economies of scale. This enables the industry to be able to achieve competitiveness in terms of cost although the current production volumes are not actually satisfactory. More of the competitive pressure could also be attributed to the rise in the Australian dollar rate of exchange which leads to cheap imports as compared to their own manufacturing (Productivity Commission, 2014). The exports of the car products from Australia are also hampered by some protectionist policies in significant export places so that it becomes quite difficult for the Australian automobile companies to sell their products. Such factors also lead to the curbing of some advanced automobile technologies such as advanced robotics which would revolutionize the automotive industry in Australia (Goods et al., 2015). Specifically for the case of Holden automobile company, the reports indicate that the production has been on the increase despite the government funding of about 150 million dollars per year. Even the new VF new car model that the Holden automobile company produced, it was not able to raise the market share (Joshua, 2013). In the year 2013, the company then made an announcement that it would cease its production line in Australia in the year 2017. One of the major reasons for such a crisis at Holden is that the company was not able to understand fully the consumer purchase intentions and preferences. Problem facing automotive industries The new automobile products from Holden Company had problems which are quite different from the needs of the clients. These are expected because the results of a new innovation are pulling demand, pushing technology and integrating the designed model. The innovations at Holden Company dominate the product line and also influence the results of the product sales. One fact about this company is that when they develop a new product, it is not on the basis of the customer feedback but rather the pressure from competitors and product category (Chris and Emma, 2015). This leads to a vague plan, especially when developing new products, a situation which negatively affects the existing automobile products. This makes the clients fail to buy the innovative automobile products simply because they do not need them at that particular time. Based on the views of Holden company, the outlook of its vehicles is positive but the market share is very low (Izogo Ogba, 2015). As such, the company should capitalize on creating a competitive advantage by building quality innovativeness, carrying out the survey on the perceptions of customers about its products, and lowering the life cycle of the products manufactured. It is also important that this company determines the factors which are likely to alter the manner in which the customers make decisions in purchasing its products so as to increase the market share, increase sales and make profits from new and existing products (Holweg Oliver, 2015). Market segmentation The automobile industries require the use of various resources when making its decisions. These resources can either be people, place, money or feedback from social media (Klein Spiegel, 2013). For instance, Holden has established its business in points where it is easy to get raw materials so that the transportation cost is minimized. Proper segmentation requires that the business determines the needs of the clients. As such, Holden Company identifies the needs of its clients and acts on them accordingly. Other strategies involve the collection of information concerning the methods that are being used by their competitors. Other steps that need to be taken include carrying out of market performance evaluation so that the company is able to know the sales per a market segment. Positioning Holden automobile company produces vehicles of all nature such as luxury, sports utility, sports, and fuel efficient vehicles. This provides a wide range of selection from buyers of different economic classes. Moreover, the vehicles are made in order to target every class of people in the market. These cars are able to fulfill the need of the clients such that there are no additional costs that are involved by the client. The vehicles are made in such a way that they are able to compete favorably bearing in mind the stiff competition that is in the automobile industry. Some of the controllable factors which affect the marketing at Holden include: Prices: the prices offered for products at Holden Company are affordable because the products occur in a wide range. Moreover, the company tries to lower its production costs so that the final burden is not too heavy when setting the market prices. Moreover, if Holden introduces new car models and has some offers, then it is expected that the sales will increase. If it happens that the prices are too high, the clients buy other brands of cars or may shift and purchase from other dealers. Promotions: Holden makes advertisements and promotions on the wide range of products that they make. They use both print and online tools in promotions that create brand awareness of the company to the existing and potential clients (Fang, 2014). Products: Holden offers quality products, which is essential for its operations, such that the client feels as if they paid less for a car or spare part. This is because if the products are not of good quality, then the respective customer might be lost to other car manufacturing companies. Place: the outlets of Holden Company are found in large cities, where the clients can easily access them. This will lead to increased sales and more profits. Moreover, it is in cities where people can easily see the upcoming car models and hence purchase them. Purchasing of raw materials Being a renowned manufacturer, Holden is set to satisfy the needs of both the domestic as well as international clients. As such, the company sources ingredients for the car manufacturing from the four corners of the world, a function of the Holden purchasing and supply department. Some of the purchased raw materials include the chassis, electric systems, external body and interior parts (Koronis et al., 2013). This procurement leads to the development of a wide range of vehicles based on top most innovative technologies to meet the needs of the customers. Examples of the luxury brands of cars manufactured by Holden company include the Commodore, sedans, Ute, Sportwagon and caprice. Once the final product is assembled, they are made available to the consumer by use of a network of authorized dealers who are distributed globally. To meet the need of international customers, Holden also exports its cars to international markets. Holden Company performs the B2B model so that they are able to get the views of the customers concerning their products and services (Bak, 2016). This model is very important because it enables the flow of information from the company to the customers and vice versa. This information determines the level of satisfaction by the clients. Environmental analysis Economic factors Factors like recession negatively affect the automotive industry because the customers are not able to keep up their purchasing patterns. At this point, the customers can only buy only what they need. If the prices of cars are high at Holden, then the customers can shift to other cheaper automobile companies. Politics The political environment affects the automotive industry in different ways. For instance, some government policies might restrict the importation of raw materials or the export of assembled vehicles, a factor which negatively affects production and sales (Middlebrook, 2016). Technology Holden Company keeps abreast with technological innovations in the automotive industry. This is through the technologies it uses as well as the materials t6hat it uses such as plastics and fiberglass which are also cheap. The company has websites and uses online tools for marketing so that the customers can also make online queries, suggestions, and order (Walker Stanton, 2017). Conclusion It is important that Holden Company gets to know the purchasing pattern of its customers, motivations and the most appropriate strategy of marketing in order to attract more customers. A method such as the use of RO2 method can also be adopted in customer satisfaction whereby it is able to identify the real demands of the customers concerning an existing or a new car so that necessary corrections cam be made. In most cases, the car buyers look for safety, quality, and comfort. By analyzing the competitive strengths, the company can be able to offer the necessary products for its clients. References Bak, O. (2016). An application of the BPCM model in an e-business driven transformation agenda: Assessing resource implications for a European automotive multinational corporation (MNC). Information Technology People, 29(2), 334-353. BBC, 2015. Government funding boost for Australias ailing car industry. BBC News, retrieved from https://www.bbc.com/news/world-australia-31810731 Chris, U., and Emma, G, (2015). Car industry funding: Abbott government aware only $100 million of $900 million budget back down to flow to industry. 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