eAssignment on Topics
Marketing Plan for ‘SUBARU”
Unit 2: Marketing Principles
Submitted to:
Sugandha Mobin Sharna
Lecturer-School of Business
BAC International Study Centre
Submitted By:
Md. Badrul Islam
Id: 2016221003
School of Business
BAC International Study Centre
Submission Date: 10/9/2017
Table of Content:
Introduction…………………………………………………………………………………………………………………
Macro and micro environmental factors which influence marketing decisions for Subaru Impreza (2.1)………………………………………………………………………………………………………………………1-5
Propose segmentation criteria to be used for Subaru Impreza (2.2)…………………………………5-8 Choose a targeting strategy for Subaru Impreza (2.3)…………………………………………………………..8-10
Demonstrate how buyer behavior affects marketing activities in different buying situations (2.4)……………………………………………………………………………………………………………………………………10-15
Propose new positioning for Subaru Impreza (2.5)…………………………………………………………15-16
Explain how products are developed to sustain competitive advantage(3.1)…………….16-22
Explain how distribution is arranged to provide customer convenience(3.2)……..22-24
Explain how prices are set to reflect an organization’s objectives and market conditions(3.3)………………………………………………………………………………………………………………24-29
Illustrate how promotional activity is integrated to achieve marketing objectives(3.4)…29-33
Analyze the additional elements of the extended marketing mix(3.5)……………………..33-34
Reference…………………………………………………………………………………………………………………..35
ssay in here…Macro environmental are those factors affecting Subaru in a larger scale, that is from the broader view in launching its new Impreza car.
The factors affecting the Impreza car are:
1. Demographic environment – The change in the age structure or death rate or birth rate of Bangladesh shall have an impact on the car. For instance, the car death percentage has increased significantly in the past year, this will affect vigorously to the Impreza car. The centralization will also have an impact. Like, the capital is more denser than Jessore and so there will be more users but if it is decentralized then the Impreza car will face difficulties. As the car is especially designed for the professionals and executives, a deterioration of male professionals will affect the Impreza car.
2. Economic environment – The circular flow of income will play a vital role for the Impreza car to operate in the country. A change in the hoarding of money in banks will decrease the spending and thus will affect the consumption of the car. The inflation rate plays another crucial role. As it decreases the purchasing power of money, a hyperinflation will cause the customers not to buy high end cars like Impreza. Interest rates also affect the customers buying pattern as there is one significant group who purchases cars on credit. The higher the interest rate, the lower the purchases will be for the Impreza car. The ILO and claimant count unemployment rate will affect the buying of Impreza car. If the rate is falling then the Impreza car will be facing obstacles and vice versa.
3. Natural environment – Natural disasters like, heavy earthquake, cyclone, etc, can affect the Impreza car to operate. Normally, in Bangladesh, fire caught is a common agenda. A fire caught in the showrooms of the car will definitely create a huge impact on the car’s selling pattern.
4. Technological environment – This involves any changes in technology where Impreza car is running its business. As technology is the vast changing factor among all other factors, Subaru should be instantaneous and spontaneous towards any volatility of the technology in the market. Likewise, a new form of robotic cars, etc.
5. Political and social environment – Political factors comprises the tax law, business law and other legislations covering the Impreza car to perform in the country. The car has to abide by the consumer act, company act, any kind of tort law and other administrative regulations implied by the Government of Bangladesh. The societal factors like, common thoughts of publics, social responsibility behavior will be affecting the car also. If suppose the car proposes a color combination alike of Pakistani flag, it would harm the nationalistic attitude of the society and thus will affect the buying of the Impreza car.
6. Cultural environment – Cultural norms, values, religion and all other factors are the most sensitive ones that Subaru should consider. Bangladesh is basically a more cultural country than a democratic one, therefore, the car should strictly abide by the cultural norms of the country. For instance, a lady in indecent dress in the advertisement of Impreza car will hurt the religious sentiment of the muslims and will raise several negative opinions of ‘illegal car’ taglines on the car.
Micro environmental factors are those mini things that a company, Subaru in this case, has to bear owing to the management of its business and its immediate connectivity’s.
The factors affecting Impreza car are:
1. Company – Subaru has several departments like, HRM, Finance and accounts, Marketing, Management, etc. It has to maintain a harmony and integration between these departments while operating the Impreza car. If not, then a clash between the marketing and finance department will lead to a deterioration of sales and thus leading to less profit margin.
2. Suppliers – While making the car, Subaru has to deal with a lot of suppliers of raw materials like the plastic suppliers, the glass suppliers, the tire, engine suppliers, etc. For that, Subaru has to maintain an effective supply chain management.
3. Marketing intermediaries – Marketing intermediaries are any party that aids Subaru to deliver its goods to the end customers. In terms of retailers or car showrooms, they will provide the Impreza car on behalf of the company. In terms of financial institutions, it helps to raise finance from banks or other institutions in order to make the car run its business. The marketing service agencies provides with attractive and intellectual advertisements which helps to gain a vast attention for the car. These intermediaries are a sort of bridge for Subaru towards the end customers, and so, it has to keep them happy and satisfied in a sense that it does not harm the operation of the business.
4. Competitors – As the Impreza car is a high end car, it will be facing an oligopolistic market in Bangladesh. There are a number of high end car companies like Ford, Lamborghini, Jaguar, Mercedes, etc. but the number is nor too much neither too less. To be precise, Impreza car will be facing both price and non price competition. Price competition will include one company to reduce its price for increasing market share where Subaru has to do it a bit more. For non price, it is more intellectual fight, like the high eloquent advertisements, the more ideological presentation, etc. of the car will make its stance. Therefore, Subaru should consider these price and non price competition in to account so that it can run in the market smoothly.
5. Public – This includes the stakeholders, employees, ex-employees, potential shareholders, local publics, Government, print and electronic media. They are the key players of the company. Subaru at first, should conduct a stakeholder matrix and take steps based on the power and interest of each parties. Some may require satisfaction and some being informed and some both. So, in order to run in the market its identification and actions towards the public is vital for Subaru.
6. Customer market – This part comprises the Government and international markets and international influences on the country. Subaru should be well aware of the international changes in the market, of surely, a marketing myopia also exists in an international manner. The understanding of the consumer market, business market and changes in Government relation with allies and enemies will also affect its operation. For instance, any political clash with the Japanese government will cause Subaru to import cars more expensively. (Kotler and Armstrong, 2006)
Task (2.2): Segmentation criteria for Impreza car
Although the car has been designed for the elite class, specifying the professionals and executives, it also needs to segment the consumer market based on different variables.
The variables are:
1. Demographic – The car is designed for those people who have more disposable income (Income minus tax). The car is a high end one and so it would not suit aged persons, thus it should target the age limit of around 30 to 45. In Bangladesh, the car users are more in masculine gender in comparison with females. So, the car should be focusing on male psychologies more while promoting the car in the market.
2. Geographic – Bangladesh is a centralized country where majority of the people are capital centered. Elite class, high consumers, high taxpayers are more found in the capital, Chittagong and Sylhet cities than compared to other major cities. Side by side, these cities has more density than any other cities in the country. Undoubtedly, Subaru should concentrate on the capital first, then to Chittagong and Sylhet for its Impreza car at least 70% more than any other cities. That is, if it delivers 100 cars, 70 of them should be in these city’s showrooms.
3. Psychographic – Subaru should do a psychological research on the potential users of high end cars. If so, it can find that some are obsessed for show off in the youths, some uses for maintaining status quo while others use for fully professionalism and some for being a loyal customer towards a single brand. Subaru should not merely be surrounded by the web of professionals but also take account of some other psychographic groups
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