This report will cover the overall market of luxury vehicles and conclude with a recommendation for the sales team. The consumer appeal of this product would be the rational factor regarding automobiles. Features of the car along with the average cost of a luxury car and how purchasing this product can be beneficial towards consumers. Environmental factors that might influence the market for this product would be the future of electricity and technology. Luxury cars have been advancing with an option to purchase an electric car whose engines are electric by plugging in charging the car. This product could have implications for ethical, social responsibility or global issues in the market as people need a way to commute. Buying a luxury car is more ethical because it is safer with the advanced features and the technology in luxury cars that supplement human errors in driving. For an example, the new brake systems in luxury cars have sensors that can detect when to assist brake. As well as speed
The Four P's (detailed explanation)
• Product: Luxury Cars, a good that is provided through many various brand names that are very popular today. These brand names are known as Mercedes-Benz, BMW, and Audi. Luxury cars were made to satisfy customer's needs through providing transportation at another level. Offering premium features that a typical car would not have such as, power and build of the model and make of certain luxury vehicles, along with safety features.
• Place: Dealerships specifically with brand name within. Local dealerships based on location or online on the official website for specific luxury vehicle.
• Price: Luxury vehicles compared to standard cars will obviously be more expensive. Spending more money is exchanged for the price of owning a luxury car. Financing and leasing a car are options always offered along with paying in full when purchasing a vehicle.
Mercedes-Benz Sedans starting @ $40,250 up to $63,050 / SUVs starting @ $33,400 up to $123,600 / Hybrid & Electric starting @ $47,900 up to $66,700
BMW Sedans starting @ $34,900 up to $83,650 / SUVs starting @ $33,900 up to $62,950 / Electric starting @ $44,450 up to $147,500
Audi Sedans starting @ $31,950 up to $69,700 & SUVs starting @ $44,500 up to $49,900
• Promotion: Advertisement through commercials, informative hands on videos on the dealership websites and social media. Believe it or not many luxury car dealerships promote many sales and incentives throughout the year. New Year's Eve and Day, Memorial Day weekend sales, cash back on qualified vehicles, summer and winter event sales. Financing and leasing incentives are another way for promotion.
• Social Forces: Status symbol when driving luxury cars. Being a CEO of a company for example, you want to be seen in the newest and latest luxury car. In general, people who drive luxury cars crave social status and class as well as material wealth.
• Economic Forces: When it comes to income to purchase vehicle, those with higher income have more of a chance to purchase the top line of luxury vehicles. Low depreciation rates when it comes to luxury vehicles.
• Technological Forces: Navigation systems, back-up camera, Bluetooth all change the make on a luxury vehicle.
• Competitive Forces: Upgrades on standard vehicles. Pricing.
• Regulatory Forces: Improved safety on luxury vehicles, build quality.
Market Segmentation (Include statistics)
• Middle to high class
• Single / Married / Families
• Household income $50k+
• Features of car
• Gas mileage
• Overall price of vehicle
• Marketshare breakdown: https://www.statista.com/statistics/287620/luxury-vehicles-united-states-premium-vehicle-market-share/
Ethics, Social Responsibility, and Global Marketing
• Ethical Issues: Design of car, the make and model. Safety of cars. Reliability
• Social Responsibility: Economic benefits, sustainability, eco solutions for vehicles
• Internet and Global Marketing: Ethical guidelines, data protection
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