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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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...Marketing Assignment 1

P1

Private Company

McLaren Technology Group    

Type

Private

Industry Automotive

Founded 1985[1]

Founder Ron Dennis

Headquarters McLaren Technology Centre

Woking, Surrey, United Kingdom

Key people Ron Dennis

(Chairman and CEO)

Jonathan Neale

(Group COO)

Jost Capito

(CEO, McLaren Racing)

Mike Flewitt

(CEO, McLaren Automotive)

Ian Rhodes

(CEO, McLaren Applied Technologies)

Revenue  GB''475 million (2015)

Operating income

  GB''22.5 million (2013)

Net income

  GB''20.8 million (2015)

Owner Bahrain Government Holding Company (50%)

Ron Dennis (25%)

Mansour Ojjeh (25%)

Number of employees  5,289 (2013)

Subsidiaries

McLaren Applied Technologies

McLaren Automotive (41%)

McLaren Racing

Absolute Taste (55%)

McLaren Technology Centre

They founded in 1985 by Ron Dennis Group CEO of McLaren Formula 1 Team. There were a previous two names being first called TAG McLaren Group from 1981 to 2002 and thein 2003 to 2014 it was called the McLaren group. However from 2015 it was renamed and ever since it has been called the McLaren Technology Group after an increased focus in the technology industry.

The McLaren Technology Group sells Automotive Vehicles. There have been 5 Cars which have been the McLaren F1, Mercedes-Benz SLR McLaren, McLaren MP4-12C, the McLaren P1 and the McLaren 650S. The McLaren F1 the first car to be made and the 650S the last of the cars to have been made.

There are currently 3 owners being Ron Dennis owning 25%, Mansour Ojjeh owing 25% and the Bahrain Government Holding Company owning 50% of the company.

Public Company

BBC (British Broadcasting Company)

The BBC is a public British Broadcasting company that host on a 4 TV channels and many other radio channels. The TV channels are BBC 1, BBC 2, BBC 3 and BBC 4. They also have radio channels such as BBC Radio 1. They host news, sports, drama and many other type of shows such as Top gear, Doctor Who and MasterChef.  The BBC was Founded by John Reith and on 1 January 1922; 94 years ago. It's Headquarters are at the Broadcasting House, London, United Kingdom.

Department Total cost (''million)

Television including BBC Red Button

2,471.5

Radio

669.5

BBC Online

176.6

Licence Fee Collection 111.1

Orchestras and Performing Groups

29.2

S4C

30

Digital switchover

56.9

Restructuring 23.1

Property 181.6

Technology 175.1

BBC Trust

11.9

Libraries, Learning support and Community events 33.6

Other, including training, marketing, finance and policy 925.9

Total 4,896

Ansoff matrix

Marketing Techniques

Market Penetration-

A market is a group of customers who may purchase a product who already have bought a product from that company. The company would grow by your business increasing the number of people in the market who bought your product.

Market Development-

This is when an existing product would be to sold to a different market so if that product started to be sold in China but then be sold in America. This is a type of Market Development.  

Product Development-

This is where a business develops a new product to sell to existing customers. So Customers who have bought a product from the same company apply to this market.

Diversification-  

This is where new products are sold to new customers. This is where a new product could be sold to new customers or an existing product to be sold to new customers.

BBC Marketing Strategy-

The BBC make new programmes and shows such as pure drama. But there are still programmes that are still available such as Doctor Who and Top Gear.

McLaren Marketing strategy-

McLaren Marketing strategy is to recycle ideas from their old products to make new products. An example of this is when they use very similar parts to make the 650S that were used to make the 12C such as the same carbon fibre chassis, same gearbox, same way the car drives as they both have rear wheel drive and they both use the same engine. However, they do differ a tiny bit with the McLaren 650S having a better acceleration rate, higher top speed and a better weight distribution as the car is lighter.

Survival Strategies

Many businesses are having to face to develop strategies just to survive. This could include reducing costs for businesses which could make less profitable markets and businesses could make some employees redundant in order to balance books and costs.

Branding

Branding often consists of a logo, or a slogan. These usually are known to associate with company.

McLaren Logo  

BBC Logo

Buyer Behaviour

A strong brand can stick in a customer's mind and help to link products with a particular or manufacturer. Slogans or logo can help company stick in buyer's mind forever

Brand building '

Enhancing a brand's equity directly through advertising campaigns and indirectly through promotions such as supporting causes or sponsorship for events.

Brand extension '

A marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product company.

Relationship Marketing is where a business focuses on the long term value of a customer. This is where it identity's value customers. Banks often use relationship marketing to attract long term customers and life time customers.

M1

The differences between McLaren's Marketing strategy and BBC's Marketing Strategy is that McLaren recycle old ideas to create new products being one example being the McLaren 650S and the McLaren 12C. However, the BBC just create new shows without using old Ideas

Organisation Market penetration Market development Product development Diversification

Private Company

McLaren Where old customers who have bought a product but they are customers who have bought products from McLaren before. Where a car from McLaren would be sold to a different country that isn't the UK. As the UK was the original market if McLaren start to sell in another country they are starting to sell in a different market. This is where McLaren will use old Ideas to make a new product. McLaren recycle ideas to create new cars. For example, the McLaren 12C and the 650S are extremely similar despite them being different cars. McLaren will either sell an existing car to new customers or new cars to new customers.

Public Company

BBC Where old customers who have bought a product but they are customers who have bought products from BBC before such as subscriptions Where a programme from BBC would be sold to a different country that isn't the UK. As the UK was the original market if BBC start to sell in another country they are starting to sell in a different market. This is where BBC will create new Ideas to make a television show. BBC create new ideas to create new programmes. BBC will either sell a programmes to new customers or new programmes to new customers.

Branding

Organsation Logo Brand building

Buyer Behaviour

Brand extension

McLaren

McLaren launches TV advertisements to show a new product

BBC

The BBC uses magazines to advertise their campaigns.

Relationship Marketing

McLaren

McLaren have had many relationships with sponsors and partners over their years since the 1990s of making cars such as Mercedes who have given them an engine to make the McLaren-Mercedes SLR. This type of relationship allows them to get more buyers as their car is powered by a car company who are very well known and customers will not what to expect.

BBC

However, The BBC are quite different because unlike McLaren they do not require sponsors or partners like Mercedes as they are sponsored by the company as they are public company who give them money every year.

Survival Strategies

McLaren's and the BBC survival strategies will differ for a few reasons. One being that McLaren is a car company and the BBC is a broadcaster. Another reason is the BBC is a public company and McLaren are a private company. McLaren's main survival strategies is to use the money they make in formula 1 to fund their cars as they were a formula 1 team before they became a business. However, the BBC have always been a business unlike McLaren and as they rely money from the government. Their survival strategy for money is to use money they get from people buying their subscriptions on BBC iPlayer.

D1

Marketed product: McLaren automotive McLaren 650S

Technique Strengths Weaknesses Effectiveness (1'6) Justification

Ansoff There are no strengths. There are no weaknesses. 3 As there no negatives or positives about the ansoff matrix

Branding It shows the logo very clearly. The logo may not be recognisable to many people as there is no word to say McLaren 2 As although the Logo is shown very clearly it may not be to tell what company it is

Relationship Marketing It shows how they use special sponsors to make sure their will get customers to buy their products If they have no good sponsors their popularity will decrease if a customer doesn't know them well. 3 As their relationship marketing relies on big sponsors if they do not recruit them their company may go bankrupt

Survival Strategies As McLaren are also an F1 team they can use their money they get from F1. However, If McLaren do not do very well in F1 they may lose a lot of money very quickly despite being a major successful business and Formula 1 team 5 As they are extremely successful in Formula 1 having won 182 grand prix. 12 driver's championships and 8 constructor championships. But they can still lose a lot of money.

Marketed product: BBC

Technique Strengths Weaknesses Effectiveness (1'6) Justification

Ansoff There are no strengths. There are no weaknesses. 3 As there no negatives or positives about the ansoff matrix

Branding It shows the logo very clearly. There are no weaknesses as the logo is known all over the world   6 As the Logo shows the Name as the logo is very clear as it has the word BBC in block capitals.

Relationship Marketing They are given money by the government who have unlimited money However, if that is stopped in any way they will fall and will not be able to sell programmes 4 As they will unlimited money until the government will stop funding them.

Survival Strategies Their survival strategy is to use subscription's to get money if no money from their primary source which is the government. This strategy can backfire as if they have no money no people might not watch their programmes 3 As it is a very good strategy but has a major flaw being that its primary source is still better then it's backup source.

The best technique for the BBC is Branding as its logo is very clear and distinct and the word BBC is in clear block Capital letters.

The best technique for McLaren Automotive is their survival strategy as use a method which is Formula 1 which they are very successful in as they have 182 wins. Eight Constructor championships, twelve Driver's Championships and have competed in Formula since 1963. As McLaren since 2016 have at least two hundred million pounds maybe more and a total of four hundred and seventy five million pounds from all sources of income.

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