Marketing Mix for the Holden Commodore - Case Study Example

Marketing Mix for the Holden Commodore Market segmentation Marketing Mix for the Holden Commodore Commodore was introduced in the Australian market in 1978 as a re-engineered Opel. There were several changes that were made in the car in order to enhance its durability in the market and fit into the Australia conditions. Initially when it was introduced, the car was suited fro the family as it was meant to replace the larger and tradition family sedan. The VB model which was introduced first in 1978 was mainly meant to be a family car. But due to the demand of the market and the segmentation in the market, there has been introduction of other models that fits into the operations framework of the market. The car has been produced with a different target in the market but it has remained a family car. But the Holden Commodore VE Ute which was released in 2007 has a new target to individual users. It is small compared to the others but is has the appearance that makers Commodore in the market. The Holden Commodore Sport wagon which was released in 2007 is also a family car and is larger. This shows that the company has been responding to the changing need of the market and has therefore been producing models that go with the market. There are also some models that have been targeted for the upper market. Although most of the models have been selling at a constant price, there are some models like Commodore VE that has been produced target the higher income market. the company has been pressure to lower the price of the VE model as the demanding the market falls due to low sales attributed to the its exorbitant prices. (Edger, 2002) The market segmentation for commodore has not been that much segmented owing to the fact that it has been producing new model from time to time in order to replace the old models in the market Target market Since it was produced the primary target market for commodore has been the family. It has bee produced targeting the family market and therefore the model have been made larger in a way that they can carry the whole family. The company has been producing medium sized cars that are usually important for family travels and other means. Therefore the family has been the primary target market for the cars. The company has been producing cars which are meant for private use. All the models produced are personal cars which are mainly aimed for the family. The features that are produced with each successful model show that the car is for the family market. They produce medium sized cars which are safer and durable. However in the recent past there have also been productions of other models that are aimed for the secondary market. These include the sportive VE Ute which is aimed at individual travelers. But this can only be considered as the secondary market since there are not many productions that have been made on this model. Generally the company has produced cars that are primary made to meet the needs of family travelers but the trend in the market has forced it to produce other models which specifically target the individual travelers as well. The company has been improving its models since it was produced in order to put in place some futures that are meant to position it as a contented in the target market. With new models entering the otherwise competitive market, Commodore has been retaining large sales owing to the way it has been changing features of its cars to meet the demands of the target market. The design and the price of the cars have been well planned in order to fit the status of the target market. (Kenwrite, 2004) Positioning When the first car was produced the level of competition in the market was low compared to what it is right now. By then there were not many models that were targeted to the family target market but with time there have been new entrants in the same market that have increased the level of competition. The main competitor of the Commodore model has been the Ford Falcon, Honda CV, Toyotas Camry, Mitsubishi Adelaide and others. Commodore has been maintaining a fair share of the competitive market and has been rising up to the changing competition landscape by producing new modes after a period of few years. Commodore is a major competitor in the market. According to the sales recorded for May 2008, Commodore was back on the top of the sales chart. It has been changing this position with Toyota which has been the dominant market seller for along time. In May Commodore was able to wrestle the mantle from Toyota's Hilux utility. In ranking the Australian best car maker has been trailing behind Toyota which has been the leading car seller with a large share of the Australian market. Toyota has continued to dominant the local car market in annual and monthly sales compared to the performance of Holden and Ford. There has been evident price war in the motor market which has been fueled by the stiff competition as more entrants target the same market. Therefore we can say that commodore can be considered as a major competitor in the Australian market owing to the number of sales it has been recording although it is still trailing behind Toyota in the annual sales. Therefore we can say that though Commodore is not the market leader, it has a sizable market share. Price Price is an important determinant of how a product will perform in the market. It determines the acceptance of the product in the market. When consumers go to buy something in the market, they make a great consideration of the price that these products are selling compared to the price of the competing product. In such a competitive market, there is a need to be prices sensitive and keep price at par with that of the competitors. Since it was produced in the market the company has been making effort in order to produce models that are sensitive to the demands of the consumer in the market in term of price. Most of the models produced have been standardized to the market price at which the other competitors are selling their cars. But VE model was introduced in the market at a higher price although it was targeting the high segment market. The company was therefore forced to reduce the price of the model in order to be in line with the price charged for other models in the same category. The effect of the high price took toll on the new model as it went for months without peaking as compared to other models that have been introduced by the same company in the market. (Wilson, 2006) Therefore price is an import factor for Holden in selling the commodore model in the market. This is because there is a lot of competition and each competitor it trying to create a price competitive edge in the market. But the company has been able to adjust to the price demand of the market. The company has been able to cut a price competitive edge by selling its products at a price that is friendly tot eh consumers. Product The product has many attributes as introduced in the market. It has tangible and intangible attributes that have been the selling point of the model. The tangible attributes are those that the consumer can actually see in the car and which are important in determining the consumer acceptance of the car. Commodore has been built with various tangible attributes which has enabled it to record a higher sales in the market. These tangible attributes are put in the engineering model of the car. The tangible attitudes have led to production of durable a model that is durable and well adapted to the Australian roads. The tangible attributes that are attributed to the vehicle include powerful engine, powerful speed transmission, comfort seats, accessories like music and other features. The improved models like VE Ute comes with feature life independent suspensions and coil springs in which wheel. The have also other modified features that make them superior to the old models. Physical attributes are important when assessing the quality of the car since customer will always look for them fast before looking at the other attributes. (Mike, 2006) On the other hand hidden attributes are those who cannot be assessed physically. These attributes are import in determining the mental construction of the consumer about the quality of the product. Hidden attributes that are associated the Commodore includes class, style, and other which cannot be assessed physically. Commodore has been producing cars with class that are meant for the upper segment of the market that easily identifies itself with classic cars. Place The distribution channel that is used by a company is very important as it helps the products to reach the market. The effectiveness of the distribution channel is a major determinant of the overall performance of the any brand in the market. Therefore an effective marketing strategy must put in place an effective distribution network which will deliver the product to the consumer at the shortest time possible. The company has come up with a structural distribution channel in order to meet the demand of the cars in the nation. Although it has concentrated on the domestic market, the company has come up distribution channel that ensures the presence of the car in every part of the nation. In particular it has ensured that the car reaches all the motor dealers in the country. Therefore the distribution channel has been dominated by motor dealers in the country. The dealers occupy an important place in the distribution chain. In particular they act as the main link between the company and the customers. They are also used in the distribution of the spare parts for the vehicles. However for the distribution of the spare parts, retailers are used at the end of the distribution chain. Retailers are not used in the distribution of the produced cars as dictated by the marketing structure. Promotion Commodore has been advertised well in the Australian market. As an Australian car, there have been various promotion strategies that are aimed at ensuring that there is awareness of the product in the market. This is well structured in the advertisement strategy that is implemented by the company. In order to ensure that the new models are received well in the market, the company first carries out promotional strategy which ensures that there is consumer awareness. An example of the promotion strategies is the one in which Holden Commodore had entered into an agreement with Avis Australia. Every time you rent a car at Avis, you increased you chances of wining a Commodore SV6 VE. This was one of the promotion strategies that were aimed at introducing the car to the market. But this was only limited to the authorized dealers in the market. There are other promotion strategies that have been carried out by the company. There have also been advertisements of the cars through the mass media. These advertisements have been aimed at reaching a large segment of the market and have tended to associate the car with the target market. In particular they have linked the car with style and comfort for the whole family. (Qantas, 2008) Reference Edger, J. (2002): New Car Test - Commodore VX. Retrieve from http://autoweb.com.au/cms/article.html&A=1341 on 5th June 2008 Kenwrite, J. (2004): Holden VL Commodore. Retrieve from http://www.carpoint.com.au/car-review/2511509.aspxon 5th June 2008 Mike, M. (2006): The inside story of Holden all new VE Commodore. Wheels Magazine, October 2006 Qantas (2008): Win a Holden Commodore SV6 VE with Avis. . Retrieve from http://www.qantas.com.au/content/dyn/info/bookings/cars/avis/2006/winHoldenCommodore on 5th June 2008 Wilson, R. (2006): Holden pressured to cut commodore VE prices. Retrieve from http://www.news.com.au/couriermail/story/0,23739,20721492-5009380,00.html on 5th June 2008 Read More