Albion Motorcars Year 1 Decisions & Rationale
Our mission mainly aims to satisfy all stakeholder especially customers and employees. For our customers, European market, we provide them a superior product by implementing focus on luxury features in all our car models with affordable price and superior service by always listening to ours customers’ voices. For our employees, we offer a higher salary and provide a skills training to increase their performance. Thus, keeping employees’ satisfied with their careers and directly related to a lower turnover rate.
Financially we must look at profit figures as this is important at all companies. Based on current ...view middle of the document...
By assessing the buying behaviour of those between 40 and 55 we are looking to target people that are in the upper/upper-middle class, who are typically high earners. The type of people includes those with older children that are out of the house and also high earning executives.
With our luxuriously featured Certa we’re targeting 25 to 40 year old adults with those between 25 - 30 being up and coming white-collar workers seeking their first experience of luxury and also 30 to 40 year olds, starting families, with a relatively fruitful income.
We’ve decided on promotional strategies specific to these two demographics with dealer incentives (£50 million) making out most of the promotional budget in particular to those targeted with the Certa. You’ll see that our production output is 90% Certas and 10% Vixens which justifies our choice of spending big on dealer incentives as the user research indicates them being a very effective promotional tool for medium cars. £21 million (1.5 units) is invested in television promotion seeing as it covers both segments in terms of customer reach. £6 million (1.5 units) is put towards internet promotion as it is the fastest growing medium of advertising according to the research. People of all ages make use of the internet and therefor it’s a must for promotion. We try not to put a lot of focus on Vixen promotion as it takes away exclusivity.
Our competitive strategy is aligned to differentiation in terms of product quality; we’ve also used pricing strategies for each model. The product quality is brought about through a team of highly skilled employees, whom handcraft each car, incorporating luxurious designs and features throughout both the Vixen (Luxury) and Certa (Medium) models. Producing a lower amount of the Vixen model will also make the car more exclusive which is perceived to be more desirable in the luxury market. The luxurious designs and features on both models will add value for the customer without adding a particularly high cost to the production of the cars. This allows us to offer a reasonable price in terms of market-oriented pricing on the Vixen model and value based pricing on our Certa model allows us to have a higher than average mark-up.
Ensuring our company is seen as notoriously British is another strategy we’ve integrated as general market research suggests that European car buyers have a preference towards British car manufacturers. We’ve used the company name and model names to communicate this to our target markets. We’ve named our company Albion Motorcars as Albion is the oldest known term for the island of Great Britain, our model names hold a relationship with Britishness also one being a British animal and the other a Latin translation of the word “certain” as Latin has a heavy influence on the English language.
The rationale underlying the choices for design, options and R&D:
The Vixen model will be launched as a two/four door...