Documente Academic
Documente Profesional
Documente Cultură
MARKETING STRATEGY
REPORT 2013
Tabatha Schmidhauser
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TABLE OF CONTENTS
VOLVO GROUP: PRESENTATION
Volvos Background
Mission
Vision
ENVIRONMENTAL ANALYSIS
Internal Micro Analysis
SWOT
Industry Challenges: Adaptation Strategy
McKinsey 7S Model
External Analysis
PESTLE Analysis
Consumer Analysis
Business
Business Objectives
Business Strategies
Porters Generic Strategies
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Marketing Strategy
MASH Analysis
Segmentation
Targeting
Positioning
PROMOTIONAL MIX
Advertising
Public Relation
Direct Marketing
Personal Selling
Sales promotion
SOURCES
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VOLVO GROUP PRESENTATION
VOLVOS BACKGROUND
Safety = Leaders
Modern Scandinavian design = Where they differentiate
Environmental Care
MISSION
Create the safest, most exciting car experience for modern
families.
VISION
To be the worlds most desired and successful premium car
brand
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To be a world-class provider of treasury services, valued as the
natural and integrated business partner to the Volvo Group
companies. Volvo also aims at being the World Leader in sustainable
transports solutions.
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Our Accident Research Teams have given us good insight into the
causes of accidents and injuries and what can be done to prevent
them. Our products are built to minimize the consequences of
accidents.In recent years we have also launched intelligent safety
systems with the potential to prevent accidents from happening in
the first place.
Our ultimate goal is zero accidents with Volvo Group products. This
vision of zero accidents guides our product development. We are
committed to work hard to prevent accidents, but we are also aware
of the fact that most accidents involve factors that are out of our
control. Therefore, the Volvo Group cooperates with users,
authorities, scientists and other actors in society who want to create
a safer world.
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The Volvo Group is the first heavy duty vehicle manufacturer to
develop seven different demonstration trucks that can all be driven
without any emissions of climate-impacting carbon dioxide.
Observations:
Models:
XC60: Price is not a factor of choice
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Sophistication for the discerning driver
Enhance your XC60 with Inscription, Volvo's collection of exclusive
interior and exterior details offering the best in Scandinavian design
and craftsmanship.
Designed to thrill
The XC60 R-Design sport chassis is made to get your pulse racing.
But before you even turn the ignition the sporty seats, pedals and
steering wheel will put a smile on your face. This is a car for the love
of the road.
Crossing the line
The XC60 takes a new approach to design combining the high
waistline of the XC range and the sporty contour of the coupes. Its
the physical manifestation of an idea that encompasses active life
and a love of style.
Watching out for you
In slow moving traffic City Safety pays attention even when you
dont. By constantly monitoring the traffic ahead for slowed or
stopped vehicles it applies the brakes to help avoid a collision.
Innovations for the love of driving
Sporty driving or cruising? With three settings for different driving
styles and surfaces you get the most out of both curvy mountain
roads and long motorways. Its technology for the pure love of
driving.
ENVIRONMENTAL ANALYSIS
INTERNAL MICRO ANALYSIS
SWOT ANALYSIS:
Strengths Weaknesses
Good heritage Identity crisis/ confusion
Established brand Trust High Price /economy state
Environmentally friendly Small share
Product under different brand Strict and definite position
High safety standards
Highly involved in Research
Offer high quality Customization
Interactive brand (with customers)
Excellent service (SAV)
Opportunities Threats
Market expansion BRIC Countries Competition big international
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Long term impact environment (awareness) Price of oil, fluctuation
Interest rate (separate
payment
Fuel concern (decrease consumer cost) no Loans from banks)
New technologies available
Demographic changes
Accident Rate
MCKINSEY 7S MODEL
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1) Strategy- In order to maintain and build competitive advantage
over the competition Volvo plans to once again become the industry
leader in safety, the brand that gives the company first car with a
safety cage, the first car with front and rear crumple zones, the first
to offer safety-door-locks, and the first to offer SIPS-Side impact
protection System.
At the same time company focuses on maintaining energy efficiency
and health-related technology through alternative fuel types and
reduced emissions, so that Volvo will keep placing its emphasis on
creating a safer world in relation to environment and driving.
The company lays the foundation for developing Volvo group into
the worlds leading provider of sustainable transport solutions.
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which all employees are responsive and aware of what must be
accomplished to be the best business partner.
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INTERNAL MACRO ANALYSIS
PORTERS 5 FORCES
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expertise, it is time consuming and it is expensive. Furthermore, it is
very risky because it was proven over the years that consumers
tend to trust more to the companies with more tradition and
experience in the car manufacturing (Mercedes-Benz for instance.)
In this sense, the threat of new entries is not a serious problem for
Volvo. They are affected by the already existent competitors rather
than from the upcoming. Their long presence in the marker gives
them a certain advantage over the newcomers (when having such)
so this is not a big threat for them.
EXTERNAL ANALYSIS
PESTLE ANALYSIS
Political
Growing environmental concerns are forcing governments
around the world to introduce harsher regulations for the
automotive industry. These include strict regulations on
carbon emissions, increased taxes for cars with higher carbon
dioxide emissions, rise in insurance prices and new safety
regulations. Volvo's main markets (US and Europe) are
affected by the above the strongest.
Government foreign policies are important to the industry.
There are extreme tax policies adopted by developing
countries for local automotive industry protection.
Low - emission cars benefit from tax incentives, such as free
road tax, lower insurance prices, free parking and so on.
BRIC economies are gaining substantial power against of
those of the Western World.
Economic
2008 economic recession has hit the automotive industry
immensely. Many companies field bankruptcy and many auto
brands have disappeared.
Fuel prices are on the rise.
Commodity prices are on the rise.
China is on the rise to become world's largest economy. Other
BRIC economies are also experiencing high growth rates.
As the recession is over, we can expect world-wide economic
recovery. However the uncertainty remains high.
Flat growth rates in developed markets, but good prospects in
emerging markets such as Asia.
Socio - cultural
Declining birth rates are seen within Europe and USA.
Smaller families and childless couples are becoming more and
more common.
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"Many cars on the road today are used by singe occupants,
commuting to work" ('Volvo Case Study, n.d.)
People are becoming more conscious of their environmental
impact and they are becoming more eco- friendly.
Technological
More eco friendly technologies are introduced at an increasing
rate.
Shared technologies can provide substantial benefits.
Focus is placed on improving energy efficiency and health-
related technologies.
Availability of new materials and recycled materials for
production can provide many possibilities.
Self- driving vehicles are on the way as such technologies are
being developed by major corporations.
CONSUMER ANALYSIS
Fuel costs: With the increase in fuel cost, it has become more
expensive to drive a big car, and as a result customer tend to buy
smaller cars, which have more fuel efficient engines.
Economic Crises: Also the economic crises in the last 5 years has
decreases the buying power of customers. Big cars are usually more
expensive than smaller cars, and since the resources are limited for
the customers, they want to spend less for a car, and smaller cars
are cheaper.
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Smaller families: In the western countries families have become
smaller, due to the decline in the birth rate, and the need for bigger
cars has decreased.
STRATEGIES
CORPORATE
CORPORATE OBJECTIVES
The Volvo Car Corporation is one of the car industrys strong brands.
The company is committed to :
CORPORATE STRATEGY
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ANSOFF MATRIX
DIVERSIFICATION
PRODUCT DEVELOPMENT
Environmental concern
Social changes
Rising prices of petrol (new energy needed)
Tax inventive for ecological car purchase
Promote safety through road car accident concern
BUSINESS
BUSINESS OBJECTIVES
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competitive in this sector is very high, Volvo has to constantly
improve. VOLVO has to use its competitive advantage, like
SAFETY or ENVIRONEMENT but should also develop it further
and further. They have to offer unique product that the
competition will need some time to catch up on.
BUSINESS STRATEGY:
DIFFERENTIATION:
Product Uniqueness
Providing high quality service (as it is a strength)
Highly engaged in innovation (not priced focus)
Safety innovation and research
Ecological / environmental system and product dev
MARKETING STRATEGY
MASH ANALYSIS
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Effective segmentation requirements: Following a MASH
analysis
Measurable: Through secondary sources made by local statistics
center, the World Bank or other independent organization, we are
able to measure all of our data. For example, to measure how
important is safety and ecology to a society, we will find out how
many household recycle, uses solar energy power, eat organic
food Through sample, questionnaire and research, the data
collected are easily measurable.
Accessible: The segment we decided to work on has fairly high
degree of accessibility. The information about this segment can
easily be accessed and through our marketing strategy we are able
to serve that particular segment effectively.
Substantial: Our segment is fairly large within our operating market.
We are targeting a quite broad audience and is sufficient enough for
Volvo to be profitable and serve in this particular market.
Homogenous: We have tried to come up with a segmentation that
serves segment members as being as much as possible internally
homogenous. Nevertheless as we are not going for a mass
marketing strategy, we do not emphasis on homogeneity through
our campaigns.
SEGMENTATION
Psychographic segmentation:
Lifestyle:
Pre family / Family
Household / employees
C2 to B class
Mostly Urban people
Mainstreamer / Explorer
Busy life / active lifestyle
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Looking at the sagacity lifestyle model, we decided to target
pre-family and family. This lifetime segmentation corresponds to
the values Volvo embrace and the car developed by the company
is exactly what people like that will look for.
Household as well as workers is also our target group. Volvo
focuses on groups belonging to (upper) Middle class, lower
middle class and skilled working class.
Volvo is not a big enough brand to wider their audience as much
as they want. By concentrating on urban people, we give the best
shot for people in town to realize about the pollution. Our values
and main product characteristics support our segmentation all
the way. We want the mainstreamer to buy our model because
they are the one that could best represent the company. They are
conformist, conventional and want to be part of the mass. We
would also like to attract the explorer. They are energetic, have
autonomy and like challenges. Volvo group like challenges as well
and nothing is impossible for us.
Values
Environmentally concern
Be safe
Money/ quality
Opinion
Green political parties /socialism
Risk yes, but with safety
Interest
Club and social community
Like to participate
Team sports / Team work
Personality characteristics
Adventurous but with a need for comfort and safety.
Influential personality,
Taster and evaluator
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consumer as a person, which enable the brand to identify and
underline the needs and motives of the consumers.
TARGETING STRATEGY:
Different Markets:
Because we plan to go into different markets, more especially in
BRIC countries and the audience will not be the same our strategies
have to be different.
Volvo has an effective and high skilled team, therefore they have
the potential to do it for the European Market, however for BRIC
countries they can always contract private marketing companies,
which are expert on the local environment.
Different products:
Volvo does not offer the same products in China as they do in
Europe, for the only reason because the consumers need and desire
are not the same. As a result our marketing mix campaigns will have
to adapt to the people we are dealing with. Even though Volvos
segmenting strategy is to catch a relatively broad audience,
concerned with the environment etc, these people are not the same
in China and in Europe.
To conclude, Volvo will engage with a differentiated marketing
strategy to make it more appealing and personal for the specific
audience, while targeting a very broad audience. By doing several
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different campaigns we are ready to rake the risk to make it
confusing for the consumer, however as it is in different market, this
risk is very low.
POSITIONING:
PROMOTIONAL MIX
Advertising
- Mobile Apps Volvo has their own mobile apps and they are
divided in three categories: Product Apps, Owners App,
Campaign App.
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- Videos They have commercials on Television (mainly
channels for automobiles) but not only. The video commercials
can also be found on Youtube.
- Billboards - are being used as a way of advertising almost in
every country where they are selling their products.
- Volvo Spirit Magazine Spirit magazine is Volvo
Construction Equipements company magazine, full of Volvo
news and business updates. It is intended for every Volvo
enthusiast.
- Volvo Driver Magazine magazine for Volvo members,
which contains information about Club meetings and events,
technical information and advice, topics of general interest, all
the latest Volvo news, and articles by Members, and a Sales &
Wants section. It is being distributed once a year, only to Volvo
members.
- Many other magazines Volvo is advertising in variety of
different magazines, especially in the ones specialized for
automobiles, such as Top Gear, AutoCar, AutoExpress and so
on.
Public Relations
Direct Marketing
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contact with the VOLVO ads, will make the consumers more aware of
the products that VOLVO produces.
Sales Promotion
Personal Selling
In summary, Volvo has a high skilled staff and high quality service
and because they are selling expensive products with very high
specific values, the company has to:
= Install trust with customers, which will lea to loyalty
= Provide valuable information
= Persuasion and very effective sales methods
SOURCES
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EMEA Marketing Blog URL:
http://emeamarketing.co.uk/wordpress/what-is-emea-marketing
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