As a Product Development Officer (International) for the ‘Holden Barina Product Line’, you are asked to develop a comprehensive market diversification proposal for the compact and small car market either for India or China.
International Marketing Plan
This project report presents major findings and recommendations from the analysis of the small and compact car segment in India. The aim of this report is to identify the existing opportunity in the Indian automobile market for GM’s Holden Barina. Based on the analysis and recommendations, the international marketing plan is developed which will help in spreading awareness about the brand.
The target market for this car model is based on the demographics and thus the people in middle income group are chosen as prospects. All the marketing campaigns will be focused on the characteristics as well as buying behavior of target. The main competitors are TATA motors, Hyundai, Honda, Toyota and Maruti Suzuki. The estimated sales of new Holden Barina cars are expected to grow at cumulative growth of 14% per year.
PESTLE analysis describes the macro level factors of country. There is no political risk for automobile companies entering India. Technology should be latest as well as adhering to the environmental standards of India government. Economically India is very strong country thus the chances of success of the company is high.
SWOT analysis of the company has also put many strengths as well as weakness upfront which need to be handled carefully by the company. Depending upon the gap analysis and the forecasted sales of new cars, the company is highly encouraged to launch its model in Indian market.
The Recommendations are formulates on the basis of marketing mix which considers product, price, place and promotion. Some of the recommendations are as follows:
- There are several market entry mechanisms like joint venture, franchise, export, manufacturing and licensing but it is recommended that the market entry chosen is to export cars from Australia initially and after developing brand image and market share the company should setup a manufacturing plant in India. This will decrease the risk of brand failure and also it will give time to company to understand foreign market.
- Product and promotion needs to be customized whereas price and place should be standardized because of the strategy of “Think Global and Act Local”.