Executive Summary
The chosen company is Holden and its product is Commodore. Holden is an Australian company that celebrated its 60th anniversary in 2008. To mark this milestone, the company launched a limited edition of the Holden Commodore SS V-Series 60th anniversary. The marketing planning for this product is based on information gathered from the company’s websites, news articles, brochures, and journals. The marketing plan includes details such as the company’s mission statement, a situation analysis of both the company and the product.
The marketing plan encompasses an evaluation of the internal and external environment, which includes analyzing the market as well as competitive, economic, socio-cultural, political, technological, and demographic environments. It also entails conducting a SWOT analysis of the company and addressing crucial concerns. Moreover, it delves into marketing objectives and strategies for target markets along with product strategy, pricing strategy, promotion strategy, and distribution strategy for both the company and its product.
Finally, the company provides recommendations for altering the company’s strategy and plan, including an implementation plan. The company holds a prominent position in the Australian car market, with the Commodore being the best-selling car since 1996. Being a local company in Australia, it enjoys a strong market share and trust from customers. Holden is a subsidiary of General Motors, and any cars exported from Australia by this company carry the Chevrolet brand name or other General Motors brands.
Introduction
The chosen company for marketing planning is Holden, based in Australia. The specific product is the Holden Commodore. Holden is a local Australian automobile company that is part of General Motors, an American company. The current Chairman and Managing Director of the company is Mr. Mark Reuss. Interestingly, the name “Holden” has a history predating the car company. In 1856, James Alexander Holden established a leather and saddlery business in Adelaide.
From that point on, the name Holden gained popularity. The logo of “Lion and Stone” was created by George Rayner Hoff in 1928. Currently, Holden manufacturing plants, showrooms, and service centers can be found throughout Australia, with a strong presence in the Australian market. The primary focus of Holden is the production and distribution of cars, engines, and automotive parts (Holden, n.a.).
Holden cars and engines are exported outside Australia under different brand names of General Motors, including Chevrolet. Currently, Holden employs over 13,500 individuals. In addition to manufacturing cars, Holden also produces engines. Other affiliated companies include Holden Special Vehicles, Holden Leasing, and Saab Australia (holden, n. a.). Holden has been the leading car company in Australia, with the Holden Commodore being the country’s top-selling car since 1996. The Commodore is available in various models and variants.
In 2008, this company celebrated its 60-year milestone by introducing the limited edition of Commodore, known as Commodore SS V-Series 60th anniversary (drive, n. a.). The company’s mission statement states their goal of becoming Australia’s most successful automobile company, driven by a passion for excellence and unwavering dedication to customer satisfaction (holden, n. a.).
Situation Analysis
Despite being Australia’s largest car producing company, Holden is currently facing financial difficulties due to its parent company General Motors experiencing losses. Holden currently operates 5 manufacturing plants, 310 authorized stores, and 12 authorized service centers across Australia. The brand employs over 13,500 individuals. In an effort to improve its financial situation, Holden plans to expand into the international market under its own brand name (conceptcarz, n. . ).
In order for a marketing channel to be successful, it is essential to have collective decision-making among the organization’s members. Additionally, a strong understanding among the organization’s workers is necessary. Research has shown that various factors, such as different types of customers, their enthusiasm and awareness about the product, and their attitude towards the product, greatly influence the channel. These factors need to be considered in future research (Ravi and Louis, 1988).
Holden, the leading car company in Australia, boasts a remarkably efficient and successful marketing channel. To optimize its efficacy and guarantee customer contentment, it is imperative for Holden’s staff to endeavor towards meeting their customers’ escalating requirements. Neglecting to do so may result in an imbalance within the company’s standing and overall circumstances.
Holden is an Australian company that supplies cars exclusively to the local market. Any cars that are exported outside of Australia are sold under the Chevrolet brand, as well as other General Motors brands. Currently, Commodore, Statesman, Caprice, and Ute models are exported to all continents except Antarctica, under the Chevrolet name. Only Holden-made engines are exported outside of Australia. The primary countries that import these engines are Germany, Sweden, South Korea, Thailand (for the Global V6 engine), and South Korea, China, Thailand, and South Africa (for the Family II four-cylinder engine). In 2008, a total of 211,000 engines were exported from Australia to these countries (Holden, n.a.).
Holden, an Australian car manufacturing company, has production units in Fishermans Bend, Dandeong, and Lang Lang in Victoria; Elizabeth in South Australia; and Adelaide. This widespread distribution allows Holden to compete strongly with other car companies in Australia. In addition, the company’s sales offices are located in Victoria, New South Wales (NSW), South Australia, Queensland, and Western Australia.
Holden, a local Australian company, currently has 310 authorized stores and 12 authorized service centers in Australia (conceptcarz, n. a.). However, Holden is now looking to expand internationally and will no longer label its cars exported from Australia as Chevrolet. The Holden Commodore has been a popular car in Australia since 1996 and offers various models that appeal to customers of all ages. These models have become highly popular among consumers.
The Holden Commodore is a popular choice in Australia because of its wide range of models, offering luxury options like the Omega and sporty choices such as the SV6, SS, and SS V-Series. This diverse selection allows the Commodore to effectively compete against other cars in its class, including those from Holden and Ford.
Direct rivals to the Holden Commodore SS V-Series are the Ford Falcon XR8 and XR6 Turbo, priced at around $51,330 and $46,405 respectively. However, customers tend to have more trust and reliance on Holden vehicles due to it being a local company.
As a result of these factors, the Holden Commodore has become Australia’s best-selling car.
[pic] (Holden Commodore) (Ford Falcon)
The economic environment is concerned with the purchasing and spending power of customers. These factors have complete control over the market, so it is important for businesses to launch products based on them. The income factor divides the market into various segments based on customers’ willingness to spend. Marketers should constantly monitor the latest trends in income and consumer spending patterns (Kotler, P, 1998). In Holden, we offer a range of products to meet the varying demands of customers in the market.
Commodore by Holden is available in various models with different price ranges. The price of a Holden Commodore starts from AUD 41,790.00 and goes up to AUD 54,290.00, catering to the demands of customers in the market (holden, n. a.). Due to the fast-growing Australian Economy and limited competitors, Holden has the advantage of easily expanding its business within the country in the future.
The demographic environment includes factors such as geographic distribution, population, gender, and age (Kotler. P, 1998). Among these factors, age has a significant influence on the market. Age divides the market based on preferences and interests. For example, individuals between 20-35 years old are more likely to prefer the sports model of the commodore, while those above this age group are more inclined towards the luxury model. Therefore, the market is segmented into different categories based on this demographic environment (Kotler. P, 1998). The Commodore brand is particularly popular among young people. The percentage distribution of different age groups is as follows:
- 18yrs. – 35yrs. = 45%
- 35yrs. – 50yrs. = 35% 50yrs. and more. = 20%
The political and legal environment in a country involves the government, laws, and influential groups (Kotler. P, 1998). In Australia, Holden, as a company operating solely within the domestic market, receives significant political government support. Holden is not only the leading car manufacturing company in Australia but also employs over 13,500 people in the country. This strong employment presence is a key factor in the Australian government’s support for Holden. Former Prime Minister Mr. Kevin Rudd announced that the Australian Government would provide a sponsorship of $150 million to the Holden Adelaide plant for the development of a new fuel-efficient car (abc. net, 2009).
Constantly occurring worldwide, daily inventions in this technological environment are responsible for the creation of various devices such as cars, computers, TVs, refrigerators, and more. The replacement of old technology by new technology is a common observation in fields like computers and automobiles. In order to remain competitive, companies must regularly update themselves. An example is Holden, which continuously works on future technology through its research and development department (Kotler. P, 1998).
Holden is set to launch their second carline in 2010, with support from the Australian Federal and South Australian Government. In addition, Holden is currently conducting research on start-stop hybrid technology and hybrid cars capable of running on E85 and CNG fuels. Commodore, a model already available on the market, has been launched in an LPG variant known as Commodore Omega. Holden Chairman, Mr. Reuss, believes this project will greatly benefit the economy, generating approximately $70-80 million in wages and salaries, as well as $30 million in research and development (holdencampaign, 2008).
SWOT Analysis
One of the strengths of this company is that it is Australian and locally owned.
- Exclusive brand name.
- Competitive cost.
- Variety of products.
- Available to all age groups.
WEAKNESSES
- Research consumes more time.
- The cars produced are only for the Australian Market (under this brand name).
OPPORTUNITIES
- Local Market.
- Researches carried out continuously.
- The product differentiation in the market.
- Products updated time to time.
THREATS
- Entrance of foreign car companies in the market.
- More Companies, More Competition.
- The market is limited.
- Critical Issues: Critical issues if we talk about Holden are the product differentiation and cost differentiation.
The significance of product differentiation is emphasized in these two issues, as competition is fierce in today’s market. Every company has introduced a car in every segment, priced similarly to other cars. The distinctiveness of your product lies solely in its uniqueness (Sidney. S, 1986).
Marketing Objectives:
- To successfully launch the product in the international market as it is in Australia.
- To have a dominance over the market.
- To deal with the latest technology.
- Product differentiation strategy.
- Meet all sectors of people.
- Awareness about the product.
- Increase in turn over.
Recommendations for change
Despite the changes, no adjustment is needed; however, maintaining its market position requires considerable effort from the company. To ensure its status as Australia’s leading car manufacturer, regular updates to products and assessment of customer demand are crucial.
Implementation plan:
- Company should start its new carline as soon as possible.
- Regular researches should be made to launch new products.
- Company should enter the international market as soon as possible. Company should develop new strategies to enter the international market.
- Company should introduce new attractive offers for the customers to increase the sales of the product.
Reference
- ABC News. (2009). Global Financial Crisis. Available: http://www. abc. net. au/news/stories/2009/02/19/2495704. htm. Last accessed 28 Feb 2009.
- Company Profile Overview. Available: http://www. holden. com. au/www-holden/jsp/corporateinfo/companyprofile/companyprofile. jsp. Last accessed 23 Feb 2009.
- Environment and Community Overview. Available: http://www. holden. om. au/www holden/jsp/environmentcommunity/environmentcommunity. jsp. Last accessed 24 Feb 2009.
- GM Holden. (2008). GM Holden to build small carline alongside best-selling Commodore. Available: http://www. holdencampaign. com. au/greatnews/ Last accessed 26 Feb 2009.
- Holden Commodore Sedan. Available: http://www. holden. com. au/www-holden/action/vehicleentry? vehicleid=4. Last accessed 27 Feb 2009.
- Holden History. Available: http://www. uniquecarsandparts. com. au/history_holden. htm. Last accessed 23 Feb 2009.
- Holden History. Available: http://www. onceptcarz. com/view/makehistory/62,0/Holden-History. aspx. Last accessed 27 Feb 2009. • Kotler, P (1998). Marketing. 4th ed. Sydney: Prentice Hall Australia Pty Ltd.
- McKinnon, B. (2006). New Car Road Test. Available: http://www. drive. com. au/Editorial/ArticleDetail. aspx? ArticleID=11205&vf=1. Last accessed 27 Feb 2009.
- Ravi. S, Stern. L. W. (1988). “Environmental Determinants of Decision Making Uncertainty in Marketing Channels. ” JMR, Journal of Marketing Research. 25 (1), 36.
- Sidney. S, 1956, “Barriers to New Competition”, Journal of Marketing, 21, pg. 88
