Marketing Plan for Launcing a New Car

Topics: Automotive industry, Ford Motor Company, General Motors Pages: 31 (9287 words) Published: March 19, 2012
Primo –MEDDA Launch


Executive summary
From all the analysis carried out, an opportunity for future growth was found in the small saloon and hatchback division. A new car which will be produced in two types a 5 door occupying 70% of sales and 3 door hatchback representing the 30% was developed to be suitable for a family’s additional car. Therefore, the Primo Medda has been developed which will comply with the requirements for our target segments as it is fuel and thus, cost efficient. Additionally the main brand values corresponded will be safety, reliability and affordability. A sales forecast is envisaged of 375742 units over a 5 year period and break even will be at a point of 362060 units including all the variable and fixed costs over a period of 5 years (which is why it’s lagging) but profits are attained from year 2011 and on totalling at $198 million over the life span.


1. Introduction3
2. external Analysis3
2.1 PesteL Analysis3
2.2 Industry Analysis7
2.3 Porters Five Force Analysis11
3. Internal Analysis12
3.1 Segmentation12
3.2 Targeting12
3.3 Positioning12
3.4 Financial Audit13
4. SWOT13
6. Strategy14
6.1 Product14
6.2 Segmentation14
6.3 Targeting14
6.4 Positioning15
6.5 Perceptual maps15
6.6 Porters Generic Strategy16
7. Objectives16
8. McKinsey’s 7S’s Framework17
9. Marketing Mix17
9.1 Product17
9.2 Price18
9.3 Place18
9.4 Promotion18
9.5 People19
9.6 Process19
9.7 Physical Evidence19
10. Budget + Break-even20
11. Recommendations21


1. Introduction
Primo is the third largest car manufacturer in the UK occupying 4 divisions. To gain profitability and increase shareholders’ value, this report is conducted to produce the future strategy. Hereby research will go into depth with both the external analysis, using a variety of models such as the pestle to assess the macro-environment and a thorough industry analysis to investigate the meso-environment, and internal analysis.

With the outcome of that analysis, the best strategy to correspond will be formed with the focus on launching a new product in one of the four divisions. This report is based on the UK market only and recommendations for any future approach will be given after presenting the new strategy.

2. external Analysis

2.1 PesteL Analysis

Political| Changes are made in the road tax system; the number of tax bands will increase from 7% to 13% with higher penalties according to the emission level (Parker, 2009).Possible elections of Conservative party could see changes, such as withdrawal of scrappage scheme which has since its introduction seen a total of ‘367,929 cars (increase of 11.3% on previous year prior to scheme) sold’ (Wearden, 2009). Due to this scheme being introduced, the year-on-year registrations for new cars were up ‘11.7 per cent for the month of September 2009’ (Williams, 2009). Figures show that ‘78,339 cars were registered through the scrap page scheme in September alone, bringing the total year-to-date figure of scrap page-registered cars to 181,117, showing just how popular the initiative has been with consumers, who have taken advantage of a £2,000 discount offered on many new vehicles to trade old models in. There are also plans in place to inject a further £100m into an extended lifespan into 2010 by the government due to its success. This has stimulated sales and possibly saved tens of thousands of jobs’ (Wearden, 2009).| Economical| Until the 3rd quarter of 2008, the British economy had a positive growth rate but at a slower pace. However, UK’s business cycle is at the stage of recession now as it had a ‘negative...
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