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Marketing the 2cv in USA, Research Paper Example
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Introduction
Entering the used car market in the USA during a time of recession would take a bold marketing plan. This particularly when Citroen has no real market presence in the USA. See Fig 1 which illustrates the latest table for 2009. The Japanese firms of Toyota and Honda have better market presence than that of the US domestic car manufacturers. This has essentially been due to two key factors (i) Quality and reliability – established track record of reliability (ii) Price – very competitive in terms of value for money. Ford have made up a lot of ground recently by enhancement of the product range, improving qualities and efficiencies and offering extremely good 0% interest financial deals. Citroen would need a hard sell in the marketing mix in order to compete.
Examining the Marketing Mix
The Marketing mix essentially examines four components within the overall marketing strategy: (1) Price (2) Place (3) Product and (4) Promotion. Hence the offer that ends up being made to the customer can depend upon how you mix these elements. Considering the Citroen 2CV sale in the USA we might determine the following preliminary analysis that will determine our marketing mix and ultimately the approach to marketing the car in the USA.
Marketing Mix | Current Situation | Analysis |
PRICE | A highly competitive market place in both new and used car sales. US is in a recession so attractive financing required to generate sales | Affordability and competitive pricing would be a key element in generating sales in a fiercely competitive market place |
PLACE | The 2CV is more likely to appeal as an urban commuting car in Cities. Low speed, easy to park, low fuel consumption, trendy European car | The distribution channels should be aimed at US Cities as a means of offering a low cost affordable trendy commuting vehicle |
PRODUCT | Needs to follow same concept as Volkswagen Beetle. Trendy little European car, rugged, reliable, easy to maintain, fun / enjoyable, makes personal statement about you. | Essentially selling a concept car. A vehicle to enjoy and have fun with. A city run about car that is easy to park, maintain and fuel efficient |
PROMOTION | Selling a dream. Appealing compact European car. Great for getting noticed. You are not obsessed with speed but ‘dolce vita’ you enjoy the good life. | Selling to the more mature market or the “baby boomers” who want a low cost, low maintainable town car that reminds them of the good times. Will appeal to female gender as a fun car. |
Hence the market analysis illustrates that you would need to enter with a relatively competitive price and good finance purchase options. You would target Cities and the urban commuter as the main distribution channel. You are selling a concept car that is practical, fun and more about the experience and makes a personal statement about your enjoyment of life rather than being trapped by the conventional. The car is most likely to appeal to the female gender, both young and old alike, but more skewed towards the baby boomers 50 & 60 year olds who are less concerned about image and speed but quality of life in a fun low cost car.
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