GM Holden Ltd Analysis

GM Holden Ltd AnalysisIntroductionGM Holden Ltd, commonly designated Holden, is an Australian auto turn overr that operates in Australasia and is headquartered in Port Melbourne, Victoria. The smart set was founded in 1856 as a saddler manufacturer. In 1908 it moved into the automotive field, before change state a subsidiary of the United States-based General Motors (GM) in 1931. After becoming a subsidiary of GM, the company was named General Motors-Holdens Ltd, becoming Holden Ltd in 1998the current name was adopted in 2005. There is a high demand for Holden in New Zealand grocery store. Market partition is a concept in economics and merchandising. A merchandise segment is a sub set of a marketplace made up of mass or organization with characteristics that cause them to demand similar crossroads based on qualities of those products or as impairment. True market variance meets each of the following criteria it is distinct from other segments (different segments have diff erent needs), it is homogeneous within the segment (exhibits and common needs) it responds similarly to a market stimulus, and it fecal matter be r each(prenominal)ed by a market intervention. The term is also used when consumers with identical product needs ar divided into groups so they can be charged different amounts.In this assignment the New Zealand market for Holden products is segmented to understand the customer needs and provide them with different kinds of Model and developing a marketing cockle that will sustain the tar limit market.In this study segmentation is analysed in four stagesAssess the potential for market segmentation.Apply market segmentation process.Determine positioning strategies for chosen segments.Relate market segmentation to the marketing mix.Question 1Assess the potential for market segmentation.Examine the implication of market segmentation to determine precise targeting of marketing in terms of the needs, wants and behaviours of markets.Ans. Ref erence to use of resources The resources in the business can be people, money, place etc. The central resource to run the business is people and money. There is a need of investment to start and run the business in a profitable way. tidy sum are also very important in the business with emerge people we cant start our business. Holden establish its business at that places from where they can get raw material very easily and reduce transport expenses.Understanding and meeting customers needs It is very important to find out what the customers want. Firstly Holden identify the needs of the customers and and then according to the need of the customers they made different models.Identification of competitors activities To gain the competitive advantages, Holden collect nurture about the competitors activity, what they are doing in the market to do to a greater extent sales like as Toyota, Hyundai, Mazda and many more.Evaluation of market implementation by segments Market performan ce is the amount of sale in a business. There are different groups in a business which gives different turnover rate in the market. So it is necessary to find the most suitable group providing the expected market performance.Identification of significant cultural influence New Zealand is a multicultural country. The customers priorities are affected by his/her ethnic background. So it could not satisfy all the needs of the market of cultural groups at the same time. Therefore, Holden make necessary efforts in the market to attract different cultural groups.Question 2 Apply market segmentation processes.Identify segmentation bases for markets and acknowledge geographic, demographic, psychographics and behaviouristic fashion.Ans HoldenNo.Name of productIncome segmentProduct usage and potentialSegment size and ingatheringSegment attracterObjectives and resourcesCompetition1CommodoreAbove $35,000Low10 %AverageAverageLow2Captiva$20,000-$25,000 strong point30%Very goodSufficientMediu m3CruzeBelow $20,000High60 %excellentPlentyHighCommodore People pervert this model that have above $30,000 income. The competition of this model in the market is low as the price is very high. Due to high price the usage of this gondola car is also very low. Segment size and growth is also very less.Captiva The usage of this car is medium in the market as the price is affordable to middle straighten out family. Income group between $20,000-$25,000 buy this car. The competition of this this car in the market is medium. Segment attractiveness is also good.Cruze Most of the people prefer to buy this car. Below $20,000 income group buy this model. The usage of this car is very high in the market. The competition of this car is very high because the price is affordable. Objectives and resources of this car are plenty. Segment attractiveness is excellent.Question 3 Determine positioning strategies for chosen segments.3.1 Select target market segments and apply segmentation strategies.A ns Positioning A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they whitethorn try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very fractious to reposition it without destroying its credibility.Undifferentiated Market Sales-growth strategy that ignores market segment differences and attempts to appeal to all prospective customers with a single, basic product line through smoke advertising and distribution.Differentiated Marketing A sales growth strategy in which several market niches or population segments are targeted with different products for each niche or segment.Concentrated marketing Growth strategy in which resources of a firm are foc used on a well-defined market niche or population segment. individualistised Marketing Any kind of communication to individuals by the companies or retailers can be termed as individual marketing. Individual marketing is often customized as per the individual customers. The demand can be directly communicated to the suppliers or manufacturers and they can be provided with customized products as per their demand.3.2 Establish positioning variables for each target market segment and determine positioning strategies.Ans Product Attributes The HOLDEN produces all kind of vehicles, such(prenominal) as sports cars, luxury cars, sports utility vehicles and fuel efficient cars as well. These all are the product attribute. This provides a wide selection range to the buyers. Thats why, HOLDEN manufactures vehicles of all classes according to the demands of the people and their excerpt, in this way, the business can increase more value in the New Zealand market.Usage and Users Usage is defin ed as the way that something is being used, or to the proper way to make use of something. In a market, it is very necessary to look into the usage of the products and the users. The use of the vehicles may vary according to the age group of users. The Holden made its product according to the different type of users. Such as luxury cars for elite class, sports racing cars for youngsters and fuel efficient cars for middle class.Product Class Product class means that the group or range of products according to the class of people. For example, HOLDEN makes their cars to target the every class of society. They make cars from 1500-2000cc up to 7000cc sports cars. They are classified into different people according to their income, and class.Customer Needs and Benefits It is very important in the railway car industry that the cars which are available for users are satisfying their needs and providing the benefits to them. That means the car which is purchased by customer is fulfilling hi s requirements and putting no additional pressure of maintenance cost on buyer. Competition Holden have a lot of competitors in NZ automobile market. Everyone introduce cars with better features and affordable prices. So, it is necessary for HOLDEN to build such type of cars which are able to compete with the rival companies. Its also very important to keep the price of newly built cars in the reach of customers.Cultural Factors Culture is the most basic reason is that effects persons choice while buying a vehicle in New Zealand. New Zealand is a multicultural country, so they need to make the cars for satisfying needs of all ethnic groups. Like, the people from Asian countries are always show interest to buy cars from Asian manufacturers because they are less costly as compared to other brands. This ingredient also effects the sale of Holdens vehicles.Question 4 Relate market segmentation to the marketing mix.4.1 Assess the implications of market positioning strategies for marketi ng mix decisions in terms of organisational marketing objectives.Ans Marketing Mix The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is a planned mix of the controllable elements of a products marketing plan commonly terms such as, Price, Product, Place and Promotion.Product In every business, quality product is the main factor for running a business. So if the products are not qualitative enough, then there is more probability of losing the customer but if we have qualitative product, then more customers gets attracted and there will be more sale. Hence, qualitative product for the customers helps to make more profit in a business. As our Company is Holden, our products must meet that standard. All the customers must feel they are getting more than they paying.Price If the price of the Holden cars are affordable and economic, and if there are more models and offers then its obvious the sales will increase. If the price doesnt w orth then people buy other brands of car because the competition is more in the NZ market so it will effect on the business.Promotion To run the business, it is very necessary to do the promotion of the newly cars. There are various ways to promote the business such as give advertisements of the different models of cars. In this ways, we can create good picture of our product in different style into peoples mind.Place In the car business, it is essential to choose the right place for the business to run successful. If the place is not suitable then no one will go there and buy. We should establish our car business in the city where people can see upcoming models. And can buy and fulfil their needs.4.2 Recommend observe mechanisms for market positioning strategies according to strategic marketing plans.Ans. Plan Control The Plans are done by the top and middle management to get the one-year report of the results whether the results are achieved or not. With the help of plan control , one can compare the actual plans with the standard plans to get the variance between them and also it provides the sales and market share analysis.Feedback we need to get feedback from our customers whether the like our new models or not. If not which feature they dont like or what feature should include according to them. From the feedback we can know the need of the customers.Survey in this survey there are questions and you needed to tick or give yes or no according to the customers need. From the question given in the survey we can find out the actual needs of the customers like any new features etc.