Pricing objectives pursued by Great Wall Motors in the Australian market
Great Wall Motors is a Chinese carmaker known for its expertise in the manufacture of SUVs and SAVs. The company has been doing well in China and other parts of the world due to their quality. Motor vehicles from this company are extremely effective when compared to other models in the market.
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The company has in the recent past come up with a marketing strategy of extending its markets beyond the Chinese market (Kim and Mauborgne 2005, p.98). The company has come up with a pricing strategy that will enable them to venture into the Australian market. To compete with other players in the Australian market, the company carried out market research to know more about the buying behaviors of Australian consumers.
This helped the company to come up with a pricing strategy to ensure that they sell their motor vehicles to Australians. The aim of ensuring that their prices are appealing to the market is the maximization of profits by maximizing sales. If a company tries to venture into a competitive market with oppressive prices, customers may never be able to purchase their vehicles.
The prices for each model of their vehicles should match the incomes of the target consumers. This encourages consumers to buy more because of affordability. Consumer behavior may be triggered by the perception people have towards the cost and quality of products presented in the market. This means that Great Motors Company should ensure that they maintain the quality of their vehicles regardless of the low venturing prices.
This will encourage consumers in the Australian market to buy from the company which is already known for quality in China. If many people turn to buy their motor vehicles due to affordability, the company will have increased sales volume hence increased profits.
Toyota Marketing manager’s responce to the threat posed by Great wall Motors Ute model
To counter the threat posed by Great Motors Ute model, Toyota’s marketing manager should first of all consider carrying out market research. This is vital because it is going to expose them to the tactics and strategies their competitor is using to trigger the effect in the market (Rao 2009, p.56). The manager should come up with ideal decisions regarding what they observed from the market. This means that they should be able to introduce a pricing system that will caution the rate at which consumers are shifting to buying the competitor’s vehicles.
Also, they should come up with a promotion strategy aimed at reminding their loyal customers that Toyota Hilux is the best vehicle in the market. This can help in countering the Ute’s threat. Since customers know that Toyota’s Hilux is an excellent truck, they will have to consider it before making a final decision to buy Great motors’ Ute model. Failure to communicate to consumers is dangerous as they may shift from the company’s brand those of competitors venturing into the market (Pandey 2007, p.91).
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The marketing manager should consider developing a sales promotion strategy to encourage customers to buy their products, as opposed to those of their competitors. For example, they may come up with price cuts hence making their vehicles cheaper than those of the competitor. They should ensure that consumers are kept in touch by running advertisements in various mediums. Marketing communication is particularly valuable in countering threats from competitors since customers require to be reminded that the brands still exist in the market.
Kim, W C & Mauborgne, R 2005. Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, Harvard Business Press, London.
Pandey, S 2007. Pricing Management, Global Vision Publishing Ho, London.
Rao, V R 2009. Handbook of Pricing Research in Marketing, Edward Elgar Publishing, Sydney.