Executive Summary
Subaru (formerly Fuji) is a global car manufacturing company renowned for making fast, rugged, and dependable four-wheel drive cars associated with various car competition events. The company was founded in 1932 in Japan and has, over the years, grown to become one of the largest automaking companies in the world (Ikeda, 2022). The success of this company can be attributed to various values, such as its focus on innovation, quality, and individuality (Subaru Cars, n.d.).
This marketing plan aims to conduct a situation analysis and propose a new product for the company, an electronic compact car, then develop a comprehensive marketing strategy. The proposed marketing plan will be based on the internal strengths and weaknesses of the company and the external opportunities and threats that Subaru faces. The proposed strategies will guide Subaru to successfully introduce the new car and help it increase its market share in the Electronic Vehicles (EVs) industry.
Description of the Company
Subaru is a well-known company that has been associated with innovation, high-performance levels, and reliability factors that have kept its customer base loyal. The company has specifically been dedicated to manufacturing a symmetrical all-wheel drive system that has put the company ahead of many of its competitors in that regard. The dedication to balancing motor power in all vehicle wheels has made its cars fast and adept to various roads and weather conditions. Today Subaru is very popular in regions with challenging road conditions, as its cars have been able to navigate these regions seamlessly.
Products Offered
Subaru has for a long time focused on producing products that offer both safety and power. The company has a diverse portfolio of products that it offers to its clients. The main products offered by the company, as seen on its website, include SUVs, sedans, and hatchbacks, many of which are designed in an aesthetically pleasing manner. Subaru also offers maintenance services, parts, and accessories for its clients. However, Subaru has not been keen only on the fast-growing EV industry, making it lag behind companies like Tesla in implementing the new technology.
Key Competitors
The automotive industry is one of the most competitive industries in the world, with many big multinational companies competing with each other and many car manufacturing startups globally. Well-established vehicle manufacturing companies like Toyota, Honda, Ford, Tesla, and General Electric, pose a significant challenge to Subaru, making it unable to achieve its desired market share. Competition in the automotive industry is usually different from the general competition as one vehicle brand for Subaru is likely to only compete with other brands from different organizations that offer similar services and quality and are almost equally priced. The competition also varies based on region, as car companies have different headquarters that almost independently manage their operations.
The New Product to Develop
The proposed new product is the Subaru electronic compact car that aims to provide similar services such as high car power and enhanced safety while ensuring environmental sustainability. The electronic car will be designed in a manner that is aesthetically pleasing and will be made in an asymmetrical model design that has come to be associated with Subaru. The product will target the developing world as Subaru will seek to be the first mover of EVs into these regions.
Justification of Marketing the New Product
Subaru has the strength of having a good brand reputation, and clients will likely welcome the new electronic car when advertised. The company has an opportunity to diversify into electronic cars for regions with adverse climatic conditions and poor roads; thus, it needs to market its product as a sustainable car for underdeveloped regions. Subaru has a limited global reach, and marketing its electronic car could mitigate these challenges. When marketing this product, Subaru must view its customers as collaborative partners rather than passive targets (White, 2019). There is intense competition in the automotive and electronic vehicle industry, and Subaru has to solve this problem by having a well-designed marketing strategy. Subaru’s SWOT analysis is shown in the appendix.
Core Product, Extended Product, and Product Concept
The core product will be the electronic compact car that can navigate extreme weather and road conditions. The product will reveal Subaru’s dedication to environmental sustainability. The extended product will be the electronic charging stations that Subaru and its partners must establish in these developing regions. Moreover, Subaru will seek to develop technologies that make EVs a reality in developing regions and sell these to other automotive companies. The concept for this new product will revolve around environmental sustainability, safety, and car abilities to navigate rough terrain.
Achieving Competition Differentiation
In the competitive automotive industry, Subaru must have a strategy to differentiate itself from its competitors. The proposed EV will differ from what Tesla and other electronic car manufacturing companies produce as it will be targeted for rough roads in developing regions. The car will also be made to be secure and will have to be fitted with self-charging technologies such as solar systems since the developing regions could lack charge stations that are proximal to each other.
References
Ikeda, M. (2022). History of Japanese design. In T. Aso, C. Rademacher, & J. Dobinson (Eds.), History of design and design law: An international and interdisciplinary perspective (pp. 3–17). Singapore: Springer Nature Singapore.
Subaru Cars. (n.d.). Subaru cars, Sedans, SUVs. Web.
White, S. (2019). Principles of marketing. (2nd ed.). Bridgepoint Education.
Appendix
Subaru’s SWOT Analysis