The Acura MDX Sports Hybrid SUV has been in the automotive market for two years and has grown to become a leading product in terms of its sales. One of the primary reason that has led to the success of the product is its effective marketing strategy compared to its rivals.
Acura MDX Sports Hybrid SUV Marketing Mix
The Acura MDX Sports Hybrid SUV was first introduced into the market in 2017 and was instantly considered as one of the best SUV units into eh market thanks to its three electric motors, a dual-clutch automatic transmission, electro-servo braking, and electronic torque vectoring. However, the automotive industry is perpetual with different car companies developing new models on a yearly basis a factor that has led to the development of the new Acura MDX Sports Hybrid SUV. The new vehicle continues to have the appeal of its predecessor; nonetheless, it hosts more power in the powertrain as a performance pack 3.5-liter V-6 engine now supports the three electric motors. Additionally, the new model comes with a seven-speed dual-clutch automatic transmission as well as varied terrain response system that guarantees for a smooth ride.
Price in a marketing mix is used to attract clients based on a ‘return on investment’ (ROI) or value for money basis. As cited by Smith, customers notice a clear differentiation not only in terms of lower prices but also the quality of the product against the requested price (56). The reasoning behind this premise is that a poor quality product will always be cheaper than a high-quality commodity; subsequently, getting a higher priced but reliable and satisfactory product makes for a better RON than its cheaper counterpart. The Acura MDX Sports Hybrid SUV market price range is set at about $52,100–$58,150, which is similar to other SUV of its categories. However, when analyzing the Acura MDX Sports Hybrid SUV price range in the open market it is evident that there exists significant value on investment because its competitors such as Land Rover Discovery, Lexus GX 460, and Mercedes-Benz GLE 350 are slightly higher priced and they are not economical hybrids. The Acura MDX Sports Hybrid SUV may run on a high capacity.5-liter V-6 engine that is bound to have high fuel costs; nonetheless, its rivals such as the 2018 land Rover Discovery has a 3.0-liter V-6, the Lexus GX 460 has a 4.6-liter V-8 , and Mercedes-Benz GLE 350 3.5-liter V-6. The differentiation that makes the Acura MDX Sports Hybrid SUV has a lower fuel consumption rate due to its electric motors. The Lexus GX 460 consumes 16 Combined MPG, the Landrover has an 18 Combined MPG rating, Mercedes-Benz GLE 350 take up 20 Combined MPG while the MDX hybrid’s 27 mpg stands as a clear value for money.
In the marketing mix place is a significant aspect to consider, as it is a phenomenon that allows clients to access the product. As explained by Wind and Thomas for a product to be successful in a competitive market it should be readily available in different locations that make it convenient for the clients (72). The automotive industry, unlike other consumer product markets, is determined by dealerships, which not only offer the car modes that attract higher sales but also offer company complimentary services such as ample repair options, genuine auto parts, as well as the provision of market upgrades. According to a google search study conducted by Nick Foxe, a vintage car collector, back in 2011, there were about 250 Acura dealerships in the U. However, seven years later the same process highlights over 600 Acura dealerships in the US that offer clients with a variety of the company’s cars including the Acura MDX Sports Hybrid SUV in California a known prime market for SUV sales, for instance, has 43 Acura dealerships.
The element of promotion is primarily based on communication of the product to the market through the Above the Line (ATL), Below the Line (BTL), & Through the Line (TTL) channels. Promotional strategies are usually based on the commodity and with this taken into consideration, the automotive market is primarily dependent on product description and price. In other words, the automotive market has grown in competition and in the process has seen a variety of product features such as safety, comfort, power, as well as additional accessory become a primary field of concern; additionally, the price in comparison to the product description plays a major role in the success of the product. The Acura MDX Sports Hybrid SUV is currently promoted through a variety of channels particularly the Above the Line (ATL) channels through online blogs, video reviews, as well as social media. This has seen the brand grow astronomically over the last two years.
The Acura MDX Sports Hybrid SUV target market
The automotive industry is significantly segmented, as it is believed that the products provided are not ‘one size fits all’; subsequently, the Acura MDX Sports Hybrid SUV is primarily set appeal to a family consumer bracket, which is highly knowledgeable and active towards the environment protection promotion. The consumers targeted are of an older demographic about 30-40 years old with an earnings of $200,000-$300,000/year.
Competitive Analysis (BMW- BMW X5 SUV and Acura MDX Sports Hybrid SUV 4ps)
Products. The plug-in hybrid X5 was first introduced into the market in 2016 and has not been improved over the time; however, the BMW X5 SUV is much upgraded. Nonetheless, the new model is not a hybrid as compared to the Acura MDX Sports Hybrid SUV.
Price. The Acura MDX Sports Hybrid SUV has a smaller price tag than the X5, however, in some accessories, the BMW has more to offer thus making the Acura MDX come in at lower in the class rankings. Nonetheless, when it comes to value for money the Acura MDX is better value.
Place. The BMW X5 is considerably more available than the Acura MDX Sports Hybrid SUV primarily because BMW automotive company has more car dealerships in the US than the Acura, which offer the product.
Promotion. Both the BMW X5 and Acura MDX Sports Hybrid SUV have set up their promotion campaigns on a mass marketing platform, particularly online marketing. However, though the strategy maybe same the tactics are different
Comparison of BMW- BMW X5 SUV and Acura MDX Sports Hybrid SUV promotional tactics
The Acura MDX Sports Hybrid SUV is promoted through the internet much more aggressively through reviews from a variety of automotive blogs and websites. Additionally, the company has a dedicated website for the vehicle that features comments from a variety of industry experts. Video content online particularly on YouTube feature more of the Acura MDX Sports Hybrid SUV than the BMW X5. On the other hand, though the BMW X5 has not been aggressively mass promoted, the vehicle is well featured in fewer motoring websites compared to the Acura MDX. Nonetheless, the company has centered on marketing its dealership due to the wide range of vehicles it offers.
Comparison of Acura and the BMW value proposition
Acura’s value proposition is promotional highlighting the high-quality of its product as compared to the BMW X5. According to Acura’s first value proposition, the interior of the vehicle is exceptionally promoted on the other had the BMW X5 value proposition on their product is informative. For instance, according to the company website the seating positions, the high-quality material use, as well as sitting profiles are comprehensively explained thus presenting a reason to buy the product over its competition.
Smith, Wendell R. “Product differentiation and market segmentation as alternative marketing strategies”. Journal of marketing 21.1 (1956): 3-8.
Wind, Yoram, and Thomas S. Robertson. “Marketing strategy: new directions for theory and research.” The Journal of Marketing (1983): 12-25.