Sample Paper on Performance of Infiniti QX 80 car in Dubai Market

Executive summary

This paper evaluates the performance of Infiniti QX 80 car in Dubai market by taking analyzing a market survey carried out in the region. The automobile industry is Dubai is a major contributor to the economic growth and development of the country thus making the study necessary. The study is aimed at establishing the factors that the company should consider during product development in light of the preference of the customers. The paper provides a detailed marketing plan that the company can use to maximize its potential in the automobile industry. The marketing plan contains a market analysis that highlights the factors such as the nature of the target market. It also highlights the competition analysis in the company by evaluating the strengths and weaknesses of the primary competitors of Infiniti in the industry. The plan also analyzes the company factors that may influence its success. The methodology section contains a report on the survey that was carried out in relation to the study. It concludes with recommendations on the measures that the company can implement to enhance its market share.

 

Introduction

Market plan is one of the essential tools that guarantee success for any business organization. It is through the marketing plan that a business maintains focus towards achieving the set objectives. Before designing a marketing plan, it is necessary for the business to carry out adequate research on the internal and external environments within which the organization operates. The internal analysis is helpful to the company as it helps identify the primary strengths and weaknesses that are within the organization’s power. This implies that the business has the potential to maximize its earnings by working on the factors that weaken its efficiency and taking advantage of its strengths (Mohr, Sengupta & Slater 2010).

The external analysis is also important as it helps the company to identify those factors that affect its business but are beyond its control. Some of the threats that a business might face may not be easily controlled by a single company but it requires the action of the whole industry or economy and it may take some time. The actions of competitors are beyond the company’s control but they have the potential to affect the performance of the company. The external analysis helps in identifying the opportunities that the business can take to succeed in business. The environmental scan is also important in identifying the forces within the market that affects a business.

Formulation of a good marketing plan entails carrying out a situational analysis that involves determining the market trends, demographics, needs and growth so as to come up with the most suitable objectives for success in the market. The situation analysis also considers the level of competition in the market, the SWOT analysis and the general macro environment. Marketing strategy is another component that makes up a marketing plan. It comprises of actions that guide the company towards achieving its marketing objectives. The marketing strategy helps the business to remain focused on its marketing and financial objectives as well as its mission. It defines the most suitable ways of gaining a large market share through appropriate use of marketing mix and marketing research. A marketing plan is incomplete without providing the expected income for the company by carrying out an analysis of the expected sales and expense accounts. To enhance implementation of the marketing plan, there are controls or specifications of how the plan will successfully be achieved. This paper aims at evaluating the performance of Infiniti QX 80 car in the UAE market, specifically in Dubai by carrying out an analysis of the marketing and pricing strategies used. It formulates a marketing plan based on a survey that was carried out in the country involving its residents who are potential and existing customers of the product.

Statement of the problem

The level of competition in the modern business environment is increasing by the day thus making it necessary for companies to carry out accurate market research to survive in business. Efficiency is the primary factor that leads to success of businesses. inefficient businesses are unable to survive the stiff competition in the market because of the huge losses they incur due to factors such as low sales revenue and little market share (Dibb & Simkin 2005). To enhance efficiency in the market, it is important for companies to carry out adequate market research. This enables them to formulate accurate marketing plan that outlines the most appropriate strategies that the company can use to attract new customers while retaining the existing ones. The failure to carry out accurate market research leads to formulation of inaccurate marketing plans that may cause huge losses to the company.

The automobile industry is one of the sectors where the firms operating in it reap huge profits but they may also incur massive losses and even going bankrupt. The industry is one of the most successful in Dubai thus it is the best place to carry out research on the success of automobile products.

Rationale of the study

Every country wants to attain economic growth and development within the shortest time possible as this enhances the welfare of the society. Success in business is among the factors that are known to promote growth and development of the economy (Stone 2001). It is thus important to carry out market research in the business sector. The automobile industry is one of the key sectors that contribute a significant input to the growth and development of an economy. In Dubai, this is one of the primary industries whose collapse may cause an adverse effect on the economic and social welfare of the nation. The industry contributes to the success of Dubai’s economy, not only through business taxes but it is one of the primary employers in the country. Employment is among the factors that stimulate an economy because of the increased aggregate demand (Ferrell & Hartline 2014). It is thus important to carry out research on companies whose performance has the potential to develop or destroy the economy.

This study is not only important to the company that markets Infiniti QX 80 car in Dubai but it is helpful to all other automobile companies in the region, and across the globe. The marketing plan identified can be useful to other companies, even those that do not deal in automobile products. The market research about the business climate in the region can be useful to investors who plan to venture into business in the region. The government and other policy making institutions can use the research to identify the steps that they need to take to make the business environment in the country more attractive to both domestic and foreign investors.

 

Statement of research questions

  1. What is the situation of the automobile industry in Dubai?
  2. What are the main competitors of Infiniti QX 80 car in Dubai?
  3. What is the performance of Infiniti QX 80 car relative to other competing brands?
  4. What are the marketing strategies employed in selling Infiniti QX 80 car in Dubai?
  5. What are the pricing strategies employed in selling Infiniti QX 80 car in Dubai?
  6. What product developments are associated with Infiniti QX 80 car?

Statement of hypothesis

The success of any business is based on the quality of market research of the environment within which it operates. Formulating sound marketing plan involves an accurate market research on the industry as well as the internal environment.

Research gap

The accuracy of the research is limited by the lack of required resources in terms of information. For instance, it is not possible to get the product development plans that are in the process of being implemented.

Research objectives

The study aims at establishing a marketing plan for an automobile product, Infiniti QX 80 car in Dubai. The marketing challenges identified are set to be used to rectify the situation and make the country a more attractive business environment. The study also aims at evaluating the methods that can be used by automobile companies to penetrate the industry in Dubai.

 

Marketing plan

Driving forces of marketing

Driving force Implications
Nature of the target market ·         Sales revenue

·         Customer loyalty

·         Product development

·         Size of the market share

·         Profitability of the company

Economic development of the nation ·         Level of employment

·         Aggregate demand

·         Sales revenue

 

Government regulations ·         Level of taxation

·         Pricing of the products

Ease of market entry ·         The number of firms entering the industry

·         Pricing

·         Product promotion

·         Product development

Employee relations ·         Quality of employees

·         Quality of customer service

·         Feedback

·         Product development

For one to come up with the most effective marketing plan, it is important to understand the forces or factors that drive the market. These factors are crucial to formulation of the marketing plan as they help identify the behavior that would attract and retain more customers (Batra, Myers & Aaker 2009). The driving factors in a market are determined by carrying out market, competition and organizational analysis. The forces have varying magnitude and effects thus it is important to categorize the factors according to their effects and implications on the business.

The driving forces related to the market may affect the business adversely, especially because it lacks the power to manipulate market forces. In relation to the market, some of the driving forces may include the nature or characteristics of the customers, the economic development of the nation and government regulations of the industry (Westwood 2013). In terms of impacts on the business, the characteristics of the customers have the largest impact. The primary reason for existence of businesses is to meet the needs of customers and thus it is important to ensure that their satisfaction is met. The tastes and preferences of customers determine the strategies that the company may need to take with regard to product development. It is also important to determine the economic situation of the target market to know the pricing strategies that could produce the most desirable outcome. A business that is able to satisfy the target market gains a large market share and this enhances its profitability and influence in the industry. The economic development of the nation determines the amount of revenue that a company can possibly generate within a given period. Economic development influences the level of employment in the country that then influences the aggregate demand. This has the potential to affect the success of the business either positively or adversely (Powell & Dimaggio 2001). Government regulations also have an impact on the success of any business because they define the terms of doing business. The regulations may affect the demand of products through taxation mechanisms that influence the pricing of the products.

Competitive analysis is another area that indicates the driving forces within the market. The ability of an industry to generate high revenue attracts more competitors but the less efficient firms cannot keep up with the competition and they withdraw with time (McDonald 2007). An industry that does not have restrictions with regard to entry of new firms has a high level of competition that influences the company’s actions with regard to pricing and type of product promotion that appeal more to the customers. In relation to the organization, the driving forces include internal factors such as employees and the financial resources. The employees determine the success of the organization since they have a direct contact with the customers. In most cases, they are the ones who obtain the customer feedback and this may influence the strategies of product development.

Market analysis

The analysis is crucial as it determines the factors that influence the buying decisions of the customers. The customer need analysis helps the company to define the most suitable strategies to meet satisfaction of the customers in better ways than the competing firms (Calkins 2012).

Customer needs analysis

 

Key customer groups Customer needs
Middle-aged customers (30 to 40 years) Safety, luxury
Male customers Luxury, brand features, performance and quality
Middle income earners (10,000-20,000) Safety, price and low fuel consumption
High income earners (20,000-30,000) Performance and quality, brand features as well as luxury

 

From the customer analysis it is evident that the company needs to be sensitive to the unique needs of the different types of customers. Customer needs influence various factors such as the type of marketing strategies to use. For instance, targeting the income earners may require the company to design adverts that emphasize on the quality and performance of the car. For the low income and female customers, the company may use pricing strategies as the groups are very sensitive to changes in prices. The customer needs also dictate the direction of product development to meet needs such as safety and comfort.

Product analysis

 

Product Benefit
Infiniti QX 80 car Safe
Infiniti QX 80 car Low fuel consumption
Infiniti QX 80 car Performance and quality
Infiniti QX 80 car Comfortable
Infiniti QX 80 car Affordable
Infiniti QX 80 car Good shape and brand features

The product analysis is based on the needs that it is able to meet for the different type of consumer groups.

Target segments on order of priority

The primary market consists of men and women aged between 30 and 40 years and the major factor that influences their buying decisions include the fact that the car is safe and comfortable thus offering them with the luxury they need. This target market has the highest influence in the market as it has an estimated sales potential of 500 units annually, generating a market share of 1400 customers. Gender is the other factor that is important in classifying the target market. Most of the consumers are male, probably because they earn more income than their female counterparts. They make up the secondary target market and the factors that influence their buying behavior include performance and quality of the car, brand and shape of the car and comfort. The middle income earners make up the tertiary market as they do not have to buy the cars. The level of their income may discourage them to purchase the car. High income earners are the periphery target market as they may chose not to purchase the products for failure to meet their high demands. Furthermore, there are other products that are more expensive in the market and this may create an impression of high quality.

Competitive analysis

 

Competitor Strength Weakness
Lexus ·         High brand awareness

·         Customer loyalty

·         Stylish and dynamic design

·         Wide of products which enhances its market diversity

·         Limited products in growing markets

·         Difficulty in availability of spare parts

·         Poor distribution channels

Range Rover ·         Brand awareness

·         Experienced business units

·         High capital due to high profitability

·         Reduced amount of money spent on labor

·         Reduction of revenue due to competition

·         Poor investment in research and development that is likely to affect its success in future

Cadillac ·         Wide market presence worldwide thus has the potential to influence the automobile industry globally

·         Good brand recall

·         Ability to promote a clean environment by manufacturing electric cars

·         It is yet to establish its products globally

·         Limited finances from the parent company

·         Poor distribution channels.

 

 

 

 

 

Competitive analysis of the company and the main competitors

 

 

Key success factors

self Lexus Range Rover Cadillac
Product offered 3 4 3 3
Product quality 3 4 4 3
Cost 4 1 2 3
Management 3 2 4 2
Marketing skills 3 3 4 2
Marketing effort 2 4 3 2
Technology 2 3 2 4
Sales force 3 4 3 2
Distribution 2 2 3 1
Pricing 4 3 3 3
Manufacturing 3 3 3 2
Financial strength 3 4 4 1
Location 3 3 3 2
Promotion 2 4 3 3
Total

 

40 44 44 33

Scale:   Best-4

Good 3

Fair 2

Poor 1

From the above analysis it is evident that Infiniti QX 80 car product still has high chances of beating the two main competitors that have a larger market share.

Organizational analysis

The analysis helps the company in identifying the internal factors that can be used to promote success of the business (Doole & Lowe 2008).  The SWOT analysis is one of the major tools that the company can use to identify the most appropriate marketing strategies. The following is the SWOT analysis for Infiniti Company.

Strengths

·         High growth rate over the years

·         Strong domestic market

·         Efficient sales and distribution networks

·         Cheap cost of labor

·         Increased profitability

Weaknesses

·         Small business units relative to the marketing needs

·         Low productivity with regard to the level of demand

·         High competitor from large companies such as ;Lexus

 

Opportunities

·         The level of income of the residents is increasing constantly and so is aggregate demand

·         New acquisitions

·         Growing demand for vehicles globally

·         New markets for the products

Threats

·         Poor technology that may affect the profitability of the company

·         Uncertainty of economic aspects such s inflation level

 

Company’s mission

The company’s mission is to enhance customer satisfaction through inspired performance.

Company’s objectives

The overall company objectives include enlarging its market share so as to increase its profitability in the next six months. The company aims at attaining market leadership in Dubai’s automobile industry within the next twelve months.  The company also aims at enhancing its productivity by promoting the quality of its employees through appropriate training.

Marketing objectives

The company aims at gaining a 40% market share in the automobile market in the next one year. It also aims at creating more brand awareness by carrying out more marketing campaigns in the country. The need to gain market presence globally is also a factor that has influenced the company’s marketing objective of expanding to new markets within the next one year.

Financial objectives

The company aims at increasing its value by enhancing the value of the shareholders. The return on investment is set to increase from the current 30% to 40% in the next one year.

Methodology

This section describes the data collection method that was used in analyzing the performance of Infiniti QX 80 car in Dubai market.

Primary data and secondary data

Secondary data was gathered from credible academic sources. Some of the data collected from these sources included the situation of the competitors and the status of automobile industry in Dubai. The methodology of the study was qualitative thus the data collection method used was survey. The participants were asked closed-ended questions so as to make data analysis easier and more accurate. Data collected was converted into percentages before presenting it into bar graphs. To enhance the understanding of the study results, the bar graphs used different colors for varying aspects of the study.

Analysis of the study

The sample of the study included individuals with distinguishable features such as gender, level of income and age. The highest number of respondents was aged between 30 and 40 years, accounting for 53% of the population. Those aged 50 years and above were the least, accounting for only 3% of the total sample population. The age group between 20 and 30 years was 28% while those within the range of 40 to 50 were 14%. About 74% of the respondents were male while the rest were female.  Forty percent of the respondents earned a monthly income of 10,000 to 20,000 dirham and only 7% of the respondents earn above 50,000 dirham.  When asked about the most important factor that influences their buying decision, 50% of the respondents cited safety.

The other important factor that was cited by 51% of the respondents is performance and quality of the car. The least influential factor was fuel consumption, cited by only 14% of the respondents. Among pick-up trucks, sportage, saloon and SUV (4×4), only 1% preferred pickup trucks while 56% reported to prefer SUV (4×4) over saloon and sportage that had 24 and 17b percent preference respectively.  Infiniti proved to be a more preferred manufacturer compared to Cadillac but was less popular than range rover and Lexus. About 322% of the respondents reported luxury as the main factor behind buying a new car while 26% cited family needs as the driving force. 26% reported value for money as the driving force while 13% reported to buy a new car based on the fact that they felt it was the best off road car.  Sixty five percent of the respondents reported the availability of warranty and other service offers as factors that influence their buying decisions.

Limitation of the study

Some of the respondents may not have provided true information especially related to the income level for fear that the information may not be confidential. This limits the reliability of the data. The other limitation is the sample size used is the study that is not representative of the population of people who own cars in Dubai.

Recommendation and conclusion of the study

In the modern competitive world, it is necessary for businesses to invest in market research so as to identify the most suitable tactics of survival in the market. To prepare an accurate market plan, one needs to evaluate the internal and external business environments that includes looking into aspects such as the level of competition, economic status of the country and opportunities of the organization. To succeed in its marketing plan, the Infiniti company needs t implement measures that increase brand awareness of the products to match the competitors’.

 

References

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Calkins, T. (2012). Defending your brand: how smart companies use defensive strategy to deal      with competitive attacks.

Dibb, S., & Simkin, L. (2005). The market segmentation workbook: target marketing for    marketing managers. London, Routledge.

Doole E, I., & Lowe, R. (2008). International marketing strategy: analysis, development and         implementation. London, Cengage Learning.

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: text and cases. Mason, OH, South-    Western/Cengage Learning.

McDonald, M. (2007). Marketing Plans How to Prepare Them, How to Use Them. Burlington,     Elsevier.

Mohr, J. J., Sengupta, S., & Slater, S. F. (2010). Marketing of high-technology products and          innovations. Upper Saddle River, NJ, Prentice Hall.

Powell, W. W., & Dimaggio, P. (2001). The new institutionalism in organizational analysis..

Stone, P. (2001). Make marketing work for you: boost your profits with proven marketing techniques. Oxford, How To Books.

Westwood, J. (2013). How to write a marketing plan. London, Kogan Page.