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ELECTRIC CAR POSITIONING IN THE MARKET AND COMPETITION

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ELECTRIC CAR POSITIONING IN THE MARKET AND COMPETITION. Electric Cars in Oman and the Middle East in general. Oman and the Middle East have a vision to make use of renewable and cleaner energy in the coming future so as to reduce environmental pollution and utilize new technology advancements when it comes to transportation with introduction of electric cars. The authority for electricity regulation in Oman is coming up with a clear frame-work for electric cars which will allow petrol stations to have charging stations. This is a fundamental step in promoting introduction of electric cars in Oman, Qatar, Saudi Arabia, Syria, Tunisia, Turkey and United Arab Emirates. Introduction of charging stations in Oman is key player in electric cars market positioning. Market position will establish the identity of electric cars within the consumers´ mind by showing how different the cars are and then determining which market gap to fill. Market position as an element of marketing strategy which brings up the questions: where are you on the market? Who is your competitor? What are their strengths and weaknesses? All these questions have to be answered for the electric cars to beat the competition and increase on sales. Since the very purpose of marketing is to make your loyal customers aware of your products, a marketing mix provide the basis for consumers to purchase the product in Oman. Marketing mix is determined by internal factors such as nature of the electric cars and external factors such as degree of competition from other manufacturers. Tesla is fighting off competition from legacy manufacturers such as Hyundai, Fisker Karma, Ford, Audi, Mercedes Benz, Toyota and Volkswagen. The 4ps enhance the success of electric cars by creating a synergy, brand loyalty, value and serving as a link by factoring in the expectation of customers towards production of higher quality cars and thus position the product better. Thus, a link is forged between the Tesla company and the consumers. Higher sales volume results from higher customer satisfaction and greater market share by manufacturing electric cars which conforms to the consumer standards. product The product being the heart of the marketing mix, Tesla will be accelerating the Middle East transition to sustainable energy with electric cars which reduce fuel dependency and environmental pollution. The decisions regarding product mix will depend on factors like: Design- The design of the car must be classy to meet consumers requirement and maximum satisfaction Features- Electric cars produced by tesla have coolest features such as, autopiloting, ludicrous plus mode, superchargers, over-the-air updates, streaming services and auto raised suspensions. Brand name- should be memorable, authentic, distinctive and defensible. Product variety- electric cars from tesla have different models each having a distinctive feature hence customers have a variety of models to choose what they like and prefer. Quality- Tesla offers reliable, efficient and luxury electric cars which meet consumer’s needs. Price Tesla focuses on the quality of their vehicles leaving price out of its branding. Tesla is a luxury brand that is more expensive than its competitors, since Tesla automobiles are long-range and ecofriendly. Tesla differentiate itself from other competitors because of its high quality. By establishing a gap in the market and a fun brand to match it. The company promotes its uniqueness through quirky features and ads. With the growing economy in Oman and parts of the middle east, many people will prefer better quality and luxurious electric cars at an extra cost. Promotions This aims to inform the potential customers about the electric cars and persuades them to buy the cars in Oman. The promotion mix include the various means that you can use to communicate with the target audience. Advertising, personal selling, public relations, direct marketing, publicity and sales promotion will promote sales volume. The event organized by Global EVRT in Oman, showcased a number of electric cars travelling from Abu Dhabi to Muscat as a way of promoting the introduction of electric cars in the Oman market. Place Physical distribution deals with the transfer of ownership of the product from the manufacturer to the customer. The margin of profits from selling cars depends on how quickly the products reaches the consumer. The more easily and swiftly the cars reach the market, the more the chances of increasing brand loyalty and satisfying the customer. Therefore, the distribution is crucial in ensuring the electric cars´ competitiveness in the market. Introduction of Tesla showrooms in Oman will enhance availability of the cars in the region. The 7Ps marketing mix The additional Ps are able to fine-tune the market with the tide of time through the use of advanced technology People These includes the employees working in their full potential. The engineers coming up with better designs that conforms to the Oman’s way of life. They are the company´s support system. The customers being the very purpose of the company, there need and satisfaction becomes the company´s work and ultimate reward, hence Tesla is able to capture the Oman market easily. Process Production of electric cars to replace the fuel and gas consumption cars involves a range of activities in the creation and delivery of better electric cars in the market. The competence of the cars depends on the efficiency of the manufacturing process and the technology used. Quality and speed of production depend on the manufacturing process. Programs Improvements and production of electric cars makes it easy to keep up with the latest developments and technology. The new range of marketing activities should consider the nature of the electric car and target market. The new framework on regulation of electric cars in the Sultanate of Oman has promoted introduction of electric cars. Performance The performance of the company in relation to attributes like goodwill, market share, loyalty and customer satisfaction have both financial and other implications. This helps in guiding the organization´ decisions for future expansion and abiding by the legislative regulations in Oman. Electric cars marketing positioning strategy is affected by many variables related to customers´ requirements, motivations and by competitors’ action. Therefore, with this kind of positioning comes a need to abide by that expertise from content generation to research and company branding to satisfy the target market. Based on the quality, Tesla positions itself as a luxury status symbol. Quality as a positioning criterion in the market helps rebuff most pricing wars and define who the competitors are. The electrification of the transport sector though electric cars is the most efficient, effective and sustainable approach to decarbonize this sector by reducing both CO2 emissions and environmental pollution in Oman and the Middle east in general. High price . Tesla . Fisker karma . Audi . Mercedes Benz .Ford . Toyota High Quality . Volkswagen Perceptual and Positioning maps. This shows how the business compares to others in consumers´ perception. The brand positioning map consists of different attributes that are essential to the target market. This shows how competitors are competitive in a particular area over the rest. The attributes used come directly from the values your customers are interested in. the perception of the electric car is directly linked to high quality and high price. Tesla focuses on the quality of their electric cars leaving price out of their branding as compared to its active competitors in Oman. Therefore, Tesla is a luxury brand and is more expensive than its competitors. Tesla automobiles are long-range, eco-friendly and electric. Therefore, positioning in the market requires time, dedication, and the courage to decline some decision and choices offered in the market. It is easy to see that tesla is the dominant player with higher quality at higher prices among its competitors. By taking both analytical and creative focus in market positioning, its best to set higher prices with an advantage of providing better- and high-quality electric cars as compared to other companies. Tesla is strategically positioned in the electric vehicle market in the Middle east as a high-end manufacturer and dealer. Therefore, Tesla gains competitive advantage over other manufacturers due to their direct-to-consumer sales, warehouses, innovative consumer financing option and technological innovations. The competition The competition comes from fully electric cars and hybrid cars. The main competitor of Tesla in Oman are Hyundai, Kia and Volkswagen, which is a luxurious brand, arguably and large. Tesla is reported to make more sells as compared to Hyundai automotive. Tesla employs competitive advantage in the Middle east and uses this product to show their ability in producing great electric cars. The tesla Avant-grade design gives customers a deep impression of greatness and style. Tesla combines the electric vehicle environmental protection capabilities, super and luxurious sports car appearance with energy saving properties. Another powerful tool is the strong brand equity and loyal customers who have for a long time been satisfied by the cars delivered from Tesla. Being the first company to offer fully automated electric sports car in Oman, Tesla has the first mover advantage over other competitors. Therefore, a lot of people should know about a brand and the quality of products delivered. A good rating on the products increases consumer trust and loyalty. The Ministry of Environment and climate affairs in conjunction to the Public Authority for water and Electricity and NAMA Group SAOC are heavily involved in the formulation of Electric cars legislative framework in the Sultanate. REFERENCES. Chesbrough, H. (2007). Business model innovation: it’s not just about technology anymore. Strategy & leadership, 35(6), 12-17. DOI: http://dx.doi. org/10.1108/1087857071083371 Kachani, S., & Shmatov, K. (2011). Competitive Pricing in a Multi-Product Multi-Attribute Environment. Production and Operations Management, 20(5), 668-680. DOI: 10.1111/j.19375956.2010.01195. x. Darling, J. R. (2001). Successful competitive positioning: the key for entry into the European consumer market. European Business Review, 13(4), 209-221. DOI: http://dx.doi.org/10.1108/EUM0000000005535 https://www.learnmarketing.net/perceptualmaps.htm Foundations of Marketing MAR4002 Group Project Briefing Practicalities • Groups of 4-6 within same tutorial group • Upto 4,000-word report due Monday Group presentations will take place within tutorial sessions in either week 11 and 12 - max 10 minutes/group • Use feedback from presentation to inform group report • Complete group confirmation by 2nd February at the latest • You will present your project ideas within the tutorial on 9th February Working in a Group Is an important life skill Play to each group member’s strengths Notify any group problems to tutor ASAP Last date to notify tutor of any group work problems is 9th March 2021 • Use the work plan sheets posted on Canvas to document tasks/allocated duties (this will help if there are any group disputes) • Nominate a group leader to co-ordinate ( but their role is co-ordination not to do it all!!!) • • • • You have been given the brief of launching a new product/service. Working in groups you are asked to apply your marketing knowledge and develop a new product/service within a chosen market (e.g. the car market; the shampoo market; the study aid market). You are required to provide answers, in report format and also presenting your work in oral form during one of your last tutorial sessions, to the following questions: • Provide a brief analysis of your chosen market. This should include an overview of how it has performed over recent years and the key competitors within it (10 marks) • Identify and describe the different ways that the market is/can be segmented. (20 marks) • Choose which segment you plan to target, justifying your choice. (10marks) • Decide on and describe how you will position your product versus the competition within your chosen segment. 10 marks will be allocated for relevant application of semester 2 academic content (40 marks) Marks will also be awarded for presenting your work: Present your findings in an oral presentation (10 marks) Present your findings in a written report (10 marks) • • • Guidance CHOOSING A MARKET • You are required to pick a single market. • You are advised to choose a market that interests you. • It is also important that the market you choose is going to allow you to answer the set question. • It is recommended that within your groups you pool your ideas about your potential market choice. • Make sure that there is adequate information available upon which to base your discussion. ANALYSING THE MARKET AND BACKGROUND INFORMATION (10 MARKS) • Comment on how sizeable the market is/the characteristics of the market (e.g. Is this a growing market?); how lucrative this market is; who the key players are within this market? • You are encouraged to email your subject librarian and find market intelligence reports as sources of secondary data. The lecture session in week 2 of semester 2 is designed to help you with this) • It may help by doing some field work (i.e. looking at the products in situ), and by looking at advertising and other communication. • NB. Only use concepts/frameworks covered in lectures (e.g. Porter’s 5 forces/SWOT analysis is not expected) IDENTIFY AND DESCRIBE THE WAYS THE MARKET IS/CAN BE SEGMENTED (20 MARKS) • You will be expected to identify and describe the key segments in your chosen market. • To do this you may start by identifying the key brands within your market and consider who they are targeted at (e.g. Head and Shoulders in the shampoo market, targeted at people with dandruff). • Segmentation is defined by the core text book as the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy. • You will also need to make reference to the segmentation bases discussed in lectures/tutorials/texts. • Consumer markets, for example, are segmented in three main ways (behavioural, psychographic, and profile) and you will be expected to identify the way(s) in which your chosen market is/can be segmented. CHOOSE WHICH SEGMENT YOU PLAN TO TARGET, JUSTIFYING YOUR CHOICE (10 MARKS) • Targeting refers to the choice of which market segment(s) you choose to serve with a tailored marketing mix. • Choose one segment to target, and describe it fully – you may choose to draw a pen portrait of the typical target consumer • Justify your choice of segment making reference to classical segmentation characteristics • For instance, comment on market factors, competitive factors and the political, social and environmental factors which make your chosen segment so attractive to target through your marketing efforts • DECIDE AND DESCRIBE HOW YOU WILL POSITION YOUR PRODUCT VERSUS THE COMPETITION WITHIN YOUR CHOSEN SEGMENT (40 MARKS) In order to do this, you should develop your discussion around marketing mix decisions (4Ps or 7Ps) • You need to use the relevant theory from lectures to support your decisions • You should produce perceptual and positioning maps, and consider potential sources of differential advantage • You should decide whether you will take a very analytical or creative focus (or both!) • Within this stage of your group project you are encouraged to consider the specialist areas of marketing (covered in semester two) in detail – upto10 marks will be awarded for relevant semester 2 content being applied • Use as many topics from semester 2 (e.g. Branding, creativity, digital marketing, ethics) that fit your project (along with the principles from semester 1 content) PRESENT YOUR FINDINGS IN AN ORAL PRESENTATION (10 MARKS) • During tutorial time in the last 2 weeks of the semester • Maximum 10-minute presentation per group • Use appropriate media that suits your device (check connectivity before you are due to present) • The exact content of this presentation will be briefed to you later in the semester • After the presentation you will receive some oral formative feedback from your tutor • Use this feedback to improve your written project • PRESENT YOUR FINDINGS IN A WRITTEN REPORT (10 MARKS) • Use headings and sub-sections as necessary • Use appendices to support your work (but don’t go over the top!) • This is an applied piece of work and you are expected to reference market intelligence reports etc. which will need sourcing/citing.