Morgan Motor Company has resorted to the marketing strategy in order to learn about the needs and preferences of the masses in India, catering to a large section of middle-income people in the country, the plan has been developed to meet the requirements of the masses. There is a lot of opportunity in the Indian automobile market not just due to its rapid growth in the recent years but because the automobile sector contributes a major part to the GDP of the country as well.
It is a family-owned manufacturer building exemplary of British sports cars, famous for its unique mixture of craft, pure driving experience and heritage. Morgan Motor Company was started in 1909 when the founder H.F.S. Morgan came up with a design of what is now known as Morgan Three-Wheeler. In 1936, this was followed by Morgan4-4, which is produced even in the present times, making it the longest running car in production in the world. The designs of the cars are drawn using an extensive series of materials of luxury amalgamated with the recent high technology to develop undisturbed and smooth driving experience and pleasure for the customers.
Ash, leather, and aluminium are used to craft cars. Each model of the company is unique and offers a lifetime experience of heritage, creativity, and advanced technology. The car company currently delivers only 850 car units every year. However, there is supposedly a shift in the production capacity of the company and the production needs to be increased (Morgan Motor Company, 2018).
Our company has been successful in domestic operations, earning revenues and selling more cars each year. The home market conditions have to support the company in selling cars to the customers and the company has been able to achieve its yearly target and exceed the target as well. The image of the company in the UK is valued. The vision of the company is simple and realistic. Our company believes in diversity and it has been always been the motto of our company to cater to the global market. Along the way, we focus on the needs of customers. This concern on the needs of customers has propelled us to expand our vision in India, where the middle and higher income groups are growing and looking to choose from a variety of different emerging cars from around the world.
Our vision is a statement of our company's values and these values are distributed among the masses by serving them with the best of our potential. We believe in the concept of providing high-quality cars to the middle income and higher income groups within their spending capacities (UKEssays, 2016). Our company aims to launch a brand new product suited for the Indian passengers. The new car will be designed to provide ease and comfort to the Indian consumers and at the same time, it will be affordable for them. The overall vision of the company is based on specific and realistic agendas which are supported by our leadership and diversifying conduct.
In order to achieve the vision which the company believes in, the mission of our company is to work harder each day to reach our end goal that is to delight the customers with an affordable car with new features intertwined with old features. The company aims to be the best car manufacturing company for the middle and higher income group of people. The aim of the company is to reach Indian households and become their favourite car company. Our company is considered as one of the best affordable car manufacturers in the UK, and we strive to receive the same recognition in India as well (Berthon, Pitt, et al., 2012).
Values of a company define what the company believes in, what the company supports and stands for. Our company is mainly defined by the objectives we set for ourselves so that we can exceed them and make our customers not just satisfied with our cars, but our services as well. Our objectives are defined as follows.
· Stronger position in the Indian market by the end of 2020.
· To increase our sales and continue our expansion in Indian cities.
· Having a competitive edge in the Indian market.
· The timeframe to measure the progress of the company and our sales will be set and in every two months, the company shall analyse the sales as well as the inventory of the cars after every two months and not after every quarter. This objective shall be applied till 2020 so that the goals can be measured keeping in mind the time frame to gain market share has been kept in 2020.
· The company has begun to take action and work on the market research as well as on the tastes of the consumers for cars.
· Steps have been taken to build superior quality cars for the Indian market.
· Manufacturing cars that are environmentally friendly.
· Being accountable to people and society and working to make our society a better place to live.
· The cars will be installed with advanced technological instruments that will make the car stand out from the rest of the cars in the industry.
Our company aims to build up its position in the Indian Market by the end of 2025. Additionally, the company is focusing on developing new areas which will be profitable in the Indian Market. The company will invest in better technologies in the future, as well as develop and bring advanced car concepts and driving systems which are new and have higher technology installed within them. We shall make the best use of the given opportunity in the Indian market ensuring our competitive edge is maintained in the market, shaping the future of our company (Bhatia, 2013).
There has been an increasing growth in the car market in the Indian economy. Indian economy itself is growing at a fast pace and grew to about 8.2% in the first quarter of the financial year 2018-19, ending on 30th June 2018 (Economic Times, 2018). The market players are competing and trying to outperform each other when it comes to technology, style, pricing, and innovation so that their individual market share could be increased. There has been an increase in car purchases in recent times as compared to the past due to the increasing income levels of consumers, as well as the national economic growth. If the growth of the Indian Economy continues at the current pace, then it is expected that 291 million people would be shifted above the poverty line by the year 2025, making it the fifth largest market of consumers in the world. It is also forecasted that the rise in the middle-income population would be colossal and it would be around 583 million by 2025. Household disposable income on an average is expected a rise from $2499.87 to $7008.70 (McKinsey and Company, 2018).
As the income increases, the consumption level also increases and there will be an increase in the expenditure on transportation in the passenger car form. Apart from economic growth, there are other reasons as well for an increase in the expenditure on passenger cars like availability of financing, people's tendency to rely more on private vehicles, as well as a decrease in the price of passenger cars. The growing use of the Internet all over the world has led to creating a platform for online marketing or e-commerce marketing (Solomon, Michael, et al., 2014). Most of the people in India use the internet for searching important deals regarding products on the web. Indian consumers have become highly dependent on the internet to search for cars and their features. When it comes to researching cars, the role of the internet has gone up in recent years. Around 75 percent of car purchasers in India visit car showrooms only after going through the internet to inquire about the car(s) and 50 percent of them already make their minds up to purchase the car (Shyam, 2017). Also, the trend of nuclear families in India is rising, the patterns of consumption are changing, as well as people in India are getting financially independent at a young age. Tastes and preferences of Indian consumers have become dynamic. Unlike the earlier times, the current generation does not care about paying a bit more to enjoy better facilities and quality has become more important than the price of the commodity. The credit culture has also led to a rise in consumerism. The purchasing power of consumers in India is going up and it has resulted in increased demand for luxury goods including luxury cars. The middle-income group in India does not feel shy in purchasing cars and that is why there has been acceleration in the automobile purchases in recent times.
In order to achieve the set objectives, the company has analysed the market conditions and the buying patterns of Indian buyers and the engineers of the company have designed the cars in a manner that matches the patterns of the buyers. Furthermore, the company will be aiming to observe the buying patterns of real customers more closely once the interaction between the company and customers take place. The needs and wants, as well as the behaviour of every customer who purchases our cars, shall be scrutinized and feedback shall be taken so that the company can improve the technology installed in the cars and also address their problems and grievances if any.
Our company is also aiming to scrutinize the market prices of similar cars and their margins so that a proper understanding of the Indian market can be developed and steps can be taken accordingly. Another learning strategy of the company is to study how the competitors have grown in the Indian market over the years so that the objectives could be achieved using similar or opposite tools, depending upon the receptiveness of their study or averseness of the customers towards the other companies in the initial stage of operations in India. Indian car buyers nowadays rely on the internet and other social media platforms in order to check and analyse the type of car they are looking for in order to purchase and most of them decide after looking up and reading about the features of the car on the internet sites. The aim of our company is to target and build content regarding the company and our cars on the internet, and making it appealing so that more and more customers can be enticed to have a look at what the company is about and the type of cars the company manufactures. Once the target customers access the internet and go through our cars, he or she shall be able to differentiate between the cars in the existing industry and our cars. This will clear all the doubts related to the company being relatively new and would allow the customers to make a conscious choice. We shall be creating an Indian website as well as accounts on different social media platforms to connect with more and more customers every day (iResearch Services, 2018).
The company is focusing on becoming a strong leader in the market and within the next two years, we shall be focused on our customer base. The set standards of the company shall also include the satisfaction level of the customers from after-sales services so that the company can keep a record of how delighted the customers are and if the customers deviate from the company, then the reason that has made them deviate shall be asked using feedback and any detour from the company's objectives shall be taken care of, so that the conditions can be augmented and the focus of the company does not shift to trivial details.
Communication structure of the company is developed in a flexible way and not the traditional way so that if there are cases which need to directly be told to the head or the CEO of the company and issues which require urgent attention do not get delayed making the customers unhappy and angry. The employees will be able to contact or reach out to the country head of decisions or even the CEO so that the delay could be minimised and productivity does not lag behind. Doing this would not only result in the fast decision-making process and reaching the goals on time, but also lead to greater sense of engagement among the employees who will participate more in the operations of the company. By doing so, the company shall keep its customers as well as employees happy and content with its products and policies (Mars, 2013).
The Major competitors of Morgan Motor Company in the Indian Market are RUF Automobile, BMW, Audi, and Mercedes to name a few. The estimated annual revenue of the company is around $500 million whereas an additional $250 million is generated by RUF Automobile. The price of the competitors' cars starts from around ₹200000 and goes further (Owler, 2018).
· Founded in 1909, the company has a history of heritage and culture.
· Morgan Motor Company has been looking to explore new markets around the globe, including India.
· The company manufactures racing as well as other models which are convenient to produce for the company.
· The cars are hand assembled and ensure a higher level of quality among other cars to its customers.
· Morgan Motor Company has been able to combine the latest technology and classic design.
· The company is also present in the motorsport arena.
· Time and again, there have been problems introducing an alternative system of fuel which can be as similar to any other company.
· The appeal of the company is to a limited group of customers who are interested in automobiles.
· Another major weakness it that the company, although is running a business with a long history of manufacturing cars, the company does not operate on a large scale basis which might serve as a problem in the future (MBA Skool, 2018).
· Currently, the company has been investing in electric cars with the help of plug-in systems. The aim is to develop a new concept which saves energy and time that not only benefits the company but the industry as well.
· The concern of the company is to determine and achieve the numbers which are required to run its operations in the long run and delighting the customers.
· Opportunity for Morgan Motor Company in India is that India is an emerging market with the second highest population in the world. This is one of the best opportunities the company can take advantage of and cater to a large group of customers.
· One of the major threats that Morgan Motor Company faces is that it has a risk of being taken over by other bigger company. Although it might help the company, the company will lose its motive to work and its clear vision.
· Rivals in the industry might get aggressive such as Lamborghini, even in the Indian market. Due to this, a lesser amount of people will purchase the cars of the company (Scribd, 2018).
The following decisions are included in the marketing mix of Morgan Motor Company.
Product- The car being launched should be promoted as it is the product of the company. The product (car) must adhere to quality which the company promises to provide its customers with. The quality which the company sticks to is premium and advanced in the market. The strategy related to the product shall include assortment as well as branding (Liu, et. al., 2017).
Place- Morgan Motor Company must decide the place or the location where it wants to create demand for its car. The place shall be appropriate so that the company is also able to acquire resources easily without any hassle. As the company aims to target the upper middle income and higher income segments of a growing economy, India will be an appropriate location to run the operations and cater to the upper middle as well as higher income groups of people. Also, in order to reach out to the potential customers of the company, the distribution process must be done properly. Reaching to the potential customers can be made possible by contacting distributors, sales agents, dealers, and/or sub-dealers who already interact with the existing customers and know about their spending behaviour. This could be of tremendous help to the company as these agents and distributors can sell the product of the company in an easier way than the company can sell.
Price- As the target customers of the company are the upper middle and high-income groups of customers, the car shall be expensive but affordable for the target customers. Also, the price although high enough will not exceed the value of the car which the company shall launch in the Indian Market.
Promotion- The Company follows consistent advertising and promotion policies to showcase its cars. Expenditure on advertisements and promotion will be sufficient. The promotion strategy will include online advertisements as well as offline or traditional promotional strategies so that all the consumers in the target market can experience and get to know about the company and car (Assignment Desk, 2018).
The marketing strategy of Morgan Motor Company as discussed above contains all the necessary details as to why the company has taken this decision to expand its operations in the Indian market. The company believes that India is going to be the largest market in the world, due to its growing population, and due to this fact, and the fact that the income of the consumers is rising; investing in India is an apt decision.
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