Devising A Marketing Plan For The FV-Frangivento Asfanè Luxury Car

Situation Analysis

Question:

Discuss about the Marketing Plan of Frangivento Asfane.

A marketing plan is devised after the business plan. Its focus is on attracting, winning and retaining customers. For this to happen, the marketing plan must have tactics on what is to be sold, how it will be sold, who will be the target market, and tactics to be used to persuade people to buy. A marketing plan typically begins with a situation analysis. This involves describing the product or products that a firm has in the market, as well as how they are different from others offered in the market (Stevens, Loudon & Wrenn, 2007). This means that the marketer has to understand the market intimately, to be able to point out the differences and needs that they can satisfy needs which are not being satisfied at present. FV-Frangivento Asfanè is a luxury car which is an upgrade of existing luxury cars in the market. Unlike other luxury cars however, this model combines a higher degree of digitalization in its design, as well as operation ((Jay & Sealey, 2012; Carscoops, 2017).

Existing competitors in the market include BMW M5, Ferrari Portofino, and Mercedes AMG. They have a high degree of sophistication in terms of the possible acceleration, speed, and other features, but arguably, none rivals the design of FV-Frangivento Asfanè. In a market that is not price-sensitive, the other brands cost comparably the same as the model under discussion, suggesting that it is likely to be a market leader if properly marketed (Lynn, 2011).

The second step is describing the prospective customers of the product. In the case of FV-Frangivento Asfanè, it is strictly a car for the affluent. It is a luxury car designed for the upper-class citizen, as well as luxury collectors. As mentioned below, the prospective customer will worry more about the design, which is great, as well as performance, rather than on the price. While this will play a role, it is not likely to be the defining factor in deciding whether or not to buy (Jay & Sealey, 2011). 

The third step will involve a description of the marketing goals. The marketing goals of the car should be penetration of the market, and brand awareness. For these goals to be measurable, the company can set a target of selling a particular number of cars within one year after launch, so as to gauge how well the market has responded, as well as talking to industry experts about it (Jay & Sealey, 2011).

Understanding Prospective Customers

The fourth step relates to the marketing tactics deployed to actually get the product to the market. For this to happen, FV-Frangivento Asfanè needs to be advertised aggressively. The advertisement will happen on review sites, YouTube, and other channels through which potential clients can be won. Auto magazines and car fairs are also channels to be aggressively pursued for the company to achieve the desired sales (McDonald, 2007).

The final step relates to setting a marketing budget for the product. The marketing plan is a quantification of the marketing tactics described above in monetary terms. For the nature of the product, and the marketing goals in question, the marketing budget will be higher than for existing brands, and also for competitors. At the same time, the target market will mean that the marketing costs will be higher than for utility cars, for instance (Jay & Sealey, 2011).

The car has a unique design which is likely to pique the interest of customers. It has been worked on by highly qualified designers and engineers, giving it a strong advantage over others due to the safety issues it incorporates into the model, as well as the speed capacity (Peng, 2011; Zhechev & Stanimirov, 2016).

It is not open to the mass market, potentially intensifying the competition it will face in a limited market for the high-end market. Its reach is not as extensive as that of other brands such as Ferrari or BMW, meaning that it might struggle to make its advertising more visible or consequential (Harrison & St. John, 2010; Carscoops, 2017).

There is a growing market for luxury cars, a factor which could be advantageous for Asfanè if properly exploited. The global economy is improving, meaning there will be a bigger market to sell the product to (Seo & Buchanan-Oliver, 2015). The company can capitalize on those markets that its competitors are not keen on establishing a market, and intensify marketing activities there. Additionally, the company should emphasize the unique qualities of the car which make it a better buy than other brands in the market (Butler & Martin, 2016).

Competitors are working tirelessly to outdo each other with new innovations. The car may therefore have only a limited time at the top of the rack, before newer models overtake it. It is therefore imperative that it also spend more resources in coming up with a better model (Butler & Martin, 2016). 

Setting Marketing Goals

FV-Frangivento Asfanè is made with the dedicated craftsmanship of the finest Italian designers and engineers, to produce a superior hand-made car capable of opening up a world of dreams for those who dare to dream. 

For the first six months, the company will aim to grow its market share, target new customers, and enter new markets. Increasing the market share will involve selling more cars that it currently does in its existing markets. This will require a higher level of advertising than its rivals. By a stroke of luck, its competitors do not have an aggressive marketing campaign, relying on their strong brand name. FV-Frangivento Asfanè should aim to capitalize on this. The market is not exploited to its top potential. In addition to targeting people who already use luxury cars, the company should try marketing to those who have the means, but do not use them. This should be done by targeting more conventional auto fairs and other meets, where the people are more interested in acquiring regular cars (Bhuiyan, 2011). To also achieve this he company should portray the ownership of a luxury car as not being practically impossible, but something normal people can aspire to. The company should additionally look at entering new markets that it does not currently operate in, and which, if possible are not served by competitors. This will further increase its sales, while easing off the competition experienced in existing markets (Ataman, Van Heerde & Mela, 2010).

The financial goals for the first six months should be enhancing profit margins, revenue growth and improving the return on investment. The company needs to improve its profit margins . This will involve improving efficiencies so as to reduce costs, and therefore garnering greater profits able to power future growth an increase of 10% on profit margins should be targeted. Revenue growth will come with more sales. The sales will come from the new markets, as well as new customers in existing markets a growth of 20% in revenue should be targeted. The product development no doubt spent a considerable amount of funds. The company should significantly cover the investment cost, ideally up to 50% to justify the initial cost (Walla, Brenner & Koller, 2011). 

The product being marketed by the company is a new model car, which is headlined by the unique design, as well as capabilities. The quality of the product is best described by its initial launch, where it was lowered from the sky to show its top-drawer level of quality when compared to other designs in the market (Ernst, Hoyer & Rubsaamen, 2010). The pricing of the product is such that it communicates the quality, while at the same time appealing to a wider section of the market than other brands in the market. What is included in the price, including delivery fee, discounts and taxes are also done to showcase the advantages of owning the car (Cuaresma et al, 2015).

Marketing Tactics

The product will be marketed in the original geographical areas that it was. However, there will be an entry into new markets to further the revenue base of the company. Additionally, the company will aim to use digital marketing tools to widen the reach of its marketing campaign. The product will be offered at more locations so as to generate the required new markets and attendant revenues needed by the company. Promotion will entail advertising, sales promotions and other means of reaching the target market (Mangram, 2012). The internet will be widely deployed in this. The company website will be adapted to ease navigation and reach –including authoring it in new languages to reach a wider market. Additionally, the company will aim to include a greater deal establish and grow a strong social media presence so as to reach ever more potential buyers. In order to build up on the website and social media campaigns, the company will communicate through popular online channels such as YouTube, and auto magazines that are widely read (Cuaresma et al, 2015).

To achieve the marketing objectives, the company will undertake a set of specific steps. It will increase its advertising activities, both through established channels and online. It will open new stores and enter partnerships with dealers in new markets so as to enter the new markets, while focusing its online campaign towards this. It will also engage more in other auto shows and fairs, apart from the ones it is currently engaged in, so as to better increase customers in existing markets (Truong, 2014).

To achieve the financial objectives, the company will have to carefully consider the marketing objectives. However, the action program will be different. To enhance profit margins, the company will look to increase production, so that unit costs can diminish. The prices of the goods will also be adjusted upwards to better capture the quality of the product. The company will aim to increase revenues by increasing unit sales. This will include opening up new markets in that were previously not served. These are for instance in several parts of Asia, Latin America, and Africa (Vigar-Ellis, Barrett & Chiweshe, 2009). To improve the return on investment, the company will basically be pursuing the first two goals simultaneously. However, there will be an increased level of correlation between the cost of development and financial performance, so that it is pegged on the return on investments, rather than on other profit expectations (Fletcher & Crawford, 2014; Truong, 2014).

Setting a Marketing Budget

The first phase of implementation of the plan will be communication with staff. As the most important players in the business, they will be fully briefed on the marketing plan. Those involved directly in implementing it will be required to make the necessary moves to set it up. This will include creating advertisements and other promotions, in addition to visiting the new markets to incorporate cultural issues into the marketing plan for better chances of success. The communication will then move on to the market. Communication will involve information on the new product, its selling features, and where it can be seen or bought. A creative communication strategy, including online will be adopted for this (Sashittal & Jassawalla, 2017).

Every week, month and quarter, progress reports will be issued to find out the market response, and if the marketing plan is moving according to plan. Any areas in need of adjustment will be reviewed and where possible, rectified (Jay & Sealey, 2011). 

Contingency plans will also be formulated to ensure that the company is better able to recover or adapt in case things do not go as planned. This will include alternative communication tools, advertisements, and finances. Contingency plans will be reviewed as time passes, so that their relevance in relation to the main plan’s implementation is reconciled (Lynn, 2011).

References

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Carscoops. (2017). FV-Frangivento Asfanè Hypercar Lands In Monaco From Space. Retrieved 10 05, 2017, from casrscoops.com: https://www.carscoops.com/2017/09/fv-frangivento-asfane-hypercar-lands-in.html.

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