VOLVO GROUP
MARKETING STRATEGY
REPORT 2013

Tabatha Schmidhauser

1
TABLE OF CONTENTS
VOLVO GROUP: PRESENTATION
Volvo’s Background

4

Mission

4

Vision

4

Wanted position 2020

5

Volvo’s...
Marketing Strategy

16

MASH Analysis
Segmentation
Targeting
Positioning

16
16
17
19

PROMOTIONAL MIX
Advertising
Public ...
VOLVO GROUP PRESENTATION
VOLVO’S BACKGROUND
Parent Company: Geely
Type: Publicly traded
Industry: Automobile
Founded in 19...
• pioneering products and services for the transport and infrastructure
industries
• driving quality, safety and environme...
with users, authorities, scientists and other actors in society who want to create
a safer world.
Safety innovations: A se...
A VIEW ON VOLVO CARS SALES
Country

By Market 2009
Sales 2010 (2009)

United States
Sweden
United Kingdom
China
Germany
Be...
ENVIRONMENTAL ANALYSIS
INTERNAL MICRO ANALYSIS
SWOT ANALYSIS:
Strengths
Good heritage
Established brand Trust
Environmenta...
Industry Challenges: Adaptation Strategy
In today’s economy, the car industry faces some challenges and difficulties that
...
maintain a leading position in these areas. The Volvo Group views its corporate
culture as a unique asset, since it is dif...
INTERNAL MACRO ANALYSIS
PORTER’S 5 FORCES

Supplier Power – The power of suppliers is low, especially after the company
ha...
EXTERNAL ANALYSIS
PESTLE ANALYSIS
Political
Growing environmental concerns are forcing governments around the
world to int...
Self- driving vehicles are on the way as such technologies are being
developed by major corporations.

CONSUMER ANALYSIS
V...
STRATEGIES
CORPORATE
CORPORATE OBJECTIVES
The Volvo Car Corporation is one of the car industry’s strong brands. The
compan...
BUSINESS
BUSINESS OBJECTIVES
Objectives for the Differentiation strategy
Introduce new products: Due to the changes in the...
Safety as well as ecology is a universal concern and should be available for a
wide consumer group.
In order to pull off t...
SEGMENTATION
Better understand and identify our consumer’s need
In order to create:
Strong brand name
Greater market share...
Green political parties /socialism
Risk yes, but with safety
Interest
Club and social community
Like to participate
Team s...
Volvo has an effective and high skilled team, therefore they have the potential to
do it for the European Market, however ...
PROMOTIONAL MIX
Advertising
Because every company in any industry uses advertising to promote their
product we decided to ...
answers in real time. This service will help the customers to create a better idea
about the products that VOLVO supplies....
SOURCES
EMEA Marketing Blog URL: http://emeamarketing.co.uk/wordpress/what-isemea-marketing
Gray, J. Hayes, K. (n.d) “Appl...
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Report on Volvo, Marketing Strategy

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Report on Volvo, Marketing Strategy

  1. 1. VOLVO GROUP MARKETING STRATEGY REPORT 2013 Tabatha Schmidhauser 1
  2. 2. TABLE OF CONTENTS VOLVO GROUP: PRESENTATION Volvo’s Background 4 Mission 4 Vision 4 Wanted position 2020 5 Volvo’s corporate values 5 Quality as a core value Safety as a core value Environmental care as a core value 5 5 6 A view on Volvo cars sales 7 Observations 7 ENVIRONMENTAL ANALYSIS Internal Micro Analysis SWOT 8 8 Industry Challenges: Adaptation Strategy 9 McKinsey 7S Model 9 Internal Macro Analysis 11 Porter’s Five Forces 11 External Analysis 12 PESTLE Analysis 12 Consumer Analysis 13 STRATEGIES & OBJECTIVES Corporate 14 Corporate Objectives Corporate Strategies 14 14 Ansoff Matrix 14 Business 15 Business Objectives Business Strategies 15 15 Porter’s Generic Strategies 15 2
  3. 3. Marketing Strategy 16 MASH Analysis Segmentation Targeting Positioning 16 16 17 19 PROMOTIONAL MIX Advertising Public Relation Direct Marketing Personal Selling Sales promotion 20 20 20 21 21 SOURCES 22 3
  4. 4. VOLVO GROUP PRESENTATION VOLVO’S BACKGROUND Parent Company: Geely Type: Publicly traded Industry: Automobile Founded in 1927 Headquarters: Gothenburg, Sweden Area served: Worldwide, 120 countries Network: 2400 dealers: 1500 in Europe and 400 in the USA Manufacturing Plant: Goteborg (Sweden) & Ghent (Belgium) Chairman: Carl-Henric Svanberg CEO: Olof Persson Number of employees (2011): 98, 162 / 20,000 (2008) Many based in Sweden Competitors: Volkswagen’s Audi, General Motor’s Saab, Toyota’s Lexus, Mercedes-benz, BMW Target Group: Young business executive with a comfortable income and a taste for safety. Safety Modern Scandinavian design Environmental Care = Leaders = Where they differentiate Premium quality Customer experience Driving dynamics = Qualifiers (Essential for any competitors in the premium market segment MISSION “Create the safest, most exciting car experience for modern families”. • Create shareholder value by optimizing the cost of capital in the Volvo Group. • Limit the impact, but also take advantage, of macroeconomic developments under stipulated risk mandates. • Provide the Volvo Group companies with treasury and cash management related services. VISION
 “To be the world’s most desired and successful premium car brand” To be a world-class provider of treasury services, valued as the natural and integrated business partner to the Volvo Group companies.Volvo also aims at being the World Leader in sustainable transports solutions. • creating value for customers in selected segments 4
  5. 5. • pioneering products and services for the transport and infrastructure industries • driving quality, safety and environmental care (Values) • working with energy, passion and respect for the individual. WANTED POSITION 2020 • The most profitable in our industry • Customers’ closest business partners • Captured profitable growth opportunities • Proven innovators of energy-efficient transport solutions = Global team of high performing people VOLVO’S CORPORATEVALUES Quality as a core value “Focus on the customers' needs” Quality is an expression of our goal to offer reliable products and services. In all aspects of our operations, from product development and production, to delivery and customer support, the focus shall be on customers' needs and expectations. “Our goal is to exceed their expectations” With a customer focus based on everyone's commitment and participation, combined with a process culture, our aim is to be number one in customer satisfaction. This is based on a culture in which all employees are responsive and aware of what must be accomplished to be the best business partner. Safety as a core value “Safety is part of our soul”
 Safety has been our guiding star since 1927. The Volvo founders stated that “Safety is and must be the basic principle in all design work”.
 
 ”Our vision: Zero accidents”
 We have worked diligently for more than 80 years to develop increasingly better protection for people in the case of an accident. Our Accident Research Teams have given us good insight into the causes of accidents and injuries — and what can be done to prevent them. Our products are built to minimize the consequences of accidents.
 
 In recent years we have also launched intelligent safety systems with the potential to prevent accidents from happening in the first place. Our ultimate goal is zero accidents with Volvo Group products. This vision of zero accidents guides our product development. We are committed to work hard to prevent accidents, but we are also aware of the fact that most accidents involve factors that are out of our control. Therefore, the Volvo Group cooperates 5
  6. 6. with users, authorities, scientists and other actors in society who want to create a safer world. Safety innovations: A series of pioneering safety innovations has made Volvo a world leader in automotive safety over the years. It is our firm ambition to maintain this position. The new Volvo FH series: “The world’s safest Volvo.” The new cab is Volvo’s strongest so far. And the world’s toughest crash tests show that drivers have a good chance of survival in an 50 mph crash with a stationary object Environmental care as a core value We all depend on transports 
 Smoothly functioning transportation is one of the cornerstones of modern society. The distribution of daily supplies to people in cities, the trade between companies and the personal mobility are all examples of how dependent we are on transports. Core value
 Environmental care is a Volvo Group core value. Already in the mission statement, we state: " we use our expertise to create transport-related hard and soft products of superior quality, safety and environmental care". Volvo has a responsibility 
 As one of the world's biggest manufacturers of heavy commercial vehicles, Volvo bears a clear responsibility for reducing the environmental impact of its products. However, a long history of proactive environmental programs has also provided us with an opportunity of strengthening both our own and our customers' competitiveness, while contributing to positive societal development. Taking the lead to reduce climate impact
 The Volvo Group is the first heavy duty vehicle manufacturer to develop seven different demonstration trucks that can all be driven without any emissions of climate-impacting carbon dioxide. 6
  7. 7. A VIEW ON VOLVO CARS SALES Country By Market 2009 Sales 2010 (2009) United States Sweden United Kingdom China Germany Belgium Italy Netherlands France Russia Others: 53,952 (61,426)
 52,894 (41,826)
 37,940 (34,371)
 30,522 (22,405)
 25,207 (25,221)
 17,969 (13,223)
 17,509 (15,896)
 14,308 (14,035)
 12,211 (11,596)
 10,650 (6,894)
 100,363 (87,915) Model By Model 2010 Prices from Sales XC60 V50 V70 XC90 C30 S40 XC70 S80 S60 S80L V40 £30,280 £15,000 £24,995 £33,000 £17,545 £15,700 £32,390 £29,270 £19,995 £29,270 £19,995 80,723
 56,098
 48,877
 37,597
 35,981
 31,688
 22,068
 19,162
 14,786
 11,778 Unknown Observations: Most interesting Market: China: 36% sales increase Belgium: 35% sales increase Russia: 54% Sales Increase Others: 14% Sales increase Models: XC60: Price is not a factor of choice Sophistication for the discerning driver Enhance your XC60 with Inscription, Volvo's collection of exclusive interior and exterior details offering the best in Scandinavian design and craftsmanship. Designed to thrill The XC60 R-Design sport chassis is made to get your pulse racing. But before you even turn the ignition the sporty seats, pedals and steering wheel will put a smile on your face. This is a car for the love of the road. Crossing the line The XC60 takes a new approach to design – combining the high waistline of the XC range and the sporty contour of the coupes. It’s the physical manifestation of an idea that encompasses active life and a love of style. Watching out for you In slow moving traffic City Safety pays attention – even when you don’t. By constantly monitoring the traffic ahead for slowed or stopped vehicles it applies the brakes to help avoid a collision. Innovations for the love of driving Sporty driving or cruising? With three settings for different driving styles and surfaces you get the most out of both curvy mountain roads and long motorways. It’s technology for the pure love of driving. 7
  8. 8. ENVIRONMENTAL ANALYSIS INTERNAL MICRO ANALYSIS SWOT ANALYSIS: Strengths Good heritage Established brand Trust Environmentally friendly Product under different brand High safety standards Highly involved in Research Offer high quality Customization Interactive brand (with customers) Excellent service (SAV) Weaknesses Identity crisis/ confusion High Price /economy state Small share Strict and definite position Opportunities Market expansion BRIC Countries Long term impact environment (awareness) Threats Competition big international Price of oil, fluctuation Interest rate (separate payment no Loans from banks) New technologies available Demographic changes Accident Rate Fuel concern (decrease consumer cost) Weaknesses to strengths&Threat to Opportunities Urbanization/ demographic changes Climate change / environmentally friendly, recyclable Strategic use of resources (Potential shortage) Increase cars numbers and accident rate = Security and safety, technology systems Government tax initiative (eco-friendly prices reduction) 8
  9. 9. Industry Challenges: Adaptation Strategy In today’s economy, the car industry faces some challenges and difficulties that will need to be overcome by Volvo if the company wants to survive in the long run. Use the impact of Globalization at our advantage (negative and positive) Increasing regulation on (environmental taxes and government initiative) Growing environmental issue (Offering alternative to limit negative impact on the environment) Rising fuel prices (Offering other energy alternatives. Ex: electricity) Rising commodity prices (Offering and using cheaper alternatives) Increasing accident rate (Marketing strength to “shock” people and use it as a tool of persuasion) MCKINSEY 7S MODEL 1) Strategy- In order to maintain and build competitive advantage over the competition Volvo plans to once again become the industry leader in safety, the brand that gives the company first car with a safety cage, the first car with front and rear crumple zones, the first to offer safety-door-locks, and the first to offer SIPS-Side impact protection System. At the same time company focuses on maintaining energy efficiency and healthrelated technology through alternative fuel types and reduced emissions, so that Volvo will keep placing its emphasis on creating a safer world in relation to environment and driving. The company lays the foundation for developing Volvo group into the world’s leading provider of sustainable transport solutions. 2)Structure- The Volvo Group’s business activities are organized into six business areas: Group Trucks, Construction Equipment, Buses, Volvo Penta, Governmental Sales and Volvo Financial Services. Concentrating only on the car sector we see that the company has it headquarters in Sweden but branches in several countries. The main office manage the global strategy of the group but the day to day decisions are made locally by directors and managers. 3)Systems- On the daily basis staff members involve in activities such as creating business plans, following up on the businesses, setting targets etc. Daily activities vary according to the departments, for example financial department works on finding the ways to fund business in the markets. This includes working with external banks and export trading agencies. Much of the time is spent on decision making for financing Volvo Group customers in company’s markets. 4) Shared Values- Quality, safety and environmental care are the values that form the Volvo Group’s common base and are important components of the company’s corporate culture. The values have a long tradition and permeate in the organization, its products and the way of working. The company goal is to 9
  10. 10. maintain a leading position in these areas. The Volvo Group views its corporate culture as a unique asset, since it is difficult for competitors to copy. Quality is an expression of the company’s goal to offer reliable products and services. In all aspects of the operations, from product development and production, to delivery and customer support, the focus shall be on customers' needs and expectations. With a customer focus based on everyone's commitment and participation, combined with a process culture, Volvo’s aim is to be number one in customer satisfaction. This is based on a culture in which all employees are responsive and aware of what must be accomplished to be the best business partner. 5) Style- "We are empowered. Every colleague participates in setting goals and in meeting commitments. Every individual contributes by working together with others towards common business goals." (www.volvogroup.com) the style of leadership adopted within the Volvo Company is- participative leadership. Every employee is free and encouraged to bring his/her ideas, innovation, and creativity to the work in order to reach certain goals; since all the members are empowered to participate in decision-making and bring profit to the organization. Empowerment enables all employees to contribute to their fullest potential irrespective of gender, nationality, ethnic origin, sexual orientation or age. Human Resources Manager Maxine Knowles commented “This year we scored highest in terms of how people felt about the company and its’ leadership with extremely positive responses. This is testimony to the values and ethics of the Volvo Group, which filter down within the organisation and the work we do to make our employees feel valued and engaged.” 6)Staff- Every employee at Volvo organization is part of a team. As a team member, work is more and more characterized by actively taking part in the company's development, change and future. In order to create a working environment that supports this, company is manly working with employees of energy, passion, and respect for the individual. 7)Skills – the employees of the Volvo Company are the people educated in the spheres like mathematics, science and technology. They build competitive organization by having the employees of creative, leadership, multicultural skills who have an experience and different perspectives. 10
  11. 11. INTERNAL MACRO ANALYSIS PORTER’S 5 FORCES Supplier Power – The power of suppliers is low, especially after the company has been acquired by the Chinese firm Geely. Thus, by entering the Chinese market, Volvo will have the opportunity for collaborating with Chinese suppliers that will most probably offer lower prices than the European ones. Therefore, it is Volvo that dictates terms rather than their suppliers. Buyer power – Considering the fact that Volvo is operating in over 120 countries and dealing with a huge number of buyers, we can conclude that the buyer power is pretty high. Even though Volvo is offering innovative, safety enhancements and more environmental friendly products, the substitutes offered by competitors are large. As a result, the buyers have a lot of options to choose from and definitely have a power over Volvo. Competitive Rivalry – The rivalry in the automobile industry is very high. Volvo has various strong rivals, such as Audi, Saab, Lexus, Mercedes-Benz, and BMW (mostly cars offering similar features and quality for more or less the same price.) Volvo’s positioning statement that they are offering the safest cars in the market is threatened because there are other companies offering high safety standards as well, such as Renault. Therefore, Volvo is not immune on rivalry pressure anymore, in fact it is more influenced than ever. Threat of Substitution – The threat of substitution is always present in this industry. Especially in big cities people tend to switch to other transportation options and avoid using cars. However, this is not a serious threat for Volvo because their target market are rather family people whose need of having a car is higher. Furthermore, if referring to the US, it is notable that mainly country people are keen on buying Volvo, which means their options of substitutes are less. Therefore, the threat of substitution (such as public transport) is certainly not excluded, but yet we can say that it is not very high for Volvo because their target market are mainly people with a higher need for a big, safe car. Threat of New Entries – Entering the automobile market is certainly very complicated with extremely high costs. It requires expertise, it is time consuming and it is expensive. Furthermore, it is very risky because it was proven over the years that consumers tend to trust more to the companies with more tradition and experience in the car manufacturing (Mercedes-Benz for instance.) In this sense, the threat of new entries is not a serious problem for Volvo. They are affected by the already existent competitors rather than from the upcoming. Their long presence in the marker gives them a certain advantage over the newcomers (when having such) so this is not a big threat for them. 11
  12. 12. EXTERNAL ANALYSIS PESTLE ANALYSIS Political Growing environmental concerns are forcing governments around the world to introduce harsher regulations for the automotive industry. These include strict regulations on carbon emissions, increased taxes for cars with higher carbon dioxide emissions, rise in insurance prices and new safety regulations. Volvo's main markets (US and Europe) are affected by the above the strongest. Government foreign policies are important to the industry. There are extreme tax policies adopted by developing countries for local automotive industry protection. Low - emission cars benefit from tax incentives, such as free road tax, lower insurance prices, free parking and so on. BRIC economies are gaining substantial power against of those of the Western World. Economic 2008 economic recession has hit the automotive industry immensely. Many companies field bankruptcy and many auto brands have disappeared. Fuel prices are on the rise. Commodity prices are on the rise. China is on the rise to become world's largest economy. Other BRIC economies are also experiencing high growth rates. As the recession is over, we can expect world-wide economic recovery. However the uncertainty remains high. Flat growth rates in developed markets, but good prospects in emerging markets such as Asia. Socio - cultural Declining birth rates are seen within Europe and USA. Smaller families and childless couples are becoming more and more common. "Many cars on the road today are used by singe occupants, commuting to work" ('Volvo Case Study, n.d.) People are becoming more conscious of their environmental impact and they are becoming more eco- friendly. Technological More eco friendly technologies are introduced at an increasing rate. Shared technologies can provide substantial benefits. Focus is placed on improving energy efficiency and health- related technologies. Availability of new materials and recycled materials for production can provide many possibilities. 12
  13. 13. Self- driving vehicles are on the way as such technologies are being developed by major corporations. CONSUMER ANALYSIS Volvo is connected with the idea of big boxes on wheels. According to the data the average Volvo owner is middle aged with 2 and a half kids and a dog. In order for Volvo to increase its market share, they should be aware of the changes in customer desires. Volvo has produced through the years big estate cars with big engines and safe cars. They tend to go more for the functionality rather than the style. The customer's needs have changed, and Volvo has to adopt if they want to be successful. Volvo has been successful in US, because the customers like big cars, which they relate with success. “Big car, big success”. In the last decade customers have started to use smaller cars due to different factors: Fuel costs: With the increase in fuel cost, it has become more expensive to drive a big car, and as a result customer tend to buy smaller cars, which have more fuel efficient engines. Economic Crises: Also the economic crises in the last 5 years has decreases the buying power of customers. Big cars are usually more expensive than smaller cars, and since the resources are limited for the customers, they want to spend less for a car, and smaller cars are cheaper. Environment awareness: Customer now care more about the environment, and smaller cars produce less CO2 emission than big cars. Customers tend to buy more eco friendly cars, like Toyota. Smaller families: In the western countries families have become smaller, due to the decline in the birth rate, and the need for bigger cars has decreased. Government incentives: Governments are implementing policies that penalize the use of big cars due to the environmental issues, and at the same time the governments are providing incentives to the customers to buy smaller and more eco friendly cars. 13
  14. 14. STRATEGIES CORPORATE CORPORATE OBJECTIVES The Volvo Car Corporation is one of the car industry’s strong brands. The company is committed to : Support Business Areas and maximize Customer satisfactionthrough superior product performance and excellent service Offering customers the best value in selected segments Sound portfolio structure/renewing of the groups product portfolio Supporting safety of the community and the protection of environment Stability in earnings over a business cycle Developing the talents of its people through employee empowerment, working with energy and respect for the individual Profitability in all business segments CORPORATE STRATEGY ANSOFF MATRIX DIVERSIFICATION Opportunity in Asia (growing economy) Increase in environmental concern (new products) Social changes especially in Asia, less kids (new products) Flat growth/ recession in Western countries (Market dev) PRODUCT DEVELOPMENT Environmental concern Social changes Rising prices of petrol (new energy needed) Tax inventive for ecological car purchase Promote safety through road car accident concern 14
  15. 15. BUSINESS BUSINESS OBJECTIVES Objectives for the Differentiation strategy Introduce new products: Due to the changes in the customers demand, VOLVO has to introduce new products, in order to satisfy the expectations of the customers and increase their market share. New markets: In the last decade there have been a lot of changes in some countries. The BRICS countries have had a high economic development and as a result the disposable income has increased. This is a good opportunity for VOLVO to increase its number of customers, which would result in a higher market share. Innovation: VOLVO is known for its innovation strategy, but as the consumers’ expectation are getting greater and the competitive in this sector is very high, Volvo has to constantly improve. VOLVO has to use its competitive advantage, like SAFETY or ENVIRONEMENT but should also develop it further and further. They have to offer unique product that the competition will need some time to catch up on. BUSINESS STRATEGY: PORTER’S GENERIC STRATEGY DIFFERENTIATION: Product Uniqueness Providing high quality service (as it is a strength) Highly engaged in innovation (not priced focus) Safety innovation and research Ecological / environmental system and product dev Target a broad market Narrow markets are highly competitive especially luxurious one 15
  16. 16. Safety as well as ecology is a universal concern and should be available for a wide consumer group. In order to pull off this differentiation strategy it is important to have these following characteristics already in place in the company. As Volvo has the following characteristics, the differentiation strategy is achievable and could permit the company to grow. • Good research, development and innovation. • The ability to deliver high-quality products or services. • Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings (achieved through Volvo marketing strategy). MARKETING STRATEGY MASH ANALYSIS Effective segmentation requirements: Following a MASH analysis Measurable: Through secondary sources made by local statistics center, the World Bank or other independent organization, we are able to measure all of our data. For example, to measure how important is safety and ecology to a society, we will find out how many household recycle, uses solar energy power, eat organic food… Through sample, questionnaire and research, the data collected are easily measurable. Accessible: The segment we decided to work on has fairly high degree of accessibility. The information about this segment can easily be accessed and through our marketing strategy we are able to serve that particular segment effectively. Substantial: Our segment is fairly large within our operating market. We are targeting a quite broad audience and is sufficient enough for Volvo to be profitable and serve in this particular market. Homogenous: We have tried to come up with a segmentation that serves segment members as being as much as possible internally homogenous. Nevertheless as we are not going for a mass marketing strategy, we do not emphasis on homogeneity through our campaigns. 16
  17. 17. SEGMENTATION Better understand and identify our consumer’s need In order to create: Strong brand name Greater market share Cross selling solutions Psychographic segmentation: Lifestyle: Pre family / Family Household / employees C2 to B class Mostly Urban people Mainstreamer / Explorer Busy life / active lifestyle Looking at the “sagacity lifestyle model”, we decided to target pre-family and family. This lifetime segmentation corresponds to the values Volvo embrace and the car developed by the company is exactly what people like that will look for. Household as well as workers is also our target group. Volvo focuses on groups belonging to (upper) Middle class, lower middle class and skilled working class. Volvo is not a big enough brand to wider their audience as much as they want. By concentrating on urban people, we give the best shot for people in town to realize about the pollution. Our values and main product characteristics support our segmentation all the way. We want the mainstreamer to buy our model because they are the one that could best represent the company. They are conformist, conventional and want to be part of the mass. We would also like to attract the explorer. They are energetic, have autonomy and like challenges. Volvo group like challenges as well and nothing is impossible for us. Values Environmentally concern Be safe Money/ quality Opinion 17
  18. 18. Green political parties /socialism Risk yes, but with safety Interest Club and social community Like to participate Team sports / Team work Personality characteristics Adventurous but with a need for comfort and safety. Influential personality, Taster and evaluator Advantages of the psychographic segmentation: Psychographic segmentation gives a much better insight into the consumer as a person, which enable the brand to identify and underline the needs and motives of the consumers. It delivers a much better understanding of the consumer, which in turn creates more valid and responsive segments and will enable the company to plan marketing programs accordingly. Furthermore Volvo has the tool needed to achieve this segmentation: skilled researchers. The information collected will help us not only to develop our product accordingly but also to communicate and plan our strategies accordingly. We will use this knowledge to create competitive advantage in every sector of the company. TARGETING STRATEGY: Because Volvo is operating in different market and the targeted audiences in these markets are not similar, are not looking for the same characteristics and perceive cars differently, Volvo has to go for a differentiated marketing strategy: Differentiated Marketing Strategy Different Markets: Because we plan to go into different markets, more especially in BRIC countries and the audience will not be the same our strategies have to be different. 18
  19. 19. Volvo has an effective and high skilled team, therefore they have the potential to do it for the European Market, however for BRIC countries they can always contract private marketing companies, which are expert on the local environment. Different products: Volvo does not offer the same products in China as they do in Europe, for the only reason because the consumer’s need and desire are not the same. As a result our marketing mix campaigns will have to adapt to the people we are dealing with. Even though Volvo’s segmenting strategy is to catch a relatively broad audience, concerned with the environment etc, these people are not the same in China and in Europe. To conclude, Volvo will engage with a differentiated marketing strategy to make it more appealing and personal for the specific audience, while targeting a very broad audience. By doing several different campaigns we are ready to rake the risk to make it confusing for the consumer, however as it is in different market, this risk is very low. POSITIONING: Product perception from the consumer point of view By quality / Values: Some firms will position products based on relative high quality, or based on the claim that they represent significant value. By choosing a quality/ value product positioning, we want to show our customers that their money is worth it. By matching a high quality car with environmental as well as safety values we emphasis on our target audience’s needs and desires. By user: This positioning approach highlights the user (the ideal or representative target consumer) and suggests that the product is the ideal solution for that type of person and may even contribute to their social self-identity. We also want to create a personalized identity of the brand. By focusing on our targeted user and their values as well as their beliefs, we set ourselves as the best option and solution. Using different marketing strategy, we will set the perfect environment, representing the ideal consumer with our product. We want our consumers to be able to identify themselves as ethical, environmental friendly and responsible drivers. The brand contributes to their self-identity as well as the achievement of their beliefs. 19
  20. 20. PROMOTIONAL MIX Advertising Because every company in any industry uses advertising to promote their product we decided to come up with this following advertising strategy. - - - - Mobile Apps – Volvo has their own mobile apps and they are divided in three categories: Product Apps, Owner’s App, Campaign App. Videos – They have commercials on Television (mainly channels for automobiles) but not only. The video commercials can also be found on Youtube. Billboards -are being used as a way of advertising almost in every country where they are selling their products. Volvo Spirit Magazine –Spirit magazine is Volvo Construction Equipement’s company magazine, full of Volvo news and business updates. It is intended for every Volvo enthusiast. Volvo Driver Magazine– magazine for Volvo members, which contains information about Club meetings and events, technical information and advice, topics of general interest, all the latest Volvo news, and articles by Members, and a Sales & Wants section.It is being distributed once a year, only to Volvo members. Many other magazines – Volvo is advertising in variety of different magazines, especially in the ones specialized for automobiles, such as Top Gear, AutoCar, AutoExpress and so on. Public Relations For our PR strategy we have decided to get into media through: 
 • A press release on our website
 • A press conference 
 = On our press release and the conference we will emphasize our new ecological and safety direction and will also announce our plans for moving into the new developing markets. 
 Further, we will organize and sponsor events about ecology. There we will introduce our research and innovation towards more ecological vehicles. Direct Marketing Interactive Website: Since the consumers are very connected with the internet, this is a good opportunity for VOLVO to create a direct channel with the customers. With an interactive website, VOLVO will provide a service, where possible customers will have the possibility to make question and receive 20
  21. 21. answers in real time. This service will help the customers to create a better idea about the products that VOLVO supplies. Target Online Ads: Social networks and internet have become very popular in the last years. This trend can be used by VOLVO to advertise its products as much as possible. Being in a constant contact with the VOLVO ads, will make the consumers more aware of the products that VOLVO produces. Catalogue Distribution: The printed media is also a good marketing tool that VOLVO might use. They can give free catalogues to possible consumers, so that they can become more familiar with the products. Consumers can see all the products and they can get detailed information on the products they are looking for. Sales Promotion In order to maximize sales, Volvo Company considers the car warranty that will cover for any mechanical or electrical repairs needed on the car or parts of it. Tactical promotion warranty’s strategies can be adopted by manufacturers to maximize sales in peak trading periods, for example seasonal offers or new product launches. At the same time, company should consider offering new extended packages, which will last longer and covers fixing more damages than other car manufacturing companies do. Personal Selling As Volvo has a skilled and highly effective staff service, we want to take advantage of this characteristic. The in store experience of Volvo should be perfect. Our sales teams have been train to engage the customers and persuade them that Volvo is the safest and most environmentally friendly car they can get on the market. Personal selling is our way to create a relationship with our customers. We want to install trust and loyalty. By providing them with valuable information and by showing them that we care, they will more likely come back in the future. We understand that buying a car is an investment and for that very reason we engage with the customer through a personal as well as professional relationship. We will not engage through telemarketing or telephone marketing sales strategy as we want Volvo to be seen still seen as a “luxurious” with a responsible and respectable concerns of our customers. In summary, Volvo has a high skilled staff and high quality service and because they are selling expensive products with very high specific values, the company has to: = Install trust with customers, which will lea to loyalty = Provide valuable information = Persuasion and very effective sales methods 21
  22. 22. SOURCES EMEA Marketing Blog URL: http://emeamarketing.co.uk/wordpress/what-isemea-marketing Gray, J. Hayes, K. (n.d) “Application of Brand Management Techniques to Professional Development” 
 In the World of Food Science. URL: http://www.worldfoodscience.org/cms/?pid=1000463 VOLVO Given Case Study Volvo Group: http://www.volvogroup.com/group/global/engb/Pages/group_home.aspx Willan, Mo. Marketing Strategy Lectures 22

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