Aston Martin Magazine
Embed Size (px)
Transcript of Aston Martin Magazine
AM The Aston Martin Magazine
This marketing plan outlines the launch of Aston Martin’s newest car, the DBX in Canada. It sets itself apart in the industry by being a
product predominantly targeted towards high-powered professional women, as a new segment. Using sponsorships, PR, product
placement, print, radio and television, Internet and celebrity endorsement, we will be targeting this growing market.
Table of Contents Situation Analysis 1 Market Summary & Target Market 2-3 SWOT Analysis 4-5 Product Offering 6-7 Channel Strategy 8 Marketing Objectives 9 Marketing Strategy 10 Mission Statement 11 Marketing Mix 12-14 Financials 15 Contingency Plans 16 Work Cited 17
Situation Analysis ston Martin offers high-powered luxury cars for the automotive market. Following last year’s poorer financial
performance, as well as the emerging trends within the automotive industry, it is crucial for the company to adapt with the market and capitalize on the established future consumer requirements.
Due to developments in technology, the brand is set to enter the high performance electric car market with the all new DBX model. This model is set to be released in early 2016 and uses innovative new technology, which will produce the world's fastest electric sports car. With the use of creative marketing techniques, and a unique product placement, the car will be positioned as a more practical alternative in
comparison to other models, and will cater to the growing professional female market.
There is a demand in the market for a luxury automobile that is predominantly targeted towards high-income professional women. Aston Martin will meet this demand with the all-new DBX, which will compete with existing Tesla and BMW i8 electric vehicles, as well as various Mercedes and Porsche models. Competition for the DBX will not be confined to only electrical cars, as its performance and ability will match that of many conventional performance cars. Canada is the ideal target market for this new model, as the country has a stable economy, has environmentally conscious values and is in close proximity to the new DBX production factory in Alabama. Therefore, Canada is a viable location for this new model.
Market Summary & Target Market
ince Aston Martin was founded in 1913, the company has sold 70,000 vehicles. Throughout
the past 102 years, women have only represented 5% of sales in the exclusive luxury company (Clark ,2015). In order to remain relevant and keep up with current trends, Aston Martin is developing a new model primarily targeting women. According to the CEO, Andrew Palmer, the new DBX model is aimed at a fictitious female character named Charlotte. She is a powerful professional, working mother in her 30’s. Charlotte is married to a high level professional, and has children that are four and six years old. She is an art enthusiast, avid traveller and music lover. Palmer has a created a detailed profile vision, and thus the interior of the DBX is designed specifically to cater to this new market. This crossover combines the “shell of safety” with
“flexibility and room for the children” (Beissmann, 2015). Since the company’s establishment, Aston Martin has only sold 3,500 cars to women,
believing that the crossover vehicle is exactly what the brand needs to increase sales to women. Aston Martin has no exclusive dealerships
within Canada. Aston Martin vehicles are only available for purchase at five luxury dealerships located in Vancouver, Toronto, Montreal, Calgary and Regina. As these are the most densely populated, metropolitan cities in the country, Aston Martin has focused on selling in these specific regions. Due to a significant annual income in these cities, affluent professionals are able to purchase these luxury cars.
S “… the new DBX
model is aimed at a fictitious character named Charlotte.”
1. Legacy: Aston Martin is an established luxury brand that has been around for 102 years. A rich and prestigious heritage defines Aston Martin as something truly unique within automotive history (Aston Martin, 2015). Its distinct story and firm values is what connects them to their customers.
2. Craftsmanship: The brand prides themselves on the highest standard of artistry. Every car is intricately detailed with the same hand craftsmanship since the company's inception. Many of the original tools that were used to make the cars in 1902, are still being used today to service and restore them.
3. Strong Brand: Aston Martin has developed a strong pop culture presence through its partnership with James Bond. Since 1964, Aston Martin cars have been featured in James Bond films and has “established itself as a motoring movie star, an icon of style and speed with a compelling air of mystery” (Aston Martin, 2015).
Weaknesses: 1. Limited model range: Aston
Martin has a limited model range with the lowest price point starting at $140,000. With only four models, Aston Martin caters to a select market, which is not representative of today’s changing demographic.
2. Narrowly defined market: The luxury brand’s customer base has always been middle-aged Caucasian men between the ages of 50-64. With the rise of multiculturalism in Canada and the financial boom in Asia and the United Arab Emirates, more people are now able to afford luxury cars. However, because Aston Martin is not targeting these affluent markets, they are lagging behind.
1. New Market Penetration: Aston Martin sales have been decreasing from 7000 to 4000 vehicles in the past few years. They need to reinvent themselves and develop cars for new target markets. They have the opportunity to appeal to both a younger demographic and to female customers. “No longer can Aston Martin rely on the middle-aged enthusiast who has been the mainstay of past sales.” (Hotten, 2015)
2. Become a Public Company: If Aston Martin were to go public, this would ultimately generate capital that will reduce debt that the company has. The company would also be able to use some of its capital to fund research and development, develop long-term plans and expand to new markets. (Balasubramaniam, n.d.)
1. Competition: Aston Martin’s main competitor, Bentley, Ferrari and Porsche are developing new products and broadening their appeal to new customers. They have developed more family friendly cars with SUV models and crossovers, attracting an extensive customer base. High end luxury car companies including Lamborghini, Maserati, and Rolls Royce are all developing their own SUV’s (Rooney, 2015)
2. Financial Cost: Aston Martin is a privately owned company which could be very expensive to maintain. Many companies go public in order to obtain external financing and to reduce debt. Due to decrease in sales in the past years, the company has relied on private investors to step in and reduce their debt (Hotten, 2015).
Product Offering Fuel source: The DBX is a fully electric luxury vehicle, and its technological advances make it visually appealing for consumers. According to Aston Martin, the crossover concept is powered by a series of on-board electric motors, with juice courtesy of lithium-sulfur battery cells. The DBX's carbon ceramic brakes will also help boost the crossover GT's range by recovering otherwise wasted braking energy. Engine: Embracing the very latest engineering techniques and theories, the DBX concept needs no engine compartment thanks to its use of electric, inboard-of-wheel, motors powered by lithium sulphur cells. The DBX is an all-wheel-drive EV, with individual electric motors powering each of the wheels.
Capacity: Capable of accommodating four adults comfortably, the DBX concept also focuses on day-to-day practicality. The unique vehicle includes front and rear
luggage compartments and an interior with a flat floor. DBX has a two-door, four-seat design that is sporty with large wheels and elevated height.
Design: The brand uses only authentic materials, and the concept for the exterior of the vehicle is made of machined billet aluminum, visible milling lines. This form of craftsmanship is intended to be viewed as the car’s “jewellery”. The DBX unique paint finish – Black Pearl Chromium – has been specially created to mimic the look of a genuine black pearl, and comprises a micro-fine layer of chrome to deliver a level of reflectivity that cannot be obtained through normal paint finishes.
Inside, the deliberate use of non-automotive standard materials generates a uniquely soft, cocooning ambience. The extensive application of velvet-like nubuck leather contrasts with the concept’s hard, hi-tech equipment. The exposed leather reveals a sandwiched accent layer, more akin to high-end furniture, while the car’s interior bright ware matches that of the exterior with the addition of a gold ‘pin striping’ element on the edging.
Active LED exterior lights, carbon ceramic brakes with a kinetic energy recovery system (KERS), and rear view cameras in place of conventional mirrors also underline the mould-breaking nature of this luxury Grand Tourer concept.
“The DBX Concept is a challenge to the existing status quo in the high luxury GT segment. It envisages a world, perhaps a world not too far away, when luxury GT travel is not only stylish and luxurious but also more practical, more family-friendly and more
- Andrew Palmer, CEO
For the new DBX model, Aston Martin will use channel partners to serve as distributors. The company uses direct channels in other parts of the world, such as Europe. Aston Martin’s small market share in Canada means that selling directly to the customer isn’t a viable option at this time. Therefore, the use of partners and existing distributors will remain the preferred distribution method for the DBX across the country. Over time, Aston Martin’s channel strategy may be revised by adopting a direct channel supply chain. However, measures will need to be put in place to ensure channel conflict does not occur between various sales channels.
The DBX is set to be an all-new model, therefore Aston Martin will be looking to achieve
several new objectives with the car. Over time, as the vehicle moves through the product life cycle, the car will move from the introductory stage, to growth and then into maturity. As this happens, the initial outlined objectives will change and develop accordingly to ensure a prolonged life cycle that other Aston Martin models have achieved.
Below are the primary marketing objectives that Aston Martin will strive to achieve and ensure strong sales growth for the DBX model in 2016.
Enter a new market Successfully position the DBX as a luxury performance hybrid vehicle within the market, specifically targeting and attracting
Improve brand and product awareness
Increase annual number of visitors to company website from 3 million to 5 million by 2017 through developing a ground
breaking, creative and interactive online marketing campaign for the DBX.
Successfully launch new product
Use all available marketing tools to promote and educate consumers about the new model prior to the launch of the DBX.
Sales growth Achieve a 5% share of the luxury sports car market in Canada and a 25% share of the electrical hybrid performance market in
Gain advantage over competitors
Reduce order lead time in Canada by 20% on other models due to proximity of manufacturing the DBX in the U.S.
Advertisements for the new $1.8 million
Aston Martin coupe initially will not discuss the car's top speed or horsepower. Instead, they focus on the fact that only 77 cars will be built. The company will use scarcity to create a demand for the vehicle by highlighting the exclusivity and add urgency to launch a new concept targeting women.
2. Concentrated Marketing: This
approach also known as niche marketing which is effective to reach particular market segments such as women in this marketing plan. This approach is often adopted by firms that either have limited resources to fund their marketing strategy, or wish to adopt a very exclusive strategy in the market. Aston Martin already uses this approach to target high net worth individuals interested in luxurious and high-performance cars.
3. Inbound marketing: Focuses on
creating quality content that pulls people towards the company at an earlier stage in their buying decision. In the past, Aston Martin had adopted this approach with the introduction of the new ‘buyer persona’ campaign.
4. Product Placement/Event: The use of endorsements from celebrities that mirror the target consumer will increase brand awareness. Aston Martin has done so in the past with launching new vehicles in the James Bond films. The DBX model will be displayed at event featuring high net-worth females and other corporate functions.
5. Database Marketing: Its pivotal in
the product development stage to research potential target market information and understand demand for the product prior to the manufacturing. An elite list of potential buyers will be targeted on a one-to-one basis through direct mail, email communications and invites for the pre-launch gathering. Database marketing will also be used after the product has been launched to contact potential buyers for test drives.
6. Tradeshow Marketing: High profile auto shows and tradeshows will be used for this product launch. This will be a trademark launch and could possibly work as an event strategy by Aston Martin sponsoring booths and having a VIP Lounge area at each show.
Scarcity Marketing: 1.
For the high-powered affluent woman, Aston Martin encompasses luxury, performance and allure among all other
elite cars based on 102 years of handcrafted excellence.
Marketing Mix As stated above, the objective of the marketing mix is to achieve a 5% share of the
luxury sports car market and a 25% share of the electric hybrid performance market in Canada. The marketing communications mix will apply Aston Martin’s elegant design, luxurious feel and standardized colours of black and grey across all mediums. As Aston Martin is a distinguished brand, with only 70,000 cars sold in its entire existence, these car owners hold an elite status in society as a whole. Using the following traditional and digital media, Aston Martin will effectively reach its target market to launch the new DBX:
“If it wasn’t for James Bond, Aston Martin would have died by now”
- Brian Murphy
n 2014, Aston Martin posted a pre-tax loss of 72 million British pounds,
which is almost triple the loss of last year (De Burton, 2015). This is a result of a defective part in one of the models in China. This issue should be resolved by the time the DBX is released. There has been an increase of 150% in the automotive industry since 2009, with no end in sight, leaving room for Aston Martin to further expand (De Burton, 2015). In 2013, the company sold
4,200 vehicles worldwide and last year dropped to 3,500. However, numbers are expected to rise with the re-entry into the Chinese markets. As the DBX is exclusively targeting women, Aston Martin should see an increase in sales in the coming years. The DBX is the only luxury vehicle that is geared specifically for professional women, allowing Aston Martin to be a temporary monopoly in that market segment (Statistics Canada, 2015).
ston Martin does not have their own dealership in Canada, instead sharing
space with other luxury brands such as Rolls Royce and Bentley. This could be a potential challenge, as the car sales associates do not have any incentive to specifically sell Aston Martin vehicles. Instead, they may promote a competing luxury brand to a potential customer (Brian Murphy Interview, 2015). In order to prevent this from happening and ensure brand loyalty, sales associates throughout Canada
should receive an increased commission for every DBX sold in the first three years.
Another potential obstacle Aston Martin faces is from existing customers. The DBX could possibly negatively impact the brand’s image as it has only been marketed to men in the past. Due to the structure change of the vehicle, the newly designed DBX might not appeal to existing Aston Martin vehicle owners. To overcome this issue, it is essential to position the model strategically in men’s magazines and sports television and radio channels.
Work Cited "What Are the Advantages and Disadvantages for a Company Going Public?" Investopedia.
N.p., 29 Aug. 2006. Web. 07 Dec. 2015. Retrieved from: http://www.investopedia.com/ask/answers/06/ipoadvantagedisadvantage.asp
"Why Does a Company Decide to Go Public?" Business Dictionary Articles. N.p., n.d. Web. 07 Dec.
2015. Retrieved from: http://www.businessdictionary.com/article/780/why-does-a-company-decide-to-go-public
"Women and Education." Women and Education. N.p., n.d. Web. 07 Dec. 2015.
Retrieved from: http://www.statcan.gc.ca/pub/89-503-x/2010001/article/11542-eng.htm StatsCan, 2015
Baines, P., Fill, C., Page, K. (2013). Essentials of Marketing, OUP Oxford. Beissmann, T. (2015). “Aston Martin’s New Target Buyer Is an Imaginary Woman Named Charlotte |
CarAdvice." CarAdvice.com.au. N.p., n.d. Web. 07 Dec. 2015. Retrieved from: http://www.caradvice.com.au/353025/aston-martins-new-buyer-market-is-an-imaginary-woman-named-charlotte/
Clark, S. "Aston Martin Seeks Women Drivers, Luxury Tag." WSJ. N.p., n.d. Web. 07 Dec.
2015. Retrieved from: http://www.wsj.com/articles/aston-martin-seeks-women-drivers-luxury-tag-1432721358
Hotten, R. (2015). "Aston Martin Battles to Reinvent Itself - BBC News." BBC News. N.p., n.d.
Web. 07 Dec. 2015. Retrieved from: http://www.bbc.com/news/business-31727799 Lorio, J. (2015)."Aston Martin DBX Concept: A Gorgeous, Lifted, AWD Electric Sports Car –
Auto Shows." Aston Martin DBX Concept Photos and Info – News – Car and Driver. N.p., n.d. Web. 07 Dec. 2015. Retrieved from: http://www.caranddriver.com/news/aston-martin-dbx-concept-photos-and-info-news
Murphy, B. (2015). Personal Interview. Global Automotive Consulting Rooney, B. (2015). "Lamborghini's 600-horsepower 'family' Vehicle." CNNMoney. Cable
News Network, n.d. Web. 07 Dec. 2015. Retrieved from: http://money.cnn.com/2015/05/27/autos/lamborghini-suv/
Zhang, B. (2015). "Aston Martin Is Making a Very Risky Bet on This Electric Car." Business Insider. Business Insider, Inc, 07 May 2015. Web. 07 Dec. 2015. Retrieved from: http://www.businessinsider.com/aston-martin-is-gambling-the-electric-dbx-crossover-2015-5