Marketing environment for SUVs in Australia Report 2022

Running head: CASE ANALYSIS REPORT
CASE ANALYSIS REPORT
Name of the Student
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Author Note

1CASE ANALYSIS REPORT
Table of Contents
Introduction......................................................................................................................................2
Impact of the recent changes in Australian population on marketing prospects.............................2
Key aspects to consider for the macro environment car marketers.................................................3
Assessing the attractiveness of the Automobile industry................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

2CASE ANALYSIS REPORT
Introduction
The report analyses the present marketing environment for SUVs in Australia. The focus
of the report is on evaluating the changing nature of the SUV market of the country due to
demographic changes in the last few years. The current market environment for SUV cars are
analysed to find out the key aspects that need to be considered by the marketing teams. The
attractiveness of the automobile industry considering the present market conditions are also
evaluated through the work. The study focuses on finding whether the SUV advertisements
presently are able to reach the target audiences effectively. The Australian SUV adverts presently
portrays the predominant image of the average Australian family with the mother and father and
2.5 children. Moreover, ads often do not provide the image of the significant ethnic diversity of
the country. Hence, in view of the dominant marketing aspects for SUVs in the country, it has
become important that the present market conditions of the automobile industry are evaluated.
Impact of the recent changes in Australian population on marketing prospects
The demographic factors of Australia have been changing greatly over the last decade. As
of December 2012, the population of the country was 22,906,400. Overseas migration have
greatly influenced the population growth of the county in the past few years. Presently, the
average family side in Australia is 2.63. More families tend to have only a single child as a result
of the declining fertility rate. An important trend is the increasing ethnic diversity of Australia.
Additionally, it can be said that Australia has an increasingly aging population. The population
growth rate of people aged 65 or above increased to 15.9% from 12.3% (Australian
Demographic Statistics 2020). As of 2018, nearly 29% of the population were born overseas.
The women population of the country has also increased with an improving sex-ratio. These
changes can definitely have a significant impact on the market. In view of the changes in
population the marketing functions of the SUV manufactures should also change. The focus
should be on increasing the value of the product for the emerging populations.
The evolving population trends can change the way marketing is perceived. In view of
the SUV markets, the major impact can be on the segmentation of the customers. The problem
however, that can be clearly seen from the case study is the backdated marketing aspects that are
currently present. In regard to the present marketing and advertising functions it can be said that
the SUV manufacturers are still focused on the reaching the traditionally perceived customer
base. Hence, the focus is mainly on depicting Australians of European origin. Seeing people of
more diverse ethnic groups are not common. Keeping in mind the growing immigrant population
of Australia from various nationalities, the advertisements should give more preference to
showcasing the diversity of the population. Moreover, the SUV companies have focused more on
the family values that they provide the customer till now.
There is a large Chinese dominated Asian population in the country. Moreover,
immigration from the Middle-East have also increased over the years. A growing number of
youths in the country are also interested in the SUV experience. Considering these factors the
marketing definitions are slowly but visibly changing. The most important factors that can define
marketing at this time is customer orientation and product orientation. These factors are

3CASE ANALYSIS REPORT
important as sales improvement can only be possible by considering this factors as much
important for implementing better advertising functions. Better marketing techniques are
required to address the needs and wants of the changing populations. The concept of family has
been important till now. However, the other groups also need to be included to optimize the
marketing messages. In consideration of the factors discussed, it can be said that SUV ads
presently do not reflect the real picture.
Key aspects to consider for the macro environment car marketers
Selling cars in important for the SUV market of Australia. In view of the demographic
changes, it is important that the STP strategies are redefined. However, in accordance with the
same, the 5Cs and the 4Ps strategies should also be optimized to improve the customer reach that
can be gained through more effective advertising. One major aspect that would determine the
macro environment of car manufactures would be identifying the current and potential customer.
The population trends can be taken as one of the most important macro environmental forces that
are currently facing the organization. It is also important that the new age customers and their
preferences for buying SUVs are considered much importantly. The segmentation needs to be
done on the basis of the newer markets that have been created due to the change in population.
More importance need to be given to the rising micro families, the newly migrated youth,
working friends groups and the independent women.
Segmentation in consideration of the demographic changes are important as the newly
emerging markets needs to be addressed. The family remains one of the largest market segments
for SUV in Australia. However, an emerging potential target group is the immigrant youth. More
Asians are settling in Australia for business and job purposes. They are mostly aged between 30
and 40 years. This segment is increasing as a result of more immigration. These people want
SUVs to go out with their friends and travel. Another important target is the single working
woman. The women are between the age of 25 and 35. They are more interested in SUV for
leisure travel. An important example of targeting this segment can be seen from the
advertisement of Ford Endura SUV. The advertisement shows a young working woman
operating an SUV and displaying the most important features (Ford Australia 2020). It is
important to note that the newer customer segments are already been explored by many SUV
manufacturers. Similarly, the Holden Acadia has shown the diverse ethnic groups in their
advertisement. The ad shows people from various cultural and ethnic groups traveling in the
Acadia (Holden Australia 2020).
Considering all the factors, another important key aspect that can determine the business
success for the macro environment car manufacturers is segmentation based targeting. The
division of the market into sub-groups can help the SUV manufacturers to capture the
opportunities that are being created at this time. It can be said that the demographic factors have
made the market of the SUVs more diversified. Hence, there is a need for addressing all the
major areas of marketing. Hence, an important aspect is targeting. Moreover, SUVs
manufactured by the organizations operating in the macro-environment tend to be different in
terms of the value that they offer to the customers. For example- there are the smaller SUVs that
are more popular among the youth (Bailey 2020). There are also the larger SUVs that are
considered ideal for the big families. As per the case study the Australian SUV manufacturers
have predominantly focused on the families with 2.5 children, the mother and the father.

4CASE ANALYSIS REPORT
However, as per the new data, the average family side in Australia is 2.63. More families tend to
have only a single child as a result of the declining fertility rate. It hence becomes more
important that the smaller SUVs are marketed as essential family vehicles. These SUVs can be
marketed to be ideal for the smaller families of the country. Another solution can be
manufacturing vehicles that fit the requirements of these smaller families, the youth and the
working women collectively. Hence, the redesigning and repositioning of the products can be
effective as multiple markets are emerging. The emerging customer needs and wants need to be
met more effectively. Car manufacturers should understand the vehicle usage preferences of this
growing population. Thus, it is important that the population trends are understood firmly.
Moreover, diversity is a much important factor given that more than a quarter of the population
consists of the foreign born individuals. The messages should be clearer, more inclusive and
effective enough to attract the attention of the target populations.
Assessing the attractiveness of the Automobile industry
The vehicle market of Australia is fairly large. The commercial market value is currently
more than 16.29 billion dollars. The market projections for the company assess that the value can
reach more than 21.66 billion by the year 2022 (Winroth and Bennett 2017). The CAGR of the
vehicle market is 5.12%. It is important to understand that the SUV segment is one of the most
attractive vehicle segments for the consumers at the present times. Around 885,000 customers
intend on buying SUVs at this time. Additionally, more than 2 million potential customers want
to buy vehicles in the next three to four years. However, other vehicles such as transport, small
vehicles or sedan also have significant market in the country. Some of the best-selling SUVs
presently are Mazda CX-5. Hundai Tuscon and Toyota RAV4 (Broadbent 2018). An important
thing to remember is that the SUV market is being dominated more by the medium SUV than the
large SUVs. This is mostly due to the fact that the medium SUVs are handier and have lower
maintenance. The changing population of the country is making the market more heterogeneous.
The demand for cars is increasing. However, the present demand is divided into various market
segments. The increasingly diverse population of the country want to fulfil their diverse vehicle
needs.
The automobile industry needs to provide more value to the changing needs of the
customers. One way of adding value for the customers in selling cars is to make vehicles that can
suit the demands of multiple customers. Hence, SUVs can be made that can provide separate but
important values to various customer segments, like the family, the youth or the single working
women. However, there can be some disadvantages of this form of value. The automobile
companies might not be able to address a large number of people through this product.
Moreover, it might be very difficult to create value that can cater to the needs of all the
customers at the same time. Value creation is also dependent on the messages that are sent to the
customers. The traditional advertising modes would not be working for the organization. It is
important to develop better marketing strategies that can attract the growing customer segments.
The marketers need to create more value for the diverse populations of the county. This means
that that better values need to be created for the customers from different cultural backgrounds.
The Holden Acadia has shown the diverse ethnic groups in their advertisement. The ad shows
people from various cultural and ethnic groups traveling in the Acadia. Similar forms of ads need
to be used by the other vehicle companies to cater to the needs of these diverse customers.

5CASE ANALYSIS REPORT
However, there is one significant issue that can affect the customers. The ethnically diverse
populations of the country might have different value expectations from the company that might
not be easy to judge. There is more scope for the sale of the medium range SUVs. These are
more cost effective than the others. Hence, more customers would be interested in these forms of
vehicles. More value can be created by ensuring comfort, style and fuel effectiveness of the
vehicles. It is important to note that the SUV market needs to be addressed in a holistic sense.
Conclusion
In conclusion, it can be said that the demographic factors that govern the market of
Australia are changing fast. There is a need for being more innovative and capture the attention
of the growing customer base. As found from the above analysis some of the most important
customer segments are, the family, the young working population and the female working
populations. There is a need to be more effective in the advertising campaigns. It was found that
the current SUV ads do not reflect reality much.

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References
2019 Ford Endura The All New Luxury SUV | Ford Australia (2020). Available at:
https://www.ford.com.au/suv/endura/ (Accessed: 16 April 2020).
3101.0 - Australian Demographic Statistics, Jun 2019 (2020). Available at:
https://www.abs.gov.au/ausstats/abs@.nsf/0/1CD2B1952AFC5E7ACA257298000F2E76
(Accessed: 16 April 2020).
Australia’s changing population – Parliament of Australia (2020). Available at:
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/
pubs/BriefingBook44p/AustPopulation (Accessed: 16 April 2020).
Bailey, M., 2020. Urban disruption, suburbanization and retail innovation: establishing shopping
centres in Australia. Urban History, 47(1), pp.152-169.
Broadbent, G.H., 2018. Speeding the uptake of electric vehicles in Australia.
Holden Best SUV 2019 | 5 & 7 Seaters | Holden Australia (2020). Available at:
https://www.holden.com.au/suv (Accessed: 16 April 2020).
Winroth, M. and Bennett, D., 2017. International production networks in the automotive
industry: drivers and enablers.