Marketing Analysis of Holden Automobile Company

This report is focused on marketing analysis of Holden Automobile Company. It includes the discussion about the target market of the chosen company. Considering the market and its competitors, a perceptual map is prepared for Holden Automobile Company. Further, it analyses the external and internal environment of company by considering different factors. At the end, the report discusses the current integrated marketing communication campaign of the company.

Running Head: MARKETING FUNDAMENTALS 1
Marketing Analysis of Holden
Automobile Company

MARKETING FUNDAMENTALS 2
Table of Contents
Introduction.................................................................................................................................................3
Company Description..................................................................................................................................3
Marketing Analysis of Holden Automobile Company..................................................................................4
Target Market..........................................................................................................................................4
Perceptual Map.......................................................................................................................................4
External Environmental Scanning............................................................................................................5
Social Factors.......................................................................................................................................6
Economic Factors.................................................................................................................................6
Demographic.......................................................................................................................................6
Technological Factors..........................................................................................................................6
Political/Legal Factors..........................................................................................................................7
Competitive Factors.............................................................................................................................7
Factors affecting choice of Holden Automobile Company.......................................................................7
Internal Factors....................................................................................................................................7
External Factors...................................................................................................................................8
Integrated Marketing Communication Campaign (IMC)..........................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11

MARKETING FUNDAMENTALS 3
Introduction
For each and every organization, it is very important to conduct marketing analysis so that it can
evaluate its surroundings and external environment. Through this analysis, the company studies
the dynamics and attractiveness of a particular market within a specific industry. There are
various frameworks which can be used to analyze the external and internal market and related
factors that can affect the company’s business. It is significant to analyze the external
environment by evaluating different factors like political, social, economic factors etc. This
report is totally focused on marketing analysis of Holden Automobile Company that is formally
known as General Motors Holden. Holden Automobile Company is a subsidiary company of
General Motors that operates its business as Australian automobile importer and former
automobile producer. This report includes the discussion about the target market of the chosen
company. Considering the market and its competitors, a perceptual map is prepared for Holden
Automobile Company. Further, it analyses the external and internal environment of company by
considering different factors. At the end, the report discusses the current integrated marketing
communication campaign of the company.
Company Description
Holden Automobile Company, officially known as General Motors Holden is an Australian
automobile manufacturer and automobile importer. The company was founded in the year 1856
as saddlery manufacturer in Australia. In the year 1908, it entered into automotive sector and
became a subsidiary of US based automotive giant General Motors (GM) in 1931. Currently, it is
headquartered in Port Melbourne, Victoria. After that, it has changed its name to General
Motors-Holden’s Ltd. In 1998, it was renamed Holden Ltd. and General Motors Holden in the
year 2005 (Holden Australia, 2018). Holden offers residual stock of locally manufactured range
of Commodore vehicles and imported models of GM. Additionally, the company has provided
the badge engineered models in sharing agreements with Isuzu, Nissan, Chevrolet, Toyota,
Suzuki, Vauxhall Motors and Opel. It is an international manufacturer and distributor of
vehicles, components, parts and engines (Packham, 2017). The company represents its domestic
country (Australia) as design center of excellence and a significant base in emerging Asian
markets.

MARKETING FUNDAMENTALS 4
Marketing Analysis of Holden Automobile Company
Target Market
Holden Automobile Company is successfully operating its business operations in Australian
automotive industry. The organization focuses on its target market by establishing a mission
statement i.e. “to become the most successful automobile company of Australia with a full
commitment to customers and passion for excellence”. Holden Automobile Company is offering
its products and services considering the needs and demands of customers in Australia and New
Zealand. It targets its customers considering different characteristics like geographic,
demographic, psychographic and behavioral characteristics. Under geographic segmentation,
Holden focuses on the population of Australia and New Zealand. Moreover, it emphasizes on the
age and income under demographic segmentation (Thompson & Martin, 2010). Considering
these segmentation, Holden offers its products to the people of moderate income level and age
group of 25 to 40 years. In the Australian states, it sells its products by targeting the upper and
middle class individuals. Thus, it can be stated that Holden Automobile Company currently
offers the automobiles for all segments in the market.
Perceptual Map
Perceptual mapping is the process which is used by the marketing divisions of companies that
show the opinion and perception of customers towards company’s products and services
(Guajardo, Cohen & Netessine, 2015). In the perceptual map, the position of company’s product
line, product is shown comparative to their competing brands.

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 Mercedes
Infiniti
 Honda
 Toyota
Volkswagen
Renault
(Source: By Author)
The above diagram indicates different competitors of Holden Automobile Company on the basis
of price and quality of their automotive products. Among them, the major competitors of this
company are such as Honda, Toyota, and Renault etc. Holden Automobiles is the organization
that is offering quality products on moderate prices which can be afforded by middle and upper
class people (Wheelen, Hunger, Hoffman & Bamford, 2017).
External Environmental Scanning
There are some environmental factors which can affect the business operations of Holden
Automobile Company in its industry. These factors are given below:
Low Quality High quality
Lower
Prices
Upper class
people
Higher
prices
Holden
Automobile

MARKETING FUNDAMENTALS 6
Social Factors
Social factors have a huge impact on the business operations of Holden Automobile Company.
The company is offering a wide range of automobile products to its targeted customers. Being a
subsidiary of General Motors, this company understands the social wants and needs of customers
and offers them with the vehicles as per their preferences. In Australia, a significant percentage
of its population is covered by middle and upper class people. Thus, it offers its products keeping
in social status of people in the mind. In Australian society, people judge others based on the
type of car they drive. So, Holden manufactures attractive and innovative cars so that it can
attract more people towards its products (Conlon & Perkins, 2018).
Economic Factors
Economy of Australia is one of the largest economies all over the world with a Gross Domestic
Product of AU$1.69 trillion. It is the second richest in terms of wealth after Switzerland. It
indicates that economy of country is growing year by year that supports the business operations
of Holden Automobile Company. In the country, disposable income of people is higher than
earlier so they have enough money to spend on purchasing vehicles. It has positive impact on the
growth of Holden Automobile industry in the country.
Demographic
The demographic of the country shows that population of the country is forecasted to be
24,992,800 till 10 July 2018. Australia is 52nd most populous nation all over the world. Most of
its population resides in the urban areas and it has 99% literacy rate (Australian Bureau of
Statistics, 2018). These are the major factors which can positively affect the business of Holden
Automobile Company. People prefer to travel by their owned cars, so Holden Company has
more opportunities to offer more products which fulfill the increasing needs and demands of
customers towards vehicles with new specifications.
Technological Factors
It can be seen that General Motors adopts innovative and updated technologies in its operations
and gain more competitive advantage in automobile industry. It is the subsidiary of General
Motors, so it also has various opportunities in this area of external environment. For instance,
enhancing implementation of self-driving car technology develops opportunity for the firm to
offer more competitive vehicles to the customers (Litman, 2017). The company should

MARKETING FUNDAMENTALS 7
emphasize on manufacturing advanced vehicles with fuel efficiency ratings. These technological
factors will assist Holden to grow its business and increase the revenues.
Political/Legal Factors
Holden Automobile Company confronts the challenge of government promotion of public
transport and other options for travelling from one place to another. For instance, this external
factor boosts people to utilize the shared transportation like local trains, buses and car sharing
businesses. It can reduce the Holden customers’ likelihood of buying automobiles. The
government has introduced various tax policies and regulations that threaten Holden Automobile
through increases in taxes which reduce profits and revenues. Thus, the company needs to
comply with all the environmental and other regulations of the government. Additionally, road
safety awareness program introduced by the country’s government directs the organization to
enhanced safety focus in the vehicles (Smith, 2015).
Competitive Factors
Apart from above external factors, there are various competitive factors which affect the growth
and success of business of Holden Automobile Company. In the Automobile industry, there are
various competitors like Toyota, Hyundai, Honda, Renault etc. This organization is competing in
the industry on the basis of different competitive factors like prices of vehicles, quality,
distribution location and innovative features in the vehicles. Honda and Toyota Australia are two
competitors which are offering quality vehicles on affordable prices. This is the reason that these
companies are able to attain a significant market share in global automotive industry. The prices
of Holden’s vehicles are comparatively higher which can be afforded by upper and middle
classes of society (Peteraf, Gamble & Thompson, 2014). Considering different competitive
factors, Holden Automobile Company needs to implement and upgrade its business and
marketing strategies.
Factors affecting choice of Holden Automobile Company
Apart from external factors, there are some factors related to customers that can affect their
perception and choice towards the products of Holden Automobile Company (Azadfar, Sreeram
& Harries, 2015). These factors can be both internal and external which are explained below:
Internal Factors
Personal Factors

MARKETING FUNDAMENTALS 8
Among internal factors, personal factors are the major factors which force the customers to
purchase the vehicles of Holden Automobile Company. One of the foremost factors is income of
the people which can affect the choice of Holden’s products. The prices of its vehicles are higher
than other competitors. Thus, only people with higher and medium income level can purchase its
automobiles. Low income earners always tend to buy the less expensive cars from Holden
Automobiles. Age is another factor which affects the decision of buyers towards buying the
vehicles. For example, youth prefer to buy the sporty and electric cars and other generations
prefer to buy traditional models which they find more comfortable. Moreover, customers always
seek to select the cars which provide them satisfaction and self-esteem (Mirabi, Akbariyeh, &
Tahmasebifard, 2015).
Psychological Factors
The image of product or brand affects different psychological factors like attitude and beliefs of
customers, life style, needs of customers. Like fashion and apparel brands, automobile is also the
extension of one’s perception. Generally, people purchase the vehicles which suit their
personalities and life style. In addition to this, the Australian population prefers to buy the cars to
fulfill their needs like travelling convenience, car size according to family etc. Considering the
lifestyle of people, Holden Automobile Company is manufacturing its products by including new
features which can affect the customers’ perception positively (Lin & Lekhawipat, 2014).
External Factors
Social and Cultural Factors
There are some external factors which are related to the society and culture that affect the choice
of customers towards the products and services of Holden Automobile Company. The perception
of culture of automobile brands makes the people buy more and they always belief in what their
relatives and friends prefer to buy. Moreover, social status of customers forces them to purchase
higher priced cars so that they can show off in the society. The people from upper class have the
tendency to make spending on the luxurious cars of Holden. Under this, quality is a foremost
factor that influences the attitude and commitment of customer in buying the automobile
products of Holden Company (Law, 2017). Quality depends on the factors such as color, faith in
sales person and other related features. Additionally, the customers prefer to buy the products
from the brands which belong to their culture and country background. For Holden Automobiles

MARKETING FUNDAMENTALS 9
in Australia, it can be stated that family and role of social status has a positive impact but not
more significant to the company’s product buying choices (Nayeem, 2012).
Integrated Marketing Communication Campaign (IMC)
In order to promote and advertise its products and services, Holden Automobile Company has
implemented an effective integrated marketing communication plan (Percy, 2014). This
company introduces different promotional campaign for its different products. Recently, Holden
has introduced a new product i.e. Commodore Model with “For Sure” campaign through The
Monkeys agency. The company launched Holden Commodore as most iconic brand of Australia
and it is rich with remarkable designs and innovation. Following the current end to domestic
manufacturing by Holden, this new campaign seeks to remind the motorists of organization’s
relevance in Australian market. This “For Sure” campaign includes the series of branded films,
with the running times of seven, 30 and 60 seconds (Meikle, 2018).
For advertising its products and approaching the targeted segments, Holden Automobile
Company is using various IMC tools and modes. These tools and media assist the organization to
grab the attention of Australian people (Ryan, 2016). IMC tools and media used by Holden
Automobiles are given below:
Advertising

MARKETING FUNDAMENTALS 10
Advertising is one of the most important tools that are used by Holden Automobile Company.
This company has implemented the above mentioned campaign and it is featured across the
broadcasting, print, digital and social media channels. It assists the organization to reach the
Australian families (Assaf, Josiassen, Mattila & Cvelbar, 2015). The company is promoting and
advertising its products to customers through below-given modes:
Traditional and Broadcasting Media
Traditional and broadcasting media is the most significant mode that is used by Holden
Company to communicate its brand message to targeted customers. Under this mode, it promotes
its automobile vehicles by using various platforms such as radio and television. It gives
commercial advertisement on television. The people, who do not use internet and social media
sites, they can be approached through this mode. In its commercial advertisement, the company
mentions the innovative features of their cars so that they can create a positive attitude towards
company’s products. It is the most attractive way to entice people towards company’s products
(Mihart, 2015).
Print Media
Print media is also an effective way to advertise the products to targeted audiences. Under this,
the company aims to increase its brand presence among both urban and rural areas’ people in
Australia. To attract Australian population, the company gives advertisement in newspapers,
magazines, billboards and posters. It gives the ads in the newspapers which are most distributed
on both local and international levels. This IMC tool assists Holden Automobiles to reach the
largest population of country as most of the people read newspapers and magazines.
Additionally, it displays the offers and discounts in an attractive manner so that it can grab the
attention of targeted customers like middle class people. The company has developed its brand
message very creatively so that it can affect the customers’ perception positively (Williams,
2016).
Online Media
As mentioned above, youth and professional people cover a major part of its target market so
company is focusing on promoting its products on social networking sites like Facebook,

MARKETING FUNDAMENTALS 11
Instagram, Youtube, Twitter etc. The company considers this mode as most efficient way to
promote its vehicles. Young generation is actively using internet and social media sites so it is
the best way to approach these people. The company has created a page on social media sites
where it posts its pictures, videos and discounted offers (Luttrell, 2016). This mode can help
Holden Automobiles to understand the response of customers towards its vehicles.
Events and Sponsorships
Holden Automobile Company is a successful subsidiary of General Motors so it is also an active
participant in many sports and other events to create brand awareness. The company has
sponsored various events like World Touring Car Championship, Supercars Championship, and
NASCAR etc. Through this, Holden Automobile Company is able to target the people who have
interest in sports and championships (The Conversation, 2014).
In this way, Holden Automobile Company is approaching its target market and affecting their
purchasing decision positively.
Conclusion
In the limelight of above discussion, it can be concluded that Holden Automobile Company is
operating its business operations successfully. This company offers different automobile
products, parts and automotive components. The above report found that Australia offers a
positive external environment to the business of Holden Company. It confronts the challenges of
regulations and concern of customers related to the automobile emissions. Additionally, it
includes various internal and external factors which can affect the customers’ choice Holden’s
automobiles. Furthermore, the organization is using various IMC tools to attract more customers
and create a positive attitude towards Holden Automobiles. In the future, the company should
focus on its marketing and pricing strategies so that it can increase its customer base and
revenues in Australian automobile industry. Additionally, it will be able to gain more
competitive advantage over its competitors in the industry.

MARKETING FUNDAMENTALS 12
References
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improve sales performance?. International Journal of Hospitality Management, 48, 161-
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Australian Bureau of Statistics. (2018). Motor Vehicle Census, Australia, Retrieved from
http://www.abs.gov.au/ausstats/abs@.nsf/mf/9309.0
Azadfar, E., Sreeram, V., & Harries, D. (2015). The investigation of the major factors
influencing plug-in electric vehicle driving patterns and charging behaviour. Renewable
and Sustainable Energy Reviews, 42, 1065-1076.
Conlon, R., & Perkins, J. (2018). Wheels and deals: The automotive industry in twentieth-
century Australia. Routledge.
Guajardo, J. A., Cohen, M. A., & Netessine, S. (2015). Service competition and product quality
in the US automobile industry. Management Science, 62(7), 1860-1877.
Holden Australia. (2018). Holden Australia - Discover New Possibilities. Retrieved from
https://www.holden.com.au/
Law, C. M. (2017). Restructuring the global automobile industry. Routledge.
Lin, C., & Lekhawipat, W. (2014). Factors affecting online repurchase intention. Industrial
Management & Data Systems, 114(4), 597-611.
Litman, T., 2017. Autonomous vehicle implementation predictions. Victoria Transport Policy
Institute.
Luttrell, R. (2016). Social Media: How to Engage, Share, and Connect, Rowman & Littlefield
Meikle, L. (2018). Holden Unveils New Commodore With ‘For Sure’ Campaign Via The
Monkeys. Retrieved from http://www.bandt.com.au/advertising/holden-unveils-new-
commodore-sure-campaign-via-monkeys

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Mihart, C. (2015). Impact of Integrated Marketing Communication on Consumer Behaviour:
Effects on Consumer Decision – Making Process. International Journal of Marketing
Studies.
Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A study of factors affecting on
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Business and Management, 7, (21) 78-91.
Packham, C. (2017). Australian car manufacturing ends as GM Holden closes plant. Retrieved
from https://www.reuters.com/article/us-holden-australia-manufacturing/australian-car-
manufacturing-ends-as-gm-holden-closes-plant-idUSKBN1CP0JB
Percy, L. (2014). Strategic Integrated Marketing Communications. UK: Routledge Publications.
Peteraf, M., Gamble, J., & Thompson Jr, A., (2014). Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Smith, G., 2015. Autonomous vehicle technology. Journal of the Australasian College of Road
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The Conversation. (2014). Holden’s issue advertising campaign misses the mark. Retrieved from
https://theconversation.com/holdens-issue-advertising-campaign-misses-the-mark-21747
Thompson, J.L. & Martin, F. (2010). Strategic Management: Awareness & Change. Cengage
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Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management
and business policy. pearson.

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Williams, A. (2016). Holden CMO reveals 5 brand strategies it's using to engage modern
consumers. Retrieved from https://www.cmo.com.au/article/593135/holden-cmo-reveals-
5-brand-strategies-it-using-engage-modern-consumers/