Marketing Strategy for Alcraft Motor Company

This report analyzes the marketing strategy of Alcraft Motor Company, including a situational analysis, evaluation of threats, competitive advantage, and existing marketing strategy.

Marketing strategy

EXECUTIVE SUMMARY
The report of marketing strategy is based on Alcraft Motor Company which manufactures
and markets electronic car in London, UK. Marketing strategy is forward approach of company
with fundamental objective of attaining sustainable advantages in competition through
understanding about wants of customers. The report analyses situation of business environment
in which the firm operates through PESTLE analysis, threats of Brexit by using SWOT analysis
and current marketing strategy. It also includes certain recommendation of marketing strategies
as per application of marketing mix to the company.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction of company .............................................................................................................1
Situational analysis (PESTLE Analysis).....................................................................................2
Evaluation of threat of epidemic or Brexit on company (SWOT Analysis)................................4
Analysing competitive advantage (USP).....................................................................................5
Evaluation of existing marketing strategy...................................................................................6
PART 2............................................................................................................................................6
Analysing market STP.................................................................................................................6
Recommendation of objectives and goals for the entity (SMART)............................................8
Recommending marketing strategies that are based on application of marketing mix to the
brand............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing strategy refers to plan of action that is devised for recalling values among
potential customers for commodities as well as enhancing sales (Anna, Cahyadi and Yakin,
2018). It is ongoing activity to promote unique selling proposition of merchandise in market and
maximising organisational profitability in long run. It deals with building brand image,
increasing product sales and maintaining relationships with target population. For gaining
information about marketing strategy, Alcraft Motor Company is selected. It has been
established by David Alcraft on the path to electric vehicle highway. The company emphasis on
manufacturing and developing unique low carbon, electric vehicles and technologies. Its
headquarters are located at Towcester, UK.
The report is prepared in two parts. Part 1 includes overview of company, situational
analysis, threats of Brexit or other epidemic on the business, competitive benefits and current
marketing strategy. On other hand, Part 2 analyses segmentation, target and positioning, goals as
well as objectives and recommendation of marketing strategies on the brand.
PART 1
Introduction of company
Alcraft Motor Company is producer of new and electrified mobility landscape. It is
based on silverstone innovation cluster to develop flexible platform of an electric vehicle that
underpins range of different automotive products for different customers, from outright electric
car to dynamic but luxurious models that have potentials to carry four people along with their
luggage. The firm have wide range of models for target population that wants vehicles to be
bespoke but affordable, sustainable but exciting and traditionally crafted (Alcraft Motor
Company, 2020). The mission of the organisation is to apply visceral along with liberating thrill
of electrified dicing experience to world leadership in motor sport derived dynamic, high end and
low volume vehicles.
Situational analysis (PESTLE Analysis)
Situational analysis is a method that evaluates conditions and factors that impact the
business. It involves several methods to analyse situations pertaining in business environment. In
context to Alcraft Motor Company, conducting situational analysis determines health of venture.
It serves essential tool to determine factors and elements that impacts on health and well being of
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firm. To conduct situational analysis, one of method is PESTLE Analysis. It is an environmental
scanning technique which provides insights about external circumstances of business from
distinct angles. It is used by marketers of entity to analyse along with monitor macro
environmental factors which have impacts on performance and strategies of business concerns
(Dzulkarnain, Ariqoh and Maulida, 2019). Elements or factors of the tool are as analysed in
context to Alcraft Motor Company:
Political: The factor is about how and at what extent government interferes within certain
industry. All the influences of political system are classified in the factor. It involves foreign
trade policy, trade restrictions, political stability and corruption. In UK, there is stable and
supportive political system that provides diverse opportunities to companies to operate and gain
success in the country. The government have taken stances or initiatives to improve development
of hybrid engines as well as electric engines that impacts favourably on Alcraft Motor Company
to produce or manufacture electric cars for customers. By using incentives that are offered by
government, managers of the automotive have improves its financial performances and
strengthened its operations. Furthermore, it is also analysed that removal of trade barriers helps
the firm to make sales in other nations and making sustained positions in overseas market
(Eneizan, Wahab, and Abd Wahab, 2016).
Economic: It have epochal impacts on the ways business does operations to make profits.
Economic factors determines impacts on performance of particular economy. Economic growth,
consumer disposable income, unemployment rates, economic trends, monetary policies,
international trade and labour costs are some economic factors which impacts on organisation.
UK is among most globalised economy and has strong economic positions in relation to other
nations. In the economy, tax rates as well as taxation policies changes as per changes in market
that impacts directly on companies, operating within it (Fauziah, and Mulyana, 2018). At same
time, there are certain tax incentives that are provided to manufacturers of electric car that helps
administrators of Alcraft Motor Company to gain benefits of the incentive and optimally utilise
them. Moreover, availability of Zero Emission Vehicles credits in UK is an external economic
element that have direct implications for Alcraft Motor Company as these are tradable regulatory
credits which benefits the company.
Social: It represents customs, demographic qualities, values and norms of people in
which firm operates. It covers population trends including income distribution, health
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consciousness, cultural barriers, population growth rate, lifestyle attitudes and safety emphasis.
The factors assist marketers to generate information related to wants, choices and needs of
customers (Genoveva and Siam, 2017). In UK, people love the innovation of electric car as it is
eco-friendly and eliminates usage of huge fuels as traditional vehicles require. Alcraft Motor
Company is environmentally sustainable. It perform amazingly to build and maintain its place in
minds of people through introducing an electronic car that is Alcraft GT. It is designed and
manufactured as per preferences of customers. It has elegant simplicity and structural
components of vehicle are visible externally. By launching the electronic car, Alcraft Motor
Company have build a better image in automotive industry and emphasis towards transition of
the brand towards greener, more fuel effective, better and sustainable future. It is good for
society as if plans of the automotive entity are successful then it can aids to globe to save billions
which are spent on fossil fuels.
Technological: It pertains innovation in technology which impacts or influences
operations and performance of company, industry addition to market. It covers innovation level,
technology level, level of technological awareness and related incentives which a market posses.
UK is more economically developed nation that have good access towards technology (Han,
2016). In the nation, quality of innovation skills, internal competition for stimulating growth and
experts in IT exists which influences growth of Alcraft Motor Company globally. Technology
allows the automotive to become fuel efficiency as well as paves its way towards future usability
together with perseverance. Its cars are designed and manufactured to adopt newer techniques.
The company is great spot to set automation together with Artificial Intelligence into its
electronic and other vehicles.
Legal: Law is significant force which impacts companies all over the world. There are
multiple types of legislations that impacts drastically on entity. UK is the country that have laws
which are friendly for sustainable brands (Hibino, Noguchi and Plenert, 2017). As Alcraft Motor
Company is expanding into overseas market place, it needs to keep its whole team updates about
domestic and international legislations so that all of its objectives are accomplished without any
barriers. It makes working and operations easier for the business. However, there are multiple
laws concerned with supply chain as well as labour which impacts and causes high operational
costs to Alcraft Motor Company.
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Environmental: The factor is growing in importance within business context because of
increasing scarcity of pollution targets, raw materials, carbon footprints target and many more set
by political authorities. In UK, brands have been investing to protect the environment (Koo, Kim
and Kim, 2016). In case with Alcraft Motor Company, it uses electricity more than other fuels
for manufacturing its vehicles. Vehicles of the company abide by multiple environmental
regulations which creates good reputation of it in market.
Evaluation of threat of epidemic or Brexit on company (SWOT Analysis)
In a country, there are various epidemic situations that impacts widely on organisations.
For example, Brexit was one of decision taken by government of UK to withdrawal from or
leave European Unions. It includes all things from immigration, security, trade, access and
aviation. It also covered areas such as citizens' rights, financial settlement of UK and many more.
For evaluating threats of Brexit, managers of Alcraft Motor Company have used SWOT analysis.
It is a technique for analysing internal environment and evaluating potential impacts of some
decisions on the company. SWOT analysis of Alcraft Motor Company is as follows:
Strengths:
 Alcraft Motor Company have build
strong presence within UK as after
Brexit, it have transformed the ways of
travelling through delivering innovative
ideas as well as converting them into
reality. There is no other business like
Alcraft Motor Company which is
synonym of electric cars.
 The entity have controlled its
production process strongly that other
manufacturers have failed to do in
automotive industry (Kumar, Rahman
and Kazmi, 2016).
 Government of UK supports operations
of the electric car manufacturer which
resulted in gaining huge benefits in
Weaknesses:
 Alcraft Motor Company faces situation
of low profitability as compared to
volume of sales.
 The plant or factory of the automotive
firm is located at single place that is
Towcester, UK which only have
capacity to manufacture and store
limited vehicles.
 It makes specialised vehicles that are
essential for business environment due
to its sustainability angle. The vehicles
are highly futuristic as well as many of
customers are not sure to invest in the
techniques that are expensive also.
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industrial rivalry.
Opportunities:
 One of opportunity which can be
adopted by Alcraft Motor Company is
expanding into developing market.
 Another opportunity available to the
firm is increasing capabilities of supply
chain for meeting new demand addition
to sales across various nations that are
close of UK.
Threats:
 Fierce competition from big established
organisations in the automotive
industry is potential threat for Alcraft
Motor Company.
 Regulations and legislations of
different government or countries is
other threat for the company to sell its
cars (Liang and Nguyen, 2018).
Analysing competitive advantage (USP)
Competitive advantage is the benefit that an organisation gains over competitors through
offering greater values in market. It is the element which allows businesses to manufacture
products better as well as cheaply that its competing firms. It allows productive enterprise to
generate superior margins as well as more sales compared to its competitors (Mekonnen, 2018).
Alcraft Motor Company is a British business that manufactures and promotes electronic and
other automotive vehicles according to needs of customers. The unique selling proposition that
provides competitive advantage to Alcraft Motor Company are as analysed:
Alcraft Motor Company brings innovation: When people drives a Alcraft Motor
Company, there conception about what a car is irrevocably shaken. The company gives feeling to
customers like they have got a future taste. It is not just that the company is electric but also
brings innovation in its cars. Alcraft Motor Company allows customers to purchase a car on
Internet which saves lot of time as well as money through skipping middleman. It reduces costs
related to distribution along with provides customers greater convenience.
Cultivates brand loyalty: Alcraft Motor Company do not have huge budget like other
automotive manufactures. Instead, it relies on brand advocates to sell its cars. There are billions
of organisational fans lining up outside dealerships prior the cars are officially unveiled (Oztekin,
2018). The incredible pre-order facility, emotional connection with customers, taking feedbacks
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seriously and so on are some of unique selling proposition of Alcraft Motor Company which
provides competitive edge to the entity against rivals.
Evaluation of existing marketing strategy
Marketing strategy is organisational course of action for promoting its merchandise in
market. It provides blueprint to company for achieving all its marketing goals. Moreover, it aids
to concentrate scare resources of firm on best possible opportunities for the purpose of increasing
sales. In case with Alcraft Motor Company, marketers uses social media marketing strategy to
connect audiences through different social media platforms for building brand, driving website
traffic addition to increasing sales. The key social media platforms that marketing department
uses in present era are Facebook, LinkedIn, Snapchat, Twitter and YouTube. These all help the
automotive business to achieve success in rivalry scenario. As per Richelieu (2016), it is
evaluated that social media marketing benefits the entity in creating more inbound traffic,
improving search engine rankings, better customer satisfaction, gaining wider marketplace
insights, reaching larger audiences and building the brand. It provides the ability to entity to
assess its performance and make necessary changes to drive valuable results. However, it is also
evaluated that social media marketing strategy opens potentials for embarrassment, spending
huge time of campaigns, negative feedbacks and low investment returns.
PART 2
Analysing market STP
Marketing STP :
A marketing STP is comprises about the segmentation, targeting and positioning is the
concept to study the overall market in terms of nature of market, target customers as well as
ranking in competitive market. By forming the STP for Alcraft Motor company as they are plan
to introduce the electronic vehicle in global competitive market.
Segmentation: According to this factor, it helps to guide about the type of market where
particular organisation can trade through their product in various segment of market. Different
market segment will provide opportunity and challenges in terms of group of cost effective that
enhance to generates the huge advantages (Ristevska-Jovanovska, 2016). The market can be
specify in three part, where Alcraft Motor company could identify their optimum market to
pursue their product to trade is :
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 Demographic: This market attributes is involve the factor of age, marital status, gender,
ethnicity, sexuality and occupation. As per the perspective of Alcraft Motor company
they can manufacture the electronic vehicle on the basis of demographic market trend
that would match the product requirement on the market basis. Geographic: According to this type of segment it allows to establish the new product as
per the location or country basis. As Alcraft Motor company, they will introduce the
product first in United Kingdom. Because the company is based from it and customer can
easily approach that.
 Psycho graphic: This trait of market segment allows the to identify the product nature
belonging in terms of value, lifestyle (Rudawska, 2019). For Alcraft Motor company,
their electronic vehicle product is tend to increase the standard of living or lifestyle.
Targeting: In this process which indicates the niche-specific market. Niche does not
belong to the customer and product. In fact, it helps to the organisation to making highlight and
approaching the customer as per their product type. Similarly, Alcraft Motor company
considered their targeted customer towards the youngster or to another ones who are obsessed
with electronics, cars and informational technology products. The company can also determine
the age factor as Alcraft Motor introducing the electronic vehicle and to utilised to those
customer who are above 25 age. It because they can maturely handle as well as properly
understand about the specification that's why company is focuses to the young peoples.
Positioning: It is the last process of STP marketing, this defines about the place. As per
the marketing terminology, the positioning of the product in market is decides the ranking or on
which place the product is stabilize in the competitive market. It also provides the information
that how the product is differ from other product in the competitive market. As per the
perspective of Alcraft Motor company, is introducing with new concept of automotive vehicle
product in electronic mode which is more demanding in today's market. This will lead to the
company in better position in automotive market as well as it helps to gain the competitive
advantages (Saif, 2016).
Recommendation of objectives and goals for the entity (SMART)
Objectives and goals provides ability to company to monitor itself along with analysing
how much progress it is making. Objectives and goals are general guidelines as well as strategies
that elaborates what the business wants to attain in future. These provides significant check
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which keeps the firm from becoming blinded by own bias. Objectives and goals encourage
proper planning, provide motivation to business people, maintains standard performances,
integrate departments and facilitate authority. In context to Alcraft Motor company,
recommended goals and objectives are as follows:
Goals and
objectives
Specific Measurable Actionable Relevant Time
Bound
Boost
social
media
traffic
goal
To boost traffic
on social media
platforms of
blogs through
increasing its
weekly
publishing
frequency from 2
to 5 a week.
15.00%
enhancement in
the goal.
The blog or
social media
traffic to be
increased by
8% when it
increases its
weekly
publishing
frequency.
Through increasing
traffic, Alcraft
Motor company
will boost brand
awareness together
with generate more
leads and give sales
wider opportunities
to close.
The time
required
is five
month to
achieve
the goal.
Becoming
leading
marketer
of well
known
electronic
car expert
Alcraft Motor
company will
become popular
and well known
marketer of
electronic car
manufacturer in
automotive
industry.
The company will
be successful
when it is asked
to speak publicly
for electronic car
and meet
consumer
satisfactions by
providing suitable
experiences.
It will be
attained
through
acquiring
public
relations
service and
launching
publicity
campaign.
By establishing
itself as leading
marketer of
popular
manufacturer, it
will reinforce its
experience in the
field and allow it to
reach more number
of customers.
It will be
achieved
within
two years.
Recommending marketing strategies that are based on application of marketing mix to the brand
Alcraft Motor Company relies more of word of mouth and social media promotions.
Marketing mix is set of tactics which are adopted by businesses for promoting the brand and its
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offerings in market. Some of the recommended marketing strategies on the basis of execution of
marketing mix to Alcraft Motor Company are as follows:
 Product: When an organisation is established to do business then it comes with unique
things to offer that are said to product. Alcraft Motor Company is popular to make
sustainable commodities, especially electronic cars. Alcraft GT is one of product of the
company that have changed perceptions of people to think towards cars (Robinson,
2017.). The company is recommended to manufacture more products like it so that it can
surprise the market and competitors with unique product features.
 Price: When product is manufactured and released in market then organisation is
required to decide price that will be acceptable between its target population or consumer
market. The negotiation value refers to price (Vilkina and Klimovets, 2019). Alcraft
Motor Company manufactures premium electronic car and for this, it is recommended to
adopt premium pricing strategy for maintaining high product quality of its premium
vehicles.
 Place: When product is released and prices are set then organisation is required to make
its commodities available for target groups. It is said to distribution or place strategy.
Purchasing car of Alcraft Motor Company is not like visiting dealership stores, listening
ponderous descriptions and getting push for making purchase decision. Alcraft Motor
Company is recommended to make presence in other marketplaces such as Dubai,
Europe and North America as all these countries provides various opportunities for
expansion.
 Promotion: Marketing tactics is incomplete without promotion as it is one of base that
generate awareness among population about company's product (Wood and Jobber,
2016). Alcraft Motor Company is recommended to adopt chatbot strategy and
relationship marketing strategy to prioritise customer services, promoting engagement,
matching social media approach to audience and automating conversations at scale.
 Physical evidence: When an organisation get down towards brass tacks, it significant for
consumers to have information about the brand they makes purchase from and interact
with in real life (Starčević and Konjikušić, 2018). It is recommended to managers of
Alcraft Motor Company that they should provide brochures as pdfs and tracking
information to customers who have purchased its electronic car.
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 People: It is important for company to hire people with distinct and effective skills. In
case with Alcraft Motor Company, it is recommended to adopt reward management
strategy, training sessions, performance management techniques and suitable recruitment
approaches to hire people from within and outside world.
 Process: It describes sequence of cations which are taken by business to deliver product
to end consumer (Xu, Hao and Han, 2017). It is recommended to Alcraft Motor
Company to improve website user experience, delivery time, method, in-store waiting
time, communication with client support and after care in its delivery processes.
CONCLUSION
As per the report, it have been concluded that an effective marketing strategy aids
business to understand consumers' preferences, promoting products, making profits and
sustaining in industry. Situational analysis develops basis of understanding of business
environment wherein the company plans to deliver its strategies. An organisation establishes
competitive edge over other brands in market with the help of its unique selling proposition as it
distinguishes the brand from others in similar industry. Market STP is wider framework which
summarises as well as simplifies entire practices to segregate, target and position the company.
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