Positioning and Mix Development for ACE Automotive Group Australia

Positioning and Mix Development 1
Positioning and Mix Development for ACE Automotive Group Australia
The Australian ACE Automotive Group has developed an electric vehicle, the ACE
Cargo van. The firm must identify the most appropriate market segments and plan an effective
positioning and marketing strategies to achieve success in product positioning. This product is
ideal for both businesses and final consumers, which means that ACE should have target niches
in the B2B and B2C segments.
B2B Positioning: Use of Promotional Strategy
For the B2B, the focus customers should be the Courier Service Companies, who can
benefit significantly from the high efficiency of the ACE Cargo van. The firm should apply the
promotional strategy in the 4P's marketing mix to reach the B2B buyers since this niche is quite
complex in decision making and requires intensive convincing (Kotler, P. & Pfoertsch, W.
2006). The psychological concepts that influence the buying behavior, in this case, include buyer
decision-making processes, customer motivation, and customer knowledge and learning.

Positioning and Mix Development 2
Buyer Decision Making Process and Models
The decision-making process is more complicated for B2B as compared to B2C niches.
For instance, to purchase a delivery vehicle, such as ACE Cargo, a firm may require the input of
different players, including technical and procurement experts, production managers, board
members, and safety and health consultants. Each of these parties may have their priorities and
interests, both apparent and hidden (Hutt, M. D. & Speh, T. W. 2010). As a result, it may take
considerably long time for such a company to decide to change from one brand to another, and
the marketer needs to employ more efforts and resources to convince them to buy the product
being offered. Therefore, it is imperative that a company uses the promotional strategy to market
its products to such a customer, with the focus being on demonstrating how the offer satisfies the
interests of the business sufficiently (Hutt, M. D. & Speh, T. W. 2010). The needs may include
minimizing the percentage of the budget that will be spent on the new product, expected strategic
importance, which defines the ability of the product to continue supporting supposed operations
for long without having to go for an alternative. It should also meet the desires of the customers,
since, in a B2B niche, the buyer is interested in how the purchased item will be received by the
final consumer.
Therefore, ACE should use promotion strategy to communicate the advantages of ACE
Cargo to its B2B target customers, which include courier firms. An effective promotional
approach entails the use of a clear message relayed to a specific audience through the most
effective channels. The information that should be passed about ACE Cargo should entail the
impact of electric energy source on costs, influence on greenhouse emissions, and the relevant
specifications of the van that affect the budget, and strategic importance among other factors.
Therefore, courier companies may be more interested in the 85% estimated reduction in running

Positioning and Mix Development 3
costs for the ACE Cargo electric van as compared to gasoline-powered vehicles, as well as the
above 70% reduction in greenhouse emissions (ACE Cargo n.d.). The minimized running costs
mean that the customers would be saving on energy costs by using ACE Cargo, which would
lead to significantly low-spend. In addition, the van is environmentally friendly as indicated by
the reduced greenhouse gas emissions, thus ensuring the company meets the sustainability
demands. Moreover, the specifications of ACE Cargo should be communicated to potential
buyers: the courier can benefit from the driving range of up to 200km per charge, acceleration of
0 to 50km/her in less than 7 seconds, and a maximum speed of 100km/h (ACE Cargo n.d.).
These details mean that a firm can be transporting parcels to diverse destinations at a relatively
high speed before recharging.
The best promotional channels for ACE Cargo would include advertising on radio,
television, and social media, where the key messages of ACE Cargo are communicated.
Additionally, the firm can use personal selling using salespeople, would help to reach new
customers and retain existing ones through customer relations (Lunn, J. A. 2001; Adler, L.
2001). Moreover, the ACE can employ sales promotion strategies, such as giving incentives to
buyers, establishing loyalty programs, and participating in trade shows to exhibit the model and
its specifications.
Customer Attitude
Considering the fact that that the customer here is the private and the public sectors, and
due to this they will be having a kind a product that can serve their needs of meeting the short
term of needs of transporting cargo within shorter distances. It is important to mention that the
public or the government sector will be more than a willing to take into account of reducing

Positioning and Mix Development 4
vehicular emission and at the same time meeting the needs of short route transport of cargo
(Shende 2014).
Perception and Attention Gates
This case is similar to the behaviour which play a role in buying products from a
company that are relatively new in the market. Their performance and the ability of the ACE
Cargo will come to test because it is a relatively new product. The only one aspect that will be
holding on the fact is the usability and the utility in the long run (Endo and Roque 2017).
Customer Motivation
B2B customers are motivated differently from the B2C buyers since the former must
consider both the company interests and those of the final consumer. For instance, the couriers,
who are the target clients of ACE group in the B2B niche, need to take into account the benefits
of the ACE Cargo van to the success of the business as well as to the needs of their customers.
Therefore, a firm needs to understand the key motivating factors for the target market, which
should inform the chosen marketing mix (Lunn, J. A. 2001). Different elements influence the
buying decisions of a firm, including response, service, quality, time, and price. Response refers
to the maintained focus on customers to identify their changing needs and fulfill them (Sheth, J.
N. 2001). In this regard, the ACE group should be aware of the changing interests of courier
companies, which are affected by their specific customers. In addition, the company should
provide service that offers a satisfying experience for both the courier and the final consumer.
This requirement is met by the van's unique specifications, which include high energy efficiency,
environmental sustainability, and considerably high speed, which ensures timely delivery of
parcels. Moreover, the excellent service of the product should be coupled with dependable time
scales, which refer to the product's durability. In this regard, buyers may decide to purchase ACE