This report discusses the launch of a new luxury 4x4 for Lamborghini in UAE using the SOSTAC framework. It covers the market trends, communication strategies, PEST factors, marketing objectives, SMART objectives, AIDA model, strategy, IMC challenges, 3P's of strategy, communication plan, and action plan.
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Running head: PROJECT MANAGEMENT Integrated marketing communications Name of the student Name of the university Author Note:
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2 PROJECT MANAGEMENT Table of Contents Introduction......................................................................................................................................4 Situation Analysis............................................................................................................................5 Market Trends..............................................................................................................................5 Current communication strategies and performance...................................................................5 PEST factors................................................................................................................................6 Marketing Objectives.......................................................................................................................7 SMART Objectives.....................................................................................................................7 AIDA Model................................................................................................................................8 Strategy............................................................................................................................................9 IMC Challenge.............................................................................................................................9 3P’s of strategy............................................................................................................................9 Tactics- Communication Plan........................................................................................................10 Objectives..................................................................................................................................10 Promotional Tool Selection.......................................................................................................10 Creative Positioning and message.............................................................................................11 Action Plan....................................................................................................................................11 Implementation of the Plan........................................................................................................11 Project Management......................................................................................................................12
3 PROJECT MANAGEMENT Critical Path...............................................................................................................................12 Figure No 1: Critical Path Analysis...........................................................................................12 Timeline.....................................................................................................................................12 Table No 1: Timeline Table.......................................................................................................13 Gantt chart.................................................................................................................................13 Figure No 2: Gantt chart............................................................................................................13 Control...........................................................................................................................................14 Identification of Resources and Budget.....................................................................................14 Table No 2: Budget Table..........................................................................................................14 Project Control...........................................................................................................................15 Conclusion.....................................................................................................................................15 References......................................................................................................................................16
4 PROJECT MANAGEMENT Introduction The following report is based on the launching of a new product or service (luxury 4x4) for Lamborghini based in United Arab Emirates.The UAE is a federation of seven different Emirates in the Persian Gulf. The capital and the second largest city of the UAE, the Abu Dhabi is presently the center of the country’s political, industrial and cultural business activities. The political system of the UAE is based on the 1971 constitution and is composed of a number of different kinds of interrelated governing bodies. The automobile industry of the country took a rough turn during the global economic crisis of 2008, but gradually took to its original shape after some serious reconstructing reforms by the UAE government. The economic affluence of the country due to the presence of a stable economy which has been because of the presence of a large scale oil and natural gas reserve has helped it to become a great market for the large scale global automobile manufacturers. The report has highlighted the launch of the new Lamborghini range using the SOSTAC framework. The new model will once again be launched by the management of the Al-Jazri motors that has been the sole importer of Lamborghini for years now and has been serving the UAE customers for s long time. The new luxuryAventador S and the Huracan Performantèmodels will be launched by the company in a few days(dubai.lamborghini/en 2019). The SOSTAC model has been used to identify the best suited communication strategy that will be fit for the launch of the vehicle in UAE(dubai.lamborghini/en 2019). The SOSTAC Model will analyze the situation analysis, marketing objectives, strategy, tactical challenges, Action Plan as well as the control procedures.
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5 PROJECT MANAGEMENT Situation Analysis Market Trends The market trends of the organization helps the management of the business to get a clear idea about the different kinds of the major trends related to the company and its variety of products. Supercar manufacturer Automobili Lamborghini witnessed a slow interest from the Middle East and Africa region. The deliveries fell to around 25% in the year 2017 compared to that of the previous year in 2016(dubai.lamborghini/en 2019). There were only 94 deliveries in the year 2017 compared to the 125 units delivered in the year 2016. The diminishing sales figure is surely a cause of great concern for the management of the company. The news was not as refreshing for the company as they opened the largest global showroom in Dubai just a few months back. However market analysts as well as the marketing experts of the company suggested that the launch of the new models, Aventador S and the Huracan Performantè will be helpful for the company as the company will be making a substantial and healthy amount of profit(dubai.lamborghini/en 2019). The market trends suggest that the company has to rely on the launch of the new models to make some profit in UAE. Current communication strategies and performance The Communication strategy is one of the most integral parts of the business operations of Lamborghini in UAE. The major implications of the organization were therefore meant to be the most important element in the business. According to, the study ofAhmed (2017)the planned marketing communication of Lamborghini in UAE incorporates three key elements. This includes the likes of the tools, media and messages. The major communication tools are namely advertising, sales promotion, public relations, direct marketing, personal selling and the different kind of the value added services provided by the management of the company to the
6 PROJECT MANAGEMENT service users. According to,Nguyen (2019)the messages provided by the management of the company are primarily informative and provide the exact and transparent details of the price, specifications, advantages, comparisons, engagement, fuel capacity and other detailed features of the cars that are to be launched. The company seldom uses traditional media sources to communicate about its products. As because Lamborghini is based on the Niche market strategy, it prefers to communicate with its range of targeted customers in a more private and precise manner. PEST factors The PEST Analysis will help the organization to gain an external insight of the business organization. a.Political –Political Impact forms an important part in the growth of the Lamborghini market in UAE. Though UAE is a politically stable country, the presence of some strict rulesand policiesfor thesupercarsemittingharmfulemissions(Kim2016). The company thus hs to maintain some UAE specific standards for the cars in order to attain the minimum requirements to operate the cars in UAE. b.Economical-UAE is an economically stable country and the presence of a huge number of potential customers is useful for the company to ensure their success accordingly (Ahmed 2017). The economical freedom of the customers helps the company to sell a hefty number of cars annually in the country. c.Social-To own a Lamborghini is one of the most prestigious in the society. The cars symbolize power, elegance and respect among the people in the society. Thus the cars of the company have a great range of social capability to change the social status of an individual in the country.
7 PROJECT MANAGEMENT d.Technological-The technological advances have been well accepted by the management ofthecompanyandhavebeenincorporatedaccordinglyinthebusiness.The incorporation of the technologies in the cars has helped the company to get the tag of one of the best supercar manufacturers of the globe. Marketing Objectives SMART Objectives The marketing objectives of the UAE management of Lamborghini has selected and fixed its strategies by means of incorporating the SMART strategies that has been helpful for the business organization to develop the communication strategies accordingly. ï‚·Specific-The management of Lamborghini has set out a specific target of selling a number of new vehicles annually in UAE(Kim 2016). The number set out is specific and the company analyzes their performance based on this specific number. ï‚·Measurable-The maintenance of numbers are essential for keeping a track of the marketing and sales of the company. The UAE management of Lamborghini has been providedaspecificchartformeasuringthesalesandtheimpactofmarketing accordingly. ï‚·Achievable-Lamborghini UAE has ensured that the goals set are realistic and achievable (BarnettandMahony2016).Themanagementhasnotburdenedthemselveswith unrealistic annual targets which help them to work in a free and easy manner. ï‚·Realistic-As mentioned earlier, the goals of the company are quite realistic as because they have been targeted to sell a specific number of new products to the targeted segment. Apart from the realism of the targeted sales figures, the way to approach the niche
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8 PROJECT MANAGEMENT customers must also be realistic in order to ensure the success of Aventador S and the Huracan Performantè in UAE. Timely-The timely performance of the organization must be addressed in a proper manner to ensure the success of the business accordingly. The maintenance of a proper time schedule is helpful for the success of the new models in the UAE. AIDA Model The AIDA model is commonly used in digital marketing. The digital marketing of the company will be to ensure the uniqueness in marketing of Aventador S and the Huracan Performantè in UAE(dubai.lamborghini/en 2019). The major elements of the following model ad its implementation process is as follows; a.Attention-The very first step of advertising is used by the management to consider the attraction of the customers accordingly. The Aventador S and the Huracan Performantè models could be launched in the social media platforms by promoting a teaser before their actual launch. b.Interest-According to,Derval (2018)the creation of a teaser could be helpful for the organization to generate actual interest for the new models of the cars to be launched in UAE. The teaser can be made attractive and can be made more realistic with the promotion of the vehicles in the most unique manner. c.Desire-The niche marketing strategies will see the marketing team to ensure the success of the business by means of the interest created on the product. The niche market will mostly include the likes of the influential and young entrepreneurs who have the capability and the wish to buy the new models.
9 PROJECT MANAGEMENT d.Action-Lastly the ultimate goal of the marketing team of the company will be to hand over the keys of the cars to the targeted customers(El Sawaf 2015). The consumers can ensure the success of the marketing team by means of ensuring success. Strategy IMC Challenge Some of the major challenges to be faced by the management of Lamborghini in UAE over the launch of two of their models are as follows; a.Generating Interest-The generation of interest for the prospective buyers can be a source of problem as because it will be difficult to generate interest for the cars because of the super expensive price tag. b.Securing a proper Budget-The securing of a proper budget is often not possible for the company(Schafferer 2017). There might be some additions in the last moment which has to be included in the list at the very last moment to ensure smoothness. c.Managementof the Website-The websitemanagementteamhasto faceserious challenges in order to ensure success. The proper and effective website management is key to the success of the company. d.Targeting the customers-The customers who will be targeted might not be interested in the cars and the company has to bear the risk of any form of loss from the sales of the new cars. 3P’s of strategy The 3P’s of strategy to be involved in the marketing of Aventador S and the Huracan Performantè are as follows;
10 PROJECT MANAGEMENT a.Push-The push strategy will involve the marketing of the new brands to the potential customers without any possible forms of advertising. The innovation of the new products will be marketed to the customers in this phase. b.Pull-The pull strategy will be used by Lamborghini to attract the young entrepreneurs and the rich sheiks of UAE. The study of,Ho (2018)has estimated that the company can introduce campaigns that will include contests, free samples, social activities etc. In pull strategy if organization adds advertisement with the campaign then the whole costing becomes significantly higher. c.Profile-The management of the company will search for sponsors, public relationship and some corporate advertising in order to ensure the success of the business accordingly. Tactics- Communication Plan Objectives The objectives of the management of Lamborghini, UAE are as follows; a.To promote the Aventador S and the Huracan Performantè in the most unique process b.To reach out to the potential customers of Aventador S and the Huracan Performantè c.To ensure meeting sales target for Aventador S and the Huracan Performantè Promotional Tool Selection The management of Lamborghini will at first release a teaser in the social media channels to generate interest among the people who can be the potential buyers of the new models. The teaser will be followed by the selection of the social media launch of the new models(Ho 2018). The company is in talks with a prominent global sportsperson to ensure the success of the brand in a unique manner.
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11 PROJECT MANAGEMENT Timings The teaser will be launched before 4 months from the date of the launch of the models in the market. The main launch will be followed by a number of new updated advertisements in social media channels that will help to attract people towards the new models of Lamborghini. Creative Positioning and message The creative positioning strategy has to ensure the success of the business in a proper and effective manner(Jafari Sadeghi and Sadeghi 2017). The company has to fight with the likes of other super luxury brands like Jaguar, Land Rover, Ferrari, Bugati and many more as such to attain a competitive advantage in the market. Action Plan Implementation of the Plan The plan will be implemented by the marketing and sales team of the UAE management of Lamborghini(dubai.lamborghini/en 2019). A fixed time schedule along with an annual sales target of 95 vehicles can be said to be quite reasonable and achievable. Overshooting the target can also lead to healthy incentives for the stakeholders involved in the marketing and promotion of Aventador S and the Huracan Performantè.
12 PROJECT MANAGEMENT Project Management Critical Path Figure No 1: Critical Path Analysis Source: (As created by the Author) Timeline Task NameDurationStartFinish Project Marketing Campaign Lamborghini UAE 163 daysMon 5/13/19 Wed 12/25/19 Meeting with the stakeholders of Lamborghini in UAE 5 daysMon 5/13/19 Fri 5/17/19 Marketing and Promotional Plan proposal 2 daysMon 5/20/19 Tue 5/21/19 Analysis of the proposed plan 10 daysWed 5/22/19 Tue 6/4/19 Selection of the targeted customers 15 daysWed 6/5/19 Tue 6/25/19 Analysis of the impact of the plan on the targeted customers 10 daysWed 6/26/19 Tue 7/9/19
13 PROJECT MANAGEMENT Conducting a survey to analyze the impact of the proposed plan on the targeted customers 30 daysWed 7/10/19 Tue 8/20/19 Submission of the report 5 daysWed 8/21/19 Tue 8/27/19 Approval of the plan 1 dayWed 8/28/19 Wed 8/28/19 Implementation of the plan 45 daysThu 8/29/19 Wed 10/30/19 Monitoring of the plan 40 daysThu 10/31/19 Wed 12/25/19 Table No 1: Timeline Table Source: (As created by the Author) Gantt chart Figure No 2: Gantt chart Source: (As created by the Author)
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14 PROJECT MANAGEMENT Control Identification of Resources and Budget The resources that will be needed for the implementation of the new plan varies from human resources to different kinds of tangible as well as intangible resources. The resources that will be first needed are the human resources. The human resources of the company will be essential for the structuring, selecting and implementation of the business plan and the marketing campaign. The next need in fray which is perhaps the primary need of the campaign is the financial backup. A strong financial backup by the management of the company is highly essential for the success of the organization. The intangible resource of the plan is the sharp mind of the individuals who will be involved in the project. An estimated budget of the marketing campaign has been provided below; Line ItemCost ï‚·Advertisement ï‚·$4500 ï‚·Teaser Launch ï‚·$6500 ï‚·Trailer Launch ï‚·$8500 ï‚·Social Media Expenses ï‚·$3500 ï‚·Test Drives ï‚·$2000 ï‚·Photo Shoot ï‚·$1500 ï‚·Mobile Advertisements ï‚·$1500 ï‚·Pre Launch Clearance ï‚·$3500 ï‚·Stakeholder share ï‚·$2500 TOTAL$34000 Table No 2: Budget Table Source: (As created by the Author)
15 PROJECT MANAGEMENT Project Control The project will be totally controlled by the team of experts selected from the marketing and sales team of Lamborghini in UAE. The project will be controlled and completed as per the given schedule of 163 days. Conclusion The following report has been one of the best examples of a marketing campaign for a super luxury brand in UAE. The highlight of the total report can thus be summarized in a proper and effective manner. The marketing campaigning of a product especially a super luxury one with niche characteristics has to be completed using the utmost precision to ensure a flawless and efficient marketing for the products. The informative content of the report will surely act as a source of great knowledge for the readers to research on their own.
16 PROJECT MANAGEMENT References Ahmed, G., 2017. Sovereign Marketing: A New Strategy of Marketing. Barnett, C. and Mahony, N., 2016. Marketing practices and the reconfiguration of public action.Policy & Politics,44(3), pp.367-382. Derval, D., 2018. Expanding Luxury Brands Internationally. InDesigning Luxury Brands(pp. 105-136). Springer, Cham. Dubai.lamborghini.(2019).Lamborghini - DealerWebsite- Dubai. [online]Availableat: https://www.dubai.lamborghini/en [Accessed 12 May 2019]. El Sawaf, R.J.O., 2015. New media marketing challenges in a multicultural environment: luxury fashion brands in Dubai.Theses, Dissertations, and Projects. Ho, T., 2018. Ambition and Ethics in Marketing: When ambition affects companies' ethical behavior. Jafari, M., Sadeghi, H. and Sadeghi, S., 2017. Analysis Of The Mental Image Of Iranian Consumers Of Foreign Luxury And Widely Used Goods From Non-Marketing Symbols Of Seven Countries Of Origin.Advances in Social Sciences Research Journal,4(7). Kim, R.Y.J., Samsung ElectronicsCo Ltd,2016.Displayscreen orportionthereofwith graphical user interface. U.S. Patent Application 29/488,490. Nguyen, P.L., 2019. The key principles of successful branding.
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17 PROJECT MANAGEMENT Schafferer, C., 2017. The Globalization of Political Marketing: An Introduction. InElection Campaigning in East and Southeast Asia(pp. 11-20). Routledge.