ACE Automotive Group Australia: Positioning and Mix Development Report

This report examines the positioning and marketing mix strategies for the ACE Automotive Group's electric cargo van in Australia. The assignment focuses on identifying target market segments for the van, including B2B (courier service companies) and B2C (farmers). The report delves into the buyer decision-making processes, customer motivation, and customer knowledge and learning for each segment. For the B2B segment, it recommends a promotional strategy emphasizing the van's cost savings, environmental benefits, and specifications. For the B2C segment, the report suggests employing product strategies to appeal to farmers. The report also covers psychological factors influencing buying behavior and makes recommendations for the marketing mix, including product, price, promotion, and place, tailored to each target audience. Furthermore, the report addresses the importance of understanding customer knowledge and learning to refine marketing approaches. The provided assignment solution covers key marketing concepts to enhance the market success of ACE Automotive's electric van.

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

Positioning and Mix Development 5
Cargo vans if they are convinced that its specified benefits last for the entire durability of the
vehicle. Moreover, the courier companies must be persuaded about the quality of the vans, which
should match the prices stated. This factor increases the low-spend high strategic importance
measure.
To convince the buyers that the van offers these advantages to both the courier firm and
its customers, ACE Cargo should focus on strategic promotion approach. Besides stringent
advertising to keep communicating the advantages of the electric van over other carrier vehicles,
they should intensify personal sales activities to directly communicate with potential and existing
customers (Kotler, P. & Pfoertsch, W. 2006). Salespersons should visit buyers and detail the
benefits of ACE Cargo, including the relationship between its quality and price, as well as the
service and time scale aspects. At this level, the marketers can assess the probability of each
prospective customer to purchase the vehicle, understand their needs and concerns, and offer
answers to any questions they may have.
Customer Knowledge and Learning
Customer knowledge is a crucial factor in determining the buying behavior of B2B
customers. Garcia-Murillo and Annabi (2002) emphasize the importance of a firm to gather,
manage, and share the knowledge held by its customers, which may prove an essential
competitive tool. This concept entails finding information on what customers know about the
products on offer (including those from competitors) and using those details to plan the best
marketing strategies. In essence, the level of customers’ product knowledge should be a part of a
firm’s information database. If a company does not understand how much the buyers know about
the item it offers, the competitors, and the current market prices, it may approach sales wrongly
and fail to perform optimally. Gibbert, Leibold, and Probst (2002) explain the need to explore the

Positioning and Mix Development 6
knowledge that customers possess, which significantly affect their purchasing decisions. For
instance, patients who are well aware of their healthcare needs and available options in the
system may be more likely to make deliberate decisions to buy healthcare services from specific
providers as compared to less informed individuals. As a result, insurance companies, such as
Old Mutual, may benefit considerably from an understanding of how much knowledge their
target consumers possess (Gibbert, M. Leibold, M. & Probst, G. 2002). Similarly, ACE group
should focus on studying the amount of information that their target customers have in order to
approach its marketing activities from a more focused perspective.
Specifically, ACE should seek to understand the level of knowledge that customers have
about electric cars and the notions they have formed about the advantages and disadvantages of
the innovation. Since the target customers for ACE Cargo van in the B2B niche are courier
companies, the group should be concerned about how well the buyers comprehend the
specifications of electric vehicles and what they believe are the benefits to be gained while using
this type of van instead of the traditional gasoline-powered ones. Moreover, the firm should
investigate how the clients acquire their learning, which will help the company to develop
compelling customer knowledge management (CKM). After gaining these insights, ACE can
then focus on expanding the existing customer knowledge by creating new information
dissemination techniques in order to instill the desired opinions about ACE Cargo van in these
customers. This activity can be achieved through personal selling, where professional
salespersons communicate specific details about ACE Cargo to prospective customers. Sheth and
Parvatiyar (2001) highlight the importance of marketers in promoting the relationship between a
firm and its customers, including the strengthening of the corporate bond between the two
parties.

Positioning and Mix Development 7
B2C Positioning: Use of Product Strategy
On the other hand, the B2C target buyers are farmers, especially those who specialize in
fish, dairy, and horticultural farming. ACE should employ product strategies to appeal to
customers at the B2C niche – decision making at this level is more straightforward as compared
to B2B, and the company can win buyers by merely presenting the product as highly effective in
meeting consumer needs (Fader, P. 2012). Psychological factors influencing buying for B2C
include buyer decision-making process, customer motivation, and group and social influences.
Buyer Decision-Making Process
The buyer decision-making for B2C niche is relatively simple since it involves one or
two people in most cases. A person may not need to consult several parties when deciding to
purchase a good or service that they want. There are five stages involved when an individual is
resolving to buy something, including the recognition of a problem or a need, the search for
information, the assessment of alternatives, the purchase, and post-purchase level of satisfaction
(Khan, M. 2007). For ACE’s potential customers, the first step would entail the identification of
the need for efficient transport for their farm produce. At this step, a buyer experiences the
feeling of something missing and the need to fill the gap. Identifying when the target clientele
develops these wants is essential for any firm that seeks to position its products in the B2C niche.
For ACE, this could be during harvesting for seasonal products, but it is mostly throughout the
year for horticulture, animal husbandry, and fishing.
Secondly, information search is a critical step that ACE can take advantage of to present
its product as the most suitable. Customers are interested in knowing what types of transport
vehicles exist. At this point, buyers are quite careful to make the right decision to avoid
regretting after the actual purchase (Khan, M. 2007). ACE should ensure that the product is well

Positioning and Mix Development 8
presented in the market, including in showrooms, for any interested buyer to know of its
existence. This stage leads to the next one, which is the evaluation of alternatives. By this time,
the client is aware of the available products in the market, and they are more interested in
comparing them to make the most fulfilling choice (Khan, M. 2007). The customer may spend
quite some time before deciding on their best option of the product to meet their needs. ACE
should be ready to display its electric van as the most suitable for transporting customers’ goods,
especially the perishables. The company should emphasize on the van’s refrigerant cooling
system, especially for fish, dairy, and horticulture farmers. This specification offers a solution to
these buyers, who deal in perishable products.
If the company manages to convince the farmers to choose ACE Cargo, the decision-
making process moves to the fourth stage, which is the purchase phase. At this point, a customer
has enough knowledge about the benefits to gain from choosing the product (Khan, M. 2007). In
this case, ACE should have provided all relevant details about its van so that the prospective
buyers have all the facts to enable them to make a logical decision. As earlier stated, ACE
should focus on product strategy for its B2C niche positioning. Therefore, it should demonstrate
how the van will satisfy the needs of the customers. If they handle this part of customer
decision-making properly, the fifth step – the post-purchase satisfaction – can be assured.
Perception and attention gates
It can be said that the perception of the customers regarding a brand is of great value. It is
important to mention that the ACE EV group is a new start-up company in the electric vehicle
segment. Considering the fact that the company is relatively new, the customers at first will be
unable to have the blind faith on the company as the customer relatively do incise of companies
that have higher brand value, brand image and faith upon a brand. One thing that can be

Positioning and Mix Development 9
highlighted there is that the ACE EV group can first sell their product to the B2B segments so
that ACE EV can have a handy data that their products are actually being used by the
government institutes and private sectors. It is important to note that the ACE EV must have to
have a brand recognition so that their products become objects of faith and becomes reliable to
the general customers (Craton, Lantos and Leventhal 2017).
Customer attitude
While buying the products it can be said that the customers will be thinking about the
feasibility of having an electric vehicle. It is important mention that electric vehicle not only
helps in reducing the impact on the environment by reducing the emission from vehicles. Thus,
the first and the foremost thing that will come to their mind is by buying an electric car that will
be able to make an effective contribution towards the less emission of pollutants. Although the
products are new in the market still it will be able to tackle the mind- set of the customers that
generally happens when buying products from brands that are new in the market and are
unwilling to buy products that have not gained any customer faith (Kim et al. 2016).
Customer Motivation
B2C buyers are more emotionally driven as compared to B2B clients. As a result, the
motivation of B2C clients may vary depending on individual needs and interests. Understanding
this fact is crucial for a company that targets individuals for its products. Interacting with the
buyers can enhance the company’s understanding of their needs to know what motivates them to
make purchasing decisions (Dongmin, K. & Benbasat, I. 2009). With the right awareness level,
the firm's salespeople can build relevant rapport with individual buyers, which is crucial for a
lasting relationship. Consumer motivation refers to the factors that influence people to identify
and purchase products that satisfy their needs, interests, and desires (Dongmin, K. & Benbasat, I.

Positioning and Mix Development 10
2009). If an item fulfills these needs, the buyers can make repeat purchases. If ACE wants to win
its target customers, it should seek to be well conversant with the factors that motivate its target
customers to buy transport vehicles.
Consumer motivation is related to Maslow's hierarchy of needs, which means that there
are different levels of importance of motivational drivers. People often satisfy lower-level needs,
such as physiological and basic survival wants, before deciding to satisfy higher-level
needs(Wright, R. 2006). Therefore, ACE Group should map its potential customers to determine
those who are most likely to buy the electric van. For instance, most small scale farmers may be
more concerned with producing enough for subsistence and limited sales to meet their basic
needs, which means that any product they manage to sell can be transported using hired or public
means. Therefore, the firm should target large scale farmers who are highly motivated to acquire
their transport means. With the low-level needs, decision-making is quite easy, but high-level
interests are quite complex and require serious considerations to make the right decision (Wright,
R. 2006). For example, it may not take a farmer much effort to know which seeds to purchase,
but buying a van may involve considerable research and consultation. Therefore, potential buyers
of ACE Cargo must have satisfied most of their lower-level needs and are ready to move to high-
level fulfillment. The company should make the right efforts to educate them on the value that
the electric van can add to their farming experience. Mostly, the farmers will be motivated by the
cost reduction effect of the electric van, its speed of transporting produce to the market, and its
refrigerating system to keep goods fresh while on transit.
Group and Social Influences
The consumer buying behavior is influenced by different factors, among them being the
social groups they identify with. Whereas the individual makes the final purchasing decision, it is

Positioning and Mix Development 11
essential to note that the environment, culture, and social class affect their tendencies.
Understanding this psychology is critical for marketers and salespersons to choose the best
approaches when marketing and positioning their products (Khan, M. 2007). Social groups
influence an individual while making decisions on various aspects of their lives. Precisely, the
classes determine the values, behaviors, and lifestyles that one adopts. It is vital for a company to
understand each group’s preferences because people within such a setup may make similar
purchasing patterns. ACE should consider this factor when communicating its product to the
farmers. The company needs to understand the level of influence that a group has on an
individual’s buying behavior; it can be high or low (Khan, M. 2007). If the social impact is high,
the firm would need to ensure that all the people within that group have been convinced about
the advantages of using the electric van for their farm transport purposes. It can do so by
organizing farmer education forums, where company salespersons detail the product to the entire
group. In contrast, if the social influence is minimal, the company can approach the product
placement at an individual level. It can easily convince each farmer depending on their specific
needs and desires. In either case, the goal should be to ensure that the benefits of the product are
well communicated to the farmers so that they can choose it over the gasoline vans.
When ACE is aware of the group and social influences for each type of its target
consumers, it can tailor its product presentation strategies in a way that will ensure effective
marketing. It would be less productive to address potential buyers individually if most of them
buy according to social preferences. In such situations, the company should communicate a
similar message to all the people in the target group. If the most influential members of that
community buy, other farmers may end up placing their orders as well. In contrast, the company
would be wasting its marketing resources if it focus on marketing its van to groups in a society

Positioning and Mix Development 12
where each farmer buys according to their individual desires. In such a situation, it would be
more productive to understand the needs of each potential buyer and explain how ACE Cargo is
suited to provide solutions.
Market mix recommendation
It is important to mention that the ACE cargo can classify the product based on the its
usability. The ACE cargo can be exceptionally important for both the B2B and B2C business.
The reason is that ACE cargo is the sole products that is runs on battery and considering that
there is no market competition, ACE cargo can be used by both the B2C and B2B in an effective
manner. There are several strategies that have already been mentioned regarding the promotion
of the vehicle. It can be said that, electric vehicle is an altogether different segment of vehicle
that is entirely different from the diesel and petrol vehicles. Thus it can be said that the marketing
and segmentation of the electric vehicle is always different from the normal vehicles.
Considering the fact that the lack of the market competition, the manufacturers of the ACE cargo
will face zero competition from the other vehicles because of the electric vehicle is in itself a
different segment (Khan 2014). The Australian Government is pushing towards a zero emission
future, the manufacturers of the ACE cargo (ACE EV group) can market as a product that can
tackle and be a solution for the Australian Government's step towards the zero emission. The
ACE cargo is a fine product because the it will not help the private organizations but also the
public organizations that exclusively want to move towards the zero emission with reduced
emission and zero pollution. After giving relevant advertisements on the newspapers, and
highlighting the fact on the News Channels the ACE EV group can easily spread their brand
name. The launch of an electric vehicle which the only one in a while country is in itself will

Positioning and Mix Development 13
cause an effect in the Australian Car market which will ultimately lead to the spread of the brand
name and the increase in the number of the B2B and B2C customers (Londhe 2014).

Positioning and Mix Development 14
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