Global Marketing Report: AVASS Electric Buses and Coaches for Germany

This report provides a comprehensive market analysis for AVASS electric buses and coaches in Germany. It begins with an executive summary and introduction, highlighting the opportunities presented by Germany's Energiewende initiative and the growing demand for electric vehicles. The report then delves into market analysis, examining market size, growth rates, and the German population's demographics. An organizational analysis of AVASS follows, including a customer audit, 4Ps analysis, competitor analysis, and positioning strategies. The macro environment is explored through Porter's Five Forces, value chain analysis, and the BCG matrix. A SWOT analysis summarizes the brand's strengths, weaknesses, opportunities, and threats. The report concludes by emphasizing the potential for AVASS to succeed in the German market by leveraging its expertise in electric bus manufacturing and adapting to local market conditions. The report also covers market barriers, market drivers, and strategic recommendations for AVASS's market entry and growth in Germany.

Running head: AVass electric buses and coaches for germany 1
Global Marketing
1.0 Introduction
Name:
Institution
Exporting the Australian AVASS Electric Car for the German market

AVass electric buses and coaches for germany 2
Executive Summary
The reduction of tax on electric buses in Germany is a motivation to investors seeking to do
business in Germany. Among Germany’s safety laws is proof of safety and free emissions car.
This law applies across the EU and UK region. In fact, most countries in the world advocate for
production of vehicles with clean air. This sustainability initiative is in line with the modern
consumer needs, industry changes as well as government initiatives. The existing gap in public
transport provides a business opportunity for AVASS an Australian electric bus manufacturer. It
would be unfavorable for the brand to venture into the car business because the German
consumer has an attachment with traditional car brands like BMW Mercedes and Volkswagen.
This gives AVASS a reason to do engage in a unique business focus. The brand has years of
experience in exclusive high quality buses in the Australian region. Supplying electric buses for
Germany and its environs stirs up the industry with innovation of new brands.
.
Contents

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Executive Summary.............................................................................................................2
1.0 Introduction....................................................................................................................4
2.0 Market Analysis.............................................................................................................4
2.1 Size of the market and growth rates..........................................................................6
2.2 Population..............................................................................................................8
3.0 Organizational Analysis...............................................................................................10
3.1 Customer Audit and Buyer Behavior.......................................................................12
3.2 AVASS 4 Ps..............................................................................................................13
3.3 Competitor Analysis................................................................................................14
3.4 Competitor Advantage of your product...................................................................15
3.5 Positioning...............................................................................................................15
4.0 Macro environment......................................................................................................17
4.1 Porter five forces model...........................................................................................18
4.2 Value Chain..............................................................................................................18
4.3 BCG Matrix.............................................................................................................19
5. SWOT Analysis (table with summary in main body)....................................................20
6.0 Conclusion...................................................................................................................22
References..........................................................................................................................23

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Global Marketing
1.0 Introduction
The introduction of an Australian brand in the market is poised to bring opportunities and
challenges. The German government has a new plan called Energiewende, which seeks to
replace, reduce the use of coal and nuclear products (Dvd, 2017). Its annual release of 906
million tonnes of Co2 keeps increasing and vehicle emissions produce the highest carbon release.
The international markets have opportunities and challenges for businesses today because of
globalization. The development of technology within the global market is a major stimulant for
organizational development. As brands search for opportunities in new regions, market entry
strategies for new products and services emerge. The change in the business models redefines
business undertakings. Most global markets have a major challenge of dealing with
environmental issues (Konrad, 2012). Although German technology has found a place in global
markets as vehicle manufacturers in luxury vehicles namely BMW, Volkswagen and Mercedes,
there is a gap in bus companies. In fact, one of Germany’s brand, BMW is penetrating the Asian
markets successfully through the electric car model. Germany is a leading exporter of luxury
vehicles but its production of electric cars is still lagging behind. Taking advantage of this gap,
AVASS an Australian brand steps in with its electric car model set for the Germany market.
2.0 Market Analysis
The business opportunity in the bus industry has benefits as well as challenges. Among these are
the customer perception of the brand and brand identity. It also has challenges with its brand
equity. A reduction of 50% on tax gives AVASS a cost reduction incentive for business
(Bohnsack, Pinkse, & Kolt, 2014). Although the company is strong in Australia, venturing into a

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market where there are giants in the industry has its challenge. In order to gain popularity and
acceptance in Germany AVASS may need partnerships for the whole production process or
vehicle parts. It takes multiple strategies to analyze its capability for this new venture. In
international business, there are different modes of market entry including partnership with
manufacturers in the region.
Industry statistics reveal the promising market potential in the market. The decision to enter the
European market starts with success at home (Vorrath, 2016). Recent moves by Germany to
import buses from Solaris Bus & Coach for parts of Germany is an indication of demand
(Eurotransport, 2017). AVASS plans to manufacture all electric vehicles in segments of busses,
cars, vans motorcycles and trucks. The brand has its battery-manufacturing unit, which makes its
production of parts more affordable. In Europe, the brand already has a production plant in
Turkey. Like its competitors BMW and Mercedes, AVASS has plants in China where the
emerging market shows huge demand for sustainable brands. The brand targets government
orders for large-scale supplies.
Although the global market seems ready for the electric vehicle, consumer trends in
Germany speak a different language (Petzinger, 2016). Germans have a connection with
environment friendly brands. Although keen on recycling, most of its consumers in the vehicle
industry prefer the high performing cars. These are fuel guzzlers whose maintenance is high.
Electricity in the country is cheap compared to coal products. In contrast to China’s public
charging systems, Germany has home charging units therefore; it gives AVASS confidence of
infrastructural development. AVASS has a reputation of producing quality unlike its competitor
Volkswagen that has had to deal with ethical issues about accountability in greenhouse emission
(Ewing, 2016).

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The fact that AVASS has six years’ experience in lithium-ion battery gives it an edge.
Environment friendly products is one of the reasons for this adoption (Perkowski, 2017). Since
the brand is new in the market, partnership with reputable brands is appropriate. BMW chose to
collaborate with Samsung as an entry plan into China (BMW., 2016). . This is also the reason for
other brands like Apple having production plants in regions outside their home. AVASS needs to
look at advantages such as the low cost of operations because electrically charged vehicles do not
need fuel services. Technology on overage costs less and electric vehicles provide a sustainable
resource. Learning from successful experiences in regions like China, AVASS is able to make
estimates of its production process (Shrouzu, 2017). Industry stakeholders in the automobile
sector also agree to the green vehicles idea.
Market intelligence point towards partnerships with local brands in order to succeed in
the quest to create solutions (DeMorro, 2014). The BMW/Samsung deal is a perfect example of
how AVASS can reduce on the supply chain costs. Market share statistics also bring out
Mercedes as a successful global brand that AVASS needs to watch (Winton, 2017). The target
market is medium income earners. Carmakers rush to take advantage of this growing demand
proves the potential of this strategic move (Harvey, 2011). Consumer interests often translate to
sales but when it comes to disruptive technology, the innovator takes risks. Consumers drive
technological changes in the global markets. The demand for energy efficient products in the
region has support from government, NGO and the business community.
2.1 Size of the market and growth rates
AVASS is not a brand within the luxury car market. Instead, it falls in the same category
as Toyota and Ford and it is popular for bus models. Located at the heart of Europe, Germany is
the best access point for all of Europe. Besides the strategic geographic location, it is also

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economically strategic because it is the largest in automotive market production and sales
(McCarthy, 2013). The country manufactures more than 15 million cars, which account for 19%
of global production. Its suppliers are globally recognized and its 20% contribution to GDP
makes it the biggest industry in the industry. Vehicles that come from Germany have a global
reputation of quality. The country also invests hugely in Research and Development (RD) for
innovative products.
Figure 1: German’s automobile exports surpass all other regions of the world (McCarthy, 2013)
It is hard to overlook the influence of technology because it improves efficiency, and
provides alternative modes of production. Technology production also enhances connectivity
between the automobile industry and technology. The electric vehicle provides a solution with
hybrid vehicles that is light in weight, and high in safety and fuel consumption (Bullis, 2013). In
Germany, investment in automotive is higher than the electronics and telecommunication
industries. This is a stable economy with a high rate of investment. Its legal system is friendly
with lower tax rates and it has quality infrastructural development. AVASS has access to
business partners for business financing and public grants. The German market is highly

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competitive and organizations embrace best practice in a population with a highly skilled
workforce. The main hindrance to the electric vehicles business in the EU is the battery-charging
infrastructure and vehicle supply range (Winton, 2017). AVASS is a renowned battery
manufacturer with years of experience.
Figure 2: The German consumer spending is a good sign of income growth (Destatis, 2017)
2.2 Population
Germany plans to have more than 1 million electric cars by 2020 and government
institutions are the leading customers in the EV segment. . This is an opportunity for AVASS
since the EU population is largely unaware of the benefits of EV. This means AVASS needs to
invest in target marketing and PR communication (Shahan, 2017). It needs to target buyers who
need:
 Affordable vehicles
 Great interior and exterior design
 Quality battery mechanism
 Variety in style

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AVASS is the premium Electric Vehicle (EV) manufacturer situated in Melbourne
Australia. This privately owned brand is popular in AU because of its innovation and quality. It
combines safety, high quality and environment friendly attributes. The region has 81 million
consumers forming 16% of the EU population (GTAI, 2017). Over 60% of this population
comprises of a productive population between 25-69 years. Consumers in the transport segment
is the public industry (Morris, 2017).
Figure 3: Alarming greenhouse emisions in transport industry (Morris, 2017)
2.3 Market Barriers and Market Drivers
German laws favor the introduction of EV brands (GTAI, 2017). Compliance is
important for the development of the brand image and it protects the brand from exploitation and
legal suits. A complete market analysis captures the consumer trends and its influencing factors
such as environmental sustainability (Ruoff, 2016). These become the basis for present and
future strategies. AVASS marketing mix strategies must cater for cultural barrier and

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environmental concerns. These are common hindrances to market entry strategies (Moran,
Abrason, & Moran, 2014). Learning ways to overcome such barriers is part of the strategic
management processes. Language barrier is also an issue because AVASS’s origin is in English
speaking Australia, which is different from German. Germans are loyal to local brands and
convincing them otherwise possess a major challenges.
3.0 Organizational Analysis
AVASS more than 100 years in the automotive industry. Its business focus is on
innovation and advanced technology. Its agenda is to use breakthrough technology for improved
transformation and capabilities. Its business model is collaboration in product delivery, business
processes and management style. Its head office is in Australia’s Melbourne, Victoria. It has
manufacturing units across the globe including China, India, South America and South Africa. It
has plans to have a manufacturing plant in Europe by 2018 (AVASS, 2017).
Expertise: Popular for its electric bus, AVASS intends to use the EV technology for
improved manufacturing of other vehicles. The brand is the Guinness World record holder for
high capacity and density, which surpasses the competitor four times. Its low cost battery also
lasts longer and it comes with 8 years warranty. The brand seeks to capitalize on these
advantages. The e-vehicle also has certifications in safety and reduced emissions. Its definition of
innovation features, new methods, advanced, new ideas, creative and unique ideas (Nzta, 2017).

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Figure 4: Avass electrical bus innovation Excellence (Payne, 2017)
Management: Leadership is also a significant factor because it influences the direction taken by
the brand. The inspiration to introduce the electric car was because of a number of global factors
including the need for alternative, convenient operations and low cost energy efficient vehicles
(Garage, 2017) multitier products. The brand hires the best skills in the region and it has more
than 500 employees in the EV department (Lannen, 2016). Headed by Allen Saylav its CEO, the
brand has employees across Europe, Asia and South America. It has employees in the
manufacturing unit, engineering, supply chain and management. The brand has top engineers and
designers with credentials in the automotive industry.
Current strategies: The brands management strategy has a focus on innovation and sustainability
for buses and coaches. This conservative brand accommodates for the development of the
electric car vehicles using advanced technology. The brand plans to take advantage of the global
market in different regions. The electric bus segment is a unique specialty that is still unexplored
(Ruoff, 2016). However, it needs to upgrade with additional features in order to meet the high
consumer tastes in Germany and Europe. The market is highly volatile yet it presents
opportunities. A closer look at some of the reasons why consumers would resist the electric
vehicle reveals concerns about the battery run in while in traffic and consumer loyalty to specific
car designs (Dowling, 2017). AVASS has a responsibility of transforming this consumer

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perception. This is possible through integrated advertising strategies. The brand needs to take
advantage of the government support in Australia and Germany.
3.1 Customer Audit and Buyer Behavior
AVASS has a vision to enrich its customers, stakeholders, employees and distributors. The
electric vehicle offers solutions in the transport sector is for both private and public means. Oil is
a scarce resource globally and there are concerns about global warming and pollution through
gas emissions (Wee, Molin, & Liao, 2016). The table below summarizes some of its customer
reviews about electric vehicles.
Segment Customer perception
Electric bus Reduced emissions, less vibrations, excellent
performance, easy mobility, single charge per
day
Electric cars Cost effective, reduced vibration, battery
durability, excellent performance, safety
standards, zero emissions, advanced
technology, clean energy
Fuel vehicles Sleek design, high performance, variety, horse
power, value for money
Table 1: Customer perception of electric vehicles verses fuel combustion
Focusing on the electric bus consumer modern consumer, AVASS group needs strategies
in sales, service, spare parts, survey and sustainability to define its integration of suppliers in the
business agenda (Bohnsack, Pinkse, & Kolt, 2014).