Marketing Strategy Project: Comparative Analysis of RAV4 and CX-5

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This marketing strategy project analyzes the compact utility vehicle (CUV) segment, specifically comparing the Toyota RAV4 and Mazda CX-5. It begins with a competitor analysis, examining customer perspectives on each brand, identifying factors influencing consumer choices, and suggesting strategies for encouraging customer switching. The report then provides an objective analysis of the products, including sales data, market share comparisons, and price range analysis. Furthermore, the project delves into the evolving environment of the automotive industry, highlighting technological advancements, emerging trends, and the impact of electric powertrains and autonomous vehicles. It concludes with recommendations for how both companies can adapt to these changes by implementing advanced technologies, investing in innovation, and leveraging data to improve efficiency and product quality. The report uses graphs and charts to visually represent sales data and market share comparisons, supporting the analysis and conclusions drawn.
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Running head: MARKETING STRATEGY PROJECT
MARKETING STRATEGY PROJECT
Student’s Name
University Name
Author note
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Introduction
The purpose of this assignment is to analyze the CUV segment between the RAV 4
and Mazda CX-5. Competitor analysis has been provided and describes the customer
perspective of the two companies and identified ways to encourage switching, objective
analysis has been done based on the review of the products. The evolving environment of the
industry has been provided and has provided ways in which the companies can take
advantage of the evolution.
Competitor analysis
Subjective analysis
Mazda CX-5 Customers perspective on Toyota RAV 4
The customers of Mazda CX-5 considers Toyota RAV4 to be highly stylish in its
approach, it has been given very particular designations to their models. Toyota RAV4 is
high adventurous and refined. The version of this car is inclines more towards being refined
and elegant in its look. The interior of the care is sober with slightly eccentric touches. This
model is particular fun to drive, apart from that the users can feel the quality of the product.
The customers of Mazda CX-5 consider it as a veritable monument of reliability and it highly
appeals to the buyer’s reasons (Cartabiano, Toyota Motor Corp 2016). It is more efficient in
its hybrid configuration. The customers mainly liked the spacious interior design of the
Toyota RAV4, even if the care is uninspiring, it has a reassuring drive, they also liked about
the quality of this finishing. They less liked about the styling which is quite common, they
did not like the bland driving experience, it was also said that the interior environment is
noisy and there is no androids auto.
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Toyota RAV4 customer perspective on Mazda CX-5
Mazda CX-5 does not compromise on the quality and reliability of its products. The
customers of Toyota liked about the inspirational styling of the model, it had an inspiring
finishing which was liked by the customers of Toyota RAV4. It had a driving pleasure. They
liked less about the screen menu which is slightly complicated, further, it requires super
gasoline to run the engine smoothly, the automatic transmission has just speeds and the price
structure of Mazda CX-5 is high (Cusumano et al. 2015).
The companies Toyota and Mazda can collaborate on its products and technologies to
spend spiraling development costs amidst the strict standards of emission. Both the
companies can utilize the each company’s strength. They can collaborate and build upon
technical exchanges and become the world’s biggest automakers. Collaborating they can
insists upon stopping billions of waste by working on it together.
Data analysis
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2014 2015 2016 2017 2018 201
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The Units sold
Mazda CX-5 Toyota RAV4
Graph 1: The Sales volume comparison between the two models
(Source: As created by the author)
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MARKETING STRATEGY PROJECT
In line of the above analysis which was done in order to compare the units of the
Mazda CX5 which was sold in comparison to the Toyota RAV4, it could be rightfully
understood that, the sales of the Toyota can be believed to be much more as compared to that
of the Mazda cars. Although the Mazda cars have reflected adequate stability in its sales, the
Toyota has reflected a considerable increase of the cars in the past few years. In line of this, it
can be understood that the Toyota has been performing considerably well as an organization
as compared to the Mazda.
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2014 2015 2016 2017 2018 2019
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The Total company sales
Mazda Total Sales Toyota Total Sales
Graph 2: The Sales comparison between the two companies in units
(Source: As created by the author)
The given chart compares the total sales of Mazda as compared to the Toyota
organization. In line of this, it can be understood that the sales of the Toyota can be stated to
be considerably high and hence, in line of this, the Toyota`s performance can be stated to be
much better than the performance of the Mazda firm.
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MARKETING STRATEGY PROJECT
Q1
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The Volume share comparison
Mazda CX-5 Total Volume Share Toyota Rav4 Total Volume Share
Graph 3: The Sales volume comparison
(Source: As created by the author)
The given chart compares the volume share comparison of the specific cars as
compared to the entire sales. The Toyota forms a considerably lower proportion of the total
sales made and as compared to this, the Mazda model takes up a higher volume of the total
cars which are present under the brand.
Objective analysis
The price range of Mazda CX-5 is between the ranges of $ 24,000-$36,890. It has more
powerful engine, Android Auto Smartphone integration that is added to the model, it has
ventilated front seats and has a surround view parking camera. The model has been
manufactured with keen handling and steering which makes Mazda CX-5 enjoyable to drive.
It has an attractive and upscale cabin which enables the user to experience premium
ownership. Further it has a new optional turbocharged engine which provides it plenty of
power (Fleming 2013). As per the reviews it is less noisy from the interior at the highway
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MARKETING STRATEGY PROJECT
speeds. However, Mazda CX-5 lacks base engine’s lackluster acceleration and has less rear
legroom and cargo room as compared to its competitors.
Toyota RAV4 price range is $ 25,650 - $35,850; it was redesigned in the year 2019 with
new and better proportions with a more rugged appearance. Toyota RAV4 requires a standard
2.5 liter, four cylinder engines along with eight speed automatic transmissions. It has been
reviewed that it delivers relatively quick acceleration. The hybrid version of this model is
highly energetic. Its electric drive enables to engine to produce immediate and quick
movement from a standstill. It has a responsive steering and limited lean when taking corners.
However, the users have reviewed that it is quite noisy and jumpy during the driving
experience. Although it’s all wheel drive version allows the user to drive selecting modes to
optimize traction on mud and sand (Guo et al. 2015). Although there is no Android Auto, the
drive is smoother; the controls are clear and intuitive. It has advanced safety features such as
collision warning and automatic emergency brakes which has been standard equipment.
Industry and environmental analysis
There has been vast change in the automobile industry and it has become a challenge for
the manufacturer to adapt to the evolving environment and trends. There are various
technological advancements such as the interactive safety systems, the vehicle connectivity
and especially the self-driving cars. Further, there are new competitors in the industry of
automobile. Mazda CX-5 and Toyota RAV4 can take advantage of the ever changing and
evolving environment by implementing newer and advanced technologies and staying in par
with the other competitors in the market (Sathyanarayana et al. 2013). The mobility systems
gain prominence and the vehicles are programmed to drive by themselves. There have been
innovations in the safety and riser amenities which the companies can take advantage of.
Implementing and investing on innovations will help the company to grow its sales and
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expand its business (Wiesbaden 2013). There has been a shift towards electric power train
influenced by public demand. Toyota and Mazda can take advantage by actively pursuing a
pure electric power train. Further, the evolving environment has brought revolution with the
arrival of autonomous car. Therefore the automobile companies needs to consider the
changes and implement necessary changes to take advantage of the situation (Guo et al.
2015). The companies need to manufacture products to keep up with the technological
improvements. There is greater opportunity to improve its manufacturing with the use of
advanced technology. By harnessing the data, using machine learning and increasing it
automation the companies can increase their efficiency, flexibility and bring necessary
improvements in the quality of the product manufactured. It can implement machines with
better vision systems to increase the level of accuracy (Wiesbaden 2013). Therefore, the
companies can take advantage of the evolving industry environment.
Conclusion
Therefore from the above analysis it can be concluded that both the companies needs to
analyze the evolving business environment and implement advanced technology to adapt to
the changes. The subjective and objective analysis of the two companies has been provided
and analyzed. It has identified the evolving business environment and recommends ways to
take advantage of the evolution.
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References
Cartabiano, I.R., Suzuki, K. and Sato, K., Toyota Motor Corp, 2016. Front bumper for an
automobile. U.S. Patent Application 29/538,734.
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Fleming, B., 2013. Electric vehicle collaboration-toyota motor corporation and tesla motors
[automotive electronics]. IEEE Vehicular Technology Magazine, 8(1), pp.4-9.
Guo, C., Du, Z. and Kou, X., 2017, November. Mining Online Customer Reviews for
Products Aspect-Based Ranking. In International Symposium on Knowledge and Systems
Sciences (pp. 150-161). Springer, Singapore.
Helfat, C.E., 2015. Vertical firm structure and industry evolution. Industrial and Corporate
Change, 24(4), pp.803-818.
Onar, O.C., Campbell, S.L., Seiber, L.E., White, C.P. and Chinthavali, M., 2016, June. A
high-power wireless charging system development and integration for a Toyota RAV4
electric vehicle. In 2016 IEEE Transportation Electrification Conference and Expo
(ITEC) (pp. 1-8). IEEE.
Sathyanarayana, A., Sadjadi, S.O. and Hansen, J., 2013. Automatic driving maneuver
recognition and analysis using cost effective portable devices. SAE International Journal of
Passenger Cars-Electronic and Electrical Systems, 6(2013-01-0983), pp.467-477.
Wiesbaden, S.F., 2013. Mazda’s i-ELOOP: saves engine power, boosts fuel efficiency. Auto
Tech Review, 2(2), pp.64-64.
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