Cross-cultural and Global Marketing: Lotus Cars Market Analysis Report

This report provides a comprehensive analysis of Lotus Cars' global and cross-cultural marketing strategies. It begins with an introduction to the concepts and then proceeds to a situation analysis, including SWOT and PESTLE analyses of the marketing environment. The report explores market competitiveness, market choice, and target segments using the STP model, followed by an examination of brand positioning and value proposition. It then delves into market entry strategies, standardization and adaptation strategies, product, communication, pricing, and distribution strategies, as well as people, process, and physical evidence considerations. The report concludes with a summary of strategic marketing decisions and a conclusion.

Global and Cross-culturalGlobal and Cross-cultural
MarketingMarketing

Table of Contents
Introduction......................................................................................................................................1
Situation analysis.............................................................................................................................1
Marketing Environment Analysis..............................................................................................1
Market Competitiveness..............................................................................................................4
Market Choice & Target Segment..............................................................................................4
Brand Positioning.......................................................................................................................5
Value Proposition.......................................................................................................................6
Market Entry Strategies...................................................................................................................6
Standardisation & Adaptation strategies........................................................................................8
Product or Service Strategies.....................................................................................................8
Marketing Communication Strategies.......................................................................................9
Pricing Strategies........................................................................................................................9
Distribution Strategies..............................................................................................................10
People, Process & Physical Evidences in context of consumers............................................10
Other Strategic Marketing Decisions.......................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Introduction
The strategic process of marketing for customers who belongs to distinct culture from
marketer's culture is referred to as cross-cultural marketing. Global marketing refers to process
related with adjusting to marketing strategies of firm for adapting to situations within other
countries. Global and cross-cultural marketing denotes the process that is related with selling of
product through appropriate planning, production, placing as well as promotion of business
services or products in world-wide market (Adekola and Sergi, 2016). To understand the concept
of global and cross-cultural marketing, Lotus Cars is taken into consideration which
manufactures racing as well as sports cars and is headquartered in UK. They fabricate light
weight as well as fine handling characteristics within their services. This report comprises of
situational analysis, market entry strategies, and standardisation and adaptation strategies.
Situation analysis
The process in which synthesis is being carried out with respect to internal as well as
external factors of businesses is referred to as situation analysis. This implies systematic
gathering as well as assessment of past as well as present technological, economical, social and
political data which aims at determination of forces which creates an impact on performance of
firm as well as choosing strategies for the same (Bird and Mendenhall, 2016). For understanding
this aspect, the company analysis in context of Lotus Cars has been shown below:
Marketing Environment Analysis
The strategic analysis tool which aids within identification of internal as well as external
factors of the environment that are liable for creating an impact on abilities of firm to render their
services in an effectual manner is referred to as marketing environmental analysis. With respect
to Lotus Cars as they are rendering their services worldwide, it is important for them to analyse
all the factors before serving particular country (Davies, 2016). The reason behind this is that, in
case if their political or economic conditions are not stable then it is very obvious that firm will
not attain appropriate profit and might face loss. The internal analysis can be carried out through
the usage of SWOT and external can be conducted by making use of Pestle. They have been
illustrated beneath:
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SWOT Analysis: It is liable for identification of company's strengths, weaknesses,
opportunities along with threats which are being faced by organisation. Lotus Cars is leading
brands within automobile industry. The SWOT analysis is illustrated below:
Strengths Weaknesses
 Lotus Cars furnishes there customers
with light weight designs that will
renders high power to weight ratio.
 There vehicles are hand built which
leads to furnish high precision as well
as care within manufacturing.
 They have strong presence within the
Formula One and motor sport.
 Dependent on other manufacturers for
designing their accessories and engines.
 Brand penetration and presence is
restricted within fewer countries only.
Opportunities Threats
 F1 team of Lotus Cars has done good
which can be utilised by them for
enhancing brand image.
 Lotus Cars can add their production
facilities within Asia through which
cost associated with this can be brought
down through which profit margins can
be increased.
 Market shares of Lotus Cars can be
taken up by European manufacturers.
 If any kind of cash flow occurs then it
will become difficult for them to revive
from it.
Pestle analysis: This implies aggregation of six distinct elements that must be
emphasised by business entities for executing their activities in an appropriate manner. All these
factors are being analysed by strategy manager of Lotus Cars in detail (Kolios, Read and
Ioannou, 2016). They are illustrated below:
Political: This involves procedures as well as policies which are being formulated by
government of nation like trade regulations, taxation laws, political stability, etc. The stable as
well as strong political state of UK government holds on possibilities for Lotus Cars to grow
feasibly as well as expand their operations in nation being within jurisdiction of policies. But
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factors like trade wars, political instabilities. BREXIT, trade wars, etc. cause threat with respect
to sustainability of firm. For this strategies must be formulated by Lotus Cars by which needs of
individuals can be accomplished in an appropriate manner.
Economic: It comprises of interest, saving, inflation rate, etc. in this context it implies
rising prices of fuel-engine automobiles which leads to rise within the demands of sustainable
cars that furnish lucrative opportunities for Lotus Cars for selling eco-friendly cars through
which trust of customers can be gained. Moreover, adversities like BREXIT acts as a major
threat for demands of car within market of UK. For dealing with such kind of situations, entities
need to develop strategies in which Lotus Cars must opt for economic pricing model that
comprises of high tech capabilities.
Social: Alterations within practices, trends, attitude and lifestyle of customers are
involved within this element. With evolution in time, customers are aware about environmental
concerns, thereby understands the threat which is being posed by vehicles on society. This
renders opportunities to Lotus Cars for having edge within the market in context of enhancing
demands for interpreting sustainable offerings to individuals. But there are various firms present
in market that renders funds, labour and material for coming up with eco-friendly cars that
disrupt automotive industry. This acts as major threat for Lotus Cars and for dealing with this,
firm needs to make use of strategies to launch high tech, latest and innovative designs.
Technological: This aspect comprises of latest technologies, techniques and trends that
have capabilities for altering the face of marketplace. Lotus Cars comprises of models that are
dependent on hydrogen fuels as well as possess latest & distinguished dimensions. This has
introduced anticipations for their loyal customer base which leads to pressurise firm. For dealing
with such situations Lotus Cars develop innovative & unique services to their consumers through
which they can attain enhanced profits.
Environmental: Every organisation within the present time tends to render their services
within context of environment for gaining recognition from legal bodies, customers and
government. With respect to this, Lotus Cars needs make sure carbon emissions while producing
their vehicles as well as take appropriate measures for promoting sustainable development in
premises of organisation. Through the appropriate use of paper within firm they can bring in new
eco-friendly services for individuals within the coming time. But, premium pricing strategies are
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being opted by firms as they poses threat to market dominance of entities. For dealing this, firms
needs to opt for economic prices for being appealing to income groups.
Legal: Each firm rendering their operations in corporate world must follow certain
legislations and laws which are liable for guiding sector where they render their services. With
respect to Lotus Cars, they abide employment regulations, automobile laws, health & safety laws
and many others. Furthermore, regulations are implemented by government with respect to green
movements that involves green policies, carbon tax and many others which will furnish
opportunity for Lotus Cars to make investments within through which trust of customers can be
attained. There exist various tax policies with respect to green business that creates threat for
organisation. Therefore, Lotus Cars must develop strategies in which operations must be aligned
with go-green needs.
Market Competitiveness
The term which involves number of producers that compete with each other for
furnishing goods as well as services as per requirements of customers is denoted by market
competitiveness. This can be understood by taking an instance like Lotus Cars is British
organisation and they are rendering there services worldwide. In case if they deliver there
services within Germany then they will face high competition from brand like Porche, BMW and
Mercedes Benz. Similarly, if Lotus Cars delivers there services in America then, higher
competition will be faced by them from firms like Cadillac and Lexus. Each market is
competitive in their own and has strong players. Thus, it is important for Lotus Cars to provide
their customers with something unique which will enable them to captivate huge market.
Furthermore, market competitiveness also illustrates the extent to which rivalry prevails
within the automotive industry. With respect to this, it has been identified that there exist ample
number of companies which renders their services in vehicle market of UK, like Jaguar, Aston
Martin, Bentley Motors and various others. It denotes that magnitude of this component is higher
within the markets of UK.
Market Choice & Target Segment
The strategic approach that can be utilised in modern marketing is illustrated by STP and
it is widely utilised by organisation for evaluating market in which they are delivering their
services. Lotus Cars can make use of STP model while creating marketing communication as
this will assist marketers within prioritising propositions within development and delivery of
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personalised as well as significant messages to get engaged with distinct audiences. In context of
Lotus Cars, STP model has been illustrated below:
Segmentation: It denotes grouping of different customers on the basis of some kind of
criteria like demographics, location and other measures. Lotus Cars has segmented their market
on the basis of true enthusiasts instead of emphasising on affluent and rich. They have divided
there population with respect to how they appeal to their probable customers.
Targeting: In this, context firm need identify their target market in terms of attractiveness
and through which organisation can attain higher profitability. As Lotus Cars deals within sports
cars then it will be effective for them to target young nouveau rich driving enthusiasts. This leads
them to have best return on investments which are being made by them.
Positioning: It implies how the services or products are figured out within the target
segment as well as emphasise on marketing channels. Lotus Cars furnishes one of the most
iconic cars within Britain for true driving enthusiasts.
Brand Positioning
Brand positioning can be referred to as the positioning strategy adopted by a brand with a view
to develop a unique and appealing impression in front of consumers at the market place. The
firms operating at global scale are required to build a brand positioning which is distinct from its
rivals in terms of desirability, specification, clarity etc.
Figure 1: Lotus Car Sales in UK from 2016-2019
The above graph reflects that the quantum of cars sold by this brand within the confines of
United Kingdom in the period between January 2016 to July 2019. The brand positioning of this
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company can be estimated on the basis of its sale in the August of year 2016 which was
acknowledged to be 90 units. In relation to the latest record, the sale of July 2019 was 12 units.
Value Proposition
Value Proposition Canvas can be referred to a business management tool that is taken into
use with a view to make sure that the organizational offerings of a new or existing venture are
effectually positioned centered on the customer needs as well as values. In other words, this can
be said that it is a model that renders assistance to business organizations which are beginning
their business operations or functioning in market since long time, in catering to the needs and
demands of clientele by providing products of high quality. Lotus Cars is a well renowned
corporation operating in automotive industry and delivering products of high quality to
customers. Its value proposition canvas reflects that the firm fulfils the requirements of
customers by providing them with hi tech and modern cars that have market disruptive features.
Further, it is analyzed that the usage of cars produced by Lotus Cars renders maximum
satisfaction to people.
Market Entry Strategies
There exist different ways through which organisation can have entry within the global
market. They are referred to as market entry strategies and they aid firms in successfully
expanding their functions as well as operations. There exist different ways through which Lotus
Cars can enter within global market. They have been illustrated below along with their
affirmative as well as pessimistic:
Strategy Sub Types /
Description
Advantage Disadvantage
Export
Via foreign distributor  There is low
staffing need.
 Minimised
marketing cost.
 Higher
transportation cost.
 There exist probable
barriers to trade
which can be
experienced by
Lotus Cars.
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Through foreign agent
 Conservative
financial risks.
 Lotus Cars can have
low cost for entry
through this.
 Agent will aid
organisation to deal
with or overcome
complexities
associated with
entry in market.
 Enhanced
dependency on
foreign agents.
 Lower profits on
transactions which
are being made.
 Cognition within
earning international
experience.
Franchising Sales of rights through
domestic franchisor
for carrying out
commercial activities
via foreign franchisee.
 Enhanced
probabilities for
speedy foreign
expansion.
 Entry cost is low.
 Lotus Cars will have
need of control cost.
 Possibilities of
disloyalty of
franchisee's.
 Sharing of profits
among domestic as
well as foreign
franchisor.
Licensing Selling of rights
backed through
intellectual property or
patent that can be
utilised for
commercial intents
within the foreign
market.
 Through this Lotus
Cars can have low
entry cost.
 In-depth
knowledge
associated with
local situations by
the licensee.
 There is threat of
disloyalty with
respect to licensee.
 Lack of control
with respect to
maintenance of
quality within the
foreign market.
 Low royalties.
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By looking at advantages which are being furnished by licensing, it is suggested that
Lotus Cars can opt for licensing as the market entry strategies for making sure their sustainability
for longer duration within the global time owing to minimised cost of entry as well as minimised
financial risks related within this.
Standardisation & Adaptation strategies
The ability of organisation for making use of identical marketing strategies while
rendering their services from one specified country to the other as well as in the different cultures
is referred to as standardisation. This implies that same marketing mix is being utilised by
organisation while delivering their services globally. When emphasis is laid on significance of
customisation, it is referred to as adaptation. Here, firms are liable to take into consideration all
local expectations as well as specifications illustrated by specified region and will lead to
enhance the local image. In context of Lotus Cars, these strategies have been illustrated below:
Product or Service Strategies
Offering appropriate consumer services as well as goods for target audiences is referred
to as product or service strategy. This involves new products, designing, brand names, quality
along with research and development. The rationale behind product strategies is development of
products which will enable them to meet expectation of buyer. Lotus Car ensures that
specifications and features which are being rendered by them within United Kingdom are not
compromised while delivering them in other countries. Like they are specialised within
providing there customers with light weight designs by assuring higher precision. Lotus Cars
ensure that they design, engineer, manufacture as well as market their sports cars with high
accuracy by which they can captivate enhanced number of individuals. This acts as there strategy
in which they emphasise on providing the same quality of services but in case if they are
rendering their services within the American market then they take into consideration the needs
of probable customers and accordingly makes alteration within their products. The rationale
behind this is that through this they can captivate large market shares. The vehicles are being
rendered according to demographics and population which exist within the new market.
Marketing Communication Strategies
The policies that are being utilised by firm or individuals for reaching their target market
via different types of interaction are referred to as market communication strategies. This
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involves the message like what is to be communicated, where this has to be interacted and who
are the target to whom it has to be sent like the target. In this context, there are different
principles around which it revolves and are being utilised by Lotus Cars for rendering their
services within the global market. They have been illustrated below:
 A clear outline is being provided with respect to services or products along with features
that are being furnished for their customers. It is important to interact what is being
provided to individuals so that they can make use of services accordingly.
 Lotus Cars needs to illustrate the clear reason with respect to why individuals must make
use of their services or products in terms of why they are better as compared to their
competitors.
 Target the articles or educational information which is being designed for enhancement
of knowledge possessed by customers. This implies that Lotus Car can make use of
articles for making people aware of features which they are providing within their
vehicles.
Pricing Strategies
Price denotes the value which has been put to service or product via carrying out different
research, calculations as well as risk taking abilities. Pricing strategies are liable for taking into
consideration account segments competitor actions, input cost, trade margins and various other
factors. Depending upon the industries in which services are being rendered by organisations,
firms formulate the pricing strategies. With respect to Lotus Cars, they make use of premium
pricing strategies; this denotes setting up higher charges as compared to their competitors for
products furnished by them. The reason behind this is to create perception related with their
products render higher value as compared to others. It leads Lotus Cars to generate higher profit
margins thereby creating tough barriers for new entrants as well as enhance the value of products
of firm.
Distribution Strategies
The plan for making a service or product available to target customers via their supply
chain is referred to as distribution strategy. They are liable for designing the complete approach
with respect to availability of offerings which begins from taking input with respect to what is
being interacted through marketing campaigns to what target audiences can be provided with.
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Lotus Car makes use of traditional franchised channels through which they sell their vehicles
across the world. This enables them to reach ample number customers and acknowledge their
needs.
People, Process & Physical Evidences in context of consumers
They involve employees and customers of Lotus Cars who are liable for rendering as well
as taking their services. They are the important assets of firm and distinct processes are being
utilised by them through which goals and objectives can be attained in an effectual manner.
Lotus Cars manufacture their services and renders their services worldwide. Employees of
organisation ensures that light weight components are being utilised by which they can
accomplish their needs and ensure that the final product which is being rendered by them is of
higher quality.
Other Strategic Marketing Decisions
Firms make use of different models as well as carry out appropriate marketing analysis
through which they can accomplish the altering needs of the market. Along with this, as
technology is evolving, Lotus Cars can make use of new techniques through which they can
captivate huge number of individuals towards their product. For an instance GPS is being
installed within their vehicles by which all the details related with position of vehicles can be
tracked. Market Penetration strategy clearly emphasis on selling existing product at existing
marketplace. In context of Lotus Cars, it can be said that the company can easily use this strategy
by selling existing models of their car in the already captured area. It has been analysed that,
marketing team of Lotus Cars can easily influence interest of customers by using this strategy as
they are aware of their interest and liking. As a result, the strategy helps them in attaining sales
target in easier manner.
Conclusion
From above, it can be concluded that global and cross-cultural marketing firms need to
identify the needs of their target market so that they can be accomplished in an impelling
manner. The reason behind serving market as per market requirements is to capture the huge
market share rather depending on the identical strategies for delivering their services.
Furthermore, firms analyse the marketing environment, the market which they have to serve,
segment of the country and whom they have to target. This will lead them to furnish appropriate
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