Marketing Strategy Report: Holden Cars Limited - China Market

This report provides a comprehensive marketing plan for Holden Cars Limited, an Australian automotive company, focusing on its strategic entry into the Chinese market. It begins with an executive summary and details the company's background, including its history and current operations. The report then delves into the internal environment through a SWOT analysis, highlighting strengths, weaknesses, opportunities, and threats. The external environment is examined using a PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors influencing market entry. The report offers recommendations for Holden, including target market identification, new product/service descriptions, and a detailed marketing mix (product, price, place, and promotion) tailored for the Chinese market. The conclusion summarizes the key findings and strategies for Holden's successful expansion.

Running head: MARKETING STRATEGY
Marketing strategy
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY
Executive Summary
This report deals with the marketing plan of the Holden Cars Limited, which is based in
Australia. The company has been performing in a fair manner in the Australian and the New
Zealand market and is trying to enter a new market so that it can have a global reach. The
company has opted for the Chinese market, as the opportunity to have more growth looks very
promising. The report consists of the internal and the external environment for the company,
which will help them in entering the market. There is also detailed information about the new
products and the services that will be provided by the company in the market. It is also inclusive
of the marketing mix that the company needs to adopt so that the strategies can be made in a
better manner.

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Table of Contents
Introduction......................................................................................................................................4
Company Background.................................................................................................................4
Internal environment of the company..............................................................................................5
SWOT analysis............................................................................................................................5
Strengths..................................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities...........................................................................................................................6
Threats.....................................................................................................................................6
External environment.......................................................................................................................7
PESTLE Analysis........................................................................................................................7
Political....................................................................................................................................7
Economic.................................................................................................................................7
Social.......................................................................................................................................7
Technological..........................................................................................................................8
Legal........................................................................................................................................8
Environmental..........................................................................................................................8
Recommendation.............................................................................................................................9
Target market...............................................................................................................................9
New Products/ Services description............................................................................................9

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Marketing mix...........................................................................................................................10
Product...................................................................................................................................11
Price.......................................................................................................................................11
Place.......................................................................................................................................11
Promotion..............................................................................................................................12
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................14

4MARKETING STRATEGY
Introduction
Company Background
The Holden Company is a historical figure in the Australian automotive industry and has
been doing business for the past one and a half decades. The company launched its first car
model called the 48-215 in the year 1948, which was an immediate success in the automotive
market of Australia. The company became an integral part of the people within the country and
the name is often associated with its own status and symbolizes a spirit of strength along with
adaptability (Thomas and Holden 2016).
The company presently employs around 6300 people from Australia and has produced
more than seven million vehicles. The company is a part of the General Motors (GM), which is
one of the largest automobile industries in the world since 1931. The company caters to the
domestic and international clients and is an exporter of best quality engines across the globe and
provides expertise in the markets as well (Holden and Risebro 2015).
The operational activities of the company are located in Fishermans Bend, which deals
with the manufacturing of the engine parts along with administration; the Dandenong area
provides expertise in the operation of the spare parts and the Lang Lang area in Victoria along
with Elizabeth in South Australia are the places where the manufacturing plants of the company
are located (Ewing, Wagstaff and Powell 2013).
The retail sales of Holden Australia according to the 2007 market saw an increase of 14
percent of the market share, as the company was able to sell 146,680 number of car units. The
brand called Commodore alone was sold in 57,300 numbers of units and continued to be the

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most popular car of the Australian people for twelve years in a row. The plant that is located in
Elizabeth produced a total of 107,795 numbers of units out of which the exports for the company
reached to 36,354 units. Apart from this, the engine operations that are located in Victoria
produced a total of 269,421 number of four and six- cylinder engines, which was exported to
different places across the globe (Holden and Risebro 2015).
Internal environment of the company
SWOT analysis
Strengths
The company was established in 1856 and shows the legacy of its brand in the Australian
market. Most of the people can easily associate the brand with themselves, as it has served the
community for a long period. The company provides employment opportunities to more than
6000 people, which has helped them in leading a better life and helped in increasing the
economy of the country. The company is known to make minivans and Sports Utility Vehicles
(SUVs), which are preferred in the Australian and the entire market as well. The company also
has a strong image in the Australian and the New Zealand market, which has helped them in
increasing their sales and generating better revenues. The merge with General Motors has helped
the company in gaining international recognition, as the company is known all around the world
(Sharma and Strezov 2017).
Weaknesses
The company mainly focuses its sales on a regional basis and tries to be competitive in its
home and New Zealand market. The presence in the global market and the shares in the
international market for the company are negligible when compared to other manufacturers in

6MARKETING STRATEGY
the automobile industry. The weak presence of the company in the international has made it
difficult for the company to increase their sales in those particular markets (Bunyan 2015).
Opportunities
The model Chevrolet/ Holden Volt is one of the products of the company that will help
the company in increasing its volume of sales. The company needs to capitalize this opportunity
so that they can capture the international market as well. The company needs to tap the resources
that are present in the Asian and the African continents. This will help the company in increasing
their volume of sales. The company can also develop their cars in a better manner with the help
of the parent company that is General Motors, as they can provide better insights about new
models of designs to the company (Morris 2013).
Threats
The shift from the fuel cars to the electric or hybrid cars, which has increased has caused
a problem to the company, as they majorly deal with cars that dawns a trendy look to the
customers. The Korean and the Japanese car manufacturers have established their companies in a
better manner, which has caused a problem for Holden in entering in to new markets that may
provide opportunities for the company. The goodwill of the brand does not have a better reach in
all the geographical locations on the earth (Mutze 2017).

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External environment
PESTLE Analysis
Political
The government of China since the inception of 2013 is creating problems with the sale
of the foreign products, as it is encouraging the local people in the intake of the local products.
Before 2013, it was seen that the agencies that are based locally helped in encouraging the
people in purchasing foreign goods. The rules and regulations of the government have had a
huge impact on the automobile industry and made it mandatory for them to follow the safety
procedures. The government has imposed custom duties and regulations of trade, which are
complex for the marketing procedure of the company. The government has to be given a certain
sum of shares so that they can keep a check on the ongoing practices within the company along
with the taxation rules (Garcia 2017).
Economic
The fluctuations in the price of the fuel along with the demand of the customers that is
relative in nature, as they look for solutions that are economical in nature. The company needs to
conduct a thorough research of the market so that they can have a better understanding of the
high-end and the hybrid cars that are plying within the country. The prices of steel are also
fluctuating in the marketing, which will pose as a threat for the company in the Chinese market
(Shende 2014).
Social
The company has to understand the social needs of the Chinese customers so that they
can provide the customers with the choice of vehicles that may be suitable for the consumers.

8MARKETING STRATEGY
The company also needs to give preference to the social status of the people in China so that they
can be provided with the choice of cars that they want (Kapinski et al. 2014).
Technological
The technology has been advancing on a regular basis in the current market and the
Chinese economy is considered to use the latest technologies that are available to them. the
company needs to set up their manufacturing plants in the country and hire robots in the
production process so that the units that are manufactured in the company can be increased to a
great extent (Zhou et al. 2015).
Legal
The business has to be set up keeping in mind the rules and regulations that are present in
the country so that they are not violated. The laws of safety along with the custom laws have to
be followed by the company so that they can set up their business in a proper manner. Holden is
known to follow all the rules and regulations that are present in the countries and ensures that the
company is under the guidance of the laws that are present in that country (Hao 2014).
Environmental
The company has to follow the environmental laws as well, as China is highly polluted
and they need to reduce the carbon emissions so that they can operate in a successful manner.
The company needs to take the environmental pledge that is the ‘CERES Principles’, which
consists of ten points about the environmental guide to the business (Zhou et al. 2015).

9MARKETING STRATEGY
Recommendation
Target market
The company produces various kinds of vehicles such as sports vehicles along with
luxury and fuel efficient cars. This helps the buyers, as they get a wide range for selecting their
vehicles according to their purchasing power. The company tries to manufacture the products
according to the demands of the customers so that it can help them in increasing their value in
the local market. The company provides the cars to the customers according to the capacity of
the usage of the customers. The cars that are luxurious in nature are manufactured for the elite
group while the young people prefer sports cars. The middle class people are more in to cars that
are fuel efficient in nature. The cars are manufactured in the range of 1500-2000cc, which
extends up to 7000cc as well for the sports cars. These cars are all built according to the demand
that the company has in the market place (Andre et al. 2015).
The company will try to attract the all section of the customers, as the products that are
being manufactured by the company will cater to the needs and preferences of all sections of the
society. The cars that have a higher price will be preferred by the elite classes that are living in
the country, which will act as a status for them. The middle class people will be interested in the
cars that will help them in saving their costs in every month. The customers who are adventurous
will try to purchase the sports cars from the company, which will help in them in providing them
with a thrilling experience (Jahanshani et al. 2014).
New Products/ Services description
The company is trying to manufacture hybrid cars so that it can help in protecting the
environment in a better manner. The SUV vehicles that the company is manufacturing will be

10MARKETING STRATEGY
introduced in a new and upgraded manner, which will get a makeover known as Holden Special
Vehicles (HSV). This will be done with the help of the local manufacturers so that their ideas can
be taken up for completing the project. The CEO of the company has stated that these cars will
come in different varieties and models, which will help the customers in having their own
preferences. The old varieties of the cars will be launched in a new manner so that it can provide
a new design to the customers, which will help in boosting up of the sales. The company will try
to provide stiff competition to Ford in the custom car market, as they are trying to enter the
market with new varieties of products (Fang 2013).
The company can also provide valuable services to its customers in a new manner. The
company can provide free services to the high end customers along with the loyal customers if
their cars break down while driving on the road. The company can provide help lines to the
customers so that if any accidents that might take place can be handled in an efficient and a
better way. The customers can ask for help from the company and the company will provide the
customers with another car at their current location so that the customers can reach their
destinations safely. This will help the company in having a better understanding with the
customers and strengthen the relationships as well (Jahanshani et al. 2014).
Marketing mix
The marketing mix serves as a basic foundation for a company to understand and
formulate the strategies that will help them in campaigning in a new market. The analysis of the
market is based on the macro and the micro parameters, which helps in understanding the
characteristics of the brand and the presence that it has over the world (Baccarellla et al. 2014).
The marketing mix consists of the factors that are as follows:

11MARKETING STRATEGY
Product
The product that the company needs to introduce in the market will be the cars that are
compact in nature so that the traffic problems can be avoided. The cars will be produced
according to the needs and preferences of the customers and according to the rules and
regulations that are laid by the government. The standards of the environment need to be
maintained by the company so that the products can be pliable in the new market (Du, Hu and
Damangir 2015).
Price
The pricing of the cars needs to be done based on the current economic conditions so that
the customers can be interested in purchasing the products. The company needs to set the prices
according to the range of income of the middle class group of people so that they can afford to
purchase the products. This will help the company in maintaining its equilibrium of price in the
market (Raj, Sasikumar and Sriram 2013).
Place
The company needs to choose an appropriate place for launching its product so that it can
help in selling of the products in a better manner. The manufacturing and assembling plants have
to be located in a better environment so that the products that have been manufactured can be
transported to the showrooms in an efficient manner. This will help the company in increasing its
sales in the market, as the operational cost will decrease to a great extent (Colmom and
Hulsmann 2014).

12MARKETING STRATEGY
Promotion
The use of extensive advertisements has to be done by the company so that the customers
can be aware of the product that that the company wants to sells in the market. The promotional
activities will help the company in spreading awareness about the product among the customers.
The use of newspapers and magazines along with the social media platforms will help the
company in explaining the details of the products to the customers so that they can get to know
about the product in a better manner. The company needs to evaluate the effectiveness of the
electronic media as well, which will help them in attracting the prime time customers towards the
company as well (Baccarella et al. 2014).
Conclusion
Therefore it can be concluded that the company needs to set up its business in the
Chinese market with respect to the following criteria that has been mentioned. The right
customers have to be targeted so that they can help in increasing the sale of the products for the
company. The company needs to evaluate the external factors in a better manner so that they do
not face any barriers while entering the market. The rules and regulations of the country have to
be maintained in a better manner by the company, which will help them in setting up of the
company easily. The promotional activities that will help the company in spreading awareness
about the product will help in increasing the sales of the product so that the customers can get the
benefit of using the product that is being manufactured by Holden. The price that will be kept by
the company will be based on the average level of income that is present in the market so that the
customers will be willing to try out the product, which will be easy on their pockets as well.

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The company first needs to try the exporting method, which is that the products need to
be imported from Australia so that it can help in understanding the dynamics that are present in
the market.

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Reference List
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communication in the automotive industry: a content analysis of print
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Bunyan, M., 2015. A Plan for the Future of Australian Manufacturers: Developing Management,
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Garcia, D.A., 2017. Analysis of non-economic barriers for the deployment of hydrogen
technologies and infrastructures in European countries. International Journal of Hydrogen
Energy, 42(10), pp.6435-6447.
Hao, H., Ou, X., Du, J., Wang, H. and Ouyang, M., 2014. China’s electric vehicle subsidy
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2014. Study the effects of customer service and product quality on customer satisfaction and
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