Inteva Closures: A Critical Evaluation of Marketing Strategies

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This report provides a critical evaluation of the marketing mix of Inteva Closures, an automotive supplier. The study examines the importance of product, price, place, and promotion strategies in the success of the company, particularly in emerging and developing markets. The report analyzes Inteva's four product lines (Motor and Electronics System, Closures System, Door System, and Roof System) and highlights the limitations in its current marketing approach, such as low brand recognition. It delves into the 4Ps of the marketing mix, assessing Inteva's strategies in each area and suggesting improvements, including mass marketing and personal selling, to enhance performance and market penetration. The report also discusses marketing mix models like 7Ps, 8Ps, and 4Cs and recommends the 4Ps model for Inteva, concluding with recommendations based on Ansoff Matrix for market penetration, development, product development, and diversification strategies.
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J a n u a r y 1 6 , 2 0 1 9
Running head: CRITICAL EVALUATION OF MARKETING MIX
Inteva closures marketing
Strategy in europe
CRITICAL
EVALUATION OF
MARKETING MIX
Authors: EX18084 / EX18XXX
Unit: Developing Marketing Presence
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Inteva Products – Salonta Romanian Operations Page 8
January 16, 2019 [Inteva closures marketing Strategy in europe]
Executive Summary
The intent of this study is to examine the importance of all the factors of marketing mix that
is product, price, place, and promotion in the success or failure of the company that Inteva in
emerging as well as developing markets. The marketing strategies are very essential for a
business to undertake in order to represent the features and benefits offered by the company's
products in comparison to the competitors' product.
The study is focused towards recommending improvements required in the marketing mix of
Inteva Products that could eventually enhance its performance of the organization. As per the
marketing mix, it has been analysed that company is involved in the manufacturing of four
product lines that are Motor and Electronics System, Closures System, Door System, and
Roof System. Besides this, the Salonta branch of Inteva product is not allowed to get
involved in the price negotiation with the customers. Inteva Products has worldwide alliance
with OEM production with technical centres and manufacturing operations on five continents
that are Europe, South America, Africa, North America, and Asia. However, company is not
able to promote its services in the market effectively due to which it has low brand
recognition. Therefore, in order to increase brand recognition report has suggested company
to adopt mass marketing strategies that is advertisement through television, radio, hoardings,
etc. In addition, company must get involved in the personal selling in order to have a verbal
and personal contact with the clients by using sales representatives.
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Inteva Products – Salonta Romanian Operations Page 8
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Table of Contents
Executive Summary...................................................................................................................1
Table of Contents.......................................................................................................................2
Introduction................................................................................................................................3
Marketing Mix Models Discussion........................................................................................3
7Ps......................................................................................................................................3
8Ps......................................................................................................................................4
Marketing Mix 4Cs............................................................................................................4
Market Mix (4Ps)...............................................................................................................5
Inteva Marketing Mix Analysis.................................................................................................6
Product Strategy of Inteva Products...................................................................................6
Price Strategy of Inteva Products.....................................................................................12
Place Strategy of Inteva Products....................................................................................12
Promotion Strategy of Inteva Products............................................................................13
Marketing Improvement Suggestions......................................................................................15
Product.............................................................................................................................15
Price..................................................................................................................................16
Place.................................................................................................................................17
Promotion.........................................................................................................................18
Ansoff Matrix...................................................................................................................19
Market Penetration Strategy.............................................................................................19
Market Development........................................................................................................19
Product Development Strategy........................................................................................19
Diversification Strategy...................................................................................................20
Conclusion................................................................................................................................20
References................................................................................................................................21
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January 16, 2019 [Inteva closures marketing Strategy in europe]
Introduction
A marketing model supports an organization to create services and products with best efforts
for earning a profit. It is because the strategy of marketing starts with research, considering
the demand of the target market, strategies adopted by the competitors, and the recent trends
in the market. With the help of this information, a business can define the numerous types of
benefits that are needed by the clients and customers, at what price and the way business can
differentiate its services form the competitors. Besides this, it supports business in
establishing an image and brand in the market (Naert and Leeflang, 2013). The aim of the
study is to represent the importance of marketing models to establish business and enhance its
performance in the market. The study will highlight the application of marketing mix that is
product, price, place, and promotion in Inteva Products. Besides this, SWOT analysis is one
of the essential internal environmental analysis frameworks that support business in
identifying the internal strength, weakness, and opportunities of the business. Moreover, the
models and strategies adopted by the company will be evaluated and rational suggestions will
be provided that can support the company in enhancing its performance in the industry.
Marketing Mix Models Discussion
There are multiples marketing models currently on the market. The most popular are : the
7Ps, the 8Ps, 4Cs, the 4Ps.
7Ps
The 4Ps are presented by the businesses at the time when it is likely to vend its product, in
place of services. Over time, Pitner and Booms included three more extended service mixes
that are People, Physical Evidence, and Processes.
People
Marketing mix is comprised of people, which is focused towards discovering the number of
people in the target market that are in need of services presented by the business (Yasanallah
and Vahid, 2012).
Physical Evidence
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Physical Evidence are said to be the material part of every service such as logos, business
reports, website, buildings, signs, etc.
Processes
The processes and system of the business influence the execution of the service, therefore, it
is very important for the business to ensure a well-tailored process in order to reduce the costs
(Alnaser, Ghani and Rahi, 2017).
8Ps
Productivity
Productivity is less related with the company’s internal capability that the capability of offer
the customers well. Productivity is combined with the quality supplied by the business must
be always best.
Marketing Mix 4Cs
The 4Cs (Cost, Communication, Customer, and Convenience) allow company to think about
the customer interest more than its own interest or benefit.
Customer
Under this aspect, company only focuses on the selling the products that are required by the
customers. This reflects that company only analyses the demand and behaviour of the
customer.
Cost
Cost variable provide detailed information regarding customer in comparison to the price
variable. Price is said to be the amount that customer is ready to pay for the product and cost
is the amount that goes into the service or good production.
Communication
Communication is the activity that is focused towards maintaining relationship with the
consumer with the major focus on its demand and lifestyle.
Convenience
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Convenience is the element of marketing mix that is focused towards making it simple, fast,
and easy for the customers to avail the services.
Given all the above marketing mix models, and considering the nature of the chosen
company, the most appropriate model to use to analyse its marketing strategy is the 4Ps.
Market Mix (4Ps)
The report will be majorly based on the marketing mix that is 4Ps. The marketing mix is said
to be a set of tactics and strategies framed by a business to promote its brand or products in
the target market. The 4Ps make up the marketing mix that is product, price, place, and
promotion (Išoraitė, 2016).
Product
Product is an item that is presented in the market to sell. The product should offer a minimum
level of value, or else even the excellent work on another marketing mix element will not
provide benefits to the business.
Price
Price is the amount asked by the business from its target customer in exchange of product
offered.
Place
Place is said to be a point of sale. In all the industries, getting the attraction of the customers
and encouraging them to purchase the product is the main agenda of place or good
distribution strategy.
Promotion
Promotion is comprised of all the activities undertaken in order to make product visible to the
customer (Bridoux and Kurki, 2014).
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Inteva Marketing Mix Analysis
Inteva Products is considered the largest supplier of automotive in the world. It is one of the
original equipment manufacturers in the industry. Headquarter of the company is in trop,
Michigan and operate around 50 sites in five continents. The company is concentrated
towards offering high quality, on a budget, and on time, Inteva possesses worldwide
resources for manufacturing, customer, and engineering services, systematized around four
main product lines that is Roof Systems, Interiors System, Motor and Electronic System, and
Closure Systems (Inteva Products, 2019).
Inteva Products is involved in the intensely competitive industry, which is regularly throwing
tough challenges on the doorsteps of the business in order to affect the performance of the
company in the industry. Inteva Product is possessed with one of the most talented
management team that is focused on framing different policies and strategies to effectively
deal with the competition and offer the best services to its clients. The company has planned
a set of tactics and strategies that support in attaining the objective of the business that is to
serve customers in the best possible manner. The strategies and tactics used by the Inteva
Product to attract potential customers are:
Product Strategy of Inteva Products
Inteva Products offers different types of products that are directed towards middle class and
premium class customers. The company is focused towards meeting the requirement and
expectations of the consumers by applying quality practices that can regularly enhance their
procedures and products while upholding a safe and environmentally responsible work area
(Bloomberg, 2019).
Inteva has four product lines that are Motor and Electronics System, Closures System, Door
System, and Roof System (Diop, Riguaud and Cornuault, 2017).
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Closure System
The Closure System on Inteva includes Door System and Latching Systems offering best
services to the worldwide consumers. The Latching System of Inteva comprises compartment
latches, electronic actuators, and associated strikers that provide viable functionality,
strength, and performance with diminished package size, cost, and weight (Inteva Products,
2019). In Door Systems portfolio, Inteva manufactures, engineers, and designs products that
involve the range of window regulators and integrated composite door modules and are
distributed to 2 OEM consumers that are Suzuki and Dacia. Besides this, it is working with 4
intercompany consumers (Rychnov, Inteva Zhengjiang, Matamoros, and Sully sur Loire)
Latching System,
Inteva is known as the top manufacturer and supplier of the latch, creating around 42 million
latches yearly. In order to date their expert engineering and manufacturing teams have created
around 2 billion latches offering services to more than 50 consumers globally. Their wide
global engineering and manufacturing footprint offers continuous support for the consumers
across the world (Autonomous vehicles, 2015). Inteva offer best sound performance that is
desired by the customers in their vehicle. The competitive design of the company offers
numerous benefits comprising:
Improved crash value
Exterior styling flexibility
Compliance of numerous requirement of the consumer for use on lift gates, sliding
doors, side doors, end gates, and cargo doors
Low mass and compact size with high strength capability
Enhanced durability
Other latching systems products comprise:
Liftgate Latches
Strikers
Side Door Latches
Hood Latches
Sliding Door Latches
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Compartment Latches
Decklid Latches
Source [(Inteva Products, 2019)]
Latch category is also categorized into 3 family types (Rear versions, passenger version, and
driver version), 4 functionality types (Super lock safe version, ECL-Electrical Child Lock
button, Central Door Locking type (without safe), and MCL -Mechanical Child Lock button).
Front left driver latches It splits into two with safe and without
safe
Front Right Passenger latches safe and without safe
Rear left latches It split into two i.e. Electrical Child Lock
button and Mechanical Child Lock button
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Door Systems
Inteva Products has a strong legacy of around 95 years of experience in door systems, gears,
and modules. To date, company has designed, assembled, and produced more than 600
million window lift systems and 38 million door modules across South America, Europe, and
North America.
Inteva is considered as the leader of the industry in terms of door module innovation,
establishing the first hybrid door module and all composite door modules in the market.
Inteva Product is regularly raising the bar in terms of value-added innovation that enhanced
reliability and performance. Company has advanced door module and window regulator
activities are presently concentrated on the utilization of advanced plastics and addition for
piece-cost savings, high savings for fuel efficiency and decreasing system variations for
enhanced performance (Ogri, Okwong and Etim, 2013).
Inteva Products is the trusted and proven with key experience in the integrated sub-systems
comprising:
Cables
Window Regulators
Door Trim (module based)
Door Modules (Inteva Products, 2019)
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Door Handles
Latching system, handle, and lock
Power and Signal distribution systems
Side Mirror actuators
Structural components
Audio systems
Source [(Inteva Products, 2019)]
Roof System
At present date, Inteva is using advanced technologies in order to fulfill the needs of the top
automakers in all the size, configuration, and shapes while sharing its advanced growth
notions and future vision of the sunroof in autonomous and electric vehicles. Across the
world, the 20-plus roof slides of Inteva is dedicated to reducing mass and noise while
increasing body strength, styling flexibility, opening size, and durability (Inteva Products,
2019).
Source [(Inteva Products, 2019)]
Motor & Electronic System
With the progressive internal development competence, Motors and Electronics product line
of Inteva provide a variety of well-organized and robust electric motors for motorized and
light-duty customer applications (Inteva Products, 2019).
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Electronics
Integrated Anti-Squeeze Systems
Electronic Door Control Modules
Motors
Rollo-Shade Motors
Window Lift motors
Seat Motors
Sunroof motors
Source [(Inteva Products, 2019)]
In a year, Inteva produces 10 Million Window Lift Systems, 4.5 Million Yards of interterm, 4
Million Roof Modules, 700,000 Cockpits, 3 Million Door Modules, 500,000 Consoles, 6
Million Interior Components, 20 Million Motor, and Electronics Systems. Besides this
company, every day provides 125,000 Latches, which is around 45 Million Latches in a Year
(Inteva Products, 2019).
In Salonta Market Inteva offers, its services to four consumers that are VW Group, Dacia,
Renault Nissan Group, and PSA Group with 10-product lines offered to multiple locations of
the customers in Europe.
Packaging
Packaging of different tools and equipment of car is performed under struck supervision of
the management team such that product can be protected from any kind of damage. Some of
the details of different product packaging is presented below:
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