Developing a Marketing Strategy: JBM's Glossy Car Market Analysis

This report provides a comprehensive marketing plan for JBM's Glossy car, a low-emission vehicle designed for the middle-class market. It includes a detailed market analysis, defining the product at core, actual, and augmented levels, identifying the target market, and justifying its selection based on cost-effectiveness and direct customer feedback. The report segments the customer profile by income, age, and lifestyle, highlighting the demand for eco-friendly and affordable cars. An external environmental analysis, using PESTLE, focuses on legal legislations like consumer protection and product liability, emphasizing the consequences of non-compliance. The competitive landscape of the electric car industry is assessed, noting the oligopolistic nature and its impact on pricing strategies. Furthermore, the report applies the law of demand to understand price-quality relationships and anticipates future economic and social conditions affecting sales. The positioning map illustrates JBM's strategy of offering quality products at affordable prices. This analysis aims to guide JBM in effectively marketing the Glossy car to its target demographic.

Market and Marketing

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Section One: Market Analysis.........................................................................................................1
Description of Glossy car at three levels, core, actual and augmented..................................1
Markets to be target................................................................................................................2
Justification for the selected market.......................................................................................2
Customer profile with the help of segmentation approach.....................................................2
Relevant market size and growth for the convertible engine Glossy car...............................3
Market trend for products and Services..................................................................................3
Section 2: External Environmental analysis....................................................................................4
Discuss the impact of legislations such as consumer protection and product liability..........4
Consequences of non-compliance of legal legislations..........................................................4
Type of competition exists in Electric car industry................................................................5
Positioning Map......................................................................................................................5
Apply law of demand and discuss the relationship between price and quality demanded for the
Glossy car...............................................................................................................................6
Pricing strategy for JBM Car Company.................................................................................6
Apply law of demand (shifting of demand curve) to anticipate future economic and social
conditions and its impact on sales..........................................................................................7
Conclusion.......................................................................................................................................8
References:.......................................................................................................................................9
Books and Journals.................................................................................................................9

Introduction
Markets and Marketing seems like a same term but they differ from each other in several
aspects but relates to each other. Market can be described as a place where buyers and sellers
meet up for the exchange of goods, services and information in exchange for considerations,
protected under the law. These set ups act as a medium which facilitate transaction in an
economy. Whereas, Marketing is a broader term which encompasses series of activities starting
from creation of goods until consumption of those value added offerings (Choi and et. al., 2020).
There is misconception that marketing is a post production activity but it starts much before the
production begins, with research and identifies the potential opportunities. JBM is a one of the
leading and innovative car company which has come up the concept of producing and selling a
car which has a low emission combustible engine and interestingly can be operated also with the
power of battery installed in it. In short, the car company has designed the car by keeping in
mind growing environmental pollution and convenience of customer. The objective of the report
is to produce a marketing plan for the Glossy car model which comes in two variant of maximum
seating capacity Glossy X for 5 passengers and Y 8 passengers, with the same features and
quality.
Main Body
Section One: Market Analysis
Description of Glossy car at three levels, core, actual and augmented
The product is not a mere tangible item that customer buys to satisfy its needs and
demands but it also consist of value which is further added at each level of the products. In order
to have a detailed understanding of the product, the product is divided into three product levels
each one of adding more values and benefits to the customer.
Core Benefit: The first and most basic level of the product is its benefits and core value which
makes it valuable for the customer and a need that customer satisfies when purchase a product.
Glossy car is a optimum solution for the people who are dreaming and looking for their own car
to move from office to home and to go on vacations, considering the need to avoid use of public
transport amidst pandemic (Spence, 2019).
Actual product: The next level of product is its tangible form and converting core benefits or
customer value into actual product. Glossy car is designed for the people of middle class for
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whom it seems difficult to own their personal car, which has two variant for small and big
families up to 8 persons. One of the salient feature of this car is it has low carbon emission
engine reducing the pollution up to 80% and have a extra feature of converting a car into electric
engine through conversion mode. The reason for this is if car does not have sufficient fuel it can
be operated with the power of battery instilled in it.
Augmented product: The third and last level of the product is augmented product which rounds
off all the three level of products built around the core value and actual product. It usually
consists of added value such as warrant, customer services and extra benefits. The Glossy car
comes with an extended warranty of 10 years with a option of batter replacement within 10 years
and provide a free services up to 30,000 kms (Tura, Keränen and Patala, 2019).
Markets to be target
For the above chosen company, the Glossy car is designed and aimed directly to the final
consumers of middle class families who are looking for cost effective and best solution to own
their personal car and travel hassle free without being worry of social gatherings and affected by
the deadly virus in the environment. Glossy car is has a several features like power steering,
power windows, automatic door locks, sensors for glass wipers, locks, seat belt signage,
automatic seat adjustment, reverse parking sensors, side, rear and front view assistance with
cameras and sensors and lots more in an affordable pricing.
Justification for the selected market
The concept behind choosing customers as a final consumer is to avoid the un-necessary cost
incurred on maintaining the extended supply chain like manufacture, wholesales, retailer and the
final consumer. JBM Car Company wants to reduce the cost incurred on storing and distributing
the goods through numerous channels and prefers to offer them directly. Another reason it, JMB
is a new company and direct feedbacks from the customer will help the company in making
necessary changes and improvements as per the needs of direct customer rather than collecting
reviews from intermediaries. And if the product is acceptable by the customers at local level, it
will be offered to retailer and big industries at mass level (Odoom and Mensah, 2019).
Customer profile with the help of segmentation approach
Customer segment for the Glossy is car is the low and middle class income people who hold
intense desire to own their personal car and prefer to travel in their own vehicle. The age group
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of the customer group is between 18-40 years old who rely for their source of income on jobs in
private sector and some of them are self-employer like instrument player, artists, writers etc.
These people need to have a comfortable and spacious car for their family members to move
from one place to another and to travel on vacations. Furthermore, the selected target group are
educated and conscious about the impact vehicles have, that’s why they prefer to buy econ-
friendly and cost effective cars. Furthermore, due to their simple and modest lifestyle they rely
more on quality aspects and aspire to get more in a low price (Johnson, Matthes and Friend,
2019).
Relevant market size and growth for the convertible engine Glossy car
There is huge potential in the market and demand in large number for the low carbon emission
and electric vehicles due to several factors such as stringent rules and regulations of government
towards carbon emission, increase in environmental concern, increase in demand for low
emission, high performance vehicle, zero emission vehicles through subsidies and tax rebates,
sustainability and initiates of companies towards responsibility of society. The global electric
market was valued at approximately $ 160 billion in 2019 and is anticipated to reach at
approximately $ 800 billion by 2027, registering a CAGR of around 22%. Gasoline being an
extensive fossil fuel is anticipated to be exhausted in future as it is not a renewable energy.
Electrical and low carbon emission vehicles are more economical than conventional vehicles. In
order to support sustainable development it is imperative to develop low carbon emission and
eco-friendly vehicles (Taiminen and Ranaweera, 2019).
Market trend for products and Services
The global electrical vehicle market is segregated into three types of vehicles such as battery
electric vehicle, hybrid electric vehicle and plug-in hybrid electric vehicle. The demand for fuel
efficient and electric vehicle is growing due to the hike in prices of diesel and petrol over the
consequences of depletion of natural resources. This is one the factor that gave rise of the
demand of fuel efficient and electrical vehicles, therefore contributing significantly towards
sustainability and economic development. Unlike, conventional fuel and gas powered vehicle,
electric vehicle makes use of electric motor engine powered with the ongoing supply of current.
Governments policies to mitigate the pollution, tax rebates, subsidies and growing concern of
people towards environment give boost to electric and fuel efficient vehicles. However,
companies like JBM is dealing with high cost of production as there is monopoly in the battery
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industry and there is limited infrastructure to develop the fuel efficient cars. Furthermore, there is
no economies of scale in the electric car industry that is why it’s costing is relatively high as
compared to conventional vehicle (Assefa and Minten, 2019).
Section 2: External Environmental analysis
Discuss the impact of legislations such as consumer protection and product liability.
In order to conduct the external environment the report has talked about the PESTLE
analysis which is an acronym for Political, economical, social, technological, environment and
legal. The major focus and prime objective of PESTLE was to understand the impact of legal
legislations in car industry in United Kingdom and look into the economic market conditions for
the Glossy car.
Legislations with regards to the automobile industry has been constantly changing for the past
few years primarily because of the high carbon footprints emitted by the vehicles and pollution
generate by high manufacturing units as they makes extensive water, electricity and energy.
Product liability act which can be claimed on the basis of several grounds such as negligence, the
consumer protection act, 1987 and the fatal incident act, 1976. The right sets out for the customer
to make am appeal against the damage suffered by customer as consequences of defective
products (Kristal, Baumgarth and Henseler, 2020). JBM Car Company checks the quality of car
on high standards parameters to ensure that consumer safety is on top priority and there is less
damage caused to customer. With the help of Six Sigma they reduce the defects rate in their
production and manufacturing products and make product secure and reliable for customer use.
Consumer protection act, 1987 aims at safeguarding the interest of customer and ensuring that
customer gets the right quality of product in a good price, which means company must deliver
minimum value of the product at a reasonable rate as per the perceived and expectation level of
customer.
Consequences of non-compliance of legal legislations
As per the UK laws if any of the car company found guilty or non compliance of customer safety
and protection law along with other laws, the company in entitles to be charged for heavy
penalties and fines (Ceyhan, 2019). The average amount of fine to paid by the companies in case
of non-compliance is approximately £150,000 or more and imprisonment or in some of the
severe cases both the consequences are faced by companies.
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Type of competition exists in Electric car industry
The competition in the economies of electric car industry is oligopoly as there are few sellers in
the market offering viable and cost effective solutions of fuel efficient and electric cars.
Companies operating in the oligopoly market have a control over its prices they charge as they
supply to a large sizable portion of market and there is mild competition. The entry into
oligopoly market is intensively high which makes it less competitive and thus profitable.
However, products offered under oligopoly market are quite similar because of this when one
company lowers down the price other is also compelled to do so in order to maintain standards of
the industry and for ongoing survival (Pashazadeh and Adel, 2019).
Section three: Marketing strategy
Positioning Map
As per the above position grid it is clear that JBM Car Company positioned itself as a quality
service and product provider at a reasonable and affordable rate for the mass customer audience
who has low-middle income. Evidently, one of the leading and prominent company in offering
low carbon emission, fuel efficient and electrical vehicle is Tesla which is owned, operated and
managed by great Entrepreneur Elon Musk. Company positioned itself as a premium brand
which is offering high and reliable products and services to the customer. Tesla’s electric cars
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High Quality
High PriceLow Price
Low Quality
Tesco’s
Electric
vehicle
JBM’s
Glossy Car

has high performance value as compared to other companies and is perceived by customer as
innovative and most trusted brand across globe (Eferin, Hohlov and Rossotto, 2019).
Apply law of demand and discuss the relationship between price and quality demanded for the
Glossy car
Figure 1 Law of Supply and Demand, 2021
Source: (Law of Supply and Demand, 2021)
From the above diagram it clear that there is equilibrium point for the Glossy car in the
automobile industry, which states that both consumer and buyer in the state of equilibrium which
means that customer can buy as much as units as possible produced by company as at a balance
price. The upward supply and downward demand sloping curve it is easy to find out that these
points will intersect at some level and supply and demand are in the balanced state. As per the
laws of demand the quantity supplied by the company will diminish as the price rises and this
happens due to the decline in marginal utility as consumer makes purchase the first units to serve
their urgent needs and use further units of goods to serve low value end needs (Choi and et. al.,
2020).
Pricing strategy for JBM Car Company
As oppose to the skimming pricing strategy, JBM car company makes use of penetration
pricing strategies with a low pricing at initial level of stage to enter into the market and gain
wider acceptance of products and services. This pricing is best for the business who are looking
for the potential customers for their business to expand their customer base and draw the
attention of customer towards their most viable and confidential products.
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Apply law of demand (shifting of demand curve) to anticipate future economic and social
conditions and its impact on sales
As is clearly seen above how change in demand and supply curve affects as the price of product
changes, however there are several other factors which makes a shift in the demand and supply
curve when the other factors including price remains constant. This leads to the shifting in
demand and makes possibly impact on the profitability of a JBM car company (Spence, 2019).
From the above graph it is clearly observed that there is shift in the demand curve due to several
factors such as rise in the price, poor performance of product, safety factors, non durability, and
availability of other substitute products. This shift in demand curve indicates that there is low
demand of electrical vehicles that in turn may leads to the decline in the sales and profitability of
a company with poor performance. Under such scenario, JBM car company will need to
introduce some other features or extra value added benefits which makes the product more
appealing like before.
Whereas if there is right shift in demand curve which clearly states that there is high in
demand of the electric cars in the market due to the several reason such as tax rebates and
subsidies, government’s strict policy towards embracing low fuel efficient vehicles, and trends
and attitude of people towards more sustainable and ethically responsible products towards
people and planet (Tura, Keränen and Patala, 2019). As a consequences of which JBM Car
Company may charge slightly high prices and enhance its profitability in the market.
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Conclusion
From the above mentioned report it has been concluded that before entering into market and
make decision to start up a business venture it is essential to have a detailed and extensive
knowledge of market, its competitors, customers and current trends prevailing in the market. In
the above conducted report it has also been studied that there are few legislations which make the
business more responsible, transparent and accountable towards the customer and society as a
whole preserving the interest of customer and helping company in operating in responsible and
ethical manner.
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References:
Books and Journals
Assefa, T.W. and Minten, B., 2019. Can agricultural traders be trusted? Evidence from urban
coffee markets in Ethiopia. Gates Open Res, 3(1178), p.1178.
Ceyhan, A., 2019. The impact of perception related social media marketing applications on
consumers’ brand loyalty and purchase intention. EMAJ: Emerging Markets
Journal, 9(1), pp.88-100.
Choi, H., and et. al., 2020. Online display advertising markets: A literature review and future
directions. Information Systems Research, 31(2), pp.556-575.
Eferin, Y., Hohlov, Y. and Rossotto, C., 2019. Digital platforms in Russia: competition between
national and foreign multi-sided platforms stimulates growth and innovation. Digital
Policy, Regulation and Governance.
Johnson, J.S., Matthes, J.M. and Friend, S.B., 2019. Interfacing and customer-facing: Sales and
marketing selling centers. Industrial Marketing Management, 77, pp.41-56.
Kristal, S., Baumgarth, C. and Henseler, J., 2020. Performative corporate brand identity in
industrial markets: The case of German prosthetics manufacturer Ottobock. Journal
of business research, 114, pp.240-253.
Odoom, R. and Mensah, P., 2019. Brand orientation and brand performance in SMEs: The
moderating effects of social media and innovation capabilities. Management
Research Review.
Pashazadeh, Y. and Adel, Z., 2019. An Analysis of How Specific Factors and Barriers Affect the
Strategy of Companies to Enter International Markets Using the Method of Structural
Equation Modeling: A Case Study of Companies Trading in Dried Fruits. Journal of
Business Administration Researches, 11(21), pp.141-161.
Spence, C., 2019. Multisensory experiential wine marketing. Food quality and preference, 71,
pp.106-116.
Taiminen, K. and Ranaweera, C., 2019. Fostering brand engagement and value-laden trusted
B2B relationships through digital content marketing: The role of brand’s
helpfulness. European Journal of Marketing.
Tura, N., Keränen, J. and Patala, S., 2019. The darker side of sustainability: Tensions from
sustainable business practices in business networks. Industrial Marketing
Management, 77, pp.221-231.
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