Supernova Case Study: Marketing Strategies in the Car Industry

This assignment presents a comprehensive case study of Supernova, a European car seller, focusing on its marketing strategy within the automotive industry. The paper begins with an executive summary outlining the key aspects of the automotive business, including design, engineering, and the rise of alternative energy vehicles, specifically smart cars. It then introduces the context of the European car market, highlighting the increasing demand for smart and affordable cars due to rising fuel costs and environmental concerns. The case study analyzes Supernova's background, mission, and vision, followed by a PEST (Political, Economic, Social, and Technological) analysis of the European car market. This analysis includes discussions on political stability, economic factors like the laissez-faire approach and fuel prices, social aspects such as uncertainty avoidance and the masculinity/femininity index, and technological advancements. The paper also explores market analysis, risk mitigation strategies, and the competitive landscape, examining the strategies of global players like Tesla and Honda. The study emphasizes the advantages of smart cars, such as improved gas mileage and design appeal, targeting young adults and early career-minded customers. The assignment aims to provide insights into market opportunities, entry strategies, and the competitive dynamics of the European car market, offering a detailed understanding of how Supernova positions itself within this evolving industry.

MARKETING STRATEGY 1
MARKETING STRATEGY:CASE STUDY OF SUPERNOVA
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Executive
The automotive business is a rising market encompassed of numerous subgroups which
comprise of: design, engineering, distribution, next generation manufacturing and after sell. Car
businesses are focused on controlling cost, improving efficiency and utilization of alternative
energy engines. Cars fall into several different groups centered on the fuel used including
electric, gasoline, diesel and numerous hybrid or substitute fuel cars vehicles as ethanol as well
as pooled electrical motor-heat engine drives.
This paper will analyses the marketing strategy used by numerous companies use
to gain competitive advantage over other company. Taking supernova case at the center of the
paper the research will try to gain more insights in the car business.

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Introduction
This paper focuses on market opportunities and entry strategies, particularly in the
European zone car market. The paper will present the market background aligned with earlier
market research on the ever changing car market in order to produce in-depth knowledge and
understanding for the companies who are planning to launch smart car business in Europe. The
paper will include a case study of Supernova Company in order to bring a clear image of this
evolving industry.
New form of automobiles such as smart and affordable car has been on the rise due to the
increase in the prices of fuel and well as negative environmental impacts of gasoline. These types
of cars have been considered as ideal choice for urban area travelers who want to travel through
the packed streets; saving money on gas and promoting a green environment while maintaining
the car. The new sporty, less expensive and smart car belong to the young adults, especially
college learners as well as the early career-minded customers. These types of car customers are
in the fashionable concept of the car as well as its design, tolerating all benefits of extravagance
with numerous openings for leveling the limited budget (HcHardy, 2013,PG 23).
European zone has been identified by many economics has the ideal market for the smart
car due to its high number of youths, technology, and steady rising economy. The market has
been analyzed in detail below with the help of a case study of Supernova Company.

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The company background
Supernova company a European car seller and deals in quality, unique design and
affordable cars. The offers its vast customers a wide of cars to choose from. The firm also
provides other machineries such as smart cars and bikes as they aim to fight environmental
pollution.
The company’s mission.
The company is to provide easily accessible means of transport which is environment
friendly.
The Company’s vision.
To offer unique provides with a high quality architecture, and give the customers a
chance to contribute towards the company’s design in order to eliminate cars which are
environmental friendly.
The European car market Pest analysis
Political
Political stability has been experienced in European zone.
The European zone is under stable government. HcHardy,(2013) states that “The role of
governments is increasingly vital and must take decisive action in order to assist in stabilizing
the market and rebuilding people’s confidence to take out the challenges.” Though there is an

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academic argument whether globalization ought to reduce the state’s role in offering social-
welfare protection. The European governments trade pacts has the major say in European car
market and have greatly influenced the political process of this market however the market has
been considered as stable and has potential to grow.
The neoliberal opinion of “efficiency hypothesis”, welfare government is regarded as
uncompetitive due to “increasing antagonismin the international marketplaces and the ability of
holders of capital to move production and money around the globe in search of better rates of
investment.” However, the opposing “compensation hypothesis” claims that “globalization can
increase the demands on the state to mitigate market-generated insecurity and inequality by the
welfare state growth” in order to support globalization possess and this is what is taking place in
the European car market(HcHardy,2013)
In the year 2015, most European governments supported the established Innovation and
Technology Bureau (ITB) a body responsible for framing holistic policies concerning innovation
as well as technology; reinforcing the co-ordination amongst Government, academia, industry,
and the research subdivisions; and advancing t development of innovation, machinery and
correlated, businesses in European market. This gives smart car a golden opportunity to thrive in
the market, since the innovation polices will reinforce smart car technology
The government of most European governments has introduced policies which cut the import
duties on the green technology machineries as well as the smart car. The EURO Phase policy
cuts 75 % levies on electric car, this will ease the business of smart car in Europe for new
comers.
Economic

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The economy of European car market has been termed as laissez-faire economic, it has a
policy which ensures that there is flexible and rapid economic growth. This view regularly
contains a political undertone as it overlooks the fact that different comparable Asian markets
such as Singapore and Taiwan - also experienced remarkable economic development in post-
war, however with meaningful more governmental guidelines. For the nineteenth sequential year,
European car market has maintained the first position in 2013 Index of the market Freedom
published yearly by Wall Street Journal(Gaski,2015)
To benefit from the opportunities provided by the Europe common market open door rule
since the year 1978, majority of European economic underwent rapid reform as manufacturers
are affected by new issues such as Terrorism and BREEXIT. The primarily manufacturing based
market shifted to a significant increase in high knowledge-based, value-added, service
employment. This process was noted to be very intense all through the 1980s up to1990s. The
employment in production minimized form 41.2-18.9 % while real estates, financing, business
services, and insurance increased from 4.8-13.4 %. This economic change created a big number
of higher-skilled careers in specialized services leading to the more diversified labor market in
comparison to the once somewhat standardized nature of labor with the simple pay
Even though it is up for discussion whether Europe’s government ought to take on a
bigger role in executing lasting social transfer plans to reduce inequity, the administration’s
dependence on the property levy has been extensively disapproved. European governments has
always attracted approval for its simple and low tax government from agencies such as Heritage

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Foundation, though this publication has claimed more nuanced opinion. The territory can only
operate on such a lenient tax regime because it depends on the city’s material goods market
mainly for its returns. Income from property rates, land sales, the land premiums, as well as
stamp taxes on real estate businesses are projected to contributes 25-30 % of the state’s income.
If the 16.5 % corporate profit duty paid by the developers and duty on their paid staffs is added,
then the contribution of the assets sector stretches closes to fifty percent of the government
revenue. High property rents and prices act as a concealed vertex, which makes the European
market expensive to operate a business than Heritage Foundation publication specifies.
The catalog is collected using information from GlobalPetrolPrices.com. puts European
zone on the top of list among countries with the highest fuel prices, with petrol costing around
1.9 Euros per liter, charge has gone up to 31 % since 2015.This will give the smart market an
added advantage over the fuel driven cars.
Customers are now looking for improved gas traveling distance and a performance in the
cars which they purchase. Smart cards have enhanced gas mileage, though, they usually do not
have improved performance when compared to petrol cars. This makes the smart car to be more
attractive because their fuel mileage, the customer may still buy petrol cars due to their better
performance. The smart care firms will have to develop enhanced technology to gratify customer
needs(Jafor,2016)

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Social
UNCERTAINTY AVOIDANCE INDEX (UAI)
Uncertainty Avoidance measurement expresses the level to which citizens feel uncomfortable
with ambiguity and uncertainty .Customers are not yet completely convinced by electric and
hybrid technology, this means that European countries has few firms manufacturing and
developing the technology. This can be interpreted to mean that there is less competition in the
smart car market. Since the new company focuses on producing smart car there is an open
opportunity to generate high income in this market. Due to the fact that there is a little market
rivalry, the smart car companies can have a larger customer base. The company will have, a
bigger market portion in this area however as many firms choose to shift to hybrid and electric
technology, more rivalry will rise.
MASCULINITY VERSUS FEMININITY (MAS)
The Masculinity of the demographic represents a partiality in country for attainment, bravery,
confidence, and material recompenses for success. Community is very competitive. Its
conflicting, Femininity, prefer for modesty, cooperation, modesty. The male demographic of
Europe is very diverse a good number of employed youths are males. They have also been noted
to be the biggest buyers of the cars. Their spending nature is generally inclined towards the new

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technology in the market, something which gives the smart car an added advantage in the
market.
Technological Analysis.
Among 126 surveyed markets in innovation and technology in the year 2018 Europe was
graded first. The government of has invested European zone heavily in necessary infrastructure
essential that include forming Innovation and Technology Fund (ITF) which was offered $5
billion injection funding, through this project the government further establish a new technology
hub to further improve the technology and innovation subdivision in European zone, this gives
the market car market an opportunity to coordinate with the bureau to further enhance and
produce the smart cars.
The Internet and new technology have gradually become a common medium for
customer relationship as well as marketing. The world now is focusing on producing a
technology which will enable customers to save their hard earned money, on the other hand,
consumer s has become sensitive to the environment and are focusing on purchasing
technologies which are environment friendly, this gives the smart car technology an upper hand
in any world market especially the European market(Gaski,2015)
In a few years to come, the Europe’s government will be investing billion dollars into
smart technology. Numerous automobile firms well known for building and researching smart

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car technology already launch the smart car firms will the help of the government. They have
been on the front of the smart car technology. The government has created laws which favor
outside firms, making it easy to launch a firm within a week of entry into the market. The
government has also relaxed taxes laws as well as legal market entry process for foreign firms.
The smart car energy is also prompted by the fact that the European governments is
targeting to put some numerous smart cars into on roads within the next few years. Many
companies in the recent past have focused on launching their branches in European market due
to its stable political structure. The Smart car market has been noted to have grown up to 1/3.
This simply means that there is a big opportunity for smart car companies to grow and expand, in
the European car market(Gaski,2015)
Market Analysis
The European market analysis will be carried through a market research the company
will. The company will then conduct a risk mitigation Strategy the company has a huge potential
income since the smart car has an advantage over various competitors in the market. Many car
buyers are looking for city safety, low prices, design stability, and improved technology in the
cars they buy Tesla and Honda, who are global participants in the smart car market, all provide
improved electric vehicle models which are and offer ground-breaking charging systems so that
customers can use the energy in their homes, and the solar panels which void electricity to
charge their advanced EV designs(Jafor,2016)
There are elements of smart care which the young, middle class, average earners cannot
ignore. The charge is one of the main grievances about competitors amongst customers of
passenger cars in Europe is in respects to the value. These residents want luxury so that they can

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enjoy their growing prosperity, at a reduced rate. The residents also do not want to pay out huge
lifetime payment in a high fuel-charges. The smart car normally sells at affordable prices
Porter Five (5) Forces in Europe’s Smart car market
Porter observed 5 forces which have significant effect on a company’s productivity in
any industry. The Porter Five (5) Forces are -
Bargaining Power of Suppliers
Threat of New Entrants
Bargaining Power of Buyers
Rivalry amongst the current players.
Threat from Substitute Merchandises

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Porter’s five forces. The five forces illustrate the competition in the market(Magretta,
2012)
Five competitive powers in Europe smart car, creative and affordable automobile
industry
Threats of new entry in the past two decades European car market industry market has
immensely developed. Its annual growth rate is about 15 percent, the purchasing power, has also
increased making European the best market to establish a car business European’s big car
markets attracted numerous foreign car players, the government has further complicated the
issues by placing 75% duty waiver on smart car technology this gives room for many foreign
smart car makers to establish business in the country.
Rivalry between well-known competitor’s smart car industry is observed as the
oligopoly, to evades price competition. There are both domestic and foreign automobile
businesses perform in European car market. It includes over 130 car manufactures and 2,000
components dealers. This gives the newcomers a stiff competition in the market. Since smart car
technology is a new idea there is less rivalry in the market.(Magretta, 2012)
Threat of alternative means of transport bicycle, Motorbike, and thepublic transport
system such as, train, have been considered as viable means of travelling in the city is due to
heavy charges that the city has placed on parking lot, making it expensive for many car owners.
The increasing of oil price influences automobile industry. Some potential customer may give up
buying car because of considering the oil price (Ester, 2009).