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).

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Negotiating power of buyers and suppliers to emphasis on car service and cut the price
of the growing new modules, car is decreasing their undertakings on production and assembly.
The OEM is the new way that car cooperate with. Contractors to take control of the design, and
manufacturing, hence supplies are more important to the car makers. Buyers on the other hand
are looking for car with certain features which match their preferences this has forced the car
makers to build new models which match the client’s preferences. This has given the customers
an upper hand in the car industry.
Social Media Marketing Plan
An additional strategy presently used by Supernova is social media marketing plan.
Selling through application of social platforms is reflected a contemporary approach in
marketing domain besides is also a very effectual marketing plan. Numerous businesses in this
evolving market are using the social platform promotion plan such as Ford motors. Gaski, F.
John and John, R. Nevin (2015), claims that the social media advertising includes the use of
software technologies. Gaski, F. John and John, R. Nevin (2015), further claims that social
media sophisticated activities such as blogging, use of Facebook, twitter and YouTube.
Gaski, F. John and John, R. Nevin (2015), present a comprehensive instance of
Hyundai’s application of social media as advertising strategy. Gaski, F. John and John, R.
Nevin (2015), exemplify Hyundai’s application of social platform approach marketing by
introducing Hyundai’s affiliation with numerous technological companies company . Gaski, F.

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John and John, R. Nevin (2015), further states that through introducing new company, the brand
tends to build building awareness of Hyundai’s IQ city car that was released through affiliation
with new technology companies. This collaboration helped the company to produce positive
anticipation among the online car lovers community.
Griffin, R.W. and Pustay, M.W. (2015), continue by saying that Hyndai’s IQ blogging
website that was formed precisely for the smart car production. Griffin, R.W. and Pustay, M.W.
(2015), carry on through and discloses Hyundai’s upsurge in visitors on the company’s blogging
website which amplified by over 212 % as due to their connection with tech companies. Griffin,
R.W. and Pustay, M.W. (2015), on how this marketing plan has enabled Hyundai to spread its
ideas to new viewers by application of substitute social media marketing methods which
includes blog posting, on popular wensites such Twitter and Flickr. Griffin, R.W. and Pustay,
M.W. (2015), conclude by speaking about supplementary technique applied by Hyundai’s on
the social platform w world is the incorporation of the company’s online broadcasting studio
with social broadcasting channels such as Flicker, Twitter and YouTube. The outcome of this
particular marketing method incorporation has permitted the online community to get Hyundai’s
images, activities, and videos. Supernova firm has increased their online presence in order to
come close to the customers and give them an opportunity to create a friendly platform for
collaboration.
Trade-Show Marketing Plan

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Another strategy applied by Supernova is the trade show promotion plan. This marketing
plan is applied by numerous renowned automotive businesses in car market. Trade show
promotion includes businesses showing their first-hand products and service(s). Griffin, R.W.
and Pustay, M.W. (2015), defines trade show selling as individual to individual, and information
exchange. Griffin, R.W. and Pustay, M.W. (2015), continues by declaring that the trade shows
include the collecting and dispersal of data. Supernova applies this specific plan to display new
car .
A good example of Supernova trade show promotion plan is their partnership with a
numerous European exhibitions. The collaboration between these two businesses where they
show galleries and video material of Supernova’s shows. These two companies have worked
together for a very long time to help them build their brand.
Gorilla market and Pricing
Supernova uses unconventional marketing strategy to promote their new products, their
main intention is to grab the clients attention without prior knowledge. The company also
ensures that they produce pocket friendly products in order to allow more customers to purchase
their goods.
Smart care Market segmentation

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Demographic
An important variable of the demographic subdivision is age. The consumer wants or
needs varies with the age. Europe as of the 2011, the number of youths 15 to 24 made up 12.4
% of Europe’s population. Majority of the youth population are university graduates with a
stable income. The smart car technology has a potential market among the youths of Europe ,
majority of the youths have high preferences for new technology this will give smart car dealers
and added advantages over the fuel driven cars.
Psychographics
High adrenalin brave 25-35 years old males, with hostile conduct, who lacks patience
interested in new technology and belong to the middle class
This discusses the 'personality as well as the emotions' founded on the behavior,
connected to buying choices, including, lifestyle, attitudes, risk aversion, personality, hobbies as
well as television. Males aged 25-35 would be the most targeted demographic in the smart car
market this is due to the fact that they have hostile behaviors and lack patience. The car model
would fit the budget of middle income earners especially males of the above mentioned age
group. They are now to lack patience especially when it comes to matters relating to
transportation, many would prefer a small car which could navigate the city easily.
Conclusion

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.In Conclusion, the smart car company looking to grow their market share into new areas
especially the Europe’s market. There is need to focus on market research in order to analyze the
market risk and know how to handle them. After much assessment, it has been noted that the
smart care company would reap high benefits in Europe market. Europe is a territory which it is
growing very first with high GDP and PDI, meaning the residents are more and more having
surplus income to spend. Even though its GDP growth began to go down, forecasts indicate that
the GDP will pick in around five years to come. The auto manufacturing sector has undergone
slow growth, with a reduced sales number, until late 2018 where the car market has been
predicted to pick up once again. This provides the smart car makers a better opportunity to get to
know the Europe’s smart car market niche which is the environmentally friendly and the model
superior design may be segregated in case there is a high competition in the market. The smart
car niche market has been noted to have a huge growth potential in the Europe region, this has
been numerous research conducted by various markets.
The smart card provides a unique and sleek design and various features which offers
which provides the buyer with comfort and safety they need an affordable price, which no other
car dealer is providing. Additionally, the smart card technology is considered as much far better
and advanced to other car competitors. The smart car safety and other features have been cited
various times by residents as features they would like to get in the cars they are purchasing.
Residents also stated their necessity for low fuel usage cars, with better rates, as well as
affordable car maintenance services which match the customer need for continuous affordability
and transportation. The market for smart is predicted to grow in the next fives years to come, and
European car market has a very few smart car dealers this offer a great opportunity for smart car
makers to launch the smart car companies in Europe.

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Commendations to Develop Supernova’s Marketing Plans
Improvement of Pricing Marketing plan
Founded on the results, supernova could enhance their pricing marketing plan by firstly selling
their vehicles at a low fee then gradually cumulating their values as soon as they have build a
strong customers base on their new car they release. Companies apply the penetration plan to
reach widespread marketplace share in the marketplace they are take part in. Hence companies
such as Supernova applying the penetration pricing plan are trying to establish a robust
customers base which supernova achieved in numerous years with their numerous cars they
have launched.
Gaski, F. John and John, R. Nevin (2015), address this subject through writing about the
challenges which can rise from the penetration pricing plan. Jafor, Chowdhury (2016), tackle
the subject of clienteles who are attracted to businesses like Supernova based on their pricing
where they highpoint such clienteles as being the very first to switch once a new competitor
arrives in the market. Jafor, Chowdhury (2016), state that challenging your opponents based
on the issue of price is not a sustainable competitive plan to have. Although Supernova has been
a leading automotive players for numerous years the company is reluctant to take such safety
measures into consideration since they could find themselves entangled in such cases. The plan
of begging with low fee then slowing cumulating the price may help stand the business’s
competitive edge for many years.
Guerrilla Marketing Strategy Improvement

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Supernova could develop their guerrilla promotion plan by assimilating a guerrilla
marketing plan with the social media marketing plan. Gaski, F. John and John, R. Nevin (2015),
claims that the efficiency of using the two marketing plans. Gaski, F. John and John, R. Nevin
(2015), shows how guerrilla marketing plan can able function together with the social media
promotion plan by observing the cost part of uniting the two promotion approaches. They
disclose that producing social media needs zero fees. Gaski, F. John and John, R. Nevin (2015)
further claims that all guerrilla salespersons should use this notion as it offers guerrilla venders
such as supernova a chance to maximize their product to a broader customers base.
Plans to improve Social Media Marketing Plan
Founded on the results Supernova has already built a concrete social media promotion
plan. However Supernova could enhance their social media advertising plan as a technique to
know more about their opponents.
Gaski, F. John and John, R. Nevin (2015), shows how the social platform promotion plan
can valuable tool when evaluating your rivals. Gaski, F. John and John, R. Nevin (2015), deliver
a understanding on how social marketing plan is a modern tool for observing and collecting data

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about challengers in company’s market segments. Furthermore Gaski, F. John and John, R.
Nevin (2015), further claims that there are numerous type of data which can be collected about
opponents where data can comprise of strengths ,competitor brands, faults and premeditated
plans. Moreover Gaski, F. John and John, R. Nevin (2015), present an additional product where
they state corporations such as supernova can hire specialist companies to evaluate opponents on
their behalf. If they can get data ,it would offer supernova with ammo that they may then apply
to understand of the marketplace they are in.

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