Analyzing Marketing Strategies of Mitsubishi Motors in the US Market

This report provides an analysis of Mitsubishi Motors' marketing strategies in the US market. It begins with an introduction to Mitsubishi Motors, its mission, and its global presence. The report then delves into the company's marketing strategies, focusing on segmentation (demographic, psychographic, behavioral, and geographic), targeting specific customer segments with products like Outlander, Lancer, and Pajero, and positioning the brand by emphasizing driving pleasure, safety, and customer satisfaction. A SWOT analysis identifies the company's strengths (customer-centric approach, strong Asian market presence), weaknesses (brand image, ethical issues), opportunities (factory automation, smart energy systems, alliance with Nissan), and threats (competition, increasing fuel costs). The report concludes with recommendations for improving marketing strategies, including investing in research and development, focusing on sales growth, adopting innovative security features, and improving product quality through strategic sourcing and JIT ordering.

MARKETING

Contents
Introduction...........................................................................................................................................2
Mitsubishi Motors.................................................................................................................................2
Marketing strategies..............................................................................................................................3
Segmentation.....................................................................................................................................3
Targeting...........................................................................................................................................4
Positioning.........................................................................................................................................4
SWOT analysis......................................................................................................................................5
Strength.............................................................................................................................................5
Weakness...........................................................................................................................................6
Opportunities.....................................................................................................................................6
Threats...............................................................................................................................................6
Recommendation...................................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

Introduction
This report brings out a discussion on marketing strategies of Mitsubishi Motors in US. The
main purpose of this discussion is to demonstrate such strategies in accordance to induce the
target market in US. Therefore, in order to identify the target market, the company undertakes
the proper understanding of segmentation, targeting and positioning of US population so that
it can formulate the effective marketing strategies. Further, the report discussed about the
company`s strengths, weaknesses, opportunities and threats to analyse the internal
environment. By analysing the internal environment, the company can use the opportunities
to overcome threats. Moreover, the company is using its strengthen to overcome the
weaknesses. At last, the report lays out recommendation so that company can position itself
in the eyes of customers (Grigolon, Reynaert, & Verboven, 2018).
Mitsubishi Motors
The company was incorporated in 1917 as a Japanese automaker. In 2016, the company was
positioned at sixteenth largest carmaker in the market with a workforce of 68300. The
company has become one of the prominent player in the global market who handles.
Mitsubishi Motors engages in producing commercial cars and heavy vehicles. Some of the
indispensable products of Mitsubishi Motors are Mitsubishi Pajero, lancer, eclipse, and
Outlander (Mitsubishi, 2017). The mission of Mitsubishi Motors is to contribute to the
development of the society. The vision of the company is related to creating a vibrant society
by realising the potential of the mobility of the product (Mitsubishi, 2017). The company
operates in eight strategic units such as business services, industrial finance, energy business,
Global infrastructural business, logistics and development, metals, chemicals, machinery, and
other living essential businesses. The company handles more than 90 countries with the help
of more than 200 offices and other 1250 subsidiaries. In 2017, the company`s market share
was lying nearly 103.686 which is 55 to 60 percent (Mitsubishi, 2017).

Marketing strategies
Recently, Mitsubishi Motors decided that the company would continue to sell the cars in US
but would stop making them in US. As the company does not wants to lose its existing
market in US. Moreover, the company announced that automaker will be retrenching from
US and will focus on Asia. US is among the largest automotive maker in the world and it is
home to various global vehicle. In 2017, it was reported that US vehicle sales reached to 17.1
million units (Select USA, 2019). To fulfil the increasing demand of US millennial, the
company has to construct the strategies to grab the market. In order to grasp the interest of the
customers with the limited stock, the company will import only those cars that are more in
trend in US. In order to increase the sales, the company should construct proper marketing
strategies. Company has to conduct STP to identify the target audience (Grigolon, Reynaert,
& Verboven, 2018).
Segmentation
Demographic- the company has various segments for its product as it offers a wide variety of
products from sports car, compact car, and road off, family car to premium car. The existing
target market caters the niche market, which considers both generation X, and also the
millennial. The company emphases on middle or upper class income people with their active
lifestyle (Grigolon, Reynaert, & Verboven, 2018). US population was generally around 32.57
crores in 2017 and it is expected to increase by 0.7 percent every year where the youngsters
are 2.11 crores approximately where it also considers children from 14 to 19 years (Durbin,
2016). Generation born 1946 to 1964 are no longer largest generation in US whereas people
between 19 to 35 people are in outnumbers so baby boomers continues to play a major role
while shaping the future marketing strategies of Mitsubishi Motors (Select USA, 2019).
Psychographic- Effective segmentation will help the company to create effective marketing
strategy. This will help to segregate the customers on the basis of their population lifestyle.

Psychographic segmentation assists to identify the perception of customers in regards to
hybrid cars.
Behavioural segmentation- The Company should focus on tech savvy customers for US
millennial. The brand competes to develop a standout image in market with superior car
designs, which look sporty, youthful, and masculine. The company can target young and
diversified people in US. Moreover, company have sufficient market to target and for its
newly designed cars, which are known as outlander PHEV because it provides high level of
comfort.
Geographically-The Company is preparing marketing strategies for US in the year 2019 and
2020. From geographic evaluation, it is seen that the demand for hybrid and luxurious cars
have been increasing among the US millennial. Moreover, the people are looking for fuel-
efficient cars with a purpose to minimise the transportation cost. Mitsubishi Motors adopts
segmentation strategies in order to fulfil the needs and demands of the US. Further, in order
to construct the marketing strategy, the company has to identify the target audience
(Grigolon, Reynaert, & Verboven, 2018).
Targeting
Targeting aims to penetrate the customer`s behaviour by inducing them to purchase the cars.
After the identification of segments, the company offers outlanders, sedan, SUV, and
hatchbacks to the young executives from both upper and middle-income level people. The
main products offered to the US market in 2019 and 2020 are Mitsubishi Eclipse, lancer,
Pajero, and outlander. For Premium SUV segment, the company should offer upper middle
executives. In order to target the potential customers, it is important to known the decision
making process and need recognition. A customer generally compares the available brands in
terms of luxury especially in US that could provide comfortable cars with least pricing as the

market do not lack substitute products. Preferences of US people while buying an
automobile-
(Source: Armstrong, 2018)
US customers generally prefer the automobile when it offers the above features. Undertaking
the retail factors and purchasing process, the best price based car in Mitsubishi Motors ranges
from 5 to 10 lakhs are Mitsubishi cedia and Lancer. For US market where the company
targets people who prefer luxurious cars that range from 15-30 lakh and the car can be pajero.
Consumers have several sources of information such as sites. The customers have started
relying on C2C websites rather than relying on third party information (Tanriverdi, & Uysal,
2015).

Positioning
After targeting the potential audience of US, the company positions the product in the eyes of
the customers by providing utmost driving pleasures, ensuring safety, satisfying the
customers with the help of Outlanders and its after sales service. Further, the company values
and analyse the customer`s feedback that is being received from US people. High-class
people would generally think of cars that can represent the status symbol and which looks for
sports car, which looks perfect as per the young preferences such as Proudia, which is a
sophisticated car and it, has been positioned as a flagship as it is dignified in the range of the
company (Claudy, Garcia, & O’Driscoll, 2015).
Outlanders offers a wide range of features without being very expensive as it is a three-row
car. Moreover, buying Outlanders gives a status symbol. Apart from Mitsubishi, consumer
analysis the characteristics of every car brand under the specific brand which brings piercing
competition such as Chevrolet, Nissan, Hyundai Motors, Tata motors and Volkswagen.
Under the list of Mitsubishi, customers have decided evoked as per the budget. It comprises
of Lancer, Outlander sport, Pajero, Mirage, and Xpander (Tanner, 2018). The positioning
situation of all the car brands indicates that Mitsubishi motors produces the cars of high
quality at low cost. The company can position itself in the minds of the customers of US, as
there is a huge population of youth. Most importantly, the companies also have started
positioning itself in the market through its product values. Moreover, the company also have
designed the cars in such a way that it can reduce the energy consumption. The company
incorporates a set of characteristics so that the products can be innovative (Mitsubishi, 2017).
SWOT analysis
Strength
One of the most important strength of Mitsubishi Motors is that it is a customer-centric
organisation, which usually focuses on customers. The company is dependent on customer`s

voice and demands feedback on the daily basis. The company was set up in 1870 and it is
involved in creating new designs that tuned with the demand of current customers especially
US people as company has been targeting youth. The company has strong presence in Asian
market especially in Japan. The high growth rate is assisted by diversification in market and
industry (Chen, Kim, & Yamaguchi, 2014).
Weakness
Even when it had taken many initiatives to transform its previous image, which is still seen as
old and expensive. Company have excessive dependency on its domestic market. The
company can opt more relevant initiatives, which changes the brand perception among US`s
customers. Mitsubishi motors have unfortunately entered into serious ethical issues especially
related to misconception of emission of data (Chen, Kim, & Yamaguchi, 2014). The
company faces critical leadership challenges that will lead to changes in top management,
which suffers from lot of risk and uncertainty among the employees. Most Mitsubishi
products lack space means it has smaller cars in sedan and SUV category (Shehzad, Ahmad,
Iqbal, Nawaz, & Usman, 2014).
Opportunities
The company has the opportunities to develop factory automation outside Asia and other
geographical areas. Smart energy system and electric appliances present a market to
Mitsubishi to expand into new sectors. It have increased the demand of elevator
infrastructure. The company has the opportunity to alliance with Nissan and it should adopt
hybrid and electric cars in countries like US or other developing countries (Thorelli, 2015).
Threats
Many factors in environment are detrimental to business growth. Whereas, they are affected
by outside threats such as competition. The company faces immense pressure from Chevrolet,

Toyota, Nissan, Hyundai etc. the company faces threat from the increasing cost of fuel and
other material practises (Zigwheels, 2018).
Recommendation
In order to improve the marketing strategies, the company has to learn from its weaknesses
and use the available opportunities to grow and develop and induce its potential customers.
Company should start investing in research and development segment so that it can expand
the product line and launch the new car models. In order to move towards the sustainable
growth in US where the company has removed its production growth, increasing the sales is
most important of particular brands. In order to attract the people who preferred those car
models that they luxurious among the US people (Whyte, and Lohmann, 2015). The company
has to strategize to boost more sales to improve the marketing strategies. Moreover, the
company can also improve the technologies in order to retain other new customers of the
country. Mitsubishi Motors should opt for innovative security characteristics in order to
upgrade the new models of hybrid that will further help to satisfy the fluctuating demands of
the customers (Rusich, and Danielis, 2015).
In order to become competitive, the company should buy the raw material from the renowned
automatic suppliers and the manufacturers. Apart from this, a company can adopt JIT order
approach so that it can improve the product quality. The company have started shipping the
operations as their core business and it is diversified in several related fields. Mitsubishi
Motors has been indulged in organisations for warehousing, insurance, and banking (Martin,
2014).
Intense competition in the automotive industry demand to attain the competitive advantages
in order to stand out of competition. Increasing competition have tough competition in terms
of sales incentives and other more effective public campaigns that has indispensable retain
market grasping and promoted sales (Citeman, 2010). The company can understand that how

seriously it has the operating results and financial standing of MMC (Microsoft Management
Console group). The pricing strategies start from 28.20 lakhs as low pricing cars named as
Pajero sport and reaches to 32.27 lakh for the latest and topmost model “Mitsubishi
Outlander.” Mitsubishi Pajero has a good quality that come up with dual tone (Citeman,
2010).
Conclusion
From the above discussion, it can concluded that there are various factors, which will affect
marketing strategies such as social, personal, and psychological factors that affects the buying
behaviour of the customers of US. While discussing the marketing concerns through
segmentation, targeting and positioning and finally analysing the company`s internal
environment through SWOT analysis, recommendation becomes crucial. Moreover, it is
important to find the target market that differs from place to place and also the designs and
models. The procedure of finding the potential customers and deciding the process of
targeting the appropriate market can be considered. With a view for recommendation,
company has to improve its cars according to the feedbacks of customers.

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