VEHICLE BRANDS IN THE UK

Vehicle Brands in the UK

Abstract

Full service agency “Oakly & Oakley” has been asked to prepare a three-year communications plan for the Skoda Prius, which is to be launched in the UK. Market analysis identified the target market, which consists of two groups: private and corporate buyers. Next to the demographic profile, three different psychographic profiles amongst the private buyer and their media usage have been identified. Consequently a communications strategy that makes use of these media has been created. The strategy will use PR, Advertising, direct mail and Personal Selling. TV, Print, Outdoor and the Internet will be the main media. The Creative strategy is designed to emphasize the unique selling points of the Prius and weaken the target markets objections. The budget has been allocated, however it is suggested to change the allocation from £3m yearly to £4m, £3m, £2m in the course of the three years. The majority of the budget will be spent on TV and print advertising.

Table of Content

Abstract2

INTRODUCTION4

LITERATURE REVIEW5

METHODOLOGY10

Research Design10

Literature Search10

ANALYSIS & DISCUSSION11

Prius Target Market11

Skoda12

SWOT Analysis13

Internal strengths13

Internal weaknesses14

External opportunities15

External threats15

Communications Mix16

CONCLUSION & RECOMMENDATION19

REFERENCES21

INTRODUCTION

The plan will focus on the launch of the Prius in the UK. The budget has been set at £9 million (£3m per annum). Traditionally single car dealers are responsible for local advertising and the promotion of their special offers. However, most manufacturers create and support national, brand image and advertising campaigns. This campaign is designed for the national UK market. The Prius has successfully been launched in Japan and the USA, and now its introduction to the European market is planned. Despite the great success of the Prius in Japan and the USA, a careful sales target has been set for Europe, considering differences in taste and culture.

LITERATURE REVIEW

Car purchases are favoured by a sound UK economy, rising disposable incomes, low cost of borrowing (low interest rates) and the introduction of a new type of license plate. However during the 90s the market growth slowed down considerably due to publicity about the much higher prices of cars in the UK compared with the rest of the EU. The Prius falls into the car sector, which is defined as follows (KeyNote, 2002): The car sector of the motor industry covers private cars of all descriptions and engine capacities, regardless the type of fuel, providing that they conform to all the regulations for road use and are designed specifically to carry people. The UK car market is mature and reached a new peak in terms of value and volume of new cars sold in 2001 (see graph). (Monopolies and Mergers Commission report, 1992). Manufacturers and their distributors started to officially reduce their selling prices in 2001.

In return for the franchise, a dealer must offer a good aftercare service, to honour the warranties (typically 3 years) that are guaranteed be the manufacturer. (Key Note, 2002) Due to the increasing competitiveness in the fleet market and the demands for price reductions from fleet buyers this segment has become less ...