BUSINESS GAME

Assignment

Assignment

Part 1

Business Definition

Our company 'Firm A' will operate in the automobile industry, the core business of our company is to manufacture quality vehicles for our target customers. Firm A's commitment to its customers and its constant search for improvement, innovation of its products will occupy's a leading position in the market Auto Asia, firm A will have the unique advantage of adopted the best Japanese brand sold in the United States and to be number one in Europe (Alfred, 1990, pp.96-106). The target of the firm A is to become a global market leader of the automobile industry.

The target market of firm A is families, individuals, youngsters, commercial businesses and individual ladies. The reason of choosing this large target market is because there is always a demand for vehicles as it includes in the good life style and for lavish life. Catering large number of market is to earn hgh profits and become the number one leading company in the automobile industry. Firm A will have diverse number of product line. The following below table shows the different types of vehicles along with their efficiency.

Class

Mfr Sales

Retail Sales

Unit Sales

%Chg(units)

Num Vehicles.

Leader

Economy

11544

12034

914

-0.04

2

Alec

Family

31218

33491

1439

0.05

5

Efizz

Luxury

10159

11449

291

0.08

2

Beaut

Sports

4289

4654

141

0.04

1

Buzzy

AEV

0

0

0

NA

0

Minivan

3810

4086

181

0.04

1

Camini

Utility

13164

14719

640

0.07

2

Euro

Truck

12252

13480

677

0.06

2

Detonka

Total

86436

93914

4283

0.03

15

Alec

The following below, the table shows the three potential new segments for the Firm A

Customer

Segment

Vehicle Class

Est. Units(000's)

Exp. Price Range

Approx. Veh. Size

Most Important Attribute

4M

High Income(4)

Minivan

170-250

$28-42k

55-75

Interior

4S

High Income(4)

Sports

30-50

$55-83k

45-65

Styling

5A

Enterprisers(5)

AEV

60-100

$24-36k

30-50

Styling

Competitive Advantage

The marketing strategy of firm A will be very strong. The only problem was that the target range of trucks was limited. The first generation was simple and did not contain all the benefits and gadgets that the vehicles of that time were having.

On the other hand, the second generation came up with number of changes, particularly with the advancement in technology. It was more comfortable and luxurious. By bringing the second generation to the market Toyota covered the flaws of its marketing strategy and came up with powerful strategy (ShingoÌ, 1989, pp.42).

As there are many wealthy competitors are operating in the automobile industry and it will be difficult for the firm A to compete with them. The only possible area to make the competition tough for the competitors is the effective and strategic marketing. The following table shows the marketing expenditure, which will be incurred by the firm A and its competitors firm B, C, D and E.

Marketing Communications

Firm

Corp. Marketing

Brand Adv.

Brand Promo.

Total Comm.

Val Market Share

Unit Share

Firm Pref.

Firm A

108

180

90

378

0.237

0.282

0.192

Firm B

109

180

90

379

0.149

0.096

0.219

Firm C

106

180

90

376

0.158

0.115

0.194

Firm D

107

180

90

377

0.224

0.263

0.18

Firm E

114

180

90

384

0.232

0.244

0.215

Note: Dollar amounts are in millions.

Performance Objectives

The performance objective for the firm A is to be the market leader in the automobile industry and give a tough competition to is competitors. The main objective of the firm A is to provide luxury and comfort to its targeted customers so that they will become loyal with the firm A. firm A mainly focuses in providing the quality services to its targeted customers and provide such facilities, which an individual wants in his or her vehicle.

In providing the quality services and becoming the market leader of the industry, the company also set ...