MBA7003 Marketing Assignment Sample
Module code and Title: MBA7003 Marketing Assignment Sample
Introduction
The following piece of work is aimed at understanding the market offering by Lynk & Co of its product –the Lynk & Co 01, a 5-door compact crossover SUV, the Lynk & Co 04, an electric scooter. It is worth noting that the UK has been remaining a steady importer of cars from outside of their country. Apart from this, the critical role of marketing along with the evaluation of principles of organizational and environmental audits to develop strategic decisions is going to be highlighted. Discussion on the Ansoff matrix is going to be followed by proper recommendations for the company. The entire work is then going to be succeeded by concluding remarks as well.
Lynk & Co 01 Offering in the UK
Lynk & Co 01 will provide exotic experience to the customers in the UK because of its exceptional characteristics and facilities. The most exceptional feature of Lynk & Co 01 is that it has a fully digital dashboard, voice activated control and 10-inch touch screen in the vehicle. In the UK market, they are not available for this kind of cars or have a rearrest amount. It has been expected that by expanding in the UK, the model will get a huge acceptance due to its exceptional features.
A car with Advanced technology for detecting air pollution is the ultimate requirement. As the UK concentrates on importing electric vehicles from foreign markets, Lynk & Co 01 could get a better opportunity of expansion. It will be a benefit for the parents’ country and the targeted market. On one hand, the UK will import such a product that fulfills the requirements of the UK customers on the other Lynk & Co 01 will achieve a great market for individual businesses.
With time UK has increased the consumption of Battery Electric Vehicles by around 14% that indicated in upcoming time the consumption will surely develop (carmagazine-co-uk.cdn.ampproject.org, 2022). The main requirement of the UK market is to get a first car with the characteristics of an EV. Lynk & Co 01 is such a product which is a combination of fastest car with EV facilities.
Market share of Lynk & Co
It has been observed that Lynk & Co has encountered 29% market growth in the year 2021. The rapid growth in revenue indicated that the launch of Lynk & Co 01 would have a successful business expansion in the UK market. It has been estimated that around 477,000 electric cars (EVs) are already circulated in the UK which are from different countries. At this time If Lynk & Co 01 would enter the UK, it could be better for the company. There are certain domestic Industries who has manufactured the EV and circulated it in the domestic market. Simultaneously it has a huge demand for foreign EVs in the UK population. For the purpose of cutting down excessive pollution from the environment, people are eager to include EVs. In the year 2019, the EV market in the UK has a total worth of $2.76 billion (techsciresearch.com, 2021).
PESTEL Analysis
| Political | ● The government of the UK has introduced Automotive Sector Deal to support the value creation of domestically produced vehicles (Publications.parliament.uk, 2022)
● The government of the country has set an aim to achieve zero-emission by 2040 (Gov.uk, 2022) |
| Economic | ● The automotive import of the UK amounts to 30 billion GBP in 2020 (Statista.com, 2022)
● The Market demand for compressed crossover SUV in the country is around 49.7% at year (jato.com, 2022). |
| Social | ● 75% of the adults in the UK are concerned about environmental pollution (Ons.gov.uk, 2021)
● 66% of the people surveyed in the country are in favour of lower tax payments for owners of EVs vehicles as they spend a lot less time on road while travelling from one destination to another (Statista.com, 2021) |
| Technological | · The UK government has announced to invest £13 billion for supporting the development of EV cars in the UK. That can help in enhancing the market situation (trade.gov, 2021). |
| Environmental | ● The domestic transportation system in the UK accounts for 22% of greenhouse gas emissions (Assets.publishing.service.gov.uk, 2022)
● The EV charging portfolio from Autel, which is a natural result of rigorous study and development in electronics, software, manufacturing, and paying attention to the demands of their clients and partners within the automotive sector, is one of the most significant technological advances in the UK (Assets.publishing.service.gov.uk, 2022). ● They also can produce such maxi-charger wall box which will be helpful for their charging mode in any area of traveling with the help of innovative technologies of the UK. |
| Legal | ● The Environment Act 2021 is aimed at prioritising the improvement of Air Quality in the country (Legislation.gov.uk, 2021) |
Table 1: PESTEL Analysis
Current Trends
The discussion of special analysis helps in understanding the current state of the UK market for especially compact crossover SUVs and EV cars. This discussion will help Lynk & Co for analysing the large opportunities spent in the UK market. Also, the opportunities will offer Lynk & Co to understand the existing competitors of the UK market and advance the products of the industry. However, this needs to be exercised with caution as there are already a few market players that are occupying the market in the country, such as Toyota, Audi, Volkswagen, etc. Hence, Lynk & Co needs to come up with some unique and attractive marketing plans to be able to fortify its foothold in the UK market. Also, the company Lynk and Co have to ensure that the products that is served in the market are well organised and developed so that the buyers can experience the most wanted thing after buying the product.
Figure 1: Car Manufacturing Sites in the UK (Source: Bbc.com, 2019)
The above tabular data representation also shows that there is quite a huge understanding of the people concerning environmental pollution that is being caused by time taking vehicular movements. Taking advantage of fast cars contribution to lessening that factor, the majority of the citizens agreed to purchase and uses fast car if the government can reduce the tax burden on them for their contribution to the environmental sustainability of the country. The reason for this is the time that such cars would take for traveling from one place to another, resulting in less time on the road and thereby less population as well.
Key issues
There are quite a several issues that can plague the organization, Lynk & Co during its efforts to offer its existing lot of crossover SUV targeting the UK markets.
- The manufacturing of Cars inside the country dropped by a third, as per the report by the Society of Motor Manufacturers and Traders (SMMT), because production units within the country are struggling to get parts for manufacturing (Bbc.com, 2022). It is estimated that in comparison to the year 2021, the first three months of 2022 witnessed a lower number of car manufacturing in the country. It is estimated that from 306558 in 2021, it all came down to 207347 in 2022 (Bbc.com, 2022).
- Cost is a major factor for any electric vehicle industry. The battery technology is becoming the most expensive one for the electric vehicle industry. In that case for preparing an electric vehicle the most important factor is that the batteries have to be with those capacities for which that can hold a massive amount of energy. This high cost of energy can be a huge challenge for Lynk and Co in operating the industry in the UK. This issue can be resolves with proper monitoring
- The challenge that Brexit brought along has forced the government of the UK to limit import locations to obtain car parts, adding more disruptions to car production in the country (Bbc.com, 2021)
- Lynk and Co, even if it plans to import vehicles to the UK for rolling out its business, would still face some of the challenges, as identified – Vehicle approval from HMRC, and a registration fee of 55 GBP to be paid to DVLA for each vehicle (Gov.uk, 2022)
Ansoff Matrix
Lynk & Co was established in Sweden in 2016 with the aim of connecting through the internet and innovative purchasing models. The main targeted customer of this brand was young professionals who are known to use this kind of electric vehicle for reducing time consumption. This industry is consistently manufacturing all the crossover SUVs that have enough battery capacity compared to the other vehicles in the market. As an electric breaker industry, it is realized on the energy sustainability for the environmental sustainability. Ansoff Matrix will be helpful for the product expansion of this industry in the UK market.
| Market Penetration
The Ansoff matrix suggests that corporations pursue market penetration as a strategy. The approach pushes the firm to boost sales of its present product in its current market (Ansoffs, 2020). This technique aids in the expansion of the company’s market share. Furthermore, businesses might choose this technique because it is the least hazardous. Adoption tactics and personal selling can help them break into the market. For Spelling and rolling out its products in the United States Lynk & Co is using market penetration so that it can penetrate the UK market very easily and make new changes in the operation. |
Product development
The product development strategies, according to the Ansoff matrix, refer to the strategic development of the organization through which the organization will focus on new product development of crossover SUV for its existing marketplace. It is also termed product expansion strategies by Lynk & Co, and the new products will be added to the product portfolio efficiently. The new product launch may include previous product development or a new product launching similarly (Ansoffs, 2020). On the other hand, the company will adopt new marketing strategies for developing the newly introduced fast cars as well. The new product development of Lynk & Co Lynn & Co 01 helps in impacting the environmental factors gained by the organization. It can estimate that some of the products in the UK environment and the market will be positive and sustainable enough. It can say that this electric vehicle industry will invest in the r and the development through which it can make new market exposures in the UK that will help eat in reaching a new range of customers in the targeted area. |
| Market development
The strategy of market development refers to the expansion performance of the organisation in its new marketplace along with its current product segments (Ansoffs, 2020). According to the policy, the organisation demographically and geographically will expand their business in India and China, through which it will have the opportunity with huge profits from its existing market development strategies. On the other hand, Lynn & Co will focus on the product Lynn & Co 01 for the aggressive development in the market. Market development can help this business to generate the high value of the products in the market and will help in holding a more prestigious place in the UK market. |
Diversification
The strategies of diversification will help the company in introducing new products to the new marketplace through business expansion significantly. Additionally, diversification refers to the completion of new industrial development according to marketing trends (Ansoffs, 2020). The financial statements observation and its recovery also refer to the company’s automatic generation in the automobile industry and diversity strategy development significantly. On the other hand, energy solutions will be easier through market penetration strategy development by Lynn & Co motors which will increase the investment towards R&D business opportunities effectively. |
Table 2: Ansoff matrix of Lynn & Co (Author)
STP Analysis with Long-term Strategic Decisions
| Segmentation | The car market in the UK is quite huge in terms of vehicle sales units. It is estimated that around 2 million motor vehicles were sold in the UK in 2020 (Assets.publishing.service.gov.uk, 2022). However, due to the onset of the pandemic, the UK is now the 2nd largest car market in the country. The following data representation helps to better understand the industry. Lynk & Co however, needs to be concentrating more on the fast car market. The sales of EV cars were 11.6% in 2021. Contextually, the growth of interest in fast cars is the most out of that figure. |
| Targeting | The market segmentation further shows that the demand growth for fast-moving cars in the UK has outperformed the same for conventional vehicles. It is estimated that the inquiry for EVs has grown by 80% since the beginning of 2021 (Statista.com, 2021). It is estimated that around 50% of the young people in the UK are more willing to own a Lynn & Co 01 in comparison to the 25% of their parents willing to do the same (Bbc.com, 2018). Therefore, the primary buyers that Lynn & Co needs to focus on are the youths of the country. |
| Positioning | In defining a market strategy for further expansion of domestic car markets in the UK, Lynn & Co needs to focus on the pricing aspect of its Lynn & Co 01 as well. It is estimated that budget cars from Chinese manufacturers in the UK cost around 3200 GBP only (Bbc.com, 2021). Hence, this suggests that the entire marketing strategy of Lynn & Co needs to revolve around the pricing of its vehicles primarily in the markets of the UK. |
Table 3: STP Analysis
The above discussion helps to understand the segmentation of the UK market along with the identification of the target market and potential buyer group. In addition to this, the prime objective of its marketing model is also found to be oriented to keep its products at a competitive price range within the Lynn & Co 01 car market in the UK. The discussion so far is based on the recent car market sales trends as identified below –
Figure 2: Sales figure for Car units in the UK (Source: Statista.com, 2022)
The requirement for obtaining a long-term strategic direction for its Lynn & Co 01 model for business of Lynn & Co in the markets of the UK is thus defined by the aspects as stated below –
- Identified issues ‘resolution – The issues as discussed so far have proved to be helpful to understand the different flanks of the UK market that may pose a significant hindrance to the expansion of its fast car business of Lynn & Co in the UK. The pricing of present conventional vehicles in the UK markets along with the unavailability of spare parts in the domestic markets constructs a huge issue for business expansion. Complex import regulations and high energy costs to run factories are the other issues that Lynn & Co needs to confront. Mitigation of these aspects would certainly help the company to bolster its foothold in the country. For example – the company may consider creating logistic ways to bring spare parts for its vehicle from the US and may consider resorting to non-renewable energy for running its plants in the UK.
- Implementation and integration of human resources – In the division of strategic performance management planning activities, Lynn & Co needs to consider hiring more employees from the Chinese auto markets. This strategic move would open doors for the company to know more about the Chinese fast car markets and their manufacturers along with the process of manufacturing of such EVs cars in tandem with the factors that influence keeping the price of Chinese cars so low.
Recommendations
- The company needs to focus on providing customers with an experience of superior driving performance along with product reliability. As per the opinion of Coiro (2021) sentiment analysis of Lynn & Co further reveals the kind of notion that customers who are already using their cars have. The following representation shows that around 10% of mentions of the company are positive while 44% of its buyers have a positive sentiment about this company. Hence, these provide a fair share of ideas for the organisation that it also needs to focus on these areas in the UK to be able to maintain the same kind of positivity.
- The direction of the organization is to attract more customers and enhance customer experience, Lynn & Co needs to incorporate data-rich and tech-led fast car development processes. However, these innovations need to be more customer-centric than technology-centric (Mckinsey.com, 2021). The prime reason for this is to be able to identify what sort of technical innovation in their cars would be usable by most of the buyers in the country. There can be different innovative ideas that can work for Lynn & Co, such as – security aspects in an EVs car; however, they may all not have the same kind of customer acceptability in the country.
- Leadership drive with the help of creating a designation within the organizational framework, similar to a CEO for driving customer experience within Lynn & Co would be greatly beneficial for the company in its new market in the UK. Faster scalability and collection of useful customer data from each customer touchpoint of the company may prove to be crucial for attracting new customers to their fast car business segment as well as for retaining the old ones in the business.
- Further bolstering the grip of its foothold in the UK market, Lynn & Co is recommended to consider the start of a unique service in the locality that is called Flexible Ownership. Through this, the organization would be able to attract even those customers that may first not consider buying an EV vehicle but rather prefer to opt for mobility services, such as – car rental. This scheme of the company may open doors for the company to pave the way for subscription-based car service categories for business profitability as well.
- The inclusion of a bunch of benefits for customers to use in their Lynn & Co 01 of Lynn & Co cars can do a great deal to ensure that positive words for the company spread and customer experiences are also enhanced. For example – connectivity options, options of entertainment and social connectivity options along with driving security through AI in high-speed mode are great resources that may prove to be helpful for the company to attract a lot more customers in the UK as well. The following pictorial representation helps to understand the operational drivers of a company for customer experience management –
Figure 4: Customer Experience Enhancement (Source: Mckinsey.com, 2021)
- Customer experience enhancement is far more crucial than aiming for selling new cars to new customers. It is observed that the after-sales service is what a customer keeps in his mind while choosing options to buy another car (Mckinsey.com, 2019). This often becomes decisive for customers to perceive the company that provided excellent post-sales service. Hence, forgetting their EVs car services, Lynn & Co may consider offering alternative mobility options for the customer during the time his car would remain under servicing in a factory. Steps, such as these, usually, create a great impression in the minds of customers and they, in turn, may consider purchasing another car solely because of the post-sales experience from the company, concerning the offer of an alternative mode of transportation for him.
Conclusion
The above discussion helps to conclude that the role of marketing is as crucial for a company as it is for choosing a new market for its existing products. Apart from this, the consideration of aspects, such as – ethical, entrepreneurial, global, and digital further would help organizations, such as – Lynn & Co, to fortify their foothold in the fast-moving car industry of the UK. Evaluation of organizational and environmental ambiances further helps to perceive that marketing strategies, their decisions, and business objectives are equally important as developing a plan for a target market. There are quite a few recommendations suggested for the company including – product performance consistency, tech-led vehicle manufacturing, recruitment of a CEO to drive customer experience, AI secured fast driving mode, and launching subscription-based car ownership service along with providing options for remaining connected with others in the society through alternative modes of transportation.
Reference
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