Infiniti case study - 3025 Words

Infiniti case study (Case Study Sample) Content: INFINITI CASE STUDYBy Student NameInstructorCourseDateGeneral Introduction As a new player in the luxury market, Infiniti must build its reputation in the market through an effective marketing campaign (Baker and Hart 2008). The success of any company is pegged on the right strategy to outsmart the competition and continue building market share. For Infiniti, the choice of a marketing strategy, communication tactics and differentiation are all aimed at creating an impact in the market (Siedel and Haapio 2012). This paper will evaluate the marketing strategy, differentiation approach as well as the communication tactics pursued by the company in an effort to make an impact in the luxury car market.Question 1By initially associating itself with Formula one racing, do you feel that this is advantageous, or might it pose a problem to Infiniti in the future?Introduction Formula one racing is a favoured sport among the people in the US. It is also watched throughout the wor ld and this makes it a good place for a new product to make an impact in the market. The huge crowds, that is attracted in the Formula one event, carets an opportunity for the company to inform and showcase the capabilities of the vehicle. The many crowds are composed of many age groups that can have different preferences towards the products that are being advertised (Baker and Hart 2008). The exposure of the products of Infiniti especially automobiles can be advertised greatly in Formula one (Santee 2011). In choosing Formula one, Infiniti will have to forego other audiences since not all people subscribe to Formula one. Literature review Strategy is paramount to the growth in the marketplace. It helps a company achieve a competitive edge in the market and position the brand in the minds of customers to achieve a competitive position. According to Ferrell and Hartline (2008) Formula 1 racing has the largest global reach in terms of race venues and races on road courses Formula 1 i s an open-wheel series that has the greatest global reach in terms of race venues and races exclusively on road courses (Ferrell and Hartline 2008). Therefore, the company is able to reach a wider audience of spectators globally. According to Batra (2009), the use of the Formula one platform would help the company create awareness of the new car in addition to stimulating a trial purchase perhaps of a new brand (p. 138). The goal of advertising is to get a brand to be more prominent in peoples minds so that it is the choice in those no-thought choices (Batra 2009, p. 138).Answering QuestionThe marketing strategy used by the company was to advertise the car through formula one. The advertising on the Formula one racing especially in partnership with Red Bull racing creates a synergy that has ensured the Nissan Companys success (Siedel and Haapio 2012, Porter 2008). This is in contrast to the company marketing its brand alone. Formula is an international undertaking and this gives the company a wider audience to promote its product. Thus, in using various communication tactics, the company is able to advertise its product to the potential buyers, and use market positioning and targeting to get to the target populations around the globe (Ellis et al 2011, Porter 2008). Therefore, the company needs to study the company well if it is to gain from promotions on the Formula 1 racing. The association with Formula 1 champion gives The Company a boost since most fans stick with the races that involve certain champions. In the choice of Formula 1 as a marketing venture, the company has the advantage of integrating its marketing to deal with many competitors and create a competitive advantage over its competitors. Infiniti has collaborated with red bull racing to market its product in the Formula one racing (Baker and Hart 2008). Therefore, racing becomes a very important part since most of the population that go for the Formula one racing may also be interested in cars. The company deals with luxury cars and thus needs to attract the high-end market as compared to the ordinary citizen. Entering into the market with Formula1 racing is a welcome advancement in its promotion but this will mean that other sectors of advertising will be left out. The company thus needs to rethink it promotional strategy to venture into other market to be effective. Critical analysis Formula one racing has a large following and many companies use the Formula one racing as a platform to advertise their products. The company can reach markets that it had no access there before. It is an effective strategy to reach a market and demonstrate the capabilities of the new car. Formula 1 racing is not embraced globally as it is locally (Siedel and Haapio 2012). Therefore, Infiniti has to come up with various areas where it can partners with racing companies to provide sponsorships and increase the awareness of its brands. This becomes important especially in those countries th at do not have Formula 1 racing or where such stations are banned. However, the Formula one should not be the only focus for the company. Infiniti should explore various other events to create awareness of its brands, including corporate social responsibility initiative and sponsoring well-known rally drivers.Conclusions The advertising using Formula is a welcome advancement that has enabled the Nissan Company to advertise its Infiniti brand quite well. The partnership with red bull racing has proved to be quite effective since it has associated itself with one of the champions of Formula 1 racing. Thus, advertising on Formula racing has proved to be a good venture towards increasing sales for the company. The partnership with red bull racing creates a synergy that enables the Infiniti brand to obtain higher results than if the company worked alone. Nissan should venture into the different racing events that feature cars like the Nascar and motorbike racing. This will increase its m arket since the brand will reach a larger audience.Question 2Why do you feel that Nissan needed to market its premium range of vehicles under the name of Infiniti, rather than simply using the established Nissan brand name?IntroductionNissan is a renowned company that has produced many brands in the market. In order to produce a different brand of cars it has used a different name in its latest brand. The proposition of using a different name results because the company may not want the product to be associated with earlier brands of the Nissan Company. The introduction of a new name creates curiosity in the market (Baker and Hart 2008, Potter Biukovic 2010). This differentiation strategy position the Infiniti as a premium car manufacturer, distinct from other Nissan products with an appeal to people seeking luxurious products. Therefore, the introduction of a new name is to isolate it from any influence from the other Nissan brands and appeal to a unique segment of the market.Lite rature reviewThe Nissan Company has been ranked as the six largest automaker in the world falling behind Hyundai, Toyota, Volkswagen, General Motors, and Ford Company.The brand name gives delineates the car discreetly from other brands that are made by the Nissan Company. According to Cant (2006), choosing a brand name determines the success of the brand on the market. The brand name should have a more concise description of the car (Cant 2006). Lamb (2012) suggests that the use of one brand name helps greater identification of the product. The name Infiniti is easy to pronounce internationally and cannot be mistaken for another brand (Cant, Strydom and Jooste 2009, Porter 2008).A company cannot meet the needs of every segment of the market. The role of the marketing department is to anticipate demand and develop products that meet the expectations of the identified target group. Striving to satisfy or meet the needs of the whole market might completely drain a companys resource (Sa hai and Lall 2009, Siedel and Haapio 2012). Therefore, for any company to be effective in the market, it must target specific groups to meet the objectives of the company. Because of this, products differentiation becomes critical for the company to identify unique products that can be sold to specific segments.Answering Question A brand name is very important in advertising a car. It will determine the failure or success of the Company that produces the product (Santee 2011). Many brands like Mercedes, BMW, Hyundai and Renault have established themselves as the main luxury brands (Siedel and Haapio 2012, Potter Biukovic 2010). The maintenance of a high quality has enabled them to rule the market for a long time. Thus in choosing a brand name and keeping with quality is important to a company. The brand name marches with the features that the car exhibits. Infiniti brings a sense of infinity, which cannot be defined and does not have an end (Kotler 2008, Cant, Strydom and Jooste 20 09).).The choice of the brand name Infiniti instead of Nissan is to differentiate the brand totally from other brands the Nissan Company makes. This implies that the car has been made by the Nissan Company but is very different from the products that are produced by the company. This gives the car a different outlook from the other brands since one cannot associate it with the other brands. The brand stands on its own and can be judged according to its unique features and capabilities. Critical analysis Since it is a luxury brand, there is need to use a different name apart from that which has been used in making the Nissan brands (Kotler 2008, Potter Biukovic 2010). The name introduces a new brand that has not existed before in the market. Coming from a company that is successful in the automobile sector makes it to have an added advant...