PSY 490 Powerpoint Presentation

This prediction was true to some extent in Britain where consumers ' affection for the Austin Mini seemed to have been extended to the Smart

Implications for a global marketer

Even though the factory was owned by a German company , it had been located in France in to reduce costs of production . The Smart City Coupe was launched through a separate distribution network in to create a distinct brand identify . However the positioning strategy did not turn out as expected . The only market where the car seemed to enjoy a modicum of

success was in Britain which had been linked to brand loyalty towards the Austin Mini . Eventually , the management planned to introduce the car to the US market . It was expected that the market would exhibit strong demand for the fuel-efficient Smart car because of the rising Gasoline prices . However the marketing team had to consider the implications of the Dollar-to-Euro exchange rates . This was clearly a threat as the strong Euro would erode the price competitiveness of the car

Recommendations

When it comes to launching the Smart car in the US , the existing distribution network should be tapped . The cost considerations of building a separate distribution network from the ground up had already been found to be prohibitive . In this respect , the company might consider forming a joint venture with a local company which would not only facilitate access to an existing distribution network but which would also provide access to expertise about local market conditions Ultimately the company should consider moving production facilities to the local market as this would compensate for any unfavorable currency translations (cited in Hitt , 2007 . The market dynamics in the US were clearly in favor of launching the car given the rising prices of fuel and the growing demand for other small cars...