The aim of this report is to provide additional key information with respect to using a UK advert in the Poland market in its current form. The idea of globalization is found to exist in Poland yet there is still a strong culture which affects buying decisions. In the UK context the advert is found to attract both genders. We will recommend which elements to standardize and which to localize. The recommendations are based on secondary market research data of Poland.
The advert chosen is by Alfa Romeo which looks at the Giulietta car. The assessment needed is whether or not the UK advert will work within Poland. Firstly, the UK market will be analysed and we will analyze how the advert works in the UK context. The Poland market analysis will help us to determine which aspects to change i.e. localize. The factors we will consider are the lifestyle differences and perceptual differences.
Esteve and Requena (2006) suggest there is equilibrium in the UK between advertising and sales. The firms in the UK that supply vehicles spend a proportion of their budget on advertising because the purchase of a car is the second highest spend for most consumers. The industry firms believe that advertising can change perceptions of a particular brand. One example is Skoda, initially it was a cheap budget car with a poor reputation, through careful advertising by Volkswagen has changed the perception to a more reliable car based on a Volkswagen platform.
Profit maximizers increase advertising in their marketing strategy rather cutting prices when price demand becomes inelastic. During a launch phase advertising informs customers demand becomes inelastic and the spending can be cut but will not stop. Firm interdependence exists as firms mimic the activities of others within the same market segments. Esteve and Requena (2006) find that too much information changes buyers' minds during a buying phase and they have to be continually targeted. Advertising in small car segments reached £19 per £1000 during 2009 for some manufacturers.
Tags: Poland market, globalization, Alfa Romeo, Esteve and Requena, marketing strategy.
[...] 7.0 - Poland advert analysis The advert in its layout can be standardised as shown below. The price is based on cost yet leasing is dependent on the market, much higher in the UK but cheaper prices in the Poland. The distribution channel for Alfa Romeo is interesting, the car advert can state “book a test drive at your local Fiat dealership”, the majority of people will remember dealership locations. In this case it is also cheaper for Fiat to use its subsidiary Alfa Romeo. [...]
[...] The consumption figures will be against a rival in the market place. In English: The “Best new engine of the year” will be used to symbolise reliability. am Giulietta,” this is to symbolise the cars individuality in the market place. In Polish The slogan “without heart we are machines” will be used in Polish as well as best in class euro ncap 5 star rating years of Alfa Romeo design, Alfa DNA driving system, lowest co2 emissions, superior fuel economy and fastest 0-60mph time in class. [...]
[...] http://www.volkswagenag.com/vwag/gb2007/content/en/management_report/bus iness_development.html Appendix the advert in the UK market Appendix the advert in Poland Appendix the UK market SOURCE: ECONOMIC GROWTH Percentage change in GDP http://www.volkswagenag.com/vwag/gb2007/content/en/management_report/busines s_development.html Source:http://www.stratfor.com/memberships/143300/analysis/20090801_recessio n_central_europe_part_1_armageddon_averted Source: http://seekingalpha.com/article/136927-growth-outlook-for-central- europe Appendix the UK market, Exchange rate movements from december 2006 to december 2007 Source:http://www.volkswagenag.com/vwag/gb2007/content/en/management_report/ business_development.html Economic Growth in the UK economy Source: Office of National Statistics http://www.statistics.gov.uk/cci/nugget.asp?id=192 Appendix Poland market analysis. Source for all three : http://www.polishmarket.com/66219/Poland__8217_s_auto_industry_and_the_globa l_economic_slowdown.shtml Appendix Poland Market Analysis Source : http://www.polishmarket.com/66219/Poland__8217_s_auto_industry_and_the_globa l_economic_slowdown.shtml Source : http://www.polishmarket.com/66219/Poland__8217_s_auto_industry_and_the_globa l_economic_slowdown.shtml Images: the car looks fun to drive with alloys and the styling helps reinforce the idea that the car is fast. [...]
[...] The UK market has been in a recession as shown in appendixes 3 and 4. The only sector that has actually increased is this one so for Alfa it makes sense. Alfa has sold only 102,000 cars in 2010 as opposed to millions of Audis and BMWs, this new car has been reviewed very well and stands up to a number of practical tests; now we will look at the advertising see appendix 1. control 4.0 - UK advert analysis: Consterdine (2005) suggests that readers have built up trust for their favourite magazines and businesses can use this relationship to promote adverts that entertain them, interest them, inform them, offer intrigue and catch their eye. [...]
[...] However, what we quickly notice is that the basic needs of both markets are the same: Country UK Poland Target market Young families, business Young families, customers business customers Main need Quick convenient travel Quick convenient travel adequate room adequate room Speed Men above average Men above average Women - average Women –average Reliability Very important Very important Running costs As low as possible As low as possible Equipment Leather, alloys Leather, alloys Poland continued to grow even throughout the recession there was stability in the market. [...]
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