Consider the introduction of the Infinite Brand by Ionians and discuss how this sub- brand relates to a particular target segment for Ionians. By loquaciously Consider the introduction of the Infinite Brand by Ionians and discuss how this sub- brand relates to a particular target segment for Ionians. 'Since its conception over 60 years ago by Frederick in 1934, the concept of segmentation has gained increasing importance, in both the consumer and business domains. ' (Cooler et al.
, 2002) 'Market segmentation is according to many text books one of the fundamental principles of marketing. (Kettle, 1997).Marketing theory suggests that businesses adopting a market segmentation approach can enhance their organizational performance (Kettle, 1997). Market segmentation is grounded in economic pricing theory, which suggests that profits can be maximizes when pricing levels discriminate between segments (Frank et al. , 1972). One reason for the widespread acceptance of the approach is the belief that organizations cannot normally serve all of the customers in a market.
' (Dib et al. , 2002) 'The marketing literature identifies a range of benefits for businesses pursuing a segmentation approach.The underlying logic is that segmentation can enhance marketing effectiveness and improve an organization's ability to capitalist on marketing opportunities (Bean and Nines, 1987; Weinstein, 1987). This is partly because segmentation builds on an excellent understanding of customers and competitors which can lead to few direct confrontations with competitors and the design of more suitable marketing programmers.
' (Dib et al. , 2002) Ionians itself predominantly produces small cars which are low cost and fuel efficient, the vehicles have a standard level of comfort, safety, style and performance.However, Silversides and Fiske (2003) revealed that certain demand side factors have caused a move towards premium brands, or a trading up phenomenon. "They include the rise in incomes and home equity, the cash windfall delivered by mass retailers, the changing role of women and the family structure, the rise in divorce rates, the increasing worldliness and sophistication of the American consumer, and the increased focus on emotions and cultural permission to spend" (Silversides and Fiske, 2003, p.
18).A new brand was to be created for this section of the market, pacifically for the people in society who have a higher level of expendable income and demand a higher performance and more luxurious car. Infinite (2014) explains that in 1985 Ionians made the decision to create a new luxury brand that would compete with the large existing luxury brands in the American market. Their vision was to provide a luxury purchase and ownership process as well as high performance and luxurious vehicles. "Brand managers face a series of dilemmas when choosing the name for a new product.
Alongside the concerns about the name hitting it off with the consumer, there are worries about exclusivity, image and the effect on the firm's other brands. All these issues make the choice of brand name a critical decision for any product manager. " (Baht et al. 1998).
Two years after its conception it was announced the new sub-brand was to be called Infinite and a badge was created to symbolism the new brand's desire to be always looking forward - to new horizons, to infinity. The division officially started selling vehicles in November 1989.With the first two models on sale in 1989 alongside the Infinite Total Ownership Experience the sub-brand rapidly gained recognition as an industry leader in customer satisfaction. Almost a decade later in 1999 Infinite launched the "Infinite Owners Club", an addition to the Total Ownership Experience. Being a member of this club gives numerous benefits, including invites to special events. This has helped create greater exclusivity and helped the brand to grow.
By 2003 Infinite was the number one luxury brand in terms of growth. Infinity 2014) Andy Palmer, Niacin's Executive vice-president, global planning and global marketing has stated "The premium and luxury car makers account for about 50 per cent of the total industry profits and 21 per cent of the revenues. That equates to about 11 per cent of total industry volumes worldwide. " Palmer admits that "Ionians more or less plays in the other 50 per cent", meaning that it focuses on the everyday end of the market, but the company now wants to forge ahead in the premium segment where profit margins are healthier. Barnett 2012) Marketers have a variety of options when they are naming new products, one option is to use a new brand name, and a second option would be to introduce the new product under the existing brand.
Baht et al. (1998) explored the options and concluded that with a completely new brand name, a tot of time, money and effort would need to be spent in order to popularize the name and to position the brand. When compared to brand extension, it would be more difficult to induce trial because of the consumers' perceived risk in trying a new brand.Looking at the positives any negative associations with the existing brand will not be transferred to the new brand nor will the new brand name have much effect on the existing brand, because very few consumers make a connection between the brands. By launching Infinite as a new brand with a new name rather than a line extension Ionians positioned the new cars and services directly against the new upscale competitors rather than against Niacin's existing range which are quite standard and focused on the everyday market.Barnett (2012) explains that Infinite does have one major advantage over its century-old competitors, it's youth.
"The youth of the brand allows it to target younger consumers. A high average customer age is a problem that Mercedes is going to great efforts to remedy. " However the youth of the company is also a major obstacle as relatively few people know it exists. It's answer has been to find a global platform for increasing awareness - Formula 1 racing, which is watched by 550 million people a year around the world. "Fl also fits in with another of Infinities brand attributes, a focus on hospitality - and particularly in relation to Asian culture - according to Palmer.
The partnership allows the brand to associate itself with the 'money-can't-buy experience of an Fl grand PRI. The hospitality element also helps it to differentiate itself from the mainly German brands that it wants to compete with, which historically have focused on engineering. (Barnett 2012) "Unaided awareness of the Infinite brand in Europe was only 2. 5 percent before the deal with Red Bull Racing was signed in 2010.Ionians Executive vice-president Andy Palmer has claimed that in the first full year of sponsorship the awareness increased significantly.
He also claimed that the Infinite branding on the Red Bull cars got more airtime than the branding of other Fl manufacturers Ferreira and Mercedes-Benz. " (Barnett 2012) "Growing the luxury Infinite brand globally to increase profitability, is a priority, part of Niacin's six-year business plan which began in 2010. Infinite has been around since 1989 and for most of that time has been confined to the US market.Only in the past 10 years has it ventured into wider markets, and only in the last four into Europe. " (Barnett 2012) To conclude, it is very obvious that Infinite was launched to target the higher end of the market.
The consumers with a higher level of income that expect more from their car. Infinite are also taking advantage of being young company and marketing towards a younger consumer, being involved with Formula 1 and Red Bull with reinforce their image as young and fun yet exclusive. Discuss the way the Ionians Leaf is being positioned in the marketing communications activity of Ionians?Illustrate your answers by considering a range of promotional mix variables. Marketers have wide range of promotional tools that they can use to achieve their communications objective. Masters and Pickett (2010) explain that these tools, or techniques have been organized into four main categories; advertising, public relations, sales promotion and personal selling.
These are collectively known as the marketing communications mix. This essay will consider how Ionians have used the marketing ammunitions mix to position their electric car, the Ionians Leaf.Advertising - Ionians have had a series of TV advertisements aired since the launch of the leaf. Ionians to unveiled a television advertising campaign that featured the company executive Brian Maroon basically saying that, all things being equal, electric cars are far superior to petrol or diesel powered vehicles, and not merely better for the environment or the bank balance. If the car were to be invented today, he says, "the question isn't Why electric? ' It's Why gas? '" It's a compelling argument.Over the past few years, Ionians has gradually been tilting perceptions of plug-in vehicles.
The company took a humorous angle in 2011 by notably unveiling a campaign showing a bunch of gas-powered appliances that are traditionally powered by electricity (alarm clocks, coffee makers, laptop computers) spewing exhaust around the house. It's also shown how polar bears love Leaf owners. While the messages have taken a while to get out there, Leaf sales gained momentum this year as prices were dropped and production was moved to Niacin's Tennessee factory. (Autobiographer 2013) Sustainability has become the mantra for companies seeking to create a competitive advantage in the global marketplace. Recent interviews with over 750 Coos from around the world revealed that 93 percent feel that implementing sustainability programs that mesh with their core businesses would be critical to the future success of those businesses (UN Global Compact, 2010). These programs range from developing totally new green products, developing recycled, or refurbished products to engaging in greener processes.
(Boron et al 2013) Niacin's ad campaigns certainly focus on the how echo-friendly the Leaf is. In February, Ionians signed up as the official automotive partner of the ROI De Jeanine 2016 Olympics, in a deal reportedly worth $mom (Emma). It is expected to use the Games as a showcase for electric vehicles. " (Barnett 2012) Public Relations - Alley (2012) reported that Ionians staged an event in London that combined the impact of a PR stunt with the reach of social media marketing. Anyone who tweeted their destination and the washrag #CHEAPER was able to hitch a ride with a Ionians LEAF electric vehicle for pennies.
They Just needed to get into one of the cars at the company's taxi rank. It was all part of a campaign to promote electric vehicles, including the LEAF, as a much cheaper alternative to traditional petrol-powered cars. The Big Turn On campaign is spreading the electric car message through social networks. Its target was to get one million people 'switched on' to electric vehicles in 100 days, but managed to hit the mark 18 days ahead of schedule. "Every passenger got out of the Ionians LEAF taxi with a smile on their face," said Jim Wright, managing director of Ionians B.
They loved the near silence and general refinement of the car and were blown away when they discovered how cheap it is to fuel. Sales Promotion - Kelly (2010) reported that he first string of extras Leaf owners in the US will receive are special calls and home visits by Niacin's corporate planning officials. Once the deposit is made to reserve the car, Leaf owners begin experiencing special treatment by Ionians personnel to make sure the transition from gas powered vehicle to electric goes as smoothly as possible.The biggest incentive however is not from Ionians but the US government who are luring potential buyers in by offering tax credits and rebates to all Leaf owners: And the dollar amounts on these incentives re large, $7,500 from the federal government in the form of a tax credit and a $2,500 cash rebate from state governments. The Energy Department is also aiding the campaign by installing home-charging units in every Leafs new home - a $3,000 value. Personal Selling - "Point of purchase is being used by Ionians by promotional materials supplied to the car dealers that feature the Ionians Leaf.
They include everything from billboards to brochures and magazines. For their personal selling, Ionians uses the seven steps in the following manner: Ionians uses newspaper and online advertising to generate their leads. The qualifying leads are represented by individual sales persons that approach you and are starting to find out their specific needs and see if the Ionians Leaf is a good fit. The solution are developed and proposed at the time of the initial sales meeting as well as the objections being handled. The closing of the sale is made usually at the same time after the negotiation is completed.
The following up is done mostly via emails and letters trough the post office. " (Miami Aegean 2013) This bold marketing activity fits well with Niacin's plan to go big with the Leaf as Palmer discussed with Barnett (2012), "The only way you can change the business is to go large," he says. "That brings economies of scale and, of course, allows us to own the position of being the zero-emissions developer for the world. Volkswagen 'owns' diesel and Toyota owns hybrid, so what are we going to do - are we Just going to follow? What we're saying is: we own the zero-emissions space. The marketing is obviously working, Ionians are selling more Leafs year on year since the 2010 release. Role De Varies; corporate vice president and global head of marketing, communication and brand strategy for Ionians summed it p perfectly in an interview with Joel Makeover.
"What we've done over the last couple of years is to bring a real product to real people at a real price," said De Varies. "There's a lot of activity going on everywhere, but a big part of it in our industry plays in the world of PR. They are products that are not very accessible to people or that are not on the road for people to see.What we have done different to others, I think, is that we have developed a car that's real, that's accessible, and it's being recognized everywhere. Our volumes are really starting to pick up nicely now but before even he volume pick-up, we've had a lot of recognition in the mass media, whether it is the Car of the Year awards, or great write-ups in newspapers or motoring magazines.
What's working for us is to do something that's very close to real use for real people.
