Essay on Marketing Plan for Launcing a New Car

9284 Words Mar 4th, 2012 38 Pages
Primo –MEDDA Launch

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From all the analysis carried out, an opportunity for future growth was found in the small saloon and hatchback division. A new car which will be produced in two types a 5 door occupying 70% of sales and 3 door hatchback representing the 30% was developed to be suitable for a family’s additional car. Therefore, the Primo Medda has been developed which will comply with the requirements for our target segments as it is fuel and thus, cost efficient. Additionally the main brand values corresponded will be safety, reliability and affordability. A sales forecast is envisaged of 375742 units over a 5 year period and break even will be at a point of
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Appendix 1 presents two tables with all the relevant indicators. Most of the cars are purchased using a loan, hence that if the interest rate goes up; a decline in sales is to follow as taking a loan becomes less attractive (ONS, 2009). One prospective forecast though, is that the interest rate is expected to remain around 0.5% until recovery is commencing although the oil prices are rocking sky high which makes it more expensive to both produce and use the car (ONS, 2009).In 2008, the unemployment rate was 5.7% of the economically active population and has increased to 7.9% between past May to July which indicates that there are more people available at higher qualifications to do the job, but at the same time, production levels in the UK are cut (HRM Guide, 2009). This fall in car manufacturing can also be traced back to the steel producing firm Corus who announced to cut 3,500 jobs of which 2,500 in the UK at the beginning of this year. Steel prices had seen a rapid rise worldwide, before the recession. The sudden decline in current recession prices, evident in Table 1, could enable Primo to purchase necessary steel for production at lower costs than previously, saving on costs. World Carbon Steel Transaction Prices World Steel PricesUS $/tonne | Hot RolledSteel Coil | HotRolledSteel Plate | ColdRolledSteel

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