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Chapter 8 -‐ Conclusion
Although Russia is a very lucrative automobile market with a huge growth potential, it is not easy for a new brand automaker like LUXGEN to operate in it. The main obstacles that might hinder the development of successful business and the growth of market share are associated with high density of competitors, low brand awareness, relatively high price level and power characteristics, which are inferior to the characteristics of the competitors.
We defined the following goals of LUXGEN`s marketing campaign in Russia:
- Finding consumers group who would appreciate innovative IT equipment of the vehicle is even more than its physical performance characteristics;
- Breaking the stereotype that LUXGEN is a Chinese brand;
- Creating such an image of the brand, which is vivid, unique and, at the same time, very close to Russian consumers, in order to make it noticeable and easily recognizable among a big number of competitors;
- Increasing brand awareness;
- Accentuating the strong sides of the brand (high quality, innovative IT car concept, unique brand proposition), which justify the price and create an advantage over the competitors.
Having analyzed marketing campaigns of the most successful automobile brands with the highest figures of sells in the Russian market, we developed an innovative marketing plan for LUXGEN.
First and foremost, we suggested that women should be chosen as main targeted customers of LUXGEN in Russia, because for them such aspects as speed and power of the vehicle are not so important as safety and IT-based innovations, which are the main competitive advantages of LUXGEN.
Marketing campaign for LUXGEN in the Russian market was developed on the basis of the customer-centric approach, i.e. putting customers, not the product itself, on the first place. That presupposes creating the image of the advanced intelligent technology brand,
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which is friendly to Russian customers and respectful to their national spirit, values, traditions and customs.
For that purpose, we suggested that LUXGEN should make a language localization of the pronunciation and transliteration of its brand name for the convenience of the Russian native speakers, as well as the localization of its exterior design according to the color preferences of the Russians.
We created a special advertisement campaign “The smartest choice for your Vasilisa.
LUXGEN: Making fairy tale come true” in the style of fairy-tale cartoon-series. Although the main targeted consumers are Russian females, the advertisement will also be aimed at males to motivate them to purchase LUXGEN7 SUV for their wives. We believe that, thanks to this advertisement, LUXGEN will be able to win the hearts the Russian consumers, since we took into consideration such aspects as pleasant childhood memories of the Russias, their ethno-cultural archetypes, as well as psychographic characteristics of the Russian female motorists when creating such an advertisement. Due to the use of some specific psychological archetypes in this advertisement, it looks very creative, making the brand stands apart against a background of the competitors in the Russian market.
Then we defined what communication media should be used to make advertisement message reach the potential customers: billboards, Internet, radio and magazines. Within the framework of Internet advertisement, we also introduced the thematic on-line game for the potential and existing customers.
We stressed the necessity of choosing the opinion leader for LUXGEN7 SUV, since it will be a new product with innovative concept. The opinion leader, defined by us, a prominent Russian mind sports champion, will be able to exert a profound influence on the potential consumers.
In order to eliminate the stereotype that LUXGEN7 SUV is a “Chinese car”, the Taiwanese automaker should emphasize the interconnection between its innovative smart car concept and HTC intelligent technologies, which are integrated into it, since HTC is considered a famous Taiwanese brand in Russia. For that purpose we suggested that such a marketing activity as getting HTC smartphone for free when purchasing LUXGEN7 SUV can be conducted.
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As an important part of customer-centric approach, experiential marketing activities will be vitally important tools for LUXGEN to build warm relationship with the Russian customers and bring unforgettable experience to them. This presupposes establishing experiential showrooms for LUXGEN in the places mostly visited by targeted consumers, creating a special forum for LUXGEN female motorists to provide them with a sense of belonging to a group and organizing various events, such as creative blind drive show
“Making Fairy Tale Come True” supplemented by various entertainments for children to demonstrate how LUXGEN is considerate even to its smallest customers, as well as conducting the activities like group family travels over a long distance by cars.
We believe that, the marketing campaign, which will include all the above-mentioned steps, will help LUXGEN to build a reputation of the most friendly, customer-oriented automobile brand in the Russian market.
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Table 1: Difference between marketing innovation and other types of innovation Marketing Innovation Other Types of Innovation
significant change in the design of an existing product
Product
significantly improved functional or user characteristics
activities aimed at increasing sales volumes or market share
Process
activities aimed at decreasing unit costs or increasing product quality
Organizational
clarifications might be required for innovations that are both organizational and marketing. In this case innovations should involve new marketing methods (not just sales activities).
Source: OECD, 2005
Table 2: Comparison of the product-‐centric and customer-‐centric approaches Product-Centric
Approach
Customer-Centric Approach
Basic philosophy Sell products; we'll sell to whoever will buy
Serve customers; all decisions start with the customer and opportunities for advantage
Business orientation Transaction-oriented Relationship-oriented Product positioning Highlight product features
and advantages
Highlight product's benefits in terms of meeting
individual customer needs
Focus Internally focused, new Externally focused,
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Management criteria Portfolio of products Portfolio of customers Selling approach How many customers canwe sell this product to?
How many products can we sell this customer?
Customer knowledge Customer data are a control mechanism
Customer knowledge is valuable asset
Source: Shah, Rust, Parasuraman, Staelin and Day, 2006
Table 3: Archetypes in branding and 4 groups of motivation
Motivation Archetypes Drivers Examples
Stability and control Creator Craft something new, non-conformist, innovative in artistic and design
Crayola, Kinko`s, Seasame Street
Caregiver One of most powerful archetypes, trusted, an
generosity, and desire to help others, feared
Ruler Exerts control, leader,
role model,
White House, Cadillac, Ralph
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of self-important and over- confident, joy, delight, idealist, longing for a better worldVictoria`s Secret, Godiva Chocolate, Hallmark
Risk and mastery Hero Act courageously,
strong, inspirational, motivational and
Red Cross, Nike, Marlboro Man
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innovations that will have a major impact on the world and can solve a major social problemOutlaw Breaks the rules,
rebel, challenges the convection, release of pent-up passions, lets us out off the stream,
Innocent Retain/renew faith, seeking for the good
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Explorer Authentic, pioneer, individual, own
Sage Understand the world,
thoughtful,
independent attitude, represents wisdom, freedom, tells the truth, original, holds own opinion, need for
Source: Mark and Pearson, 2002
Table 4: Marketing activities of top-‐5 SUVs in the Russian market SUV
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Table 5: Technical specifications of Luxgen7 SUV, Infiniti FX 35 and Mercedes-‐Benz GLK 350
Specifications SUV brands
Luxgen 7 SUV Infiniti FX 35 Mercedes-Benz GLK 350
Length/width/height, mm
4650/1805/1490 4865/1925/1650 4536/1840/1669
Curb weight, kg 1800-1915 1890-1953 1940
Wheelbase, mm 2720 2885 2755
280/2500-4000 355 / 4800 351/2400-5000
Maximum speed km / h 210 228 238
Transmission type 5-speed
Automatic
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Table 6: Percentage of Russians who intend to purchase a car 2006 2011
Intend to purchase a car, % 11 15 Among them already have one, % 47 61
Source: Zaitsev & Raibman, 2011
Table 7: The number of female drivers in 2006 and in 2012 in the statistical population is people aged 18 years and older, living in cities with a population of more than 100 thousand
2006 2012
1.7 million 3.07 million
Source: Zaitsev & Raibman, 2011
Table 8: The most important factors for males and females in the process of making decision to purchase an automobile
Decisive factors
Men Women
1. Maintenance cost 2. Fuel consumption
3. Volume of engine, power
1. Attractive design 2. Maintenance cost 3. Fuel consumption
Source: Zaitsev and Raibman, 2011
Table 9: Cultural-‐specific semantics of color in Russian culture
Color Semantics
Black Protection, elegance, sophistication, formality, solemnity, luxury, wealth, calmness, religion (black clothes of monks), vehicles (as a symbol of luxury), Malevich's black square, the black hole
White Marriage, bride, hospital, doctors, religion (angels, God), death, childhood, infinity, something unknown; truce, white bear
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symbol of danger and prohibition, the color of speed, war, a symbol of football clubsOrange Oranges, tangerines, sunset, marigold, sunflower, fire
Yellow Madness, insanity, betrayal, separation, warning, attracting attention, childhood, pastries (e.g. pancakes)
Green Longing, resolution, providing freedom of action; Islam, New Year, Greenpeace, hope
Blue A symbol of masculinity, strength, power, positive qualities of character, freedom, dream, ethnical color of Russia
Sources: Kudrina and Mescheryakov, 2011; Mishenkina, 2011; Tarakanova, 2012
Table 10: Archetypes in the advertisement of top-‐5 automobile brands in Russia Motivation Archetypes Drivers and their
expression
Brands
Stability and control Creator Caregiver
Ruler Leadership (Predator
in jungle) friendly, gives people a sense of belonging,
Risk and mastery Hero Outlaw Magician Independence and
fulfillment
Innocent
Explorer Travelling, exploring
new places; Lada 4х4, Niva Chevrolet
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Table 11: Archetypes in the advertisement of top-‐5 automobile brands in Russia and in the proposed advertisement for LUXGEN
Pioneer,
Motivation Archetypes Drivers and their expression
Brands
Stability and control Creator
Caregiver Trustworthy, an icon of home, security and friendly, gives people a sense of belonging,
Risk and mastery Hero Inspirational,
motivational,
Independence and Innocent
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Figure 12: Top-‐3 most read magazines among male and female motorists
Male Female
1. ”Za Rulyom” – 30% 1. “Cosmopolitan” – 26%
2. “Telesem`” – 13% 2. “Telesem`” – 22%
3. “Argumenty i Fakty” – 12% 3. ”Za Rulyom” – 16%
Source: Zaitsev & Raibman, 2011
fulfilment Explorer Travelling, exploring
new places;
Pioneer, life-altering experiences, travelling
Lada 4х4, Niva Chevrolet
Renault Duster
Sage
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List Of Figures
Source: Baker and Sterenberg, 2003
Figure 1: Cultural attitudes relating to brands
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Source: Aslam, 2006
Figure 2: A hypothetical model of color application in marketing (arrows show the direction of influence)
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Source: Drive, 2012, 2013; ZaRulyom, 2006, 2007, 2008, 2009, 2010, 2011
Figure 3: Top-‐15 SUV sales in Russia, 2005-‐2012
0 10000 20000 30000 40000 50000 60000 70000
2005 2006 2007 2008 2009 2010 2011 2012
Chevrolet Niva LADA 4x4 Renault Duster Nissan Qashqai Kia Sportage Volkswagen Tiguan Nissan Juke
Hyundai ix35 Toyota RAV4 Nissan X–Trail Mitsubishi Outlander Mitsubishi ASX SsangYong Action Suzuki Grand Vitara Hyundai Santa Fe
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Source: Forbes Russia, 2012; AvtoMir, 2012
Figure 4: Price-‐quality ratio of SUV vehicles in the Russian market
0 500000 1000000 1500000 2000000 2500000 3000000
0 1 2 3 4 5 6
Price, RUB
Quality raiting
Lada 4x4 Niva Chevrolet Renault Duster Nissan Qashqai KIA Sportage Volkswagen Tiguan Nissan Juke
Hyundai ix35 Toyota RAV4 Nissan X-‐Trail Mitsubishi Outlander Mitsubishi ASX SsangYong Action Suzuki Grand Vitara Inkiniti FX
Mercedes-‐Benz GLK350 LUXGEN 7 SUV
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Source: Zaitsev & Raibman, 2011
Figure 5: The most likely buyers of cars in Russia
Source: Zaitsev & Raibman, 2011
23%
Married, have 0-‐5 yrs old children
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Figure 6: Psychographic profile of female motorists in Russia
Figure 7: Gender proportion of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”
55%
45% Males
Females
0 5 10 15 20 25 30 35
18-‐25 yrs. 26-‐33 yrs. 34-‐41 yrs. 42-‐49 yrs. 50-‐57 yrs. Older then 58 yrs.
Total Males Females
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Figure 8: Age proportion of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of
respondents who belong to a certain age group
Figure 9: Marital status proportion of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of
respondents who chose a certain answer
0
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Figure 10: The proportion of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, who have and who do not have
children, Y-‐axis shows the number of respondents who chose a certain answer
Figure 11: Car ownership proportion of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of
respondents who chose a certain answer
0 5 10 15 20 25 30
Total Males Females
Have own car
There is a car in the family, but I don't drive it
Have no car
0 5 10 15 20 25 30 35
Total Males Females
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Figure 12: Automobile color preferences of the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the
number of respondents who prefer a certain color1
Figure 13: Attitude to unusual colors among the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, x-‐axis shows the number
of respondents who prefer a certain answer
1 Here the respondents could choose several colors
0 5 10 15 20 25 30 35
Total Males Females
Like it, it is creative Do not like it
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Figure 14: Attitude to gold color of a car among the respondents of the survey
“Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of respondents who prefer a certain answer
Figure 15: Attitude to purple color of a car among the respondents of the survey
“Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of respondents who prefer a certain answer
0 5 10 15 20 25
Total Males Females
Like it So-‐so Dislike it
0 5 10 15 20 25 30 35
Total Males Females
Like it So-‐so Dislike it
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Figure 16: Other unusual colors of cars preferred by the respondents of the survey
“Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of respondents who prefer a certain answer1
Figure 17: The pronunciation of “LUXGEN” by the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of respondents who think that a certain variant of pronunciation is correct
1 Here the respondents could suggest their own variants
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
0 5 10 15 20 25 30 35 40 45
[l'uks'gen] (ЛЮКСГЕН) ['lʌksʤiːn] (ЛАКСЖИН) Other
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Figure 18: More euphonious variant of “LUXGEN” pronunciation for the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐
axis shows the number of respondents who prefer a certain variant of pronunciation
Figure 19: Clarity of the meaning of the brand through the pronunciation as [l'uks 'gen]
for the respondents of the survey “Linguistic and color preferences of the Russians in automobile branding”, Y-‐axis shows the number of respondents who prefer a certain
answer
0 5 10 15 20 25 30 35 40
['lʌksʤiːn] (ЛАКСЖИН) [l'uks'gen] (ЛЮКСГЕН)
0 5 10 15 20 25 30 35 40 45 50
The meaning of this name is clear The meaning of this name is vague
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Source: Folklore songs for children, 2012
Figure 20: Illustrations by Y. Vasnetsov
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