FIRM C: CHASING COMPETITION CONSTANTLY

Reporting on our initial position after acquiring Firm F motors, we established our desires as to where we want our firm to stand on the final period. We want to target our largest volume customer base and therefore focus in on the products situated within the largest volume of automobile sales. We of course want to firstly create maximum net income, establish heightened standards for our stock price and serve as a strong competitor in the family and luxury markets. Firm F is a firm that holds complete share over the minivan market, one of the lower shares in the family market, and is edging towards holding most of the luxury market. In order to tackle our goals and come up with the proper strategy, we decided to first divide everything we saw on StratSim into various categories in order to observe certain trends and see if there are any holes needed to fill as well as various other opportunities for future success.
4 P’s
Product
Minivan (Camini)-The only minivan in the market; sales:174(period 0)-181(period 1)
Luxury car (Climax)-high-end, focused on interior design, sales: 102(period 0)-119(period 1)
Family car (Cafav)-High-end, stylish family car, sales: 195(period 0)-191(period 1)

CoolCars is an upscale car company that provides customers with the safest and most stylish cars in the industry. We have cars for every customer; whether they are looking for a family car or an upscale luxury vehicle. The Camini, the one and only minivan in the market provides the space and comfort that is perfect for families with multiple children. The Climax, our luxury car, is for affluent, childless adults who want style. The Cafav, our family car, provides safety, so you know that your kids are always safe with us.

Price
Minivan (Camini) $24,144
Luxury car (Climax) $45,997(much more expensive than competitor)
Family car (Cafav) $31,361(second highest in the market)

Our prices reflect our high-end cars. The Camini is priced at $24,144, the Climax is priced at $45,997, and the Cafav is priced at $31,361. Our customers expect quality, and quality does not come cheap. However, we are working on making our prices more competitive with the other cars in the market.

Place
Highest sales in the East
Promotion - Currently we are promoting style, but we think in order to gain a higher market share, we need to upgrade the safety features in order to appeal to families. Current customers are high income, but we also want families to gain interest. IF we increase interest in safety, it is possible that people will then become interested in the style factor
Camini: $30M in promotion, $40M in advertising, theme: style
Cafav: $40M in promotion, $60M in advertising (most competitors spend $80M), theme: style (competitors: 2 style, 1 interior, 1 quality)
Climax: $20M in promotion, $80M in advertising, theme: safety
5 C’s
Customer
2F, 2M - Care about safety and quality; 4F - care about safety
4L- care about interior and style
Most of the sales (56.9%) go to high-income consumer segment, 10.2% goes to families, and 12% goes to enterprisers. However, with the total sales of 4,283 thousand units in the market, high-income consumers only contributed 363 thousand of them. Thus it is important to seek opportunities in other larger consumer segments.
With the current product lines, possible strategies are to target high-income families with stylish family cars while we upgrade the safety of Cafav, or to target value seekers with an affordable car with guaranteed quality. (Like Volkswagen-German made, promised quality; or the previous BMW case-an affordable BMW for the youths and Gen X.)
Company (I think the paragraph under “Products” describes our company pretty well)
Competition
Minivan
ONLY US
Family
Alfa - $24,084
Boffo - $35,003
Defy - $25,921
Efizz - $18,869
Luxury
Beaut - $38,385
Economy (IF we decide)
Alec - $15,351
Delite - $11,293
Collaborators
I’m thinking about showrooms and exclusive