Question

Topic: Strategy

Marketing Plan $10,000 Car At Middle East?

Posted by Anonymous on 2/16/2005 at 2:46 AM ET 250 Points
I am interested in knowing innovative marketing plan for American Car in Middle east market? Price is US Dollar 10,000. Ultimately wants to improve the sale.
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  • Posted by Chris Blackman on 2/16/2005 at 7:42 AM Member
    How does this car fit in the marketplace with regard to price, looks, performance, accessories, features, benefits?

    Can you tell us what sort of car it is? And where in the Middle East?

    More info would be helpful...

    ChrisB
  • Posted by Chris Blackman on 2/21/2005 at 2:41 AM Accepted
    On the basis this is a vehicle that might suit Asian or European expats in ME, why not appeal to them on the basis this is the kind of car they are used to, rather than the larger American imports that may be competing for their attention.

    Is gas-mileage an issue? I understood petrol was just about given away free (the joke here is petrol in ME oil-producing contries costs 2 cents/gallon, water for your radiator = $10 a pint).

    If it is, appeal to the expat desire to save money by exploiting the economical running costs of these smaller-engined vehicles.

    Hope this helps.

    ChrisB
  • Posted by koen.h.pauwels on 3/19/2005 at 9:29 PM Member
    I can only talk from experience about the Turkish market, but suspect most of the following applies to the actual market you are considering:
    1) the income distribution in the Middle East shows a huge gap between poor and rich people: there is less of a mid-class market. Often, taxes are a major part of the price of imported cars: eg in Turkey, SUVs and BMWs cost 2-3 times as much as in the US because the government taxes luxury (and thus the people who can afford it). Therefore, it is crucial that you position yourself clearly into the lower-end (suggested by your price), thus avoiding the most damaging taxes
    2) you face major competitition in those markets, mostly from Japanese manufacturers known for quality and mass-market appeal, and European brands, which are even more prestigious as in the US (given the added taxes)
    3) country-of-origin is not a good marketing ploy...

    On the bright side, consumers are very brand- and quality-sensitive (besides being price-sensitive at the lower end of the market), so your marketing strategy should establish point-of-parity on quality (eg with Japanese competitors, based on trustworthy sources - think JDPA), while differentiating with a 'cool', 'need-to-have' branding message.
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