marketing mix - page 8
Keywords: new marketing mix of Skoda
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 8 of 10 pages: 1 2 3 4 5 6 7 8 9 10
Relations campaigns should be first (started with introduction of the Study in Frankfurt). Journalist drives and introduction in all exclusive and family magazines as well.
8.4. Cost of the entering of the new market
In the last days was in the news papers story about launching the new product from the company Opel (Vauxhall in the UK). The cost of development of the new Opel Astra was in total about 1 billion Euros.
Skoda Company is not so big company in production and in assets so the costs maybe with cooperation with Group partners about 1/8 of the sum introduced above. We can count with 100 million Euros for development of the car and 25 million invested into the TV, magazines and billboards 3 weeks campaign across the Europe as in the last cases of launching the new model by Skoda. (http://www.tutor2u.net/business/marketing/casestudy_skoda.asp). Small sum should be invested into introduction of the car at some Car Show.
8.5. Expected market share
In the Czech Republic and Slovakia company has approximately ½ of the market share in produced categories of cars (See chapter 3.1. – Figure 3). It may be predicted that Skoda will have the same share with the new product on the Market in Slovakia and the Czech Republic. It means that with sold 12000 new family cars in the Czech Republic the market share may be 6000 cars. There is in the Western Europe, market with 800.000 family cars. If the company Skoda will be able to hold the standard about 2 per cent of the market share it may be 16000 cars sold only in Western Europe. We have result of 22000 cars sold in the Czech Republic and Western Europe, with other European and world markets there may be expected sales of 30000 new family Skoda cars a year.
8.6. Action plan
The questions that should be answered:
What will be done?
When will it be done?
Who is responsible for doing it?
How much will it cost?
(Kotler 2003)
Year 2008 may be started the development of the new family car on the base of Skoda Roomster from the year 2003. Development of the car and realization of prototype may be done till 2006. In the year 2007 may be car introduced at Geneva Car Show and after introduction can company start reaching the market share (chapter 4.6.). It should cost 125 million Euro, but from my point of view is very hard to appraise the
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