Published by MBA Skool Team, Last Updated: September 02, 2017
Marketing Strategy of Vauxhall analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Vauxhall marketing mix, help the brand succeed in the market.
Vauxhall marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Vauxhall Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Vauxhall marketing strategy can be explained as follows:
Vauxhall is one of the leading European car brands based out of UK. Vauxhall’s operations are mostly in family car segment, but the company has also manufactured sports cars. Vauxhall’s current product range in its marketing mix include categories of Passenger Cars, Commercial Cars and VXR high performance cars for young buyers. In Passenger car segment, company sells Viva, Astra, Corsa, Insignia, Mokka, GTC, Cascada, Crossland, Grandland and Zafira. Commercial Vehicles of Vauxhall include Movano, Vivaro, Combo, and Corsavan. Company’s VXR range include Astra, Corsa, Insignia and GTS. The models available are in hatchback, sports tourer, Convertible, Van, SUV, Saloon and MPV. Company also sells used cars and vans. Company also offers nationwide aftersales service and Financing option for vehicles. Other services include company’s fleet maintenance and purchase consulting. Since, early 1980s Vauxhall cars and vans sold in UK are made in Opel’s factories in Germany, Spain and Poland and are branded as Vauxhall. Also, a high proportion of cars manufactured in Vauxhall’s manufacturing units in England are rebranded as Opel and sold across Europe.
Image: company website
Vauxhall Price/Pricing Strategy:
Below is the pricing strategy in Vauxhall marketing strategy:
Vauxhall has followed the strategy of value pricing in its marketing mix by slashing down the prices of its vehicles to win loyal customers.
They have re-engineered operations not just to provide low prices but also to provide desired value of less taxes due to ecological laws. Vauxhall’s vehicle prices depend on the target consumer, like its product line of Adam cars comes in three variant Adam basic, Adam rocks and Adam S with Adam basic model serving as base price and an additional mark-up is there on Adam rocks and Adam S. The company allows customers to customise their cars like choosing from different available colours and accessories and thus deploys optional feature pricing for its cars. Vauxhall does promotional pricing by providing special event discount for a period. The company facilitates low interest financing on its vehicles. The company also provide low cost warranties and service contract by adding a fee on vehicle.
Following is the distribution strategy in the Vauxhall marketing mix:
Vauxhall brand of automobiles are sold only in UK. Vauxhall has overall 383 retailers in UK, of which 328 retailers offers new cars sales, 116 retailers can sell new heavy Vans, car and light van servicing facility is available with 378 retailers and heavy van servicing will be offered by 270 retailers. Company has 117 approved body shop centres and 33 customer excellence centres in UK. Company exports around 80% of its manufactured vehicles in Europe through dealer network of Opel. Opel’s distribution in 50 countries makes the reach of Vauxhall manufactured vehicle reach to these many countries. Vauxhall has 318 network Q through which it sells used Vauxhall cars in UK. Vauxhall provide financial service in all the retailer location.
Vauxhall’s online webpage provides platform for the users to customize and compare the models and find the nearest dealer location for the chosen car model.
Vauxhall Promotion & Advertising Strategy:
The promotional and advertising strategy in the Vauxhall marketing strategy is as follows:
Vauxhall uses 360-degree marketing to promote its brand of products. It spends on TV commercial and other paid media platforms such newspaper and magazines for publishing its advertisement. Vauxhall participates in auto shows to display its products and offers press release of its new launches to create buzz among the target segment. Vauxhall has sponsored various football clubs and football league. It has also been a sponsor of national football teams in UK. Soccer being one of the most popular sports in UK, sponsoring clubs has given the brand necessary exposure to the targeted audience. Vauxhall has tried to venture in sports segment repeatedly and in the process, has sponsored racing teams to increase its brand footprint. To retain its retailer, company awards best performing retailers every year. Company offers exclusive discounts and offers to its long-time customers to increase loyalty to the brand. Vauxhall uses digital media platforms such as google ad-sense advertisement, YouTube, Facebook, Instagram, and Twitter to create greater recall of Vauxhall’s brand in consumer mindspace. Hence, this is the marketing mix of Vauxhall.
About Vauxhall Motors:
Vauxhall motors is one of the oldest British automobile manufacturer and distributer. The company has its roots in Alex Wilson and Company which was founded in 1857 to manufacture marine engine and pump. Later in 1897, the company was renamed Vauxhall Iron Works and started manufacturing Petrol engines. The company started manufacturing vehicle in 1907 and renamed itself Vauxhall motors. General Motors acquired Vauxhall in 1925 which sold off its stakes to Groupe PSA of France in 2017 in a 2.2 billion Euro deal which includes Opel motors in addition to Vauxhall. General motors had operated Vauxhall and Opel as conjoint entities since 1973 due to overlapping products of these two European subsidiary and entry of UK in European union. The joint market share in European car market of Opel and Vauxhall has declined significantly from a high of 11.5% in 1990 to 6.5% in 2016.
The companies have been making continuous loss since 2000 which was cited as a major reason for their sell by GM. Car sales in UK here Vauxhall’s branded cars are sold were robust in 2016 with an increase of 6.1% in new registrations.
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