Opel Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Opel analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Opel marketing mix, help the brand succeed in the market. Let us start the Opel Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Opel Product Strategy:
The product strategy and mix in Opel marketing strategy can be explained as follows:
Opel is a leading car manufacturer based out of Germany and having a strong presence across Europe. Opel has a diverse product portfolio in its marketing mix which includes cars, commercial vehicles, accessories etc. Automobiles include cars from hatchbacks, SUVs, sedans, mini cars, convertibles. Light commercial vehicles from Opel include Vivaro, Opel Arena, Movano, Bedford blitz. Other commercial vehicles are Blitz, Pick up trucks, off road vehicles.
Motors parts from Opel include Power train, diesel engine, transmissions, engine components. Opel Eisenach have Corsa and Opel Adam, and other Opel special vehicles include Minivan, MUVs, sports vehicles etc. Apart from the products, Opel also has moved up in the value chain, by providing easy installments and financing options for the customers. Also, insurance of the vehicles under their own name, is another service offered by the company.
Image: Wikimedia
Opel Price/Pricing Strategy:
Below is the pricing strategy in Opel marketing strategy:
The pricing is based on cost plus method, where the company tries to get the cost of production along with margins to maintain sustainability, in the long run. Most Opel vehicles are priced according to customers’ willingness to pay.
To attract more customers, the brand is involved in value pricing, where it tries to minimize the prices of the vehicles. The cars are targeted for middle to upper middle class, and hence prices are the major factor. Bundling pricing tactics is followed by Vauxhall. Through this it sells a basic version of their cars, which are available at lower prices. Apart from this a high-performance version is available through the subsidiary brand VXR, which are higher in price to lure high end customers. Through managing the operational facilities, efficiently, Opel has successfully managed to save costs. These cost saving are transferred to the end consumers through low priced cars and commercial vehicles. Opel also attracts customers through financing options for them, which help them own the vehicle at minimal costs.
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Opel Place & Distribution Strategy:
Following is the distribution strategy in the Opel marketing mix:
A total of 10 manufacturing units are present which are spread across 6 countries. Major countries around Asia, Europe, Africa and South America are served with the automobile and commercial vehicles. Asia provides a huge market with China, Japan and Malaysia. The brand has self-owned showrooms as well as distributors. The distributors are divided according to vehicle category such as cars or trucks or mini vans. Test rides are also available at the showrooms to assess the comfort level. The dealer network is major strength for this brand, considering its export of products to over 60 countries round the world. It even give rewards for the best distributor. Apart from this second hand stores are also available, where consumers have the option to exchange or take money for their cars as well as buy second hand vehicles from the showroom.
Through maintaining self owned second hand stores, it restricts any quality damage to the car as well as any brand dilution.
Opel Promotion & Advertising Strategy:
The promotional and advertising strategy in the Opel marketing strategy is as follows:
Opel sponsors sports event, keeping in mind the target customers. It sponsors the football club Bundesliga and Rugby league club Sydney Roosters. Opel also have clubs of its own which help building brand stories through customer to firm interaction. This club is called SC Opel Russelheim, which is a soccer club. Another one is a cycling club by name RV Opel Russelheim. Opel also takes part and organize motor sports events. It has actively participated in International touring car championship and world rally championship. These championships, give brand recognition and even helps the viewer witness the fine qualities and sharpness of the vehicles, in reality. Through various events and clubs, Opel has developed itself as an energetic brand that believes in speed and quality. Through this personality it attracts like minded customers. Opel is involved in 360-degree marketing, where it covers all the aspects from TV Commercials, paid media channels and print advertisements. Press releases are often done to create buzz for new upcoming product ranges. Hence this completes the marketing mix of Opel.
About Opel:
Opel is a German based automobile company. It was founded by Adam Opel, as a sewing machine manufacturing company, but slowly moved to bicycles and then towards automobiles and commercial vehicle. It is a subsidiary, with parent company General Motors, group PSA. Some sub brands are present inside Opel also like special vehicles by Opel, Vauxhall motors, etc. The entrants in the industry are difficult to come, because of heavy investments, though major threats are from substitutes like cab services, which have significantly decreased number of cars purchased.
Its major competitors include. Industry is facing a huge technological revolution, with fuels and other energy sources coming up.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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