Executive summary
It is apparent that there are numerous features that are used to compare Service Utility Vehicles (SUVs) such as Audi Q7 and Toyota Cruiser. From a careful analysis, these types of SUVs are made by different companies. Nevertheless, they have numerous features that are similar and those that differentiate them.
The distinct features that one should consider include their category drive types, base transmission, seating capacity, engine performance and fuel consumption. When making a concise comparison, it is imperative to compare both the interior and exterior features.
Moreover, one can equally explore the major safety features such as headlights, stability control, hill-start assistance and engine immobility.
It is against these standards that this paper intends to make a comparison between two companies namely Audi SUV q7 and Toyota SUV cruiser while demonstrating their marketing concepts. Companies in the motor vehicle industry have to bear in mind that there is stiff competition in the automobile industry and hence the need to exercise the best marketing strategies.
Introduction
According to Pride, Hughes and Kapoor (2011), there are three major aspects which must be well organized. The first step towards achieving success is attaining optimum supply of variety services or goods. A company must give the market a wide range of products. Secondly, it should be noted that consumers in this industry expect the respective companies to supply them with quality products.
Rajagopal (2000) argues that a motor company that does not produce high quality products which transcend the expectations of its clientele is highly likely to fail as an enterprise. Third, in order to succeed in a very competitive business environment, companies should prioritize the productivity of their individual employees (Pride, Hughes & Kapoor, 2011).
The latter is likely to replicate towards improving customer satisfaction. Therefore, this explains the reason why companies in the automobile industry should be quite strategic when marketing their finished products to the wider global market.
Industry background
The motor vehicle industry has been a dominant sector of the economy since time immemorial when the earliest engines were invented. Companies operating in this industry have been able beat the test of time by becoming very competitive in the auto mobile industry. Statistics show that through production of quality products, the industry has been able to become competitive in the global market (Rajagopal, 2000).
It is worth noting that various brands of motor vehicle machines have indeed managed to dominate the global market by far and wide. There are lots of car models and designs through which clients can choose from and meet their personal tastes and preferences.
The manufacturing segment of the industry yields reliable compact cars, passenger cars, minivans and many other sorts of machines. For a long time now, the industry has recorded remarkable performance.
A case example is the Toyota Company. If financial figures are anything to go by, a turnover of US$ 216,255.13 for the year ending March 2011 was a mark of achievement by the Toyota Company (Rajagopal, 2000).
Company background
From a careful analysis of literature, it is definite that these two types of vehicles are largely Service Utility Vehicles (SUVs). Moreover, studies have shown that both are categorized as SUV/Crossovers. Further studies have illustrated that these companies manufacture the vehicles with similar drive types. For instance, FindTheBest.Com (2012) elucidates that their drive type entails AWD/4X4.
In addition, these vehicles have a seating capacity of seven passengers each. Furthermore, both have got 4 doors with an automatic base transmission of 6-speed.Besides, Girnar Soft Automobiles.Com (2012) note that these vehicles consume both gas and diesel for fuel.
To emphasize on this, their fuel capacity is approximately 26.4 gal. In terms of the interior features, FindTheBest.Com (2012) highlights that there are numerous aspects of Audi q7 that resembles those of Toyota SUV cruiser.
For example, both have got a hand free calling, power seats and leather upholstery. Moreover, they have an auxiliary input jack even though this is not well developed in the Audi SUV q7 (FindTheBest.Com, 2012). Needless to say, both vehicles are well installed with A/C in addition to climate control features.
Additionally, Audi manufactures a wide variety of automobiles apart from the famous Audi SUV q7. Since its establishment as an assembly company, it has been able to feed its vast market relatively well. They have more than 100 plants located in various strategic locations across the world. These plants are situated in different continents although they operate with a very close linkage.
The subsidiary companies adhere to strict designs which have been formulated at the central plant (Tram, 2010). Customers of this company have access to competitive after sale products which include trucks, vans, sport utilities and passenger cabs.
Through strategic marketing, this firm records a relatively stable financial turnover which ranges around US$128,954.00 per annum (Rajagopal, 2000). As a matter of fact, the company has been able to navigate through the competitive automobile industry with much ease due to its versatile marketing concepts.
Macro-environmental forces
The macro-environmental forces in both companies are determined by the consumers’ tastes and preferences. For instance, there are standard features that can be used to evaluate the similarities between these two vehicles. Some of the features that are common in both cases include air conditioners, CD player, power steering and power windows.
Further studies have revealed that these vehicles have got similar antilock braking system and central locking (Girnar Soft Automobiles.Com, 2012). There are other standard features that are meant for safety and can be identified in these vehicles. These features include stability control, side curtain airbags, engine immobilizers and front for lights (Girnar Soft Automobiles.Com, 2012).
This comparison can only be relevant to the study if it shows how these two companies apply marketing concepts to appeal to their customers. The strategies laid down are of great importance. To start with, the competition element between the two automobile companies is quite clear.
Although many firms in this industry make disguised following of rival models (Pride, Hughes & Kapoor, 2011), these have not employed such principle. Their operations are distinguished by worldwide objectives. Their style is also dominated by bidding in order to reach out the widest market possible.
It is worth noting that Toyota operates with relatively open market objectives. This global firm has been known to allow customers and all other stakeholders to follow day-to-day achievements of the company. They keep information on the attributes of the products at the disposal of the market. This has been achieved through diversification of online business (Tram, 2010). The company has a special focus on customers.
They do not merely give close attention to current clients. All the potential buyers are also given due attention as part and parcel of building a strong marketing portfolio. They provide a motivating experience to anyone who shows interest in their products.
For this reason, an emphasis is given to construction of strong relationships between the company and consumers of its products. This explains why the Toyota SUV cruiser makers avail large amounts of product and company information to those who are interested in them.
Micro-environmental forces
On the same note, Audi has a professionally similar operation. Their approach slightly varies in the sense that their products have incorporated an element of customer specification (Tram, 2010). There are four major marketing aspects associated with this company. To begin with, constant promotion of its model products is a very key element. Customers are provided with directives about the design makeup of each product.
The biggest brands have been left under the care of loyal customers. According to Rajagopal (2000), companies which have established customer loyalty have little to do when it comes to realizing optimal competitive advantage in the market.
In simple business terms, uniqueness has helped the Audi automobile brand to propel its sales in the automobile market. The firm is geared towards preserving its customers.
Ideas on marketing campaigns are inbuilt to every single interaction with customers. They have market based approach to product designs. This is shown by their reinforcement on customers’ input in terms of designing their products.
SWOT analysis
This analysis attempts to discuss the strengths, weaknesses, opportunities and threats that may be facing each company.
Strengths
It is worth mentioning that Audi SUV Q7 vehicle is made by Audi Company while Toyota SUV Cruiser is made by Toyota Company. In terms of their model and trim, the former is a Q7 replica while the latter is a land cruiser. According to Girnar Soft Automobiles.Com (2012), examining the average gas mileage is indeed essential when purchasing a vehicle.
It is evident that both vehicles have a relatively low mileage which is an opportunity for growth. Audi SUV Q7 has an average gas mileage of 19 MPG while the latter consumes about 15.5 MPG. However, there are other factors to consider while analysing their gas mileage.
For example, research has shown that these vehicles have diverse level of gas mileage both in the city and while cruising on a highway. To elaborate on this, it is imperative to note that the Audi SUV Q7 has a gas mileage of 12 mpg while on highway and 16 mpg in the city (Girnar Soft Automobiles.Com, 2012).
Weaknesses
Contrastingly, the Toyota SUV cruiser has got a highway gas mileage of 18 mpg and 13 mpg in city. The two vehicles from these companies also differ in terms of their Horse Power (HP). FindTheBest.Com (2012) notes that the Audi SUV Q7 has a horsepower of 272 HP.
On the other hand, the Toyota SUV cruiser has a horsepower 381 HP. On the same note, the two vehicles have dissimilar prices when being marketed. For instance, a recent case study conducted in the companies revealed that the Toyota SUV cruiser fetches up to 68, 020 US dollars while the Audi Q7 sells at 46, 250 US dollars.
The latter also lacks the hill-start assistance which is usually one of the major safety features which can be found in the Toyota SUV cruiser Hence, price factor may be a weakness when marketing these vehicles since some segment of the market may not afford their costs.
Opportunities
Despite the fact that the vehicles consume similar type of fuel, their engine types are completely different from each other. For instance, the Audi SUV Q7 has an engine type of 3.0l Turbocharged V6 while the Toyota SUV cruiser has 5.7L V8 (Girnar Soft Automobiles.Com, 2012).
Additionally, the Audi Q7 has additional options for the engine. The Audi SUV Q7 also lacks the active head restraints which are considered as some of the crucial safety features (FindTheBest.Com, 2012).
On the other hand, the Toyota SUV cruiser does not have all-season tyres, a factor that is an added advantage for the Audi SUV Q7. However, it has got alloy wheels and moon roof features which make it more preferable by buyers than the Audi SUV Q7.
Threats
The main threat facing both companies is the stiff competition among individual companies in this industry. In addition, constant change in tastes and preferences of customers has also been a threat since newer designs have to be unveiled on a regular basis.
Market segmentation
From an economical perspective, it is recommended to consider other dimensions and capacities for the two vehicles. For instance, the curb weight, width, length and height are very important features that give each vehicle a competitive advantage against each other.
Hence, the market is segmented along these specifications. The Toyota SUV cruiser has a length of 294.9 inches, 74 in, high and a width of 77.6 in. (FindTheBest.Com, 2012). For the Audi SUV Q7, their dimensions entail a length of 200.3 inches, a height of 68.4 inches and a width of 85.7 inches respectively.
Since they have varying dimensions, this affects their curb weight where the Audi SUV Q7 has 5.192 ibs and Toyota SUV cruiser has a weight of 5,766 ibs (Girnar Soft Automobiles.Com, 2012).
Target markets
A quad headed strategy is shown by the analysis of these two companies. Their concepts are spear headed by product designing in relation to customer satisfaction, management of demand, market planning and consumer information especially to the various markets that are targeted. The desirable outcomes have been achieved by giving the models a taste which is extremely unique.
Simplification of buying is also observed. The process has been made easy and can be done at any time. Online purchases have been prioritized bearing in mind that e-commerce has been a viable target market.
Differences in Toyota SUV cruiser, Audi SUV q7 are clearly spelt out in this regard. As a matter of fact, it is possible for a customer to pursue personal tastes and preferences bearing in mind that the two classes of vehicles have an appeal of market in spite of price difference.
Targeting strategy
Demand management is done accordingly in the two companies. The only disparity is in the part of steps taken in doing it. Increasing demand usually occurs as a result of strategic choices made in the company. Toyota has always been undertaking design changes in order to bring strength in their products. On the other hand, Audi models are flexible enough to make significant appeal to customers.
Generally, creation of more demand is a major factor towards competition. It is through strategic market competition whereby every company has put compounded efforts in order to be able to win a larger share of the market.
For example, Toyota body customization has been a strong pillar to hold on as a competitive factor. Their machines are believed to be heavy enough to resist tear and wear (Pride, Hughes & Kapoor, 2011). The Audi Company is quite phenomenal towards incorporating style with strength. This has been triggered by the need for customer satisfaction.
From the above comparative analysis, it is evident that both companies exhibit a remarkable market expertise. Credit is due to strategic choices made by their leading teams. Notably, quality cars blended with excellent market games have given Toyota SUV cruiser and Audi SUV q7 the high competitive niche which they hold in different markets.
Clever application of marketing strategies is therefore as important as production of high quality products. Apparently, Toyota SUV cruiser and Audi SUV q7 have managed a good performance in the global market.
Positioning strategy
These brands have been positioned in a way that they occupy the systems of customers compared to any competing brand.Having discussed the distinct features that can be used to identify the vehicles in the two companies, it is imperative to note that there are numerous marketing concepts which both companies use in order to make attractive returns in the market.
For instance, studies have shown that manufacturers in Audi and Toyota companies always aim at making the vehicles luxurious in order to appeal to the customers (HowStuffWorks.Com, 2012). Factually, the contemporary markets need a well-to-do folk and hence the companies have to demonstrate that they are capable of producing quality products.
Consequently, these companies are compelled to manufacture vehicles that will satisfy the customers’ demand and meet the market criteria, a factor that makes them to earn attractive profits (HowStuffWorks.Com, 2012).
In the event of emerging competition, these companies ensure that their products have distinct features that make their products remain outstanding. This implies that despite the similarities, there are diverse features that give their vehicles a comparative advantage against others in the market.
In this case, they endow the vehicles with powerful engines, refined interiors and sophisticated driving dynamics which shoppers are quick to desire (HowStuffWorks.Com, 2012). Empirical research has revealed that redesigning is also a major marketing concept used by these companies in order to make a good kill.
For instance, manufactures rely on major updates concerning upcoming brands of vehicles from other companies (HowStuffWorks.Com, 2012). Through these updates, they are able to improve the standards of certain features while employing minor trim changes that are appealing to customers.
Balanced marketing concept is based on companies’ intentional analysis of customers’ needs to be able to make plans of satisfying them amicably (Pride, Hughes & Kapoor, 2011). This is not always the case. It is usually in cases of optimally performing companies where a clear picture of marketing strategies is profound. Toyota SUV cruiser and the Audi q7 present a reliable performance for study.
These firms use strategic actions with marketing concepts to make the best out of the global market. One of the concepts relied on is gathering of data related to market environments. This has been a tool which the companies apply in finding the most resourceful groups of consumers for specific products. Groups of consumers are divided according to interests and localities.
The companies also conduct comprehensive studies and analyses of the markets at different locations. This is treated as one of the inevitable practices which ensure good performance in the motor industry. They have links for disseminating technical improvements which are put in place. In normal interaction with customers, they get a chance to conduct surveys on what is appealing to them.
Recommendations
It is highly recommended for the two companies to enhance their integrated customer relations management. According to Tram (2010), customer relations management refers to the overall maintenance of good relations with the aim of optimizing customer satisfaction.
Hence, companies should embrace high quality services. Besides, growing customer base for both companies should be a priority in order to improve sales. Finally, high standards of market relations should be used to enhance consistent performance of Toyota SUV cruiser and Audi SUV q7 (Rajagopal, 2000).
References
FindTheBest.Com. (2012). Unbiased data driven comparison. Web.
Girnar Soft Automobiles. Com. (2012).Compare Audi Q7 and Toyota Land Cruiser Prado. Web.
HowStuffWorks. Com. (2012). The Consumer Guide to 2012 Premium-Large SUVs. Web.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2011). Foundations of business. Mason, OH: South-Western Cengage Learning.
Rajagopal, J. (2000). Marketing: Concepts and cases. New Delhi: New Age International Publishers.
Tram, M. (2010). Innovate your company: Trends to follow for a competitive advantage. Weinheim: Wiley-VCH-Verl.