Bentley Motors Marketing Analysis
What is international market segmentation? What challenges does it pose to Bentley?International market segmentation is a marketing strategy which includes a wide target market. If we start a business, market segmentation is very important. If our company is international company, we need to understand about the international market segmentation.
According to customers’ need and want, location, culture and religion, we must target market. It is international market segmentation. International market segmentation consists four factors; (1) Geographic location ,(2) Economic factor (3) Political and legal factors and (4) Cultural factors. The traditional markets of Bentley Motors are the United States, the United Kingdom and Europe. However, sales in its traditional markets slumped in 2008 due to the global financial crisis. Some orders for its cars were cancelled immediately and sales dropped by 24% that year compared to 2009. This forces Bentley started to search for new markets to increase sales.
Bentley use different kinds of market segmentation to segment their international market. Bentley realized that the use of the more traditional market segmentation variables such as age, gender, education, and level of economic development does not seem to reflect the real aspect of market behavior. Especially the burgeoning purchasing power of the well-to-do in the big emerging markets such as Brazil, Russia, India and China. The result of search was market segmentation based on new economic factors like number of sales in that market.Q.2 Using the full spectrum of segmentation variables, describe how Bentley segments and targets the international luxury car market.The full spectrum of segmentation variables are lifestyle, emotion association, educated and etc.
It targeted high-income groups who want to buy into the symbolism and history of the Bentley brand. It targeted again groups in the emerging economies who are typically older or retired males, highly educated and high earners. In comparison, Bentley’s target consumers in emerging markets are often the young, less educated, entrepreneurs who share a number of important commonalities. They have a strong appetite for Western-branded luxury goods. Recognizing the differences and the opportunity to be had from differentiating its targeting efforts. And its also target the traditional market with its original value proposition of luxury, performance, and exclusivity.Q.
3 Has Bentley differentiated and positioned its brand effectively? Explain.Bentley has differentiate and positioned its brand effectively. High-touch differentiation and positioning program tailored to the carefully defined well-to-do groups in each of its markets. Bentley offers an exclusive collection of limited non-motoring products produced under license from its equality exclusive partners. For example, Zai a Swiss maker of luxury ski equipment known for its craft and exclusivity. Bentley offer him equipment for the Bentley Styling Studio in England. And then they made the golf events, these events bring together golfers from different contents with an common interest.
China has now replaced the United States as Bentley’s largest market. In Russia, Bentley’s sales increased by 45% in 2011.Q.4 Given the economic downturn in developed economies and the slowdown in emerging economies such as China, will Bentley continue to grow? Why or Why not?Bentley will continue growth among economic market. Because Bentley brand around the international is developing and crafting one of the world a most desirable products. Bentley has succeeded differentiating its position in the global luxury car market through a market-driven strategy based on responsive cross-market segmentation. The use of the more traditional market segmentation variables such age, gender, education, and level of economic development doesn’t seem to reflect the real aspect of market behavior, especially the burgeoning purchasing power of the well to do in the big emerging market as like Brazil, Russia, India and China.
Bentley still going to improve especially in the existing emerging economies as well as those in the making , such as Vietnam, Cambodia , Kazakhstan, and the Philippines, where the nouveaurich have just started to appreciated the quintessentially British tradition and heritage that is embroidered in Bentley. Therefore, reinforce relationship with valuable customers is the most important point for business to moving forward with success.Q.5 What recommendations would you make to help ensure Bentley’s future growth?First, Bentley need to change their strategy for the new market. In the current market they use market penetration and product development. In the new market, they use market development and diversification. Especially, entrepreneurs like the China market, they have to integrate their cars to performance and technological aspects Bluetooth, Wi-Fi connections, touch screen system to attract the China customers.
They can that way to attract not only the China customers but also Asia customers. Next Product development should be good too. Bentley could do localization, make a little modification on appearance and styles for cars in different markets. Localize the maintenance service, keep the brand through different channels. That is the recommendations to help ensure Bentley’s future growth.