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Q: How stratification affects the marketing strategies of automobile manufacturers?

What is Stratification:

Stratification is a system in which groups of people are divided into layers according to their
relative property, prestige, and power. Every society stratifies its members. In every society of
the world, gender is a basis for stratifying people. Example of stratification systems; slavery,
caste, class. So, the market has been divided into different classes, and how they react to the
producer and what is their requirement.

Marketing strategy:

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered around the key concept that customer
satisfaction is the main goal. A marketing strategy combines product development, promotion,
distribution, pricing, relationship management & others. It identifies and explains the
marketing roles of the firm and how they will be achieved. A marketing strategy should be
focused around the key concept that customer satisfaction is the main goal. To design a
winning marketing strategy the marketing manager must answer two important questions.
What customers will we serve (what’s our target market)? And how we can serve these
customer’s best (what’s our value proposition).

When we talk about Strategy- A strategy is a fundamental pattern of present & planned
objectives, resource deployments & interactions of an organization with markets, competitors
& other environmental factors.

Strategy for Automobiles:

As the role of the automobile has evolved from a basic transportation solution to a social
statement and, more recently, a fashion item, so too have the automotive marketing and
promotion strategies changed in recent times. The role of advertising has become so critical,
that the success of a new model can be as dependent on the effectiveness of the ad campaign as
it is on the attributes of the car itself.

Manufacturer’ Strategy for automobiles:

The automobiles industry is facing new and pressing challenges. Globalization,

industrialization and increasing competition are pressing the face of industry. In addition
increasing safety requirements. Only those companies will prosper in future that are focusing
on the demands and values of the customers. So, the manufacturers today are also focusing on
Brand management and Quality management.

Due to globalization in market and increase in competition automobile manufacturers make a

strategy according to the different classes that exist in the economy. Because, the preferences
of the consumer greatly effects the industry.

Impact of Stratification to Automobile manufacturers:

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As we know that, the society is divided into different classes, So each class affect the
automobile manufacturer in a different way. For example, the person of an upper class has a
high demand for automobiles. But a person of the middle class demand may be low. So, it
becomes very difficult, by keeping in mind the competitors strategy, to sell the same product
to the different classes for the manufacturers. Some companies are making the friendly
environment cars that produce less pollution. Some for the middle class so that people can
easily afford it. Another factor that affects the automobile industry is the consumer’s level of
income. A higher salaried person will demand for Mercedes--- E-g. The managers or
executives that fall in lower upper class category

It becomes a challenge for the manufacture to compete nationally and internationally. Because,
globalization creates the competition. The U.S. automobiles companies are battling with the
Japanese, European and Korean companies from the last three decades. Globalization creates
the awareness to customers that demand to their local manufacturers the special cars. Because
today the world is only for super and hyper cars.

Impact of Different Classes

Upper- Upper Class:

Upper-Upper Class- The person who is by born rich. General Motors makes a car that
specially targets the politicians or businessman of the U.S government or like other countries.
Because, such people have needed a security. So, their demand will effect greatly to the
manufacturer and they will try to full fill it. So, such persons builds the goodwill of the
company by using their brand.

Upper-lower Class:

Upper-lower class- The person by making an effort becomes rich. Managers, executives and
other businessmen they required a luxuries car –e-g—Mercedes. So, the Upper class person
becomes a good sign of the company. In India Sachen Tendulkar using a Mahindra car.

Middle Class:

The people with average income also demand a car, So the companies has to keep in mind
their interest. The people fall in middle class with average income are targeted by the SUZUKI
– Mehran.

Lower Class:

The people with lower income also affect the manufacturer of auto mobiles. Not individually,
but collectively, they have to travel for their daily work, by paying fair. So, the best example is
the SUZUKI Bolan, in Abbottabad. Where they company feels the demand of the people and
fulfills them.

Stratification Impact to Indian Automobile Manufacturer:

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As the poverty is at high point in India, So the buying power of the people of India is less
therefore the manufacturers of different automobile companies are making a different
strategies in India. They are introducing more and more B segment cars that are doing more
and more business there. Stratification is playing its role in India. So manufactures are forced
by the demands of the peoples to make the B segment cars and producing more fuel-efficient
prducts

Grandis (Mitsubishi) and santro are the best examples that were liked by the peoples due to
low price. Due to low income level the manufacturers are aware, that they cannot afford the
higher price. So, Hyundai, Toyota make a low priced cars and now Mahindra,Ttata, Hindustan
motors and Honda are providing the low priced cars. Though there is also Upper class exist,
for that particular class G.M, Daewoo Motors and Suzuki are providing services.

Stratification Impact to U.S. Automobile manufacturers:

The level of income of people U.S is very good, it was so stable economically, Japanese,
European and now Korean manufacturers frequently in business there. They are introducing
new expensive models there, because he people there can afford to buy a hyper car and also an
economical car therefore the market there is in full running. G.M is the best example of that is
making the cars. These companies are trying to make the friendly environmental cars.

Some Examples of Automobile Manufacturers:

Suzuki- The Suzuki manufacturers are making different cars for different classes of people.
Suzuki Mehran is one example of it which is affordable by large number of the normal income
society on the other hand Suzuki Baleno and Cultus are made for the higher income people.
Therefore Suzuki Mehran has a big market share in Pakistan, Because they more liked by the
middle class people of Paikstan.

General Motors- The largest manufacturer in America, it produce the special cars. Majority
of Americans like it, company it more targeted by the elite class, recently they make a car that
is bullet proof for the Upper-Upper class.

Toyota- Toyota has a good name in the international market; they are providing the different
models for different classes. Now, due to financial crunch and increasing prices of fuel
and gas Toyota started to make the less fuel consuming cars.

References:

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http://www.findarticles.com/p/articles-automanufacturers

http://www.auto.indiamart.com/auto-industry/

http://www.buzzle.com/articles/us-economic-impact-on-automobile-industry.html

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