Marketing for Holden

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The comprehensive analysis of market entries to China for Holden

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Executive summary
With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly introduces Shanghai. Then it presents the market-entry strategies and focuses on comparison on the advantages and disadvantages of Export-based entry and manufacturing-based entry. Through the comparison, the export-based entry is recommended to Holden. Finally, the report analyzes the 4p in marketing, which are price, place, products and promotion. In short, Shanghai is a bid developed country with the encouragement from the government to promote the development of automobile industry.

Table of contents

1.0 Introduction………………………………………………………………………. 1 2.0 International and domestic marketing environment analysis…………………….. 2 2.1 The analysis of Australian and Chinese market……………………………… 2 2.2. Estimated market size and gap analysis in Shanghai………………………... 3 2.3 Expected sales and market share analysis…………………….……………… 4 3.0 Market entry strategies…………………………………………………………….5 3.1 The analysis of Export-based entry………………………………………….5 3.2 The analysis of manufacturing-based entry………………………………….6 4.0 Recommendation on how to enter Chinese market ………………………………6 4.1. Market entry strategy choice…………………………………………………..6 4.2 Estimated budget………………………………………………………………..7 4.3 Time frame (2014—2017)………………………………………………………8 5.0 Conclusion…………………………………………………………………………9 6.0 Reference ……………………………………………………………………...…11

1.0 Introduction
Holden is founded in 1856 with headquarter in Melbourne and it set into the field of automobile manufacturing after the company designed the body of the car for the first time in 1918. Australia-based GM merged with Holden in 1931 to establish GM-Holden Automobile Corporation. Holden's Vehicle Operations produce 42 models from four vehicle body styles for domestic and export customers. For domestic market, the facility produces the Commodore range of sedans, Sportwagon and Ute together with Caprice long-wheel base luxury vehicles (Rob M 2011). Holden's Global V6 Engine plant is located in Port Melbourne, Victoria and it gives Holden considerable flexibility in the range of engines it can produce for local and international customers including export customers in South Korea, Thailand and China. Holden is a centre of expertise in design and engineering for GM globally. Holden is one of GM's nine global design centers responsible for vehicles such as the Holden Commodore and Chevrolet Camaro. Holden is also the centre of expertise for large, rear-wheel drive vehicles in the GM family as well as a major power train engineering centre with expertise in R&D and customer programs in V6 and V8 gasoline, CNG and LPG applications.

2.0 International and domestic marketing environment analysis

2.1 The analysis of Australian and Chinese market
The economic crisis has negative effect on the global economy with high unemployment rate. As for Australian automobile industry, both the sales and production decrease. Although there is challenge, opportunity coexists. Holden saw the chance for industrial integration and it is inclined to import components from China and other countries. Hence, Holden is making efforts to enter Chinese market in order to achieve market diversification. The...
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