Julius Caesar Marketing Strategy

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For Alec, the team developed an advertisement theme to showcase safety because the vehicle’s main attributes are safety, quality, durability, and reliability. These characteristics make the vehicle favorable among (2E) Economy/Family and (1E) Economy who have basic transportation needs for having families (please see appendix for further details on the customer segment). They seek a vehicle that will have both cargo-carrying capabilities as well as people carrying capabilities. Given that the vehicle’s features are superior in comparison with its major competitor in terms of horsepower and size, we spent on promotions by increasing from $20 Million in Period 0 and 1 to $25 Million in 2, then to a $30 million in Period 3 to showcase Alec’s attributes …show more content…

We increased its size to 38 to make it more appealing to the family sector. The vehicle’s style was also improved from a 1 to a 2 in its style to try to capture the singles segment. An investment of additional $10 million was made in period 2 in promotion to improve our sales in dealerships. Finally, to ensure information about the Alfa upgrades was accurate, we also invested $10 million on training. From the beginning, Alfa’s major target segment was people with families that prioritize safety, quality and price (see appendix for further details on the customer segment). The rationale behind conducting the upgrades were to increase the Alfa’s potential customer pool by attracting singles who highly favor a vehicle’s style. This decision positively impacted the Alfa’s sales on the family segment by causing an increment of 20% from period 0 to period 4. Also, the sales indicate an upward trend, which reflects the acceptance of the upgrade. However, the vehicle did not attract the singles market despite the styling upgrade. Please refer to the appendix, for additional information on the outcomes of investments on training and promotions. The upgrade on Period 1 also caused an increment of 4% of the vehicle variable costs which reduced its contribution margin per car from 34.9% to 30.6% while remaining within the acceptable contribution percentage. Thus, our firm did not increase the price of the Alfa to align with the interest of our family segment. Please refer to appendix for additional information on

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