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this presentation is about suggested way for lada company to enter iraqi car's market
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Lada coming soon in Iraq
With the new modifications
Lada
The industry : Automobile Country of Origin: Russia Company History:Lada's history can be traced back to the 60's when a car plant opened as part of a joint venture between Russia and Italy.
is a trademark of Russian car manufacturer AvtoVAZ
Lada products
Lada Niva - Lada - Granta Lada
- Kalina Lada Samara
Iraq at Glance
• Population 31,858,481 (July 2013 est.)
• Age structure:
• 0-14 years: 37.2%)
• 15-24 years: 19.6%
• 25-54 years: 35.8%
• 65 years and over: 3.2%
Iraq population pyramid
Economical factsGDP - real growth rate: 8.4% (2012
est.GDP - per capita (PPP): $7,200
(2012 est.)
Map and location
siba cars(iran); 35
Samand, a sedan manufactured by Iran
Khodro Co; 10
used cars cames from (kwait ,uae
jaban ); 10
chery (china); 25
others ; 10
Cars in Iraq market
Iraq cars market
After 2003, Iraq's auto market has been radically changed In terms of quality and quantity
But the market still lacks real competition, because of the fear of international companies to investment in Iraq because of the security situation
But the Iraqi car market can be represented as the following
Segmentation
Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one to another .
• Family cars
• Small cars – targeted at young adults and pensioners
• Fleet cars (once dominated in the UK by Ford and General Motors)
• Low price sports cars
• Luxury cars (Jaguar, Rolls Royce)
Market size potential
• Iraq with 30 million citizens find themselves with a growing income and a need for more reliable transportation.(according to autoblog.com)
• Iraq the world's fifth-largest oil reserves and a good population with high income , Iraq is attracting the attention of global automakers(www.autonews.com)
• the lack of modern vehicles is evident in the survival of many VW Passats that were shipped to Iraq from Brazil between 1983 and 1990 in exchange for oil.
• Cars have always been powerful emblems of a society. A small rush of international automakers into Iraq and rising sales are signs of optimism
• Higher incomes are generally accompanied by greater spending on durable goods such as automobiles
Market potential
• large demand growth from Iraq is expected to provide the critical minimum demand to support a few manufacturing or assembly units. Iraq is currently in the early stages of a rapid transition from a largely state-controlled economy to one based on private enterprise and free trade.
• (roads )To improve the road infrastructure, more than US$15 million is being invested in reconstructing
Marketing mix
price
promotion
product
place
Pricing should take into account the following factors:Fixed and variable costs, Competition , positioning strategies. Target group and willingness to pay.
product mix describes the combination of different product lines that the firm holds
Small cars, Family cars , Fleet cars , Luxury cars
A successful product or service means nothing unless the benefit of such a service can be communicated
clearly to the target marketAdvertising, Sales promotion, Public relations, Internet
Marketing and so on
Getting the right product to the right place at the right time involves the distribution system
The outlets and distribution Distribution strategy :Proposed distribution strategy is exclusive distribution
Required adaptation for local market
• Features adaptation (TECHNICAL)
• Price adaptation (levels)
• Advertisement adaptation
• AN SO ON
By: GHAYTH ALI JARAD