“Aston Martin Unveils Sub-$100,000 Edition for North America”

Description of Event Aston Martin Lagonda Ltd. Which is one of the best luxury sports car manufactures from England launched two special editions for North America market this week in New York international auto show. This two special edition will be sale in third quarter of this year; one is GT version of Aston Martin V8 Vantage and the price will begins at $99,900. The Vantage GT will come in either a coupe or a roadster body style with either a six-speed manual or seven-speed automatic transmission. Both powertrains will have a top speed of 190 miles per hour and the Vantage GT automatic gets 16 mpg in combined driving. Another one is carbon edition of 12-cylinder DB9 and the price starts at $199,995. The company’s purpose is through sale this special two edition vehicles in North America market to bring more customers and increase the brand awareness from this target market. In 2013 Aston Martin sold 4200 cars it’s 11% increase than 2012. North America market sales volume is 30% of the total sales volume. As one of the Tesla Motors investor Germany’s Daimler AG last year own as much as 5% shares of Aston Martin in order to share technology with them. But it is non-cash deal, the Germany automaker does not have voting right in Aston Martin board. Daimler’s Mercedes-AMG department will help develop V-8 engines for Aston Martin’s next-generation models. Also Aston Martin planned to invest 500 million pounds in next four years.

Connection to International Business This action that Aston Martin released the special editions for North America market is an expanding strategy for global company. As we know global company usually sale same product in anywhere of the world, they views the world as a single market, but in order to got more market share the company usually divided the whole market into several small area. For example, North America market, South America market, Europe and Asia. Based on different areas customs behavior offer some special edition for that marker but the basic model is the same in the whole market. As we see in the news Aston Martin sold 4200 cars in 2013 which is 11% increased than 2012. And North America market has outperformed the sales volume is 30% of the global total sales volume. That's a good sign for a company, it means in this market customer is interested and will be has more demand for this brand. In the key point launched a special edition only for this market is a very good way to got more market share. Because as the sales volume increase the demand is also increased, customers in this area will be more attention in this brand, at this time released special edition to consumers they will feel respected and has more favorable impression for this manufacturer. Thus this is a business strategy for market expanding.

How others Benefit/Learn from Situation Other companies can learn from Aston Martin’s example has two key point. One is launched new special edition in right time and right market. Time is a very important point in doing business if a company released a new product in a poor performance market it will not has too much change in sales except the product is over outstanding. On the contrary, if the manufacturer released the product in right time it will be push costumer buy more of it, company also earn more brand awareness. Another point is that as a luxury sports car maker Aston Martin does not belong to any automaker group. Germany’s Daimler AG last year own as much as 5% shares of Aston Martin but it is non-cash deal, the Germany automaker does not has voting right in Aston Martin board they share technology with them. It's a very good way to protects own brand. First because Daimler AG does not has voting right in Aston Martin board so all the decision making, market strategy, developing and expanding direction and etc. rights still centralized by Aston Martin leadership group. Aston Martin just take advantage form Daimler AG, because they has very high performances division can help Aston Martin developed new engine for next model. On the other side, operating independence can control the brand equity. Because usually when a brand joins a group they share information to each other, and based the development of the whole group, in order to lower cost, diversified product efficiency to market expansion. The automaker groups use one brand parts into many different brand cars. It makes products quaintly level lower, especially for high-end cars the customer is pay more attention on quality. Thus, operating independence can get more control on brand equity.

Link: http://www.bloomberg.com/news/2014-04-15/aston-martin-unveils-sub-100-000-edition-for-north-america.html