Consumer Behavior – Week Three
1/25/2015

Aero Motors has been trying to make their way into the US market, and now they have come up with the idea to come out with a compact car that could compete in the current market. Aero motors new compact car model is called the Horizon, because this name gives the impression of the new and improved future. The Horizon would be fairly easy to advertise for because the car could have a trademark picture of it riding into the sunset or television commercials with this new innovative thing and a classic feel good song could be playing as the car rides off into the sunset. Aero motors has been a proven successful company in European markets however, to become successful in the United States a decision needs to be made about branding strategies and whether the company will go-it-alone or will decide to begin as a partnership. Here are a few pros versus cons to help decide on which would be the best option.
Go-It-Alone
The new fuel efficient compact car would cost around $15,000 and $20,000 and be competing with the Toyota Camry, Honda Civic, Ford Focus, Chevy Cruise and other popular compact cars. The customers will be lower to upper middle class people who are looking for fuel efficiency to commute for work or school. Pros More control over business decisions Increased productivity because you don’t have to go over and clear ideas with anyone else before making decisions. More personal comfort and freedom to work at your own pace, follow your own rules, and set your own hours Cons Limited cash flow options You have to do everything yourself There would be nobody to provide checks and balances and give constructive criticism.

Partnering Strategy Aero Motor’s new Horizon is ready to come to the United States and try to compete with the current popular compact fuel efficient cars. The customers are middle class drivers who are in the market for a fuel efficient compact car. One idea for partnership would be to find an owner of the rare to the Unites States car the Pinnacle that is a luxury car from the same company. These people would know other people that are interested in this make of car and have ideas of where to start and how to get a foot in the door. Pros More sources of cash flow Allow more room to expand Expand customer base by diversifying the expertise Team feedback would help to offer new ideas and let you know their opinion of your new ideas Tasks can be evenly delegated between the partners instead of having to do everything yourself. Cons Giving equity and control to the wrong person could cause a lot of problems especially if you do not know the other person very well. Working with partners would mean setting rules and guidelines in order to make sure each partner is putting in equal effort. Disagreements are naturally going to happen.
Recommendation
The new Aero Horizon compact car is going to create something new and fresh in the US automobile market. The choice needs to be made whether the brand will be launched as a partnership or as a go-it-alone brand. There are risks and benefits to both strategies and Aero Motors needs to decide which strategy that the benefits outweigh the risks and go from there. Both strategies have the potential to be successful if done wisely and effectively, but as a company who is unknown in the US which already has a lot of fierce competition it will be a difficult field to step into alone so it would be wise to consider beginning with a partnership and combining forces with other experienced people. If the company does really well then it would have the potential to expand and split into a sole proprietorship if that is desired.
References
Hawkins, D., & Mothersbaugh, D. (2013) pg. 335.Consumer Behavior: Building Marketing Strategy (12th ed.). New York: McGraw-Hill.
(2015). Starting a Craft Business: Partner Up Or Go It Alone? Retrieved on 1/25/2015 from http://craftyscrappyhappy.net/2014/07/starting-a-craft-business-partner-up-or-go-it-alone/
Steinkerchner, S. (2013) Your Start-Up: Go With Partners Or Go It Alone? Retrieved on 1/24/2015 from http://www.forbes.com/sites/sundaysteinkirchner/2013/11/14/your-start-up-go-with-partners-or-go-it-alone/