Price Drop of Chrysler 200, Dodge Journey and Dodge Avenger - Article Example

Chrysler 200, Dodge Journey, Dodge Avenger See Prices Drop Table of Contents Short overview of the article 3 To whom does article address 3 Objective 4 Marketing Concepts Used 4 Course of Action in Article 5 Personal course of action 6 Reference 7 Short overview of the article The article primarily deals with the pricing competition in automobile industry specifically in the midsize vehicle segments. Considering the market competition and lower demand due to higher price of cars, Chrysler, a leading automobile manufacturing in the global market has attempted to reduce the sales prices of its multiple new models like Dodge Journey, Chrysler 200 and Dodge Avenger. Apart from the destination charges for Dodge Journey, others’ destination charges have remained same. However, the prices of Dodge Avenger and Chrysler 200 have reduced to $18,995 comparing to $19,245 of last year. In case of Dodge Journey, the sales price has been dropped significantly i.e. by $1,450. The primarily reason for such significant prince changes is due to compete with market leaders in midsize automobile manufactures like Suzuki, Ford, Kia etc. Chrysler has given more focus on its Dodge Journey as it is believed that with reduced price ($20,995), it has become one of the most affordable midsize vehicles in comparison to competitors’ products like “Kia Sorento ($21,250) and Mazda CX-7 ($21,990)” (Bird, 2011). To whom does article address This article mainly addresses Chrysler’s strategy pricing strategy for 2012 in order to combat the intensified the competition from the market leaders in midsize SUV segment. However, the prime focus of this article is on the new price ranges of midsize vehicles with value addition features offered by Chrysler. Chrysler has planned to compete with the key rivals with its three major models including Chrysler 200, Chrysler 200 Convertible, Dodge Avenger and Dodge Journey. Moreover, the article also indirectly addresses the key rivals of Chrysler and the market leaders in midsize vehicles. Objective Considering the major area of this article, the prime objective is to offer the market signal by Chrysler to the market. Marketing signal by Chrysler may be an effective to generate the high demand for its automobile products for the coming year. The article has also offered brief descriptions of products that signify positive market indication for future. Moreover, through this article, competitors of Chrysler also get a market signal regarding the motives and intensions of Chrysler for beating its rivals (Porter, 1998, p.75). Marketing Concepts Used The automobile company has turned into a global industry where players from different industries are trying to in capture the prevailing market opportunities. The competition in automobile industry has been constantly changing with time. In the regard, thee major aspects are market structure, innovation and economic development of customers. On the other hand, with technological development and greater consumer awareness, the demand of buyer has also change significantly. Apart from the brand products, they are seeking better innovative automobile products with lower prices and hence, the competitors are also trying to meet such consumer demand. The automobile manufacturers are trying to incorporate innovation each level of business including marketing, product development, process development etc (Chithra, 2006, p.25). Considering this changing marketing competition in automobile industry, Chrysler has tried to gain a competitive edge by restructuring their marketing mix where main focus is on product and price. In article, it is quite notable that Chrysler has also restructured its products as per the market needs along with the pricing strategies. Chrysler has attempted to bring product development in its existing product ranges including Dodge Journey, Chrysler 200 and Dodge Avenger. In case of Avenger has got its new product features which are similar to model for 2009 year. However, base Avengers will come with some of new features like cruise control, air conditioning, mounted controls, power mirrors, windows and locks. On the other hand, in case of Chrysler 200, it will come with four ranges consisting of “LX, Touring, Limited and S trim level” (Bird, 2011). Dodge Journey has given higher priority as Chrysler believes it to be the strongest product against the competitors’ products like Mazda CX-7 ($21,990) and Kia Sorento ($21,250). Chrysler has replaced the old Dodge Journey with three new models including Crew, SXT and SE models. Their attractive and new features include extra value added features like five sitting arrangements, stereo with six speakers. Moreover, the SE model also includes powertrain with four-cylinder. These product developments are meant to aim gaining first hand position in midsize car segment. Chrysler has also realized the necessity to consider the price factor into account and hence, it is aiming to come up with these cars with added features by offering lower cost. Course of Action in Article As per this article and the above discussion, it can be easily understood that Chrysler has restructured its strategies relating to products and prices. The article does not offer any other specifications like its specific marketing campaign or any other market place. However, there are certain issues associated with Chrysler that can be identified through the given article. Firstly, Chrysler has reduced its prices as well as it has incorporated many new product features. However, the price of Dodge Journey still remains higher than the Subaru Forester which is another market leader in this segment. Secondly, in response to Chrysler’s attempt of restructuring its new strategies to combat the competition, the leading marketing leaders will also follow the same strategy by reducing prices ranges of its products with new added features. However, in future, Chrysler is expected to face the same stiff competition. Personal course of action In order to gain an upper hand position in such competitive market, Chrysler should consider a different set of strategies. In automobile industry, brand plays a significant role and higher brand recognition is very effective against the pricing strategies followed by competitors. In process of brand development, it must strike a different area for example, fuel economy cars. Dodge Avenger offered by Chrysler includes many new features but in case of fuel economy, other competitors like Ford, Toyota etc have developed their brand image in market (Deloitte, 2009). On the other hand, Chrysler offers additional product features like higher horsepower; transmission for automatic multi-speed etc but these include additional costs that may annoy its customers (Cars.com, 2011). Therefore, Chrysler should take necessary steps to address such issues and should be prepared to response according to competitors movements. The marketing campaign is the most critical task and a proper and effective marketing campaign can add value to the company’s sales figure by acquiring significant market share in midsize car segments. Reference Bird, C. (August 15, 2011). 2012 Chrysler 200, Dodge Journey, Dodge Avenger See Prices Drop. Retrieved on August 16, 2011 from http://www.chicagotribune.com/classified/automotive/sns-2012-chrysler-200-dodge-journey-d20110815,0,2665927.story. Cars.com. (2011). 2012 Dodge Avenger. Retrieved on August 16, 2011 from http://www.cars.com/dodge/avenger/2012/standard-equipment/. Chithra, G. R. S. (2006). Global Automobile Industry: Changing with Times. Retrieved on August 16, 2011 from http://www.outsource2india.com/kpo/site/includes/Global_Automobile_Industry11.pdf. Deloitte. (October 21, 2009). A new era Accelerating toward 2020 — An automotive industry transformed. Retrieved on August 16, 2011 from http://www.oesa.org/Doc-Vault/Industry-Information-Analysis/Deloitte-Accelerating-toward-2020.pdf. Porter, M. E. (1998). Competitive strategy: techniques for analyzing industries and competitors : with a new introduction. Simon and Schuster. Read More