Oklander, M.

Zlatova, I.

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Scientific hub Dnipro University of Technology

Zlatova I.M. Oklander, research supervisorOdessa National Polytechnic UniversityTHE PROMOTION OF THE NATIONAL CAR BRANDUkrainian passenger car market has always been attractive for world motorcompanies as unsaturated market with low number of cars per 1000 citizens (187cars). But car market it has changed dynamically lately. The main reason of the lastchange is the import taxes increasing and the enactment of the recycling law. Thecurrent situation is favorable for Ukrainian car factories, which are strategicallyimportant for our state. The taxation changes have affected on ZAZ trade mark,which has taken the first place by market share indicator. The market share of thiscompany has grown to 8,3% by results of 9 months 2013 (Fig. 1). So that is a greattime for strengthening positions and developing.Fig. 1. Car market shares according to results of 9 months 2013ZAZ Company took a lead by using pricing policy, because low price is themain reason for purchase of a car in our country. Nine the most purchased cars inUkraine belong to low-cost price segment and three of nine models of cars belongto ZAZ trade mark by results of 8 months 2013. But enactment of new recyclinglaw is expected. It will increase prices on cars, manufactured by the nationalplants. In conditions of price increase ZAZ cars can lose the priority and thecompany must search for other marketing instruments to manage this situation.Such methods as developing new product policy and changing product portfolioare too expensive and lengthy, so they don’t match the tactical planning in theshort term period.Promotion is one of the most effective instruments of 4P in current situation.The perception of a car shows a place, that this car takes in the mind of aconsumer. For example, Audi and BMW are perceived as German, quality, luxurycars, Toyota and Honda are perceived as valuable, their equipment meets theirprice in the opinion of the consumers. Ferrary and BMW are famous in thecategory of performance that means a car designed and constructed for speed.The analysis of perception, opinion about ZAZ car brand generally and ZAZcars in particular showed dissatisfactory result. ZAZ cars don’t have any direct andclear perceptions. So ZAZ don’t subject to the definition of the brand, as a set ofperceptions and images that represent a company, product or service. At the sametime they are associated with Zaporozets as not very attractive car, low quality anduncomfortable interior, frequent breakdowns and others. But there are somepositive perceptions, such as affordable price, hardiness and patriotic sentiments.ZAZ cars need a new advertising concept to change the perception and toget a right to be named the brand. The main aim of this advertizing campaign is toshow that the quality is higher than the price, so that everybody can allow himselfto buy ZAZ car. In spite of the recycling law ZAZ cars will stay in the low-pricesegment, so it’s advisable to form the perception of ZAZ as the first car of aperson. It is aimed at the 18-25-years-old segment, characterized by a low level ofincome.“Your first car” – this marketing message will attract young people, whowant to buy a car but they aren’t informed about prices. We must show thatpurchase of a new car is real, inexpensive and it is a great chance for young,starting independent live people. One of the varieties of this concept is “Our firstcar”, aimed at young families and families with children. First of all we need toshow the necessity of car in families with small kids in connection with difficultiesin using public transport for them. The target audience of this advertising campaignis focused on the flexible payment terms, such as installment agreement. Three-year installment, for example, means that the customer pays only 1600 UAH evermonths that is very easy considering the level of wages in Ukraine.According to this concept we can imagine 4 basic commercials. The firstcommercial shows the young student, who have just graduated from the universityand have received a new ZAZ car as a gift from his parents. He tosses up hissquare academic cap, sits in the new car and drives away. The second commercialshows the wedding, where the main gift is the ZAZ car. The third commercialshows the man, buying the new ZAZ car. He cares about it, preparing to somethingimportant. The next day he drives to the maternity hospital and takes away his wifewith two newborn children. The fourth commercial shows a young man, startinghis own business with ZAZ car. He works hard and his new car helps him to reachthe success. All these commercials are associated with the most important andpleasant moments of our life. Key associations are the beginning, the family, thesuccess, the care, and the youth, the reliability.

THE PROMOTION OF THE NATIONAL CAR BRAND

http://ir.nmu.org.ua//bitstream/123456789/3461/1/Zlatova.pdf

THE PROMOTION OF THE NATIONAL CAR BRAND

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