Jeep'S Strategic Advertising Plan 1

JEEP’S STRATEGIC ADVERTISING PLAN 1
JEEP- STRATEGIC MARKETING PLAN
by (Name)
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
The City and State where it is located
The Date
Contents
Executive Summary.....................................................................................................................................3
Introduction.................................................................................................................................................4
Recognized Chance.....................................................................................................................................4
The situation of the Market.........................................................................................................................4
Existing capabilities and resources..............................................................................................................5
Marketer's Competitive Advantage.............................................................................................................7
Marketing Goals..........................................................................................................................................9
Jeep Segmentation Markets.......................................................................................................................10
Geo-demographic Segmentation................................................................................................................10
Personality Types and Psychographics......................................................................................................12
P&T...........................................................................................................................................................13
Marketing Mix...........................................................................................................................................14
Product......................................................................................................................................................14
Price..........................................................................................................................................................14
Place..........................................................................................................................................................15
Promotion..................................................................................................................................................15
Processes & Folks.....................................................................................................................................16
Issues of Control and Implementation.......................................................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
Appendix...................................................................................................................................................24
Executive Summary
This study's goal is to provide Jeep with a 12-month marketing plan. According to a prior
scenario analysis assessment, Jeep would lose a chance to deliver a new, more environmentally
friendly vehicle while also addressing consumer concerns and difficulties in Australia if they
kept creating the old models. After careful consideration of the 12-month strategy's potential and
restrictions, the choice was decided. Following that is a breakdown of Jeep's current market share
and capabilities, which are presently declining in Australia due to concerns about Jeep's
reliability. Viability may be assessed using Fiat Chrysler Group's market position and total value.
To maximize star value, Jeep's competitive advantage is examined using the BCG model of
SBU. Then the target market's data is used to determine the significant target market. Jeep's
position is also compared to the market's overall segmentation.
Marketing objectives are developed using the 7 Ps. Keeping this in mind, the Gantt matrix is
utilized to outline a 12-month marketing plan and potential obstacles. The 12-month marketing
strategy's goal is summarized in the report's conclusion.

Introduction
This paper describes a marketing plan of 12 months and the activities required to implement it.
This research adds to previous results on the Jeep problem. As detailed in this paper, the jeep
must adjust to a new market orientation that prioritizes eco-friendly and reliable products.
Recognized Chance
A scenario analysis indicated different opportunities for Jeep in Australia in our previous
research. With 45.5% of all vehicle sales in Australia, Jeep has the potential to leverage the
popularity of its SUV models and the production of more eco-friendly Jeep models that are not
specific to an SUV (Jeep, 2020).
Jeep was the 24th most popular brand in Australia in June 2020, with 694 sales (Costello, 2020).
Due to the goods' technical characteristics, such as off-road capabilities and lack of ecologically
friendly features, Jeep has a relatively limited market (Costello, 2020). The intense rivalry in the
Australian car market deters purchasers, lowering Jeep's sales potential. According to the BCG
Model, Australia's market sector has decreased and is now uncertain for a decade.
Jeep will introduce an eco-friendly small car to tap into this market potential. Jeep plans to
launch electric, hybrid, and plug-in hybrid automobiles by 2022. (McEachern, 2018). Jeep has
begun to adjust to the shifting market by making this statement. Jeep is creating a new range of
automobiles to service the whole market. The current global outbreak of Covid-19 may have
hindered research on this technique. Jeep should follow the BCG Model, a potential star.
The situation of the Market
People are increasingly worried about harmful emissions from their cars' fuel consumption while
purchasing a car. In Australia, sales of electric cars doubled in 2019 compared to 2018.
(Costello, 2020). In 2019, '...1,062,867' new automobiles were sold in Australia, a 7.8% decline
from 2018.
Toyota and Land Rover are Jeep's primary competitors in the automotive care business.. With a
total of 217,061 sales, Toyota is the undisputed leader in the Australian market (Chesterson,
2020). Toyota has yet to build an electric vehicle for the Australian market since the country
does not have an EV policy or progressive fuel emission regulations like the UK and Europe
(Schmidt, 2019). Jeep has a chance to join a market that might become a major player in the
future right now (Sylvia, 2019).
Land Rover designed a PHEV (Plug-in Hybrid Electric Vehicle) to compete with Jeep and
Toyota (Land Rover, 2020). Due to a shortage of supply (Land Rover 2020), the model cannot
be bought in Australia (Schmidt, 2019). Consequently, Jeep has a lot to gain from a market that
is yet untapped.
Existing capabilities and resources
Despite intense competition, Fiat Chrysler's developing Strategic Business Unit (SBU) of Jeep
has the potential to become a global leader in the automotive industry. Jeep is part of Fiat
Chrysler Vehicles, which develops, designs, manufactures, and sells goods globally, including
automobiles and automotive components (Fiat Chrysler Group, 2020). FCA owns Chrysler,
Dodge, Jeep, Ram, Maserati, and Lancia (Fiat Chrysler Group, 2020). Jeep is a well-known and
readily recognizable brand in the FCA industry.
The Resource-Based View (Srivastava, Fahey, and Christensen, 2001) states that a company's
strategy should be based on both core strengths and market demands (Srivastava, Fahey &
Christensen, 2001). Numerous client complaints and general discontent with Jeep's products
prompted the formation of the website JeepProblems.com, which only documents customer
difficulties. (2020 Jeep Issues)
In terms of funding this marketing potential, the Fiat Chrysler Group is a very profitable firm,
earning $108 billion in profit in 2019 (Figure 1) (Fiat Chrysler Group (FCA), 2020). Achievable
based on these gains and the company's continued expansion, this initiative is financially viable
for Fiat Chrysler Group. With the BCG growth-share matrix (Anderson & Zeithaml, 1984),
mature corporations like Fiat Chrysler should assist SBUs in fast-growing areas (Anderson &
Zeithaml, 1984).
It includes commercial brands, nations, markets, facilities, R&D centers, personnel, combined
vehicle sales, net revenues, and R&D expenditure. (Fiat Chrysler Group)
Source (FCA, 2020).

Marketer's Competitive Advantage
Creating a lasting competitive edge over competitors is critical to successfully using the
discovered opportunity (Porter, 1985). On the other hand, Porter's Sustainable Competitive
Advantage Model (Appendix) proposes concentrating on core competencies to create unique,
integrated systems that promote fit among various production and technological abilities (Porter,
1985). It includes differentiation leadership, cost leadership, cost focus, and differentiation focus,
defined by competitive advantage and markets. Jeep, established in 1941, is a global symbol
known for its diverse range of SUVs and the ‘adventurous' lifestyle it promotes (Fiat Chrysler
Group (Jeep), 2020). Fiat
The Group has developed a muscular core strength in the automotive business, which benefits
Jeep. Jeep must make various marketing decisions since the SBU cannot be used to build a
competitive advantage in the new market. To achieve long-term sustainability in the industry,
Porter (1985) identified four general strategies: differentiation and focus differentiation
leadership, cost leadership, and cost focus, (Porter, 1985).
The global vehicle business is very competitive, with customers seeing cars as ‘necessities' (Duff
and Phillips, 2019). Keeping this in mind, it's critical to analyze Porter's four competitive
advantage tactics. Because of the company's present image and concerns about the perceived
sub-quality of its goods, cutting costs is a beneficial tactic; for Jeep, it might be a problem (Jeep
Problems, 2020). Creating ‘basic' items that satisfy specific customers creates a modest market.
With the advent of hybrids and electric automobiles, it is futile to contemplate running now.
A product that fits customers’ demands and is distinguished from rivals is a product that is
differentiated (Porter, 1985). Jeep's current goal is to target a niche market, off-road enthusiasts
(Porter, 1985).
A method similar to Tesla (Professor Aya Chacar, 2018) would be for Jeep to identify one or
more criteria utilized by purchasers and then position the firm to satisfy those particular criterion
demands. For Jeep to have a better product, such as dependability, features, durability, and
benefits, Porter's Strategies outline differentiation leadership (Porter, 1985). Jeep will need to
solve this problem and other causes of customer dissatisfaction with overall product quality (Jeep
Problems, 2020). Jeep is a well-known brand, and industry-wide distribution is critical. The Fiat
Chrysler Group has various manufacturing and distribution sites globally, as seen in figure 2. But
not in Australia.
Source (FCA, 2020).

Ansoff's Growth Matrix Model might also help Jeep's SBU (Watts, Cope & Hulme, 1998). The
model allows marketers to assess the risks associated with product growth, market
diversification, market development, and market penetration (Watts, Cope & Hulme, 1998). Jeep
will be a new player in an established industry, so diversification is the most innovative and
riskiest approach (Ansoff, H. I. (1957). Determining the risks, cash availability, and desire to
participate are critical to developing a successful diversification plan (CFI, 2019). This concept
may work at the SBU level since Jeep is moving into a new automotive market category.
Marketing Goals
Marketing objectives set the brand's aims, guide team members, and give information for
executives to analyze and support (Wrenn and Mansfield, 2006). The SMART framework
describes how goals should always be Time-bound, Specific, Actionable, Measurable, and
Relevant (Chaffey, 2019).
Using the SMART Framework, the Jeep opportunity has the following objectives:
1. Increase awareness of Jeep's new hybrid/electric car by 60% in Australia within a year
2. Continue to improve customer relations by delivering additional customer services to
solve Jeep issues during the 12 months.
3. The Capped Price Servicing Program is a 12-month effort to improve aftermarket
servicing.
The absence of a hybrid/electric vehicle product line currently gives Jeep a chance to distinguish
Jeep and generate a sustained creative advantage. They will also help get new consumers.
Jeep must provide an ecologically responsible and cost-effective product offering to capitalize on
this potential. The second goal relates to customer relations, a critical competitive advantage.
Jeep was accused of not responding to consumer concerns and impeding improved customer
loyalty and commercial success. This timeline should strengthen Jeep's client base. This relates
to the end goal.
The final goal is to develop aftersales service; an area where Jeep has writhed, by increasing
promotion and introducing the Capped Price Servicing Program, which caps the first five
services at $399 (Wong, 2020), and according to Gardner, (2020) the continuation of the Flying
Doctors program in rural Australia. Still, it concentrated on rural clients' needs for Jeep
components.
Jeep Segmentation Markets
Jeep will target a comparable niche described in the Jeep situational analysis report: younger
individuals with above-average income. As the Baby Boomer generation retires, the chance of
license loss due to health issues increases. The new hybrid/electric vehicle intends to broaden a
rising market that might be the future of automobiles globally (Sylvia, 2019). According to a UK
poll, more millennials than older adults want to acquire an electric car (Harrabin, 2018). While
this is a UK trend, it may indicate a worldwide trend towards hybrid/electric car purchases.
Segmentation is required to target this set of customers and restrict the entire market. Consumers
may be segmented on demographic, psychographic, and behavioral factors. Psychographic and
behavioral metrics, according to Dietrich et al. (2015), may help marketers understand why and
how current behavior happens. Consumer dissection based on demographics and regional data is
also crucial for market strategy (Dietrich et al., 2015).

Geo-demographic Segmentation
Jeep's success depends on geographic segmentation since one of the SBU's aims is to extend the
appeal of an "off-road" vehicle. Jeep has long been known for its daring marketing, displaying
items in outback/desert settings and icy mountains. Jeep goods don't stop there. However, Jeep
products are geographically suited due to their urban characteristics. The allure of driving a
‘cleaner, more efficient model remains unbound by geography, albeit some thinking would be
necessary to guarantee that charging stations are more easily accessible, not just in metropolitan
regions but also in suburban and rural places (Harris, 2020).
Jeep's exciting product offering and strong brand loyalty make it reasonable to assume that older
customer age groups, such as 55+, will enthusiastically buy Jeep's items.
According to a Hedges and Company analysis of new vehicle buyer demographics (Hedges and
Company, 2020), 55 percent of new Jeep customers are between 18 and 34.
Figure 4 from the same data shows a somewhat equal split between male and female new SUV
consumers, with men buying slightly more than females, 57 percent to 43 percent. (Hedges &
Co., 2020)
According to the same survey, most new SUV purchasers own a house, suggesting a higher than
average income. (Hedges & Co., 2020)
Personality Types and Psychographics
Jeep's high brand loyalty is critical for customer behavioral segmentation. The jeep still has a
cachet (Paul, 2020). The all-terrain capability of Jeep and the simplicity of customization of Jeep
products provide distinctiveness compared to comparable SUVs (Paul, 2020). The VALS
framework helps segment Jeep's behavioral and psychographic categories into nine groups:
thinkers, innovators, experiencers, achievers, creators, emulators, strivers, achievers, and
survivors (Ridenour, 2019). SBI's Patricia
Breman (2018) studied the psychological makeup of Jeep brands and the VALS types for whom
they are marketed and discovered that only Thinkers, Achievers, and Innovators have the
potential to purchase anything (Breman, 2018). (Breman, 2018).
The market target would be a Jeep user's lifestyle and social position in psychographic
segmentation. As seen in figure 6, Jeep's advertising medium frequently promotes the
adventurous, off-roading aspect of Jeep goods.
Source (FCA, 2020).

P&T
To address the needs and wants of the target market's segments, a target marketing strategy must
be designed (Hooley et al., 2017). Marketing is targeted, focused, and untargeted (Hooley et al.,
2017). Positioning strategy must take into account the company's strengths and weaknesses as
well as client requests, the market, as well as the positioning of rivals (Lombardo, 2018). Product
usage and application are considered while selecting a positioning strategy for the SBU. With the
brand as a prestige symbol, Jeep can separate itself from rivals.
New Jeep sales figures show a strong potential for the 25-54-year-old age group to be a target
market for the company's new hybrid/electric cars. This demographic has the greatest potential
for success based on new Jeep sales statistics.
Marketing Mix
The marketing mix is a framework for making choices that incorporate various criteria (Gilstein,
2020). The 7 Ps of marketing are a product, price, location, promotion, process, people, and
physical proof.
Product
The product has three levels when examining marketing activities using the marketing mix
framework. They are fundamental, natural, and enhanced products (Armstrong, 2017). Jeep
meets the consumer's basic transportation needs. Other Jeep models, like the Wrangler, offer off-
road transportation, a differentiator that matches the 12-month marketing strategy.
The second level is the vehicle itself. “State of the art technology,” “comfort,” “high-quality
materials,” and a “safe and secure ride” are all hallmarks of Jeep's marketing approach (Jeep,
2020).
The last stage’s enhanced product is built around the fundamental and core items that Jeep
manufactures to satisfy the consumer's requirements and wishes. The improved product also
includes additional features and advantages that set it apart from rivals and further meet customer
needs (Hughes, 2013). Jeep offers capped-price servicing, lifetime roadside assistance, a five-
year/10,000km manufacturer warranty, and a dedicated onshore support crew (Jeep, 2020).
Price
Pricing strategy is an essential component of the marketing mix, affecting consumer perception
of a product's worth (Armstrong, 2017). Pricing entails maintaining a level that maximizes profit
while avoiding overcharging and alienating customers. Jeep's current pricing strategy is
competitive, depending on rivals' tactics, expenses, and market offers (Armstrong, 2017). There
is no incentive to move to hybrid/electric vehicles in Australia, and there is no price parity
(Schmidt, 2019). Jeep may wish to reassess its pricing approach due to its poor reputation for
vehicle durability and the recent decline in the Australian new-car industry (Costello, 2019).
Place
Jeep uses standard distribution and sales channels. Jeep has 69 dealerships throughout Australia
(Jeep, 2020). Jeep uses full-service outlets because of the high degree of commitment.
Salespeople support consumers at every level of the purchasing process (Armstrong, 2017). Jeep
must develop an experience between the consumer and the brand to improve after-sales service
and increase favorable customer evaluations.
Promotion
Most Jeep marketing materials have a transparent target market and messaging approach. As
stated before, Jeep promotes its goods as tools for off-road driving. The latest advertising
campaign, “I'm In,” clearly targets this behavioral category (YouTube, 2020). The “ I’m In “
campaign capped price servicing and roaming techs are mentioned in the “I'm In” campaign.
Moving between far rural places to fix mechanical/tech problems
Jeep uses numerous marketing platforms to reach customers, including TV, social media,
newspaper, billboards, and radio. With the potential market share available for hybrid/electric
cars, a coordinated advertising effort highlighting the status symbol, all road driving range, will
be part of the marketing strategy.
Processes & Folks
According to the preceding paragraph, the purchase of a new car requires a lot of customer
involvement. Full-service retail experience is offered as part of Jeep's front sales procedure, like
its competitors. This includes a thorough examination of the car, a thorough test drive, financing,
purchase, and after-sale vehicle maintenance. Jeep's full-service retail experience provides
potential customers with comfort of mind given the high cost of its items (Armstrong, 2017).
Issues of Control and Implementation
The marketing strategy will be implemented over 12 months commencing January 1. (2021).
Each activity is part of the marketing mix to raise awareness of Jeep's new hybrid/electric car
range, increase favorable customer evaluations, and maintain after-sales support.
Key Performance Indicators (KPIs) are used to track marketing mix performance. The KPIs are
based on measures that show how healthy marketing initiatives accomplish their objectives
(Hooley et al., 2017). According to the Gantt Chart (Figure 8), the KPIs will be focused on
boosting favorable customer evaluations by 30% within a year and growing social media activity
on Jeep and the new product line by 60%.

Jeep and Fiat Chrysler Group customers will get emails promoting after-sales servicing (Capped
Price Service) and the forthcoming hybrid/electric vehicle. There will also be social media and
Facebook marketing campaigns to raise awareness.
In addition to the lack of advantages associated with making this move, the absence of
technology like charging stations throughout Australia may provide a problem. The absence of
manufacturing factories in Australia, where the automotive industry has been completely shut
down, provides another national difficulty.

Conclusion
As stated in the report, Jeep has the opportunity to move forward into the future while respecting
the brand's history while also moving into a new age, while also improving after-sales service for
current Jeep owners, and introducing a hybrid/electric vehicle to attract new customers and
increase Jeep's and Fiat Chrysler Group's total market share to 100%. Our marketing strategy
relies on boosting awareness, especially with the new vehicle, since Jeep has promise in
Australia and beyond.

References
• Joshua Dowling 2020, April 1. Exclusive: Jeep to stay in Austrian mentions thelia for at
least 10 years,
National Motoring, https://www.caradvice.com.au/839869/exclusive-jeep-to-stay-
inaustralia-for- at-least-10-years/
• Jeep 2020. STANDARD MODELS. https://www.jeep.com.au
• Costello, M. 2020, June. VFACTS: Australia's June 2020 new car sales bounce back.
https://www.carexpert.com.au/car-news/vfacts-australias-june-2020-new-carsales-
bounce-back
• Joshua Dowling 2020, April 1. Exclusive: Jeep to stay in Australia for at leastten0 years,
National Motoring, https://www.caradvice.com.au/839869/exclusive-jeep-to-stay-
inaustralia-for- at-least-10-years/
• Sam McEachern 2018. Autoguide.com,
https://www.autoguide.com/autonews/2018/06/jeeps-future-product-strategy-includes-
hybrids-autonomy.html
• Costello M. 2020, February 06. Sales of electric cars triple in 2019: CarAdvice. Retrieved
September 20, 2020, from https://www.caradvice.com.au/824591/sales-ofelectric-cars-
triple-in-2019/
• Federal Chamber of Automotive Industries 2019. https://www.fcai.com.au/sales
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figures, Cars Guide, https://www.carsguide.com.au/car-advice/australian-car-marketcar-
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• Bridie Schmidt 2019, December 17th. https://thedriven.io/2019/12/17/toyota-rulesout-
electric-vehicles-for-australia-because-of-price/
• Tim Sylvia 2019, May 19th. https://pv-magazine-usa.com/2020/05/19/the-future-ofcars-is-
electric-but-how-soon-is-this-future/#:~:text=In%20the%20report%2C %20BNEF
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Appendix

Jeep'S Strategic Advertising Plan 1

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JEEP’S STRATEGIC ADVERTISING PLAN 1

JEEP- STRATEGIC MARKETING PLAN

The Name of the Class (Course)

The Name of the School (University)

The City and State where it is located

position is also compared to the market's overall segmentation.

strategy's goal is summarized in the report's conclusion.

specific to an SUV (Jeep, 2020).

The situation of the Market

future right now (Sylvia, 2019).

Existing capabilities and resources

readily recognizable brand in the FCA industry.

difficulties. (2020 Jeep Issues)

Source (FCA, 2020).

Marketer's Competitive Advantage

Advantage Model (Appendix) proposes concentrating on core competencies to create unique,

Group (Jeep), 2020). Fiat

leadership, cost leadership, and cost focus, (Porter, 1985).

Source (FCA, 2020).

Relevant (Chaffey, 2019).

2. Continue to improve customer relations by delivering additional customer services to

solve Jeep issues during the 12 months.

3. The Capped Price Servicing Program is a 12-month effort to improve aftermarket

to the end goal.

Jeep Segmentation Markets

may be segmented on demographic, psychographic, and behavioral factors. Psychographic and

also crucial for market strategy (Dietrich et al., 2015).

regions but also in suburban and rural places (Harris, 2020).

average income. (Hedges & Co., 2020)

Personality Types and Psychographics

thinkers, innovators, experiencers, achievers, creators, emulators, strivers, achievers, and

survivors (Ridenour, 2019). SBI's Patricia

potential to purchase anything (Breman, 2018). (Breman, 2018).

segmentation. As seen in figure 6, Jeep's advertising medium frequently promotes the

adventurous, off-roading aspect of Jeep goods.

Source (FCA, 2020).

brand as a prestige symbol, Jeep can separate itself from rivals.

for success based on new Jeep sales statistics.

road transportation, a differentiator that matches the 12-month marketing strategy.

is no incentive to move to hybrid/electric vehicles in Australia, and there is no price parity

and increase favorable customer evaluations.

Moving between far rural places to fix mechanical/tech problems

be part of the marketing strategy.

Processes & Folks

Issues of Control and Implementation

range, increase favorable customer evaluations, and maintain after-sales support.

on Jeep and the new product line by 60%.

Facebook marketing campaigns to raise awareness.

down, provides another national difficulty.

Australia and beyond.

National Motoring, https://www.caradvice.com.au/839869/exclusive-jeep-to-stay-

• Jeep 2020. STANDARD MODELS. https://www.jeep.com.au

National Motoring, https://www.caradvice.com.au/839869/exclusive-jeep-to-stay-

• Sam McEachern 2018. Autoguide.com,

September 20, 2020, from https://www.caradvice.com.au/824591/sales-ofelectric-cars-

• Federal Chamber of Automotive Industries 2019. https://www.fcai.com.au/sales

figures, Cars Guide, https://www.carsguide.com.au/car-advice/australian-car-marketcar-

• Bridie Schmidt 2019, December 17th. https://thedriven.io/2019/12/17/toyota-rulesout-

• Tim Sylvia 2019, May 19th. https://pv-magazine-usa.com/2020/05/19/the-future-ofcars-is-

• Land Rover 2020. https://www.landrover.com.au/vehicles/phev/index.html

• Fiat Chrysler Group (FCA). 2020. https://www.fcagroup.com/en-

Marketing: The Role of Market-Based Assets in Gaining Competitive Advantage. Journal

• Retrieved September 20, 2020, from http://www.jeepproblems.com/