Adam Revo Relaunch Essay Example

protect domestic companies.

Secondly, the lack of government support has had a significant impact on the project's failure. In 2003, former Prime Minister Shaukat Aziz inaugurated the Revo's plant and promised to purchase the car for government use as it was the cheapest option in the country. However, despite Feroz Khan producing enough cars to meet this demand, they chose to buy Adam Revo instead of Mehran. This failure by the government to fulfill its promise and purchase a substantial number of cars contributed to the collapse of this project.

Furthermore, Prime Minister Shaukat Aziz's involvement caused a lack of finances for this project. Although Feroz Khan's company produced enough cars initially, when the government failed to fulfill its promises, they accumulated debt and ultimately went bankrupt. With insufficient funds to revive their company and settle their debts, they faced a challenging situation.

Additionally, one issue with Adam Revo cars was that they used low-quality tires which resulted in reduced road grip and made drives on bumpy roads uncomfortable. Moreover, individuals were dissatisfied with the car's inexpensive speedometer as it reminded them of older cars from the 1900s.
In today's modern era, where stylish cars are easily accessible, people prefer to spend extra money on a more fashionable vehicle rather than driving one that resembles vintage cars. Unfortunately, potential buyers found fault with Adam Revo due to its lower quality interior plastic and unattractive appearance. These drawbacks did not meet their expectations, causing them to consider purchasing used cars instead of choosing an Adam Revo.

Moreover, Adam Revo suffered from insufficient promotions, advertising efforts, and marketing strategies which had a negative impact on its success. The lack of advertisement through

ad campaigns and publicity resulted in only a small portion of the population being aware of Adam Revo's existence. As a result, many people are still unaware or confused about Pakistan's first car - Revo.

Due to these factors combined - low product awareness and inadequate promotional efforts - people remained uninformed about how Adam Revo could generate income or be a viable option in the market.Adam Motor Company's strategic focus and program mission/vision revolve around providing vehicles that prioritize maximum indigenization, competitive pricing with reliable quality, and ensuring high customer satisfaction through 3S installations. They aim to achieve greater success in the Pakistani auto industry and compete with larger domestic and international auto companies.

Adam Motors believes in creating the right environment and offering training to their people so they can become the best in the world. Their main priorities include high indigenization, dependable quality, and excellent after-sale service for all their products.

To gain market share in a highly competitive landscape dominated by established companies like Suzuki, Honda, Toyota, and Chevrolet, Adam Motors will employ a market-penetration strategy. However, what sets them apart from their biggest competitor Mehran is their lower prices. The price difference between Adam Motors' products and Mehran's is approximately 70 to 80,000 rupees. This pricing strategy appeals to customers seeking affordable deals.

Furthermore, Adam Revo offers low-cost value that specifically caters to the middle-class market segment while also positioning themselves as a responsible corporate citizen within the automobile industry.Adam Motors has successfully increased its market share and can now implement a product development strategy to introduce new products in its current markets. As their reputation grows, they can also consider diversification strategies by

introducing new products in new markets.

In terms of market strategy, Adam Motors can implement a cost leadership strategy specifically for their Revo model. This is because they are known as the industry's lowest cost manufacturer, giving them a competitive advantage over other car companies. This makes the Revo highly affordable for middle-class individuals.

Regarding the situation analysis, Adam Motors is the only Pakistani manufacturer with large production facilities capable of producing 7,000-10,000 vehicles per year. Their product line includes cars, small vans, pickups, and cargo vans.

With effective management and marketing efforts, Adam Motor's Revo has the potential to meet demand and capture more than 50% of the market share. One major strength of Revo lies in its low price range of 70,000 to 85,000 compared to Suzuki's Mehran.

Adam Motors offers an incredibly low-cost option for automobiles and could cater to a significant portion of the population with support from Government intervention programs. They have extensive experience in installing CNG kits and are well-known for their fuel-efficient autos equipped with globally acclaimed CNG components.The soaring gasoline prices have made it difficult for middle-class individuals to afford the high costs of these autos overall. The provision of CNG kits can greatly improve the industry by offering more affordable alternatives. However, Adam Motors lacks prioritization in after-sales services, resulting in dissatisfied customers. The initial offering from Revo faced criticism for its inadequate quality and components, leading to low resale value and potential financial loss for owners when selling them. In Pakistan, buyers highly value vehicle resale value and approach their purchases cautiously. Competing against major companies like Honda, Suzuki, and Toyota is challenging in Pakistan due to their superior

resources, research facilities, and well-established brand names that make the competition fierce. One primary reason for Revo's failure was a lack of consumer awareness. Effective advertising and promotion are crucial in increasing consumer awareness; however, Adam Motors did not invest significantly in marketing efforts. Additionally, Adam Motors falls behind in advanced technology compared to companies that have transitioned to hybrid and electric cars - giving those companies a competitive advantage over Adam Motors.Furthermore, the unattractive design of Revo posed another problem for potential buyers as it resembled the unpopular three-wheeled China van, resulting in a lack of appeal. Additionally, both externally and internally, the car suffered from low-quality materials. Adam Motors should have paid more attention to the design and overall quality of their vehicle. However, there is still a chance for Adam Revo to target the market of low-income individuals in Pakistan because a significant portion of the population falls into middle, lower-middle, and lower-income categories. To cater to people with limited purchasing power, the company needs to prioritize making their products affordable. One advantage that Adam Revo has is its affordability; it is even cheaper than Mehran. This means that people with low incomes can easily afford both the initial purchase price and maintenance costs associated with this vehicle. Moreover, individuals who currently own motorcycles but desire an inexpensive and spacious car for family trips will find Adam Revo to be a viable option due to its fuel efficiency and affordability. It would be wise for Adam Motors to enter the 1300cc car market. Once they establish a presence in this market segment and build a positive reputation, they can then explore opportunities

for expansion by offering 1300cc cars as well as other models. Currently, Suzuki is their only competitor when it comes to producing cheap 1300cc cars;Suzuki has encountered failure with different versions of their 1300cc model cars. However, there is a significant market in Pakistan for these affordable vehicles. The majority population, who cannot afford luxury cars but seek inexpensive and fuel-efficient options, has high demand for such vehicles. If Adam Motors effectively plans and implements efficient marketing strategies for their products, they can successfully target this large market size.

Exporting the Revo can have positive impacts on Pakistan's economy. It can stimulate local industry growth and attract investment through joint venture production, contributing to the overall country's economy. Nonetheless, several challenges need addressing. Currently, Pak Suzuki dominates the Pakistani car market with over 60% market share.

Adam Motors poses a threat to Pak Suzuki due to its effective after-sales service, extensive showroom network, and EFI technology. However, people perceive Adam Motors' cars as cheap with low quality; thus overcoming this perception is crucial by convincing consumers that their products offer excellent value for money.

Another challenge faced is load shedding of CNG in Pakistan which affects companies like Adam Motor that heavily rely on it for cost reduction.In addition, the company faces challenges due to inflation causing raw material prices to rise, resulting in the final product becoming unaffordable for lower-income consumers. The political situation in Pakistan also adds uncertainty, with frequent strikes by different political parties making it difficult for industries to meet their quotas.

However, despite these challenges, the company's objective is to dominate the 800 milliliter market by offering fuel-efficient Chinese-made engines at competitive prices. These

engines are priced 10% to 15% cheaper than rivals and aim to cater to the demand for affordable cars in Pakistan. The company strives to become the preferred choice for customers by marketing their product, Adam's Dreamer, at an affordable price while maintaining quality standards through continuous research and development. They also focus on establishing a strong distribution system to ensure customer satisfaction.

The company aims to increase its market share in both urban and rural areas, particularly targeting Karachi, Lahore, and Islamabad. To achieve these goals, they seek skilled personnel who prioritize time management and quality control. Additionally, they conduct various analyses using Porter's Five Forces Model including finance analysis, manufacturing analysis, research and development (R) analysis as well as external opportunities and threats analysis along with consumer/social factors analysis. They also analyze legal/regulatory industry aspects and competitors' strategiesIn addition, they carry out company analysis and customer segmentation/targeting analysis to evaluate market-product focus before developing selling strategies that align with product goals. The target audience for their car is Pakistan's middle-class car buyers, although it was originally planned for exportation to other countries as well. Other strategies include identifying Points of Parity (POP) and Points of Difference (POD), determining positioning strategy, and establishing a selling plan. They also incorporate product strategy/branding strategy into their approach, utilizing the BCG Matrix for evaluation purposes. Furthermore, they implement a price strategy where Adams Revo is priced lower than competing cars but lacks certain features that meet competitor standards. To compete effectively, the company needs to adjust pricing and design in order to generate profits. It is crucial for any price increase to be lower than that of competitors

in order to maintain a reputation as a low-priced car in the market. Despite customers being satisfied with the affordability of the car, its failure can be attributed to low quality, performance, and lack of promotion. Therefore, repositioning and promoting the product are necessary steps moving forward which may result in higher prices due to increased costs associated with advertising efforts.The company offers a price that is approximately 20% less than its main competitor Suzuki Mehran. It also has the financial capability to enhance product value, although not as much as Mehran. To reshape its merchandise promotion strategy, the company will modify its advertising mix by emphasizing Dreamer's features and highlighting its connection to lifestyle and expertise. The promotion strategy will use a pull approach to stimulate consumer demand. Customers will request the Dreamer model from retailers, who will then ask Adam's Motors for more inventory if successful. Sales promotions, such as discounts at car fairs or exhibitions, can be used along with special discounts for car rental companies or transportation departments of other businesses in order to boost sales for the new Adam's Dreamer model. The goal is for the Dreamer model to expand future sales and achieve a presence on the roads. Market segmentation analysis shows that Adam's DREAMER targets the upper-middle class, middle class, and lower-middle class segments of society. Reaching the middle-class demographic in smaller regions of the country is important. Therefore, it is necessary for the Adam's DREAMER to be available in major marketer metropolises like Hyderabad (Sindh), Sialkot, Multan (Punjab), Chaman (Balochistan), and Gigot (Khyber Pakhtunkhua) in order to ensure accessibility for consumers from every category in each state.It

is essential to establish Adams Dreamer franchise in Rohri (Sindh), Okara, Sahiwal, Mianwali (Punjab), Pasheen (Balochistan), and Abottabad (Khyber Pakhtunkhua) in order to target consumers in the lower category throughout the state. The company has identified a lack of marketing and promotion efforts as the reason behind the non-existent demand and latent demand for the Adam Revo, resulting in people being unaware of its affordability and ability to meet their needs. Based on a public survey, there was a positive reception towards relaunching the car; however, improvements are required for its interior, engine, and suspension.