In Paris, February 5, 2009, for the 90 years of Citroen, and after a week of speculation about the resurrection of the ADS, Citroen presented the munch of a new family of premium models, “Citroen ADS”. A premium line based on the classic range, hippest or proprietary versions unparalleled in the Citroen range, with benefits to the German specialist brands that inspire luxury. To conquer new markets such as Chinese market, Citroen has internationalization its ADS line and reached an agreement in November 2011 with the China Changed Automobile Group (ICC) based in the Chinese city of Cocooning.
AS Peugeot Citroen inaugurates the creation of the joint venture “Change AS Automobile (CAPS)” which is the second mint venture of French group Chine – being associated with Dingdong Citroen (CAPED). The Citroen ADS was the first of the ADS line to tackle the Chinese market. We’ll see how a marketing strategy may vary depending on the market for a completely similar product. 1. Let’s start with ADS marketing analysis In France. Product : In France: the ADS product Is considered as Innovative and playing on a model from the past.
While there is absolutely nothing In common between the old and the new ADS, Citroen ventured out this legendary name only In the hope of creating the buzz. Aimed at 30-45 years the car Is customizable. Everyone can have choose between a relatively large choice of colors, the possibility of a different roof color, related to the selection of a number of decals allowed buyers ADS to create their own car that looked like them the most. It’s a kind of unique product. The products are generally highly standardized: this proposal personalization met a consumer desire.
It’s a Playful’, fun’, urban’, and rather up scale’s car. The product complements the more traditional range of Citroen. This product is supposed to dust off the image of the To promote the product, the brand has played on the contrast young [old. Young in appearance with the traits and the car line; old as to the origin of the brand in the sass meaning “Distinctive Series” which contrasts between the old ADS so that was seen as a revolution in its time, and the ardor of its young successor ADS. The idea was to play again on the revolutionary aspect of the name “ADS”.
When ADS was launched, two commercials were broadcast, one incorporating images of Marilyn Monroe and one of John Lennox, declaiming texts written for the occasion. Both deliver the same message: “to mark your time, do not go back, invent your style, live the present moment, live your life now! On the other hand the brand has played much on the sporting side by using the image of Sebastian Loeb the nine times world champion in WAR. The ADS line was to mark a break with the traditional concept of Citroen. Long perceived as a brand for retirees, the ADS had to dust off the image which affected a lot the French manufacturer.
Price: The ADS line is considered as a Premium quality. That’s why prices are relatively high for a small car like the ADS. With some missing equipment on a “Chic” finish (air, rain and light sensors, etc. ), the ADS can be purchased from ? 15,800 with a Wi petrol engine with 82 HP. Its price increases to ? 29,990 in Racing finish with a 202 HP engine. Nevertheless, when comparing this one to its competitors such as the Audio AAA, the Alfa Romeo Mitt and the Mini Cooper we observe that the ADS is not the most expensive. On a car segment with high prices, Citroen is very well positioned.
As indicated in the table below: Model Entry-level price Maximum price Audio AAA ? 17,700 ? 28,800 Mint ? 16,350 ? 32,500 Citroen ADS ? 15,800 ? 29,990 Alpha Mitt ? 14,490 ? 24,990 Place: In France, the ADS distribution network is focused in the Citroen outlets. The brand enjoys a very positive image in France. It is perceived as reliable, old and stable. In consumer perception Citroen has a very positive and known reference image. For the reasons stated above, but also for practical reasons, the ADS Citroen benefited from numerous outlets.
After launch began to appear some outlets only dedicated to ADS. Those are newer but more and more frequent. To highlight the brand and install it Ulysses. Window of a modern product range, high prices and decidedly different from the traditional Citroen range, the store receives a real success. Now let’s see the differences between French and Chinese marketing: 2. ADS marketing analysis in China In China as in France ADS product is considered as an innovative and trendy car. However the Chinese people are unfamiliar with the ADS sedan from the ass’s.
For that reason, they do not refer to the innovative aspect of its predecessor. This car is designed for 30-45 years old people. As in France the car is customizable. Everyone can have its own ADS in China, with a relatively large selection of colors, the possibility of a different roof color, a large selection of decals, which allow buyers to create themselves the car that is most like them. The Chinese costumers also expressed the desire for customization and differentiation. The goal is to break with standardization and to provide a response to consumer desires.
The car is playful, fun, urban, and rather upscale. Unlike France, the ADS is not intended to restore a youthful brand but rather to offer an innovative product that breaks with the range of available cars in China. Promotion: In China the ADS was also highlighted as a young product, easy to access and to use. To sell the product, Citroen has focused its communication on the “French chic”. The car is presented as a luxury product, almost as “haute couture”. The woman who is acting in the advertisement is a Chinese elegant woman probably coming from the fashion world.
To escape this environment tasteless, she disguises herself and hand drive her ADS. Driving this car is a kind of escape from the everyday but also to have a fun activity while remaining elegant. On the other hand the brand played on the luxury product appearance highlighting the car in department stores. When creating the “Galleries Lafayette” in Beijing (Ala Of Ye), the brand has created a miniature ADS was slipped into make-up kits. Upstairs men, the car sat beside the male ready-made loathes. An image of luxury with the French returned to China for an unknown brand.
On the other hand the ADS and more generally the ADS line didn’t communicate about the affiliation with Citroen. The goal was to launch a new brand totally independent and really new in the Chinese automotive environment. All those argue show how the promotion is different between France and Chinese. Price: The Citroen ADS prices in China are: (Yuan) ? (Euro) $ (Dollar) 199,800 ? 29,975 $ 32,203 Premium Model 249,800 ? 37396 In terms of prices, Chinese ADS shows again its difference with France for the allowing reasons: – First, the brand positioning is higher in China than in France as I explained earlier.
It is normal that the automaker has chosen to tackle a market with higher prices to be directly identified as a luxury brand. – Secondly China marketing techniques are different from those of France. In terms of communication the brand started from scratch and had to conquer a new market that is more mass customization. It is often said that in China the marketing costs are very high which increases the product price by 1. 5. – Finally, there are big taxes on new cars in the big Chinese city. Place: We can observe again a big difference in terms of Marketing Mix with the place point.