Answer to Question #191791 in Management for Palak rever

Question

You have been appointed as a Strategy Consultant to an Italian Luxury Sports Car manufacturing brand namely “Pagani Huayra” wanting to enter India. Which one of Porter’s Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy? Once the strategy has been chosen,explain the categories of customers you would target alongwith the price points?

Answer 1

The generic strategy I would choose is differentiation because with differentiation the company will design products according to the preferences of their customers which will give them a competitive advantage over other companies producing the same product.

The category of customers I would target are the:

1. Loyal customers: Customers that make up a minority of the customer base but generate a large portion of sales.
2. Impulse customers: Customers that do not have a specific product in mind and purchase goods when it seems good at the time.
3. Discount customers: Customers that shop frequently but base buying decisions primarily on markdowns.
4. Need-based customers: Customers with the intention of buying a specific product.
5. Wandering customers: Customers that are not sure of what they want to buy.