There are FIVE (2) questions in this question paper. Questions are based on the case study below. Answer all questions.

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There are FIVE (2) questionsin this question paper. Questions are based on thecase study below. Answer allquestions. (30 MARKS)
Morgan Motor Company: can the British retro sports carbrand still besuccessful after 100 years?
The once proud British car industryhas all but vanished. However, there is one famous producer left inthe UK: the Morgan Motor Company. It is the oldest privately heldcar company in the world and today the company is still 100 percent family owned. The company was founded in 1909 by H.F.S. Morganand was run by him until 1959. Peter Morgan, the son of H.F.S., ranthe company until a few years before his death in 2003. The companyis currently run by Charles Morgan, Peter's son. Morgan is based inMalvern Link, in Worcestershire, and employs 163 people. All thecars are assembled by hand and the waiting list is one to twoyears, although it has been as high as 10 years in the past.Business is strong, despite the economic slowdown. In 1997 Morganmade 480 cars; 14 years later, in 2011, the figure was 700. MorganSays that one day it may make as many as 900-1,000 cars a year, butonly if that can be done the Morgan way and what a totally uniqueand utterly inimitable way to make sports cars that is! In 2011 theestimated revenue was around £25 million. The operating profitswere £320,000 in 2011, compared with £665,000 in 2009. The companyemploys 160 people, of whom 130 are production floor employees.
Morgan history
The first Morgan design was, ofcourse, the famous Three-wheeler. H.F.S. Morgan designed a fun car,the Morgan runabout, for people with little money but with a senseof adventure. The car was a great success and in the 1920s theMorgan factory in Malvern was making 2,500-3,000 cars a year, witha smaller number being built under licensee in France under theDarmont Morgan brand. Nevertheless, each year production alwayssold out in advance, as customers were desperate for small cars atthis time. Morgan Three-wheeler sales declined and by 1935 therewere only 300 new orders. The reason for this was the arrival ofmass-produced popular cars from Ford, Morris and Austin at asimilar price but offering more features for the money. H.F.S.Morgan had to come up with a new design. He did this in 1936 andannounced the Morgan Four, a light sports car with four wheels anda four- cylinder Coventry Climax engine. From the start, the MorganFour made its name in competition and finished well at Le Mans in1938 and 1939.
In 1962 Morgan won the two-literclass at Le Mans. A production Morgan beat the specially modifiedPorsche and Lotus racing cars and then drove home: the car averaged98 mph for the 24-hour race. Following the race, the Morgan plusFour Super sports was launched as a factory model so that customerscould buy a Le Mans class winner. Morgan's cars became regularwinners in production sports car races across the US.
At this time the Morgan Motor Companywas one of the first companies to benefit from celebrityendorsement — Ralph Lauren, Brigitte Bardot and David Bailey alldrove Morgans in the 1960s. In 1989 a visit was made by businessmanSir John Harvey Jones and makers of the BBC programTroubleshooter. Sir John criticized the company's strategyof having a long waiting list and making every- thing by hand insuch a labor-intensive way. Morgan is probably the only car companythat still makes cars the way they were made in the early 1900s —building them on a wooden frame and crafting them mainly byhand.
Sir John did not really understandMorgan's market. Coachbuilding (by wood) and a waiting list arestrengths, not weaknesses, of the business. Coach- building thecockpit area produces a light, strong cabin that is durable and thewaiting list maintains second-hand prices. There was much humorover the 'Sir John Hardly Knows' T-shirts that subsequentlyappeared at Morgan Sports Car Club meetings.
There were some very beneficialcommercial effects of Sir John's visit. Morgan experienced a bigincrease in orders and the long waiting list encouraged a priceincrease, which led to the company making significant profits thatcould be reinvested.
In April 2009, princess Anneofficially opened the brand-new Morgan Visitor Centre, a modernmuseum bedecked with memorabilia, photos, films, and the inevitablegift shop, housing a remarkable range of merchandise for 'Moggie'enthusiasts, young and old.
The Morgan philosophy and product range
The company's whole business model isbased on longevity and brand reinforcement. This is not a get richquick business. Among the many other distinctions Morgan enjoys isthat of being one of just a few family dynasties left in the carindustry. The traditional family influence has engendered along-time dedication to craft, as well as a determination not togrow the company too large for fear of increasing costs andjeopardizing quality. The sense of family ties isn't lost oncustomers, either. Eager buyers often visit their unborn vehiclesin the company's factory as the cars are being built. It is a kindof Build.a.Bear transferred to the car industry. All Morgan carshave a customer's name on them before they begin pro- duction.Customers can choose from myriad variants of body, engine size,paint color, dashboard, and leather trim. However, component supplyand storage have been complicated by the Morgan customizationmodel, but this have been simplified where possible to make iteasier for the business to deliver product.
Morgan's speedy roadsters areentirely hand-crafted, which is perhaps fitting for the oldestprivately held sports car manufacturer in the world. As a result,each car takes 130 hours to build, and the waiting list is at least12 months. By comparison, the average US­made-Nissan takes justover 28 hours to build and can be had pretty much when you want it.Unlike commonplace vehicles, Morgans feature ash wood frames, handmolded body panels and hand-stitched leather.
Such craftsmanship doesn't comecheap. For the US market, a basic two seat roadster starts atnearly uS$50,000 and the top-of-the-line Aero 8 two seat roadrocket starts at around uS$140,000 — before adding custom cosmetic,luxury, or performance upgrades. Aero 8 (launched in 2000) was thefirst completely new Morgan for 30 years and customers wanting tobuy one must wait nine months. The two- door Morgan roadsters maylook old-fashioned, but they perform as well as the best of today'stechno- logically advanced sports cars.
The Aero 8 is Europe's first AIV(aluminum intensive vehicle) and is 20 per cent lighter thancomparable vehicles. It is equipped with a BMW- sourced 4.4-litreV8 engine that gets the car from 0 to 60 in just 4.5 seconds.
As part of the centenary celebrations(100 years in 2009), Morgan announced a truly special model. Thebrand-new Aero Super Sports was launched at the Geneva Motor Showin 2009 and the first customer models were finished at the factoryin January 2010. The two Aero models, intended for a production runof 100 units, were launched from rendered drawings, with up-frontdeposits of £25,000 per car required 12 months before build. Theyquickly sold 100 on plan.
Designed and engineered in-house, theMorgan Aero Super Sports is a lightweight aluminum sports car witha luxurious specification. The interior features a comfortablecombination of polished hardwoods, hand-stitched leather andelectronic technology to create a driving environment that isefficient and ergonomic. Despite all this opulence, the overallweight of the car is still relatively low, so the car is responsiveto driver inputs and economical to run. Morgan can achieve thisbecause of their unique use of aircraft style super formed aluminumouter panels and the skills of their craftsmen in hand finishingthe assembly of each car.
The technology debuted in the 100AeroMax coupes built by the factory in 2008 and 2009. Such was thedemand for the Aero Super Sports model that Morgan took thedecision to produce the new model in greater numbers.
Customer targetgroups
Morgan is not acompany that deliberately targets the recession proof super-rich,but the cars' name and cache have made the marque resilient.Morgan's business model has been robust. First, the cars have greatresidual value — an AeroMax that sells for £110,000 new can go onsale in Germany for €160,000 within a year. Today, 98 per cent ofall the Morgans ever made are still in existence.
Of growingimportance is the number of women who are wealthy in their ownright who are potential customers. In north America where thenumber of Morgan distributors has doubled in recent years, womenrepresent nearly 40 per cent of the top wealth holders, with grossassets of more than uS$625,000, and in the UK there are now as manywoman millionaires as men in the age group 18-44. However, Morganbuyers are not necessarily terribly wealthy, especially not ownersof the 1.6 base model, costing around £30,000 in the UK. The BMW-engined Aero 8 costs nearly eight times this amount.
Over the years a lotof celebrities have joined the Morgan spirit: Mick Jagger hasjoined Catherine ❑eneuve and Jean-paul Belmondo. Even Miss piggyhas been among the elite alumni of Morgan owners. Morgan cars haveappeared in a host of films and TV programs, includingMoonraker, Monty Python's Flying Circus, My Girl andThe Trip. Several books have been published about Morgancars.
The Morgancommunity
A Morgan community is in place for thefirm's huge network of enthusiasts:
All these activities represent classicexamples of customer relationship marketing.
Internationalmarketing
Morgan builds about700 cars per year, around 30 per cent of which are sold in the UK.Besides the UK and the US, Morgan cars are sold through- out mostof western Europe, as well as in Australia, Japan, New Zealand andSouth Africa.
For part of the1950s and 1960s, the US provided the company with its largestmarket worldwide, taking up to 85 per cent of all production. Thisended with the first wave of US safety and emission regulations in1971. For many years (1974 to 1992), all Morgans imported into theUS were converted to run on propane, to meet the requirements ofthe US emissions regulations. However, this conversion, along withbringing the cars into compliance with US vehicle safetylegislation, was carried out by the dealership and not by thefactory, making the cars grey market vehicles.
Comeback in theUS
In 2003, Morgan sold100 cars in the US, and it has already pre-sold the same number ofthe Aero 8 which replaces its plus 8 model. Sales were thenexpected to rise to 200-250 per year. The Aero 8 was the firstMorgan model sold in the US since the 1950s and 1960s.
https://www.academia.edu/41537131/Global Marketing 8th_Edition Pearson Edu cation
Based onthe case study above, answer the following questions:
Question 4
Localizing marketstrategy is the process of adapting content, products, and servicestospecific local markets. Identify TWO (2)advantages of localization for Morgan Company'sglobalmarket. (6 Marks)
Question 5
If Morgan wants toexpand its products, briefly explain ONE (1)advantage and ONE (1)disadvantage of using "Market Expansion Strategies'matrix. (6 Marks)