Entering the premium marketHulting Consulting, LLC

Meet the Hulting Consulting Team

Lukas Brandon Nina

Varun Noppasith Vincent

Locations:

BOSTON

DUBAI

LONDON

SHANGHAI

SÃO PAULO

SEOUL

TORONTO

© 2012 IXL Center Inc. All Rights Reserved

Agenda

1. Problem Definition (SCQ)2. Issue Analysis3. Work Plan

Company OverviewFrench manufacturer of automobiles with two main renowned brands:

2011 Key Figured:• Europe’s second largest automaker; 8th largest • Sale operations in 160 countries, 16 production

facilities, and 210,000 employees• Sold in excess 3.5m vehicles in 2011, of which

42% were outside Europe• Generated sales & revenue of €59.9 billion• Invested €2.3 billion to R&D in China and Latin

America with special focus on new synergies.

Type: PrivateCompany Size:210,000Founded:1976

The Situation

• Second Largest European automakers• Main markets in France and Slovakia• Issues coping with the economic recession• Focus on low, small margin cars

• Their brand image is low-cost and quality • French car makers do not have a premium view• Lost close to One billion Euros• Consumers are more price sensitive• Rivalry from Fiat and Renault

• Can PSA enter the premium market in China despite the economic crisis?

Issue Analysis For PSA

1.Can they re-image themselves to be a higher

quality automakers?

Can PSA enter the premium market in China despite the economic crisis?

2.Can they be more cost-efficient?

3.Can they make a new car line specifically aimed towards the

premium car market?

• Is there financial resources to support the brand?

• Can Peugeot lose their hold on the current target when altering their strategy?

• Can they target the upper middle class?

• Can revamping the factories and R&D department cut cost?

• Can the factories be more productive without sacrificing employees?

• Will creating a factory in China be beneficial?

• Can PSA afford to make a new car line?

• Can they effectively create a new image separate from the existing one?

• Can they compete with the existing premium car manufacturers?

• • Data mining for financial

research

• Interview and market survey with the current audience

• Utilize social networking to find more detail information

• Audit from a third party for new manufacturing strategy

• Stronger human resource impact and financial analysis

• Study Chinese legal and business laws, practice and customs

• Determine a new business plan

• Hype up by leaking pictures of concept cars

• Conduct surveys

• Competitor analysis and Porter’s Five Forces

Activ

ities

/ Ta

sks

Based on the SCQ we divide the key question into 3 questions

Sub

ques

tions

1.1 Sub QuestionA. Is there financial resources to support the brand?B. Can Peugeot lose their hold on the current target when altering their strategy?C. Can they target the upper middle class?

1.2 ActivitiesD. Data mining for financial researchE. Interview and market survey with the current audienceF. Utilize social networking to find more detail information

1.Can they reimage themselves to be a higher quality automakers?

Key QuestionPeugeot currently targets the lower class segment of

the market . . . . .

2.1 Sub QuestionD. Can revamping the factories and R&D department cut cost?E. Can the factories be more productive without sacrificing employees?F. Will creating a factory in China be beneficial?

2.2 ActivitiesG. Audit from a third party for new manufacturing strategyH. Stronger human resources impact financial analysisI. Study Chinese legal and business laws, practice and customs

2.Can they be more cost-efficient?

In response to the fall of demand . . . . .Key

Question

3.1 Sub QuestionsG. Can PSA afford to make a new car line?H. Can they effectively create a new image separate from the existing one?I. Can they compete with the existing premium car manufactures?

3.2 ActivitiesJ. Determine and gain more research for a new business planK. Hype up by leaking pictures of concept carsL. Conduct surveys, competitors analysis and Porter’s Five Forces strategy

3.Can they make a new car line specifically aimed towards the premium car division?

Key Question

The group is pursuing a strategy of brand up scaling . . . . .

The Work Flow

Thank you谢谢