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Introduction to Marketing 5C Analysis - Company, Customers, Competitors, Collaborators, & Context

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EMBA Pro Marketing 5C analysis for Aston Martin: The Crossover Conundrum case study

In March 2009, Ulrich Bez, CEO of British carmaker Aston Martin Lagonda Ltd., found himself grappling with some tough news from Switzerland. The company had just debuted a novel car concept, its first crossover model under its rarely used historic Lagonda brand, at the Geneva Motor Show, but the negative press criticizing the four-wheel drive, four-seater car's design and concept was troubling and unexpected.

Case Authors : L. J. Bourgeois III, Yiorgos Allayannis, Luca Cian, Morela Hernandez

Topic : Strategy & Execution

Related Areas : Strategy

EMBA Pro Marketing Approach for Aston Martin: The Crossover Conundrum

At EMBA PRO, we provide corporate level professional Marketing Mix and Marketing Strategy solutions. Aston Martin: The Crossover Conundrum case study is a Harvard Business School (HBR) case study written by L. J. Bourgeois III, Yiorgos Allayannis, Luca Cian, Morela Hernandez. The Aston Martin: The Crossover Conundrum (referred as “Lagonda Aston” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Strategy.
Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Strategy & Execution field, company, context, collaborators, competitors, customers, Marketing Mix factors, Products related decisions, pricing strategies and more.

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What is 5C Analysis of Aston Martin: The Crossover Conundrum – Definition & Explanation

5C Analysis is a marketing tool to do a situational analysis in which Lagonda Aston operates in. It inculcates both the macro and micro environment factors that impacts Lagonda Aston. The 5C analysis allows marketing managers to put probabilities to different types of risk exposure Lagonda Aston is facing in the marketplace and design marketing strategies accordingly.
Marketing strategy is about making marketing decisions in the face of macro environment uncertainty, competitive pressures & strategies, and other economic factors.

What are the Five C’s of the Marketing? How to Conduct a 5C Marketing Analysis of Aston Martin: The Crossover Conundrum Case Study

The 5Cs of Marketing Analysis are -
1 - Company,
2 - Customers,
3 - Competitors,
4 - Collaborators, and
5 - Context.
Lagonda Aston faces 4 major types of risk exposures – risk corresponding to technological innovations, demand risks, production or delivery risks, and international risks.

Company Analysis - 5C of Marketing

Key Question Answered – What are the strengths and weaknesses of the company and how marketing can improve the effectiveness of its core strength and alleviate the impact of its weaknesses.

Marketing managers at Lagonda Aston needs to analyze the internal strengths and weaknesses of the company before making marketing decisions. Each organization has different marketing budget, different skill sets to execute marketing strategies and promotional campaigns. The company analysis will help the Lagonda Aston to optimize the use of the marketing resources. In terms of the four risks mentioned above –Marketing managers at Lagonda Aston needs to focus on risks corresponding to production and delivery risks. If the company fails to match the consumer expectations then no amount of smart marketing can build a sustainable competitive advantage.

Company Factors

Quality of human resources to create and manage effective campaigns – Lagonda Aston attracts some of the best talent in its industry and the skill level of Lagonda Aston existing workforce is very high. Lagonda Aston has strong marketing department which helps it to design effective and successful marketing campaigns.

Ability to scale production – Lagonda Aston has a robust and flexible supply chain so it can meet the challenges of managing success arising from highly successful marketing efforts that lead to surge in consumer demands for its products.

Brand Equity – Lagonda Aston has strong brand equity both among the existing customers and potential customers. It can leverage this brand equity to expand into new segments.

Culture of the Lagonda Aston – As the Aston Martin: The Crossover Conundrum explains the firm has a strong culture of product and process innovations.

Checkout Marketing 4P and Marketing Mix Analysis Marketing 4P & Mix analysis of Aston Martin: The Crossover Conundrum

Customers - 5C Marketing Analysis

Key question answered - How Lagonda Aston can identify attractive market segments and choose a market targeting strategy.

Marketing strategy of Lagonda Aston needs to meet two broad objectives – carefully selecting target market and designing marketing activities to achieve desired positioning in hearts and minds of the target market. Customer analysis by marketing managers of Lagonda Aston can include – growth rate of the industry, potential market size of both the overall market and target segment, tangible and intangible product features desired by consumers in the industry, core purpose of buying the products, frequency of purchase, recent purchases, industry trends, income levels etc.
Based on our 4 broad risk framework for 5C analysis – marketing managers should focus on demand risk and technology risk in customer analysis section.

Customers Factors

Who the target customer is – Should Lagonda Aston go for a broader segment or position its product in niche segment. My suggestion is that it should focus on the niche segment as it is highly profitable.

What is market size of the segment that Lagonda Aston wants to target – I believe the market size will grow at a steady pace and it will present various opportunities to expand into adjacent segments.

How to grow share of customers purchase basket – The decision marketing department at Lagonda Aston needs to take – How it can grow the customer purchase basket share with Lagonda Aston products.

What are the features most desired by consumers – Marketing managers at Lagonda Aston needs to decide which are the features most desired by consumers and how Lagonda Aston can position itself to deliver those 2-3 critical features.

What is the level of brand awareness among target segment and general population – The brand awareness among the target segment and among wider population is high. Lagonda Aston can leverage on it to build sub brands for niche segments within the target market and adjacent segments.

Competitors - 5C Marketing Analysis

Key Question Answered – Who the competitors are, what their marketing strategy is, and how Lagonda Aston can design its marketing strategy in view of competitive pressures and limited marketing resources.

The core function of marketing strategists and marketing managers is to design marketing activities that can help Lagonda Aston to thwart competitive pressures from established players as well as potential entrants. Marketing managers of Lagonda Aston has to make decisions regarding –
Where to position the brands respective to Lagonda Aston own brands portfolio and competing brands
What are the marketing strategies of competitors.
Should Lagonda Aston competes directly with the competitors or find niche positions within the segments.
What type of competition there is in the industry that Lagonda Aston operates in.
Based on our four risks exposure framework – In competitors analysis marketing managers of Lagonda Aston should closely analyze – demand risks and technology innovation risks.

Competitors Factors

Positioning strategy vis a vis competitors – The critical marketing decisions for managers at Lagonda Aston is what strategic position to choose which at same time is – different from competitors and relevant to the customers.

Threats of new entrants to profits of Lagonda Aston – Marketing efforts are often barriers to entry in the industry and new entrants not only have to have huge marketing resources to compete with the incumbents but also need high level of marketing know how.

Countering Marketing Campaigns of Competitors – Often one competitor campaign has to be matched with a counter campaign to stop the product trial of the competitor’s product by the firm loyal customers. It has to be done to control the churn of customers.

Product Line Breath Decisions – This not only pertains to Lagonda Aston product strategy but also its distribution and supply chain management strategy. Broader line requires more positioning strategies and higher marketing spending.

Product Line Depth Decisions for Lagonda Aston – Depth involves targeting different segments within the same product range. Higher the depth, the more the company needs to spend on individual brands without putting too much focus on the parent company.

What will drive future growth and how competitors will try to take share of that future growth – technology innovations can result in making present positioning less profitable so Lagonda Aston needs to continuously innovate and look for new opportunities.

Intensity of rivalry among existing players – if the intensity is high then the profitability is usually low in any industry. Thus it requires Lagonda Aston to spend higher resources on marketing efforts.

Threats of substitutes to Lagonda Aston – The threats of substitutes often arise either from economic cycle or technological innovation. It may require repositioning of certain brands on part of Lagonda Aston in certain markets.

Collaborators - 5C Marketing Analysis

Key Question Answered – How flexible & robust Lagonda Aston supply chain is and how much bargaining power the collaborators in the value chain have.

Collaborators include the supply chain partners both upstream and downstream of the value chain. For doing Collaborators analysis Lagonda Aston needs to critically evaluate the supply chain based on numerous factors such as – bargaining power, what suppliers bring to table, flexibility & agility of supply chain, revenue sharing at each step of the value chain.
Based on risk exposure parameters under the collaborators analysis Lagonda Aston marketing managers should focus on risk exposure to international risks (because Lagonda Aston has international operations), and production and delivery risks. For example if the collaborators effectively able to meet the demand increased by effective advertising of Lagonda Aston marketing department then it will go a long way in enabling the company to thwart new competition and devise premium pricing strategy.

Collaborators Factors

Managing delivery and services in times of uncertainty – Most global organizations such as Lagonda Aston are diversifying rapidly to reduce delivery and supply chain risks. Lagonda Aston should also focus on it.

Number of suppliers and abilities of the suppliers – If there are too many suppliers then it will become expensive for Lagonda Aston to manage them but if the number of suppliers is too few then it will expose the company to supply chain disruption risks.

Position and bargaining power in the value chain – If the collaborators have strong bargaining power then Lagonda Aston will not able to sustain higher margins even with higher marketing expenditure.

Flexibility of supply chain and international risks – In international markets the critical question in front of Lagonda Aston is how much localize based on local preferences. Rest of the decisions from production to marketing is based on this critical decision. Opportunities to localize the production and other processes to reduce risk of organization wide supply chain risk in international market.

Risks to intellectual property rights and patents – Operating in international markets can expose Lagonda Aston to theft of Patents, Copyrights and other Intellectual Property Rights. Any marketing and diversification decision should be taken after evaluating these risks.

Context - 5C Marketing Analysis

Key Question Answered – Which are the macro economic factors that will significantly impact both the business model and the marketing strategy.

Context Analysis encompass the diligent analysis of macro environment factors such as – political and social environment, regulatory environment, economic conditions in the markets that the Lagonda Aston operates in, rate of technology innovations in the industry, legal environment, environmental standards in the industry etc.
Two main forms of risk exposure in the context analysis are – International risks, and technology & innovation risks exposure.

Context Factors

Foreign Exchange Exposure – International operations not only bring risks of marketing strategies that are not relevant to specific market but also risk of foreign exchange exposure. In last 10 years most US organizations have lost money because of FX exposure in countries such as Venezuela, Argentina, Turkey, Russia & Indonesia.

Inflation & Diversification – Inflation impacts the pricing strategy of Lagonda Aston as high inflation can result in lower income from the present sales.

Employment – Given the employment crisis in Western Europe and emergence of Gig economy and employment in US and all the major western economies – employment has become a critical factor in designing marketing strategy. Employment not only impacts the purchasing power of the customer but also impacts the self esteem and brands she can associate with.

Economic – The consumer behavior during boom time and recession time is often totally different so marketing managers at Lagonda Aston has to decide how the consumers will behave in the present economic situation.

Regulatory Framework – It not only impacts the type of the advertising and marketing campaign a company can run but also the type of products Lagonda Aston can sell. For example the standards & regulations for Lagonda Aston products in US and European Union are vastly different.

Political Risks to Lagonda Aston – Geo-political risk have increased over the last three to four years with developments such as US-China trade situation, Brexit, and rise of yellow vests in France.

5C Marketing Analysis of Aston Martin: The Crossover Conundrum

4P Marketing Analysis of Aston Martin: The Crossover Conundrum

Porter Five Forces Analysis and Solution of Aston Martin: The Crossover Conundrum

Porter Value Chain Analysis and Solution of Aston Martin: The Crossover Conundrum

Case Memo & Recommendation Memo of Aston Martin: The Crossover Conundrum

Blue Ocean Analysis and Solution of Aston Martin: The Crossover Conundrum

Marketing Strategy and Analysis Aston Martin: The Crossover Conundrum

VRIO /VRIN Analysis & Solution of Aston Martin: The Crossover Conundrum

PESTEL / STEP / PEST Analysis of Aston Martin: The Crossover Conundrum

Case Study Solution of Aston Martin: The Crossover Conundrum

SWOT Analysis and Solution of Aston Martin: The Crossover Conundrum

References & Further Readings

L. J. Bourgeois III, Yiorgos Allayannis, Luca Cian, Morela Hernandez (2018), 'Aston Martin: The Crossover Conundrum Harvard Business Review Case Study. Published by HBR Publications.

Kotler & Armstrong (2017) 'Principles of Marketing Management Management', Published by Pearson Publications.

Introduction to Porter Five Forces

EMBA Pro Porter Five Forces Solution for Aston Martin: The Crossover Conundrum case study

Case Authors : L. J. Bourgeois III, Yiorgos Allayannis, Luca Cian, Morela Hernandez

Topic : Strategy & Execution

Related Areas : Strategy

EMBA Pro Porter Five Forces Analysis Approach for Aston Martin: The Crossover Conundrum

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Introduction to Porter Five Forces

First published in 1979, “How Competitive Forces Shape Strategy” by Michael E. Porter, revolutionized the field of strategy. Popularly known as “Porter’s Five Forces” - not only influenced a generation of academic research but also provided a map to rigorously analyze the competitive forces.

Porter Five Forces that Determine Industry Structure

Porter Five Forces model is heavily borrowed from the traditional field of micro economics. The five forces that determine the industry structure of organization in casename case study are -

1. Threat of substitute products and services - If the threat of substitute is high then Lagonda Aston has to either continuously invest into R&D or it risks losing out to disruptors in the industry.

2. Bargaining power of buyers of Lagonda Aston – If the buyers have strong bargaining power then they usually tend to drive price down thus limiting the potential of the Lagonda Aston to earn sustainable profits.

3. Rivalry among existing players – If competition is intense then it becomes difficult for existing players such as Lagonda Aston to earn sustainable profits.

4. Bargaining power of suppliers of Lagonda Aston - If suppliers have strong bargaining power then they will extract higher price from the Lagonda Aston.

5. Threat of new entrants - if there is strong threat of new entrants then current players will be willing to earn less profits to reduce the threats.

Why Porter's five forces analysis is important for casestudyname?

You can use Porter Five Forces model to analyze the competitiveness faced by protagonist in casestudy. Porter five forces analysis of casename case study will help you in understanding and providing solution to – nature & level of competition, and how Lagonda Aston can cope with competition.
Even though from outside various industries seem extremely different but analyzed closely these five forces determines the drivers of profitability in each industry. You can use Porter Five Forces to understand key drivers of profitability of Lagonda Aston in casename case study.

Porter’s 5 Forces, Competitive Forces & Industry Analysis

The core objective of strategists and leaders in an organization is to help the organization to build a sustainable competitive advantage and thwart competitive challenges.
Step 1 – Defining relevant industry for Lagonda Aston in casestudy
Step 2 – Identify the competitors and group them based on the segments within the industry
Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak.
Step 4 - Determine overall industry structure and test analysis of consistency
Step 5 – Analyze recent and future changes in each forces
Step 6 – Identify aspects of industry structure based on Porter 5 Forces that might be influenced by competitors and new entrants.

How is Porter's five forces framework used in developing strategies?

To achieve above average profits compare to other industry players in the long run, Lagonda Aston needs to develop a sustainable competitive advantage. Industry analysis using Porter Five Forces can help Lagonda Aston in casename case study to map the various forces and identify spaces where Lagonda Aston can position itself.
By doing Industry analysis using Porter Five Forces, Aston Martin: The Crossover Conundrum can develop four generic competitive strategies.

The four generic competitive strategies that can be pursued in casename case study are -

Cost Leadership

In cost leadership, Aston Martin: The Crossover Conundrum can set out to become the low cost producer in its industry. How it can become cost leader varies based on the industry forces and structure. In pursuing cost leadership strategy, Lagonda Aston can assess – (pursuit of economies of scale, proprietary technology, supply chain management options, diversification of suppliers, preferential access to raw materials) and other factors.

Differentiation

Lagonda Aston can also pursue differentiation strategy based on the industry forces description in casename case study. In a differentiation strategy Lagonda Aston can seek to be unique in its industry by providing a value proposition that is cherished by buyers. Lagonda Aston can select one or more attributes that can uniquely position it in the eyes of the customers for a specific needs. The goal is to seek premium price because of differentiation and uniqueness of the offering. Industry analysis using Porter Five Forces can help Lagonda Aston to avoid spaces that are already over populated by the competitors.

Focus - Cost Focus & Differentiation Focus

The generic strategy of Focus rests on the choice of competitive scope within an industry. Lagonda Aston can select a segment or group of segment and tailor its strategy to only serve it. Most organization follows one variant of focus strategy in real world.

The Focus Strategy has two variants.

(a) In cost focus a Aston Martin: The Crossover Conundrum can seek a cost advantage in its choses segment in casecategory.
(b) In Differentiation strategy Aston Martin: The Crossover Conundrum can differentiate itself in a target segment in its industry.
Both variants of the focus strategy rest on differences between a Aston Martin: The Crossover Conundrum ’s target segment and other segments in the industry.

5C Marketing Analysis of Aston Martin: The Crossover Conundrum

4P Marketing Analysis of Aston Martin: The Crossover Conundrum

Porter Five Forces Analysis and Solution of Aston Martin: The Crossover Conundrum

Porter Value Chain Analysis and Solution of Aston Martin: The Crossover Conundrum

Case Memo & Recommendation Memo of Aston Martin: The Crossover Conundrum

Blue Ocean Analysis and Solution of Aston Martin: The Crossover Conundrum

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Marketing Strategy and Analysis Aston Martin: The Crossover Conundrum

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VRIO /VRIN Analysis & Solution of Aston Martin: The Crossover Conundrum

PESTEL / STEP / PEST Analysis of Aston Martin: The Crossover Conundrum

Case Study Solution of Aston Martin: The Crossover Conundrum

SWOT Analysis and Solution of Aston Martin: The Crossover Conundrum

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References & Further Readings

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M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
L. J. Bourgeois III, Yiorgos Allayannis, Luca Cian, Morela Hernandez (2018), 'Aston Martin: The Crossover Conundrum Harvard Business Review Case Study. Published by HBR Publications.
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

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Kotler & Armstrong (2017) 'Principles of Marketing Management Management', Published by Pearson Publications.