Bringing a new vehicle brand into the African automobile market could be courageous, especially when many businesses face uncertainty. However, it is an excellent opportunity to demonstrate a piece of successful ideas through your new product. At this point, expectations are high. The buyers want to be sure of the new product, and they also want to have control of their purchase decisions.
In contrast, the manufacturers or importers must see how they can fulfill the demands to find their way into the market and remain visible. And challenges can hinder the latest product from gaining the full acceptance it merits.
Be A Better Auto Brand For African Market
For instance, introducing a new vehicle brand in Africa’s automotive industry may require more than just an advertisement. Some challenges must be tackled first—making space for the newcomer to find ground. The manufacturer or importer should know what the competitors do and do more than what they do to gain attention. Therefore, specific measures must be implemented to control the challenges and address uncomfortable situations before they are around.
Customer Is King
As I mentioned earlier, some factors can hinder a new vehicle from getting the target audience’s complete acceptance. These factors are majorly the perceptions of potential customers. An old saying in the business world states that the “customer is king”; therefore, their feelings and takes on the latest product should frame the seller’s primary concerns.
Overcome Challenge Like Popular Vehicle Brands
Firstly, when introducing a new brand into an existing market where other brands are thriving already, the seller will most likely face the challenge of convincing the target customer to try his or her product ahead of other numerous famous brands. It could be challenging but achievable by ensuring that the new vehicle brand offers distinctive features that can compete favorably with the other existing brands and encourage the buyer to try it out.
Easy Access to the Vehicle Components
Secondly, potential customers want to ensure that the vehicle they are about to buy would be easy to repair and its spare parts are readily available around them. If the spare parts of the car we introduce are unavailable locally for potential customers, it can pose a severe setback. So, there should be a provision for easy accessibility of the components, even when the vehicles are second-hand in the industry’s terminology.
Making Auto Price Realistic
Another vital issue we should look into is the pricing of the product and its components. Being a new product, one key factor that can either influence or discourage intending customers is the product’s price. If the price of a product seeking entrance into the market is higher or on the same level with other, more established brands, the customers will, in most cases, go for the famous brands. Therefore, the price of the product should be realistic and can also encourage patronage.
It is essential to note that the above factors portray the customer’s point of view, and their possible reactions to a new product are not the only areas to be sorted out. Other regions can hamper the sellers’ chances of maximizing the opportunities in the market if ignored. Therefore, to sufficiently explore these areas, below is the list of what a vehicle manufacturer or importer may want to have in mind when bringing in a new brand of product in an existing market in Africa:
Things To Consider Before Bringing New Vehicle Brand Into African Market
- Product reviews
- Importation process
- Check product market value.
- Brand awareness
- Local dealer collaboration
- Employment of staffs
- Connecting with critical marketing centers
- Incentives for crucial partners (Dealerships)
- Post-sale service (Customer Service Center)
- An online platform dedicated to product
- Product component accessibility (spare parts)
- Product technical assistance
- Multimedia content development
- Product crash test reports
- Appliances for handling transaction processes effectively.
- The readiness of product manufacturers to collaborate with Nigerian technicians
Checklist For A New Car Brand In African Market
Entering a market with a new car brand, especially the African auto market, requires strategic planning and execution. This guide provides a comprehensive checklist, covering everything from product reviews to manufacturer readiness to ensure a successful market entry. Additional considerations like regulatory compliance and market research are also included.
- Product Reviews: Gather and analyze feedback from customers who have used the product to understand its strengths and weaknesses.
- Importation Process: Understanding and complying with all the legal and logistical requirements for importing the product into the market.
- Check Product Market Value: Assessing the potential price point of the product in the local market based on factors like competition, customer purchasing power, and perceived value.
- Brand Awareness: Building recognition and trust in the brand through marketing and promotional activities.
- Local Dealer Collaboration: Partnering with local dealers who can help distribute the product and provide after-sales service.
- Employment of Staff: Hiring local employees who understand the market and can provide valuable insights and connections.
- Connecting with Critical Marketing Centers: Identifying and establishing relationships with key marketing centers or hubs that can help promote the product.
- Incentives for Crucial Partners (Dealerships): Incentivizing dealerships to motivate them to push the product.
- Post-sale Service (Customer Service Center): Setting up a customer service center to handle after-sales inquiries and issues.
- An Online Platform Dedicated to the Product: Create a dedicated online platform where customers can learn about the product, make purchases, and get support.
- Product Component Accessibility (Spare Parts): Ensuring that spare parts for the product are readily available in the market.
- Product Technical Assistance: Providing technical support to help customers use and maintain the product effectively.
- Multimedia Content Development: Creating engaging multimedia content to promote the product and educate customers.
- Product Crash Test Reports: Conducting crash tests to ensure the product’s safety and sharing the results with customers.
- Appliances for Handling Transaction Processes Effectively: Implementing systems and tools to handle transactions smoothly and efficiently.
- The Readiness of Product Manufacturers to Collaborate with Nigerian Technicians: Ensuring that the product manufacturers are willing and able to work with local technicians.
New Car Brand – Additional considerations:
- Regulatory Compliance: Ensuring the product meets all local and national regulations and standards.
- Market Research: Understanding the local market’s needs, preferences, and buying behaviors.
- Localization: Adapting the product to local languages, cultures, and conditions.
- Infrastructure Assessment: Evaluating the local infrastructure, such as roads and fuel availability, which might affect the product’s performance.
- Sustainability Initiatives: Considering environmentally friendly practices, sustainability is becoming a significant factor in consumers’ purchasing decisions.
- Training Programs: Implementing training programs for local technicians and sales personnel to ensure they understand the product well.
- Financing Options: Develop partnerships with local financial institutions to provide affordable financing options to potential buyers.
In conclusion, penetrating the African auto market with a new car brand is a complex process that requires meticulous planning and execution. By adhering to this comprehensive checklist and considering additional factors such as regulatory compliance and market research, companies can navigate the challenges and seize the opportunities this vibrant market offers. Success hinges on understanding the local market dynamics and delivering a product that resonates with consumers.
Do not hesitate to contact us if you have any questions regarding a new car brand in the African automotive market,