The effect of advertising on Iran’s automobile industry

Advertising

Advertising is used to convey the message of a brand and to increase the profitability of the company or brand. One of the main goals of advertising is to increase the sales rate and have a positive effect on the income of the company. Automobile industry is not an exception. Successful and strong advertising can even transform a luxury car into a necessity!

Nowadays, Iran’s automobile market is considered as a market that it is ready to accept various foreign products. Also, after the JCPOA (Joint Comprehensive Plan of Action) between Iran, the P5+1 and the European Union, Iran’s market is witnessing a change; various French, Chinese, Hindi, Russian and other brands are investing in Iran’s automobile market with a wide price range. According to latest statistics from Islamic Republic of Iran Customs Administration, the preliminary statistics of the first quarter of 2017, 26666 vehicles were imported to Iran worthy of 753 million dollars which indicates the purchasing power and automobile importance for Iranians (ISNA). Therefore, the automobile companies try to enter their products into the Iranian market; there is a close competition between these automobile importers in Iran’s automobile market. In addition to appropriate pricing, manufacturers try to offer high-quality products to meet different needs of Iranian consumers.

Based on the current situation which was explained above, since few years ago, due to the increment of the automobile price, automobiles turned to be a tool for saving money. A specific car in Iran is more expensive than other countries but nevertheless, the Iranian market is still one of the best markets to buy a brand-new car; because the demand is high. For instance, luxury and expensive cars such as Porsche, Maserati, Benz, BMW and etc. are still as popular as middle-class cars and their sales are quite high compare to many countries.

Meanwhile, when a new car or brand enters the Iranian automobile market, it may be unknown to the public and advertising could be one of the best and fastest ways to introduce the brand to the public. Therefore, it can be said that effective advertising is the most important factor to guarantee a brand’s success in the automobile market. Of course, it should be noted that, despite the various facilities, affordable price and customer services of a brand, it may not be able to grow in the Iranian market. This can also be solved through various appropriate advertising media. As a proof, the Italian brand, Alfa Romeo despite its great position in Europe market for its great facilities, low fuel consumption and high-quality- driving, it failed to sale successfully in Iran’s market due to inappropriate and week advertising. Moreover, advertising industry can play a significant role in introducing a new model of a well-known brand. In general, we should not forget that advertising is a method to raise awareness, increase sales rate and ultimately achieve a great position in the market.

According to the studies, in order to enter the automobile market of any country, you should pay attention to these points:

  1. Identify the potential and existing competitors in the market
  2. Analyze the bargaining power of the suppliers and customers
  3. Gather data regarding the alternative products
  4. Identify the opportunities and market threats
  5. Identify the weaknesses and strengths of the products

If the brand owners and car importers are planning to enter a market in a foreign country, they should be aware that it is necessary to know enough about the culture, market needs, beliefs and the geography of that country; because if you do not have enough information about your target market and target audiences, you cannot expect to be successful in your business and increase your sales rate as well as your market share.

MAAT Advertising agency is one of the best full-service advertising agencies in Iran with an experienced and professional team backed with a great record in the advertising marketing field. MAAT MarCom agency has studied the people in Iran and is aware of their preferences, tastes and needs which can offer the best advertising methods to the international companies and brands to enter the Iranian market successfully. By providing the latest methods and market analysis, MAAT full-service advertising agency tries to provide a bright and successful path to the automobile importers. At MAAT agency we assure your success.