Smart Car Analysis

TEAM CASE ASSIGNMENT-SMART CAR USA 1. IDENTIFY AT LEAST 3 BASES FOR SEGMENTING THE MARKET FOR SMART CAR IN THE US. PREPARE A MARKET-PRODUCT GRID ILLUSTRATING AT LEAST ONE OF THESE BASES. ? Geographic Segmentation: Larger cities that suffer from congestion ? Demographic Segmentation: Appeal to younger adults(Age), Affordability (Income) ? Behavioral Segmentation: Park-ability, Less fuel, environmental consciousness 2. What criteria should Smart Car use in assessing the attractiveness of potential market segments?Select the market segment that you think is the most attractive for Smart Car and discuss the considerations that led you to make that target market decision. ALTHOUGH THE CRITERIA OF COMPETITIVE POSITION CAN BE USED DUE TO THE LOW NUMBER OF COMPETITORS, THE EXPECTATION OF MARKET GROWTH WILL INFLUENCE COMPETITORS TO ENTER THE MARKET. THEREFORE, THE FIRST CRITERIA USED TO ASSESS THE ATTRACTIVENESS OF POTENTIAL MARKET SEGMENTS WOULD BE THE EXPECTED GROWTH. THE SIZE OF THE MARKET IN THE SEGMENT WILL CONTINUE TO GROW SIGNIFICANTLY.AMERICANS HAVE MANY REASONS TO START LOOKING TOWARDS SMALLER CARS; SOARING GAS PRICES, ECONOMIC DOWNTURN, CONGESTION, AIR POLLUTION AND PARKING LIMITATIONS/DIFFICULTY. ALSO, AS TECHNOLOGY ADVANCES SYSTEMS AND PRODUCTS SEEM TO GET SMALLER. THE KEY TO MARKET SUCCESS IS THE REALIZATION BY AMERICANS THAT SMART CAR CAN ADDRESS MANY FACTORS ENVIRONMENTALLY AND ECONOMICALLY. MANY CONSUMERS ARE NOT AWARE OF THE ASPECTS AND FEATURES OF SMART CAR. SMART CAR ENCOMPASSES INNOVATION, INTELLIGENCE, FUNCTIONALITY, FUEL EFFICIENCY AND MOST OF ALL SAFETY IN ITS SMALL DESIGN.IT IS ALSO MADE OUT OF RECYCLABLE MATERIALS TO BE ENVIRONMENTALLY RESPONSIBLE. THE CAR CAN BE PARKED UNIQUELY IN AREAS THAT REGULAR SIZED CARS CANNOT HOLD. THE SMART CAR WILL BE A ‘TRENDSETTER’ FOR SMALL CARS. THE MARKET SEGMENT THAT THE SMART CAR WOULD MOST BE ATTRACTIVE TO IS THE MODERATE INCOME INDIVIDUALS, WHICH ARE USUALLY YOUNGER ADULTS. HOWEVER, WITH THE CURR ENT ECONOMIC CRISIS MANY INDIVIDUALS INCOME HAVE SIGNIFICANTLY DECREASED. SMART CAR’S AFFORDABILITY WOULD APPEAL TO THOSE THAT WANT TO SAVE ON THE PURCHASE OF CAR WHICH WOULD ALSO LEAD TO FUEL COSTS SAVINGS.AS FUEL PRICES CONTINUE TO SOAR, THE MARKET FOR FUEL EFFICIENT SMALL CARS WILL INCREASE. THIS WAS EXEMPLIFIED THROUGH THE â€Å"CASH FOR CLUNKERS† CAMPAIGN BY THE GOVERNMENT IN WHICH MORE CONSUMERS LOOK TOWARD SMALL CARS TO SAVE ON GAS. SMART CAR IS FOR THOSE WHO WANT TO MAKE A STATEMENT ABOUT WHO THEY ARE THROUGH THE PRODUCT THAT THEY BUY. 3. HOW MIGHT SMART CAR USE SEGMENTATION FOR POSITIONING PURPOSES? BASED ON SEGMENT YOU SELECTED, CREATE A POSITIONING STATEMENT FOR SMART CAR IN THE U. S. DISCUSS YOUR POSITIONING STATEMENT IN TERMS OF RELEVANCE TO THE TARGET MARKET TOWARDS WHICH THE STATEMENT IS WRITTEN.Product positioning refers to the place in consumers’ minds that an offering occupies important attributes relative to competitive products. A marketing m anager can use product positioning to change the way in the future, the position of the product in consumers’ minds. Segmentation can be used by smart car for positioning purposes by using differentiation positioning which involves seeking a less competitive, smaller market niche in which to locate a brand. Smart car should use demographics segmentation in order to accomplish desired results.Smart cars are less expensive and smaller than regular cars as a result, it appeals to the younger generation as can be seen in the grid above. This is so because, they have lower income, they travel to the city more frequently and therefore needs the convenience of smart car. Smart Car Positioning Statement For educated consumers who desire an easy commute in heavy traffic, easier parking and hassle free driving experience. Smart Car is an affordable automobile that is fuel efficient and the best in safety and convenience.This focuses smart car’s marketing strategy, and will lead them to keep improving technology that will continue to keep the target market interested such as; iPod and blue tooth capability in the cars. They will also continue to ensure that their competitors do not succeed in making smaller or more fuel efficient cars than theirs. 4. Assuming the target market that you selected, create a perceptual map for Smart Car and its primary competitors. Discuss any present opportunities, and Smart Car’s ability/inability to meet those needs. [pic]SMART CAR HAS THE ABILITY TO REACH A NICHE MARKET THAT HASN’T BEEN EXHAUSTED. THE U. S. MARKET HAS NOT BEEN OVERLY FRIENDLY TO ULTRA-EFFICIENT VEHICLES IN RECENT YEARS, BUT THAT HAS BEEN SLOWLY CHANGING AS GAS PRICES HAVE INCREASED. BECAUSE OF THE INCREASE AMERICAN DRIVERS ARE READY FOR SMALL, EFFICIENT AND DISTINCTIVE CARS. PREVIOUS SUBCOMPACTS HAVE CARRIED FUEL ECONOMY OVER INTO DESIGN ECONOMY, RESULTING IN DRAB, GENERIC CARS. THIS CUSTOMIZABLE CAR IS A SMALL, TWO-PERSON VEHICLE THAT WILL AP PEAL TO A YOUNGER AUDIENCE WHOSE CONCERNS ARE GEARED AROUND LESS INCOME.INDIVIDUALS WHO WOULD LIKE TO SAVE ON TIME, FUEL AND MAINTENANCE WILL BENEFIT FROM THIS VEHICLE. OVERALL, THE FORTWO IS PROBABLY THE MOST FUEL-EFFICIENT FOUR-WHEELED VEHICLE WITH A CONVENTIONAL GASOLINE ENGINE ON THE MARKET. HOWEVER, IT CAN'T CURRENTLY COMPARE TO THE MPG NUMBERS OF A HYBRID, AND IT IS MORE EXPENSIVE THAN JUST ABOUT ANY OTHER SUBCOMPACT AVAILABLE TODAY, BUT IT HAS A DISTINCTIVE, ATTENTION-GRABBING DESIGN AND IS CERTAINLY EASIER TO PARK THAN ANYTHING EXCEPT A MOTORCYCLE. 5. AT PRESENT, THE US MARKET FOR SMART CAR IS RELATIVELY SMALL, BUT GROWING.WHAT MARKETING MIX RECOMMENDATIONS COULD BE USED TO SIGNIFICANTLY EXPAND THIS MARKET? KEEP THE CURRENT ECONOMIC CLIMATE AND MINDSET IN MIND WHEN PROVIDING YOUR RECOMMENDATIONS. PRODUCT: SMART CAR COULD ENHANCE THE FEATURES BY ADDING BLUETOOTH TECHNOLOGY AND GPS TRACKING. THE ENHANCEMENTS TO THE PRODUCT WOULD GENERALLY BE IN THE FIELD OF INNOVATION; TECHNOL OGY IMPROVEMENTS. KEEP FORWARD THINKING IN MIND AS IT HAS TODAY; ELECTRIC VEHICLES AND ENERGY EFFICIENT MODELING. PRICE: DUE TO THE ECONOMIC CLIMATE SMART CAR SHOULD KEEP THEIR CAR MODERATELY PRICED AS IT IS NOW STARTING AT $11,990.THE PRICING STRATEGY IS BEST ADDRESSED THAT IT SUITS THE NEEDS OF  ITS TARGET MARKET AND ALSO COST EFFECTIVENESS. PROMOTION: PRE- PUBLICITY SUCH AS TEST DRIVES AND MOTORING REVIEWS AS A PROMOTION ACTIVITY, GENERATES SUFFICIENT CONSUMER CURIOSITY IN THE PURCHASE OF SMART CARS. VIA THIS MEANS, OTHER INDIVIDUALS-SUCH AS JOURNALISTS, ARE GIVEN OPPORTUNITY TO ASSESS THE MERITS OF SMART CAR PRODUCT BEFORE BUYING THE SMART CAR OF AMERICA. SAMPLING OF SMART CARS IN STREETS AND ALSO USING IT FOR CAMPAIGNS IS A GOOD ABILITY TO CAPTURE BUYERS.ADVERTISING THE AFFORDABILITY AND THE FUEL COST SAVINGS WOULD FIT INTO THE CURRENT ECONOMIC CLIMATE. DISPLAY MODELS IN AIRPORTS, MALLS OR OTHER HIGH TRAFFIC AREAS. FORM ALLIANCES WITH COMPANIES LIKE HERTZ, BUDGET OR ENTERPRIS E TO GIVE PEOPLE THE OPPORTUNITY TO DRIVE THE CAR AND EXPERIENCE THE DIFFERENCE WHICH MAY INFLUENCE CONSUMERS TO BUY FOR EVER DAY USE. PLACE: THE PRODUCT IS BEEN DISPLAYED IN PLACES WERE CUSTOMERS LIVE AND WORK. OPEN MORE DEALERSHIPS AROUND THE CITY IN THE MODERATE INCOME NEIGHBORHOODS. ———————– [pic]