Marketing – Hybrid Cars
Essay Preview: Marketing – Hybrid Cars
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Introduction
Team A presents our comprehensive assignment, this paper encompasses a variety of factors related to ECO-Specialties, a leasing firm that specializes in hybrid and alternative fuel vehicles We will examine the following area in this paper:
a. Identify product/service
b. Market research
c. Market SWOTT analysis
d. Marketing mix (4 Ps)
e. Implementation of the marketing plan
f. Monitor marketing plan
g. Control and adjust
h. Critique and make recommendations of the marketing plan
The team will demonstrate that the popularity of these vehicles present a strong opportunity for a leasing company such as ECO-Specialties to enter the market.
Identify product/service
ECO -Specialties is a leasing company that specializes in hybrid and alternative fuel vehicles. The company will open its first location in Los Angeles California for a variety of factors. Los Angeles has a large segment of environmentally active individuals and is well as being known for a having a great deal of traffic and smog. Additionally, Los Angeles has higher than average gasoline prices relative to the rest of the country. Hybrid vehicles are attractive because of the fuel efficiency and low level of pollution they create. High fuel costs and environmental concerns have created the ideal set of conditions for strengthening hybrid sales. . Hybrid cars typically run off a rechargeable battery, an electric motor, and a gasoline engine. This arrangement allows the vehicle to operate efficiently in a wide range of driving conditions. To become successful ECO-Specialties must emphasize their differentiation. Differentiation means that the marketing mix is distinct from and better than what is available from the competitor (Perreault & McCarthy, 2005).Hybrid vehicles are already distinct from conventional vehicles. Eco-Specialties will be distinct is by leasing only Hybrid vehicles and will be expert in the distinct advantages of each manufacturers hybrid vehicles. Customers can expect unbiased and objective information pertaining to each hybrid model which in contrast to a car dealer that has limited product offering.
Market research
Marketing research is valuable to the success of any marketing strategy, regardless of the product being offered. ECO-Specialties have chosen research areas that bring in quality data on hybrid vehicle trends in order to produce a quality marketing strategy. The information is listed below:
Sales trends
Hybrid future
Customer profile
Regional breakdown
Sales Trends
Since hybrids were first introduced in the American market, annual sales have steadily increased. In six years a total of 354,625 hybrids have been sold, only 9,350 were sold in the first year yet sales have nearly doubled in each subsequent year.
Information retrieved from hybridcars.com
Hybrid Future
Research into future projections of hybrid vehicles was vital to the marketing strategy to ensure the hybrid vehicle is not simply the latest “craze”. With that in mind ECO-Specialties researched future sales projections and found the following: (hybridcars.com)
Hybrid vehicles will account for 10% of the 2 million midsize vehicles sold annually in the U.S. by 2006.
At least 20 new hybrid models will appear in the market in 2007 with a projected total sales projection of over 400,000.
In 2008 consumers will have a choice of 35 hybrid vehicle models, with sales projected at 1.2 million.
By the year 2010, 5 to 6% of all cars sold in the U.S. will be hybrids.
There will be 50 hybrid models for consumers to choose from in the year 2012.
The data above indicates a strong probability that hybrid vehicles will produce strong and sustainable growth.
Customer Profile & Regional Breakdown
Finally, ECO-Specialties had to obtain a clear understanding of the hybrid consumer segmentation for their marketing strategy. Through research of prior or current customer profiles, ECO-Specialties will be able to design a strategy that will reach additional customers. The first strategy was to obtain a hybrid customer profile. Hybrid owners:
Tend to have a higher income than the average car buyer.
Are more likely to be female.
Are a few years older than the average car buyer, closer to 50 rather than the average age of 40.
Drive fewer miles on average
Plan to keep vehicle longer than average person
Are willing to pay more for an environmentally friendly product.
Expect fuel prices to increase.
Reference: hybridcars.com
Additionally, ECO-Specialties acquired a regional breakdown of hybrid vehicle sales. Vehicle registration information is provided for the top five selling states in 2004 and is as follows:
California – 25,021 registrations
Virginia – 5,613 registrations
Washington – 3441 registrations
Florida – 3,272 registrations
Maryland – 3,238 registrations
Reference: hybridcars.com
Market SWOTT Analysis
Strengths
New to the market are different varieties of hybrid cars, which serve the same purposes, saving money on gas and reduce emissions. Besides the dual power sources, hybrids are more economical because they are lighter and more aerodynamic than many other cars. Additionally, the hybrids tires create half the drag of regular cars because they are stiffer and inflated to a higher