Transcript Slide 1

THE MARKETING PLAN
Problem Statement:
• American economy is in a recession
•Population is focused on basic survival
needs
•Our demographic want money to spend on
other luxuries
•There are many hybrids and fuel efficient
cars that compete with the Smart car
•The car will need to differentiate itself
•No direct competition
THE MARKETING PLAN
Problem Statement Cont’d
1. Doesn’t work well in extreme weather
2. the USA lifestyle doesn’t accept it since
large pick up trucks and SUV’s are
popular
•Warm, southern states
•All the features and the prestige that come
along with the low price tag
THE MARKETING PLAN
Goals:
The specific goal we want to achieve is to:
Sell 20,000 Smart cars
• If the goal is met by the end of the year =
successful marketing strategy
• If the goal is not met = strategy needs reevaluation.
• Over 10,000 cars sold in Canada since 2004
• Over 30,000 orders have been made to date
• Cars will find popularity in USA, environment and
economic issues solved
THE MARKETING PLAN
Marketing and Advertising Roll-out Timeline:
YEAR 2010
January- March 2010: Events and car shows,
along with test drives and raffles
April-May: Celebrity endorsements (paparazzi)
Oprah, Ellen and Wheel of Fortune
Sports games
June- July: Forbes and Time
Celebrities
The news will feature Smart car commercials
August: Product is released!!
THE MARKETING PLAN
Measures of Success:
• Bring awareness to product before it’s sold
1.All Americans can recognize the Smart car
2.Mercedes-Benz is behind Smart
• Cars are very easily identified
• Consumers need to be informed and
educated
• By August, goal is 4,500 pre-orders
MARKETING ENVIRONMENT
USA vs. Europe
•The USA and Europe are different creating two separate
markets
•In America – importance on material wealth, and status
symbols
•Increasing sales of SUVs and light trucks
•Role of American media – more you consume, the
happier you will be
MARKETING ENVIRONMENT
USA vs. Europe Cont’d
•Europeans focus more on food, clothing, enjoying life;
NOT buying big vehicles
•European culture more accepting of micro-compact cars
• Smart USA will evolve the American car market
MARKETING ENVIRONMENT
Social Considerations
•Why would families purchase such a small car?
•Attitudes towards micro-compact cars
•Can the Smart manage everyday activities?
•Is the population willing to change their consumer
attitude and behaviors?
•If Smart does not incorporate the latest technology
why would I invest in one?
MARKETING ENVIRONMENT
Cultural Differences
•Smart’s marketing will get around any cultural
differences
•Can’t change the culture, and product already
manufactured = change the features advertised
•Different markets CAN find the Smart appealing
•In USA – explain benefits of a micro-compact, give
Smart celebrity status
•Cultural differences may not let Smart speak for itself,
therefore marketing will associate familiar images
MARKETING ENVIRONMENT
Opportunities & Trends
•US economy – all effects of a recession are present
•Unemployment, losing homes, stock market
crashed, savings lost, interest rates low
•Smart will sell cars where other manufacturers cannot
•No better time for Smart to capitalize
•Offers an economically sound choice that maintains
style
•Trends -
SUVs and light trucks are top sellers but
times are changing
Foreign car manufacturers outsell those made
domestically; Smart fits – backed by German
company, and produced in France
MARKETING ENVIRONMENT
Product Lifecycle
•Introduced in USA in early 2008
– Introduction phase
•Smart is being promoted to
create awareness
•Few competitors
•Emphasize the great features
that are selling points
•Inform the public, but keep the
target market in mind
COMPETITION & PRICING
Vehicle Positioning
• “All New Micro-car Segment”
–Never existed in North America until
Smart
• No direct competition
–Chance of Price Skimming
COMPETITION & PRICING
Pricing Smart
• Approx. Selling Price :
Around $12,000
– Small Car
• No need for a BIG ENGINE
• Less materials used
– Expensive?
• Unique Styling
• Less Fuel Consumption
• Safety
• Still from Mercedes-Benz!
COMPETITION & PRICING
Alternative Vehicles
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Dodge Caliber ($15,862)
Ford Fiesta (avail. in 2010, around $12,000 est.)
Ford Focus ($14,995)
Volvo C30 ($23,800)
Chevrolet Aveo (same as Pontiac G3 Wave,
$12,625)
Saturn Astra ($16,495)
Audi A3 ($26,920)
Honda Fit ($14,750)
Hyundai Accent ($9,970)
All prices are MSRP in USD
COMPETITION & PRICING
Alternative Vehicles Cont’d
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Kia Rio ($12, 145)
Mazda Mazda3 ($15,360)
Nissan Versa ($9,990)
Scion xD ($15,320)
Subaru Impreza ($17,495)
Suzuki SX4 ($13,299)
Toyota Yaris ($12,205)
Volkswagen Rabbit ($16,300)
VW New Beetle ($18,290)
All prices are MSRP in USD
PRODUCT POSITIONING
Features
Performance:
Engine
– 3-cylinder
– All aluminum design
– Impressive technical data
– 12-valve engine
– 999 cc
– 70 hp, at 5,800 rpm
PRODUCT POSITIONING
Features Cont’d
Transmission
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5-speed automatic
Manual shift mode
Steering wheel gearshift (shift paddles)
Gearshift lever
Technical Data
• Max speed: 145 km/h
• Acceleration 0-100km/h: 13.3sec
• Fuel economy:
• City estimate: 5.9l/100km
• Highway estimate: 4.8l/100km
• Combined estimate: 5.4l/100km
PRODUCT POSITIONING
Features Cont’d
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Length: 2.695m
Width: 1.559m
Height: 1.542m
Turning Circle: 8.75m
Permissible total weight: 1,050 kg
Fuel tank capacity: 33 litres (5-litre reserve)
Safety
• Active Safety: electronic stability program
esp® , anti-lock breaking system
PRODUCT POSITIONING
Features Cont’d
• Passive Safety: Tridion safety cell, crash
boxes, sandwich-type construction, airbags
Convenience:
• Drive-lock
function
• Automatic hill start assist
• Adjustable fold-down passenger seat backrest
PRODUCT POSITIONING
Innovations and Differences
• Unique new car design
– Smart Product Concept
• New distribution concept
– Smart Distribution Concept
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Inexpensive to run/maintain
City Driving: 46.3 mpg
Highway Driving: 69.8 mpg
Compact size
PRODUCT POSITIONING
Branding the Smart
This is what we want Smart to mean to our consumers:
• Reliable
• Trustworthy
• A quality car
• Unlike any other car in the market
• Ideal car for couples
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Whose children have moved out
Are looking to save money for after retirement
Want to travel the world
Want to spend money on their own personal enjoyment
• Smart gets the benefit of being backed by the prestige of
Mercedes, but still has its own identity and image
PRODUCT POSITIONING
The Smart Image
Why Smart is Better Than The Rest:
• A car that is more than rational
• Head-turning
• Unique
• Stylish, cool, enticing
• Economical, loaded with safety features,
environmentally friendly
• A lifestyle car
• Shows individuality
PRODUCT POSITIONING
The Smart Image Cont’d
How we will communicate the image:
• What we advertise in, represents the image of the smart
car
• Advertisements appeal to the target market
• Using an offensive method to differentiate the smart car
from its competition
• By focusing on the car’s strengths
– Gas mileage
– Unique design
– Compact size
PRODUCT POSITIONING
Smart Car Critics
Safety
• Is the Smart Car really safe on roads in the US?
• Compared to other compact vehicles on the road, the
Smart Car has extremely high safety rating
– Tridion safety cell
Price
• The Smart Car is relatively expensive compared to other
compact vehicles, why would I choose it over the
competition?
• The Smart Car not only offers exceptional gas mileage,
its unique design differentiates it from all other
competition.
– Head-turning
– Backed by Mercedes
PRODUCT POSITIONING
Positioning Graph
Uniqueness
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Fuel
Economy
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Legend
1.Smart Car
2.Toyota Yaris
3.Honda Fit
4.Volvo c30
5.Subaru Impreza
6.Ford Focus
7.Kia Rio
7.
CONSUMER PROFILE
Smart Car Demographics
Quantcast poll of smart car demographics
show:
• Married couples mid 50’s
• No Kids At Home
CONSUMER PROFILE
Demographics Cont’d
•$60,000- $100,000 salary
• No post secondary
education
CONSUMER PROFILE
Who is are target?
•The baby boomers and older generations
Characteristic of Our Target Market would be:
•50 years old or older
•Retired or Retiring
CONSUMER PROFILE
Needs and Wants
•Older aged people seeking more financial
freedom
• Extra cash for seeing the world (vacations)
• Stress-free and relaxing setting
• Reliability
• Saving money at the pumps
•A low priced luxury vehicle
CONSUMER PROFILE
Region and Location
• Extremely essential to brand and sell in Urban Centres
• High Populated regions and locations will be essential to bringing Smart
sales
• Research has been done and proves that Smart Cars would be successful
In Urban regions that contains a high population
• These regions need to be highly populated because then there is an
expandable market for us at Smart to play with
• Eastern Atlantic seaboard, the southern states and warm climate areas
• All regions with an older demographic- retirees or people getting ready for
retirement
Locations:
CONSUMER PROFILE
Who is Buying Smart Cars?
Why Are They Buying Smart?
• Roughly we see that the people buying Smart Car’s live
in areas that have a high population and Urban centres
• The major characteristics of buyer of smart cars
consists of:
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Older married couples
50 years old or older
No Kids at home / No kids
Retirees or people getting ready for retirement
Salary ranging from $60,000 to $100,000
Multicultural customer base
No post secondary education
CONSUMER PROFILE
Who and Why Cont’d
• These kinds of people are buying this car
because:
• It is small, eco-friendly
• Improved tremendously with cutting c02
emissions by 9% and the fuel economy 29%
better.
• Extra money in there pocket for the future travel
and activities to see the world
• Reliable, safe way to get around hassle free
• Mercedes Benz service.
• Made with high quality
CONSUMER PROFILE
Customer Needs
•Reliable investment
•Less stress
•More enjoyment of life
•More time for personal enjoyment
•Save money for extra cash in pocket
•High mileage with less visits to pumps
•Low cost fill ups (Smart Cars $30.00 that’s it!)
•More cash= more time for leisure = in less
stress and personal enjoyment
• Handling – Power steering
• Transmission - Manual/Automatic
• Tektronix shifting/paddle shifting
• AC/Heater- Climate control
• Great fuel economy
•Bike Racks
• Convertible
• Radio AM/FM CD/Mp3 Aux Jack
• Leather Seats/ Cloth Seats
• Power Windows and Locks
• Heated Seats
CONSUMER PROFILE
The Buying Process
Need Recognition and Problem Awareness:
•They need a car that is inexpensive to manage and will fit
their lifestyle, but will keep a stylish image
•There is no car on the market that fully achieves this
need, so it’s Smart’s opportunity to move in
Information Search:
•The consumers will be able to visit dealerships and
websites to find out more about the car that they desire
CONSUMER PROFILE
The Buying Process Cont’d
Evaluation of Alternatives:
•Consumers will now be able weigh the pros and cons of each
alternative
•The features and gas efficiency will be considered when
choosing the specific model
Purchase:
•The actual decision is made and the consumers buy the Smart
car!
Post- Purchase Evaluation:
•The car is reviewed and the gas efficiency comes into play as
people save money
•The features are up to their expectations and they enjoy the
car!
CONSUMER PROFILE
Promotional Stress Points
A Smart investment heading into retirement
•Compact – Easy to handle and park
•Reliable – A solid fuel economy that will leave heading to
the pumps much less for less
•Quality- Made by Mercedes Benz small luxury at its finest
•Stylish- The Smart Car is unique itself with high quality interior
and exterior this car is an eye catcher!
•Versatile- Smooth highway travel to cruising the city streets
and getting an easy parking spot
•Eco-movement- Eco-friendly technology to help reduce c02
emissions
How our plan will leave a lasting
impression
• The car sells itself by its unique presence and
different approach
• Increase awareness by adhering to our
marketing plan and using effective
promotional techniques
• Increase sales by convincing the target
market that this car is crucial to their lifestyle
• If they want these specific features, they must
buy a smart car because it stands alone in
the market
How our plan will embrace the
opportunities of the marketplace
SITUATION:
• The American economy is in a recession,
meaning that people are not willing to spend
large amounts of money on over-priced large
vehicles
SOLUTION:
• The Smart car is inexpensive to run because
of its fuel efficiency and low maintenance
costs
How our plan addresses the problems
and focus on the strengths of the
vehicle
Problems:
• consumers may say that the price of the car is too
high for the size
• the smart car is not as safe in comparison to other
vehicles on the road
Addressing Problems and Focusing on
Strengths Cont’d
Addressing Problems:
• although the price is higher
– it has the prestige of being backed by Mercedes
– it is uniquely designed and of the utmost quality
– quality not quantity
• reassuring the consumers that in comparison to
other small vehicles, the smart car is very safe
– front impact crash rating is 4 stars
– drivers side impact crash rating is 5 stars
(rated by Insurance Institute for Highway Safety)
• strengths of the vehicle are its compact size, the
gas efficiency, its unique style
• advertising focuses on those main points, as they
will appeal to our key demographic market
Decentralized Strategy
Decentralized Strategy we have a specific
demographic target market
• People age 50+
– Who are approaching retirement and want to cut their
costs and save money for personal enjoyment and
leisure activities
– Whose children have moved out of their household
– Who are interested in traveling and adventuring
– Who have worked their whole life and want time to spend
on the road for their personal enjoyment
– They want something unique and stylish that will fit their
lifestyle
Pull Strategy
• Targets the consumer directly
• Advertising and promotional efforts try to
convince consumers that they need a
product
• Trying to build a demand for the product
• Want to “pull” consumers into stores to look
for the brand
Where and How Will Smarts Be
Sold?
• Penske Automotive Group, Inc. is the sole
distributor
• 74 smart dealerships across the US
Examples:
– Smart Centre, Beverly Hills
– Smart Centre, Jacksonville
– Smart Centre, Palm Beach
• Financing or leasing
Product Lifecycle
• the product is promoted to create
awareness
• product has few competitors
• skimming price strategy
Web Presence
www.smartusa.com
• Link from this website titled ‘Year of Living
Smart’
– www.smartusa.com/yearoflivingsmart
• Website appealing to target market
• Website tagline: With age comes wisdom,
BUY SMART
• If you order your smart online, you have
the chance to win a free time share in
Florida
smart fortwo coupe
Starting at $14,990
smart fortwo cabriolet
Starting at $21,250
BRABUS coupe
Starting at $21,900
BRABUS cabriolet
Starting at $24,900
Guerilla Tactics
•Race across the US to Florida
•Smart stacks
•Smarts at golf courses
•Smarts landing in a town near you (parachutes)
Leaving a Lasting Impression
Problem:
• US economy is in a recession
• People in our demographic want more money to spend on other
luxuries instead of buying new and expensive cars
Solution:
• The Smart car is inexpensive to run because of its fuel efficiency
and low maintenance costs thus allowing people to save money for
personal enjoyment
Goal:
• Sell 20,000 smart cars in the US in the year 2010
Opportunities:
• During the recession, Smart Car offers an economically sound
choice that maintains style
Lasting Impression Cont’d
What makes it better than the competition:
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Unique car design
Compact size
Inexpensive to run and maintain
Prestige of being backed by Mercedes
Branding:
• Quality car, unlike any other in the market
• A lifestyle car, shows individuality
Target Market:
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Older married couples 50+ years old
No kids at home
Retirees / people close to retirement
Looking to save money on gas
Lasting Impression Cont’d
Promotions / Marketing:
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Car shows
Test drives
Raffles
Giveaways
Time share contests
Ads in newspapers, magazines, television