Bbb Unit2 Marketing Plan Exemplar

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 re-evaluation.

• 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 FortuneSports gamesJune- July: Forbes and TimeCelebrities The news will feature Smart car commercialsAugust: Product is released!!

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

THE MARKETING PLAN

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

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

MARKETING ENVIRONMENT

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• 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

All prices are MSRP in USD

• 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)

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’dTransmission• 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• 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

• Inexpensive to run/maintain• City Driving: 46.3 mpg• Highway Driving: 69.8 mpg• Compact size

PRODUCT POSITIONING

Branding the SmartThis 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

• 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 CriticsSafety• 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

FuelEconomy

Legend1.Smart Car2.Toyota Yaris3.Honda Fit4.Volvo c305.Subaru Impreza6.Ford Focus7.Kia Rio

1.

2.3.

4.

5.

6.

7.

CONSUMER PROFILE

Quantcast poll of smart car demographics show:

• Married couples mid 50’s

• No Kids At Home

Smart Car Demographics

CONSUMER PROFILE

Demographics Cont’d

•$60,000- $100,000 salary

• No post secondary education

CONSUMER PROFILE

•The baby boomers and older generations

Characteristic of Our Target Market would be:

•50 years old or older

•Retired or Retiring

Who is are target?

CONSUMER PROFILE

•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

Needs and Wants

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?Who is Buying Smart Cars?Why Are They Buying Smart?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:

• 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’dWho 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 NeedsCustomer 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 ProcessThe 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’dThe Buying Process Cont’dEvaluation 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 PointsPromotional Stress PointsA 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 coupeStarting at $14,990

smart fortwo cabrioletStarting at $21,250

BRABUS coupeStarting at $21,900

BRABUS cabrioletStarting 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:• 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:• 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:• Car shows• Test drives• Raffles• Giveaways• Time share contests• Ads in newspapers, magazines, television