Marketing - Hybrid Cars

The U.S. electric passenger car industry in 2011 was described as being in its infancy, because it is still a new concept to buyers. However there are signs of growth from 2011-2015. Buyers do not consider the car because of price, travel range and vehicle size, along with other secondary concerns.

In regards to the social changes the automobile industry is receiving from heavy feedback from their consumers. There is a need for automobile manufactures and engineers to create vehicles that environmentally friendly and conscious of their carbon footprint. The days of making huge gas guzzlers and air pollutant vehicles are long gone. In response to this social change outcry manufactures have stepped up to the plate, creating more hybrid and electric vehicles. For Autozone this could possible be unsettling, due to the fact that the technology that goes into creating and maintaining vehicles such as these parts will not be so easily accessed.

A number of hybrid vehicles have been built and tested since 1980. Some of these vehicles have impressed analysts with their performance and low levels of exhaust and petroleum consumption. Interest in hybrid vehicles jumped in late 1993 with the announcement of funding for

Ecostar is a new to market hybrid car which provides an excellent alternative to other hybrid cars by offering a lower price point without compromising design and function. Ecostar has be designed to attract 16 to 40 year olds who live in rural areas that want a lower cost to own vehicle that provides excellent gas mileage and reliability. This paper will analysis a specific customer profile for which Ecostar is targeting and why. The customer buying process will be discussed and how Ecostar can use this process to their advantage in targeting there market.

Problem Statement: Disruptors of domestic and international competitors are expanding upon the alternative fuel vehicle market and can offer a wider variety of products ranging from hybrid, plug-in hybrid, and fully electric vehicles due to the access to more resources available to them.

Contracts and agreement for these vehicles are tailored to specific organization’s need. For example, Avis Budget Group, Inc., “acquires many of its rental vehicles pursuant to repurchase and guaranteed depreciation programs established by automobile manufacturers” (Avis, 2015). Nighthawk packages should offer incentive such as vehicle repurchasing and replacement, extended powertrain guarantees, vehicle customization, and quantity discount for large buyers. Repurchase rental cars will reduce long-term maintenance and liability cost and increase bottom line for the rental companies. Nighthawk will benefit by selling more Ecostar with fairly steady and consistent buyers. It will also benefit from resale of certified pre-owned Ecostar while gaining more individual customers. Finally, partnership with taxi companies (such as the yellow taxi, New York City) in major cities across the United States. According to 2014 Taxicab Fact Book, there are 13,437 medallions—yellow taxi operator license in New York City alone with 60% of the vehicles are of hybrid-electric type and average life of 3.3 years and 2.6 miles per trip (Taxi & Limousine Commission, 2015, p.1). The partnership will provide avenue for Nighthawk to acquire reliable and sustainable buyers that will contribute to achieving the goal of becoming the number one selling vehicle. Nighthawk should use the same strategy for rental companies and modify it fit each taxi company’s requirement both in product and in

III. When you think of a hybrid vehicle, you may find yourself thinking Toyota Prius.

The natural environment such as our main natural resource for fueling our vehicles, oil, has aided in the increased sales of the Toyota Prius. Since gas prices increased in 2008, a fuel efficient car such as the Prius is economically and environmentally friendly. Toyota created the hybrid that “combines a gas engine with an electric motor” using less gas than the usual sedan. (Kotler & Armstrong, Principles of Marketing, 2010)

In order for Tesla Motors to keep growing now and into the future, it is going to be important to expand their target market to reach more consumers. Expanding the target market to include generation Y (mid-20s to early 40s, middle class working adult), Tesla would be able to utilize their facility, while increasing production. This target market will be pinpointing the young professionals that are looking for an entry level luxury car. We are going to segment the market for our new targets in three categories: eco-friendly consumers, tech savvy and entry level luxury cars.

The situational analysis is done to analyze the different environmental forces that can affect the sales and acceptability of the new product. In the later sections, the marketing objectives, the target segment for the new car, action programs, and marketing mix (product, price, promotion, and place) have been discussed in a view to set a roadmap for the company on how it can better market and sell its product to the most potential segment of the consumers. The marketing budget has been presented to give an estimate of the expenditures and expected revenues for the year. Finally, the ethical considerations for the marketing plan have been discussed which are also

Makers of the hybrid cars need to evaluate the prices of other cars that are comparable and base its prices upon those results. Also, creating a bigger selection of hybrids to choose from would also be a plus. Therefore, if there is a big selection of these cars,

Consumers are not yet fully convinced by hybrid and electric technology, which means that there are not many firms producing and developing this technology. This means that there is not very much competition in this market sector. Since Honda is a company who does produce and develop Hybrid technology, they have a much better opportunity to make money here. Since they will see little competition, they can attract a larger consumer base. In the short run, Honda may see a larger market share in this sector but as more and more firms decide to move to hybrid technology, more competition will arise.

Lotus Car Rental (LCR) is on the move to making a very wise decision. LCR has successfully operated its business for a number of years. Today’s competition among Budget Car Rental, Avis, and Enterprise does not measure up to the services and advancement that LCR has displayed. With consumers making more advances toward environmentally friendly cars, alternative fuels for vehicles are a better choice. The assessment prepared for the Chief Financial Officer will display four primary components which will emphasize solid reasons for this decision to proceed. The components discussed are the pros and cons of alternative fueled vehicles, the availability of alternative fueled vehicles, and the

Figures of different hybrid models will also be included as well as a table comparing the costs of various hybrids to traditionally fuelled cars. This will help the audience get a sense of the price ranges for hybrid vehicles before they go out and decide to buy one. Finally, a table dealing with the performance specs of hybrids will be added to emphasize certain limitations with these models.

The main component of a car would be the power that actually puts the car in motion. To be solely dependent on one power source is not a very good idea as it is not eco-friendly and at the same time not suitable. By 2040, half of all the new cars being sold will be hybrids, according to Exxon Mobile. Hybrid Cars are the cars that uses more than one power sources to run the car. It is usually referred to the Hybrid Electric Vehicles (HEVs) which has both the internal combustion engine and electric motors that generates power. One of the main problem with these hybrid cars is that their batteries are extremely heavy and takes up a large amount of space in the car. The concept of Hybrid cars can be a good thing to the environment, but definitely not for the car manufacturer or the customer. Hybrid cars have a convincing amount of weight due to their batteries, even with the existence of lithium-ion batteries. As a solution, Energy Storing Body Panels are used.