Table of Contents Executive Summary 3 1. Situational Analysis 4 1.1 SWOT Analysis 4 1.2 Industry Analysis 4 1.3 Competitor Analysis 4 1.4 Consumer Analysis 5 2. Opportunity Identification 6 3. Marketing Objectives 7 4. Marketing Strategies 8 4.1 Target Segments 8 4.2 Segment Selection 8 4.3 Positioning 8 5. Marketing Mix Decisions 9 5.1 Product 9 5.2 Pricing 9 5.3 Distribution 9 5.4 Communications 9 6. Implementation and Evaluation 11 6.1 Implementation 11 6.2 Evaluation 11 7. Cost-Benefit Analysis 12 References 13 Appendix 14
Executive Summary
The Nissan Leaf is the first to enter the all-electric vehicle market. However, due to the current recession and
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As a 100% electric car, Leaf’s direct competitors are hybrid and electric cars. Currently, hybrid vehicles dominate the alternative fuel vehicle market. The Toyota Prius is the most successful hybrid car by sales to date. According to IEA, types and number of alternative fuel vehicles available to consumers will increase significantly from 2011 to 2015 (Clark, 2011).
With sales of 20 000 units, Nissan Leaf is the world’s top selling electric car in 2011. Mitsubishi i-MiEV ranks second, with sales of approximately 17,000 units. Other auto manufacturers are also planning to release new electric cars in the near future.
Table #1: Direct competition from other electric cars
Model | Manufacturer | Launch Time in US | Leaf | Nissan | 2011 | Volt | GM | 2011 | i-MiEV | Mitsubishi | 2011 | Focus EV | Ford | 2012 | Smart Fourtwo EV | Chrysler | 2012 | Fit EV | Honda | 2012 | Rav4 EV | Toyota | 2012 |
1.4 Consumer Analysis
When buying a car, 76.5% of consumers in United States say that environmental friendliness and carbon footprint have at least a medium amount of influence on them (Figure 1). In 2011, purchasing an electric car or hybrid car became more frequent among consumers. The percentage jumped from 4.1% in 2009 to 8.9%, and is forecasted to be 17.2% in 2013 (Figure 2). The increasing willingness to make green choices is expanding the market of electric vehicles. As the first
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.
The United States of America is one of the biggest automobile markets in the world. This trend has also created awareness for environmentalist to bring attention to rising level of pollution and emission within the cities and metropolis. As response, the U.S. Government is encouraging the automobile manufacturers to produce clean and renewable alternative vehicles that will drastically reduce pollution and emission. Subsequently, the automobile industry has witnessed a gradual introduction of environmental friendly vehicles that use clean and renewable energy to encourage less pollution and safer environment. The manufactures of these vehicles have introduced into the market three categories of electric passenger car
Electric cars impose a serious risk on the oil and gas industry. The extent by which this market succeeds reciprocally defines the extent by which the oil and gas industry deteriorates. As with all forms of technology, there comes a point in time where one form of technology no longer appears to be useful in comparison with an applicable alternative. The current inhibitors of electric car adoption are the price of batteries and vehicle performance. With that being said, battery prices dropped over 30% just last year and are expected to continue dropping. Projections estimate that 35% of cars will have a plug by 20401. However, even in the next few years, companies such as Tesla, Chevrolet, and Nissan plan to offer electric cars on the market at an affordable price. The question then becomes: when the oil and gas market will be displaced by the electric market? If both markets produce a vehicle of similar price and quality, then it is reasonable to assume that a customer will choose the option that is more eco-friendly. The moral issue still remains: should the vehicles of tomorrow be fueled by gasoline or are viable options readily available and acceptable?
Many people buy hybrid cars because they have been told that hybrids are much more eco-friendly than any other vehicles out on the market and they feel proud for supporting the Mother Nature. Surprisingly, it is a fact that a recent report announced that the Toyota Prius has a higher life time energy cost than Hummer H1 SUV (kentlaw.edu). It also states, “There are, however, environmental costs to mining and smelting (in Canada) 1,000 tons a year of zinc for the battery-powered second motor, and the shipping of the zinc 10,000 miles - trailing a cloud of carbon - to Wales for refining and then to China for turning it into the component that goes to a battery factory in Japan” (kentlaw.edu). In other words, the hybrids emit less carbon dioxide and other gases but it releases far more energies and toxic gases into atmosphere at production and disposal stage.
One driving force of change is technology. The automobile industry is constantly focusing on technology in order to make themselves and their cars better. They constantly compete to be the “first” one to have the newest and best idea. One of these ideas is an electric vehicle. GM, Ford, and Toyota all have electric automobiles. GM has the Chevy Volt. Volt One of Ford’s electric cars is the Electric Ranger. Ranger Toyota had the Rav4 EV, but due to discouraging sales it stopped production. “Toyota remains committed to developing an "Eco Vehicle," one that will have a minimal impact on the environment.” Rav4 One purpose of the electric automobiles is to have the ability to drive to work using only electricity. Currently during longer trips you would have to use a combination of electric and gasoline power. Electric Car
The movement to electric vehicles has been a slow process. It has always been dictated by consumer desires, price, and practicality. There are predictions that the electric car market will reach 7% of total car sales by 2020, and there are some who think the market will be much bigger by then. We’ll see!
Electric vehicles should be big a consideration for the world. Our planet is suffering a lot due to climate change. It’s caused by burning fossil fuel and releasing its gas into the air and most cars today run on fossil fuel and it’s damaging our planet. Electric cars are clean energy vehicles, meaning it doesn’t damage the world. This is the main reason while society needs to consider manufacturing more electric cars and make them affordable and more well known. If a big part of the world’s population used electric cars instead of cars that runs of gas, it would be very beneficial to the world. But even with this huge benefit that
Currently, the market for electric vehicles are in its early stages. However, with the growing environmental awareness more people are becoming more accepting and fond of the idea of electric cars. Presently, less than 2% of households have an electric powered vehicle but it is projected that by the year 2045, electric vehicles will account for 35% of the automotive market share.
Nissan's business strategy of EVs is differentiation. Because of the feature of Nissan's product is different from most of products in other vehicle company. It's a new technology which is all electric
The Nissan Leaf is a Zero-Emission electric vehicle manufactured by Nissan and was launched in Japan, the USA and Europe on August 2, 2009, (Mulcahy, 2013) though it has been a proponent of green technologies since after the Second World War and the oil price fluctuations. However, until 2012, only seven, of their more than 20 introduced concepts, went into production and only one, Nissan Leaf was successful. The car is sold in over 15 countries and has received many awards for excellence and Nissan claims that the car is over 90% recyclable. (Dekhordi, Yonekura and Kohnepushi, 2013)
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)
After the success of electric cars in the West, manufacturers from around the globe are entering into this business. With more players in the market, the competition is expected to be intense.
This year more than a million electric cars were sold. It is on 60% more than last year. (Lorraine Chow). And half of them were bought by China. (Frank Holmes). But regardless of all the sales, electric cars are still only 0,2% of all cars in the world. (Megan Geuss). There are more than 17,000 charging stations in US, about 150 of which are in Iowa. (Electric Vehicle Charging Station Locations) And governments want Electric cars industry to grow. The most popular Electric cars brand received almost 200 million dollars from State Department and 1.3 billion dollars from Nevada State to build a massive battery factory (Harry
Across the world and for years governments have promoted the usage, production, and purchasing of electric vehicles. The first big push for electric vehicles was in 1998 in the state of California with the mandate that stated, “ a small percentage of vehicles sold after 2000 [ must have] zero emissions”( Baumgartner et Gross 35). This pushed many small and large vehicle companies to begin to look towards producing hybrid and electric vehicles. Another big push for electric vehicles in the United States was in 2005 when soon to be President Barack Obama advocated that” the United States [would] have one million electric vehicles on the road by 2015” (Barkenbus 56). Despite this goal never being met, without a doubt it promoted and furthered electric vehicles. Outside of North America in Europe, electric vehicle incentive is also prominent. Writing in October of 2000, Jack Barkenbus states “France is likely to be at the forefront of advocating electrical vehicle usage because of [their] nuclear power” (Baumgartner et Gross 35). This prediction was correct France now offers recharging services for electric vehicle owners. Another European country offering an incentive for purchasing electric vehicles is Switzerland. “Switzerland rewards individuals who take part in [electric vehicle promotion] by offering direct subsidies when buying a car”(Baumgartner et Gross 36). All of this incentive and promotion has been worthwhile, writing in 2017 Jack Barkenbus states that, “thirty percent of all new cars sold in the last quarter of
EVs rely entirely on electricity stored inside of several large batteries for propulsion and to operate all of the components inside the vehicle. Moreover, electric cars produce minimal road noise, are extremely smooth, and provide extraordinary amounts of torque when it is needed (Berman). Also, electric cars can be recharged anywhere there are electric outlets such as in homes and apartments, whereas all gas vehicles have to travel to a filling station (Berman). Additionally, an electric vehicle is generally cheaper to operate than a petrol car since electricity is cheaper to obtain than gasoline in the vast majority of the world (Berman). Another reason to buy an electric car could be for their stunning looks. Electric cars made by Tesla and Fisker are some the most attractive cars ever created, and they contain technology that is light years beyond what is found in modern gas cars. In accordance with styling and equipment, electric cars are also exhilaratingly quick. A new sport has emerged similar to Formula One called Formula E where lightweight, powerful electric race cars speed around circuits created in major cities like London, Paris, and Beijing (Spurgeon). The cars are capable of reaching speeds of up to 140 miles per hour with the acceleration being delivered instantly upon touching the throttle (Spurgeon). Electric cars, whether