The petrol prices are increasing and at the same time, the consumers are becoming environmentally friendly so that they can do their good to the environment. The cars on the road are one of the reasons due to which environment is getting affected the most. It is difficult for the users to be dependent on public transport and that is one of the reasons due to which they own a car even when they think that it’s expensive. Electric car is one of the ideas that many car companies is trying to implement but it is not successfully accepted by the target audience.
A car named EnBuFriend (Environment and Budget Friendly) so that the customers are motivated to buy this car rather than that of any other car. This car will be marketed so that the target market is aware of the availability of the car. Initially, it may seem to be complicated to reach the target market but this can be achieved with extensive marketing. A marketing plan will be in place so that the target market is motivated to be environmentally friendly and also save the huge money that they are investing in the car and also the petrol (Aggeri 2009).
Setting smart objectives is the only way by which the management can achieve the targets that has been set. If the management is able to set SMART objectives then they can be rest assured that they will be measure the achievements against the goal that has been set. The SMART objectives that have been set by the management of EnBuFriend are as follows: -
In the first year, the management is willing to sell at least 500 cars.
At least 90% of the target market should be aware of the availability of EnBuFriend cars.
The company will come up at least 25 advertisement campaigns so that the target market is aware of the availability of the car (Beaume 2009).
Core competencies are the key strengths of the organization. EnBuFriend will ensure that they invest on their core competencies so that they can survive and be competitive in the organization. Few of the core competencies on which EnBuFriend would like to concentrate on are as follows: -
The organization wants to concentrate on being clean. Being clean would mean that the organization will always try its level best to environmentally friendly.
Innovation would be the key strength of the organization. The organization will innovate continuously so that they can be better than what they are today. The organization will innovate on the basis of market trends and customer needs.
The organization wants to be sure that they are environmentally friendly and hence, they will not deviate from their objective of being environmentally friendly.
Comfort of the driver will be given due importance and hence, the car will be designed keeping the driver’s requirement in mind. In most of the electrical cars, the driver’s comfort is ignored but that will not the case with EnBuFriend.
EnBuFriend will introduce one car in the market but slowly and steadily, they will increase the models so that the customer can buy something that they like rather than that of buying something that is available (Belderbos 2010).
The regular car segment cannot buy EnBuFriend cars. It is the responsibility of the marketing team to need of the customer and undertake segmentation of the market. If the management tries to understand the regular segment then there are very high chances that the customers will not be willing to buy environmentally friendly cars. Few of the segments that would be targeted by EnBuFriend cars are discussed below.
Demographics like age, sex and location will not be used for the purpose of segmentation. If the market is segmented based on the age, sex and location then there are very high chances that the organization will miss out on people who will be actually willing to buy the car. People for EnBuFriend car will be segmented based on the attitude that they hold towards the environment. People who are willing to do their part of good to the environment will be willing to use the car. The management will ensure that the benefits of the environment are well spoken about during the advertisement campaigns so that the customers are motivated to make investments in electric car (Chesbrough 2006).
Males and females who are between the age group of 20 to 70 will be targeted. Below the age of 20, people may not be matured enough to drive cars or make decisions on the kind of car that they would like to drive. Apart from that, after the age of 18, people develop an understanding about the harm that they are creating to the environment and hence, they look for ways by which they can correct it. EnBuFriend is one of the ways by which they can save the environment. Similarly, working professionals try car pooling and other activities so that they can reduce the impact on the environment so they can try this car so that they can be dependent on their private car. People after the age of 50 will be well aware of the change in the environment and hence, they will continuously look for ways to reduce the impact so that they can save something for the next generation.
Lastly, only the developed nations will be targeted. There are very high chances that the developing and under-developed nations may not be financially strong to purchase electric cars. Slowly and steadily, EnBuFriend will try to capture these markets even a cheaper car so that the customers are willing to make investment. Apart from that, the awareness of being environmentally friendly is very low when it comes to developing and under-developed nation. The advertisement campaign will be developed for developed nation so that the campaigns can be in sync with the attitudes and requirements of the people (Chiaroni 2010).
Electrical cars may not be used by everyone and hence, this will be targeted towards people who are tech savvy. EnBuFriend will have plenty of features and that will not be understood and accepted by all the customers. The advertisement campaign will be for tech friendly people only because of the wide range of features that it offers.
People who are concerned about the money that they are spending on the petrol will also be targeted. Running on electricity is one of the features that differentiates this car than that of the other cars and hence, people who are concerned about petrol will also be considered while the advertisement strategy is planned (Ebersberger 2010).
Plenty of market segments have been identified but it is merely impossible for EnBuFriend car to serve all the market segments. Few of the market segments that can be identified and targeted by EnBuFriend are discussed below.
Executives between the age group of 25 to 45 can be targeted by EnBudfriend. People between the age group of 25 to 45 are in executive position and hence, they will look for ways by which they can save their money. EnBuFriend will help the customer to petrol and this can be huge saving. Apart from that, people in this age group don’t prefer to buy car because of the petrol cost associated with it. With the help of EnBuFriend, people with low income can also save money and buy a car.
The car will be initially introduced in developed countries only. The people in developed countries have better understanding of eco-friendly cars and hence, they will opt for these cars. Apart from that, the developed nations governments continuous force their people to stick to norms that can safeguard the environment and hence, they will prefer to buy these kind of cars rather than that of the expensive cars which are available in the market.
Tech-savvy customers will be more than happy to buy EnBuFriend car because of the features that the cat will offer. The car will be very comfortable to the driver because of the features but again the customers should be willing to explore the features. A person who is not very techno-freak will not like the car because things will not be simple as it would be in other cars. There will be plenty of other features as well and these features will not be there in other cars (Enkel 2009).
EnBuFriend Car should be positioned smartly so that the right set of people is motivated to buy the car. If the car is not positioned properly then there are very high chances that the car will be a failure as it will not be liked by anyone. Few of the ways by which the car with be positioned in the market are discussed below.
Be environmentally friendly is one of the core features that is offered by this car so it should reach out to people who are willing to do some good for the environment. The car will be positioned as a car that can contribute to the green initiatives that every individual is taking. If a person is concerned about the environment and if they are undertaking simple small things to reduce the impact of negative things on the environment then they will be able to connect themselves with the positioning.
EnBuFriend car will be positioned as a budget friendly car for the executives. The executives are bothered about the money that they will be spending on the petrol for everyday travel and hence, they can opt for electric car. The electric car can charge their car with electricity or they can charge their car with solar energy. This will ensure that the executives have their personal vehicle to travel around and at the same time, they can be rest assured that they aren’t spending a huge amount of money on petrol (Dyer 2001).
The target audience will be explained that they are spending huge money in maintenance because of the usage of petrol but the executives need not spend much money on maintaining EnBuFriend car. EnBuFriend car is for people who are conscious about the money that they are spending and hence, the management will ensure that they are made aware of the savings. This will motivate them to buy this car.
This car is only for people who are techno freak. This car will ensure that the driver has plenty of features to enjoy the drive. Most of the people have a person that having an electric car would mean that they will have to compromise on the features of luxury car and also the comfort but the users of EnBuFriend can be rest assured that they will not have to suffer. EnBuFriend will have the best of features and the car is designed by way of keeping the driver’s comfort in mind so they can be sure that they will get the best of features at a most affordable price (Dess 2005).
There are various strengths of EnBuFriend so it is the responsibility of the management to understand the strengths and work on it. Few of the strengths of EnBuFriend are as follows: -
EnBuFriend car is cheap to produce and hence, manufacturer can produce cars in huge quality. If an organization is planning to start with the manufacturing of regular cars then it would be expensive but that is not the case with an electric car.
EnBuFriend doesn’t need any maintenance. The users can be rest assured that they aren’t going to spend a part of their fortune in maintaining the electric car that they have purchased.
EnBuFriend is well planned and hence, the mileage that the car can get from charging the car for 2 hours in a day would be sufficient enough for the complete day travel. Apart from that, the user can take the car for a long drive as well if they can charge the car using solar energy.
In the future, when EnBuFriend becomes popular among the users, the production capacity can be increased. The cost of production is low and hence, the management can be rest assured that they can produce more cars to sell more cars.
The research and development of EnBuFriend is better than that of the any other electric car. They will ensure that they are able to understand the requirements of the customers and accordingly innovation is done.
EnBuFriend ensures that they leave spoke for development open rather than that of keeping the development intact. This will allow the customers to modify the car as per their requirement rather than that of sticking to what is readily available (Faems 2010).
There are various weaknesses as well in the organization so the management should understand the weakness and work accordingly so that the organization can improve continuously. Few of the weaknesses which needs to be worked upon by the management of EnBuFriend are as follows: -
The batteries that is installed in the electric car is heavy and hence, they the weight of the car also increases. Installation of small batteries would mean that the capacity of holding power is reduced.
Unlike the petrol and diesel based cars, the capacity of holding electric power reduces in the electric power. If the user uses the electric car extensively then there are possibilities that the capacity of holding power is reduced in a year’s time. After the battery gets old, the user will have to charge the battery for longer.
The dealer network is small and there very high possibilities that none of the dealer will be willing to have this car in their showroom. If this happens then reaching the target audience would be a difficult thing.
Customer’s trust in this segment is already very low because of the previous electric cars that were introduced by other company. Now it will be difficult for EnBuFriend to gain the trust in the electric car segment.
The top of electric car is very low as compared to that of the regular vehicle. This is one of the reasons due to which people reconsider buying this car.
There are plenty of opportunities in the open market for EnBuFriend. It is the responsibility of the management to understand and explore the opportunities so that they can grow rather than that of being stagnant. Few of the opportunities that can be seen by EnBuFriend for their nearby future are as follows: -
The government from different countries will support the Electric car project because every country today is willing to save the planet. EnBuFriend can take help from the home government to sponsor their electric car and this will help them to get easy access to funds required.
The management of EnBuFrined can request the government to give road tax breaks for electric cars. This will ensure that more and more people are motivated to buy electric car because people are will to buy electric car to save money and this cat will save further money.
The battery technology is evolving fast and hence, EnBuFriend can be rest assured that they will be able to produce the best possible battery that can run without being charged for a longer time period.
Not only the government and large organization are trying to go green but also the individuals are willing to do their part of good to the environment. These individuals will buy EnBuFriend because they know that this is green (Francis 2005).
There are various threats associated with EnBuFriend so it is the responsibility of the management to identify them and work on it so that they don’t create an impact on the business. Few of the threats associated with EnBuFriend are as follows: -
EnBuFriend has taken lot of grants from the government and at the same time, they have taken loan from banks. It is the responsibility of the management to ensure that they are able to return back all the money.
BMW, Mercedes and other such big names may enter the electric car market in the near future. If these cars enter the electric car market then there are very high chances that people will opt for these brands rather than that of small upcoming brands because of the brand name that they hold.
Hybrid and diesel technology is evolving faster than anyone can think about. There are very high possibilities that Hybrid cars will be opted by people over the electric car.
Hydrogen powered vehicle is the talk of the town and there are very possibilities that the speed lovers will opt for that rather than that of other cars. Hydrogen technology isn’t creating much impact on the environment and hence, the environment lovers will also love it (Freeman 2007).
Various things in the Micro environment will create an impact on the EnBuFriend. It is the responsibility of the EnBuFriend to understand the various groups so that their request can be well understand. Few of the expectations that the micro environment has from EnBuFriend are discussed below.
Employees play a very crucial role in the organization. It is the responsibility of the management to understand the expectations that they have so that it can be fulfilled. The employees should be give salary as per the market standards and also incentives for the achievement that they do. This will motivate the employee to work better and stay back with the organization for a longer duration. The employees have the potential to make or break the organization because they are the one who directly with the customers.
Suppliers also play a crucial role in the betterment of EnBuFriend. EnBuFriend doesn’t undertake all the production in the organization as most of the production work is outsourced. It is the responsibility of the management to pay good and competitive price to the suppliers so that they are motivated to provide good quality. If the suppliers are under-paid then they will provide low quality and this will create an impact on the whole product quality. Quality standards should be set so that the management can be rest assured about the quality of goods that they receive. On the other end, EnBuFriend should conduct annual audits so that the suppliers are motivated to the quality mentioned (Garvin 2006).
Customers are the most important part of the micro environment. The management should look for ways by which they can understand the expectations of the customers so that EnBuFriend can be innovate accordingly. If the management of EnBuFriend is not willing to change then there are very high possibilities that they will be stagnant and hence, some other competitor will take number one position in the electric car market and EnBuFriend will be left behind.
Shareholders of the organization should also be considered by the management of EnBuFriend. It is the responsibility of the management to keep the shareholders informed about the financial transaction in the organization. If the shareholders aren’t informed about the financial status of the organization then there are high possibilities that the shareholders will draw back their money and the organization will be in loss.
Competitors play a very crucial role in the micro environment of EnBuFriend and they cannot be ignored at any cost. The management of EnBuFriend should keep a close watch on the moves of the competitors. Accordingly, EnBuFriend should also make the move so that they can retain their competitive position in the market. EnBuFriend should understand the moves of the competitor and plan something better so that they can retain the competitive position and also the customers that they have (Herzog 2011).
Macro environment may seem to be irrelevant to EnBuFriend but it is the responsibility of the management to track it. If the management ignores the trends in the macros environment then survival will be a difficult task to achieve. Various trends in the macro environment can create an impact on EnBuFriend and they are discussed below.
Economics of the target market needs to be considered by EnBuFriend’s management. If the people in the country aren’t financially strong then they may opt for a car. Introduction of a car is always recommended in a developed economy because there are very high chances that people will not make investment in car when they are struggling to fulfill their basic requirements.
Technological advancements in the environment should be considered. If the technological advancements are ignored by EnBuFriend and if they continue to do the same task then EnBuFriend will be technologically weak. To meet the customer requirements, the organization should be ahead of competition and the only way to achieve that would be understand the technological advancements and implement it accordingly.
The social and cultural impact can also create an impact on the sale of EnBuFriend. If the people in the country are willing to be environmentally friendly then it is highly recommended to enter in that country. If people aren’t willing to be environmentally friendly then they may not accept the car. Socially and culturally, developed nations are accepting electric cars and hence, EnBuFriend should try to flourish in developed nations rather than that of developing and under-developed nation (Holmberg 2011).
All the 7P’s of marketing should be used effectively by EnBuFriend so that they can reach the target audience. The different P’s of marketing and its impact on EnBuFriend is elaborated effectively below.
Electric car is the product that EnBuFriend is willing to provide to the customers. This is not like the other cars available in the market and hence, it is the responsibility of the marketing team to benefits that one can derive from the car. The car is environmentally friendly and hence, this is meant for people who are conscious about the environment in which they live. The car can be charged with the help of electricity or solar power.
EnBuFriend car can be afforded by all and hence, it is available at a very affordable price. This car is available for $1,50,000. This car is for the executives who are not willing to shell out a lot of money in the car that they will be driving. EnBuFriend is cheap and at the same time, they can charge the car at home and hence, additional petrol and diesel expenses can be avoided (Holmberg 2009).
This car will be initially introduced in the USA and UK. These are developed nations and people from this part of the globe are willing to reduce the impact on the environment. This will be available to people through the various EnBuFriend outlets that will be available. Most of the dealers are dependent on the incentives that they get to promote the car and hence, EnBuFriend will set up its own outlets along with dealer outlets. EnBuFriend will be marketed so that the people are motivated to walk-in in the outlet and buy the electric car that they would like to buy (Lecocq 2009).
Various promotional strategies will be used by EnBuFriend so that they can survive in the market. Few of the promotional strategies that will help the organization to be known among the target audience are discussed below.
Advertisements on television will be placed so that the target audience can be aware of the existence of EnBuFriend. The advertisements will be placed during peak hours so that everybody can be aware of the new electric car that is available in the market. Advertisements will be placed on newspaper and magazine. This will help the people to understand the expectations that they have from the car. Apart from that, the customers will be motivated to take test drive so that they can understand the benefits and comforts that they can get from this car. The test drive will be for free of cost and this will be for all the people who are motivated to do their good for the environment.
Online marketing will be done extensively so that the customers are motivated to acquire more knowledge about the product. This will motivate the customers to visit the website of EnBuFriend. The details of the visitor will be tracked with the help of cookies and marketing emails will be sent. Marketing emails will also be send to people who has given their email ID at various car related events (Adén 2008).
Plenty of people are associated with EnBuFriend so all of them need to be understood by the management. To start with, the management will start with the employees. All the employees will be trained to communicate to the employees. They will also be given training regarding the technical features of EnBuFriend so that they can sell the products smartly. The employees will be provided soft skill training so that they can be polite with the customer.
The customer will be taken care by the employees. If there is any complaint from the customer that will be understood and the management will ensure that any such problem is avoided in the near future (Lehmann 2009).
Various physical evidences will be created so that the customer is motivated to reach the location. Banners will be put at regular intervals so that the customers can see and search for more information. The advertisements on magazine can also act as physical evidence. Outlets are one of the places where in the customer will get the touch and feel of the product. It is responsibility of the employees to share complete information about the product. Giving test drive is one of the best physical evidence that can be created. The employee can touch and feel the product.
The complete process will be automated so that the management can be rest assured that there aren’t any manual errors. Once the manufacturing of vehicle is done, the management should give technical training to the sales executive. The sales executive will share the same information with the customer. The customer will opt for test drive if they are willing to get a better experience of the vehicle. Lastly, the customer will make the payment and buy the car (Lorenzoni 1995).
Initially, it may seem to be complicated to reach the target market but this can be achieved with extensive marketing. A marketing plan will be in place so that the target market is motivated to be environmentally friendly and also save the huge money that they are investing in the car and also the petrol. This car is only for people who are techno freak. This car will ensure that the driver has plenty of features to enjoy the drive. Most of the people have a person that having an electric car would mean that they will have to compromise on the features of luxury car and also the comfort but the users of EnBuFriend can be rest assured that they will not have to suffer.
Adén, E., & Barray, A. (2008). Go Green in the Automotive Industry . Kalmar: Baltic Business School.
Aggeri, F., Elmquist, M., & Pohl, H. (2009). Managing learning in the automotive industry – the innovation race for electric vehicles. International Journal of Automotive Technology and Management , 9 (2), 123-147.
Beaume, R., & Midler, C. (2009). From technology competition to reinventing individual ecomobility: new design strategies for electric vehicles. International Journal of Automotive Technology Management , 9 (2), 174-190.
Belderbos, R., & Faems D, L. B. (2010). Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms. Journal of Product Innovation Management , 27 (6), 869-882.
Chesbrough, H., & Crowther, K. (2006, June). Beyond high tech: early adopters of open innovation in other industries. R&D Management , 36 (3), pp. 229-236.
Chiaroni, D., Chiesa, V., & Frattini, F. (2010). Unraveling the process from closed to open innovation: evidence from mature, asset-intensive industries. R&D Management , 40 (3), pp. 222-245.
Ebersberger, B., Bloch, C., Herstad, S. J., & Van de Velde, E. (2010, November). Open innovation practices and their effect on innovation performance. International Journal of Innovation and Technology Management .
Enkel, E., Gassmann, O., & Chesbrough, H. (2009). Open R&D and open innovation: Exploring the phenomenon. R&D Management , 39 (4), pp. 311-316.
Dyer, J., Kale, P., & H., S. (2001). How to Make Strategic Alliances Work. MIT Sloan Management Review , 42 (4), pp. 37-43.
Dess, Gregory, G., & Lumpkin, G. (2005). The Role of Entrepreneurial Orientation in Stimulating Effective Corporate Entrepreneurship. Academy of Management Executive , 19 (1), 147-156.
Faems, D., Visser, M., Andries, P., & Looy, B. V. (2010). Technology alliance portfolios and financial performance: Value-enhancing and cost-increasing effects of open innovation. Journal of Product Innovation Management , 27 (6), 785-796.
Francis, D., & Bessant, J. (2005). Targeting innovation and implications for capability development. Technovation , 25 (3), 171-183.
Freeman, J., & Engel, J. (2007). Models of Innovation: Start-ups and Mature Corporations. California Management Review , 94-119.
Garvin, D., & Levesque, L. (2006, October). Meeting the Challenge of Corporate Entrepreneurship. Harvard Business Review , 2-12.
Herzog, P. (2011). Open and Closed Innvation, Different Cultures for DIfferent Strategies (2nd ed.). Heidelberg, Germany: Gabler.
Holmberg, S. (2011). Emerging Green-Technology Entrepreneurs: Entrepreneurial Pathways to Growth in the Hybrid and Plug-In Hybrid/Electric Vehicle Space . ICSB World Conference Paper, (pp. 3-8). Stockholm.
Holmberg, S., & Cummings, J. (2009). Building Successful Strategic Alliances: Strategic Process and Analytical Tool for Selecting Partner Industries and Firms. Long Range Planning , 42 (2), 164-193.
Lecocq, C., & Looy, B. V. (2009). The impact of collaboration on the technological performance of regions: time invariant or driven by life cycle dynamics? An explorative investigation of European regions in the field of Biotechnology. Scientometrics , 80 (3), 845-865.
Lehmann, F. (2009). Collaboration with future competitors and partners beyond your current industry, A case study on Tesla Motors. Copenhagen Business School, Copenghagen.
Lorenzoni, G., & Baden-Fuller, C. (1995). Creating a strategic center to manage a web of partners. California Management Review , 37 (3), 146-163.
MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.
You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...Read More
Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...Read More
Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...Read More
Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...Read More
Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...Read More