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Marketing Report

Target Market and Geographic Area

  When cars are designed, the designer must first identify both the target audience and the target geographic area.  These demographics in which the car is designed around will foretell the sales of the car.  As a group, we have decided to target our dream car, the Refas to graduates coming out of collage.  This large group of young adults allows for maximum sales.  Many other companies have realized this potential, and have invested in this age group.  Companies like Honda have created the Element for the young, and sales have proved this method effective.  Of course, the question comes to mind, ďWhere shall I sell my car?Ē  We have decided to produce the Refas exclusively in America.  We have found that our knowledge mainly extends to American young adults, and it would be too difficult to design the car to American needs and the unfamiliar European and Asian demographics.  There also comes the problem of exportation.  The increased cost could destroy our plans of providing a cheap enough car for young adults.  Foreign cars also call these countries their home, and superior knowledge is always best.  Therefore, weíve decided to stay in America.

 

Distribution Area and Method

  Distribution is very important if we are going to be able to sell our car.  We have decided to take out the middle man or dealer and sell the Refas from select locations around the country. These locations will be determined on based on population. Therefore, the car will be distributed in highly populated areas like cities. By taking out the dealer there will be no bargaining for prices: only one flat fee. Our plan is to make special distribution centers across the country were anyone can go and buy a car and they can also customize their car there.  When the consumer first arrives at the factory they will test drive a pre-made car that is loaded with all of the features.  This way the consumer can choose which add-one they like, and which ones they donít like. This idea will allow customers to buy the car with the features they want instead of having to buy cars that come with packages that include some items but not other.  After the consumer has customized there car they wait a couple of days and go and pick up their finished car.

 

Market Needs and Competition

There is tough competition out there, so if our car wants to be able to compete with the best itís going to have to be the best. This includes being reliable, luxurious, and safe for any use like commuting and traveling. Commuting and traveling are the most important uses for a car, according to our survey 89% of people used their car to commute and 58% of people used their car to travel. Our car is a hybrid, a mixture between electric and biodiesel. This will allow our car to go longer distances with better fuel efficiency, at the least 50 miles per gallon. Also we need to use a good fuel source to compete with other cars like the Element that also is coming out with a hybrid engine. We will have dent-resistant panels and bumpers, duel and front side air bags, and 3-point seat belts in every seat that will keep your car and yourself looking good. We will make sure that the mirrors on are car will have a clear view in every direction and our car will have white lights that are brighter and help you see at night(8). More safety features are side impact door beams and a reinforced frame with strong vertical beams. Because of these precautions, there will be less unfortunate money consuming accidents that are not good for anybody. Also, a lot of cars out there are offering a lot of space, so are car will too. It will have a large trunk and seats that can fold back completely flat so driver can pack items in their car, sleep in it on long trips, and more. There will be lots of leg room and the seats will be able to be taken out of the car.

 

Advertising Recommendations and Evaluation Strategy

  Advertising is an important part of getting our groupís car to be successful and there are many ways of getting our car noticed. One of the most important advertising strategies is making a commercial. This commercial must be able to catch the consumerís eye, be on the channel, and at the time the consumers we want to buy the car are watching.  Another way are group is going  to advertise is by getting are car out in the open through car shows as well as lending it out to upcoming movies and other places that are highly seen such as TV channels like MTV and Comedy Central and shows like Joe Millionaire and Monday night football(2). Also, video and computer games are a good way of getting our car advertised. 18 to 35 year olds were the most frequent video game players and buyers. Some of the years most popular games were racing games like Grand Turismo 3 and computer games like the Sims(1). If we get our car into games like these it can show all of the capabilities of our car and let our consumers in a way test it out. Also to advertise, we are going to sponsor popular events and the top athletes just like Buick sponsors Tiger Woods. We will hand out flyers and put up billboards in places where are demographic tends to be the most, like college campuses. Lastly, we are going to get are car advertised over the radio and we are going to give out free merchandise with our cars name on it. For example, key chains, shirts, and hats. Our groupís evaluation strategy will be to let our car be test driven by dealerships and a select few of people who are in the target market we are trying to appeal to. We will also give out surveys and conduct tests in focus groups.  Also to advertise, we are going to sponsor popular events and the top athletes just like Buick sponsors Tiger Woods. We will hand out flyers and put up billboards in places where our demographic tends to be the most, like college campuses. Lastly, we are going to get are car advertised over the radio and we are going to give out free merchandise with our cars name on it. For example, key chains, shirts, and hats. Our groupís evaluation strategy will be to let our car be test driven by dealerships and a select few of people who are in the target market we are trying to appeal to. We will also give out surveys and conduct tests in focus groups.

 

Design Recommendations

 We want our car to have a hybrid engine a combination between biodiesel and electric. Also, our car will have a sleek yet rugged design, a suave mix between a SUV and a sports car with four doors and a hardtop with a sunroof. Fifty percent of people surveyed said that they wanted four doors and almost 50 percent of people wanted the hard top with a sunroof. This will appeal to the consumers because this is what they like. They want to be adventurous and in touch with nature while also being able to look cool in their car while driving around the town. Our car will come with the option of having leather or water-proof stain resistant interior (for the messier drivers). The exterior will be smooth looking and shiny leaving you basking in its glory while also being tough. We will use Acrylic car wax on the car and paint protection to protect the car from acid rain, UV damage, tree sap and bird droppings (7). This will allow the car to last longer. As an exterior, we plan on using aluminum.  It is corrosion resistant and prevents rusting (9).  What happens when the car starts to rust is an oxide layer naturally develops (9).  This makes it impervious to oxygen by blocking out oxygen molecules from getting in (9).  Itís also Itís also very light weight (9).  It cut the weight savings by 50% for the Audi A8 and shaved 440lbs of the Jaguar XJ350 (9). This cheaper design would allow the money to be put into other special features in our car.  The other pro of aluminum is that itís easily recyclable, another benefit to the environment (9).  There are some problems with it though.  Separate parts canít be welded together in production quantities, although it is possible (9).  Special rivets and adhesives can be easily used instead (9).  The last problem is that these extra investments are hard to make in cheaper cars nowadays, but the price is expected to drop after aluminum becomes in use more and more (9).  This is just in time for the production of our car.  Our car will also be at medium height of the ground so as to prevent the high risk of rollovers that come with an SUV but it is also not to low so that you do not get stuck.  

 

Target price

            We do not want our car to have a high price but we still want to be able to make a profit.  The 46% of people that we surveyed bought their last car for between 15 and 25 thousand dollars. This means that they are willing to spend that much on their next car. Still we would want our price of our car to compete with our competition. The Element has a starting price of $16,000. This means our starting price should be around $15,000 and with add-ons our maximum price should be around 20,000 to 25,000 dollars.

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