Individual Marketing for a New Product of Travolta Car - Report Example

New product Launch Contents Introduction 3 Market Identification 3 Market segmentation strategy 4 Segmentation 4 Targeting 4 Positioning 5 Comprehensive marketing mix strategy 6 Product features and benefits 6 Product classification 6 Levels of the product offering 7 Packaging/design requirements 7 Price 8 Place 8 Promotion 8 Reference List 10 Introduction The new product chosen for launch is Travolta electric car. The product has been chosen because of the increased demand among consumers for a fuel efficient car. The current economy filled with resource uncertainty and increasing fuel prices demands for products that are environment friendly, sustainable as well as has a long life cycle. Looking at the opportunities, an electric car has been planned for launch. Market Identification The product, Travolta, is a small electric car and will come in three different variants. It was first designed as a concept car with distinguishable features such as, lithium battery backup, super capacitor and high speed. As a result of successful pilot testing and subsequent demand among customers, the product is going to be launched. Though the product aims to capture global market, the present target market will be United States. Electric car is a burgeoning market in United States. Out of the total electric cars manufactured globally, United States stocks 38 percent alone. More than 80,000 electric cars were registered in the year 2012 and the numbers are increasing rapidly (International Energy Agency, 2013). As a result of its increasing importance, electric car is quickly becoming the top preference for customers looking for fuel efficient and sustainable cars. Electric cars improve the overall quality of life by reducing fuel changes as well as pollution. Also, electric cars that are low on maintenance saves a lot of money spent on frequent repairs. Since these are high-end vehicles, they can be afforded by a certain set of customers. Another factor for the increasing popularity of electric cars is that it lowers dependence on foreign fuels, thereby increasing control of the government and improving overall development of the state. The total market share of electric cars in United States is .14 percent (Wall Street Journal, 2013). At present, there are at least 16 brands of electric cars present in United States market (International Economic Development Council, 2013). Though competition is tough, yet the level of market penetration is extremely low, giving Travolta opportunities to expand in unreached markets. With extensive government support for electric car production and selling, the brand will get a boost in its branding and mass advertising strategies. Market segmentation strategy Segmentation Electric cars can be segmented according to various categories such as, vehicle type, customer profile and utility. In case of vehicle type, various market segmentations include passenger vehicles, hybrid scooters, buses, industrial and commercial vehicles, low velocity vehicles as well as vehicles for niche markets. In terms of utility, market for electric cars is segmented on the basis of frequency of usage, need for charge and reason behind driving (Burgelman and Grove, 2012). Apart from the above factors, electric cars are also segmented on the basis of their technologies. For Travolta, the target customer profile will be: 1. Young professionals with established backgrounds within age group of 25-30 years. 2. Middle-aged professionals and businessmen within age group of 30-45 years. 3. Established and working couples with knowledge of electric cars and their long-term benefits. Targeting In general, consumers considering themselves as updated and well-versed regarding electric cars as well as their benefits are more likely to choose the same over normal petrol and diesel cars. Compared to normal petrol and diesel market, the market share of hybrid and electric cars is very low. The major reason attributed to this is the high price range and affordability of these cars. As a result, target customer groups are confined to a small number of affluent and wealthy individuals. Travolta is a general passenger vehicle targeted at small and nuclear families for daily utilities. Increase in oil prices, growing concerns regarding environment pollution as well as increased efficiency of hybrid and electric vehicles have resulted in higher demand for environmental cars. Even though marketers and analysts consider emerging markets such as, Asia, to be burgeoning ones for future, Travolta will focus on the United States market for improving sales and revenue, besides gaining capital for future investments (Sperling, 1995). In order to increase customer base and make it a value for money brand, the positioning strategy will be implemented on the basis of different needs and requirements of customers. Accordingly, few variables were classified defining and distinguishing various customer profiles. 1. Driving reason: The first variable considered was reason behind diving; either communizing or driving around. For customers who are using electric cars for daily commutation, battery capacity required will be highest. Therefore, electric car variants with highest battery backup and longest battery life will be positioned for the above customer base. 2. Energy usage: It has been seen that the level of energy usage is different among consumers. For instance, individuals who use cars for regular but not daily trips might need more energy efficient and faster cars, compared to those requiring slower but daily trips to their offices or businesses. For the former set, electric cars with engines with better internal-combustion capacity will be positioned (Hodson and Newman, 2009) Positioning The fundamental positioning strategy will be to target upper and upper middle class of customers. Unlike majority of the competitor brands, Travolta will be positioned as a people’s car built keeping in mind the affordability of individuals as well as providing them with an optimal value for money offer. In order to create a differential positioning status, Travolta will establish itself in the most successful and profitable position in the perceptual map. Perceptual Map High Quality Mercedes, BMW Jaguar, Toyota Travolta High Price Low Price Volvo Honda Low Quality (Source: Author’s Creation) The objective of the brand is to be placed in high quality and low price segment, as depicted in the perceptual map below. Here, the brand is not only fighting other electric car manufacturers, but also vehicles running on fuel. Thus, its competitors can be divided into two segments. For vehicles running on fuel, the positioning strategy will be based on providing alternate options to a better fuel efficient car. Here, the car will be positioned as the best alternative for normal vehicles, providing fuel efficiency, low maintenance as well as longer life span compared to a normal vehicle. For electric vehicles, Travolta will place itself as a high quality and low priced hybrid vehicle, making environmental friendly cars accessible to people. This will help in changing the perception of electric cars as inaccessible and high priced vehicle, besides making it a domestic product. Comprehensive marketing mix strategy Product features and benefits 1. Rigidity and strength: The overall body is prepared from state-of-art and high quality aluminum ingredients, making the vehicles lightweight, tensile as well as resistant to erosion and external pressure. It also offers an effortless driving experience. 2. Sun proof roof: Vehicle variants will also comprise hatchbacks adjusted with solar panels, providing electricity during the drive. It will also help in improving battery backup during long trips (Electric Drive Transportation Association, 2014). 3. Quick acceleration: One of the key differentiator and USP of Travolta is its quick accelerator, which is lacking in most of the competitors. Product classification Considering the varying demands of customers across the target market, three different variants of Travolta brand will be launched. 1. Travolta Mini: This will be specifically designed for nuclear families as well as working professionals and will be for daily usage. The major features will be powerful battery backup, quick acceleration, energy efficient as well as best alternative for fuel-running vehicles. However, the speed capacity will be lesser compared to other two variants. 2. Travolta SUV: The sports utility variant will be aimed at two kinds of customers; one who desires fun and adventurous driving experience; and other who indulges in frequent but long trips involving rough travelling conditions. The major features of this variant will be strong exteriors, high battery backup, voice recognition facilities as well as touch screen and monitoring systems. 3. Travolta Hatchback: The Hatchback variant will be aimed at young and upper class customers, especially college goers who are concerned about the environment as well as looking for vehicles that can enhance their overall image. The Hatchback model will be a perfect replacement for high-end modern cars as it will be positioned as cool and stylish. The major features include trendy and modern exteriors; and technologically enhanced interiors such as, touch screen facilities and modified control systems. Levels of the product offering 1. Convenience: The vehicles from Travolta brand will ensure lesser trips to gas as well as charge stations. 2. Smart and sleek: The exceptional battery power will provide facilities such as, long journeys, without any hitches. 3. Quick and advanced notifications: The digital dashboard in front will display all important information such as, operating system status, battery range, navigation routes, energy efficiencies as well as GPS locators. 4. Brand name: The brand name ‘Travolta’ signifies strength and personality. The name ‘Travolta’ is associated with various synonyms such as, popular, beloved and strong. The brand will be positioned based on similar concepts and as a result, this brand name was chosen. Packaging/design requirements The major objective while designing electric vehicles will be to lower overall weight of the car as the battery weight will already be high. The design also needs to be compact and accommodating. Another feature is high usage of energy while manufacturing and production of electric cars. Packaging is not very important while car manufacturing. Nonetheless, it is important to consider external features as well as accessories and other benefits provided with the vehicle. These will include auto-insurance benefits, freebies as well as exchange policies. Price The pricing strategies will be targeted towards three different segments. The first segment is upper middle class. The Travolta Mini Car will be targeted at these customers. This includes established and working couples. These are individuals who like to spend on luxury and are simultaneously concerned about their future. Value based and affordable pricing strategy will be followed and the price range of Mini car segment will be from 15,000 US dollars to 20,000 US dollars. The second price segment will be for upper class middle aged customers. Pricing strategy for the Travolta SUV to be followed will be qualitative and cost- based pricing. The price range for the above segment will be 25,000 US dollars to 35,000 US dollars. The third price segments will be targeted towards upper class young customers, looking for eco-friendly cars with cool and trendy features. The Travolta Hatchback will be targeted towards these customers who can afford the high price. The price range for this segment will be 35,000 US dollars to 50,000 US dollars. Place The Travolta brand will be targeted at the entire United States. However, level of market segmentation will differ as it will be based on the concentration of high-end income group customers. The major cities to be targeted are California, San Francisco, Detroit, Manhattan, Hawaii and Washington. The products will be distributed via exclusive showrooms and no middlemen, such as, dealers will be involved during the initial stages. The brand will open at least one showroom in each of the target cities. Promotion The brand will be promoted through a 360 strategy, including various channels such as, television and print, radio, magazines, trade shows and digital and social media campaigns. Television Advertisements: Television advertisements will include 30-45 seconds advertisements, displaying the different models. In order to enhance product recall and appeal, celebrity endorsements will be used (Garling and Thøgersen, 2001). Print: Auto magazines are an important source among car enthusiasts and people looking for new cars. The brand will be showcased in various leading print magazines fortnightly. Trade Shows: Trade shows will help in improving the competitive nature among Travolta competitors. Also, this will help in media publicity as well as in generating product awareness among corporate visiting these trade shows. Social Media Campaigns: Quickly becoming one of the most influential channels, media sites will facilitate mass awareness. These sites will also be employed for a two-way communication platform as well as for informing individuals about various long-term and sustainable advantages of using electric and hybrid cars. Reference List Burgelman, R. A. and Grove, A.S., 2012. Toward Electric Cars and Clean Coal: A Comparative Analysis of Strategies and Strategy-Making in the U.S. and China. [pdf] Stanford Education. Available at: [Accessed 6 March 2014]. Electric Drive Transportation Association, 2014. Electric Car Facts. [online] Available at: [Accessed 6 March 2014]. Garling, A. and Thøgersen, J., 2001. Marketing of Electric Vehicles. Business Strategy and the Environment, 10, pp. 53-65. Hodson, N. and Newman, J., 2009. A new segmentation for electric vehicles. [online] Available at; [Accessed 6 March 2014]. International Economic Development Council, 2013. Analysis of the Electric Vehicle Industry. [pdf] International economic development council. Available at: [Accessed 6 March 2014]. International Energy Agency, 2013. Understanding the Electric Vehicle Landscape to 2020. [pdf] International Energy Agency. Available at: [Accessed 6 March 2014]. Sperling, D. 1995. Future Drive: EVs and Sustainable Transportation. Covelo, CA: Island Publishing. Wall Street Journal, 2013. Auto Sales. [online]. Available at: [Accessed 6 March 2014]. Read More