Solar Powered Cars: Marketing Plan - Essay Example

Solar Powered Cars: Marketing Plan Company The Smart Solar Cars Ltd. of the Table of Contents Solar Powered Cars: Marketing Plan 1 Company Name: The Smart Solar Cars Ltd. 1 Name of the Student: 1 Course: 1 Course Instructor: 1 Submission Date: 1 Table of Contents 2 Executive Summary: 3 SWOT Analysis: 4 Strengths: With the company’s outstanding research and development capabilities, the launch of this solar car serves as an innovative product for the Qatari automobile industry. The newness itself is the company’s major strength, as well as the product’s cost-effectiveness, and ability to save energy (that is, no use of petrol). The technological sophistication of the company has led them to producing a car that has the quality to use photovoltaic cells (PVCs) so as to transform the sun’s rays into electrical energy, part of which is stored in a battery-operated system, so that the car is able to operate even on hazy days, at night-time, and in shadowy zones like parking lots. 4 Weaknesses: A major setback for the company is the underlying marketing cost of this product as well as the acceptance of this innovative product by the masses. The market research is prone to validity and reliability issues and even a company with excellent management and marketing personnel, it is feared that not many buyers are actually attracted. Also, since the cost of a PVC sometimes goes up to $400 per cell, the production cost of these cars might exceed the estimated budget. These cars also get extremely heated from the inside and may be prickly to drive (Why to buy a Solar powered Car, n.p.). 4 Opportunities: Solar cars are the most environment friendly cars to use. This factor can be cashed whilst generating a positive word of mouth for the company. Affiliating with organizations that promote Go Green concept can also benefit the new born company. With consumers needs shifting to preferring environment friendly products, this can go into the company’s benefit. Moreover, the economy of Qatar is permeable to new entrants and Smart Solar Cars can survive. 4 Threats: Competitors, both local and international, are an obvious threat. The fear of unsuccessful marketing efforts made to shift Qatari consumers from the conventional cars to solar powered cars, as well as the constant terror of unpredictable recession stay as major threats. 5 Market Segmentation: 8 Market Positioning: 9 Marketing Strategy and Mix: 10 Product 10 Price 11 Place 11 Promotion 11 Works Cited 13 Executive Summary: The company is named Smart Solar Cars Ltd which is an entirely new brand to be launched in Qatar. The main target market that these cars cater to, are the young individuals, and first time buyers of the car. The company is anticipated to be launched in Qatar in January 2012. The primary mission is to ‘go green’ in the future and save the natural resources to their maximum. The main objective of launching this product is to create awareness amongst people on the usefulness of the solar energy, and to promote an environmental friendly atmosphere around the country. The target market is mainly the youth who are fascinated by new and innovative cars, as well as people from various economy classes who can afford this product out of a lengthy product line that caters to different types of cars for different price-ranges. The car has a very modern, stylish and elegant appearance and it is made keeping in context Qatar’s thriving economy and the customary and uncreative automobile sector. The country’s economy is believed to be the most stable in the world and people of Qatar enjoy a good living standard. The automobile sector of the country is not very innovative; hence to create the demand for a new innovative car is the main mission of this company. We expect to generate a satisfactory demand in the first year which would if not full, will cover half of the costs. The solar cars have great potential in the Qatari market. And with the right mix of Product, Price, Placement, and Promotion, this product can achieve substantial profits in a few years after its launch. SWOT Analysis: Strengths: With the company’s outstanding research and development capabilities, the launch of this solar car serves as an innovative product for the Qatari automobile industry. The newness itself is the company’s major strength, as well as the product’s cost-effectiveness, and ability to save energy (that is, no use of petrol). The technological sophistication of the company has led them to producing a car that has the quality to use photovoltaic cells (PVCs) so as to transform the sun’s rays into electrical energy, part of which is stored in a battery-operated system, so that the car is able to operate even on hazy days, at night-time, and in shadowy zones like parking lots. Weaknesses: A major setback for the company is the underlying marketing cost of this product as well as the acceptance of this innovative product by the masses. The market research is prone to validity and reliability issues and even a company with excellent management and marketing personnel, it is feared that not many buyers are actually attracted. Also, since the cost of a PVC sometimes goes up to $400 per cell, the production cost of these cars might exceed the estimated budget. These cars also get extremely heated from the inside and may be prickly to drive (Why to buy a Solar powered Car, n.p.). Opportunities: Solar cars are the most environment friendly cars to use. This factor can be cashed whilst generating a positive word of mouth for the company. Affiliating with organizations that promote Go Green concept can also benefit the new born company. With consumers needs shifting to preferring environment friendly products, this can go into the company’s benefit. Moreover, the economy of Qatar is permeable to new entrants and Smart Solar Cars can survive. Threats: Competitors, both local and international, are an obvious threat. The fear of unsuccessful marketing efforts made to shift Qatari consumers from the conventional cars to solar powered cars, as well as the constant terror of unpredictable recession stay as major threats. Marketing Research In order to identify the market segment, adequate research was carried out to determine the taste and preferences of consumers when it comes to buying cars. Two data collection methods, namely Survey and Observation, were used to develop the research. For the purpose of survey, questionnaires were used as the basic tool to gather the response of the intended target market. At least 300 questionnaires were distributed personally to students and teachers at various colleges in Qatar, especially in Doha (the capital city of Qatar). Students were given a chance to drive the car for 5 minutes after which prompt responses were collected. Moreover, around a 100 questionnaires were sent via mails to various workplaces in Doha and Al Wakrah (the second most important city of Qatar). Other than this, observational technique was used at various showrooms where consumers with different demographics, belonging from different lifestyles, and carrying different attitudes had come to buy cars. For the purpose of this research, observations were made at 7-8 showrooms continually for 2 weeks from time to time. At least a 100 were also surveyed at some designated showrooms, with permission. The basic research objectives for this study were: To determine whether or not consumers in Qatar prefer the concept of solar cars To find out the most adequate price range within which average Qatari consumers are most likely to afford to pay for a car To determine which consumer segment in Qatar is most likely to purchase this new car With a sample size of 800, out of which 500 were respondents and 300 were the ones observed; it is believed that this sample is an adequate representative of the target population considering that the target segment was college students and working individuals belonging from different economic classes. In the research, survey questions were divided in segments, mainly focusing on the 4Ps of this product so as to determine the perfect marketing mix for the solar cars. Having figured out from the prompt responses and observations of the consumers that they have an adequate preference for environment friendly cars; more young students have positive perception regarding green products; and there exists a relatively greater livelihood of the newness of these cars to be adopted by the people of Qatar – the next fact to establish was the price Qatari consumers would like to pay. Since cars are a significant purchase and is bound to be costly, for the launch of solar cars in Qatar, an in-depth research was to be carried to determine the price bracket for this product. Through the survey, it was established that the consumers preferring style, and comfort were willing to pay easily able to pay 5 – 7 million QR. The customers that were not bothered for style, but wanted a safe car design and preferred durability were willing to pay 3 – 4 million QR. There was an even lower class of consumers who were found to be willing to pay not more than 2.5 million QR for a car; these were mostly college students or low-income individuals. The next step was to determine how to promote these solar cars. Through the survey and general observation, it was found that customers were appealed to the 5-minute-try-out campaign for the car. The hands on experience with the product itself made them more confident in their decision of purchasing a cost-effective and environment friendly car. This also served the purpose of influencing consumers’ attitudes so to direct them more towards green products; the adoption of this product was enhanced. Hence, it was established to run this try-out campaign at as many colleges across Doha and Al Wakrah as possible. Distribution of flyers in colleges and workplaces was also a convenient, but very conventional option for promotion; this option was mainly used to transmit information and important facts about the cars to the consumers. The product was also exposed through print media in different forms of ads and appealing tag lines. When asked from where they would prefer to purchase these cars, 90% customers preferred to visit actual outlets and book their orders in front of them; the remaining opted for online purchase as a more convenient option. Hence in accordance with the market research, it was established that a classy show room will be set up in the hub of Doha, where consumers could easily gain access to it. Customers will also have a choice to place their orders online. For the purpose of cost-reduction, the shipment of cars has not been made an option. The distribution channel has been designed in a way to do Just-in-Time delivery of cars. Since the product is new and no surveys could completely be relied on too much for complete adoption of these cars by the masses, it is settled to have a few hundred cars from the initial investment, delivered to the showroom. The validity of this questionnaire could be in questions, where young students have been identified to be most interested in buying this product, under the fact that only young students have yet been given a chance to be a part of the try-out campaign. If more in-depth market research is done, it is possible that the company is able to get more customer segments. Market Segmentation: Smart Solar Ltd would be classifying its market segment in the following two ways: 1. By Demographics 2. By Price On the basis of demographics, the product is designed for young college students who are aware of the environmental concerns and want to use green products. These are the young progressive minds that have the tendency to adapt to new market trends and prefer technologically advanced products. Qatari students aged 20 – 24 were found to be the most interested in purchasing solar cars. This bracket could even include all those young and old masses of Qatar who have a taste and adaptive ability for new and innovative products in the market and who are able to change as the market trends change. On the basis of price, the car segments the market into four price ranges. Firstly, the basic price begins at the smallest solar car worth 2.5 million QR. It is targeted to the customer segment that consisted of only students or low-income individuals who were not willing to pay more price than this. Second market segment has been done keeping in mind the middle class society of Qatar who can afford to pay between a price range of 3 to 4 million QR for the solar car. The next segment offers a luxury solar car ranging from the 5 to 7 million QR. The final segment of our product is offered to the elitist class of Qatar charging a price the most expensive solar cars to be not more than 8 million QR. Market Positioning: The Smart Solar cars are environment friendly and low energy consuming cars that cater to various price segments among the entire automobile industry operating in Qatar. The car has been manufactured to offer controllable and stress-free drive, predominantly in city areas. Its height and size marks it a far more observable car than other small cars of the same category. It has been given an athletic look with characteristics that will charm several categories of clienteles. The climate of the country which has a very hot desert climate and subtropical dryness prevails over the country with very low rainfall annually; this serves as the main selling point of the solar cars (Geography and Climate of Qatar, n.p.). The Smart Solar cars intends to charm the niche market segment initially, however also alluring to families who desire to purchase a second car, or to those who are using their car in metropolitan or town regions. On the other hand, there is an advertising task at the focal point of targeting these sections. This car tries to attract distinctive and diverse clusters of car buyers so there is a requirement for cautious product positioning in the thoughts of the end user. Some concerns when positioning this new car consist of: Customers buying the car for the first time and car users who anticipate explicit design potentials from a solar car Families who want a second car to get them from one place to another twice a day or more than twice Individuals who may desire to buy a somewhat larger car or one that is more potent Youth looking for ‘disposition of themselves’ from their car - possibly more energetic features or distinct and distinguishing design textures. (sport versions of this car will be launched later) The car’s basic target market is young self-motivated individuals. The car has a noticeable plus in this regard for the reason that it is known for its reasonable pricing and is also a reputable, extremely distinguishable concept that young individuals can narrate to. ‘Compact car’ benefits i.e. dimensions and functionality are of acute prominence in this target market and consequently, product strategy and price are significant components in the marketing mix for the Smart Solar cars. Marketing Strategy and Mix: Marketing strategy used would be differentiation, as we would be using the following two USPs to capture the market: First, the car would be economical as the climate is always sunny and rarely gloomy. Hence, the cost of maintaining the car would be very economical. Second, the customers’ expectations would be met and the main focus all along would be to create an environment friendly vehicle. Product In the process of branding and positioning, we hope to communicate numerous important qualities of the new Smart Solar car. It would position itself as an intellectual smart car that is prepared for action and practicality. The car’s positioning statement is intended to briefly deliver the product plus points and the ‘charisma’ of the product in a style that will for sure attract the intended target market of the car (We all should drive solar powered cars, n.p.) Price The key target markets for our product are youth and the pre-conscious buyers of the cars. We have designed our pricing strategies in a way that they address the needs of the potential customers to its best. The prices are already discussed in the market segmentation part. Place In order to succeed in effectively delivering the product to the potential customer, the main head office would be located in Doha, the capital of Qatar. Likewise, we plan to hire agents in different cities who would promote the cars and generate the demand for the product as well. Promotion The most important medium used to generate a demand is through publicity. In case of our solar cars, the foremost advertising mediums used, apart from sponsoring university events and non-profit environmental organizations, would also be open-air billboard marketing and TVC promotion. Nevertheless, progressively more innovative forms of communications are being used by many firms, such as the advertising through internet and our company would also be exploiting that domain for publicity. Once again, we would be using the positioning statement to form the foundation of the publicity message. This would ensure a certain level of reliability across all essentials of the marketing mix. Advertising a car is not an easy task. Consumers are better at apprehending a product which is broadcasted visually. Smart Solar cars would capitalize on the ideas of wonder, freedom, naturalness and resourcefulness. Important factual communications that would be conveyed consist of the smart structure of the car, the worth for cash and budget of the car and the low on the trot costs. Our USP would be in terms of exceeding expectations in the domain of the economical aspect as well as the appearance and comfort level. Similarly, another plus for the company would be the climate of the Qatar that would immensely favor such an economical vehicle, in turn encouraging people all the more to consider it for purchase (Science Daily, 2011) Works Cited IANS. “Indians now number around 420,000 in Qatar.” Thaindian News. Web. August 7, 2008. Reviewed on December 15, 2011, Market Research.com. “Qatar Autos Report Q1 2011”. December 16, 2010. Reviewed on December 15, 2011 < http://www.marketresearch.com/Business-Monitor-International-v304/Qatar-Autos-Q1-6050200/> Science Daily. “Consumers Rely On Signage Over Other Ad Media, Research Finds.” Oct 11. 2011. Web. Reviewed on December 15, 2011 http://www.sciencedaily.com/releases/2011/10/111011112505.htm Solar powered cars.net. “We all should drive solar powered cars.” October 2011. Reviewed on December 15, 2011 < http://www.solarpoweredcars.net/we-all-should-drive-solar-powered-cars.html> Solar powered cars. Net. “Why to buy a Solar powered Car”. August 11, 2011. Reviewed on December 15, 2011 < http://www.solarpoweredcars.net/why-to-buy-solar-powered-cars.html> Welcome to Qatar. “Geography and Climate of Qatar.” Home page. Reviewed on December 15, 2011, Read More