Pitch and Marketing Strategy - Essay Example

Pitch and Marketing Strategy Name of the Student Name of the University Pitch and Marketing Strategy This paper will present a pitch for a Hybrid Vehicle, detailing creative development, positioning branding, the media mix which includes mediums such as television, print, radio and Internet, demographic analysis etc. It will also include a product description, situation analysis and a SWOT analysis for the product highlighting its strengths and weaknesses. Product Description The product to be marketed here is a Hybrid Vehicle. Global Hybrid Car Market Forecast 2010 says that Hybrid cars offer many advantages over everyday vehicles like fuel efficiency and environmental benefits and that’s what will make them the cars of the future. A Hybrid Vehicle is an automobile that uses two or more than two sources of power for its propulsion. The automobile inherently is supplied with two power sources for its movement and most Hybrid cars can use either one source of power independently or both sources concurrently. This Hybrid vehicle will have both the conventional gasoline motor as well as an electric motor. It has two supplementary electric motors that support the main gasoline engine. Depending on the circumstances, road elevation etc., either one or both the engines function side by side. When compared to a conventional gasoline engine the gasoline-electric hybrid motor is smaller and less powerful but more efficient. This Hybrid automobile is primarily tweaked and tuned for reduced emissions which enormously benefit the environment and increased driving range which significantly places the consumer at an advantage (Komarow, S, 2006). Demographics Australia has an ageing population like most developed countries as a consequence of continued low fertility rates and increased life expectancy. This has given rise to a significantly low population of children in the Australian population. The median age of the Australian population is as of the year 2008 is 36.9 years. With respect to individual states and territories, Tasmania has the oldest population amongst all the states with a median age of 39.4 years. South Australia comes next with a median age of 39 years with New South Wales following close behind with a median age of 37.1. Victoria, Western Australia, Queensland, Australian Capital Territory and Northern Territory all follow close behind with median age 37, 36.4, 36.3, 34.7 and 31.1 years respectively. A majority of the people in Australia as of the year 2008 was 37 years. The year 2008 also saw a significant increase in the percentage of working population, namely people aged between 15-64 years. The weekly income of an average full time working adult in Australia ranged between $900 and $1200, including both public and private sectors. The weekly earning of adults further rose by 6.5% for males and 5.2% for females as on February 2009 (Australian Bureau of Statistics). A significant percentage of people in Australia are aware of environmental issues and take measures even in their homes to reduce greenhouse emissions. Community awareness on environmental issues has led to this increased use of measures that save the environment at home. Australia has seen an increase in the percentage of people aware of environmental issues. In 1999 this percentage was only 19%, whereas in 2008, it increased by half, that is 52%. This increased awareness has induced people to take actions at many levels to reduce the emissions caused by their use of various gadgets including automobiles (ABS, Australian Social Trends, 2009). According to a study by the auto market research firm, a substantial percentage of people were interested in buying hybrid electric automobiles despite its price. The study revealed that about 72% of the people were aware of this technology of Hybrid cars and showed some interest in it, while 46% said they were willing to invest in it in this technology during the purchase of their next automobile (LaMonica, M, 2004). Product Analysis Survey A product analysis survey showed some very useful results. The survey was distributed among young students, mostly college goers (who are allowed to drive cars) and the working population in Australia in order to analyze the awareness levels regarding environmental issues, hybrid cars and advantages of using these Hybrid vehicles. The survey showed that about 85% of people were fully aware of environmental issues, greenhouse emissions and the harm caused to the environment as a result of these emissions and pollution. 10% was partially aware of these issues and 5% was unaware of environmental conditions and issues. Regarding awareness of Hybrid automobiles, only 52% was aware of the existence of such vehicles and the technology behind it, 32% had only just heard of these vehicles and the remaining 16% had no knowledge of the existence of such automobiles. When questioned how many people were aware of the advantages of using Hybrid vehicles, 66% said they knew of the advantages of such vehicles, while the rest of the 34% said they were unaware of the positive aspects of Hybrid automobiles. Hybrid vehiHThis survey also found that only a bare minimum of 22% of the population were already using Hybrid vehicles either for their personal use, for example cars or for their business purposes, for example corporate vehicles such as trucks, vans etc. 78% of the people did not use any kind of Hybrid automobile either for their personal use or for their business purposes. Likewise when asked how many were willing to buy Hybrid cars, 57% said that they were willing to buy Hybrid vehicles for their personal or business purposes or both, 3% were in the process of buying a Hybrid automobile and 40% of the population felt that it was too expensive a buy in their current circumstances and said that they may consider it in the long run. Hence while the awareness percentage regarding these Hybrid vehicles was reasonably high, the percentage owing such vehicles is very low. There is still a significant chunk of the population that needs to be convinced to buy these vehicles. This can be achieved through an effective marketing strategy. Description Interview The description interview was conducted in order to gain insight into the product and the advantages that the product offers. The interview has helped us obtain some very valuable information. Firstly, this Hybrid car uses both gasoline as well as electrically powered motors. The electric engine of this Hybrid car can run for anywhere between 2 to 3 kilometers on a level road. When used well the batteries of this care will last the standard life length of the automobile. Additionally the batteries need not be charged separately by plugging it in as they recharge automatically while driving the vehicle. Ensuring optimum charge will extend battery life. The batteries are made up of steel, nickel, copper and plastic. Moreover, this Hybrid automobile can operate in extreme weather conditions and have abundant safety measures such as automatic disabling to ensure safety. One of the biggest advantages of this Hybrid automobile is its fuel efficiency. When the petrol engine is not required, for example at traffic signals or when going downhill, it automatically shuts off thereby saving fuel. The combining of a gasoline powered motor with an electric motor ensures better performance, as the vehicle does not depend on combustion for starting; instead it draws from the battery. Furthermore they can make use of the motors to produce immediate torque at a significantly low rpm. This Hybrid vehicle increases fuel efficiency, performance and cuts down enormously on emissions (Raskin, A and Shah, S, 2006). This is not only profitable to the consumer; it also benefits the environment enormously. When regularly used, this Hybrid car uses less than 50% of the fuel used by the regular cars with conventional engines. Target Market The target market will primarily include people who are economically conscious and the percentage of people who are environment conscious. The environmentally conscious will basically include the working population of Australia aged between 15-64 years. A large percentage of these people drive to work on an everyday basis. Most of the people living in the urban areas of Australia have a drive of a minimum of 40 minutes to work. Statistics show that personal and other use made up about 51.1% of the total kilometers traveled by passenger vehicles in Australia and 28.7% constituted travel to and from work and the remaining 20.2% comprised of business use (Australian Bureau of Statistics, Survey of Motor Vehicle Use). With such a large percentage of cars being used, the working population and large families will be the primary target as they will be highly economically conscious. The second target group will be the environmentally conscious. This group will include students and youth leaders, the young working population, professors, government officials and leaders etc., since these are the people who are responsible in promoting environmental awareness. Marketing Mix – Four P’s The marketing mix is a planned mix of the controllable elements of the marketing plan of a product which includes product, price, place and promotion. These four elements are combined and adjusted until a right combination, which satisfies consumer needs and generates optimum income, is found (Business Dictionary, Online). The four elements are known as the marketing mix or four P’s of marketing. These four variables are blended in order to generate a positive response from the target market (Quick MBA, Online). Product – This variable supplies clear definition of the product including its features, quality, service etc. In this case the product is a Hybrid Vehicle. It functions just like any other vehicle. The only difference is that it uses two sources of power to function. It uses a gasoline powered motor as well as an electrically powered motor. Its appearance is also similar to that of a normal vehicle. High quality is maintained in the product and it is designed to give maximum fuel efficiency and minimum emissions. Price – The list price of this car is anywhere between $28,000 to $34,000. However, a 10% discount is made available for all Hybrid cars booked within the first 3 months. Financing options are available through loans etc. Additionally government also gives some allowances and discounts for the purchase of hybrid cars. Place – The Hybrid car will reach the target market through manufacturer showrooms as well as individual car dealers. Consumers can purchase cars either directly from the manufacturer showroom where they will be eligible for discounts or from individual car dealers, where discounts are left to the discretion of the dealer. Promotion – For the promotion of this car four mediums will be used, namely, Television, Print, Radio and Internet. The primary communication message that will be conveyed across mediums is that this Hybrid car is ‘Fuel efficient and Low on emissions’. Print advertising will be the most utilized medium. Advertisements of this Hybrid car, will be published in newspapers, automobile magazines and trade magazines all of which will carry the message, ‘Fuel efficient and Low on emission’. From the budget of $1.5 million, about $600,000 will be allotted for the print medium. Television will also be used extensively, for creating awareness about this Hybrid car. For television $450,000 will be used from the allotted budget. Television will be used to telecast teasers, advertisements etc. Internet will also be used extensively to promote the Hybrid car. Internet banners, advertisements, links, pop-ups etc in all the leading, most visited sites will be use to promote the car. For this purpose $300,000 will be used. Lastly Radio will also be used for promoting the Hybrid car. Voice over and audio clips will be used on the radio to promote the car. For this $150 will be set aside for Radio advertising. Competition At present there are three Hybrid cars available in Australia. These cars include the Toyota Prius, the Honda Civic Hybrid and the Lexus 400 h. These three cars are the main competition. Honda’s USP is that it keeps the fuel consumption down. Toyota on the other hand promotes itself as a car that can switch to the electric engine when going slow or in traffic lights. Lexus is marketed as an extremely environment friendly car which has very low emissions (Choice.com, Online, Private Fleet, Online). SWOT Analysis SWOT analysis is the strategic planning method used to assess the strengths, weaknesses, opportunities and threats of a business venture, before entering into the market (Hill, T. & Westbrook, R, 1997). This is done to gain insight into what marketing mix should be used for the venture in order to make it satisfactory to customers as well as lucrative to the business. Strengths 1. Hybrid car with clear cut advantages 2. Vehicle gives competitive advantage when compared with its competitors 3. Highly fuel efficient 4. Low on emissions 5. Increased performance 6. Reduces need for oil imports Weaknesses 1. Price is a significant weakness 2. Runs limited distance Opportunities 1. Not many players in the Hybrid car market hence this gives scope for obtaining a significant portion of market share 2. Scope for improving technology to ensure increase in sales Threats 1. Regular cars with conventional engines 2. Other Hybrid car manufacturers In conclusion, it can be said that there is a significant percentage of people who are aware of the existence of Hybrid cars and the technology behind it. The challenge lies in convincing the target market of the benefits of the Hybrid car, namely fuel efficiency, performance and low emissions, and inducing them to invest in the same. Effective marketing strategy with the right combination of marketing mix will ensure a significant gain in market share and increase in sales. References Australian Bureau of Statistics. Population by Age and Sex, Australian States and Territories, June 2008. Retrieved 28 May 2009. http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/B52C3903D894336DCA2568A9001393C1?OpenDocument Australian Bureau of Statistics. Survey of Motor Vehicle Use , Australia, 2007. Retrieved 28 May 2009. http://www.abs.gov.au/ausstats/abs@.nsf/mf/9208.0/ Australian Bureau of Statistics. Australian Social Trends 2009. Australian Bureau of Statistics. Average Weekly Earnings, Australia, Feb 2009. Retrieved 28 May 2009. http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0/ Business Dictionary. Marketing Mix. Business Dictionary.com. Retrieved 28 May 2009. http://www.businessdictionary.com/definition/marketing-mix.html Choice. Hybrid Cars. Chioce Website. Retrieved 28 May 2009. http://www.choice.com.au/viewArticle.aspx?id=104663&catId=100462&tid=100008&p=1&title=Hybrid+cars Hill, T. & R. Westbrook (1997). "SWOT Analysis: It’s Time for a Product Recall". Long Range Planning 30 (1): 46–52 Komarow, S (2006). Military Hybrid Vehicles Could Boost Safety, Mobility. USA Today. Retrieved 28 May 2009. http://www.usatoday.com/news/world/iraq/2006-02-13-humvee_x.htm LaMonica, M (2008). Most Consumers Willing to Pay for Hybrid Cars. Cnet News. Retrieved 28 May 2009. http://news.cnet.com/8301-11128_3-9976308-54.html Private Fleet. Hybrid Cars in Australia. Private Fleet Website. Retrieved 28 May 2009. http://www.privatefleet.com.au/index.php?itemID=408 Quick MBA. The Marketing Mix. Quick MBA website. Retrieved 28 May 2009. http://www.quickmba.com/marketing/mix/ Raskin, A and Shah, S (2006). The Emergence of Hybrid Vehicles. Alliance Bernstein 2006. Read More