Introduction:

The electric car or e-Car is a vehicle propelled by an electric motor instead of fuel. Car manufacturers are exploring the possibility of entering the market with the e-Car as a alternative to current vehicles in order to be environmentally friendly and to minimize the consumption of gasoline. Although, the benefits of using the e-Car could exceed expectations it also presents a different type of lifestyle for those who are used to regular vehicles. According to the “New York Times” the e-Car is getting worldwide interest with some governments such as China and the United States even offering tax credits and discounts for those who buy an e-Car. On the other hand, consumers are concerned on whether the speed and battery life of the e-Car will be enough to satisfy their needs. In this case project we will look at the responses from 100 testers from Enterprise Rent-a-Car about trying out the e-Car and how useful it really is in today’s non-stopping lifestyle.

1. Approaching Enterprise to undertake our commuting test would be a boundless idea because, Enterprise specializes in providing vehicles to customers. Enterprise agents interact with hundreds of different customers each day and hear first-hand what they like and dislike about the cars that they are given. Enterprise will be able give the e-car the exposure it will need to succeed in the future.
Enterprise Rental Cars would make a viable choice for a processing center for the e-car prototypes as agents from Enterprise have the advantage of knowing what customers are looking for in a vehicle. Having Enterprise agents as our beta testers will give us the opportunity to service a wide range of customer preferences.
2. This test will open up such channel market segments as socio-demographics which will include age, education level, status and how they use the vehicle (taking kids to school or going to school). Another very good channel market segment will be the environmental concern over their personal interests. Also, to see if the subjects will choose to do what is right instead of what will be economically beneficial, this part of the segmentation will be where choosing preserving the environment over traveling speed will play a major role. Additionally, compatibility to each of the subject’s lifestyle which will answer the question, is the eCar good for everyone? Or will the eCar fit the appealing criteria to the different subjects? It is very important to find out if the person who goes to school, work and run errands everyday will benefit from having the eCar and if it is a good fit to his or her lifestyle.
3. A well-developed marketing campaign does not only connect you with the right estimates, but it gets people talking about your company, product, or your service. Although marketing mistakes can just as easily cause your business more harm than good.
One of the biggest mistakes than can be made in the electric car’s marketing is the lack of research and testing. Research and testing should define the performance of every marketing effort. It takes the guesswork out of what any potential consumer wants. We wouldn’t want to advertise that our car can go for 150 miles in one charge when in fact that number is closer to 100.
Another major marketing mistake is thinking that the customers only care about getting the lowest price. Consumers care about getting the best value for their money, they want to feel comfortable with their purchase, and know that they got what their money’s worth. It is wrong to believe that customers base their decision solely on the price of the product. To make a decent marketing campaign for a product like the eCar, things like quality, durability, and mileage are to be taken into account, instead of just a low price tag.Finally, the biggest mistake of all is the lack of focus on potential customer’s needs. Very few businesses have a good understanding of what it is that their consumer needs from them. For an eCar to be successful we need to know who we are marketing it to, and what they want from such a product. If people are going to use it mostly for short-distance commuting, work, school, and plan accordingly.
4. To answer if it would be feasible to sell 200-400 electronic cars every year, let’s start making emphasis on market segmentation, which divide the market by customer profitability and preferences. Also, let’s mention some of the advantages and disadvantages of electronic Cars. The disadvantages of them are: They are more expensive than gasoline and hybrid electric vehicles; Availability of recharging infrastructure; Range and Power; and Space and Performance Issues. The advantages are: Low operating cost; Pollution; Energy efficiency; and Safety Benefits. Now that we all know the advantages and disadvantages of e-cars lets think about North America consumer preferences and profitability. In my opinion, it could be possible to sell them in the future but not now. Power and range won’t be an Issue ever for short-distance drivers; people who will use it to work and pick kids up, go shopping, and go to school. But, if we focus in North American consumers, range is an issue now that should be improved to sell e-cars in the future because sometimes we are force to change our daily routine and drive more. The charging process is an issue now, we don’t have enough time to spend 30 min charging the battery in a gas station and gas stations aren’t giving that service yet. Also, people could forget to plug-in their car at home or need to use it again without been fully charged. This car doesn’t work for long distance trips which is another issue related to range. So, now range and power are an issue that needs to be fixed to sell those cars in the future. We also have to focus on North American profitability and electronic cars prices. In my opinion the price of those cars are very expensive and American people are not willing to pay that money to have an e-car, this statement is also supported by Nielsen for the Financial Times has shown that 65 percent of Americans are not willing to spend more than US$5,000 on a green vehicle above the price of a petrol car despite their concern about the environment.
Safety Benefits: Due to the weight of the battery the E-cars are heavier vehicles. In a collision, the occupants of heavier vehicles may suffer less serious injuries than lighter vehicles. Now that we all know the advantages and disadvantages of e-cars let’s think about North America consumer preferences and profitability. Considering power and range, this car could be useful to who need it for short-distance; people who will use it to work and pick kids up or go shopping, to go to school, utilities and local authorities. The electronic cars power is not a problem because 60 mph is more than a legal speed limit in United States. Range should be improved because sometimes we are force to change our daily routine and drive more. The charging process could be an issue because sometimes we don’t have enough time to charge the battery. It is impossible for the majority of North America residents to spend around 30 minutes charging the battery in a gas station; people who go to work full time and then go to school during the night or pick up kids after work plus other personal problems could forget to plug-in their car at home or need to use it again without been fully charged. Another related issue about range is that sometimes you plan long distance family or friends trips for which you need a car with more range and power. Will you buy a second car for those trips? Are you happy with renting a car any time you need to drive more than 100 miles? We also have to focus on North American profitability and electronic cars prices. In my own opinion the price of those cars are very expensive. The majority of North Americans can’t pay, for example $32,000 for the Chevy Volt, especially if they can get the Chevy Malibu, which is the same brand and same size car, for $10,000 dollars less. I also think this is a high price that companies won’t be willing to pay for their employees’ car. A survey taken by Nielsen for the Financial Times has shown that 65 percent of Americans and also a report by J.D. Power and Associates claims that about 50 percent of U.S. car buyers are not even willing to spend more than US$5,000 on a green vehicle above the price of a petrol car despite their concern about the environment.
5. As far as differentiating ourselves and our brand from our competition with the use of modern technology, I agree 100% with entering the market without further hesitation. While our competitors are in the blueprint phase of development, we should release our electric vehicle now, ahead of the game, and make the most important component of our product, the motor, interchangeable so as to adapt to future, more advanced modifications and innovations. By partnering with Samsung, the current number one android cell phone manufacturer in the U.S, we can offer our potential customers the latest in accessibility in global positioning. A partnership with Apple, the current leader in cell phone manufacturing, would be ideal but would obviously be more expensive and that would mean passing the price increase onto our customers. Since we are still in the beta-testing phase of manufacturing, we should be fine by locking up a deal with Apple’s number one competitor and an increasing market share challenger due to its technological innovations. Samsung has long been known as a highly innovative company with cutting edge features and reliable products. It has maintained a lead in the very competitive sales of HDTVs for the past 3 years and has the number one sales-expected television for this upcoming year (2011). GPS on smart phones is no longer an emerging trend but an in-demand necessity. Since we plan on marketing our product with the most advanced, must-have technological features to compensate for the current lack of viability, affiliating ourselves with a reputable name in the technological world makes perfect sense. The word may still be out on the marketable future of the electric car but many customers have spoken on features needed and expected in any/all automobile purchases. One of those is the GPS and with current GPS-only manufacturers such as Garmin and Tom-tom seeing less and less sales due to the standard GPS built-in feature of all smart phones, Samsung will help us attract the market segment(s) we desire while introducing our company among their loyal, ever-growing customer base.
6. A unique situation segmentation problem would be the cold temperature in Canada. Electric cars have more batteries than a regular gas car, and its performance relies on the batteries making a chemical reaction inside of them that are what produces the energy necessary for the car to run. All this is possible at room temperature; when the car is in cold temperature, this chemical reaction is affected and the energy released is greatly reduced and the car might not perform how it is supposed to, or the battery might even seem dead when it is really not. this car, which is only capable of an 80 miles of range per charge and top 60 miles per hour in optimum weather conditions, would not be successful in this market because it would lose a lot of its performance due to weather issues that affect this country year round. Research states that it would lose up to 50% of its performance in a 10 degree temperature drop from room temperature. That would mean that Canadians that purchase this car would have to deal with a vehicle that only goes 40 miles in range per charge, and up to only 30 miles per hour. This car would not be able to compete in the Canadian car market because it would not be efficient, nor match up to the popular cars in this market already.
7. We would focus on the American World electric Vehicle market first, instead of the Indian or Chinese WeV, for many reasons. The main reason being is that the North American electric car market is an emerging and rapidly growing business opportunity. It is at its earliest stage of development, where start-ups and venture capital companies can enter the market easily and competitively. It is therefore in our best interest to focus on becoming the earliest and lowest price electric vehicle in North America, to penetrate the market before it matures and drive innovation for future electric vehicle technologies. Another reason would be the technologies and capital needed by institutions to accommodate the growth of electric vehicles, such as campuses and business complexes which would integrate charging stations. This would be less feasible in other countries with less interest in the market and green movement. The purpose for cars in North America is also very different than other countries, which may suit the electric car market more than focusing first on India or China.