Team: theSX ï¶ Arthur Anglin ï¶ Cy Avila ï¶ Sarah Barnes ï¶...
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Team: theSXArthur AnglinCy AvilaSarah Barnes Davin Green Juliet Helms Dailey HunterNathan Reed
Consumer BehaviorDr. Donna KantakWednesday June 23, 2010
Target Segment: Our RecommendationWeve chosen to target middle to upper middle class teenagers and young adults. This segment is generally in the market for their first vehicle. In most cases, the parents are funding the purchase.
This segment is adopting green trends faster than any other segment. They are also encouraging older generations to adopt green trends such as buying hybrid vehicles.
Target Segment: SubstantiationIdentifiable: Teenagers between the age of 15-20 from upper middle income families who subscribe to sustainable lifestyles or green trends
Stable: There will always be teenagers looking for their first car in the market
Sizeable: Encompasses about 3% of US population, approximately 9.2 million people
Accessible: The teenage market is more predictable in both their spending habits and their exposure to advertising (personal, impersonal)
Congruent: Making affordable, attractive, safe, and environmentally responsible vehicles
Environmental Factors: Legal/PoliticalTax Benefits Offset Additional Cost of Hybrid CarsEligible for up to $2,350 tax credits
Additional Incentives for Buying Hybrid Cars36 states offer some kind of rebate, incentive or benefitGoogle is offering $5,000 to each employee toward the purchase of a new hybrid
Hybrid Cars Gaining PopularityIn 2005, American car dealers sold more than 205,000 hybrid cars and SUVs.http://www.irs.gov/businesses/corporations/article/0,,id=214280,00.html5
Environmental Factors: EconomicThe automobile industry has been severely affected by the economyAuto prices are low, so now is a good time to buyHybrid cars are extremely attractive to the teenage driver, because the parents will pay for the initial cost of the car, but the upkeep cost is minimal.6
Environmental Factors: EconomicTeenagers have been disproportionally more affected by the disappearance of jobs in the US economy, so now more than ever they are looking to purchase lower priced fuel efficient cars.
Environmental Factors: Societal/CulturalAnew generation of green leadersEPA program motivates students to come up with innovative solutions to meet todays pressing environmental challengesAre environmentalists scaring your kids?A video circling around schools to explain how America is destroying the planet. Specifically made to appeal to kids, with child like animationGreen generationThe current generation is the first to have grown up entirely in a world confronting global climate change.Surge of Media and Entertainment centered around awareness of environmentDay after tomorrowWall-E8
Environmental Factors: Technology/CompetitionNew technology is promoting awareness of environmentally friendly automobile
These days research is more geared toward the development of vehicles that will reduce their impact on the environment
The new features of hybrid cars are making them more attractive to the traditional car owner and making the transition to owning a hybrid even easier(Competition) The SX has the best of both worlds- its sexy and smart9
Key Traits: DemographicsMiddle to upper middle high school kids and their parents50K to 100K household incomeEncompasses about 3% of US population
15 to 17 years12,040,43718 and 19 years8,179,45320 years4,049,448Age 14 to 175.70%Age 18 to 204.40%$50,000 to $59,9999.00%$60,000 to $74,99910.40%$75,000 to $99,99910.20%-US Census 200010
Key Traits: FamilyAmerican small families with one or few childrenWhite collar societyHomeownersPlace importance on new vehicles11
Key Traits: PersonalityYoung environmentalistFinancially conservativeImage Conscious, borderline VainPrius owners buy a Prius because it makes a statement about themselvesAdventurousDemanding and OpinionatedCapable of building an argument for parentsAcademicTrendyIndividualist, Following Sustainable CultureGreen is Trendy12
Key Traits: AttitudesWants a car that represents them
Wants a car that goes with current trendsCompatible with technologyGreen, efficientHighly customizable13
Key Traits: LifestylePlaces importance on:Social AcceptanceAcademics/IntelligenceSustainable LivingOutward AppearanceUnderground-nessActivists toward changeStray from Mainstream
Key Traits: Culture/SubcultureCultureAmericanSubcultureFamily TraitsWhite Collar15
theSX: ProducttheSX is almost entirely made up of recycled and recyclable materials theSX utilizes the latest in safety features including:Run flat tiresBlind spot detectionRearview camera Rollover prevention/mitigationEmergency brake assistAdaptive headlightsLED taillightsEmergency response system (ERS)
theSX: ProductIntroducing the Hands Free SX- a fully integrated voice interactive systemEntertainmentNavigationCommunicationFun to drive with impressive acceleration and sport handling
theSX: PriceThe kids want it, the parents want to buy it.
Average amount spent on new car for kids~$15,500Honda Civic, Scion tC, and Acura TSX some of the most highly recommended and purchased for target segment
theSX PriceBase: $17,000Available upgrades including hundreds of accessories, customized by order can increase price up to $25,000 plus
-LeaseGuide 2010, Consumer Reports 200918
theSX: DistributionStand alone showrooms Small showcase of cars, and customers place orders for purchaseBoth website and showrooms allow for almost limitless customization (i.e. the dell model of distribution)
theSX: PromotionAttractive payment plans for the parents (low interest over a long period of time)Sponsoring high school events (i.e. funding model UN)Raffles at high school football games and local mallsGuaranteed greenness (warranties)Creative advertising Placement of ads inMagazines such as: Popular Science, Sports Illustrated, Seventeen, Cosmo Girl, The YMgreen blogs Facebook and Google keyword ads towards environmentalists, and our target segment 20