Team:

theSX

Arthur AnglinCy AvilaSarah Barnes Davin Green Juliet Helms Dailey HunterNathan Reed

Consumer BehaviorDr. Donna Kantak

Wednesday June 23, 2010

Target Segment:

Our Recommendation

We’ve 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.

-teenfashion.about.com

Target Segment:

Substantiation

• Identifiable: 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/Political

• Tax Benefits Offset Additional Cost of Hybrid Cars• Eligible for up to $2,350 tax credits

• Additional Incentives for Buying Hybrid Cars• 36 states offer some kind of rebate, incentive or

benefit• Google is offering $5,000 to each employee toward

the purchase of a new hybrid

• Hybrid Cars Gaining Popularity• In 2005, American car dealers sold more than

205,000 hybrid cars and SUVs.• http://www.irs.gov/businesses/corporations/article/0,,id=214280,00.html

Environmental Factors:

Economic

• The automobile industry has been severely affected by the economy

• Auto prices are low, so now is a good time to buy• Hybrid 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.

Environmental Factors:

Economic

Teenagers 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/Cultural

•“A new generation of green leaders”• EPA program motivates students to come up with innovative

solutions to meet today’s pressing environmental challenges•“Are 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 animation•“Green generation”• The 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 environment• Day after tomorrow• Wall-E

Environmental Factors:

Technology/Competition

• New 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- it’s sexy and smart

Key Traits:

Demographics

• Middle to upper middle high school kids and their parents• 50K to 100K household income• Encompasses about 3% of US population

15 to 17 years12,040,437

18 and 19 years8,179,453

20 years4,049,448

Age 14 to 17

5.70%

Age 18 to 20

4.40%

$50,000 to $59,999

9.00%

$60,000 to $74,999

10.40%

$75,000 to $99,999

10.20%-US Census 2000

Key Traits:

Family

• American small families with one or few children• White collar society

• Homeowners• Place importance on new vehicles

Key Traits:

Personality• Young environmentalist• Financially conservative• Image Conscious, borderline Vain

• Prius owners “buy a Prius because it makes a statement about themselves”

• Adventurous• Demanding and Opinionated

• Capable of building an argument for parents• Academic• Trendy

• Individualist, Following Sustainable Culture• Green is Trendy

Key Traits:

Attitudes• Wants a car that represents them

• Wants a car that goes with current trends• Compatible with technology• Green, efficient• Highly customizable

Key Traits:

Lifestyle• Places importance on:

• Social Acceptance• Academics/Intelligence• Sustainable Living• Outward Appearance• “Underground-ness”

• Activists toward change• Stray from Mainstream

Key Traits:

Culture/Subculture• Culture

• American• Subculture

• Family Traits• White Collar

theSX:

Product• theSX is almost entirely made up of recycled and

recyclable materials • theSX utilizes the latest in safety features including:

• Run flat tires• Blind spot detection• Rearview camera • Rollover prevention/mitigation• Emergency brake assist• Adaptive headlights• LED taillights• Emergency response system (ERS)

theSX:

Product• Introducing the Hands Free SX- a fully integrated voice

interactive system• Entertainment• Navigation• Communication

• Fun to drive with impressive acceleration and sport handling

theSX:

Price• The kids want it, the parents want to buy it.

• Average amount spent on new car for kids• ~$15,500• Honda Civic, Scion tC, and Acura TSX some of the

most highly recommended and purchased for target segment

• theSX Price• Base: $17,000• Available upgrades including hundreds of accessories,

customized by order can increase price up to $25,000 plus

-LeaseGuide 2010, Consumer Reports 2009

theSX:

Distribution• Stand alone showrooms • Small showcase of cars, and customers place orders for

purchase• Both website and showrooms allow for almost limitless

customization (i.e. the dell model of distribution)

• http://www.miniusa.com/#/build/configurator/mini-m

theSX:

Promotion• Attractive 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 malls• Guaranteed greenness (warranties)• Creative advertising –

• Placement of ads in• Magazines such as: Popular Science, Sports

Illustrated, Seventeen, Cosmo Girl, The YM• green blogs

• Facebook and Google keyword ads towards environmentalists, and our target segment