Smart Car Market Analysis

Topics: Mercedes-Benz, Smart, Smart Fortwo Pages: 22 (7441 words) Published: February 17, 2011
By INHolland Haarlem

Marketing strategy and report

University of applied sciences INHolland Haarlem.

Authors: Ms Lily Sombroek Mr Gökhan Gündüz Mr Milan Bijl Mr Nick Roeten Mr Levi Meyer

IBMS year 1 term 2 Project group 3 INHolland Haarlem University of applied sciences

07-01-2011

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By INHolland Haarlem
Authors: Ms Lily Sombroek Mr Gokhan Gunduz Mr Nick Roeten Mr Milan Bijl Mr Levi Meyer Class: Ib1b Subject: Introduce a marketing strategy for Smart. Course: International Business Management & Studies. School: Inholland Haarlem, university of applied sciences Teachers: Mr Rudolph Wilson, Mr Gijs Vlas and Mr Karl Philips Date of completion: 07-01-2011

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By INHolland Haarlem

Executive summary
This report is the result of the research about the small car market and how Smart has been operating in it recently via interviews with Smart dealers, a survey and the official website of Smart. The goal of the research was to figure out what could be improved or changed to increase sales and get a bigger market share for Smart. Smarts mission is to become leader in the small car market with the Smart fortwo. In the past there were more types of Smart like the Smart roadster and Smart forfour. After disappointing sales figures, Smart decided to focus on what they became famous for, the small, diverse city car, Smart fortwo. In the past decade the Small Car Market (SCM) has grown rapidly due to new trends and customer awareness of the environment and customer budgeting. The analysis of the macro environment shows that this is one of the best times for car manufacturers to enter the small car market. Government are stimulating citizens to buy ecofriendlier cars. The technological advances made on the green car market have opened a lot of doors, concerning electric drive, use of new materials and improving safety. Economically we are still in a crisis but this has turned out as an opportunity for the small car market as customers are looking to save money on fuel expense and unnecessary features and therefore there has been an increase in the sales of small cars. The target group of Smart can be segmented in geographical, demographical and behavioral aspects to get an insight in the customer profile. Trends concerning cars show that the public is looking for more fuel efficient, greener cars. Furthermore manufacturers want to erase the feeling that small cars are not safe. Smart is expanding their market to America in 2012 with the smart for4. Smart is expected to expand their market share. Other small car manufacturers pose a big threat for the market, in which Smart started out as a leader. The competition analysis shows that Smarts market share in de small car market has decreased in the last 5 years. Although Smart has the most options for the customer concerning customization and uniqueness in design, they have not been able to compete with the overwhelming competition selling their cars at a lower price. Another factor contributing to the low sales of Smart is the low promotion policy. Global corporate social responsibility studies show that customers are more likely to buy a product from a social and sustainability responsible company. Target groups are affluent people, that can afford to buy a Smart as a novelty next to their Mercedes. Another target group is companies. Smarts are ideal for businesses as they can be customized and stand out. Also people that live in urban areas, that like to be mobile and that can think outside of the box. Smart as a brand has been losing reputation over the past decade. Appearing on the car market as a new innovative product, the public seems to have decided that smarts are not exactly what they seem to be. A survey thorough monkeysurvey.com has shown that people have awrong impression about what Smart is.

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By INHolland Haarlem
SWOT martrix analysis shows that the greatest opportunities for Smart lie in the ecofriendly market. This way Smart can reclaim...
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