Market Strategy for the New Car

The new product is the new car that uses hydrogen as the fuel. The new car is the alternative to conventional cars, including electric cars. The advantage of the new car is the renewable fuel and environment friendliness. However, as the new product requires the use of advanced technology that increase costs of the product.

Market Segmentation

Demographics of the new product are middle-class, young adults and adult customers concerned with environmental issues, who want to have advanced cars and want to use new technologies that can minimize their environmental footprint. The target population consists of young adults and adults at the age of 25-45 because they are young and ready for experiments with their cars. They are active buyers interested in innovative, unconventional products. The distinct feature of the target customer group of the company is that they look for environment friendly products and are aware of the negative impact of cars on environment.

The expected customer behavior involves the growing interest to the product that is environment friendly and safe. Also the product is destined for customers interested in innovations. The car will be oriented on mass customers. The car will be oriented on the medium, mass segment of the market. The car will have the price above the average in the market because of higher costs of production used for the manufacturing of the new car. As the new car uses hydrogen fuel, it uses absolutely new technology, different from the conventional technology since conventional cars use gas or diesel. The hydrogen car is also an alternative product to electric cars which still use electricity that means their use is also not as environment friendly as hydrogen car which uses hydrogen available in abundance at the moment, while there are no dangerous emissions of the car. Environment friendliness is the key, strategic, competitive advantage of the new car.

Target Markets

The market coverage strategy focuses on the mass market of the US first, with the possible expansion to Canada. The US market is the major target market for the company due to the high level of consumption of innovative products, high environmental concerns of customers, and well-developed supply chain and distribution networks along with the availability of advanced, high tech productions. At first, the product will be available in large cities of the US, like New York, Los Angeles, and others. The largest cities of the US are the primary target markets for the new car because of the well-developed transportation system, high demand and wide opportunities of distribution along with the possibility of collaboration with gas station, where hydrogen fuel may be distributed to fuel the new car.

Positioning

The new product will be positioned as the new car model available to the mass customers. The product will be positioned as innovative and environment friendly car model that gives customers functionality, innovation, low cost of fuel, reliability and no negative environmental impact because of the use of hydrogen fuel and recyclability of many of its parts. In such a way, the car will be attractive to customers interested in the environment protection and eager to try new technologies as well as to save on fuel, although they will have to pay the price slightly above the average compared to similar cars in the market using conventional fuel. The positioning of the new car involves the development of the product oriented on the new niche in the car market. The new product will use the absolutely different fuel that is the major advantage of the new car and makes it different from rivals.

References:

Brown, D. C. (2003). Leading complex change. New York: Touchstone.

Dessler, G.  (2004). Management: principles and practices for tomorrows’ leaders (3rd ed.). New Jersey: Upper Saddle River.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 28, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]
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