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the future of electric vehicles! 
the renault twizy case 
is milan ready for the future? 
Alessio Aristide Di Salvo 
1656719 
Mattia Deserti 
1655570
business case set-up
general overview 
the renault twizy case 
“Given the role that transport plays in causing greenhouse gas emissions, 
any serious action on climate change will zoom in on the transport sector” 
Yvo de Boer, Executive Secretary of the UNFCCC 
Tokyo, January 2009 
Cities like London or Amsterdam are already investing 
on the development of Electric Vehicles’ culture 
In our research we will analyze if Milan is ready to follow 
the sustainable trends and eventually anticipate them 
We are going through it by assessing the Milaneses 
predisposition towards the iconic Renault Twizy and its 
profitability
general overview 
the renault twizy case 
Cities like London or Amsterdam already massively investing on 
the development of Electric Vehicles’ culture 
charging points in 
european panoramic! 
The city of Amsterdam has ambitious european capitals! 
environmental targets and plans for 10.000 
electric vehicles in the city by 2015. 
§ London 
857 
§ Oslo 
735! 
§ Paris 
458! 
§ Amsterdam 
245! 
§ Barcelona 
76! 
§ Dublin 
66! 
London is continuously increasing the 
number of charging points along the city’s 
streets, planning to reach 1.300 point by 2013.
general overview 
the renault twizy case 
In our research we will analyze if Milan is ready to follow the 
sustainable trends and eventually anticipate them 
e-moving project! 
an experimental project, in partnership with Renault, driven by 
the Italian energy supplier A2A 
since electric vehicles represent the future of transportation, the 
purpose of the project is to provide an efficient system of 
charging points that will allow a synergic development of the 
market 
the project involves at the beginning the cities of Milan and Brescia. 
In the long run the aim is to create a wider network of the main 
Lombardy’s cities (e-mobility point-to-point) 
31 charging 
points in Milan!
general overview 
the renault twizy case 
We are going through it by assessing the Milaneses predispositions 
towards the iconic Renault Twizy and its profitability 
a living city! 
a trend setter city in which fashion is a relevant factor 
that plays a fundamental role in the daily routine 
since Twizy is a completely new concept of transport 
and, as an electric vehicle, takes care of the 
environment, we would like to measure how 
Milaneses perceive this innovation
geo/demo-graphics 
the renault twizy case 
C Area involves the “Cerchia dei Bastioni” zone 
and 77.000 inhabitants. It doesn’t seem to be 
appreciated by Milaneses. 
" 
Somebody is also concerned about the real 
impact that this measure has on the environment. 
Residents in Milan! 
Male 
Female 
628.654 
695.45648%! 
Milan is the second most 52%! 
populated city of Italy 
8,3 km2! 
1.324.110 inhabitants
what is a pure EV 
the renault twizy case 
An electric vehicle (EV), also referred to 
as an electric drive vehicle, uses one or 
more electric motors or traction motors 
for propulsion. 
it doesn’t have to refuel in a petrol station, 
instead the battery can be charged at 
home, work or at a public charge point 
as advised by manufacturers, most electric cars 
currently available have a range of up to 100 miles 
the majority of the latest EVs now entering the 
market are M1 class passenger cars, which must 
meet all EU requirements for cars including 
international car crash test standards 
the average range an EV could go before 
the battery runs out is certainly enough to 
get where you need to go in town
electric vs gasoline 
the renault twizy case 
electric!gasoline! 
no tailpipe emissions 
utility company 
100+/- km range 
hours to recharge 
0,015 euros per km 
greenhouse gases/pollution 
OPEC 
300+ km range 
minutes to refuel 
0,17 euros per km
the use of EV 
further more we think that brand attitude is focused on environmental-friendly 
aspects of electric vehicles. What if the key success factor 
be the cheapness? 
the renault twizy case 
factors that affect it 
battery autonomy does not allow heavy car users to drive for more 
than 150 km 
institutions don’t give the right importance to the development of the 
electric culture and stimulate the electric car demand like in other 
countries with proper investments
the renault twizy 
the renault twizy case 
ultramobile all-electric two-seater vehicle 
homologated as a quadricycle 
a range of 100 km over a standard urban cycle 
and can be fully recharged in 3 ½ hours from a 
domestic socket, using a spiral cable located 
under the flap at the front of the car 
2.34 m long! 
1.24 m wide! 
1.45 m tall! 
A sporty, elegant and compact urban vehicle! 
modern design; open bodywork with sweeping 
lines, original (optional) gull wing doors, a 
windscreen and roof forming a large glazed 
area, as well as lights creating an original 
lighting signature
market structure 
the renault twizy case 
industry! 
Incumbents pushed by CARB and EU regulation 
New entrants enter relatively late 
price/performance ratio limits EV 
technology! mass market appeal 
market! Tradeoff between range/speed and costs 
Convergence toward Li-ion batteries 
Niche markets sought for LSV and sports cars 
Early adopters are supported by tax schemes 
Firms initially uncertain about 
technological options 
New entrants focus on niche markets 
Incumbents target mass markets
competition framework 
quadricycle market segment! 
Renault Twizy 
Estrima Birò 
Other 
the renault twizy case 
Twizy is the leader of the 
category. With more than 
79% of market shares it 
represents the most sold EV 
in Italy. 
sales in 2012 
1421 units 
price from 
6.990 € 
Birò is the main competitor of 
Twizy. However its 
characteristics diminish its 
potential threatening power 
sales in 2012 
261 units 
price from 
7.500 € 
79% 
15% 
6%
the renault twizy case 
competition framework 
extended market segment! 
The electric vehicles market is composed also of other cars, that differ from the Twizy in price 
and characteristics. Below a selection of the most diffuse models: 
Nissan Leaf! Citroen C-Zero! Peugeot iOn! 
sales in 2012 
102 units 
price from 
38.500 € 
sales in 2012 
112 units 
price from 
28.318 € 
sales in 2012 
140 units 
price from 
28.321 €
business aim
research question 
measuring the aptitude of milan’s 
citizens in changing their mind to 
more eco-sustainable vehicles 
the renault twizy case 
measuring the inclination of milan 
to drive the change 
measuring the profitability of 
renault twizy in milan 
is milan ready for the future? 
1! 
2! 
3!
target population 
the renault twizy case 
We decided to apply a stratified method to our target population in order to define the 
sample. 
MALE 
FEMALE 
TOTAL 
18-24 
38.473 
25% 
35.334 
22% 
73.807 
47% 
25-30 
41.900 
27% 
40.797 
26% 
82.697 
53% 
TOTAL 
80.373 
52% 
76.131 
48% 
156.504 
100% 
We will take into 
consideration the 
proportions of the 
target in designing 
our sample. 
At the launch of the product Renault aimed mostly to 30-50 target. We think that it would 
be profitable to focus on a lower age range. 
The change could 
start from them.
the renault twizy case 
threats and opportunities 
The Twizy personality may drag it in a completely new market segment that 
hasn’t already defined shapes: neither a specific target nor a precise positioning 
threats! 
the particular nature of Twizy may cause 
confusion in the consumers’ minds: they 
might not be able to perceive the added 
value of the vehicle 
opportunities! 
the market is at an early stage of 
development 
the presence of more conventionally-designed 
electric vehicles may pull 
consumers towards a more traditional 
purchase approach 
define a new segment and be the 
category leader 
exploiting the benefits of being the first 
mover, making the other brands irrelevant 
take advantage of the new concept 
design may allow Renault to introduce an 
innovative way of conceiving cars
questionnaire set-up
the questionnaire 
the renault twizy case 
screening 
environment perception 
citizens and the city of Milan 
electric vehicles 
renault twizy 
general/socio information 
SECTION! 
1 
2 
3 
4 
5 
6 
TYPE OF SECTION! OBJECTIVE! 
assessing respondents’ current car ownership and 
forecasting their intention to buy for a conventional car 
measuring attitude towards general environmental issues 
how do Milaneses perceive the environmental situation of the 
city? what about the solutions? 
assessing knowledge and attitudes towards electric vehicles" 
(conjoint, brand awareness, willingness to switch) 
measuring the potential profitability and appeal of the product 
defining customer profiles 
Q_n! 
1-4 
5-6 
7-11 
12-21 
22-25 
26-30
fieldwork 
the renault twizy case 
distribution method! 
for our interviews we used CAWI, for it being more 
comfortable for the respondents as well as for us. 
we based our questionnaire on the Qualtrics Software, 
submitting the link to a total of 205 interviewees 
pre-test! 
initially, we tested the questionnaire on 5 people. 
we received positive feedbacks both on the structure 
of the questions and on the length of the questionnaire
analysis
sampling error 
the renault twizy case 
Male 
Female 
Total 
20-24 
49 
(24%) 
53 
(26%) 
102 
(50%) 
25-30 
54 
(26,5%) 
48 
(23,5%) 
102 
(50%) 
Total 
103 
(50,5%) 
101 
(49,5%) 
204 
(100%) 
§ we collected 205 questionnaires but deleted the first respondent because he/she 
completed just half of the questionnaire 
§ previously our target population was 18-24 and 25-30, but since we did not manage to 
have respondents under 20, we decided to reduce our sample age between 20-24 and 
25-30 
§ we selected our respondents as resident or citizens of Milan so we respected the initial 
aim. The expectation is that the sample is very representative of the population.
data auditing 
the renault twizy case 
Since the willingness to pay is the variable the most affected by outliers, we decided to start 
from here for the data auditing. The current plots don’t give us the opportunity to find 
reliable business insights. 
How much would you be willing to pay 
for a petrol/diesel fueled car? 
How much would you be fair price 
for an Electric Vehicle? 
Final Range 
2.000 – 60.000€ 
Final Range 
2.000 – 30.000€ 
30.000€ 
From a business 
point of view we 
decided to keep 
these values since 
they represent a 
reasonable market 
price for an EV.
data auditing 
the renault twizy case 
How do you feel toward ecology 
In analyzing this question we 
didn’t take outliers into 
consideration because the 
values out of the box-plot 
were affecting badly both the 
mean and the Std. Deviation.
data auditing 
the renault twizy case 
question 6 
Concern about environmental issues 
We found out that the 
outliers for these questions 
were always almost the same 
respondents; this fact was 
negatively affecting our 
results.
data auditing 
the renault twizy case 
checking goodness of data 
(Q_8_4) Give a score to the township effort in 
solving the previous issues 
(Q_30_9) How do you consider yourself 
(Q_16_4) Why would you not buy an Electric 
Vehicle 
We performed the box plot of question: 
§ Q_8_4 
§ Q_30_9 
§ Q_16_4
demographic nationality 
the renault twizy case 
97% 
3% 
Italian 
Non-Italian 
The majority of interviewees are 
italians with 6 of them being non-italians. 
In order to better fit the aim of our 
research, while submitting the 
questionnaire we carefully selected 
respondents as inhabitants of Milan. 
We observed 2 missing values. 
univariate analysis
the renault twizy case 
demographic gender 
50,50% 
49,50% 
Male 
Female 
univariate analysis 
We tried to maintain the 
ratio of the target population 
(Istat data*) with 103 males 
and 101 females. 
* 52% male 
48% female
the renault twizy case 
demographic age range 
50,00%50,00% 
18-24 
25-30 
univariate analysis 
The pie chart shows a perfect 
distribution of the age between 
our two ranges, not far from 
our target population. 
(47% 18-24, 53% 25-30)
the renault twizy case 
demographic occupation 
univariate analysis 
Our target population is well balanced 
between students and non students. 
54% 
20% 
5% 
14% 
7% 
Student 
Freelance 
Entrepreuner 
Employee 
Other 
Twizy is an innovative vehicle that fits well 
the lifestyle of people living in Milan, just like 
students or workers. Anyone that could 
need a fast and smart vehicle.
the renault twizy case 
environment attitude & issues 
With Question 5 we tested general 
attitude of respondents towards ecology. 
As the histogram shows, participants 
were highly concerned about ecology. 
The issues were rated quite similarly with the mean ranging 
from 7.07 to 8.20." 
" 
Nevertheless, Air Pollution is perceived slightly higher than 
the other environmental issues (with regards to Std. 
Deviation and Skewness) 
univariate analysis
the renault twizy case 
environment attitude & issues 
bivariate analysis (attitude * occupation) 
Do attitude towards environment change with occupation?! 
H0 attitude towards ecology do not change with occupation 
H1 occupation influences attitude towards ecology 
results! 
With a significance at .035 we reject H0. Since we observed an Eta Squared 
value equal to .051, the relation is quite weak. 
business! 
insight! 
Since occupation does influence the attitude 
towards ecology, it should be taken into 
consideration in defining the target customer.
the renault twizy case 
environment Milan issues 
(Q_7) Regarding Milan, which are in your opinion the most critical issues? Please rank them in order 
With question 7 we asked to rank the most critical issues of Milan. The 
results show that Air Quality has been rated as most critical. This outcome 
is aligned with the insights of Question 6 where Air Pollution registered the 
highest mean value. 
Therefore, this variable seems crucial to us, given 
the fact that Twizy is a Zero Emission vehicle. 
business! 
insight! 
results! 
univariate analysis
the renault twizy case 
environment Milan issues 
univariate analysis 
How do citizens perceive the efforts of the township in solving environmental issues? ! 
Respondents rate them as being very poor. Especially, as results show, Parking 
and Acoustic Pollution seems to be the worst. 
How may these results affect our research?! 
Since Twizy is easy to park thanks to its dimensions and has a silent engine it may 
be the best solution for both these issues.
the renault twizy case 
environment Milan air quality solutions 
What are the best solutions for air quality in Milan?! 
RANK! VARIABLE! FREQUENCIES! 
Public transport 
1empowerment 
2Electric Vehicles 
3Bike sharing 
Congestion Charge 
4(Area C) 
Restrictive control on 
5non-catalytic vehicles 
87 
65 
53 
55 
89 
univariate analysis (mode) 
These results can be taken into account for 
further business implications. 
With question 9 we asked 
respondents to rank the best solutions 
for air quality among the five listed. 
At first place we find public transport 
empowerment that is an obvious result 
for a metropolis. 
Electric Vehicles ranked as second 
thus depicting them as a great 
solution for air quality.
the renault twizy case 
35% 
60% 
5% 
car 
engine 
Diesel 
Petrol 
Hybrid 
transport car ownership 
(Q_1) Do you own a car? 
We observed 13 missing values. 
The interviewees that answered ”I don’t 
own a car” are 26: we could assume that 
13 of them considered their family car in 
specifying the car engine, while the 
remaining 13 do not own a car at all. 
Please specify your car engine. (Q_2) 
univariate analysis
transport most used 
120 
100 
80 
60 
40 
20 
0 
Car 
Motorcycle 
Bicycle 
Public Transport 
the renault twizy case 
More than half of respondents prefer 
Public Transport as means of 
transport in Milan. 
26,5% 
11,3% 
6,9% 
55,4% 
(Q_11) Which is the means of transport that you use THE MOST in Milan? 
However the 26,5% of respondents use 
mostly the car as means of transport. If 
we consider the Milan’s overall population 
between 18 and 30 years old, the relative 
catchment area could be roughly about 
41.000 customers 
univariate analysis
the renault twizy case 
transport most used vs ideal 
bivariate analysis - ideal means * most used means (crosstab) 
We may notice a paradox in this crosstab: although 
ranking the last as the ideal means of transport (3,9%), 
car was selected as the second most used (26%). 
We can confirm the hypothesis stated on the previous 
slide, that is, the car market is still a huge profitable 
pool of customers.
the renault twizy case 
EVs willingness to buy 
would you buy an electric vehicle? 
Yes 
No 
In answering the question, why would 
you not buy an electric vehicle, the 
majority of the respondents identified 
the lack of charging points as the main 
reason. 
business! 
insight! 
Following the example of cities like 
London and Oslo, might serve as a 
great boost to the performance of the 
market. 
results! 
univariate analysis – would buy an electric vehicle? why not?
the renault twizy case 
EVs willingness to pay 
univariate/bivariate analysis (correlation) 
20.000,00 
15.000,00 
10.000,00 
5.000,00 
0,00 
WTP for a petrol/diesel 
car 
WTP for an electric car 
17.788,89 
12.811,11 
€ 
Std. Deviation 
7.917,867 
Std. Deviation 
5.364,677 
As the data show, the WTP for an Electric Vehicle 
is sensitively lower than the WTP for a petrol/ 
diesel car. We think that this result is mainly 
affected by the customers’ knowledge about this 
newly born market. 
As we pointed out in slide 14, the 
mean price for an electric car 
(excluding the quadricycle segment) 
is higher than that expressed by our 
respondents.
the renault twizy case 
bivariate analysis – type of usage * would you buy an EV (crosstab) 
Between those who would be willing to 
buy an EV, the 61,6% would buy it as a 
direct replacement for a car. 
EVs the Change 
What about those who would not be 
willing to buy it? 
43,2% of them would buy it in addition 
to another car. This suggest us that they 
still perceive a far distance between a 
conventional car and the EV. 
The p-value is significant and the 
Cramer’s V is higher than 0,2, thus 
there is a good degree of relation 
between them.
the renault twizy case 
EVs the Change 
bivariate analysis – (when would you be likely to purchase it)2 (crosstab) 
The Cramer’s V index shows 
a good degree of association 
between the variables (.388). 
The majority of respondents 
would be willing to buy a new 
car/EV in the next 5 years. 
That suggest us that the 
improvement effort should be 
concentrated in this time 
range in order to pull the 
demand.
the renault twizy case 
univariate analysis – Select which of the following brands manufactures EV 
Car Brands! 
With this question we tried to asses the respondents’ 
knowledge about PURE EV manufacturers. 
0 
20 
40 
60 
80 
100 
120 
140 
Volkswagen 
Toyota 
Smart 
Mitsubishi 
Renault 
Nissan 
BMW 
Citroen 
Chevrolet 
59,3% 
38,7% 
There are two important facts about the 
results:! 
§ Toyota was the most selected (121 times) 
though not producing pure EV but just Hybrid. 
We can say that customer recognize Toyota as 
being the most innovative manufacturer" 
§ Renault was the second most selected brand 
(79 times) 
Let’s analyze more deeply 
the phenomenon 
EVs the Manufacturers
the renault twizy case 
Twizy knowledge of the vehicle 
which of the following brands manufacture EV * do you know Twizy (crosstab) 
We noticed a discrepancy in data. 
Within those who did not 
recognize Renault as EV 
manufacturer (Q_13), 85 
respondents answered Yes when 
we asked if they know Renault 
Twizy. 
Business insight 
We can assume that" 
1. Brand Relevance of Renault 
in this segment is not so 
significant " 
2. Renault is not exploiting all 
the advantages of being the 
first mover in the market.
conjoint analysis
the renault twizy case 
Conjoint analysis 
We performed a conjoint analysis on question 21. This method will allow 
us to discover and analyze the key attributes that may affect the 
purchase decision. 
How does the perfect EV look like! 
Through the Orthogonal Design Method, we defined 8 different scenarios 
based on the following attributes: 
SEATS 
2 - 4 
OPTIONAL 
basic - full 
DESTINATION 
main vehicle – in addition 
USAGE 
urban – extra urban 
general overview
the renault twizy case 
Conjoint analysis 
As the table shows, Optional and Purchase 
Destination are the most valuated attributes. 
Unfortunately our analysis is affected by the 
absence of the price attribute. Indeed, we think 
that it could have been a fundamental element in 
assessing the customers’ orientation. 
analysis by global rating
the renault twizy case 
Conjoint analysis 
The best scenario is 
therefore defined as 2 seats, 
full optional, perfect for 
urban usage and in addition 
to another vehicle. 
analysis by global rating 
These results are really useful to us for they define a close configuration of what 
Twizy, our product, is.
the renault twizy case 
Conjoint analysis 
analysis by classification (occupation) 
We decided to run a conjoint analysis together with occupation (Q_29) in order to 
understand if the belonging to a specific group could change the utility of each 
attribute. 
We focused on two groups (Students and Entrepreneurs) because we found 
significant results only for them.
the renault twizy case 
Conjoint analysis 
analysis by classification (occupation) 
student! 
Importance values are the same for global rating as well as for students. Anyway, we 
noticed a slight and not so relevant difference in the SEATS attribute, switching from 2 to 
4. Given the Utility Estimate value, Global Rating is a good representation of this sub-target 
too.
the renault twizy case 
Conjoint analysis 
analysis by classification (occupation) 
entrepreneur! 
Importance values differ from the Global Rating. Now SEATS and USAGE are the most 
relevant. These results reflect the characteristics of the occupational category: for example 
the switch from URBAN to EXTRAURBAN is explained by the need of mobility that an 
entrepreneur may have.
multiple linear regression
the renault twizy case 
Multiple linear regression 
general overview 
We would like to explain which are the variables that may affect the price for an Electric Vehicle 
(Q_20). With this aim, we ran a multiple linear regression (Stepwise Method) using as 
dependent variable Q_20 and as independent the following list of variables: 
! 
§ Q_18 Factors influencing EV purchasing 
§ Q_23 Twizy characteristics 
The Anova table shows a p-value < 0,05 for 
both the models. So we can proceed with our 
analysis, in particular with the second model. 
The Adjusted R Square defines a model that 
explain only the 3% of the variance in our 
dependent variable.
the renault twizy case 
Multiple linear regression 
conclusions 
Analyzing more in depth the model, even thought p-value is lower than 0,05 the VIF value (that 
highlights multicollinearity problems) is lower than the threshold of 1,1/1,2. So we can infer that 
the model is not reliable and we can’t draw any kind of business insight. 
This consideration is aligned with what we thought could represent a problem: the fact that the 
market is so young that consumers do not even know what a fair price for an electric vehicle 
could be (as shown in Slide 41). Consequently is not possible to infer what are the factors that 
affect the consumers price perception.
factor analysis
the renault twizy case 
Factor analysis 
general overview 
Since our purpose is to assess respondents attitudes towards electric vehicles and Twizy in particular, 
we decided to focus on those variables that, by our knowledge, could give us more information. 
Thus, as input for our factor analysis we used two quantitative questions for a total of 13 variables: 
§ Q_18 Factors influencing EV purchasing 
§ Q_23 Twizy characteristics (we decided not to insert the variable “Frontal Airbag” since we 
think it is not a crucial element in the purchase decision) 
We used the Principal Components Method in order to have possibly correlated observations 
transformed into standardized linearly uncorrelated variables. 
Agenda 
§ 1/3 of variables (4 or 5 components) 
§ total variance explained between 60% and 75% 
§ scree plot (eigenvalues > 1) 
§ communalities (threshold 0,4) 
§ rotated component matrix 
§ business interpretation
the renault twizy case 
Factor analysis 
analysis: screening 
At the beginning of the analysis we 
considered 4 as the fixed number 
of factors, given the ratio between 
the number of components and 
variables as 1 out of 3. 
This solution explained the 61% of 
Variance. However since the value 
is close to the threshold of 60%, 
we decided to try increasing the 
number of factors.
the renault twizy case 
Factor analysis 
analysis: total variance explained (before the rotation step) 
With this solution we reached a 
significant value of variance explanation 
(70%). 
The scree plot shows that at the level of 5 
components the eigenvalue’s threshold (equal 
to 1.010) is reached.
the renault twizy case 
Factor analysis 
analysis: communalities 
The communalities table shows that the nearer 
value to the threshold of 0,4 is equal to 0,585. 
We consider the model with 5 components 
reliable.
the renault twizy case 
Factor analysis 
Attention to: 
1. status, new trends, innovation" 
statement to others about my positive contribution to 
environment, something new and fun, adopter/ 
pioneer of new technologies 
2. electric futuristic car’s characteristics" 
100 km autonomy, 3.30 hours charge time, 2 seats in 
tandem, modern design 
3. parking conditions, emissions" 
easy to park and zero emissions 
4. time saving and travel in city center" 
saves time compared to public transport, travel to 
restricted areas 
5. environment pro-activism" 
better for the environment, positive contribution to 
environment 
interpretation
cluster analysis
the renault twizy case 
Cluster analysis 
We executed the cluster analysis in order to better segment our respondents, to 
define the potential market for Renault Twizy. 
We used, as input variable, 
the new 5 variables resulting 
from the previous factor 
analysis. 
1Status, new trends, innovation 
2Electric futuristic car’s characteristic 
3Parking conditions, emissions 
4Time saving and travel in city center 
5Environment pro-activism 
general overview
Cluster analysis 
the renault twizy case 
We executed a hierarchical cluster analysis, on a subsample of 30% of randomly selected 
cases, to define the number of clusters to be inserted in the K-means algorithm. 
By this graph we were able to wonder on the number of clusters that could be either 3, 4 
or 6. We will now analyze each possibility in depth: 
§ 3 clusters 
§ 4 clusters 
§ 6 clusters 
dendrogram
Cluster analysis 
the renault twizy case 
dendrogram – Ward method 
3 
4 
6
Cluster analysis 
the renault twizy case 
case of 3 clusters 
To assess the validity of the model we had to analyze: 
DISTRIBUTION we found the distribution of cases within 
the 3 cluster pretty homogeneous, so this could be a good 
start. 
SIGNIFICANCE all the variables showed a good level of 
significance besides from the first one that is very important for 
our business implications.
Cluster analysis 
the renault twizy case 
case of 4 clusters 
To assess the validity of the model we had to analyze: 
DISTRIBUTION also in this case the distribution of cases 
was quite homogeneous 
SIGNIFICANCE however the first variable is still not 
significant, showing a p-value of 0.751 that is not good for our 
business aim.
Cluster analysis 
the renault twizy case 
case of 6 clusters 
To assess the validity of the model we had to analyze: 
DISTRIBUTION the model shows a good distribution of 
cases within clusters, exception made for cluster 5 that shows 
a lower distribution compared to the others. 
SIGNIFICANCE all the variable showed a perfect 
significance level. 
We proceed in our analysis 
with 6 clusters.
Cluster analysis 
the renault twizy case 
The Final 
Clusters! 
The Practical 
The Post-modern 
The Activist 
The Top Gearer 
The New Yorker 
The Liberal Elitarian 
1 
2 
3 
4 
5 
6 
case of 6 clusters
Cluster analysis 
the renault twizy case 
graphical representation of clusters 
16% 
22% 
17% 
7% 
16% 
22% 
The Practical 
The Post-modern 
The Activist 
The Top Gearer 
The New Yorker 
The Liberal Elitarian 
The 
Practical 
(30) 
The Post 
Modern 
(42) 
The Top 
Gearer 
(42) 
The 
Activist 
(32) 
The New 
Yorker 
(13) 
The 
Liberal 
Elitarian 
(31) 
Given the characteristics of the groups, we decided 
to focus on The Post Modern and The Liberal 
Elitarian Groups
Cluster analysis 
the renault twizy case 
In order to better understand our customers we want to further describe our clusters. 
First we tried to do that by crossing cluster membership with behavioral questions but 
gaining low results. Then we proceeded with psychometrical attitudinal questions. 
All the findings of the following 8 slides will be used as the input in defining customers’ profile. 
The following list shows results that showed significance and those who did not. 
Q_5 
Q_16_1 
Q_16_4 
Q_30_4 
Q_30_8 
Q_30_9 
Ecology attitude 
Better development stage 
Low battery autonomy 
Eco Friendly 
Flexible 
Self Confident 
Q_10 
Q_19 
Ideal means of transport 
Charging points installation 
Q_11 
Q_14 
Q_15 
Q_17 
not significant 
Q_17 
Purchase destination 
Q_22 
Q_25 
Most used means of transport 
WTB for EV 
When would you be likely to buy 
Purchase destination 
Knowledge about Twizy 
WTB for Twizy 
significant 
description of clusters’ profile
the renault twizy case 
Cluster analysis behavioral 
We found out that The Liberal Elitarian and The 
Post Modern (the groups we want to focus on) 
show an interesting level of concern. 
The P-Value is significant but the Eta Squared is 
under the threshold of 0,2. So the degree of the 
relation between the two variables is low. 
clusters * how do you feel toward ecology
the renault twizy case 
Cluster analysis behavioral 
clusters * ideal means of transport 
From this table we may draw some behavioral implications in order to better target 
our clusters and find the best way to advertise Twizy. 
Given that Twizy category is not 
well defined, these results may be 
useful in shaping the ideal 
positioning of the product. 
We can infer that results are 
reliable since P-value is lower 
than 0,05 and Cramer’s V is 
higher than 0,2.
the renault twizy case 
Cluster analysis behavioral 
clusters * better development stage of the market 
We observed high mean values for the three 
underlined groups. 
Significance is at a good level but Eta 
Squared depicts a weak relation.
the renault twizy case 
Cluster analysis behavioral 
clusters * low battery autonomy 
Here is another variable that shows 
particular significance and may be useful for 
our cluster’s interpretation. 
Still, Eta Squared value depicts a weak 
relation.
the renault twizy case 
Cluster analysis behavioral 
clusters * charging points installation 
Results show that this variable may have a great 
influence on the purchasing behavior of customers. 
Within Clusters, every group is strongly affected by the 
variable, with The Activists being the most sensitive. 
p-value 
< 0,05 
Cramer’s V 
> 0,2
the renault twizy case 
Cluster analysis behavioral 
clusters * eco-friendly 
Even though the relation between the 
variables is weak (Eta Squared = 0,067), we 
found out that The Post Modern and The 
Liberal Elitarian rated themselves as being 
eco-friendly more than others.
Cluster analysis 
the renault twizy case 
psychometric 
We have to do the same assumption of the 
previous slide: that is, a weak relation as 
proven by Eta Squared. 
Again, the two clusters on which we would 
like to focus on showed the highest mean 
values when defining themselves as flexible. 
clusters * flexible
the renault twizy case 
Cluster analysis psychometric 
Post Modern and Liberal Elitarian showed the 
highest values in this attitudinal question too. 
Nevertheless Eta Squared and P-value make 
this relation particularly weak. 
clusters * self-confident
the renault twizy case 
Cluster analysis profile 
The Practical 
Someone who uses common sense and doesn’t think too hard 
about how to solve day-to-day problems. 
These subjects do not care neither of environment issues nor of 
technological innovations. They are focused on saving time and 
money, finding a fast parking. Not surprisingly, they consider the 
motorcycle as one of the means of transport that better suits 
the city. 
They are not charmed of fascinated by any particular brand, if it 
doesn’t fit their utilitarian needs. Acting rationally, they try to 
maximize the utility they may get from every purchase 
One of the main reason of their non-interest in the EV market is 
the low battery autonomy of the vehicles. 
The 
Practical 
(30)
the renault twizy case 
Cluster analysis profile 
The Post Modern 
They are the main cluster on which we would like to focus 
on. For these subjects, interpretation is everything: reality 
only comes into being through their interpretation of what 
the world means to them individually 
Always up-to-date, the post-modern individual is always 
searching for the latest trends and trying to be an early 
adopter in order to signal his or her status. 
Self-confident and flexible, post-modern individuals are 
able to go from the easiness of the Eco-friendly life style to 
the chaotic everyday life of the metropolis. 
The Post 
Modern 
(42)
the renault twizy case 
Cluster analysis profile 
The Activist 
As the name may suggests, these subjects are daily 
involved in giving their contribute to the safeness of the 
environment. 
Showing off status and following trends are things of no 
matter for these subjects. They are anchored to highly 
social-responsible values. 
They would be willing to lose some time rather than 
denying their deeply rooted values. 
Their interest in the purchase of an Ev is highly affected by 
the presence of a well-structured network of charging 
points around the city. 
The 
Activist 
(32)
the renault twizy case 
Cluster analysis profile 
The Top Gearer 
The Top 
Gearer 
(42) 
The Top Gearer is attracted by motors in general and 
particularly by every new shade of the market: for example 
the EV growing one. In fact, he/she is the only one that 
selected motorcycle as a better means of transport 
compared to public transports. 
Moreover, due to his/her awareness of motors world, she/ 
he is conscious that the current stage of the EV market is 
not already developed. 
Generally speaking, since motors and environment don’t 
go hand by hand, the Top Gearer, being more focus on 
speed and engine performances, doesn’t care about 
pollution and environmental issues. His/her low eco-friendly 
attitude may be explained by his/her low flexibility.
the renault twizy case 
Cluster analysis profile 
The New Yorker 
The New 
Yorker 
(13) 
In our cluster distribution this is the lowest represented cluster. 
From the car market point of view, he/she doesn’t represent a 
relevant target. 
The New Yorker is the individual that has a deep knowledge of 
the city and lives it without a personal means of transport. 
He/she is proud and loyal to the city and understands the true 
past, present and future of it. 
He/She prefers to live the city without the issue of searching 
for a parking and take advantage of the public transports 
comfort.
the renault twizy case 
Cluster analysis profile 
The Liberal Elitarian 
The Liberal Elitarian is not limited to traditional or established attitudes 
and views. He/she doesn’t want to be targeted as in search of self 
esteem or a trend setter but at the same time is continuously seeking for 
ways to establish his/her social position. This prerogative is reflected in 
his/her high attitude towards new and unconventional stuff that makes 
him/her feel like a pioneer of innovative markets (like the one of Electric 
Vehicles). 
The necessity to establish his/her social position and to 
demonstrate the capability to be a relevant part of the 
society is given by the high flexibility and the strong self-confidence 
used as signals to the others. Moreover, to 
reinforce their self esteem, they show to be involved in high 
sensitive social issues like ecology. 
Saving time is a relevant factor in his/her life, since he/she 
lives the city in a frenetic and busy way. 
The 
Liberal 
Elitarian 
(31)
implications
Renault Twizy 
the renault twizy case 
business implications: lack of brand awareness 
In slide 45, we pointed out a major issue regarding brand relevance. The contingency table 
showed how between those who did not select Renault as a knowledgeable EV manufacturer 
brand, the 68% did know Twizy. 
This underlines a lack of Brand Awareness, highlighted by the fact that Toyota was recognized as 
the major EV manufacturer, although not producing pure EV at all. 
Graveyard Brand (low recognition and high recall) 
The risk of this peculiar situation lies behind the fact that consumer may not recognize Renault in 
the consideration set (brands that you consider while in decision-making situation). Nevertheless, 
results showed that Twizy is doing really well in the consumers market. 
What could be a solution? 
Considering the full range of Renault Electric Vehicle that can 
reach different targets (Twizy, Kangoo, Fluence), Renault 
should gather the benefits for them all through push-based 
strategies.
Renault Twizy 
the renault twizy case 
business implications: communication strategy 
What positioning could be better for Twizy? 
As Slide 70 shows, Motorcycle and Public Transports are perceived, by every cluster, as the ideal 
means of transport for Milan. So we think that Twizy should take advantage of its characteristics: 
§ agility, flexibility and time saving which depict it as concept close to motorcycle 
§ low costs of maintenance and refurnish (0,015€/km) 
§ allowed access to Area C, peculiar characteristic of public transports 
Saves money and time 
We think that not only Renault, but also all the other EV manufacturers are focusing too much in 
conveying eco-friendly values rather than pushing the money saving features of an EV. 
Looking at our economic situation, this could turn out to be a key success factor in the market.
Renault Twizy 
the renault twizy case 
business implications: Twizy for post-moderns 
Showing off status 
We saw that The Post Moderns pay a lot of attention on showing off their status, following new 
trends and being the early adopters. 
How can Renault reach them? 
Renault is already doing a great job in this direction. In fact it is positioning the Twizy as an 
identifying object which encloses all the values important for this category. 
However, further improvement in the marketing campaigns could be implemented by: 
§ empowering the presence on social networks in order to get nearer to them 
§ embrace the social attitude of this group through the organization of events and 
sponsorships.
Renault Twizy 
the renault twizy case 
business implications: Twizy for liberal elitarians 
Hating trends. Following trends. 
Although this group seems to be reluctant to following trends and showing conventional 
behaviors, they are interested in change and ready to invest on it. 
A push strategy would not be proper for this group. Instead Renault should try to induce them 
to get closer to the offer. Individuating opinion leaders and market mavens (through magazines 
and specialized blogs) could influence their attitude towards Twizy, without making them feel 
targeted. As far as advertising is concerned, guerrilla and unconventional marketing activities 
could be more effective than conventional ones. 
As for Post-moderns, the positioning concept should be located somewhere between 
motorcycles and public transports.
Renault Twizy 
the renault twizy case 
business implications: Twizy for Top Gearers (potential customers) 
A potential pool of customers 
They are one of the major clusters (22%) thus representing a great opportunity to enlarge the 
Twizy base of customers. 
Targeting would be a matter of time: as soon as manufacturers will produce more performing 
Electric Vehicles the Top Gearers will be attracted by the market. In fact they pay attention to 
the car characteristics rather than on the environmental impact of the vehicle. The main reason 
for they aren’t already interested in the market is indeed due to the early stage of the market 
and low performance of the vehicle (low battery autonomy). 
Specialized magazines articles, TV shows and conventional advertising could be successful 
means through which getting closer to them.
Renault Twizy 
the renault twizy case 
business implications: research limitations 
Limits of the research 
§ Due to the composition of our sample (in particular about the knowledge of this 
market) we found it hard to individuate heterogeneous behaviors that could allow us to 
draw a more precise segmentation 
§ Our questionnaire was obviously not perfect. Thinking about what have been the 
problems in analyzing data and in drawing conclusions, we would have eventually 
focused on: 
§ more quantitative questions 
§ inserting themes related with cheapness of the vehicle and testing a wider range 
of behavioral questions other than eco-friendly 
Macro-environmental issues 
§ The Italian market for electric vehicles is not so profitable mainly because of the policy 
makers’ low efforts that make it slower for this market to tip the take-off point. 
§ Looking at the European scenario (where country like England and Holland are 
investing a lot), we can say that it is a great opportunity lost.
Sitography 
the renault twizy case 
§ http://www.istat.it 
§ http://www.thegreencarwebsite.co.uk/blog/index.php/2012/05/15/sorry-boris-europes-ev-capital- 
isoxford/ 
§ http://www.e-moving.it" 
§ http://www.sciencedirect.com/science/article/pii/S2210422412000056 
§ http://www.independent.co.uk/life-style/motoring/road-tests/renault-twizy-7639565.html 
§ http://www.renault.com/en/vehicules/aujourd-hui/renault-vehicules-electriques/pages/ 
twizy.aspx 
§ http://www.autoblog.it/post/54023/auto-elettriche-elenco-completo-luglio-2012 
§ http://www.ideegreen.it/quanti-veicoli-elettrici-circolano-in-italia-10302.html

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Electric Vehicles Market Research

  • 1. the future of electric vehicles! the renault twizy case is milan ready for the future? Alessio Aristide Di Salvo 1656719 Mattia Deserti 1655570
  • 3. general overview the renault twizy case “Given the role that transport plays in causing greenhouse gas emissions, any serious action on climate change will zoom in on the transport sector” Yvo de Boer, Executive Secretary of the UNFCCC Tokyo, January 2009 Cities like London or Amsterdam are already investing on the development of Electric Vehicles’ culture In our research we will analyze if Milan is ready to follow the sustainable trends and eventually anticipate them We are going through it by assessing the Milaneses predisposition towards the iconic Renault Twizy and its profitability
  • 4. general overview the renault twizy case Cities like London or Amsterdam already massively investing on the development of Electric Vehicles’ culture charging points in european panoramic! The city of Amsterdam has ambitious european capitals! environmental targets and plans for 10.000 electric vehicles in the city by 2015. § London 857 § Oslo 735! § Paris 458! § Amsterdam 245! § Barcelona 76! § Dublin 66! London is continuously increasing the number of charging points along the city’s streets, planning to reach 1.300 point by 2013.
  • 5. general overview the renault twizy case In our research we will analyze if Milan is ready to follow the sustainable trends and eventually anticipate them e-moving project! an experimental project, in partnership with Renault, driven by the Italian energy supplier A2A since electric vehicles represent the future of transportation, the purpose of the project is to provide an efficient system of charging points that will allow a synergic development of the market the project involves at the beginning the cities of Milan and Brescia. In the long run the aim is to create a wider network of the main Lombardy’s cities (e-mobility point-to-point) 31 charging points in Milan!
  • 6. general overview the renault twizy case We are going through it by assessing the Milaneses predispositions towards the iconic Renault Twizy and its profitability a living city! a trend setter city in which fashion is a relevant factor that plays a fundamental role in the daily routine since Twizy is a completely new concept of transport and, as an electric vehicle, takes care of the environment, we would like to measure how Milaneses perceive this innovation
  • 7. geo/demo-graphics the renault twizy case C Area involves the “Cerchia dei Bastioni” zone and 77.000 inhabitants. It doesn’t seem to be appreciated by Milaneses. " Somebody is also concerned about the real impact that this measure has on the environment. Residents in Milan! Male Female 628.654 695.45648%! Milan is the second most 52%! populated city of Italy 8,3 km2! 1.324.110 inhabitants
  • 8. what is a pure EV the renault twizy case An electric vehicle (EV), also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion. it doesn’t have to refuel in a petrol station, instead the battery can be charged at home, work or at a public charge point as advised by manufacturers, most electric cars currently available have a range of up to 100 miles the majority of the latest EVs now entering the market are M1 class passenger cars, which must meet all EU requirements for cars including international car crash test standards the average range an EV could go before the battery runs out is certainly enough to get where you need to go in town
  • 9. electric vs gasoline the renault twizy case electric!gasoline! no tailpipe emissions utility company 100+/- km range hours to recharge 0,015 euros per km greenhouse gases/pollution OPEC 300+ km range minutes to refuel 0,17 euros per km
  • 10. the use of EV further more we think that brand attitude is focused on environmental-friendly aspects of electric vehicles. What if the key success factor be the cheapness? the renault twizy case factors that affect it battery autonomy does not allow heavy car users to drive for more than 150 km institutions don’t give the right importance to the development of the electric culture and stimulate the electric car demand like in other countries with proper investments
  • 11. the renault twizy the renault twizy case ultramobile all-electric two-seater vehicle homologated as a quadricycle a range of 100 km over a standard urban cycle and can be fully recharged in 3 ½ hours from a domestic socket, using a spiral cable located under the flap at the front of the car 2.34 m long! 1.24 m wide! 1.45 m tall! A sporty, elegant and compact urban vehicle! modern design; open bodywork with sweeping lines, original (optional) gull wing doors, a windscreen and roof forming a large glazed area, as well as lights creating an original lighting signature
  • 12. market structure the renault twizy case industry! Incumbents pushed by CARB and EU regulation New entrants enter relatively late price/performance ratio limits EV technology! mass market appeal market! Tradeoff between range/speed and costs Convergence toward Li-ion batteries Niche markets sought for LSV and sports cars Early adopters are supported by tax schemes Firms initially uncertain about technological options New entrants focus on niche markets Incumbents target mass markets
  • 13. competition framework quadricycle market segment! Renault Twizy Estrima Birò Other the renault twizy case Twizy is the leader of the category. With more than 79% of market shares it represents the most sold EV in Italy. sales in 2012 1421 units price from 6.990 € Birò is the main competitor of Twizy. However its characteristics diminish its potential threatening power sales in 2012 261 units price from 7.500 € 79% 15% 6%
  • 14. the renault twizy case competition framework extended market segment! The electric vehicles market is composed also of other cars, that differ from the Twizy in price and characteristics. Below a selection of the most diffuse models: Nissan Leaf! Citroen C-Zero! Peugeot iOn! sales in 2012 102 units price from 38.500 € sales in 2012 112 units price from 28.318 € sales in 2012 140 units price from 28.321 €
  • 16. research question measuring the aptitude of milan’s citizens in changing their mind to more eco-sustainable vehicles the renault twizy case measuring the inclination of milan to drive the change measuring the profitability of renault twizy in milan is milan ready for the future? 1! 2! 3!
  • 17. target population the renault twizy case We decided to apply a stratified method to our target population in order to define the sample. MALE FEMALE TOTAL 18-24 38.473 25% 35.334 22% 73.807 47% 25-30 41.900 27% 40.797 26% 82.697 53% TOTAL 80.373 52% 76.131 48% 156.504 100% We will take into consideration the proportions of the target in designing our sample. At the launch of the product Renault aimed mostly to 30-50 target. We think that it would be profitable to focus on a lower age range. The change could start from them.
  • 18. the renault twizy case threats and opportunities The Twizy personality may drag it in a completely new market segment that hasn’t already defined shapes: neither a specific target nor a precise positioning threats! the particular nature of Twizy may cause confusion in the consumers’ minds: they might not be able to perceive the added value of the vehicle opportunities! the market is at an early stage of development the presence of more conventionally-designed electric vehicles may pull consumers towards a more traditional purchase approach define a new segment and be the category leader exploiting the benefits of being the first mover, making the other brands irrelevant take advantage of the new concept design may allow Renault to introduce an innovative way of conceiving cars
  • 20. the questionnaire the renault twizy case screening environment perception citizens and the city of Milan electric vehicles renault twizy general/socio information SECTION! 1 2 3 4 5 6 TYPE OF SECTION! OBJECTIVE! assessing respondents’ current car ownership and forecasting their intention to buy for a conventional car measuring attitude towards general environmental issues how do Milaneses perceive the environmental situation of the city? what about the solutions? assessing knowledge and attitudes towards electric vehicles" (conjoint, brand awareness, willingness to switch) measuring the potential profitability and appeal of the product defining customer profiles Q_n! 1-4 5-6 7-11 12-21 22-25 26-30
  • 21. fieldwork the renault twizy case distribution method! for our interviews we used CAWI, for it being more comfortable for the respondents as well as for us. we based our questionnaire on the Qualtrics Software, submitting the link to a total of 205 interviewees pre-test! initially, we tested the questionnaire on 5 people. we received positive feedbacks both on the structure of the questions and on the length of the questionnaire
  • 23. sampling error the renault twizy case Male Female Total 20-24 49 (24%) 53 (26%) 102 (50%) 25-30 54 (26,5%) 48 (23,5%) 102 (50%) Total 103 (50,5%) 101 (49,5%) 204 (100%) § we collected 205 questionnaires but deleted the first respondent because he/she completed just half of the questionnaire § previously our target population was 18-24 and 25-30, but since we did not manage to have respondents under 20, we decided to reduce our sample age between 20-24 and 25-30 § we selected our respondents as resident or citizens of Milan so we respected the initial aim. The expectation is that the sample is very representative of the population.
  • 24. data auditing the renault twizy case Since the willingness to pay is the variable the most affected by outliers, we decided to start from here for the data auditing. The current plots don’t give us the opportunity to find reliable business insights. How much would you be willing to pay for a petrol/diesel fueled car? How much would you be fair price for an Electric Vehicle? Final Range 2.000 – 60.000€ Final Range 2.000 – 30.000€ 30.000€ From a business point of view we decided to keep these values since they represent a reasonable market price for an EV.
  • 25. data auditing the renault twizy case How do you feel toward ecology In analyzing this question we didn’t take outliers into consideration because the values out of the box-plot were affecting badly both the mean and the Std. Deviation.
  • 26. data auditing the renault twizy case question 6 Concern about environmental issues We found out that the outliers for these questions were always almost the same respondents; this fact was negatively affecting our results.
  • 27. data auditing the renault twizy case checking goodness of data (Q_8_4) Give a score to the township effort in solving the previous issues (Q_30_9) How do you consider yourself (Q_16_4) Why would you not buy an Electric Vehicle We performed the box plot of question: § Q_8_4 § Q_30_9 § Q_16_4
  • 28. demographic nationality the renault twizy case 97% 3% Italian Non-Italian The majority of interviewees are italians with 6 of them being non-italians. In order to better fit the aim of our research, while submitting the questionnaire we carefully selected respondents as inhabitants of Milan. We observed 2 missing values. univariate analysis
  • 29. the renault twizy case demographic gender 50,50% 49,50% Male Female univariate analysis We tried to maintain the ratio of the target population (Istat data*) with 103 males and 101 females. * 52% male 48% female
  • 30. the renault twizy case demographic age range 50,00%50,00% 18-24 25-30 univariate analysis The pie chart shows a perfect distribution of the age between our two ranges, not far from our target population. (47% 18-24, 53% 25-30)
  • 31. the renault twizy case demographic occupation univariate analysis Our target population is well balanced between students and non students. 54% 20% 5% 14% 7% Student Freelance Entrepreuner Employee Other Twizy is an innovative vehicle that fits well the lifestyle of people living in Milan, just like students or workers. Anyone that could need a fast and smart vehicle.
  • 32. the renault twizy case environment attitude & issues With Question 5 we tested general attitude of respondents towards ecology. As the histogram shows, participants were highly concerned about ecology. The issues were rated quite similarly with the mean ranging from 7.07 to 8.20." " Nevertheless, Air Pollution is perceived slightly higher than the other environmental issues (with regards to Std. Deviation and Skewness) univariate analysis
  • 33. the renault twizy case environment attitude & issues bivariate analysis (attitude * occupation) Do attitude towards environment change with occupation?! H0 attitude towards ecology do not change with occupation H1 occupation influences attitude towards ecology results! With a significance at .035 we reject H0. Since we observed an Eta Squared value equal to .051, the relation is quite weak. business! insight! Since occupation does influence the attitude towards ecology, it should be taken into consideration in defining the target customer.
  • 34. the renault twizy case environment Milan issues (Q_7) Regarding Milan, which are in your opinion the most critical issues? Please rank them in order With question 7 we asked to rank the most critical issues of Milan. The results show that Air Quality has been rated as most critical. This outcome is aligned with the insights of Question 6 where Air Pollution registered the highest mean value. Therefore, this variable seems crucial to us, given the fact that Twizy is a Zero Emission vehicle. business! insight! results! univariate analysis
  • 35. the renault twizy case environment Milan issues univariate analysis How do citizens perceive the efforts of the township in solving environmental issues? ! Respondents rate them as being very poor. Especially, as results show, Parking and Acoustic Pollution seems to be the worst. How may these results affect our research?! Since Twizy is easy to park thanks to its dimensions and has a silent engine it may be the best solution for both these issues.
  • 36. the renault twizy case environment Milan air quality solutions What are the best solutions for air quality in Milan?! RANK! VARIABLE! FREQUENCIES! Public transport 1empowerment 2Electric Vehicles 3Bike sharing Congestion Charge 4(Area C) Restrictive control on 5non-catalytic vehicles 87 65 53 55 89 univariate analysis (mode) These results can be taken into account for further business implications. With question 9 we asked respondents to rank the best solutions for air quality among the five listed. At first place we find public transport empowerment that is an obvious result for a metropolis. Electric Vehicles ranked as second thus depicting them as a great solution for air quality.
  • 37. the renault twizy case 35% 60% 5% car engine Diesel Petrol Hybrid transport car ownership (Q_1) Do you own a car? We observed 13 missing values. The interviewees that answered ”I don’t own a car” are 26: we could assume that 13 of them considered their family car in specifying the car engine, while the remaining 13 do not own a car at all. Please specify your car engine. (Q_2) univariate analysis
  • 38. transport most used 120 100 80 60 40 20 0 Car Motorcycle Bicycle Public Transport the renault twizy case More than half of respondents prefer Public Transport as means of transport in Milan. 26,5% 11,3% 6,9% 55,4% (Q_11) Which is the means of transport that you use THE MOST in Milan? However the 26,5% of respondents use mostly the car as means of transport. If we consider the Milan’s overall population between 18 and 30 years old, the relative catchment area could be roughly about 41.000 customers univariate analysis
  • 39. the renault twizy case transport most used vs ideal bivariate analysis - ideal means * most used means (crosstab) We may notice a paradox in this crosstab: although ranking the last as the ideal means of transport (3,9%), car was selected as the second most used (26%). We can confirm the hypothesis stated on the previous slide, that is, the car market is still a huge profitable pool of customers.
  • 40. the renault twizy case EVs willingness to buy would you buy an electric vehicle? Yes No In answering the question, why would you not buy an electric vehicle, the majority of the respondents identified the lack of charging points as the main reason. business! insight! Following the example of cities like London and Oslo, might serve as a great boost to the performance of the market. results! univariate analysis – would buy an electric vehicle? why not?
  • 41. the renault twizy case EVs willingness to pay univariate/bivariate analysis (correlation) 20.000,00 15.000,00 10.000,00 5.000,00 0,00 WTP for a petrol/diesel car WTP for an electric car 17.788,89 12.811,11 € Std. Deviation 7.917,867 Std. Deviation 5.364,677 As the data show, the WTP for an Electric Vehicle is sensitively lower than the WTP for a petrol/ diesel car. We think that this result is mainly affected by the customers’ knowledge about this newly born market. As we pointed out in slide 14, the mean price for an electric car (excluding the quadricycle segment) is higher than that expressed by our respondents.
  • 42. the renault twizy case bivariate analysis – type of usage * would you buy an EV (crosstab) Between those who would be willing to buy an EV, the 61,6% would buy it as a direct replacement for a car. EVs the Change What about those who would not be willing to buy it? 43,2% of them would buy it in addition to another car. This suggest us that they still perceive a far distance between a conventional car and the EV. The p-value is significant and the Cramer’s V is higher than 0,2, thus there is a good degree of relation between them.
  • 43. the renault twizy case EVs the Change bivariate analysis – (when would you be likely to purchase it)2 (crosstab) The Cramer’s V index shows a good degree of association between the variables (.388). The majority of respondents would be willing to buy a new car/EV in the next 5 years. That suggest us that the improvement effort should be concentrated in this time range in order to pull the demand.
  • 44. the renault twizy case univariate analysis – Select which of the following brands manufactures EV Car Brands! With this question we tried to asses the respondents’ knowledge about PURE EV manufacturers. 0 20 40 60 80 100 120 140 Volkswagen Toyota Smart Mitsubishi Renault Nissan BMW Citroen Chevrolet 59,3% 38,7% There are two important facts about the results:! § Toyota was the most selected (121 times) though not producing pure EV but just Hybrid. We can say that customer recognize Toyota as being the most innovative manufacturer" § Renault was the second most selected brand (79 times) Let’s analyze more deeply the phenomenon EVs the Manufacturers
  • 45. the renault twizy case Twizy knowledge of the vehicle which of the following brands manufacture EV * do you know Twizy (crosstab) We noticed a discrepancy in data. Within those who did not recognize Renault as EV manufacturer (Q_13), 85 respondents answered Yes when we asked if they know Renault Twizy. Business insight We can assume that" 1. Brand Relevance of Renault in this segment is not so significant " 2. Renault is not exploiting all the advantages of being the first mover in the market.
  • 47. the renault twizy case Conjoint analysis We performed a conjoint analysis on question 21. This method will allow us to discover and analyze the key attributes that may affect the purchase decision. How does the perfect EV look like! Through the Orthogonal Design Method, we defined 8 different scenarios based on the following attributes: SEATS 2 - 4 OPTIONAL basic - full DESTINATION main vehicle – in addition USAGE urban – extra urban general overview
  • 48. the renault twizy case Conjoint analysis As the table shows, Optional and Purchase Destination are the most valuated attributes. Unfortunately our analysis is affected by the absence of the price attribute. Indeed, we think that it could have been a fundamental element in assessing the customers’ orientation. analysis by global rating
  • 49. the renault twizy case Conjoint analysis The best scenario is therefore defined as 2 seats, full optional, perfect for urban usage and in addition to another vehicle. analysis by global rating These results are really useful to us for they define a close configuration of what Twizy, our product, is.
  • 50. the renault twizy case Conjoint analysis analysis by classification (occupation) We decided to run a conjoint analysis together with occupation (Q_29) in order to understand if the belonging to a specific group could change the utility of each attribute. We focused on two groups (Students and Entrepreneurs) because we found significant results only for them.
  • 51. the renault twizy case Conjoint analysis analysis by classification (occupation) student! Importance values are the same for global rating as well as for students. Anyway, we noticed a slight and not so relevant difference in the SEATS attribute, switching from 2 to 4. Given the Utility Estimate value, Global Rating is a good representation of this sub-target too.
  • 52. the renault twizy case Conjoint analysis analysis by classification (occupation) entrepreneur! Importance values differ from the Global Rating. Now SEATS and USAGE are the most relevant. These results reflect the characteristics of the occupational category: for example the switch from URBAN to EXTRAURBAN is explained by the need of mobility that an entrepreneur may have.
  • 54. the renault twizy case Multiple linear regression general overview We would like to explain which are the variables that may affect the price for an Electric Vehicle (Q_20). With this aim, we ran a multiple linear regression (Stepwise Method) using as dependent variable Q_20 and as independent the following list of variables: ! § Q_18 Factors influencing EV purchasing § Q_23 Twizy characteristics The Anova table shows a p-value < 0,05 for both the models. So we can proceed with our analysis, in particular with the second model. The Adjusted R Square defines a model that explain only the 3% of the variance in our dependent variable.
  • 55. the renault twizy case Multiple linear regression conclusions Analyzing more in depth the model, even thought p-value is lower than 0,05 the VIF value (that highlights multicollinearity problems) is lower than the threshold of 1,1/1,2. So we can infer that the model is not reliable and we can’t draw any kind of business insight. This consideration is aligned with what we thought could represent a problem: the fact that the market is so young that consumers do not even know what a fair price for an electric vehicle could be (as shown in Slide 41). Consequently is not possible to infer what are the factors that affect the consumers price perception.
  • 57. the renault twizy case Factor analysis general overview Since our purpose is to assess respondents attitudes towards electric vehicles and Twizy in particular, we decided to focus on those variables that, by our knowledge, could give us more information. Thus, as input for our factor analysis we used two quantitative questions for a total of 13 variables: § Q_18 Factors influencing EV purchasing § Q_23 Twizy characteristics (we decided not to insert the variable “Frontal Airbag” since we think it is not a crucial element in the purchase decision) We used the Principal Components Method in order to have possibly correlated observations transformed into standardized linearly uncorrelated variables. Agenda § 1/3 of variables (4 or 5 components) § total variance explained between 60% and 75% § scree plot (eigenvalues > 1) § communalities (threshold 0,4) § rotated component matrix § business interpretation
  • 58. the renault twizy case Factor analysis analysis: screening At the beginning of the analysis we considered 4 as the fixed number of factors, given the ratio between the number of components and variables as 1 out of 3. This solution explained the 61% of Variance. However since the value is close to the threshold of 60%, we decided to try increasing the number of factors.
  • 59. the renault twizy case Factor analysis analysis: total variance explained (before the rotation step) With this solution we reached a significant value of variance explanation (70%). The scree plot shows that at the level of 5 components the eigenvalue’s threshold (equal to 1.010) is reached.
  • 60. the renault twizy case Factor analysis analysis: communalities The communalities table shows that the nearer value to the threshold of 0,4 is equal to 0,585. We consider the model with 5 components reliable.
  • 61. the renault twizy case Factor analysis Attention to: 1. status, new trends, innovation" statement to others about my positive contribution to environment, something new and fun, adopter/ pioneer of new technologies 2. electric futuristic car’s characteristics" 100 km autonomy, 3.30 hours charge time, 2 seats in tandem, modern design 3. parking conditions, emissions" easy to park and zero emissions 4. time saving and travel in city center" saves time compared to public transport, travel to restricted areas 5. environment pro-activism" better for the environment, positive contribution to environment interpretation
  • 63. the renault twizy case Cluster analysis We executed the cluster analysis in order to better segment our respondents, to define the potential market for Renault Twizy. We used, as input variable, the new 5 variables resulting from the previous factor analysis. 1Status, new trends, innovation 2Electric futuristic car’s characteristic 3Parking conditions, emissions 4Time saving and travel in city center 5Environment pro-activism general overview
  • 64. Cluster analysis the renault twizy case We executed a hierarchical cluster analysis, on a subsample of 30% of randomly selected cases, to define the number of clusters to be inserted in the K-means algorithm. By this graph we were able to wonder on the number of clusters that could be either 3, 4 or 6. We will now analyze each possibility in depth: § 3 clusters § 4 clusters § 6 clusters dendrogram
  • 65. Cluster analysis the renault twizy case dendrogram – Ward method 3 4 6
  • 66. Cluster analysis the renault twizy case case of 3 clusters To assess the validity of the model we had to analyze: DISTRIBUTION we found the distribution of cases within the 3 cluster pretty homogeneous, so this could be a good start. SIGNIFICANCE all the variables showed a good level of significance besides from the first one that is very important for our business implications.
  • 67. Cluster analysis the renault twizy case case of 4 clusters To assess the validity of the model we had to analyze: DISTRIBUTION also in this case the distribution of cases was quite homogeneous SIGNIFICANCE however the first variable is still not significant, showing a p-value of 0.751 that is not good for our business aim.
  • 68. Cluster analysis the renault twizy case case of 6 clusters To assess the validity of the model we had to analyze: DISTRIBUTION the model shows a good distribution of cases within clusters, exception made for cluster 5 that shows a lower distribution compared to the others. SIGNIFICANCE all the variable showed a perfect significance level. We proceed in our analysis with 6 clusters.
  • 69. Cluster analysis the renault twizy case The Final Clusters! The Practical The Post-modern The Activist The Top Gearer The New Yorker The Liberal Elitarian 1 2 3 4 5 6 case of 6 clusters
  • 70. Cluster analysis the renault twizy case graphical representation of clusters 16% 22% 17% 7% 16% 22% The Practical The Post-modern The Activist The Top Gearer The New Yorker The Liberal Elitarian The Practical (30) The Post Modern (42) The Top Gearer (42) The Activist (32) The New Yorker (13) The Liberal Elitarian (31) Given the characteristics of the groups, we decided to focus on The Post Modern and The Liberal Elitarian Groups
  • 71. Cluster analysis the renault twizy case In order to better understand our customers we want to further describe our clusters. First we tried to do that by crossing cluster membership with behavioral questions but gaining low results. Then we proceeded with psychometrical attitudinal questions. All the findings of the following 8 slides will be used as the input in defining customers’ profile. The following list shows results that showed significance and those who did not. Q_5 Q_16_1 Q_16_4 Q_30_4 Q_30_8 Q_30_9 Ecology attitude Better development stage Low battery autonomy Eco Friendly Flexible Self Confident Q_10 Q_19 Ideal means of transport Charging points installation Q_11 Q_14 Q_15 Q_17 not significant Q_17 Purchase destination Q_22 Q_25 Most used means of transport WTB for EV When would you be likely to buy Purchase destination Knowledge about Twizy WTB for Twizy significant description of clusters’ profile
  • 72. the renault twizy case Cluster analysis behavioral We found out that The Liberal Elitarian and The Post Modern (the groups we want to focus on) show an interesting level of concern. The P-Value is significant but the Eta Squared is under the threshold of 0,2. So the degree of the relation between the two variables is low. clusters * how do you feel toward ecology
  • 73. the renault twizy case Cluster analysis behavioral clusters * ideal means of transport From this table we may draw some behavioral implications in order to better target our clusters and find the best way to advertise Twizy. Given that Twizy category is not well defined, these results may be useful in shaping the ideal positioning of the product. We can infer that results are reliable since P-value is lower than 0,05 and Cramer’s V is higher than 0,2.
  • 74. the renault twizy case Cluster analysis behavioral clusters * better development stage of the market We observed high mean values for the three underlined groups. Significance is at a good level but Eta Squared depicts a weak relation.
  • 75. the renault twizy case Cluster analysis behavioral clusters * low battery autonomy Here is another variable that shows particular significance and may be useful for our cluster’s interpretation. Still, Eta Squared value depicts a weak relation.
  • 76. the renault twizy case Cluster analysis behavioral clusters * charging points installation Results show that this variable may have a great influence on the purchasing behavior of customers. Within Clusters, every group is strongly affected by the variable, with The Activists being the most sensitive. p-value < 0,05 Cramer’s V > 0,2
  • 77. the renault twizy case Cluster analysis behavioral clusters * eco-friendly Even though the relation between the variables is weak (Eta Squared = 0,067), we found out that The Post Modern and The Liberal Elitarian rated themselves as being eco-friendly more than others.
  • 78. Cluster analysis the renault twizy case psychometric We have to do the same assumption of the previous slide: that is, a weak relation as proven by Eta Squared. Again, the two clusters on which we would like to focus on showed the highest mean values when defining themselves as flexible. clusters * flexible
  • 79. the renault twizy case Cluster analysis psychometric Post Modern and Liberal Elitarian showed the highest values in this attitudinal question too. Nevertheless Eta Squared and P-value make this relation particularly weak. clusters * self-confident
  • 80. the renault twizy case Cluster analysis profile The Practical Someone who uses common sense and doesn’t think too hard about how to solve day-to-day problems. These subjects do not care neither of environment issues nor of technological innovations. They are focused on saving time and money, finding a fast parking. Not surprisingly, they consider the motorcycle as one of the means of transport that better suits the city. They are not charmed of fascinated by any particular brand, if it doesn’t fit their utilitarian needs. Acting rationally, they try to maximize the utility they may get from every purchase One of the main reason of their non-interest in the EV market is the low battery autonomy of the vehicles. The Practical (30)
  • 81. the renault twizy case Cluster analysis profile The Post Modern They are the main cluster on which we would like to focus on. For these subjects, interpretation is everything: reality only comes into being through their interpretation of what the world means to them individually Always up-to-date, the post-modern individual is always searching for the latest trends and trying to be an early adopter in order to signal his or her status. Self-confident and flexible, post-modern individuals are able to go from the easiness of the Eco-friendly life style to the chaotic everyday life of the metropolis. The Post Modern (42)
  • 82. the renault twizy case Cluster analysis profile The Activist As the name may suggests, these subjects are daily involved in giving their contribute to the safeness of the environment. Showing off status and following trends are things of no matter for these subjects. They are anchored to highly social-responsible values. They would be willing to lose some time rather than denying their deeply rooted values. Their interest in the purchase of an Ev is highly affected by the presence of a well-structured network of charging points around the city. The Activist (32)
  • 83. the renault twizy case Cluster analysis profile The Top Gearer The Top Gearer (42) The Top Gearer is attracted by motors in general and particularly by every new shade of the market: for example the EV growing one. In fact, he/she is the only one that selected motorcycle as a better means of transport compared to public transports. Moreover, due to his/her awareness of motors world, she/ he is conscious that the current stage of the EV market is not already developed. Generally speaking, since motors and environment don’t go hand by hand, the Top Gearer, being more focus on speed and engine performances, doesn’t care about pollution and environmental issues. His/her low eco-friendly attitude may be explained by his/her low flexibility.
  • 84. the renault twizy case Cluster analysis profile The New Yorker The New Yorker (13) In our cluster distribution this is the lowest represented cluster. From the car market point of view, he/she doesn’t represent a relevant target. The New Yorker is the individual that has a deep knowledge of the city and lives it without a personal means of transport. He/she is proud and loyal to the city and understands the true past, present and future of it. He/She prefers to live the city without the issue of searching for a parking and take advantage of the public transports comfort.
  • 85. the renault twizy case Cluster analysis profile The Liberal Elitarian The Liberal Elitarian is not limited to traditional or established attitudes and views. He/she doesn’t want to be targeted as in search of self esteem or a trend setter but at the same time is continuously seeking for ways to establish his/her social position. This prerogative is reflected in his/her high attitude towards new and unconventional stuff that makes him/her feel like a pioneer of innovative markets (like the one of Electric Vehicles). The necessity to establish his/her social position and to demonstrate the capability to be a relevant part of the society is given by the high flexibility and the strong self-confidence used as signals to the others. Moreover, to reinforce their self esteem, they show to be involved in high sensitive social issues like ecology. Saving time is a relevant factor in his/her life, since he/she lives the city in a frenetic and busy way. The Liberal Elitarian (31)
  • 87. Renault Twizy the renault twizy case business implications: lack of brand awareness In slide 45, we pointed out a major issue regarding brand relevance. The contingency table showed how between those who did not select Renault as a knowledgeable EV manufacturer brand, the 68% did know Twizy. This underlines a lack of Brand Awareness, highlighted by the fact that Toyota was recognized as the major EV manufacturer, although not producing pure EV at all. Graveyard Brand (low recognition and high recall) The risk of this peculiar situation lies behind the fact that consumer may not recognize Renault in the consideration set (brands that you consider while in decision-making situation). Nevertheless, results showed that Twizy is doing really well in the consumers market. What could be a solution? Considering the full range of Renault Electric Vehicle that can reach different targets (Twizy, Kangoo, Fluence), Renault should gather the benefits for them all through push-based strategies.
  • 88. Renault Twizy the renault twizy case business implications: communication strategy What positioning could be better for Twizy? As Slide 70 shows, Motorcycle and Public Transports are perceived, by every cluster, as the ideal means of transport for Milan. So we think that Twizy should take advantage of its characteristics: § agility, flexibility and time saving which depict it as concept close to motorcycle § low costs of maintenance and refurnish (0,015€/km) § allowed access to Area C, peculiar characteristic of public transports Saves money and time We think that not only Renault, but also all the other EV manufacturers are focusing too much in conveying eco-friendly values rather than pushing the money saving features of an EV. Looking at our economic situation, this could turn out to be a key success factor in the market.
  • 89. Renault Twizy the renault twizy case business implications: Twizy for post-moderns Showing off status We saw that The Post Moderns pay a lot of attention on showing off their status, following new trends and being the early adopters. How can Renault reach them? Renault is already doing a great job in this direction. In fact it is positioning the Twizy as an identifying object which encloses all the values important for this category. However, further improvement in the marketing campaigns could be implemented by: § empowering the presence on social networks in order to get nearer to them § embrace the social attitude of this group through the organization of events and sponsorships.
  • 90. Renault Twizy the renault twizy case business implications: Twizy for liberal elitarians Hating trends. Following trends. Although this group seems to be reluctant to following trends and showing conventional behaviors, they are interested in change and ready to invest on it. A push strategy would not be proper for this group. Instead Renault should try to induce them to get closer to the offer. Individuating opinion leaders and market mavens (through magazines and specialized blogs) could influence their attitude towards Twizy, without making them feel targeted. As far as advertising is concerned, guerrilla and unconventional marketing activities could be more effective than conventional ones. As for Post-moderns, the positioning concept should be located somewhere between motorcycles and public transports.
  • 91. Renault Twizy the renault twizy case business implications: Twizy for Top Gearers (potential customers) A potential pool of customers They are one of the major clusters (22%) thus representing a great opportunity to enlarge the Twizy base of customers. Targeting would be a matter of time: as soon as manufacturers will produce more performing Electric Vehicles the Top Gearers will be attracted by the market. In fact they pay attention to the car characteristics rather than on the environmental impact of the vehicle. The main reason for they aren’t already interested in the market is indeed due to the early stage of the market and low performance of the vehicle (low battery autonomy). Specialized magazines articles, TV shows and conventional advertising could be successful means through which getting closer to them.
  • 92. Renault Twizy the renault twizy case business implications: research limitations Limits of the research § Due to the composition of our sample (in particular about the knowledge of this market) we found it hard to individuate heterogeneous behaviors that could allow us to draw a more precise segmentation § Our questionnaire was obviously not perfect. Thinking about what have been the problems in analyzing data and in drawing conclusions, we would have eventually focused on: § more quantitative questions § inserting themes related with cheapness of the vehicle and testing a wider range of behavioral questions other than eco-friendly Macro-environmental issues § The Italian market for electric vehicles is not so profitable mainly because of the policy makers’ low efforts that make it slower for this market to tip the take-off point. § Looking at the European scenario (where country like England and Holland are investing a lot), we can say that it is a great opportunity lost.
  • 93. Sitography the renault twizy case § http://www.istat.it § http://www.thegreencarwebsite.co.uk/blog/index.php/2012/05/15/sorry-boris-europes-ev-capital- isoxford/ § http://www.e-moving.it" § http://www.sciencedirect.com/science/article/pii/S2210422412000056 § http://www.independent.co.uk/life-style/motoring/road-tests/renault-twizy-7639565.html § http://www.renault.com/en/vehicules/aujourd-hui/renault-vehicules-electriques/pages/ twizy.aspx § http://www.autoblog.it/post/54023/auto-elettriche-elenco-completo-luglio-2012 § http://www.ideegreen.it/quanti-veicoli-elettrici-circolano-in-italia-10302.html