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Marketing Management BSP022
Coursework Assignment
Outline Marketing Plan
Electric Cars
By Stefano Goosey (B511976), Manuel Muessener (B516923), Victoria Hevey
(B529622), Elizabeth Burchill (B529043), Johanna Jansson (B517391)
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Contents
Section Pages
Part A 3
Part B
2.1 Background of the Company
4
2.2 Marketing Audit 5-6
2.3 SWOT Analysis 6-8
2.4 Marketing Objectives 8
2.5 Core Strategy 8-9
2.6 Marketing Mix 10-14
Reference List 15-16
Appendices 17-23
Part C
Reflective Summary
24-28
Figure 1: BQM Logo 4
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1. Part A
Under the umbrella of the BQM Group various products have been designed, manufactured
and delivered to satisfy the needs of our customers. BQM stands for British Quality Motors
mirroring our strengths and focus in the process of manufacturing vehicles. Our range of
cars has always been recognised as being of high quality and reliable in use. As a sign of
quality we always push our research standards and refuse to bring our cars on to the market
if they are not up to our standards. Furthermore, our vehicles have always been unique in
image and performance in order to build a strong brand appearance in each targeted
segment of the car market.
Since the early days of BQM, we have prided ourselves on innovative technology and our
focus on the sustainable development of our cars. As a company, we realised the
importance of electric vehicles a long time ago and had a steady development to finally
introduce our model after 40 years of research.
The Eden is our final outcome, testing and optimising the quality of our first electric vehicle
for our target market. The name is derived from our aim to offer the customer an escape
from the hustle and bustle of daily life. The Eden should be a place to feel safe, relax, and is
designed to give you the 360 degree experience of a car without any drawbacks of it being
electric. As Eden is a car for the whole family, everyone can be a part of the high quality
design (See Appendix 1 for full target audience). Due to these factors being considered in
our manufacturing process, we have created a model where our customers experience a
new side of BQM, whilst still maintaining the key values of our brand.
As a result, we are proud to release the high quality, all new electric hatchbacks that provide
next generation technology to welcome you to the purest of driving experiences. Combining
an exhilarating yet near-silent journey, on a full battery Eden will allow you to drive up to 200
miles and for those intent on longer journeys, our E-Range Extender would provide you with
a further 100 miles. Eden can reach speeds of up to 94mph and will accelerate from 0 - 60 in
7.0 seconds. Our fresh and natural looking interior combines Eden’s environmentally friendly
and sustainable materials with the aesthetic image of BQM. Our open-pore eucalyptus wood
nestling under our cutting edge Sat-Nav system adds to the 360 degree experience,
enabling a quality finish to our electric car.
Welcome to the next generation of British Quality Motors. Welcome to Eden.
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2. Part B
2.1 Background of the Company
British Quality Motors Ltd (BQM) was founded in 1951 by a group of engineers in Coventry,
UK. BQM began manufacturing road vehicles for the mass market and the company soon
grew to create a wide and dynamic product range. BQM prides itself on being at the forefront
of technology and producing quality and reliable vehicles. Our brand is recognised worldwide
and we have a large presence in the European car market, yet we are aiming to be the
market leader of electric vehicles by 2020. For almost 40 years our highly trained staff have
been involved in innovating and investing in research and development to produce electric
vehicles which has now led BQM to the unveiling of our all-new electric car, Eden. Our logo
is discreet yet mirroring the prestigious history of the company and it has a high value of
brand recognition and embraces the feeling of driving a high quality vehicle.
Figure 1: BQM Logo
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2.2 Marketing Audit
PESTLE
From a political perspective the UK government has set aside an extra £200m to continue
the £5000 electric car grant they have previously offered until 2020 (GOV.UK, 2015). This
grant now involves a 3 tier system which favours Ultra Low Emissions Vehicles, geared
towards those with: zero emissions, a range of over 80 miles and CO2 emissions under
50g/km. This should contribute to a shift in the market, pushing people to buy electric cars.
The average disposable income for households in Britain was at its highest in 2014/15
(Tonkin, 2015), meaning people are more likely to spend money on latest innovations such
as electric cars. The overall cost of owning an electric vehicle over 6 years is lower than a
fossil fuel vehicle (Foster, 2014). Fossil fuel: 40 miles a day, 30 days of the month, 1200
miles a month, $192 a month. Nissan Leaf: $36 a month to take the same trips.
From a social and environmental perspective, consumer preferences are changing. The
increasing threat of global warming, the cost of fossil fuel and the depletion of global oil
reserves are all becoming an issue. This puts increasing pressure on car manufactures to
produce a cost effective, efficient and environmentally friendly car (Foster, 2014). Electric
vehicle advantages are obvious however many consumers still don’t believe in it. It is
thought the range is not high enough to satisfy needs and that electric cars are slow and
unattractive. Barriers to adoption need to be broken down through marketing. The
technology behind EV must keep up with the growing market. Consumers are demanding
more from manufacturers in regards to mile range, speed and charging time. Tesla’s 265
mile vehicle is a huge milestone, which all other manufactures must aim to keep up with in
order to remain competitive.
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Porter’s Five Forces
The risk of new entrants in this market is relatively small as that requires very high start-up
cost and significant knowledge and know-how. There are also many constrictions to be met
considering safety and environmental restrictions as well as many already well-known,
established brands to compete with. Other means of transportation that are initially cheaper,
for example fuel and hybrid cars could be seen as potential substitutes, along with other
environmentally friendly and easy access alternatives such as bikes, buses and trains,
especially in a city environment.
There are many strong competitors on the market with fairly similar products, although not
identical, when it comes to price and technology. The level of differentiation is low, making it
important to have a strong brand in order to stand out.
2.3 SWOT Analysis
Strengths Weaknesses
1. Brand Reputation 1. Perceived High Prices
2. Innovative Technology 2. Strategic Alliances
3. Corporate Social Responsibility (CSR) 3. First Electric Car
4. Diverse Product Portfolio 4. Perceived Range Anxiety for EV’s
5. Environmentally Friendly Vehicles
Opportunities Threats
1. Falling Price of Electricity 1. High Competition
2. Government Support for Environmentally
Friendly Vehicles
2. Increasing Costs of Raw Materials
3. Increasing Sales of Electric Cars in the UK 3. BQM not perceived to be Environmentally Friendly
Strengths
1. We are known to have a highly reputable brand and BQM was listed in Forbes’ Top
100 Most Valuable Brands in 2014.
2. BQM highly values its research, development and engineering capabilities. Together
with a highly skilled workforce, BQM is able to produce quality products with
innovative technology.
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3. BQM considers its commitment to the environment, well-being of employees and the
community as an important priority. We provide health care programmes for our staff
and implement strategies for waste reduction.
4. BQM has gained high revenue from the strategy of providing a wide a range of
products targeting a wide variety of segments whilst maintaining its policy of quality.
5. Our research and development capabilities allow us to consistently find new ways of
reducing CO2 emissions and as a result we can help protect the environment.
Weaknesses
1. Due to the quality of cars BQM produce, there is a perception that prices might be
high. We manufacture products that often require quality materials and a highly
skilled workforce that together produce quality products with low recalls and
contribute to the strong brand image.
2. BQM has very little alliances with other automotive companies which may restrict our
sales growth of electric cars due to our lack of existing market knowledge.
3. This is our first electric car on the market with a late entrance in 2016 compared to
our competitors.
4. Customers with little knowledge of Electric Vehicles may be unwilling to purchase
these types of cars due to the low battery range.
Opportunities
1. The price of electricity is 20% lower than it was at the beginning of 2014 (Murray,
2015).
2. BQM prides itself on displaying a wide variety of products; however with the release
of our first electric vehicle we have been able to expand our portfolio.
3. Throughout the world national governments are introducing incentives for
environmentally friendly vehicles. In the UK, the Plug in Car-Grant has been
introduced to encourage consumers to purchase electric cars.
4. In 2014 there was a 44% rise in sales of electric cars (The Guardian, 2014) and with
them being relatively new products to the market, it can be expected that growth of
electric car sales will continue.
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Threats
1. BQM is under increased pressure from competitors as many consumers are attracted
by lower prices rather than differentiation between products. Alternatives on the
market of electric cars include the likes of Nissan, Toyota and BMW.
2. A survey carried out in February 2015 (Market Realist) concludes that raw materials
contribute to 47% of costs in the production and sales of an automobile. Increased
costs in this area will be a threat to the company resulting in lower profit margins.
3. As this is our first electric car, in the short term customers may be loyal to other
manufacturers in terms of purchasing electric cars.
2.4 Marketing Objectives
To set a specific and measurable marketing objective we will aim to gain 15% of the market
share in the UK electric car market within the next year. This would project us into a strong
position to reach our long term goal in becoming the number one EV manufacturer in the
UK. This percentage is based on statistical research carried out by Next Green Car (Oct.
2015) into sales of electric cars in the UK in previous years. Referring to our Opportunities
section in the SWOT analysis, sales of electric cars in the UK are expected to increase each
year as customers become aware of the environmentally and long-term benefits of electric
cars. Due to our well established brand and our long conducted product development this is
a challenging, yet achievable and realistic goal for the first year after our product launch.
2.5 Core Strategy
Product Life cycle
EV´s are positioned in the early growth stage of the product life cycle at the moment as the
EV market is still increasing and new models, upgrades etc. come into the market.
Ansoffs Matrix
Using this model to assess our core strategy we are utilizing the theory of Product
Development (Ansoff, 1957) which is the development of new products for existing markets.
(See Appendix 2 for Ansoffs Matrix table). In the UK, the first fully electric cars were on the
market in 2013 with more and more car manufacturers producing these types of vehicles.
We have produced a diverse range of cars for over 50 years and Eden will become our first
all-electric car in the UK market.
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Competitive Advantage
In all facets of our business, BQM strives to show quality and reliability to give customers the
best experience possible. With the production of Eden we have combined low cost materials
whilst still maintaining excellent aesthetics which we believe has given us an advantage
compared to our competitors. Our highly trained staff and customer service are extremely
knowledgeable and able to help quickly and provide advice when necessary. Showrooms
are present in several UK Cities and Towns which are easily accessible to customers
meaning less travel time. We are confident that our extensive market research combined
with our brand quality will ensure that we have created the most comprehensive all-electric
in the UK.
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2.6 Marketing Mix (See Appendix 3 for analysis of additional three P’s)
Product
Eden
We have maximised on our research and developed the most sophisticated electric car on
the market. Not only do our engineering capabilities contribute to the smoothest and most
pleasurable drive but our cutting edge technology allows for breath-taking features adding to
the high quality that Eden can accommodate. The Sat-Nav system is included as standard
and has the ability to locate charge points throughout the UK, giving drivers the ability to plan
their journeys effectively. It will also show drivers their contribution to maintaining low CO2
emissions.
Extras
These features are also included in the EdenGo mobile app where the cars battery level can
be monitored whenever, wherever. This is in conjunction with the Apple Watch app which
also offers a similar experience. The app cleverly allows the driver to communicate with
Eden on aspects such as journey planning in order to prepare the car temperature, for
example. An extra which can be added to Eden is the E-Range Extender, propelling drivers
to an additional 100 miles in comparison to our standard model. In partnership with
Chargemaster PLC, BQM enables Eden customers to access a large number of public
charge stations with the ChargeCard (can also be purchased with Apple Pay), which is free
to all Eden customers. This can loaded on a pay-as-you-go basis which can be topped up
online or via EdenGo.
Safety
BQM can assure customers of our reliability and dependability at all times. Eden has a fully
integrated airbag system which ensures optimum safety and customers are able to access
emergency assistance 24 hours a day and will be in touch with BQM service agents in
minutes. BQM is widely renowned for our high standards of safety and we regularly receive
a 5 star rating from EURO NCAP (See Appendix 4). Eden has an extended warranty of 9
years or 110.000 miles as standard to assure each customer of the long-term quality and
reliability of the car.
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Place
Distribution
Manufacturing takes place in our centralised location of Coventry which provides an
excellent platform of distribution to UK towns and cities. BQM has several storage facilities in
close proximity to our dealerships. The vast amount of BQM dealerships throughout the UK
will display Eden in showrooms with corners specifically dedicated to the car. BQM works on
a Business to Customer basis (B2C) where our dealerships directly sell to customers who
include individuals and company car schemes and the cars will be displayed immediately
upon release.
Logistics
BQM’s lean production model aids the supply chain and logistics process simply through
effective planning to ensure our customers’ requirements are met. Our highly trained staff
and advanced technology ensure fast delivery of vehicles from the point of order. A ‘just-in-
time’ production policy is used to reduce waste and inventory whilst our excellent transport
management guarantees vehicles will be delivered to dealerships in the required time.
Target area
We aim to place Eden in our showrooms and dealerships nationwide; however our main
target area will be focused on London and surrounding areas. The majority of our marketing
efforts and highlights in our showrooms will be displayed here, along with the Birmingham
area as our second economic hub. Showrooms in these areas will have an increased and
dedicated emphasis towards sales of Eden and customers can enjoy the full BQM
experience.
Promotion
The ‘Welcome to Eden’ promotional campaign aims to create engagement and to drive
forward the passion that we have manifested for our all-new electric car, aiming to share the
adventure with prospective consumers. The promotional campaign is extensive, with a
budget of £40 million, as BQM strives to be the go to brand when it comes to electric cars in
the future and believe a grand campaign at an early stage can help accomplish that (see
Appendix 5 for full cost breakdown). Six weeks prior to the release of Eden we shall be
holding multiple events on different days throughout the cities and suburban areas, taking
advantage of the small geographic area and social media's ability to spread information
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within it. The event locations will feature “gardens of Eden” and strive to include the entire
family. There will be activities for children such as driving around in miniature versions of
Eden and parents will be able to see the launch of the car and speak to and be provided with
an insight from our vastly knowledgeable staff. This should both look and be spectacular to
obtain various social media feeds filled with our hashtag #WelcomeToEden, which people
will need to use to enter the competition to win a brand new car. People will even be able to
pre-order Eden itself and receive several incentives or sign up to email subscriptions for
further information.
Funding
In our alliance with Chargemaster PLC, one main promotional tool will be a funding scheme
where we provide one new rapid charge station (branded with our logo to increase
awareness) throughout the UK with every 50 purchased cars. This will, for example, help to
decrease the range anxiety of our potential customers by building a better network of
charging stations. As a result, this would raise awareness for BQM, connecting more people
to our brand and allowing them to become part of the success story of Eden while showing
Corporate Social Responsibility (CSR). Linked to our social media streams we will launch a
counter, where people can track the funded stations. Furthermore, there will be alerts and
announcements whenever we hit big numbers.
Social Media
In conjunction with our brand engagement, social media will play an enormous role in driving
interaction with prospective customers and to amplify Eden’s stature. Facebook, Twitter,
Instagram, Linkedin and YouTube will all feature news and articles regarding our new car
and people will be able to interact with the BQM brand before, during and after release (See
Appendix 6.1 for promotional campaign images). 79% of the UK population use these
platforms of social media with this figure likely to increase by 6% in the next year (Social
Media London, 2015).
Billboards
We will make full use of road billboards in large cities and suburbs such as London and
Birmingham where they will be easily visible and gain mass awareness. This will be an
effective use of targeting our audience through focusing on specific geographical locations
(See Appendix 6.2 for billboard example).
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Television and Radio
Our television adverts will heavily feature between the hours of 19:00 and 23:00 and be
specifically targeted to geographic regions where our target audience are based. ITV1 and
Channel 4 will display many of our adverts during popular shows and films which will gain a
mass audience. According to BARB (2015), on average these two channels gain 31,685
viewers per day and have 19.98% of the total share of television viewers. BBC’s Top Gear
will run a feature on electric cars with a specific focus on Eden in one of its episodes in 2016.
The show attracts a substantial audience worldwide, which is beneficial to promote Eden as
well as increase brand awareness. In terms of radio, we will be focused on the ‘drive time’
part of the day between the hours of 17:00 - 22:00 with a large focus on London based DAB
station talkSPORT.
Print Media
Articles will be displayed in magazines such as ‘AUTOCAR’ and ‘What Car?’ where motoring
journalists will test drive and review our electric car and can provide consumers with an
added and impartial insight to our car. Eden’s adverts with features on the car's specification
will be included in Sunday Newspapers such as The Telegraph and The Daily Mail. In the
UK over 10 million people aged 35 - 54 read these newspapers on a weekly basis
(Newsworks, 2015).
Sponsorship
Each year BQM is the official sponsor of the PGA Golf Championship in Wentworth, Surrey.
On the outskirts of London, the pillar event in May is a fantastic opportunity to promote our
brand and specifically Eden. The Golfing elite compete for one of the European Tour's
biggest prize purses and attract an enormous amount of fans. Sky Sports will be
broadcasting the four day event live, making it accessible to our target audience. Our logo
features on player interview and press conference billboards, along with caddy vests, flags
and hospitality tents. Competitions shall be held throughout the tournament for fans such as
the ‘longest drive’ challenge and winners can receive prestigious prizes. Eden will be the
official transportation car of the tournament (see Appendix 7 for image of sponsorship).
Internet advertising
Our online marketing campaign will exploit tools such as Google Ads and AdChoices to cater
to our target audiences search history. Adverts will appear on Google and people's social
media pages, meaning information and links to the BQM website and Eden page will be
more susceptible.
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Price
A standard model of Eden starts at £29,999 inc. VAT including the UK Government discount
scheme (GOV.UK, 2015). Eden drives 200 miles on a full battery; however for £2500 extra
customers can purchase the E-Range Extender which guides drivers to a further 100 miles.
In addition, our funding partnership with Chargemaster PLC, enables Eden customers to
access a large number of public charge stations with the the ChargeCard (usable with Apple
Pay). This is free to all Eden customers and can be topped up online or via the EdenGo. A
public charge cable can be purchased for £125.
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References
ANONYMOUS. 2015, National Readership Survey Market Overview: Readership. [online].
Newsworks, London. [Viewed 15/11/2015]. Available from:
http://www.newsworks.org.uk/Market-Overview
ANONYMOUS. 2015, Plug-in Car Grant. [online]. GOV.UK, London. [Viewed 04/11/2015].
Available from: https://www.gov.uk/government/publications/plug-in-car-grant
ANONYMOUS. 2015, Weekly Viewing Summary. [online]. Broadcasters Audience Research
Board. [Viewed 14/11/2015]. Available from:
http://www.barb.co.uk/whats-new/weekly-viewing-summary?_s=4
Ansoff, I. (1957) ‘Strategies for Diversification’, Harvard Business Review, Sept.-Oct., 113-24
Doughty, S. (2013) Are you a precariat, new affluent worker or elite? Study reveals there are
now SEVEN social classes in the new jargon-filled British class system. [online]. The Daily
Mail, London. [Viewed 23/10/2015]. Available from: http://www.dailymail.co.uk/news/article-
2303333/Great-British-Class-Survey-reveals-UK-7-social-classes-Are-precariat-new-affluent-
worker-elite.html
Fleischmann, C. 2015, UK Digital, Social and Mobile Statistics for 2015 #smlondon. [online].
Social Media London, London. [Viewed 14/11/2015]. Available from:
http://socialmedialondon.co.uk/digital-social-mobile-statistics-2015/
Foster, C, 2014. Electric cars the benefits and the barriers. [online]. Virgin. [viewed
20/11/2015]. Avaliable from: http://www.virgin.com/disruptors/electric-cars-the-benefits-and-
the-barriers
GOV.UK, 2015. Plug in car and van grants. [online]. Government Services. [viewed
24/11/2015]. Avaliable from: https://www.gov.uk/plug-in-car-van-grants/overview
Kallstrom, H. 2015, Raw materials – the biggest cost driver in the auto industry. [online].
Market Realist, New York. [Viewed on 31/10/2015]. Available from:
http://marketrealist.com/analysis/stock-analysis/consumer/autos-consumer-
retail/charts/?featured_post=159585&featured_chart=203249
Lane, B. 2015, Electric car market statistics. [online]. Next Green Car, Bristol. [Viewed
10/11/2015]. Available from: http://www.nextgreencar.com/electric-cars/statistics/
Murray, M, 2015. Falling energy prices? This is the best way to take advantage… [online].
The Telegraph, London. [viewed 24/11/2015]. Available from:
http://www.telegraph.co.uk/finance/personalfinance/energy-bills/10970226/Bills-soar-by-up-
to-193-how-to-beat-the-rise.html
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Nichols, W. (2014) UK electric car sales surge in 2014. [online]. The Guardian, London.
[Viewed 19/11/15]. Available from: http://www.theguardian.com/environment/2014/oct/07/uk-
electric-car-sales-surge-in-2014
Tonkin, R, (2015). Nowcasting household income in the UK: Financial year ending 2015.
[online]. Office for National Statistics. [viewed 24/11/15]. Available from:
http://www.ons.gov.uk/ons/dcp171778_421593.pdf
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Appendices
Appendix 1- Full Target audience
BQM Eden’s target audience:
- Families with children.
- Ages 35 - 55 Male and Female
- Mainly based in locations such as London and Birmingham and surrounding towns.
- Those who are highly educated, middle class with disposable income.
- Will stay up to date with current news and events and be active on social media
platforms.
- Need a car for everyday use such as dropping children to school, shopping etc.
- Enjoy doing things together as a family such as: day trips, holidays, sports etc.
- Be environmentally aware and may invest in an electric car to save money in the long
run. In addition, would be aware of the impact that their individual actions have and
may want to be a role model for children.
Appendix 1 (Doughty, 2013).
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Appendix 2- Ansoff’s Matrix Table
Markets
Existing New
Existing
Market Penetration or
Expansion
Market Development
Products
New/Related
Product Development Enter New Markets
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Appendix 3 - Analysis of Additional three P’s
Physical Environment
In our well known car venues in and around London various dealerships in Suburban and
London central areas, Eden will receive a special corner to highlight the product and will be
surrounded by natural items like little plants and warm, friendly yet classic colours.
People
In order to provide our customers with the best service experience we will have pre-launch
product trainings with all of our salesmen along with test drive opportunities in order to
provide our salesmen with first-hand experience and a founded knowledge of our new
product. This is key to our product as we are well known for our service and high quality of
our vehicles. We believe that salesmen can only serve our customers’ right if they know
exactly what they are selling. The customer service process will be supported by several
dates where BQM technology representatives will be present at events, dealerships and
other venues to talk about the Eden and invite people to test drive the car. All of this will be
under our hashtag #WelcomeToEden.
Process
Delivery of cars can be arranged for new customers to get an exclusive offer to pick up their
car in our factory and experience the BQM world and wonder through our heritage and
history.
Appendix 4
1. Euro NCAP is the European New Car Assessment Programme which assesses
vehicle safety. The rating system is highly regarded and supported by the European
Commission.
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Appendix 5 - Full Cost Breakdown
Promotion Type Cost Timing
Billboards £2.5 million ● 6 week period - before,
during & after
Television £5 million ● 5 adverts a day, 7 days a
week
● 6 week period - before,
during & after
Radio £1.5 million ● 10 adverts a day, 5 days a
week
● 6 week period - before,
during & after
Print Media £30,000 ● 6 week period - before,
during & after
Sponsorship of Golf £15 million ● 4 day event
Internet Advertising & Social
Media
£1.5 million ● Ongoing after release
Chargemaster Funding £5000 per unit-total
spent depend on
sales
● First 6 months then
reviewed
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Appendix 6
6.1 - Promotional Campaign Images
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6.2 - Billboard Example
Appendix 7 - Image of Sponsorship
An Byeong-hun - The winner of the 2015 BQM PGA Championship at Wentworth Club,
Surrey.
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Name: Manuel Muessener, B516923
Role in Team Joint Team Leader
Contributions to team report:
I took an active role as one of the team leaders and responsibility for
scheduling meetings, leading team discussions and further assign tasks to
each group member. In terms of the written report I helped to establish a
consistent writing style.
In terms of the written report, I contributed by creating ideas for the car logo,
writing parts of Part A and the Marketing Mix. Moreover, I conducted research
at most stages of the report, especially on the electric car markets and took
initiative to find marketing ideas to promote our product.
Things you found valuable about working in a team:
Every team member has its strength and weaknesses. To identify how every
member can contribute to the assignment in the best way, was a valuable
experience and enriched our overall outcome of the marketing plan.
Further, distributing the workload in equal parts and learns how to make every
team member feel heard and valuable to the team was a good experience.
Things you found challenging about working in a team:
Sometimes it was difficult to implement the ideas and thoughts of each team
member. Scheduling meetings that suit everyone was challenging from time to
time as well.
The most important thing you have learnt about team working:
Communication was probably the most important thing. In every aspect
communication was crucial no matter if it was in the context of scheduling
meetings, the right tone in group discussions, lead conversations to final
decisions or make every team member have the same right to be heard.

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Marketing Management Coursework for Linkedin

  • 1. Marketing Management BSP022 Coursework Assignment Outline Marketing Plan Electric Cars By Stefano Goosey (B511976), Manuel Muessener (B516923), Victoria Hevey (B529622), Elizabeth Burchill (B529043), Johanna Jansson (B517391)
  • 2. 15BSP022 2 Contents Section Pages Part A 3 Part B 2.1 Background of the Company 4 2.2 Marketing Audit 5-6 2.3 SWOT Analysis 6-8 2.4 Marketing Objectives 8 2.5 Core Strategy 8-9 2.6 Marketing Mix 10-14 Reference List 15-16 Appendices 17-23 Part C Reflective Summary 24-28 Figure 1: BQM Logo 4
  • 3. 15BSP022 3 1. Part A Under the umbrella of the BQM Group various products have been designed, manufactured and delivered to satisfy the needs of our customers. BQM stands for British Quality Motors mirroring our strengths and focus in the process of manufacturing vehicles. Our range of cars has always been recognised as being of high quality and reliable in use. As a sign of quality we always push our research standards and refuse to bring our cars on to the market if they are not up to our standards. Furthermore, our vehicles have always been unique in image and performance in order to build a strong brand appearance in each targeted segment of the car market. Since the early days of BQM, we have prided ourselves on innovative technology and our focus on the sustainable development of our cars. As a company, we realised the importance of electric vehicles a long time ago and had a steady development to finally introduce our model after 40 years of research. The Eden is our final outcome, testing and optimising the quality of our first electric vehicle for our target market. The name is derived from our aim to offer the customer an escape from the hustle and bustle of daily life. The Eden should be a place to feel safe, relax, and is designed to give you the 360 degree experience of a car without any drawbacks of it being electric. As Eden is a car for the whole family, everyone can be a part of the high quality design (See Appendix 1 for full target audience). Due to these factors being considered in our manufacturing process, we have created a model where our customers experience a new side of BQM, whilst still maintaining the key values of our brand. As a result, we are proud to release the high quality, all new electric hatchbacks that provide next generation technology to welcome you to the purest of driving experiences. Combining an exhilarating yet near-silent journey, on a full battery Eden will allow you to drive up to 200 miles and for those intent on longer journeys, our E-Range Extender would provide you with a further 100 miles. Eden can reach speeds of up to 94mph and will accelerate from 0 - 60 in 7.0 seconds. Our fresh and natural looking interior combines Eden’s environmentally friendly and sustainable materials with the aesthetic image of BQM. Our open-pore eucalyptus wood nestling under our cutting edge Sat-Nav system adds to the 360 degree experience, enabling a quality finish to our electric car. Welcome to the next generation of British Quality Motors. Welcome to Eden.
  • 4. 15BSP022 4 2. Part B 2.1 Background of the Company British Quality Motors Ltd (BQM) was founded in 1951 by a group of engineers in Coventry, UK. BQM began manufacturing road vehicles for the mass market and the company soon grew to create a wide and dynamic product range. BQM prides itself on being at the forefront of technology and producing quality and reliable vehicles. Our brand is recognised worldwide and we have a large presence in the European car market, yet we are aiming to be the market leader of electric vehicles by 2020. For almost 40 years our highly trained staff have been involved in innovating and investing in research and development to produce electric vehicles which has now led BQM to the unveiling of our all-new electric car, Eden. Our logo is discreet yet mirroring the prestigious history of the company and it has a high value of brand recognition and embraces the feeling of driving a high quality vehicle. Figure 1: BQM Logo
  • 5. 15BSP022 5 2.2 Marketing Audit PESTLE From a political perspective the UK government has set aside an extra £200m to continue the £5000 electric car grant they have previously offered until 2020 (GOV.UK, 2015). This grant now involves a 3 tier system which favours Ultra Low Emissions Vehicles, geared towards those with: zero emissions, a range of over 80 miles and CO2 emissions under 50g/km. This should contribute to a shift in the market, pushing people to buy electric cars. The average disposable income for households in Britain was at its highest in 2014/15 (Tonkin, 2015), meaning people are more likely to spend money on latest innovations such as electric cars. The overall cost of owning an electric vehicle over 6 years is lower than a fossil fuel vehicle (Foster, 2014). Fossil fuel: 40 miles a day, 30 days of the month, 1200 miles a month, $192 a month. Nissan Leaf: $36 a month to take the same trips. From a social and environmental perspective, consumer preferences are changing. The increasing threat of global warming, the cost of fossil fuel and the depletion of global oil reserves are all becoming an issue. This puts increasing pressure on car manufactures to produce a cost effective, efficient and environmentally friendly car (Foster, 2014). Electric vehicle advantages are obvious however many consumers still don’t believe in it. It is thought the range is not high enough to satisfy needs and that electric cars are slow and unattractive. Barriers to adoption need to be broken down through marketing. The technology behind EV must keep up with the growing market. Consumers are demanding more from manufacturers in regards to mile range, speed and charging time. Tesla’s 265 mile vehicle is a huge milestone, which all other manufactures must aim to keep up with in order to remain competitive.
  • 6. 15BSP022 6 Porter’s Five Forces The risk of new entrants in this market is relatively small as that requires very high start-up cost and significant knowledge and know-how. There are also many constrictions to be met considering safety and environmental restrictions as well as many already well-known, established brands to compete with. Other means of transportation that are initially cheaper, for example fuel and hybrid cars could be seen as potential substitutes, along with other environmentally friendly and easy access alternatives such as bikes, buses and trains, especially in a city environment. There are many strong competitors on the market with fairly similar products, although not identical, when it comes to price and technology. The level of differentiation is low, making it important to have a strong brand in order to stand out. 2.3 SWOT Analysis Strengths Weaknesses 1. Brand Reputation 1. Perceived High Prices 2. Innovative Technology 2. Strategic Alliances 3. Corporate Social Responsibility (CSR) 3. First Electric Car 4. Diverse Product Portfolio 4. Perceived Range Anxiety for EV’s 5. Environmentally Friendly Vehicles Opportunities Threats 1. Falling Price of Electricity 1. High Competition 2. Government Support for Environmentally Friendly Vehicles 2. Increasing Costs of Raw Materials 3. Increasing Sales of Electric Cars in the UK 3. BQM not perceived to be Environmentally Friendly Strengths 1. We are known to have a highly reputable brand and BQM was listed in Forbes’ Top 100 Most Valuable Brands in 2014. 2. BQM highly values its research, development and engineering capabilities. Together with a highly skilled workforce, BQM is able to produce quality products with innovative technology.
  • 7. 15BSP022 7 3. BQM considers its commitment to the environment, well-being of employees and the community as an important priority. We provide health care programmes for our staff and implement strategies for waste reduction. 4. BQM has gained high revenue from the strategy of providing a wide a range of products targeting a wide variety of segments whilst maintaining its policy of quality. 5. Our research and development capabilities allow us to consistently find new ways of reducing CO2 emissions and as a result we can help protect the environment. Weaknesses 1. Due to the quality of cars BQM produce, there is a perception that prices might be high. We manufacture products that often require quality materials and a highly skilled workforce that together produce quality products with low recalls and contribute to the strong brand image. 2. BQM has very little alliances with other automotive companies which may restrict our sales growth of electric cars due to our lack of existing market knowledge. 3. This is our first electric car on the market with a late entrance in 2016 compared to our competitors. 4. Customers with little knowledge of Electric Vehicles may be unwilling to purchase these types of cars due to the low battery range. Opportunities 1. The price of electricity is 20% lower than it was at the beginning of 2014 (Murray, 2015). 2. BQM prides itself on displaying a wide variety of products; however with the release of our first electric vehicle we have been able to expand our portfolio. 3. Throughout the world national governments are introducing incentives for environmentally friendly vehicles. In the UK, the Plug in Car-Grant has been introduced to encourage consumers to purchase electric cars. 4. In 2014 there was a 44% rise in sales of electric cars (The Guardian, 2014) and with them being relatively new products to the market, it can be expected that growth of electric car sales will continue.
  • 8. 15BSP022 8 Threats 1. BQM is under increased pressure from competitors as many consumers are attracted by lower prices rather than differentiation between products. Alternatives on the market of electric cars include the likes of Nissan, Toyota and BMW. 2. A survey carried out in February 2015 (Market Realist) concludes that raw materials contribute to 47% of costs in the production and sales of an automobile. Increased costs in this area will be a threat to the company resulting in lower profit margins. 3. As this is our first electric car, in the short term customers may be loyal to other manufacturers in terms of purchasing electric cars. 2.4 Marketing Objectives To set a specific and measurable marketing objective we will aim to gain 15% of the market share in the UK electric car market within the next year. This would project us into a strong position to reach our long term goal in becoming the number one EV manufacturer in the UK. This percentage is based on statistical research carried out by Next Green Car (Oct. 2015) into sales of electric cars in the UK in previous years. Referring to our Opportunities section in the SWOT analysis, sales of electric cars in the UK are expected to increase each year as customers become aware of the environmentally and long-term benefits of electric cars. Due to our well established brand and our long conducted product development this is a challenging, yet achievable and realistic goal for the first year after our product launch. 2.5 Core Strategy Product Life cycle EV´s are positioned in the early growth stage of the product life cycle at the moment as the EV market is still increasing and new models, upgrades etc. come into the market. Ansoffs Matrix Using this model to assess our core strategy we are utilizing the theory of Product Development (Ansoff, 1957) which is the development of new products for existing markets. (See Appendix 2 for Ansoffs Matrix table). In the UK, the first fully electric cars were on the market in 2013 with more and more car manufacturers producing these types of vehicles. We have produced a diverse range of cars for over 50 years and Eden will become our first all-electric car in the UK market.
  • 9. 15BSP022 9 Competitive Advantage In all facets of our business, BQM strives to show quality and reliability to give customers the best experience possible. With the production of Eden we have combined low cost materials whilst still maintaining excellent aesthetics which we believe has given us an advantage compared to our competitors. Our highly trained staff and customer service are extremely knowledgeable and able to help quickly and provide advice when necessary. Showrooms are present in several UK Cities and Towns which are easily accessible to customers meaning less travel time. We are confident that our extensive market research combined with our brand quality will ensure that we have created the most comprehensive all-electric in the UK.
  • 10. 15BSP022 10 2.6 Marketing Mix (See Appendix 3 for analysis of additional three P’s) Product Eden We have maximised on our research and developed the most sophisticated electric car on the market. Not only do our engineering capabilities contribute to the smoothest and most pleasurable drive but our cutting edge technology allows for breath-taking features adding to the high quality that Eden can accommodate. The Sat-Nav system is included as standard and has the ability to locate charge points throughout the UK, giving drivers the ability to plan their journeys effectively. It will also show drivers their contribution to maintaining low CO2 emissions. Extras These features are also included in the EdenGo mobile app where the cars battery level can be monitored whenever, wherever. This is in conjunction with the Apple Watch app which also offers a similar experience. The app cleverly allows the driver to communicate with Eden on aspects such as journey planning in order to prepare the car temperature, for example. An extra which can be added to Eden is the E-Range Extender, propelling drivers to an additional 100 miles in comparison to our standard model. In partnership with Chargemaster PLC, BQM enables Eden customers to access a large number of public charge stations with the ChargeCard (can also be purchased with Apple Pay), which is free to all Eden customers. This can loaded on a pay-as-you-go basis which can be topped up online or via EdenGo. Safety BQM can assure customers of our reliability and dependability at all times. Eden has a fully integrated airbag system which ensures optimum safety and customers are able to access emergency assistance 24 hours a day and will be in touch with BQM service agents in minutes. BQM is widely renowned for our high standards of safety and we regularly receive a 5 star rating from EURO NCAP (See Appendix 4). Eden has an extended warranty of 9 years or 110.000 miles as standard to assure each customer of the long-term quality and reliability of the car.
  • 11. 15BSP022 11 Place Distribution Manufacturing takes place in our centralised location of Coventry which provides an excellent platform of distribution to UK towns and cities. BQM has several storage facilities in close proximity to our dealerships. The vast amount of BQM dealerships throughout the UK will display Eden in showrooms with corners specifically dedicated to the car. BQM works on a Business to Customer basis (B2C) where our dealerships directly sell to customers who include individuals and company car schemes and the cars will be displayed immediately upon release. Logistics BQM’s lean production model aids the supply chain and logistics process simply through effective planning to ensure our customers’ requirements are met. Our highly trained staff and advanced technology ensure fast delivery of vehicles from the point of order. A ‘just-in- time’ production policy is used to reduce waste and inventory whilst our excellent transport management guarantees vehicles will be delivered to dealerships in the required time. Target area We aim to place Eden in our showrooms and dealerships nationwide; however our main target area will be focused on London and surrounding areas. The majority of our marketing efforts and highlights in our showrooms will be displayed here, along with the Birmingham area as our second economic hub. Showrooms in these areas will have an increased and dedicated emphasis towards sales of Eden and customers can enjoy the full BQM experience. Promotion The ‘Welcome to Eden’ promotional campaign aims to create engagement and to drive forward the passion that we have manifested for our all-new electric car, aiming to share the adventure with prospective consumers. The promotional campaign is extensive, with a budget of £40 million, as BQM strives to be the go to brand when it comes to electric cars in the future and believe a grand campaign at an early stage can help accomplish that (see Appendix 5 for full cost breakdown). Six weeks prior to the release of Eden we shall be holding multiple events on different days throughout the cities and suburban areas, taking advantage of the small geographic area and social media's ability to spread information
  • 12. 15BSP022 12 within it. The event locations will feature “gardens of Eden” and strive to include the entire family. There will be activities for children such as driving around in miniature versions of Eden and parents will be able to see the launch of the car and speak to and be provided with an insight from our vastly knowledgeable staff. This should both look and be spectacular to obtain various social media feeds filled with our hashtag #WelcomeToEden, which people will need to use to enter the competition to win a brand new car. People will even be able to pre-order Eden itself and receive several incentives or sign up to email subscriptions for further information. Funding In our alliance with Chargemaster PLC, one main promotional tool will be a funding scheme where we provide one new rapid charge station (branded with our logo to increase awareness) throughout the UK with every 50 purchased cars. This will, for example, help to decrease the range anxiety of our potential customers by building a better network of charging stations. As a result, this would raise awareness for BQM, connecting more people to our brand and allowing them to become part of the success story of Eden while showing Corporate Social Responsibility (CSR). Linked to our social media streams we will launch a counter, where people can track the funded stations. Furthermore, there will be alerts and announcements whenever we hit big numbers. Social Media In conjunction with our brand engagement, social media will play an enormous role in driving interaction with prospective customers and to amplify Eden’s stature. Facebook, Twitter, Instagram, Linkedin and YouTube will all feature news and articles regarding our new car and people will be able to interact with the BQM brand before, during and after release (See Appendix 6.1 for promotional campaign images). 79% of the UK population use these platforms of social media with this figure likely to increase by 6% in the next year (Social Media London, 2015). Billboards We will make full use of road billboards in large cities and suburbs such as London and Birmingham where they will be easily visible and gain mass awareness. This will be an effective use of targeting our audience through focusing on specific geographical locations (See Appendix 6.2 for billboard example).
  • 13. 15BSP022 13 Television and Radio Our television adverts will heavily feature between the hours of 19:00 and 23:00 and be specifically targeted to geographic regions where our target audience are based. ITV1 and Channel 4 will display many of our adverts during popular shows and films which will gain a mass audience. According to BARB (2015), on average these two channels gain 31,685 viewers per day and have 19.98% of the total share of television viewers. BBC’s Top Gear will run a feature on electric cars with a specific focus on Eden in one of its episodes in 2016. The show attracts a substantial audience worldwide, which is beneficial to promote Eden as well as increase brand awareness. In terms of radio, we will be focused on the ‘drive time’ part of the day between the hours of 17:00 - 22:00 with a large focus on London based DAB station talkSPORT. Print Media Articles will be displayed in magazines such as ‘AUTOCAR’ and ‘What Car?’ where motoring journalists will test drive and review our electric car and can provide consumers with an added and impartial insight to our car. Eden’s adverts with features on the car's specification will be included in Sunday Newspapers such as The Telegraph and The Daily Mail. In the UK over 10 million people aged 35 - 54 read these newspapers on a weekly basis (Newsworks, 2015). Sponsorship Each year BQM is the official sponsor of the PGA Golf Championship in Wentworth, Surrey. On the outskirts of London, the pillar event in May is a fantastic opportunity to promote our brand and specifically Eden. The Golfing elite compete for one of the European Tour's biggest prize purses and attract an enormous amount of fans. Sky Sports will be broadcasting the four day event live, making it accessible to our target audience. Our logo features on player interview and press conference billboards, along with caddy vests, flags and hospitality tents. Competitions shall be held throughout the tournament for fans such as the ‘longest drive’ challenge and winners can receive prestigious prizes. Eden will be the official transportation car of the tournament (see Appendix 7 for image of sponsorship). Internet advertising Our online marketing campaign will exploit tools such as Google Ads and AdChoices to cater to our target audiences search history. Adverts will appear on Google and people's social media pages, meaning information and links to the BQM website and Eden page will be more susceptible.
  • 14. 15BSP022 14 Price A standard model of Eden starts at £29,999 inc. VAT including the UK Government discount scheme (GOV.UK, 2015). Eden drives 200 miles on a full battery; however for £2500 extra customers can purchase the E-Range Extender which guides drivers to a further 100 miles. In addition, our funding partnership with Chargemaster PLC, enables Eden customers to access a large number of public charge stations with the the ChargeCard (usable with Apple Pay). This is free to all Eden customers and can be topped up online or via the EdenGo. A public charge cable can be purchased for £125.
  • 15. 15BSP022 15 References ANONYMOUS. 2015, National Readership Survey Market Overview: Readership. [online]. Newsworks, London. [Viewed 15/11/2015]. Available from: http://www.newsworks.org.uk/Market-Overview ANONYMOUS. 2015, Plug-in Car Grant. [online]. GOV.UK, London. [Viewed 04/11/2015]. Available from: https://www.gov.uk/government/publications/plug-in-car-grant ANONYMOUS. 2015, Weekly Viewing Summary. [online]. Broadcasters Audience Research Board. [Viewed 14/11/2015]. Available from: http://www.barb.co.uk/whats-new/weekly-viewing-summary?_s=4 Ansoff, I. (1957) ‘Strategies for Diversification’, Harvard Business Review, Sept.-Oct., 113-24 Doughty, S. (2013) Are you a precariat, new affluent worker or elite? Study reveals there are now SEVEN social classes in the new jargon-filled British class system. [online]. The Daily Mail, London. [Viewed 23/10/2015]. Available from: http://www.dailymail.co.uk/news/article- 2303333/Great-British-Class-Survey-reveals-UK-7-social-classes-Are-precariat-new-affluent- worker-elite.html Fleischmann, C. 2015, UK Digital, Social and Mobile Statistics for 2015 #smlondon. [online]. Social Media London, London. [Viewed 14/11/2015]. Available from: http://socialmedialondon.co.uk/digital-social-mobile-statistics-2015/ Foster, C, 2014. Electric cars the benefits and the barriers. [online]. Virgin. [viewed 20/11/2015]. Avaliable from: http://www.virgin.com/disruptors/electric-cars-the-benefits-and- the-barriers GOV.UK, 2015. Plug in car and van grants. [online]. Government Services. [viewed 24/11/2015]. Avaliable from: https://www.gov.uk/plug-in-car-van-grants/overview Kallstrom, H. 2015, Raw materials – the biggest cost driver in the auto industry. [online]. Market Realist, New York. [Viewed on 31/10/2015]. Available from: http://marketrealist.com/analysis/stock-analysis/consumer/autos-consumer- retail/charts/?featured_post=159585&featured_chart=203249 Lane, B. 2015, Electric car market statistics. [online]. Next Green Car, Bristol. [Viewed 10/11/2015]. Available from: http://www.nextgreencar.com/electric-cars/statistics/ Murray, M, 2015. Falling energy prices? This is the best way to take advantage… [online]. The Telegraph, London. [viewed 24/11/2015]. Available from: http://www.telegraph.co.uk/finance/personalfinance/energy-bills/10970226/Bills-soar-by-up- to-193-how-to-beat-the-rise.html
  • 16. 15BSP022 16 Nichols, W. (2014) UK electric car sales surge in 2014. [online]. The Guardian, London. [Viewed 19/11/15]. Available from: http://www.theguardian.com/environment/2014/oct/07/uk- electric-car-sales-surge-in-2014 Tonkin, R, (2015). Nowcasting household income in the UK: Financial year ending 2015. [online]. Office for National Statistics. [viewed 24/11/15]. Available from: http://www.ons.gov.uk/ons/dcp171778_421593.pdf
  • 17. 15BSP022 17 Appendices Appendix 1- Full Target audience BQM Eden’s target audience: - Families with children. - Ages 35 - 55 Male and Female - Mainly based in locations such as London and Birmingham and surrounding towns. - Those who are highly educated, middle class with disposable income. - Will stay up to date with current news and events and be active on social media platforms. - Need a car for everyday use such as dropping children to school, shopping etc. - Enjoy doing things together as a family such as: day trips, holidays, sports etc. - Be environmentally aware and may invest in an electric car to save money in the long run. In addition, would be aware of the impact that their individual actions have and may want to be a role model for children. Appendix 1 (Doughty, 2013).
  • 18. 15BSP022 18 Appendix 2- Ansoff’s Matrix Table Markets Existing New Existing Market Penetration or Expansion Market Development Products New/Related Product Development Enter New Markets
  • 19. 15BSP022 19 Appendix 3 - Analysis of Additional three P’s Physical Environment In our well known car venues in and around London various dealerships in Suburban and London central areas, Eden will receive a special corner to highlight the product and will be surrounded by natural items like little plants and warm, friendly yet classic colours. People In order to provide our customers with the best service experience we will have pre-launch product trainings with all of our salesmen along with test drive opportunities in order to provide our salesmen with first-hand experience and a founded knowledge of our new product. This is key to our product as we are well known for our service and high quality of our vehicles. We believe that salesmen can only serve our customers’ right if they know exactly what they are selling. The customer service process will be supported by several dates where BQM technology representatives will be present at events, dealerships and other venues to talk about the Eden and invite people to test drive the car. All of this will be under our hashtag #WelcomeToEden. Process Delivery of cars can be arranged for new customers to get an exclusive offer to pick up their car in our factory and experience the BQM world and wonder through our heritage and history. Appendix 4 1. Euro NCAP is the European New Car Assessment Programme which assesses vehicle safety. The rating system is highly regarded and supported by the European Commission.
  • 20. 15BSP022 20 Appendix 5 - Full Cost Breakdown Promotion Type Cost Timing Billboards £2.5 million ● 6 week period - before, during & after Television £5 million ● 5 adverts a day, 7 days a week ● 6 week period - before, during & after Radio £1.5 million ● 10 adverts a day, 5 days a week ● 6 week period - before, during & after Print Media £30,000 ● 6 week period - before, during & after Sponsorship of Golf £15 million ● 4 day event Internet Advertising & Social Media £1.5 million ● Ongoing after release Chargemaster Funding £5000 per unit-total spent depend on sales ● First 6 months then reviewed
  • 21. 15BSP022 21 Appendix 6 6.1 - Promotional Campaign Images
  • 23. 15BSP022 23 6.2 - Billboard Example Appendix 7 - Image of Sponsorship An Byeong-hun - The winner of the 2015 BQM PGA Championship at Wentworth Club, Surrey.
  • 24. 15BSP022 25 Name: Manuel Muessener, B516923 Role in Team Joint Team Leader Contributions to team report: I took an active role as one of the team leaders and responsibility for scheduling meetings, leading team discussions and further assign tasks to each group member. In terms of the written report I helped to establish a consistent writing style. In terms of the written report, I contributed by creating ideas for the car logo, writing parts of Part A and the Marketing Mix. Moreover, I conducted research at most stages of the report, especially on the electric car markets and took initiative to find marketing ideas to promote our product. Things you found valuable about working in a team: Every team member has its strength and weaknesses. To identify how every member can contribute to the assignment in the best way, was a valuable experience and enriched our overall outcome of the marketing plan. Further, distributing the workload in equal parts and learns how to make every team member feel heard and valuable to the team was a good experience. Things you found challenging about working in a team: Sometimes it was difficult to implement the ideas and thoughts of each team member. Scheduling meetings that suit everyone was challenging from time to time as well. The most important thing you have learnt about team working: Communication was probably the most important thing. In every aspect communication was crucial no matter if it was in the context of scheduling meetings, the right tone in group discussions, lead conversations to final decisions or make every team member have the same right to be heard.