Why are we here?

                                   smart electric drive campaign
Reason:
Launch of the new smart electric
drive in Q1 2013 across the U.S.

Overall Objectives:
1. Increase brand awareness
2. Generate sales of 5,000 units

Timing:
One year campaign
Industry

Car Industry:                                    Electric Vehicles:
                                 TESLA MODEL S
• Highly competitive                             • Energy efficient driving trend
• Gasoline prices rising                         • Battery life improving
• Improvements in vehicle fuel                   • High prices remain
  efficiency                                       compared to ICE cars
• Hybrid = Gas + Battery                         • Safety issues will get closer
                                                   scrutiny
• Appetite for smaller cars
                                                 • Establishment of a charging
                                                   station network
Competition



                                                                                                                         Tesla Model S
                                                                                                             Ford Focu     $59,350
                                                                                                             EV$40,000
                                                                                                 Chevrolet
                                                                                                   Volt
                                                                                    Coda Sedan
                                                                                                 $39,900
                                                                      Nissan Leaf    $38,000

                                                          Fiat 500e    $36,000

                                           Honda Fit EV   $36,000

                               Chevrolet   $389/month
                                 Spark
                  Mitsubishi
                               $35,000
    smart          i-MiEV
electric drive     $31,000
  $25,000
Strengths                         Weaknesses
             Unique design & features
                   Customization
                                                    Younger audience
                        Size
                                                   Dealership network
                       Price




Internal
                                                  Negative perception
                Only convertible EV
                                                  Limited interior space
                   Ease of driving
                                                      No back seat
                    Crash tests
                                                      Not powerful
                   Zero emission
                                                  Battery life /charging
           Fuel efficient – Cost effective
              Low insurance & repair




           Target market extension to the        Awareness of charging
                       cities                       infrastructure
             Attract younger audience        Uncertainty of charging stations
                                                       expansion
External




                Limited competition
            Trend towards eco-friendly       Competitor EV & hybrid dealer
                                                       network
                Increasing gas prices
                                                    Electric ≠ Hybrid
           National increase in charging
                      stations                 Electric cars still expensive
            Limited space in parking lots         Fuel efficient ICE cars


                 Opportunities                          Threats
Brand Pyramid
                                Unique
Brand Core Values
                               Enjoyable
- User Friendly              Eco-Innovation
- Eco-Friendly
- Convenience               Express yourself
- Safe                         No worries
- Agile                       Love to drive
- Innovative               Disable drivers guilt
- Convenient                 Smile Inducing

                              Convenient
Brand Personality             Easy parking
- Smiley                       Safe drive
- Fun               Roam without hurting environment
- Unique                 Save on running costs
- Responsible
- Easy Going
- Stylish            Eco-friendly / 100% electric car
- Intelligent               Tridion safety cell
                              Compact size
                     High MPG / longevity on charge
Trends

                               Social Media                       Online
   Survey                      • Facebook
                                                                  • Blogs
   • Questionnaire             • Twitter
                                                                  • Articles
   • Dealerships               • Instagram
                                                                  • eMarketer
                                                                  • User Comments




            People care for:      …but look for:
                     Price               ways to entertain themselves
                     Safety              incorporating technology in daily lives
                     Size                having a positive impact on the environment
Where are they?

1. Los Angeles
2. San Diego
3. San Francisco
4. Portland
5. Seattle
6. Austin
7. Orlando
8. Miami
9. Phoenix
10.New York City
Who are they?



                          Free Lifestyle    Genius
            Interesting
                  Stand out
    Trendsetting Ambitious
        Unique Thinkers Tech Savvy
      Innovative Environmentally conscious
                Think forward    Out of Box
    Visionaries       Un-ignorable No respect for status quo
The Insights


• Easiness of slipping into the masses
   • Eventually become one among many
     • People are bored of that
        • Stand out, express yourself, change the standards
          • More than just the need for transportation
            • Need for expression, differentiation
               •Do it, but do it your way!
Wrong we are Righting




     Geek is the new cool!
Idea

plug into your smart
                                      green is cool
                     smart is green
    “Plug in the fun… Geek it out”
     cool is smart         geek is fun   fun is smart
               smart is geek
                                      plug in your smart
Why should they believe this?
The Execution


 1 Year Campaign




                                                                    Post
          Teaser              Contest       Launch Event
                                                                    Launch


                                                                             Marathon




2 Weeks                   4 Weeks                               9 Months
                                        Launch Event: One day    Marathon: One day
Teaser                                              2 Weeks




             Teaser               # WHO’S THE NEW GEEK IN TOWN

            Objectives                      Strategy                      Media
• Create a buzz in 10 biggest
  green cities
 • Los Angeles
 • San Diego                                                  • Bloggers
                                • Online Banners and Social
 • San Francisco
 • Portland
                                  Media noise                 • Facebook Pages and Ads
 • Seattle                                                    • Twitter
 • Austin                       • Hire Influential Bloggers   • Online Banner
 • Orlando
 • Miami
 • Phoenix
 • New York City
Plug & Play Contest                                           4 Weeks




           Register
                                                   Plug




       Receive 1st Clue           Get to
                                  check
                                                                 Get the
                                                                  clue
                                  point



   Get to 1st check point 1st

                                                           Search +
                                       Solve the
                                                            Involve
                                        riddle
                                                          Community
You are the city representative
Contest                                                                      4 Weeks




          Contest                                      # PLUG & PLAY

         Objectives                           Strategy                                Media

                                  • Host competition on FB
• Drive Participation             • Register for participation            •   Facebook page and ads
• Engagement
                                  • Designate the city representative     •   Twitter
                                  • Plug & Play to get clues at           •   Magazines
• Create smartED communities in     checkpoints
  each state                      • Receive set of riddles to solve       •   SEM
• Create Buzz Online                • search + online engagement          •   YouTube
• Education about smartED           • Riddles about Fun, Tech and Green   •   Email
  (fun, tech-y, green)            • Get access to the next checkpoint
                                  • Send Emails for updates
Launch Event                                                 One Day




     Launch Event                        THE NEW GEEK IN TOWN

        Objectives                        Strategy                       Media

• Create a buzz around the      • Host a PR Event
  smartED
                                • Invite Media
• Announce                        (print & online)
                                                            • PR event
  • Winner of P & P
                                • Announce launch of
  • Winning City Marathon         smartED
  • Big prize of the player :
    a smart ED                  • Announce Results of P&P
Marathon                                                                       One Day




        Marathon                                    # GEEK IT OUT

         Objectives                         Strategy                            Media
• Keep the hype during the
  campaign                        • Announce marathon as a
                                    prize at the beginning of the
• Give motivation/incentive for     P&P
                                                                    •   Facebook Page
  the cities to engage in the
  competition                                                       •   Facebook Ads
                                  • Motivate through social
                                    media                           •   Twitter
• Convey a green and fun image                                      •   Bloggers
                                  • Launch a Marathon event in
• Remind the competition after      the winning city
  couple of months of launch
9 Months
         Post Launch


       Post Launch                    THE NEW GEEK IN TOWN

          Objectives                   Strategy                        Media
• Keep the hype on smartED
                             • Continue communicating on
• Leverage on image:           smartED                     •   Facebook pages and Ads
  • Fun                                                    •   Twitter
  • Tech-y
                             • Leverage on the database    •   Online Banners
  • Green
                               acquired and send news      •   SEM
• Answer concerns                                          •   YouTube
  • Safety                   • Send invitations to test    •   Email
  • Price                      drives
  • Space
Breakdown of Budget


                   Partnership
                       3%
             Video Prod Controls
                             2%
         Creative 5%
                                                 Media Spend
           10%
                                                 Infrastructure of P&P
                                                 Marathon
      Marathon                     Media Spend   Creative
        10%                           50%        Video Prod
                                                 Partnership
        Infrastructure of P&P                    Monitoring Controls
                 20%
Breakdown of Media Spending


                        PR Event
                          7% Bloggers
                  Email
                   6%            5%
                                         FB Ads     Bloggers
                                          20%       FB Ads
        SEM
        12%                                         Twitter
                                                    Online Banners
                                                    Print
       Youtube
         5%                                         Youtube
                                          Twitter   SEM
          Print                            15%      Email
          10%                                       PR Event

                        Online Banners
                             20%
Monitoring Controls of Media

                                                    • Circulation
         • Online Buzz
                                                    • Reader per copy
         • Google Analytics                 Print   • Rate Base
Bloggers • FeedBurner


           • # Registered Participants
                                                  • # Users
           • # clicks                     Youtube • AdWords conversion tracking
           • Landing Page hits
           • Conversion rate
FB Ads     • # impressions                          • Google Ad Planner
           • CTR
                                                    • learn with Google
                                            SEM     • AdRelevance
           • # Followers
           • # ‘s
 Twitter   • Leads                                  • Open rate
                                                    • CTR
                                           Email    • conversions
           •   Leads
           •   CTR                                 • # earned media
           •   Conversions
 Online    •   Display ad mouseover                • buzz and WOM
Banners                                   PR Event • # of visits to the websites
           •   Display ad interactions
thank you


ride local. think global
smart electric drive
appendix
• creative brief
• research
   o marketing trends
   o consumer trends
   o online - questionnaires
   o dealership
   o product
   o competition
   o social media
• target audience - brainstorming
• media breakdown
creative brief
Creative Brief
BUSINESS BACKGROUND
What are we trying to do?
Smart USA is launching the new 2013 smart fortwo electric drive model, a fully 100% electric vehicle, in the US market in Q1 2013. The smart
car fortwo ICE (Internal Combustion Engine) model has been in the US market since 2008. The 2013 smart electric drive shares the same body-
style as the ICE model, however it uses an innovative electric power-train technology. The smart electric drive will be highly customizable with
different choices for exterior colors and interior upholstery. We are developing an integrated marketing campaign to launch the 2013 smart
electric drive.
What’s the opportunity?
The Electric Vehicle (EV) segment is still at an early stage but seeing significant traction. US vehicle shoppers start to consider purchasing EVs
to offset the uncertainty around gasoline price inflation. Combining this with the rise of “green” consumers who are looking at more ways to
be environmentally conscious, there is potential for us to position the smart electric drive as the most fun and affordable EV.
What are the key challenges?
Lack of education among consumers as to how to differentiate EVs, hybrids, plug-in hybrids. Manufacturers are tagging cars as “green” all the
time.
High initial costs (charging stations at home) and low resale value of EV cars.
Electric charging infrastructure is relatively week across the US, especially in cities.
Alter the current perception of the smart fortwo model: not safe, “cute” girl’s car, not enough space.
Small budget compared to our competitors. Let them educate the customers and we will sell our brand.
What does success look like?
Leads: generate leads and genuine purchase interest from urban prospects.
Sales: capture market share in the top cities where EVs are being sold.
Increase brand awareness and appeal among younger audience.
Increase reach and interaction with smart.
Creative Brief

AUDIENCE INSIGHTS
Who are we trying to connect with?
We want to engage young people living in urban areas who do not just look for a vehicle to take them from A to B. They are innovative, unique
thinkers and have the need to stand out from the mass. They have a geeky side to them, are tech savvy and opportunists; always willing to go
against the “known” to discover and craft the “unknown”. They are well educated and conscious about the environment and their impact on it.
They want more than just satisfying their transportation need; they want to have a voice on the streets.. “They want to do it, but they want to
do it their way.”
• Core target is males and females 25-40 years old – in the top 10 cities in the US.
What do they think / feel / say / do now?
They know about the EV category and are excited about the progress of electric cars on the streets. They are not convinced as of yet to pay
more for an EV. They know the Smart Car but they do not consider it trustworthy. Fuel efficiency, driving convenience in the city and
environmental friendliness are factors positively perceived. In essence people are in the “Maybe, but” stage, the need the stimulus to move
with reassurance to the “Yes!” stage.
The Insight:
People have the need to differentiate themselves. We live in a highly demanding world affected by the easiness of slipping into the masses.
The fun element is forgotten and eventually we all become one among many. People are bored of that, they want to stand out, express their
feelings and change the standards – bringing out their “geekiness”. They want to buy the EV smart car not because they need a car, it is beyond
that, they want to buy it in order to make their lives easier, differentiate, express themselves and do the right thing.
What wrong are we righting?
Geeks are the kids we all once used to tease in our school years. Those geeks though are nowadays the CEOs, the innovators and the stock
market’s biggest players. The standards of coolness are shifting; it’s cool to act like a geek. Geek is becoming the new cool! The EV Smart Car
will allow people’s inner “nerd” to stand out and make a statement with style. Proud to be Geek!
Creative Brief


THE COMMUNICATION IDEA
Plug in the fun.. Geek it out
Give yourself a break once in a while. Actually no, ife is too tough; give yourself a break as often as you can. Escape from reality and
misery through driving, engage fun in it and shift this necessary activity into an enjoyable experience you cannot get enough of. You
are an early adopter of the electric vehicle and it satisfies you to be innovative and take a stance using a fun smart car.

Why should they believe this?
The smart EV is the most affordable electric car in the market. It is fun to drive, eco-friendly and has technology perks that improve
the overall driving experience.

MANDATORIES
100% Electric Car

What’s the brand personality and tone?
Fun, unique, responsible, innovative, eco-friendly.
research –
marketing trends
Current Trend of Electric Car


Automobile design has moved away from the old “Lead Sleds”, big, heavy, metal monstrosities that long
dominated the American automobile scene. Technology has been used to create lighter and more
aerodynamic designs. This trend has been a boon to the electric vehicle, as the easiest way to increase its
range is by decreasing its weight and wind resistance.
Even so, range anxiety is still possibly the biggest barrier to the introduction of electric drive automobiles.
This is best addressed by the Extended Range Electric Vehicle, which is essentially an electric vehicle with a
small internal combustion engine driving a recharging system, which recharges the battery (the main power
source) on the fly.
This type of vehicle provides most of the advantage of an all-electric vehicle while allowing the range of
traditional internal combustion engine automobiles. It uses the gas stations on every corner to recharge
electric vehicles. Many new carmakers and several established car manufacturers are pursuing this
approach. In the USA, Ford, GMC and Chrysler all have their fingers in this technology.
Current Trend of Electric Car

Though Toyota must be given credit for getting to the right market at the right time, the Prius is technologically a
stodgy old foot dragger with its dual drive hybrid system. This design features an internal combustion engine car
with an electric motor inserted into the drive train. This means that the vehicle carries the weight of the electric
motor and its massive battery plus a full internal combustion drive train!

Another issue with the dual drive hybrid is system complexity. The fully electric car and its extended range cousin
have significantly fewer parts than the traditional automobile, making them easier and less expensive to maintain.
However, the dual drive hybrid has all the maintenance requirements of an internal combustion engine car, plus
the maintenance of an electric car. In this case, more is not better.
At present, price is another barrier to acceptance of electric cars. Simplicity of design can significantly reduce the
manufacturing costs, and this is also an area of great opportunity. While there are enormous numbers of patents
in the area of electric vehicle design, few of them address innovations that drive down production costs. Just as
Henry Ford’s affordable automobile manufacturing revolutionized the automobile industry, developments that
enable the manufacture of an affordable electric car may also impact the industry in profound and transformative
ways.
Future Trend of Car Industry

Micro Environment:

• Government Influence
Countries like U.S. and China have put it on their national agenda to develop a leading role in electric car technology
Government try to speed market migration toward electric cars through financial incentive such as
subsidies, taxes, investments.

• Gasoline prices rising
More specific threats loom for older used cars in particular. You've probably noticed gasoline prices rising, right?
Well, that trend is likely to continue and even accelerate in future years as the number of cars on the road globally
increases, and gasoline and diesel fuel continue to provide the go-juice for roughly 87% of these vehicles.
Higher prices and limited supplies of oil, however, are going to catalyze an astounding increase in automotive fuel
efficiency. Right now, U.S. cars require more than a gallon of gas, on average, to travel just 30 miles. But BP projects
that by 2030, the average U.S. automobile will travel the same distance on just a half-gallon. Cars sold in
Europe, meanwhile, have already hit that mark, and Chinese autos aren't far behind.

• Competitive Automobile world between companies
Future Trend of Car Industry


Car Industry:

• Rapid improvements in vehicle fuel efficiency using petrol and diesel

Even if we only saw 30% energy saving in 30% of vehicle miles driven in developed nations over the next decade, we
would save at least 9% in motoring energy use (at today’s rate of miles driven a year). That would be the same as cutting
today’s global emissions by more than 1%.

Greening of the world car fleet is happening rapidly. JD Power Consultancy estimates that a third of emission cuts by
2020 will come from improving petrol and diesel engines, and 14% from miles driven in electric vehicles.
If all vehicles in America were hybrids, and half were plug-in hybrids (larger batteries), US imports of oil would fall by 8
million barrels a day or by 80% of daily consumption.
Future Trend of Car Industry


• Less oil consumption and More Batteries Consumption

Batteries are going to be one of the biggest green tech businesses – powering not only phones and other small
devices, but also cars, trucks, buses and just about any large piece of equipment that does not have a permanent
electricity connection. Expect sales of hundreds of billions of dollars. President Obama’s economic stimulus
provided $2.4 billion to fund battery innovation and electric car drive projects.

Car batteries will have another purpose: linked together when charging at people’s homes, to create Virtual Storage
by power companies, to assist their power management at off peak times. This will make it easier for them to plug
in huge numbers of wind and solar generators. Smart grids will allow power to flow in both directions, so that each
battery can become a power source to other people in the neighbourhood for short periods of time. If 200,000
electric cars were plugged into the German national grid, it could make 8 megawatts of power available almost
instantly, giving more flexibility than the nation currently needs.
Future Trend of Car Industry

Electric cars:
• EV-More energy efficient driving trend
Electric cars are only part of the answer to more energy efficient driving. 70% of all EU freight is moved by road, and trucks
use 12% of all oil consumed in the US, but the energy efficiency of most trucks is as low as it was 40 years ago. We will see a
giant leap in efficiency of new trucks – at least 40% in the next decade.

• Lower emissions produced by Electric cars
Electric cars can produce much lower emissions than burning fuel in mobile engines, but it all depends on how the electricity
is generated. Burning petrol or diesel in a small, mobile engine can be inefficient compared to the most efficient coal-fired
power generators. When petrol is used to power a vehicle, only 15-20% of the energy is usually captured to drive the car
forward, compared to 40% in making electricity in an efficient coal power station.
It is true that a small amount of power is lost between power station and battery, and 20% of electricity put into the car is
lost in heat (batteries and other components). But even when we include these things, we can see that “coal-powered”
electric cars are likely to be better users of fossil fuels than diesel or petrol vehicles.
Where wind, solar, waves, tide or nuclear power is used to charge batteries, electric cars have zero emissions. Either way, air
quality improves dramatically in cities as the use of electric vehicles increases. Owners can also save a huge amount of
vehicle tax on petrol or diesel since taxation is far lower on electricity. It typically costs only 1-2 cents a mile in electricity.
Future Trend of Car Industry

• Prices will remain high for electric vehicles
Pike Research notes that even though the Chevrolet Volt will have a pricetag that is $1,000 less in 2012, its stripped-down
feature set will turn off many potential electric vehicle buyers. In fact, prices for the Nissan Leaf will be higher for 2012
than they were for 2011. The research firm believes that $23,750 is the optimal price range to inspire more mainstream
adoption, but most of the models that consumers will consider in 2012 will all be priced at more than $30,000. That
includes the Toyota Prius, the Ford Focus EV, and the Honda Fit BEV. Even though an anticipated glut of electric vehicle
batteries will affect the market in 2012, most of the batteries for the 2012 models were ordered before increased
production helped bring down prices. So, battery availability won't help with pricing until 2013 or 2014 model years, Pike
Research predicts.

• Safety issues will get closer scrutiny
TheNHTSA's declaration in November that it would look more closely into battery safety related to post-crash fires in the
Chevrolet Volt had electric vehicle critics clamoring, "I told you so." Let's be clear, the NHTSA is just doing its job AND it
has publicly stated: "NHTSA is not aware of any roadway crashes that have resulted in battery-related fires in Chevy Volts
or other vehicles powered by lithium-ion batteries. However, the agency is concerned that damage to the Volt's batteries
as part of three tests that are explicitly designed to replicate real-world crash scenarios have resulted in fire."
Future Trend of Car Industry


• Establishment of a charging station network

Gas stations are ideally placed to support electric vehicle “refueling” and are already on the grid. This simplifies
the establishment of a charging station network. Gas stations require only upgrades to their power lines, and the
installation of some “electricity pumps”. Patenting and development of the electric car charging station has been
somewhat neglected until recently. Now the introduction of plug-in electric vehicles is driving greater activity in
this area, such as GE’s recent activity,"Systems and methods for charging a battery"). Still, there remains
significant white space in this area.
Future Trend of Car Industry

Technology:
• More businesses will install chargers
A number of companies, including one of the nation's biggest parking-lot operators, announced plans to
invest in technologies. This is a trend that is likely to continue over the next 12 months, provided vehicle sales
don't lag too much. The more likely it is for a person to juice up their car running errands or if they are
traveling to a city for the day, the better the chances for adoption. More businesses will install chargers. A
number of high-profile companies (Adobe, GM, SAP, Google) have started installing chargers in office parking
lots and this trend will continue in 2012. Consider it to be one of the latest employee perk fads.
• Wireless charging technologies will get wider testing
I literally just heard from Evatran, the maker of the Plugless Power wireless charging technology. It has just
starting offering incentives to drivers of Nissan Leaf and Chevrolet Volt that want to test out its technology.
The first 500 drivers that get involved will be eligible for up to six months of free electricity for charging their
vehicle. Sounds like Sears will help get the installations up and running.
• Models will emerge for vehicle-to-grid electricity distribution
In scenarios where a house loses power, electric vehicles could play a role as back-up generators. Pike
Research predicts that applications will continue to emerge that hook electric vehicles and their charging
infrastructures more tightly into the home.
Future Trend of Car Industry

• Development of fast charge technology

Some observers worry about the recharging time required for the battery. Taking hours to recharge would restrict the
usefulness of the vehicle for long trips. However, fast charge technology is already a high priority for electric car
development. Several battery makers such as Altairnano have developed electric vehicle batteries that recharge in ten
minutes with specialized equipment. Altairnano had a flurry of battery design filings in recent years, including, most
notably, “Lithium Ion Batteries” which states in its abstract that the invention “is directed to lithium ion batteries that
provide for rapid recharge, longer battery life and inherently safe operation.” Toshiba also has recent IP in this area.

The introduction of electric vehicles into our present dealership network would require little change. Some added effort
is needed to train technicians to service the electric drive systems. There will also be a need for diagnostic tools for the
new class of vehicle.
These areas of development remain relatively wide open, awaiting the indication of a viable electric car design that
would be widely used. The corollary equipment for recharging, test and repair will follow designs and technology that
show the signs of popular adoption by the industry.
Future Trend of Car Industry

Consumer:

• Car ownership will rise three times as fast -- up 60% over the next 20 years
• Buyers will have far more choices in 2012

Pike Research predicts that unit sales of plug-in electric vehicles will reach 257,000 units globally next year. The
pioneering technologies found in the Chevrolet Volt and Nissan Leaf will be joined by models
from BMW, Ford, Honda, Toyota and Volvo, as well as the newcomers Coda and Fisker. North America will account for
about 66,000 of those unit sales, slightly more than for all of Europe but about half of what is predicted for the
Asia/Pacific region.
research –
consumer trends
Electric vehicle realities vs consumer
                 expectations

                                                                                       Figure 1: Global consumer segmentation for Evs
                                                                                       (November 2010 - May 2011)




Potential first movers: generally well-educated, with a higher-than-average number holding post-secondary degrees. They claim to
know much more about EVs than the might be willing consumers. They tend to live in urban areas.They are marginally more likely to be
male than female and represent the middle or upper class. They tend to see themselves as environmentally conscious, tech
savvy, trendsetting, and politically active. They claim to be more knowledgeable of EVs and attribute a number of positive characteristics
to EVs: “coolness,” convenience, safety, stylishness, and good value. On this latter point, potential first movers are also sensitive to
government incentives, fuel efficiency, and the cost to charge a battery. The appeal of electric vehicles to those who indicated an interest
is the perception that these vehicles are cleaner, more environmentally friendly, and more efficient than traditional internal combustion-
driven vehicles. Despite their apparent eagerness to buy an electric vehicle, however, the final decision to purchase or not will be
influenced by a number of factors, including how well current and future vehicles meet their needs.
Electric vehicle realities vs consumer
              expectations

Figure 2: Consumers want mid-size sedan EVs
Survey question: If you were considering buying or leasing an electric vehicle, which type of vehicle would you be most
interested in?




For US: 1st Perference is Mid-size sedan; 2nd Preference is SUV/Crossover; 3rd Prefernce is Small sedan
Electric vehicle realities vs consumer
                               expectations

 Figure 3: Range expectations exceed typical driving distance
 Survey question: What is the minimum range that an electric vehicle would need before you would consider buying or leasing
 it?On average, approximately how many miles/kilometers do you drive each day during the week (Monday through Friday)?




Despite the relatively high willingness of consumers to consider an EV, many seem not willing to compromise in key criteria, such as range. While on average 80
percent of drivers surveyed typically drive less than 80 kilometers per day, consumers expect EVs to travel considerably farther. The U.S. and France seemed to have
the highest sensitivity toward range, with only 63 percent and 67 percent, respectively, satisfied with a range of 480 kilometers.
The expectation in U.S.77% satisfied with a range of 640 km63% satisfied with a range of 480 km44% satisfied with a range of 320 km20% satisfied with a range of 160 km3% satisfied with a range of 80 km


 Reality:
 Current technology permits most electric vehicles to cover an average of only 160 kilometers between charges. The main limiting factor for range is
 energy density. Looking at automobiles already introduced and announced product introductions around the world through 2013, for most
 manufacturers, the driving range of their pure EVs still falls short of consumer expectations (see Figure 5). In fact, there is little or no increase in
 range beyond 160 kilometers over this time horizon based on announced vehicle introductions from most manufacturers.
Electric vehicle realities vs consumer
            expectations

Figure 4: Majority of consumers expect electric vehicles to recharge in two hours or less
Survey question: Considering your expected vehicle use, what is the longest time to fully recharge the battery that you would
consider acceptable when buying or leasing an electric vehicle?
Electric vehicle realities vs consumer
                    expectations
                                                                                                                                                      Reality:
                                                                                                                                                      Electric vehicle chargers are classified by the
  The expectation:                                                                                                                                    level of power they can provide to the battery
  Most of the consumers surveyed expected an electric vehicle to                                                                                      pack. For example, level 1 being the lowest
  recharge its battery in two hours or less. In all countries, only a small                                                                           level of power and level 3 chargers supplying
                                                                                                                                                      the highest level. With level 1 and 2
  majority viewed eight hours—the actual and longest time it can take to                                                                              chargers, anywhere from three to 20 hours are
  recharge the typical electric vehicle battery in vehicles today using a                                                                             required which means that the traditional
  level 2 charger— as acceptable.                                                                                                                     model of periodic roadside filling stations will
                                                                                                                                                      be challenging thereby leaving the charging
                                                                                                                                                      limited to the home and possibly the
                                                                                                                                                      workplace.

                                                                                                                                                   Solution 1: Building and installing a recharging
                                                                                                                                                   infrastructure: Level 2 chargers are preferred as they
                                                                                                                                                   optimize charge time and cost for use at home or at an
                                                                                                                                                   external facility. Consumers would not only have to plug in
                                                                                                                                                   their vehicles overnight, but also be able to recharge in public
                                                                                                                                                   spaces such as parking lots at grocery stores or office
                                                                                                                                                   buildings. Each of these infrastructure improvements brings its
                                                                                                                                                   own issues. Expense—and who pays—is certainly primary
                                                                                                                                                   among them. The technology would likely have to be
                                                                                                                                                   standardized so that an electric vehicle can recharge at any
                                                                                                                                                   dock, not just those specific to its make.



Solution 2: Convenient battery swapping stations: where drivers could exchange a dead (or dying) battery for a freshly charged battery in less than two minutes without getting out of the car. This could
reduce the cost of the battery and eliminate the concern over charge times. But it would add to the cost of infrastructure to build the stations and would likely cause significant challenges for electric vehicle
automotive manufacturers. Wireless inductive charging is another possibility, and three models are in development: electro-magnetic induction, magnetic resonance, and microwave.
Electric vehicle realities vs consumer
          expectations

Figure 5: Consumers are not willing to pay a price premium
Survey question: How much more would you be willing to pay for an electric vehicle compared to a similar
vehicle with a gasoline engine?
Electric vehicle realities vs consumer
expectations

                                   Figure 6: Consumers expect to pay less than
                                   $30,000 for an EV
                                   Survey question: If you were considering buying or
                                   leasing an electric vehicle, in which of the
                                   following price ranges would you be shopping?
Electric vehicle realities vs consumer
expectations

                                    Figure 7: Consumers are wary of fuel
                                    prices
                                    Survey question: At what price for gasoline would you
                                    be much MORE likely to consider buying or leasing an
                                    electric vehicle (EV)?
Electric vehicle realities vs consumer
             expectations

                                                            Modest increase in fuel pump prices will
Consumers in all regions surveyed indicated that their      be tipping point toward EV adoption:
interest in EVs would be stimulated by higher               With rising fuel prices, consumers are
gas/petrol prices. If, for example, the price of a gallon   likely to become more interested in EVs.
of gas in the United States rose to US$5.00
(representing a hike of about 37 percent from the
average price in the United States), the percentage of
respondents who indicated they would be interested in
EVs rises to 78 percent.



The exception in U.S.
One of these countries of exception may be the U.S.
Notwithstanding Brazil, Turkey, and India, it appears
that the U.S. market is closest to having oil/gasoline
prices hit a level where consumers are much more
likely to consider adopting EVs. A close eye should be
kept on the U.S. market for this reason as well as their
higher tolerance to high purchase prices for EVs
Electric vehicle realities vs consumer
                 expectations

                                                                Figure 8: Fuel efficiency trumps Evs
                                                                Survey question: If vehicles with gasoline engines of
                                                                the size, performance, and other features you prefer
                                                                were able to achieve the following fuel efficiency, at
                                                                what point would it make you much LESS likely to
                                                                consider buying or leasing an electric vehicle?




Fuel efficiency of 50 mpg in large automotive markets, like
China (57 percent) and the U.S. (68 percent), results in over
half of the population surveyed becoming much less likely to
consider an EV. Consumers will be less likely to consider
purchasing an electric vehicle as the fuel efficiency of ICEs
improves. As a result automotive manufacturers will need to
carefully plan their investments to maximize sales of fuel
efficient technologies consumers are willing to purchase.
online research -
questionnaires
Online research - Questionnaire

• We conducted an online survey to collect information about the smart
  brand and how consumers feel about the existing smart fortwo.
• The following slides includes the most relevant information that we used
  to make our analysis and recommendations.
Research – Demographics

          Gender                                      Age
                                     0%   10%   20%   30%   40%   50%   60%   70%


                          Below 20



 Female            Male
                             21-30
  52%              48%

                             31-40



                             41-50



                          Above 51
Important Criteria in Car Decision

        Buying a Car?                          Buying an Electric Vehicle?

60%                                      60%
                        Important                                     Important
50%                     Most Important   50%                          Most Important
40%
                                         40%
30%
                                         30%
20%
                                         20%
10%
                                         10%
 0%
                                         0%
Awareness & Interest in smart car

   Aware of the smart car?       Would Buy a smart car?

                                     Don't
       No                            Know
      21%                            smart
                                      21%
                                                          Yes
                                No                        56%
                               23%
                     Yes
                     79%
Why Buy or Not Buy a smart car?

                                              Buy smart vs Not Buy
                                                                                                      Buy      Not Buy

 80%

 70%

 60%

 50%

 40%

 30%

 20%

 10%

 0%
       Appearance   Price   Environmentally    Customization   Fuel Economy   Safety    Fun Driving     Size
                                Friendly                                               Performance
Buy the smart electric drive?

                     Buy a Fully Electric smart car?


                                                       Yes
             Maybe
                                                       35%
              39%




                                       No
                                      26%
dealership research
Dealership Research

• We wanted to gather first-hand research about the existing smart car and
  the state of Electric Vehicles sales by visiting the following dealerships
  around New York city:
  • smart car
  • Mitsubishi i-MiEV
  • Chevrolet Volt
  • Nissan Leaf (declined to allow us to gather information)
Dealership Research (smart car)

• Who buys a Smart Car?                          • Why Do People Buy a Smart Car?
    • first time car buyers                          • Convenience
    • Students buy it for payment structure of       • Cheaper insurance
      $99/month                                      • Gas savings
    • Even people who own $100,000 Mercedes          • Fast
      cars
    • unique thinkers                                • Easy to park
    • not concerned by what other people are         • American market is really making a shift
      thinking about them or their car                 from larger to smaller cars.
    • They care about fine details                   • Icon parking garage for a monthly
                                                       parking spot which is 3-4 time less than
    • quirky in their own right                        a regular car pays. Also half off for
    • really excited about the car                     daily/hourly rates
    • super excited about the mileage that you       • They drive more expensive vehicles
      get 38 MPG
      • city is 30MPG
      • really noticeable at the pump
Dealership Research (smart car)

• Why Do People Don’t buy a Smart Car?                          • Do they care about customization?
      • Safety, their mind is made up before they come in:        • Characteristic of Smart Cars they want to
        its small, it’s not safe                                    make it stand out and make it their own.
      • Space interior – come in looking for a 4 seater –
        unrealistic expectations                                  • They can fully customize their cars
      • Wanting everything out of the car – unrealistic           • They are not always aware of
        expectations                                                customizations, but when sales people tell
      • The entry level car $14,000 is very                         them about customization, they tend to like
        basic/minimalistic (roll windows, etc..)– unrealistic       it and do their own shit
        expectations                                                 • they come in because they are drawn to the
                                                                       car but not aware of all the options they
• Is it their first car? Second car? Or 3 +?                           could do with it
   • Some people buy it for first time, mostly from               • Suggested that there will be little or no
     attractiveness of finance/payment scheme                       customization for the Electric Smart Car
   • Usually though it’s a second car (or more)                 • Average Sales per month of Smart Cars
                                                                  • 20 for the past, because of the financing
                                                                    program ($99/month) and ease of parking
                                                                    (icon)
Dealership Research (smart car)

• What’s your opinion/perception about the               • Do you think electric cars are worth
  Electric Vehicle Smart Car?                              paying extra for (environement etc)?
  • Very excited about it                                   •   Already have huge customer inquiries on it
  • Will be the least expensive of the competition          •   Huge database already
     •   87 miles on the full charge                        •   Excitement
     •   4 hours in city conditions                         •   Least expensive car of its kind
     •   full charge for 8 hours in regular
     •   220V down to 4 hours with $2500                 • Would you buy it?
  • EV could be better used in the suburbs with the         • Yes I already drive a gas smart car
    current setup in the cities – no chargers
    available at gas stations or around the city.           • Pulling up at lights and people look at it
  • EV, would be a second or 3rd vehicle                        • Education about the brand and its benefits

  • Owners of electric cars love to highlight that its
    an electric car and that it is unique and special
  • Once people start using the electric cars, the
    more people will drive it the more charging
    stations will be available.
Dealership Research (Chevrolet)

• Who buys an Electric Car?                           • Is it their first car? Second car? Or 3 +?
  • Not specific – no really clear demographics          • Second car or more
  • Wealthy commuters
                                                      • What do they care most about?
• Why Do People Buy an Electric Car?                     • Technology in the Volt is fantastic. Even
                                                           when compared to a normal gasoline car
  • Ecological view
  • Savings on gas/gas efficiency                     • Average Sales per month of Electric
  • High occupancy lane with 1 person                   Cars
  • You don’t have to sell this car, they come here      • They are currently sold out
    for it                                               • 1 a month – its quite unusual to sell it in
                                                           the city
• Why Don’t People buy an Electric Car?                  • North California (silicon valley, technology
  • Usually people that come into the dealership           savy community) – a dealership sells
    have already set up their mind that they want          around 68 Volts in 1 month (also due to the
    to buy the Volt.                                       fact that you can use the fast lane)
Dealership Research (Chevrolet)

• Who do you consider is your                    • Would you buy an Electric Car?
  competition?                                     • He would definitely buy it
  • Prius
                                                 • What do you think of the new
  • Leaf
                                                   Electric Smart Car?
• What’s your opinion/perception                   • Not heard of it.
  about the Electric Cars?
  • Technology is finally at a point where its
    drivable
  • Very convenient
Dealership Research (Mitsubishi)

• Who Do you consider is your competition?                          • Would you buy an Electric Car?
   • Leaf                                                              • Not at this present time
   • He doesn’t know who else is the competition                       • They’re like golf carts
   • Volt (we told him about the Volt)                                 • If you have a car and you live in the suburbs it could
                                                                         be a second car. So maybe as a second car yes.
• What’s your opinion/perception about the Electric                    • He has no motivation to sell the Electric Car
  Cars?
   • It’s a great concept                                           • What do you think of the new Electric Smart
                                                                      Car
   • Its too pricey at this time – because of the battery
                                                                       • I don’t know anything about it.
   • Downside of electric is the last of the charge, the distance
     you can travel

• Do you think electric cars are worth paying extra
  for (environement etc)?
   • Its too early for electric
   • There are too many gasoline cars
   • Gasoline companies are making too much money and
     they will not allow the growth of electric cars
Dealership Research (Mitsubishi)

• Who buys an Electric Car?                       • Is it their first car? Second car? Or 3
  • No one buys the Electric Car                    +?
                                                     • In suburbs it could be their 2nd or 3rd
• Why Do People Buy an Electric Car?                   car
  • They don’t because Mitsubishi doesn’t         • What do they care most about?
    advertise it.
  • There is also no incentive for sales people      • They don’t buy it
    to sell the electric cars.                       • We’ve been asking the factory to take
                                                       the Electric Cars back!!! They’ve been
• Why Don’t People buy an Electric Car?                there for a long time and no one is
                                                       interested.
  • Factory doesn’t back the sale of Mitsubishi
  • Its for suburban areas                        • Average Sales per month of Electric
  • Because they don’t have anywhere to
                                                    Cars
    charge it in Urban areas.                        • 0
  • Its too expensive
Dealership Research – Summary of Findings

• smart car                                      • Chevrolet Volt
  • very enthusiastic about current smart          • Sales people very excited about it
    car ICE model – selling well in the city
                                                   • Out of stock – 1 per month is good
  • Students, middle-aged, older                     sales in New York
    generation, all unique thinkers                • California – 69 per month at 1
  • Safety is always a challenge                     dealership
  • Parking incentive is great                     • Great technology inside the car
  • Big interest/leads in electric drive car
                                                 • Mitsubishi i-MiEV
  • Issue is that no chargers available at gas
    stations or around the city                    • No sales in New York
                                                   • Sales people not excited about it
                                                   • No advertising from Mitsubishi
                                                     makes it impossible to sell
research - product
smart ED - Advantages

   • Attractive price (vs. competition)     •Sophisticated batteries
     Not much more expensive than the non   •Dedicated Smartphone app
     ED                                     (remote, monitor functions)

   • First electric car “coupe”             •For local errangs
                                            •Efficiency
   • Quieter than the regular smart
                                            •Big enough for 2
   • The least costly credit
                                            •Cute / handy
   • Distributors: local smart dealers      •Delivers power smoothly

   • Zero emission                          •Faster than the regular smart
                                            •Quiet
   • New motor to drive rear wheels
smart ED - Inconveniences

 • High entry costs
 • Threat of Fires
 • Looking for charging stations
 • Charging stations not widely spread
 • Too simple interior designs
 • Installation costs of chargers
 • Car feels fast but it is still slow
 • Doesn’t hold well
 • Brake and acceleration paddles are oddly positioned
 • Can be unstable
SWOT - Internal

Strengths
• Unique design & features                                 Weaknesses
• Customization – No two smart cars are the same, you      • Not very popular with the younger generation
   can customize the car in any way you want               • Not very extensive dealer network i.e. not available
• Size                                                       nationally like normal passenger cars
• Half prize in the parking lots                           • Consumer’s overall negative perception about the car
• Ease of driving - fun                                    • More expensive than competition
• Similar performance with the sedans in the crash tests   • Not many locations to charge it – Lack of infrastructure
• No pollution as it is electric driven                    • Limited interior space
• Fuel efficient – Cost effective                          • No back seat
• Rated as one of the cheapest cars to insure and repair   • Not powerful
• Cheapest electric car                                    • Battery life – waste of time to fully charge it
• Spacious for two                                         • External
SWOT - External

Opportunities                                    Threats
• Reaching newer markets which are not yet       • Competitor electric & hybrid vehicles have very well
  explored                                          established dealer & supply chain networks
• Branding to be made more youth oriented        • We cannot be sure when the chargers will become
  which will lead to more sales                     highly available
• Limited competition                            • People are unaware of the difference between an
• People are becoming more and more eco             electric and a hybrid car
  friendly                                       • (Prius is considered an electric car – WTF is wrong
• People look for ways to express themselves –      with people)
  customization                                  • Price of electric cars is and will be high
• Gas price will increase                        • More and more fuel efficient cars
• Charging stations are increasing nationally
• The number of cars in increasing - limited
  space in parking lots.
research competition
Industry & Competition (Pike Research Study)

                            •   Pike Research forecasts that California, New York, Florida, and
                                Texas will lead the way in PEV sales. By 2020, Hawaii is
                                expected to have the highest penetration rate of PEVs as a
                                percentage of all light duty vehicle sales.

                            •   Among metropolitan areas, New York City, Los Angeles, and
                                San Francisco are anticipated to have the largest sales of PEVs
                                through the decade. In Canada, the provinces of
                                Ontario, Quebec, and British Columbia, which account for 75%
                                of the Canadian population, will represent 97% of Canadian
                                PEV sales by 2020. Toronto and Montreal will lead Canadian
                                PEV sales.

                            •   California car buyers will account for 25% of plug-in and pure
                                electric vehicles (EVs) sold in the US for the rest of decade, says
                                Pike Research.

                            •   That's because the state is home to four of the top 10
                                metropolitan areas supportive of EVs: Los Angeles/Long Beach;
                                San Francisco Bay Area; San Jose/Santa Clara; and Sacramento.
Competition Financials

    Nissan LEAF
• Zero-emission leadership World’s most successful EV
• Global EV retail sales: Competitors 39%, Nissan LEAF     • Nissan is committed to leadership in the field of zero-
  61% (23k units)                                            emission mobility. Toward this goal, we have engaged
•   Cumulative sales of Nissan LEAF: 30 k units (As of May   in a wide range of activities over the years. Nissan
    2012)                                                    LEAF, the world’s first mass-produced 100% electric
                                                             vehicle (EV), has already received numerous awards in
•   FY11 sales performance :
                                                             Japan and around the world. Today its technologies
•   North America:                                           and the philosophy behind it are recognized by many
•   TIV: 13.19 million units, +8.9%                          of our customers, and the car is a force propelling the
•   Sales: 1,080 k units, +11.8%                             Nissan brand value.
• Market share: 8.2%, +0.2 points
• thanks to Altima, Rogue and Versa
• Nissan LEAF sales: 11 k units
Competition Financials

Nissan Leaf history:
• 2009: Displayed at Tokyo Motor Show
• 2010: First Nissan LEAF comes off line at Oppama Plant
• 2011: Nissan LEAF; Sales start in Europe
• New quick charger unit goes on sale
• 2012: LEAF to Home system for powering residences announced
• Awards won: 2010 Good Design Gold Award (for Holistic approach to promote zero emission
• Vehicle [Nissan LEAF] and zero emission mobility)
• 2011 European Car of the Year
• 2011 World Car of the Year
• 2012 RJC Car of the Year
• Car of the Year Japan 2011–2012
• During fiscal 2011, the Nissan LEAF passed the sales milestone to make it the world’s most
   successful electric vehicle. In total, 23,000 units sold.
Competition Financials

Chevy Volt

• According to publicly available data, GM sold 326 Volts in the U.S. in
  December 2010, 7,671 in 2011, and 16,348 through September 2012. The
  surge in 2012 is a bit misleading since 35% of the year-to-date sales came in
  August and September, concurrent with those margin-destroying incentives.
Share of EV in US 2011 – Edmunds.com

• Constraints on Leaf and Volt availability in 2011
  support the theory that sluggish sales growth in
  the EV/PHEV segment stemmed from an issue with
  supply. Pre-orders made in 2010 claimed the Leafs
  produced in 2011, leaving only unclaimed pre-
  orders for consumers who decided to purchase a
  Leaf during the year. Leaf availability was further
  limited by Nissan's decision to initially offer Leafs
  in only select states — still just 30 states by the
  end of 2011. While Chevrolet did not offer a pre-
  order program for the Volt, its availability was
  limited by the roll-out of the Volt in regional
  "waves," with nationwide availability beginning
  only in early Fall 2011. Volt sales increased as the
  roll-out progressed. Volt sales also rose when
  General Motors released in October 2011 some
  2,300 Volts that dealers had been required to keep
  on display. Both companies have announced
  higher production for 2012, opening the door for
  potential growth in EV/PHEV sales if unmet
  demand does exist.
EV Car sales in U.S. (csmonitor.com)

• Nissan sold just 984 Leafs in the U.S. in        • Chevy Volt - This month's[November]
  September, for a total of 5,212 so far in 2012     total may not quite equal last month's
  vs. 9,674 in all of 2011. But Chevrolet sold       plug-in sales of 6,784. The big
  2,851 Volts in September for 16,348 so far         unknown, however, is deliveries of the
  this year, up from 7,671 in all of 2011.           Tesla Model S--which Tesla won't discuss.
• [November] Sales of the Nissan Leaf battery-     • With just a month left in the year, up to
  electric car rose to 1,539, almost matching        50,000 electric cars are likely to find
  last month's total of 1,579, and more than         buyers during 2012--almost triple the
  double its November sales of 672 a year ago.       2011 total of about 17,500.
  November marks only the second time this
  year that more than 1,000 Leafs have found       • This year's sales leader, the Chevy Volt
  buyers.                                            range-extended electric car, logged 1,519
                                                     sales.
• That still leaves the Leaf in third
  place, however, with 8,330 sales so far this     • That brings the Volt's total so far this year
  year. If the December sales keep pace, it will     to 20,828, though the November number
  at least ensure that more Leafs are sold this      is barely more than half the October total
  year than last year's 9,674.                       of 2,961--a number helped bynow-
                                                     expired sales incentives.
Nissan Leat & Chevy Volt sales (goodcarbadcar.net)


            Nissan LEAF     Nissan LEAF     Nissan LEAF               Chevrolet Volt Chevrolet Volt Chevrolet Volt
           U.S. Sales 2010 U.S. Sales 2011 U.S. Sales 2012            U.S. Sales 2010 U.S. Sales 2011 U.S. Sales 2012
January          -----            87             676         January        -----           321             603
February         -----            67             478         February       -----           281             1023
March            -----            298            579         March          -----           608             2289
April            -----            573            370         April          -----           493             1462
May              -----           1142            510         May            -----           481             1680
June             -----           1708            535         June           -----           561             1760
July             -----            931            395         July           -----           125             1849
August           -----           1362            685         August         -----           302             2831
Septembe                                                     Septembe
r               -----           1031             984         r              -----           723             2851
October         -----            849            1579         October        -----           1108            2961
November        -----            672            1539         Novembe
December         19              954                         r              -----           1139            1519
                                                             December       326             1529
Total            19            9674            8330
                                                             Total          326            7671           20828
smart car sales (goodcarbadcar.net)

Current smart fortwo sales                               Estimation for smart electric drive
                U.S.
            smart fortwo
                               U.S.
                           smart fortwo
                                              U.S.
                                          smart fortwo
                                                         • Based on this information and the
               Sales          Sales          Sales         sales of the Nissan Leaf and the
Month          2010           2011           2012          Chevy Volt we can estimate that the
January         278            358             496         smart Electric Drive can reach sales
February        442            484             769
March           677            425             999
                                                           of 5,000 (10% of the expected 2012
April           680            467             764         EV market). Smart ED is considered
May             695            492             703         a strong challenger in the EV
June            577            470            1017         market.
July            560            327             780
August          448            405             753
September       422            469            1030       • And the fact that the smart brand
October         367            327             998         has increased sales over the past
November        211            414             704         year then this estimate is realistic.
December        570            710

Total          5927           5348           9013
Nissan Leaf (December, 2010)
Product:
Pure Electric
T.A: Niche
Sales: -69% Jun12 vs. Jun11
Range: 138 Miles, 99 MPG combined
Seats: 5 Passengers
Sales: 18.023 units sold in the US through Nov12 – top-selling Plug-in Electric car in the US
Plan to launch other models

Promotion
Focus on Environmental
Message: Do not compromise

Price:
SV: starts at $27.700 and SL: starts at $29,750
Lease: $ 379/month – $2.500 due at signing

Place:
North America, Japan, Europe, Australia
Chevrolet Volt (December, 2010)
Product:
Plug in Hybrid
Plans to launch Pure Electric
T.A: Mainstream Buyers
Sales: 28.825 in the US through Nov 2012
x3 H1 2012 vs. 2011

Promotion
Focus on Activism
Message: Convenience

Price:
$ 39.995
Place:
Europe, China, North America, Japan
Mitsubishi iMiEV (December, 2011)

Product:
Plans to launch Pure Electric
Sports
Range: 82 MPS, 75 Miles
Power: 47 KW motor and 16 KWH battery
Seats: 4 Passengers
Sales: 34 units by March 12

Promotion
Focus on Fuel Economy
Message: Affordability

Price:
MSRP: $ 29.125

Place:
Japan, US
Fiat 500

Product:
Plans to launch Pure Electric
Production version unveiled in LA Auto Show
Retro heritage
Expected launch: 2013


Promotion
Focus on Attractiveness

Price:
Approx $32.500

Place:
NA
Toyota Scion iq EV

Product:
Plans to launch Pure Electric
Compact city car
Seats: 3 adults (+1 child)
Compared to the smart


Promotion
Tech & Specs
Direct attack to smart “ready to outsmart”

Price:
Approx $17.000

Place:
West Cost, Canada
social media research
Analysis of Research - Smart Electric Drive

•   Primary concerns:                                                                                                Positive comments:

•   - size                                                                                                           - easy and fun to drive

•   - not at all confident that the car is secure (in case of an accident)                                           - seen as an urban vehicle of joy

•   - too fragile                                                                                                    - a smart choice for the modern man

•   - image issues (fear they will be laughed at when seen driving a smart car)


•   Terrible news. My wife was hit by a Smart car. Now she has to pay for a new one.
•   yeah smart cars, like to see one go on a head on collision with a mack-truck n id like to see who's smart then.
•   So, the more I look at them, the more I'm ready to trade in my explorer for a Smart ForTwo car, sure, if I get hit in it, I die, and
    it'll suck in the snow, and its tiny, but 40+ mpg?
•   I just saw the largest couple get into a smart car poor car i laughed so hard.
•   No, I will not slow down for a smart car. If it fits in the bed of my truck, it don't belong on the road.
Analysis of Research – electric car market

Primary concerns:                                          • Drove a Mitsubishi i-MiEV today. No wonder
                                                             people feel so negatively about electric
• - poor design                                              cars.
• - driving experience & overall feeling =>                • The Mitsubishi i-MiEV runs on electricity.
  inappropriate                                              That means the engine is quieter, which
                                                             means the people laughing at your car will
• - small size
                                                             sound louder
• - reluctant to drive one                                 • some ugly cars....
• - image issues (laugh at if seen driving electric        • Nissan leaf is the worst looking car ever
  cars)
                                                           • The Nissan leaf looks disgusting
- don’t trust the numbers -> consider the diesel           • Diesel POWER rules ,, electric cars can suck
  engines a way better option                                it..
     Positive comments:                                    • Just test drove Nissan Leaf (electrical car)
    - fun to drive                                           and it was AWESOME!!!!!
    - incredible money savers (monthly gas expenditures)
                                                           • This is the last thing I'd spend money on!
target audience –
brainstorming
Target Audience - Demographics



                     Age 20-35
                       Adult

         Live in                   Well
       Urban Areas               Educated




   Income             SMART
                                    Professionals
 Range: $30k+         BUYER
Audience Profiling

                                                         Consumers
Sarah                                                      media:
                                                           mostly
                                                                         Always
                                                                       connected
                                             No kids       digital       on her
                                                                      smartphone
                             Multi tasking                                           30 y.o



                      Well
                                                                                              Recycles
                    educated



                  Always
                                                                                                    Active
                 following
                                                                                                    person
                new trends



                  She’s a
                                                                                                Sociable
                  blogger



                         Income                                                           Newly
                       80.000 USD                                                         married


                                    Works for                                    Self
                                     NGO                                      confident
                                                               Lives in the
                                                   Healthy
                                                                   city
                                                   lifestyle
                                                                (Chicago)
Audience Profiling


Seth
•24 years old
•Recent graduate / Young professional
•Lives in the city (San Francisco)
•Works for a tech start up
•Income 45.000 USD (but projected to grow)
•Geeky
•Ambitious
•Tech savvy
•Curious about things around him
•Hangs out with his friends
•Listen to indie rock music
•He wants to get the most out of everything
media breakdown
Bloggers


     Objectives               Strategy                 Reason                     Flighting
• Engagement           • Hire 10 influential    • Influential to engage   • Blinking Strategy
                         bloggers to create       relevant target           • During Teaser
                                                                            • During Competition
• Increase Awareness     buzz for the
                                                                            • 1st Week post launch
                         competition            • Buzz worth                • During marathon
• Increase reach
                       • Maintain contact       • PR implication
                         with followers about
                         smartED                • Support consumer
                                                  behavior
                       • Motivate around
                         marathon “Prize”
                         (incentive)
Facebook Page and Ads (Pre & Post Launch)


    Objectives                   Strategy                     Reason               Flighting
• Awareness                • Pre Launch:               • Reach & Engage       • Pre-launch:
  • Participation          • Interact with the           relevant target        • Pulsing Strategy
  • Engagement               community on FB
    (Everyone)               around the                • Interactivity        • Post-Launch:
                             competition                                        • Blinking Strategy
• Direct Response          • Direct to the             • Efficient feedback
                             competition FB page
  • Increase traffic to:
                           • Leverage on
    • Pre: Competition                                 • Entertainment
                             marathon incentive
      FB page
    •      Registration
                           • Post Launch:
    • Post: SmartED
      website              • Direct to the smartED
                             page
  • Increase leads
                           • Interactive with target
                           • Hype on marathon.
Twitter


     Objectives            Strategy               Reason                Flighting
• Awareness           • Inform about:      • Engage with          • Pulsing Strategy
                        • Process of         relevant target
• Direct to FB page       competition
                        • Brand news       • Interactivity
• Increase traffic
                      • Collect Feedback   • Efficient feedback
• Reach
                      • Push engagement    • Instant contact
• Frequency             on the FB page
Online Banners (Pre & Post Launch)



    Objectives                    Strategy                   Reason              Flighting
 •Brand Awareness                                    • Efficiency
                            • Presence on relevant                          • Pulsing Strategy
 •Direct traffic to           websites
 •Pre: FB page                                       • Reach
 •Post: SmartED website
 •Increase conversion and   • Contact with target
 CR (registration)                                   • Awareness
                              audience through
•Increase Leads               displays that are:
•Inform and educate about                            • Brand image
smartED                       • Fun
                              • Geek                 • Engagement
                              • Green
                                                     • Pinpoint targeting
Print: Magazines


         Objectives                       Reason                             Flighting
• Educate relevant target on   • Selective targeting               • Blinking Strategy
  smartED
  • Safety                     • Reader involvement
  • Price
  • Space                      • Opportunity for repeat exposure
  • Features
  • Customization              • Frequency

• Frequency                    • Detailed information

• Direct traffic to smartED
  webpage
Magazines - Strategy

    Presence on 3 magazines categories:

    Geek/Tech Magazines                      Auto magazines                    Environmental Magazines




MacWorld magazine    Wired Magazine   Automobile Magazine     Car and Driver   The environment Magazine




                                          Fast Company Magazine
          Geek magazine                   (Targeting Young entrepreneurs)
YouTube


    Objectives                    Strategy                        Reason           Flighting
                                                                             • Pulsing Strategy
• Engagement               • Create different types of     • Reach
                             video:
• Show smartED in action     • Fun                         • Engaging
                             • Green
• Convey Image:              • Tech-y                      • Word of Mouth
 Green, Tech-y, Fun
                           • Tackle safety, space, price   • Buzz worth
• Go Viral                   issue
                                                           • Entertainment
                           • Same ending, different
                             stories

                           • Upload videos to website
                             & FB
SEM



    Objectives               Strategy                  Reason        Flighting
• Presence where        •Google Search Engine   • Precise
  relevant              •For P&P Competition
                        •For Campaign           • Efficient
• Generate qualified    •Google Ad Planner
  clicks to leads                               • Convenient
                                                                • Recency Strategy
• Increase CTR                                  • Relevant

• Direct traffic to                             • Pinpoint
  website and FB page
PR Event (the launch)


    Objectives                   Strategy                    Reason                 Flighting
                                                      • Attractive to media    • One day event
• Awareness about:         • Host big event
  • Launch of smartED        • green, techy and fun   • Creates a buzz
  • Competition
  • New image of smart     • Invite Media             • Detailed information
    fun, techy, green
                           • Announce                 • Engagement
• Direct Response:           • Launch of smartED
  • Leads online             • big winner             • Entertainment
  • Traffic to smartED       • Marathon host
    website
  • Buzz in green cities
  • Increase earned
    media
Emails


    Objectives                 Strategy              Reason               Flighting
• Brand awareness         • Database from      • Pinpoint Targeting   • Recency Strategy
                            registration
• Frequent contact with                        • Engagement
  acquired prospects
                          • Purchase
                            Relevant List      • Reach
• Increase responses
                                               • Frequency
• Increase leads          • Inform about
                            smartED
                                               • Personalized
• Increase CTR
                          • Notifications of
                            process of
                            competition
Flighting

                Teasing             Competition and Launch Event                               Post-Launch                       Marathon                     Post Launch Continued


           w1             w2   w3      w4                w5        w6   w7   w8           M3                 M4   M5        M6         M7   M8           M9           M10             M11   M12


Bloggers


FB Ads


Twitter



 Online
Banners



 Print


Youtube


 SEM


 Email


PR Event




                                                                                  Heavy                                Medium                    Light
Breakdown of Budget


                   Partnership
                       3%
             Video Prod Controls
                             2%
         Creative 5%
                                                 Media Spend
           10%
                                                 Infrastructure of P&P
                                                 Marathon
      Marathon                     Media Spend   Creative
        10%                           50%        Video Prod
                                                 Partnership
        Infrastructure of P&P                    Monitoring Controls
                 20%
Breakdown of Media Spending


                        PR Event
                          7% Bloggers
                  Email
                   6%            5%
                                         FB Ads     Bloggers
                                          20%       FB Ads
        SEM
        12%                                         Twitter
                                                    Online Banners
                                                    Print
       Youtube
         5%                                         Youtube
                                          Twitter   SEM
          Print                            15%      Email
          10%                                       PR Event

                        Online Banners
                             20%
Monitoring controls of Media

                                                    • Circulation
         • Online Buzz                              • Reader per copy
         • Google Analytics                 Print   • Rate Base
Bloggers • FeedBurner


           • # Registered Participants            • # Users
           • # clicks                     Youtube • AdWords conversion tracking
           • Landing Page hits
           • Conversion rate
FB Ads                                              • Google Ad Planner
           • # impressions
           • CTR                                    • learn with Google
                                            SEM     • AdRelevance
           • # Followers
           • # ‘s
 Twitter                                            • Open rate
           • Leads
                                                    • CTR
                                           Email    • conversions
           •   Leads
           •   CTR
                                                   • # earned media
           •   Conversions
 Online                                            • buzz and WOM
Banners    •   Display ad mouseover       PR Event • # of visits to the websites
           •   Display ad interactions
Digital-SEM

 Keyword Cost
Key Words                     Estimated Average Cost
Mercedes Smart                $ 3.50
Smart Car                     $ 3.87
Smart Electric Drive          $ 3.43
Small cars                    $ 1.02
Electric Drive                $ 1.58
Green Car                     $ 0.05
Electric Drive                $ 2.56
Electric Drives               $ 2.06
Mitsubishi EV, Nissan Leaf,
                              $ 2.03
Chevy Volt
Digital - SEM - Type of Keywords

Type of Keywords related to Competition:
 Competition Name Terms
 Generic Terms
 Terms related to Competition (Theme, Riddles, Checkpoints)
 Terms related to teasing campaign

Flighting Period: Teasing campaign and competition only


Type of Keywords of Campaign
 Brand Terms
 Generic Terms
 Singular/Plural Term
 Misspelled Terms
 Competitive Terms

Flighting Period: During whole campaign
Tackle charging stations issue – Potential addition




        Partnership with Parking Lots




        Consolidated App with

Smart EV launch campaign 2013

  • 3.
    Why are wehere? smart electric drive campaign Reason: Launch of the new smart electric drive in Q1 2013 across the U.S. Overall Objectives: 1. Increase brand awareness 2. Generate sales of 5,000 units Timing: One year campaign
  • 5.
    Industry Car Industry: Electric Vehicles: TESLA MODEL S • Highly competitive • Energy efficient driving trend • Gasoline prices rising • Battery life improving • Improvements in vehicle fuel • High prices remain efficiency compared to ICE cars • Hybrid = Gas + Battery • Safety issues will get closer scrutiny • Appetite for smaller cars • Establishment of a charging station network
  • 6.
    Competition Tesla Model S Ford Focu $59,350 EV$40,000 Chevrolet Volt Coda Sedan $39,900 Nissan Leaf $38,000 Fiat 500e $36,000 Honda Fit EV $36,000 Chevrolet $389/month Spark Mitsubishi $35,000 smart i-MiEV electric drive $31,000 $25,000
  • 7.
    Strengths Weaknesses Unique design & features Customization Younger audience Size Dealership network Price Internal Negative perception Only convertible EV Limited interior space Ease of driving No back seat Crash tests Not powerful Zero emission Battery life /charging Fuel efficient – Cost effective Low insurance & repair Target market extension to the Awareness of charging cities infrastructure Attract younger audience Uncertainty of charging stations expansion External Limited competition Trend towards eco-friendly Competitor EV & hybrid dealer network Increasing gas prices Electric ≠ Hybrid National increase in charging stations Electric cars still expensive Limited space in parking lots Fuel efficient ICE cars Opportunities Threats
  • 8.
    Brand Pyramid Unique Brand Core Values Enjoyable - User Friendly Eco-Innovation - Eco-Friendly - Convenience Express yourself - Safe No worries - Agile Love to drive - Innovative Disable drivers guilt - Convenient Smile Inducing Convenient Brand Personality Easy parking - Smiley Safe drive - Fun Roam without hurting environment - Unique Save on running costs - Responsible - Easy Going - Stylish Eco-friendly / 100% electric car - Intelligent Tridion safety cell Compact size High MPG / longevity on charge
  • 9.
    Trends Social Media Online Survey • Facebook • Blogs • Questionnaire • Twitter • Articles • Dealerships • Instagram • eMarketer • User Comments People care for: …but look for: Price ways to entertain themselves Safety incorporating technology in daily lives Size having a positive impact on the environment
  • 11.
    Where are they? 1.Los Angeles 2. San Diego 3. San Francisco 4. Portland 5. Seattle 6. Austin 7. Orlando 8. Miami 9. Phoenix 10.New York City
  • 12.
    Who are they? Free Lifestyle Genius Interesting Stand out Trendsetting Ambitious Unique Thinkers Tech Savvy Innovative Environmentally conscious Think forward Out of Box Visionaries Un-ignorable No respect for status quo
  • 15.
    The Insights • Easinessof slipping into the masses • Eventually become one among many • People are bored of that • Stand out, express yourself, change the standards • More than just the need for transportation • Need for expression, differentiation •Do it, but do it your way!
  • 16.
    Wrong we areRighting Geek is the new cool!
  • 18.
    Idea plug into yoursmart green is cool smart is green “Plug in the fun… Geek it out” cool is smart geek is fun fun is smart smart is geek plug in your smart
  • 19.
    Why should theybelieve this?
  • 21.
    The Execution 1Year Campaign Post Teaser Contest Launch Event Launch Marathon 2 Weeks 4 Weeks 9 Months Launch Event: One day Marathon: One day
  • 22.
    Teaser 2 Weeks Teaser # WHO’S THE NEW GEEK IN TOWN Objectives Strategy Media • Create a buzz in 10 biggest green cities • Los Angeles • San Diego • Bloggers • Online Banners and Social • San Francisco • Portland Media noise • Facebook Pages and Ads • Seattle • Twitter • Austin • Hire Influential Bloggers • Online Banner • Orlando • Miami • Phoenix • New York City
  • 23.
    Plug & PlayContest 4 Weeks Register Plug Receive 1st Clue Get to check Get the clue point Get to 1st check point 1st Search + Solve the Involve riddle Community You are the city representative
  • 24.
    Contest 4 Weeks Contest # PLUG & PLAY Objectives Strategy Media • Host competition on FB • Drive Participation • Register for participation • Facebook page and ads • Engagement • Designate the city representative • Twitter • Plug & Play to get clues at • Magazines • Create smartED communities in checkpoints each state • Receive set of riddles to solve • SEM • Create Buzz Online • search + online engagement • YouTube • Education about smartED • Riddles about Fun, Tech and Green • Email (fun, tech-y, green) • Get access to the next checkpoint • Send Emails for updates
  • 25.
    Launch Event One Day Launch Event THE NEW GEEK IN TOWN Objectives Strategy Media • Create a buzz around the • Host a PR Event smartED • Invite Media • Announce (print & online) • PR event • Winner of P & P • Announce launch of • Winning City Marathon smartED • Big prize of the player : a smart ED • Announce Results of P&P
  • 26.
    Marathon One Day Marathon # GEEK IT OUT Objectives Strategy Media • Keep the hype during the campaign • Announce marathon as a prize at the beginning of the • Give motivation/incentive for P&P • Facebook Page the cities to engage in the competition • Facebook Ads • Motivate through social media • Twitter • Convey a green and fun image • Bloggers • Launch a Marathon event in • Remind the competition after the winning city couple of months of launch
  • 27.
    9 Months Post Launch Post Launch THE NEW GEEK IN TOWN Objectives Strategy Media • Keep the hype on smartED • Continue communicating on • Leverage on image: smartED • Facebook pages and Ads • Fun • Twitter • Tech-y • Leverage on the database • Online Banners • Green acquired and send news • SEM • Answer concerns • YouTube • Safety • Send invitations to test • Email • Price drives • Space
  • 29.
    Breakdown of Budget Partnership 3% Video Prod Controls 2% Creative 5% Media Spend 10% Infrastructure of P&P Marathon Marathon Media Spend Creative 10% 50% Video Prod Partnership Infrastructure of P&P Monitoring Controls 20%
  • 30.
    Breakdown of MediaSpending PR Event 7% Bloggers Email 6% 5% FB Ads Bloggers 20% FB Ads SEM 12% Twitter Online Banners Print Youtube 5% Youtube Twitter SEM Print 15% Email 10% PR Event Online Banners 20%
  • 31.
    Monitoring Controls ofMedia • Circulation • Online Buzz • Reader per copy • Google Analytics Print • Rate Base Bloggers • FeedBurner • # Registered Participants • # Users • # clicks Youtube • AdWords conversion tracking • Landing Page hits • Conversion rate FB Ads • # impressions • Google Ad Planner • CTR • learn with Google SEM • AdRelevance • # Followers • # ‘s Twitter • Leads • Open rate • CTR Email • conversions • Leads • CTR • # earned media • Conversions Online • Display ad mouseover • buzz and WOM Banners PR Event • # of visits to the websites • Display ad interactions
  • 32.
  • 33.
    smart electric drive appendix •creative brief • research o marketing trends o consumer trends o online - questionnaires o dealership o product o competition o social media • target audience - brainstorming • media breakdown
  • 34.
  • 35.
    Creative Brief BUSINESS BACKGROUND Whatare we trying to do? Smart USA is launching the new 2013 smart fortwo electric drive model, a fully 100% electric vehicle, in the US market in Q1 2013. The smart car fortwo ICE (Internal Combustion Engine) model has been in the US market since 2008. The 2013 smart electric drive shares the same body- style as the ICE model, however it uses an innovative electric power-train technology. The smart electric drive will be highly customizable with different choices for exterior colors and interior upholstery. We are developing an integrated marketing campaign to launch the 2013 smart electric drive. What’s the opportunity? The Electric Vehicle (EV) segment is still at an early stage but seeing significant traction. US vehicle shoppers start to consider purchasing EVs to offset the uncertainty around gasoline price inflation. Combining this with the rise of “green” consumers who are looking at more ways to be environmentally conscious, there is potential for us to position the smart electric drive as the most fun and affordable EV. What are the key challenges? Lack of education among consumers as to how to differentiate EVs, hybrids, plug-in hybrids. Manufacturers are tagging cars as “green” all the time. High initial costs (charging stations at home) and low resale value of EV cars. Electric charging infrastructure is relatively week across the US, especially in cities. Alter the current perception of the smart fortwo model: not safe, “cute” girl’s car, not enough space. Small budget compared to our competitors. Let them educate the customers and we will sell our brand. What does success look like? Leads: generate leads and genuine purchase interest from urban prospects. Sales: capture market share in the top cities where EVs are being sold. Increase brand awareness and appeal among younger audience. Increase reach and interaction with smart.
  • 36.
    Creative Brief AUDIENCE INSIGHTS Whoare we trying to connect with? We want to engage young people living in urban areas who do not just look for a vehicle to take them from A to B. They are innovative, unique thinkers and have the need to stand out from the mass. They have a geeky side to them, are tech savvy and opportunists; always willing to go against the “known” to discover and craft the “unknown”. They are well educated and conscious about the environment and their impact on it. They want more than just satisfying their transportation need; they want to have a voice on the streets.. “They want to do it, but they want to do it their way.” • Core target is males and females 25-40 years old – in the top 10 cities in the US. What do they think / feel / say / do now? They know about the EV category and are excited about the progress of electric cars on the streets. They are not convinced as of yet to pay more for an EV. They know the Smart Car but they do not consider it trustworthy. Fuel efficiency, driving convenience in the city and environmental friendliness are factors positively perceived. In essence people are in the “Maybe, but” stage, the need the stimulus to move with reassurance to the “Yes!” stage. The Insight: People have the need to differentiate themselves. We live in a highly demanding world affected by the easiness of slipping into the masses. The fun element is forgotten and eventually we all become one among many. People are bored of that, they want to stand out, express their feelings and change the standards – bringing out their “geekiness”. They want to buy the EV smart car not because they need a car, it is beyond that, they want to buy it in order to make their lives easier, differentiate, express themselves and do the right thing. What wrong are we righting? Geeks are the kids we all once used to tease in our school years. Those geeks though are nowadays the CEOs, the innovators and the stock market’s biggest players. The standards of coolness are shifting; it’s cool to act like a geek. Geek is becoming the new cool! The EV Smart Car will allow people’s inner “nerd” to stand out and make a statement with style. Proud to be Geek!
  • 37.
    Creative Brief THE COMMUNICATIONIDEA Plug in the fun.. Geek it out Give yourself a break once in a while. Actually no, ife is too tough; give yourself a break as often as you can. Escape from reality and misery through driving, engage fun in it and shift this necessary activity into an enjoyable experience you cannot get enough of. You are an early adopter of the electric vehicle and it satisfies you to be innovative and take a stance using a fun smart car. Why should they believe this? The smart EV is the most affordable electric car in the market. It is fun to drive, eco-friendly and has technology perks that improve the overall driving experience. MANDATORIES 100% Electric Car What’s the brand personality and tone? Fun, unique, responsible, innovative, eco-friendly.
  • 38.
  • 39.
    Current Trend ofElectric Car Automobile design has moved away from the old “Lead Sleds”, big, heavy, metal monstrosities that long dominated the American automobile scene. Technology has been used to create lighter and more aerodynamic designs. This trend has been a boon to the electric vehicle, as the easiest way to increase its range is by decreasing its weight and wind resistance. Even so, range anxiety is still possibly the biggest barrier to the introduction of electric drive automobiles. This is best addressed by the Extended Range Electric Vehicle, which is essentially an electric vehicle with a small internal combustion engine driving a recharging system, which recharges the battery (the main power source) on the fly. This type of vehicle provides most of the advantage of an all-electric vehicle while allowing the range of traditional internal combustion engine automobiles. It uses the gas stations on every corner to recharge electric vehicles. Many new carmakers and several established car manufacturers are pursuing this approach. In the USA, Ford, GMC and Chrysler all have their fingers in this technology.
  • 40.
    Current Trend ofElectric Car Though Toyota must be given credit for getting to the right market at the right time, the Prius is technologically a stodgy old foot dragger with its dual drive hybrid system. This design features an internal combustion engine car with an electric motor inserted into the drive train. This means that the vehicle carries the weight of the electric motor and its massive battery plus a full internal combustion drive train! Another issue with the dual drive hybrid is system complexity. The fully electric car and its extended range cousin have significantly fewer parts than the traditional automobile, making them easier and less expensive to maintain. However, the dual drive hybrid has all the maintenance requirements of an internal combustion engine car, plus the maintenance of an electric car. In this case, more is not better. At present, price is another barrier to acceptance of electric cars. Simplicity of design can significantly reduce the manufacturing costs, and this is also an area of great opportunity. While there are enormous numbers of patents in the area of electric vehicle design, few of them address innovations that drive down production costs. Just as Henry Ford’s affordable automobile manufacturing revolutionized the automobile industry, developments that enable the manufacture of an affordable electric car may also impact the industry in profound and transformative ways.
  • 41.
    Future Trend ofCar Industry Micro Environment: • Government Influence Countries like U.S. and China have put it on their national agenda to develop a leading role in electric car technology Government try to speed market migration toward electric cars through financial incentive such as subsidies, taxes, investments. • Gasoline prices rising More specific threats loom for older used cars in particular. You've probably noticed gasoline prices rising, right? Well, that trend is likely to continue and even accelerate in future years as the number of cars on the road globally increases, and gasoline and diesel fuel continue to provide the go-juice for roughly 87% of these vehicles. Higher prices and limited supplies of oil, however, are going to catalyze an astounding increase in automotive fuel efficiency. Right now, U.S. cars require more than a gallon of gas, on average, to travel just 30 miles. But BP projects that by 2030, the average U.S. automobile will travel the same distance on just a half-gallon. Cars sold in Europe, meanwhile, have already hit that mark, and Chinese autos aren't far behind. • Competitive Automobile world between companies
  • 42.
    Future Trend ofCar Industry Car Industry: • Rapid improvements in vehicle fuel efficiency using petrol and diesel Even if we only saw 30% energy saving in 30% of vehicle miles driven in developed nations over the next decade, we would save at least 9% in motoring energy use (at today’s rate of miles driven a year). That would be the same as cutting today’s global emissions by more than 1%. Greening of the world car fleet is happening rapidly. JD Power Consultancy estimates that a third of emission cuts by 2020 will come from improving petrol and diesel engines, and 14% from miles driven in electric vehicles. If all vehicles in America were hybrids, and half were plug-in hybrids (larger batteries), US imports of oil would fall by 8 million barrels a day or by 80% of daily consumption.
  • 43.
    Future Trend ofCar Industry • Less oil consumption and More Batteries Consumption Batteries are going to be one of the biggest green tech businesses – powering not only phones and other small devices, but also cars, trucks, buses and just about any large piece of equipment that does not have a permanent electricity connection. Expect sales of hundreds of billions of dollars. President Obama’s economic stimulus provided $2.4 billion to fund battery innovation and electric car drive projects. Car batteries will have another purpose: linked together when charging at people’s homes, to create Virtual Storage by power companies, to assist their power management at off peak times. This will make it easier for them to plug in huge numbers of wind and solar generators. Smart grids will allow power to flow in both directions, so that each battery can become a power source to other people in the neighbourhood for short periods of time. If 200,000 electric cars were plugged into the German national grid, it could make 8 megawatts of power available almost instantly, giving more flexibility than the nation currently needs.
  • 44.
    Future Trend ofCar Industry Electric cars: • EV-More energy efficient driving trend Electric cars are only part of the answer to more energy efficient driving. 70% of all EU freight is moved by road, and trucks use 12% of all oil consumed in the US, but the energy efficiency of most trucks is as low as it was 40 years ago. We will see a giant leap in efficiency of new trucks – at least 40% in the next decade. • Lower emissions produced by Electric cars Electric cars can produce much lower emissions than burning fuel in mobile engines, but it all depends on how the electricity is generated. Burning petrol or diesel in a small, mobile engine can be inefficient compared to the most efficient coal-fired power generators. When petrol is used to power a vehicle, only 15-20% of the energy is usually captured to drive the car forward, compared to 40% in making electricity in an efficient coal power station. It is true that a small amount of power is lost between power station and battery, and 20% of electricity put into the car is lost in heat (batteries and other components). But even when we include these things, we can see that “coal-powered” electric cars are likely to be better users of fossil fuels than diesel or petrol vehicles. Where wind, solar, waves, tide or nuclear power is used to charge batteries, electric cars have zero emissions. Either way, air quality improves dramatically in cities as the use of electric vehicles increases. Owners can also save a huge amount of vehicle tax on petrol or diesel since taxation is far lower on electricity. It typically costs only 1-2 cents a mile in electricity.
  • 45.
    Future Trend ofCar Industry • Prices will remain high for electric vehicles Pike Research notes that even though the Chevrolet Volt will have a pricetag that is $1,000 less in 2012, its stripped-down feature set will turn off many potential electric vehicle buyers. In fact, prices for the Nissan Leaf will be higher for 2012 than they were for 2011. The research firm believes that $23,750 is the optimal price range to inspire more mainstream adoption, but most of the models that consumers will consider in 2012 will all be priced at more than $30,000. That includes the Toyota Prius, the Ford Focus EV, and the Honda Fit BEV. Even though an anticipated glut of electric vehicle batteries will affect the market in 2012, most of the batteries for the 2012 models were ordered before increased production helped bring down prices. So, battery availability won't help with pricing until 2013 or 2014 model years, Pike Research predicts. • Safety issues will get closer scrutiny TheNHTSA's declaration in November that it would look more closely into battery safety related to post-crash fires in the Chevrolet Volt had electric vehicle critics clamoring, "I told you so." Let's be clear, the NHTSA is just doing its job AND it has publicly stated: "NHTSA is not aware of any roadway crashes that have resulted in battery-related fires in Chevy Volts or other vehicles powered by lithium-ion batteries. However, the agency is concerned that damage to the Volt's batteries as part of three tests that are explicitly designed to replicate real-world crash scenarios have resulted in fire."
  • 46.
    Future Trend ofCar Industry • Establishment of a charging station network Gas stations are ideally placed to support electric vehicle “refueling” and are already on the grid. This simplifies the establishment of a charging station network. Gas stations require only upgrades to their power lines, and the installation of some “electricity pumps”. Patenting and development of the electric car charging station has been somewhat neglected until recently. Now the introduction of plug-in electric vehicles is driving greater activity in this area, such as GE’s recent activity,"Systems and methods for charging a battery"). Still, there remains significant white space in this area.
  • 47.
    Future Trend ofCar Industry Technology: • More businesses will install chargers A number of companies, including one of the nation's biggest parking-lot operators, announced plans to invest in technologies. This is a trend that is likely to continue over the next 12 months, provided vehicle sales don't lag too much. The more likely it is for a person to juice up their car running errands or if they are traveling to a city for the day, the better the chances for adoption. More businesses will install chargers. A number of high-profile companies (Adobe, GM, SAP, Google) have started installing chargers in office parking lots and this trend will continue in 2012. Consider it to be one of the latest employee perk fads. • Wireless charging technologies will get wider testing I literally just heard from Evatran, the maker of the Plugless Power wireless charging technology. It has just starting offering incentives to drivers of Nissan Leaf and Chevrolet Volt that want to test out its technology. The first 500 drivers that get involved will be eligible for up to six months of free electricity for charging their vehicle. Sounds like Sears will help get the installations up and running. • Models will emerge for vehicle-to-grid electricity distribution In scenarios where a house loses power, electric vehicles could play a role as back-up generators. Pike Research predicts that applications will continue to emerge that hook electric vehicles and their charging infrastructures more tightly into the home.
  • 48.
    Future Trend ofCar Industry • Development of fast charge technology Some observers worry about the recharging time required for the battery. Taking hours to recharge would restrict the usefulness of the vehicle for long trips. However, fast charge technology is already a high priority for electric car development. Several battery makers such as Altairnano have developed electric vehicle batteries that recharge in ten minutes with specialized equipment. Altairnano had a flurry of battery design filings in recent years, including, most notably, “Lithium Ion Batteries” which states in its abstract that the invention “is directed to lithium ion batteries that provide for rapid recharge, longer battery life and inherently safe operation.” Toshiba also has recent IP in this area. The introduction of electric vehicles into our present dealership network would require little change. Some added effort is needed to train technicians to service the electric drive systems. There will also be a need for diagnostic tools for the new class of vehicle. These areas of development remain relatively wide open, awaiting the indication of a viable electric car design that would be widely used. The corollary equipment for recharging, test and repair will follow designs and technology that show the signs of popular adoption by the industry.
  • 49.
    Future Trend ofCar Industry Consumer: • Car ownership will rise three times as fast -- up 60% over the next 20 years • Buyers will have far more choices in 2012 Pike Research predicts that unit sales of plug-in electric vehicles will reach 257,000 units globally next year. The pioneering technologies found in the Chevrolet Volt and Nissan Leaf will be joined by models from BMW, Ford, Honda, Toyota and Volvo, as well as the newcomers Coda and Fisker. North America will account for about 66,000 of those unit sales, slightly more than for all of Europe but about half of what is predicted for the Asia/Pacific region.
  • 50.
  • 51.
    Electric vehicle realitiesvs consumer expectations Figure 1: Global consumer segmentation for Evs (November 2010 - May 2011) Potential first movers: generally well-educated, with a higher-than-average number holding post-secondary degrees. They claim to know much more about EVs than the might be willing consumers. They tend to live in urban areas.They are marginally more likely to be male than female and represent the middle or upper class. They tend to see themselves as environmentally conscious, tech savvy, trendsetting, and politically active. They claim to be more knowledgeable of EVs and attribute a number of positive characteristics to EVs: “coolness,” convenience, safety, stylishness, and good value. On this latter point, potential first movers are also sensitive to government incentives, fuel efficiency, and the cost to charge a battery. The appeal of electric vehicles to those who indicated an interest is the perception that these vehicles are cleaner, more environmentally friendly, and more efficient than traditional internal combustion- driven vehicles. Despite their apparent eagerness to buy an electric vehicle, however, the final decision to purchase or not will be influenced by a number of factors, including how well current and future vehicles meet their needs.
  • 52.
    Electric vehicle realitiesvs consumer expectations Figure 2: Consumers want mid-size sedan EVs Survey question: If you were considering buying or leasing an electric vehicle, which type of vehicle would you be most interested in? For US: 1st Perference is Mid-size sedan; 2nd Preference is SUV/Crossover; 3rd Prefernce is Small sedan
  • 53.
    Electric vehicle realitiesvs consumer expectations Figure 3: Range expectations exceed typical driving distance Survey question: What is the minimum range that an electric vehicle would need before you would consider buying or leasing it?On average, approximately how many miles/kilometers do you drive each day during the week (Monday through Friday)? Despite the relatively high willingness of consumers to consider an EV, many seem not willing to compromise in key criteria, such as range. While on average 80 percent of drivers surveyed typically drive less than 80 kilometers per day, consumers expect EVs to travel considerably farther. The U.S. and France seemed to have the highest sensitivity toward range, with only 63 percent and 67 percent, respectively, satisfied with a range of 480 kilometers. The expectation in U.S.77% satisfied with a range of 640 km63% satisfied with a range of 480 km44% satisfied with a range of 320 km20% satisfied with a range of 160 km3% satisfied with a range of 80 km Reality: Current technology permits most electric vehicles to cover an average of only 160 kilometers between charges. The main limiting factor for range is energy density. Looking at automobiles already introduced and announced product introductions around the world through 2013, for most manufacturers, the driving range of their pure EVs still falls short of consumer expectations (see Figure 5). In fact, there is little or no increase in range beyond 160 kilometers over this time horizon based on announced vehicle introductions from most manufacturers.
  • 54.
    Electric vehicle realitiesvs consumer expectations Figure 4: Majority of consumers expect electric vehicles to recharge in two hours or less Survey question: Considering your expected vehicle use, what is the longest time to fully recharge the battery that you would consider acceptable when buying or leasing an electric vehicle?
  • 55.
    Electric vehicle realitiesvs consumer expectations Reality: Electric vehicle chargers are classified by the The expectation: level of power they can provide to the battery Most of the consumers surveyed expected an electric vehicle to pack. For example, level 1 being the lowest recharge its battery in two hours or less. In all countries, only a small level of power and level 3 chargers supplying the highest level. With level 1 and 2 majority viewed eight hours—the actual and longest time it can take to chargers, anywhere from three to 20 hours are recharge the typical electric vehicle battery in vehicles today using a required which means that the traditional level 2 charger— as acceptable. model of periodic roadside filling stations will be challenging thereby leaving the charging limited to the home and possibly the workplace. Solution 1: Building and installing a recharging infrastructure: Level 2 chargers are preferred as they optimize charge time and cost for use at home or at an external facility. Consumers would not only have to plug in their vehicles overnight, but also be able to recharge in public spaces such as parking lots at grocery stores or office buildings. Each of these infrastructure improvements brings its own issues. Expense—and who pays—is certainly primary among them. The technology would likely have to be standardized so that an electric vehicle can recharge at any dock, not just those specific to its make. Solution 2: Convenient battery swapping stations: where drivers could exchange a dead (or dying) battery for a freshly charged battery in less than two minutes without getting out of the car. This could reduce the cost of the battery and eliminate the concern over charge times. But it would add to the cost of infrastructure to build the stations and would likely cause significant challenges for electric vehicle automotive manufacturers. Wireless inductive charging is another possibility, and three models are in development: electro-magnetic induction, magnetic resonance, and microwave.
  • 56.
    Electric vehicle realitiesvs consumer expectations Figure 5: Consumers are not willing to pay a price premium Survey question: How much more would you be willing to pay for an electric vehicle compared to a similar vehicle with a gasoline engine?
  • 57.
    Electric vehicle realitiesvs consumer expectations Figure 6: Consumers expect to pay less than $30,000 for an EV Survey question: If you were considering buying or leasing an electric vehicle, in which of the following price ranges would you be shopping?
  • 58.
    Electric vehicle realitiesvs consumer expectations Figure 7: Consumers are wary of fuel prices Survey question: At what price for gasoline would you be much MORE likely to consider buying or leasing an electric vehicle (EV)?
  • 59.
    Electric vehicle realitiesvs consumer expectations Modest increase in fuel pump prices will Consumers in all regions surveyed indicated that their be tipping point toward EV adoption: interest in EVs would be stimulated by higher With rising fuel prices, consumers are gas/petrol prices. If, for example, the price of a gallon likely to become more interested in EVs. of gas in the United States rose to US$5.00 (representing a hike of about 37 percent from the average price in the United States), the percentage of respondents who indicated they would be interested in EVs rises to 78 percent. The exception in U.S. One of these countries of exception may be the U.S. Notwithstanding Brazil, Turkey, and India, it appears that the U.S. market is closest to having oil/gasoline prices hit a level where consumers are much more likely to consider adopting EVs. A close eye should be kept on the U.S. market for this reason as well as their higher tolerance to high purchase prices for EVs
  • 60.
    Electric vehicle realitiesvs consumer expectations Figure 8: Fuel efficiency trumps Evs Survey question: If vehicles with gasoline engines of the size, performance, and other features you prefer were able to achieve the following fuel efficiency, at what point would it make you much LESS likely to consider buying or leasing an electric vehicle? Fuel efficiency of 50 mpg in large automotive markets, like China (57 percent) and the U.S. (68 percent), results in over half of the population surveyed becoming much less likely to consider an EV. Consumers will be less likely to consider purchasing an electric vehicle as the fuel efficiency of ICEs improves. As a result automotive manufacturers will need to carefully plan their investments to maximize sales of fuel efficient technologies consumers are willing to purchase.
  • 61.
  • 62.
    Online research -Questionnaire • We conducted an online survey to collect information about the smart brand and how consumers feel about the existing smart fortwo. • The following slides includes the most relevant information that we used to make our analysis and recommendations.
  • 63.
    Research – Demographics Gender Age 0% 10% 20% 30% 40% 50% 60% 70% Below 20 Female Male 21-30 52% 48% 31-40 41-50 Above 51
  • 64.
    Important Criteria inCar Decision Buying a Car? Buying an Electric Vehicle? 60% 60% Important Important 50% Most Important 50% Most Important 40% 40% 30% 30% 20% 20% 10% 10% 0% 0%
  • 65.
    Awareness & Interestin smart car Aware of the smart car? Would Buy a smart car? Don't No Know 21% smart 21% Yes No 56% 23% Yes 79%
  • 66.
    Why Buy orNot Buy a smart car? Buy smart vs Not Buy Buy Not Buy 80% 70% 60% 50% 40% 30% 20% 10% 0% Appearance Price Environmentally Customization Fuel Economy Safety Fun Driving Size Friendly Performance
  • 67.
    Buy the smartelectric drive? Buy a Fully Electric smart car? Yes Maybe 35% 39% No 26%
  • 68.
  • 69.
    Dealership Research • Wewanted to gather first-hand research about the existing smart car and the state of Electric Vehicles sales by visiting the following dealerships around New York city: • smart car • Mitsubishi i-MiEV • Chevrolet Volt • Nissan Leaf (declined to allow us to gather information)
  • 70.
    Dealership Research (smartcar) • Who buys a Smart Car? • Why Do People Buy a Smart Car? • first time car buyers • Convenience • Students buy it for payment structure of • Cheaper insurance $99/month • Gas savings • Even people who own $100,000 Mercedes • Fast cars • unique thinkers • Easy to park • not concerned by what other people are • American market is really making a shift thinking about them or their car from larger to smaller cars. • They care about fine details • Icon parking garage for a monthly parking spot which is 3-4 time less than • quirky in their own right a regular car pays. Also half off for • really excited about the car daily/hourly rates • super excited about the mileage that you • They drive more expensive vehicles get 38 MPG • city is 30MPG • really noticeable at the pump
  • 71.
    Dealership Research (smartcar) • Why Do People Don’t buy a Smart Car? • Do they care about customization? • Safety, their mind is made up before they come in: • Characteristic of Smart Cars they want to its small, it’s not safe make it stand out and make it their own. • Space interior – come in looking for a 4 seater – unrealistic expectations • They can fully customize their cars • Wanting everything out of the car – unrealistic • They are not always aware of expectations customizations, but when sales people tell • The entry level car $14,000 is very them about customization, they tend to like basic/minimalistic (roll windows, etc..)– unrealistic it and do their own shit expectations • they come in because they are drawn to the car but not aware of all the options they • Is it their first car? Second car? Or 3 +? could do with it • Some people buy it for first time, mostly from • Suggested that there will be little or no attractiveness of finance/payment scheme customization for the Electric Smart Car • Usually though it’s a second car (or more) • Average Sales per month of Smart Cars • 20 for the past, because of the financing program ($99/month) and ease of parking (icon)
  • 72.
    Dealership Research (smartcar) • What’s your opinion/perception about the • Do you think electric cars are worth Electric Vehicle Smart Car? paying extra for (environement etc)? • Very excited about it • Already have huge customer inquiries on it • Will be the least expensive of the competition • Huge database already • 87 miles on the full charge • Excitement • 4 hours in city conditions • Least expensive car of its kind • full charge for 8 hours in regular • 220V down to 4 hours with $2500 • Would you buy it? • EV could be better used in the suburbs with the • Yes I already drive a gas smart car current setup in the cities – no chargers available at gas stations or around the city. • Pulling up at lights and people look at it • EV, would be a second or 3rd vehicle • Education about the brand and its benefits • Owners of electric cars love to highlight that its an electric car and that it is unique and special • Once people start using the electric cars, the more people will drive it the more charging stations will be available.
  • 73.
    Dealership Research (Chevrolet) •Who buys an Electric Car? • Is it their first car? Second car? Or 3 +? • Not specific – no really clear demographics • Second car or more • Wealthy commuters • What do they care most about? • Why Do People Buy an Electric Car? • Technology in the Volt is fantastic. Even when compared to a normal gasoline car • Ecological view • Savings on gas/gas efficiency • Average Sales per month of Electric • High occupancy lane with 1 person Cars • You don’t have to sell this car, they come here • They are currently sold out for it • 1 a month – its quite unusual to sell it in the city • Why Don’t People buy an Electric Car? • North California (silicon valley, technology • Usually people that come into the dealership savy community) – a dealership sells have already set up their mind that they want around 68 Volts in 1 month (also due to the to buy the Volt. fact that you can use the fast lane)
  • 74.
    Dealership Research (Chevrolet) •Who do you consider is your • Would you buy an Electric Car? competition? • He would definitely buy it • Prius • What do you think of the new • Leaf Electric Smart Car? • What’s your opinion/perception • Not heard of it. about the Electric Cars? • Technology is finally at a point where its drivable • Very convenient
  • 75.
    Dealership Research (Mitsubishi) •Who Do you consider is your competition? • Would you buy an Electric Car? • Leaf • Not at this present time • He doesn’t know who else is the competition • They’re like golf carts • Volt (we told him about the Volt) • If you have a car and you live in the suburbs it could be a second car. So maybe as a second car yes. • What’s your opinion/perception about the Electric • He has no motivation to sell the Electric Car Cars? • It’s a great concept • What do you think of the new Electric Smart Car • Its too pricey at this time – because of the battery • I don’t know anything about it. • Downside of electric is the last of the charge, the distance you can travel • Do you think electric cars are worth paying extra for (environement etc)? • Its too early for electric • There are too many gasoline cars • Gasoline companies are making too much money and they will not allow the growth of electric cars
  • 76.
    Dealership Research (Mitsubishi) •Who buys an Electric Car? • Is it their first car? Second car? Or 3 • No one buys the Electric Car +? • In suburbs it could be their 2nd or 3rd • Why Do People Buy an Electric Car? car • They don’t because Mitsubishi doesn’t • What do they care most about? advertise it. • There is also no incentive for sales people • They don’t buy it to sell the electric cars. • We’ve been asking the factory to take the Electric Cars back!!! They’ve been • Why Don’t People buy an Electric Car? there for a long time and no one is interested. • Factory doesn’t back the sale of Mitsubishi • Its for suburban areas • Average Sales per month of Electric • Because they don’t have anywhere to Cars charge it in Urban areas. • 0 • Its too expensive
  • 77.
    Dealership Research –Summary of Findings • smart car • Chevrolet Volt • very enthusiastic about current smart • Sales people very excited about it car ICE model – selling well in the city • Out of stock – 1 per month is good • Students, middle-aged, older sales in New York generation, all unique thinkers • California – 69 per month at 1 • Safety is always a challenge dealership • Parking incentive is great • Great technology inside the car • Big interest/leads in electric drive car • Mitsubishi i-MiEV • Issue is that no chargers available at gas stations or around the city • No sales in New York • Sales people not excited about it • No advertising from Mitsubishi makes it impossible to sell
  • 78.
  • 79.
    smart ED -Advantages • Attractive price (vs. competition) •Sophisticated batteries Not much more expensive than the non •Dedicated Smartphone app ED (remote, monitor functions) • First electric car “coupe” •For local errangs •Efficiency • Quieter than the regular smart •Big enough for 2 • The least costly credit •Cute / handy • Distributors: local smart dealers •Delivers power smoothly • Zero emission •Faster than the regular smart •Quiet • New motor to drive rear wheels
  • 80.
    smart ED -Inconveniences • High entry costs • Threat of Fires • Looking for charging stations • Charging stations not widely spread • Too simple interior designs • Installation costs of chargers • Car feels fast but it is still slow • Doesn’t hold well • Brake and acceleration paddles are oddly positioned • Can be unstable
  • 81.
    SWOT - Internal Strengths •Unique design & features Weaknesses • Customization – No two smart cars are the same, you • Not very popular with the younger generation can customize the car in any way you want • Not very extensive dealer network i.e. not available • Size nationally like normal passenger cars • Half prize in the parking lots • Consumer’s overall negative perception about the car • Ease of driving - fun • More expensive than competition • Similar performance with the sedans in the crash tests • Not many locations to charge it – Lack of infrastructure • No pollution as it is electric driven • Limited interior space • Fuel efficient – Cost effective • No back seat • Rated as one of the cheapest cars to insure and repair • Not powerful • Cheapest electric car • Battery life – waste of time to fully charge it • Spacious for two • External
  • 82.
    SWOT - External Opportunities Threats • Reaching newer markets which are not yet • Competitor electric & hybrid vehicles have very well explored established dealer & supply chain networks • Branding to be made more youth oriented • We cannot be sure when the chargers will become which will lead to more sales highly available • Limited competition • People are unaware of the difference between an • People are becoming more and more eco electric and a hybrid car friendly • (Prius is considered an electric car – WTF is wrong • People look for ways to express themselves – with people) customization • Price of electric cars is and will be high • Gas price will increase • More and more fuel efficient cars • Charging stations are increasing nationally • The number of cars in increasing - limited space in parking lots.
  • 83.
  • 84.
    Industry & Competition(Pike Research Study) • Pike Research forecasts that California, New York, Florida, and Texas will lead the way in PEV sales. By 2020, Hawaii is expected to have the highest penetration rate of PEVs as a percentage of all light duty vehicle sales. • Among metropolitan areas, New York City, Los Angeles, and San Francisco are anticipated to have the largest sales of PEVs through the decade. In Canada, the provinces of Ontario, Quebec, and British Columbia, which account for 75% of the Canadian population, will represent 97% of Canadian PEV sales by 2020. Toronto and Montreal will lead Canadian PEV sales. • California car buyers will account for 25% of plug-in and pure electric vehicles (EVs) sold in the US for the rest of decade, says Pike Research. • That's because the state is home to four of the top 10 metropolitan areas supportive of EVs: Los Angeles/Long Beach; San Francisco Bay Area; San Jose/Santa Clara; and Sacramento.
  • 85.
    Competition Financials Nissan LEAF • Zero-emission leadership World’s most successful EV • Global EV retail sales: Competitors 39%, Nissan LEAF • Nissan is committed to leadership in the field of zero- 61% (23k units) emission mobility. Toward this goal, we have engaged • Cumulative sales of Nissan LEAF: 30 k units (As of May in a wide range of activities over the years. Nissan 2012) LEAF, the world’s first mass-produced 100% electric vehicle (EV), has already received numerous awards in • FY11 sales performance : Japan and around the world. Today its technologies • North America: and the philosophy behind it are recognized by many • TIV: 13.19 million units, +8.9% of our customers, and the car is a force propelling the • Sales: 1,080 k units, +11.8% Nissan brand value. • Market share: 8.2%, +0.2 points • thanks to Altima, Rogue and Versa • Nissan LEAF sales: 11 k units
  • 86.
    Competition Financials Nissan Leafhistory: • 2009: Displayed at Tokyo Motor Show • 2010: First Nissan LEAF comes off line at Oppama Plant • 2011: Nissan LEAF; Sales start in Europe • New quick charger unit goes on sale • 2012: LEAF to Home system for powering residences announced • Awards won: 2010 Good Design Gold Award (for Holistic approach to promote zero emission • Vehicle [Nissan LEAF] and zero emission mobility) • 2011 European Car of the Year • 2011 World Car of the Year • 2012 RJC Car of the Year • Car of the Year Japan 2011–2012 • During fiscal 2011, the Nissan LEAF passed the sales milestone to make it the world’s most successful electric vehicle. In total, 23,000 units sold.
  • 87.
    Competition Financials Chevy Volt •According to publicly available data, GM sold 326 Volts in the U.S. in December 2010, 7,671 in 2011, and 16,348 through September 2012. The surge in 2012 is a bit misleading since 35% of the year-to-date sales came in August and September, concurrent with those margin-destroying incentives.
  • 88.
    Share of EVin US 2011 – Edmunds.com • Constraints on Leaf and Volt availability in 2011 support the theory that sluggish sales growth in the EV/PHEV segment stemmed from an issue with supply. Pre-orders made in 2010 claimed the Leafs produced in 2011, leaving only unclaimed pre- orders for consumers who decided to purchase a Leaf during the year. Leaf availability was further limited by Nissan's decision to initially offer Leafs in only select states — still just 30 states by the end of 2011. While Chevrolet did not offer a pre- order program for the Volt, its availability was limited by the roll-out of the Volt in regional "waves," with nationwide availability beginning only in early Fall 2011. Volt sales increased as the roll-out progressed. Volt sales also rose when General Motors released in October 2011 some 2,300 Volts that dealers had been required to keep on display. Both companies have announced higher production for 2012, opening the door for potential growth in EV/PHEV sales if unmet demand does exist.
  • 89.
    EV Car salesin U.S. (csmonitor.com) • Nissan sold just 984 Leafs in the U.S. in • Chevy Volt - This month's[November] September, for a total of 5,212 so far in 2012 total may not quite equal last month's vs. 9,674 in all of 2011. But Chevrolet sold plug-in sales of 6,784. The big 2,851 Volts in September for 16,348 so far unknown, however, is deliveries of the this year, up from 7,671 in all of 2011. Tesla Model S--which Tesla won't discuss. • [November] Sales of the Nissan Leaf battery- • With just a month left in the year, up to electric car rose to 1,539, almost matching 50,000 electric cars are likely to find last month's total of 1,579, and more than buyers during 2012--almost triple the double its November sales of 672 a year ago. 2011 total of about 17,500. November marks only the second time this year that more than 1,000 Leafs have found • This year's sales leader, the Chevy Volt buyers. range-extended electric car, logged 1,519 sales. • That still leaves the Leaf in third place, however, with 8,330 sales so far this • That brings the Volt's total so far this year year. If the December sales keep pace, it will to 20,828, though the November number at least ensure that more Leafs are sold this is barely more than half the October total year than last year's 9,674. of 2,961--a number helped bynow- expired sales incentives.
  • 90.
    Nissan Leat &Chevy Volt sales (goodcarbadcar.net) Nissan LEAF Nissan LEAF Nissan LEAF Chevrolet Volt Chevrolet Volt Chevrolet Volt U.S. Sales 2010 U.S. Sales 2011 U.S. Sales 2012 U.S. Sales 2010 U.S. Sales 2011 U.S. Sales 2012 January ----- 87 676 January ----- 321 603 February ----- 67 478 February ----- 281 1023 March ----- 298 579 March ----- 608 2289 April ----- 573 370 April ----- 493 1462 May ----- 1142 510 May ----- 481 1680 June ----- 1708 535 June ----- 561 1760 July ----- 931 395 July ----- 125 1849 August ----- 1362 685 August ----- 302 2831 Septembe Septembe r ----- 1031 984 r ----- 723 2851 October ----- 849 1579 October ----- 1108 2961 November ----- 672 1539 Novembe December 19 954 r ----- 1139 1519 December 326 1529 Total 19 9674 8330 Total 326 7671 20828
  • 91.
    smart car sales(goodcarbadcar.net) Current smart fortwo sales Estimation for smart electric drive U.S. smart fortwo U.S. smart fortwo U.S. smart fortwo • Based on this information and the Sales Sales Sales sales of the Nissan Leaf and the Month 2010 2011 2012 Chevy Volt we can estimate that the January 278 358 496 smart Electric Drive can reach sales February 442 484 769 March 677 425 999 of 5,000 (10% of the expected 2012 April 680 467 764 EV market). Smart ED is considered May 695 492 703 a strong challenger in the EV June 577 470 1017 market. July 560 327 780 August 448 405 753 September 422 469 1030 • And the fact that the smart brand October 367 327 998 has increased sales over the past November 211 414 704 year then this estimate is realistic. December 570 710 Total 5927 5348 9013
  • 92.
    Nissan Leaf (December,2010) Product: Pure Electric T.A: Niche Sales: -69% Jun12 vs. Jun11 Range: 138 Miles, 99 MPG combined Seats: 5 Passengers Sales: 18.023 units sold in the US through Nov12 – top-selling Plug-in Electric car in the US Plan to launch other models Promotion Focus on Environmental Message: Do not compromise Price: SV: starts at $27.700 and SL: starts at $29,750 Lease: $ 379/month – $2.500 due at signing Place: North America, Japan, Europe, Australia
  • 93.
    Chevrolet Volt (December,2010) Product: Plug in Hybrid Plans to launch Pure Electric T.A: Mainstream Buyers Sales: 28.825 in the US through Nov 2012 x3 H1 2012 vs. 2011 Promotion Focus on Activism Message: Convenience Price: $ 39.995 Place: Europe, China, North America, Japan
  • 94.
    Mitsubishi iMiEV (December,2011) Product: Plans to launch Pure Electric Sports Range: 82 MPS, 75 Miles Power: 47 KW motor and 16 KWH battery Seats: 4 Passengers Sales: 34 units by March 12 Promotion Focus on Fuel Economy Message: Affordability Price: MSRP: $ 29.125 Place: Japan, US
  • 95.
    Fiat 500 Product: Plans tolaunch Pure Electric Production version unveiled in LA Auto Show Retro heritage Expected launch: 2013 Promotion Focus on Attractiveness Price: Approx $32.500 Place: NA
  • 96.
    Toyota Scion iqEV Product: Plans to launch Pure Electric Compact city car Seats: 3 adults (+1 child) Compared to the smart Promotion Tech & Specs Direct attack to smart “ready to outsmart” Price: Approx $17.000 Place: West Cost, Canada
  • 97.
  • 98.
    Analysis of Research- Smart Electric Drive • Primary concerns: Positive comments: • - size - easy and fun to drive • - not at all confident that the car is secure (in case of an accident) - seen as an urban vehicle of joy • - too fragile - a smart choice for the modern man • - image issues (fear they will be laughed at when seen driving a smart car) • Terrible news. My wife was hit by a Smart car. Now she has to pay for a new one. • yeah smart cars, like to see one go on a head on collision with a mack-truck n id like to see who's smart then. • So, the more I look at them, the more I'm ready to trade in my explorer for a Smart ForTwo car, sure, if I get hit in it, I die, and it'll suck in the snow, and its tiny, but 40+ mpg? • I just saw the largest couple get into a smart car poor car i laughed so hard. • No, I will not slow down for a smart car. If it fits in the bed of my truck, it don't belong on the road.
  • 99.
    Analysis of Research– electric car market Primary concerns: • Drove a Mitsubishi i-MiEV today. No wonder people feel so negatively about electric • - poor design cars. • - driving experience & overall feeling => • The Mitsubishi i-MiEV runs on electricity. inappropriate That means the engine is quieter, which means the people laughing at your car will • - small size sound louder • - reluctant to drive one • some ugly cars.... • - image issues (laugh at if seen driving electric • Nissan leaf is the worst looking car ever cars) • The Nissan leaf looks disgusting - don’t trust the numbers -> consider the diesel • Diesel POWER rules ,, electric cars can suck engines a way better option it.. Positive comments: • Just test drove Nissan Leaf (electrical car) - fun to drive and it was AWESOME!!!!! - incredible money savers (monthly gas expenditures) • This is the last thing I'd spend money on!
  • 100.
  • 101.
    Target Audience -Demographics Age 20-35 Adult Live in Well Urban Areas Educated Income SMART Professionals Range: $30k+ BUYER
  • 102.
    Audience Profiling Consumers Sarah media: mostly Always connected No kids digital on her smartphone Multi tasking 30 y.o Well Recycles educated Always Active following person new trends She’s a Sociable blogger Income Newly 80.000 USD married Works for Self NGO confident Lives in the Healthy city lifestyle (Chicago)
  • 103.
    Audience Profiling Seth •24 yearsold •Recent graduate / Young professional •Lives in the city (San Francisco) •Works for a tech start up •Income 45.000 USD (but projected to grow) •Geeky •Ambitious •Tech savvy •Curious about things around him •Hangs out with his friends •Listen to indie rock music •He wants to get the most out of everything
  • 104.
  • 106.
    Bloggers Objectives Strategy Reason Flighting • Engagement • Hire 10 influential • Influential to engage • Blinking Strategy bloggers to create relevant target • During Teaser • During Competition • Increase Awareness buzz for the • 1st Week post launch competition • Buzz worth • During marathon • Increase reach • Maintain contact • PR implication with followers about smartED • Support consumer behavior • Motivate around marathon “Prize” (incentive)
  • 107.
    Facebook Page andAds (Pre & Post Launch) Objectives Strategy Reason Flighting • Awareness • Pre Launch: • Reach & Engage • Pre-launch: • Participation • Interact with the relevant target • Pulsing Strategy • Engagement community on FB (Everyone) around the • Interactivity • Post-Launch: competition • Blinking Strategy • Direct Response • Direct to the • Efficient feedback competition FB page • Increase traffic to: • Leverage on • Pre: Competition • Entertainment marathon incentive FB page • Registration • Post Launch: • Post: SmartED website • Direct to the smartED page • Increase leads • Interactive with target • Hype on marathon.
  • 108.
    Twitter Objectives Strategy Reason Flighting • Awareness • Inform about: • Engage with • Pulsing Strategy • Process of relevant target • Direct to FB page competition • Brand news • Interactivity • Increase traffic • Collect Feedback • Efficient feedback • Reach • Push engagement • Instant contact • Frequency on the FB page
  • 109.
    Online Banners (Pre& Post Launch) Objectives Strategy Reason Flighting •Brand Awareness • Efficiency • Presence on relevant • Pulsing Strategy •Direct traffic to websites •Pre: FB page • Reach •Post: SmartED website •Increase conversion and • Contact with target CR (registration) • Awareness audience through •Increase Leads displays that are: •Inform and educate about • Brand image smartED • Fun • Geek • Engagement • Green • Pinpoint targeting
  • 110.
    Print: Magazines Objectives Reason Flighting • Educate relevant target on • Selective targeting • Blinking Strategy smartED • Safety • Reader involvement • Price • Space • Opportunity for repeat exposure • Features • Customization • Frequency • Frequency • Detailed information • Direct traffic to smartED webpage
  • 111.
    Magazines - Strategy Presence on 3 magazines categories: Geek/Tech Magazines Auto magazines Environmental Magazines MacWorld magazine Wired Magazine Automobile Magazine Car and Driver The environment Magazine Fast Company Magazine Geek magazine (Targeting Young entrepreneurs)
  • 112.
    YouTube Objectives Strategy Reason Flighting • Pulsing Strategy • Engagement • Create different types of • Reach video: • Show smartED in action • Fun • Engaging • Green • Convey Image: • Tech-y • Word of Mouth Green, Tech-y, Fun • Tackle safety, space, price • Buzz worth • Go Viral issue • Entertainment • Same ending, different stories • Upload videos to website & FB
  • 113.
    SEM Objectives Strategy Reason Flighting • Presence where •Google Search Engine • Precise relevant •For P&P Competition •For Campaign • Efficient • Generate qualified •Google Ad Planner clicks to leads • Convenient • Recency Strategy • Increase CTR • Relevant • Direct traffic to • Pinpoint website and FB page
  • 114.
    PR Event (thelaunch) Objectives Strategy Reason Flighting • Attractive to media • One day event • Awareness about: • Host big event • Launch of smartED • green, techy and fun • Creates a buzz • Competition • New image of smart • Invite Media • Detailed information fun, techy, green • Announce • Engagement • Direct Response: • Launch of smartED • Leads online • big winner • Entertainment • Traffic to smartED • Marathon host website • Buzz in green cities • Increase earned media
  • 115.
    Emails Objectives Strategy Reason Flighting • Brand awareness • Database from • Pinpoint Targeting • Recency Strategy registration • Frequent contact with • Engagement acquired prospects • Purchase Relevant List • Reach • Increase responses • Frequency • Increase leads • Inform about smartED • Personalized • Increase CTR • Notifications of process of competition
  • 116.
    Flighting Teasing Competition and Launch Event Post-Launch Marathon Post Launch Continued w1 w2 w3 w4 w5 w6 w7 w8 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Bloggers FB Ads Twitter Online Banners Print Youtube SEM Email PR Event Heavy Medium Light
  • 118.
    Breakdown of Budget Partnership 3% Video Prod Controls 2% Creative 5% Media Spend 10% Infrastructure of P&P Marathon Marathon Media Spend Creative 10% 50% Video Prod Partnership Infrastructure of P&P Monitoring Controls 20%
  • 119.
    Breakdown of MediaSpending PR Event 7% Bloggers Email 6% 5% FB Ads Bloggers 20% FB Ads SEM 12% Twitter Online Banners Print Youtube 5% Youtube Twitter SEM Print 15% Email 10% PR Event Online Banners 20%
  • 121.
    Monitoring controls ofMedia • Circulation • Online Buzz • Reader per copy • Google Analytics Print • Rate Base Bloggers • FeedBurner • # Registered Participants • # Users • # clicks Youtube • AdWords conversion tracking • Landing Page hits • Conversion rate FB Ads • Google Ad Planner • # impressions • CTR • learn with Google SEM • AdRelevance • # Followers • # ‘s Twitter • Open rate • Leads • CTR Email • conversions • Leads • CTR • # earned media • Conversions Online • buzz and WOM Banners • Display ad mouseover PR Event • # of visits to the websites • Display ad interactions
  • 122.
    Digital-SEM Keyword Cost KeyWords Estimated Average Cost Mercedes Smart $ 3.50 Smart Car $ 3.87 Smart Electric Drive $ 3.43 Small cars $ 1.02 Electric Drive $ 1.58 Green Car $ 0.05 Electric Drive $ 2.56 Electric Drives $ 2.06 Mitsubishi EV, Nissan Leaf, $ 2.03 Chevy Volt
  • 123.
    Digital - SEM- Type of Keywords Type of Keywords related to Competition:  Competition Name Terms  Generic Terms  Terms related to Competition (Theme, Riddles, Checkpoints)  Terms related to teasing campaign Flighting Period: Teasing campaign and competition only Type of Keywords of Campaign  Brand Terms  Generic Terms  Singular/Plural Term  Misspelled Terms  Competitive Terms Flighting Period: During whole campaign
  • 124.
    Tackle charging stationsissue – Potential addition Partnership with Parking Lots Consolidated App with

Editor's Notes

  • #4 Objectives:These are 2 clear and distinct objectives----- Meeting Notes (12/13/12 15:16) -----5,000 (10% of the expected 2012 EV market). Smart ED is considered a strong challenger in the EV market.
  • #6 Car Industry – gas prices are fluctuating and have been increasing.Hybrid is pushing advances in the fuel efficiency areaThe fact that the TESLA Model S won car of the year is a testament to how Electric Vehicles are getting recognized among Auto enthusiasts and can compete with ICE vehicles.
  • #7 Point out the Market Leader- Leaf & Volt----- Meeting Notes (12/13/12 15:18) -----Leaf: 8,300Volt; 20,800
  • #10 ----- Meeting Notes (12/13/12 16:11) -----Price, safety,size is not enough
  • #13 Meet seth and sara
  • #15 Change Chicago!!!
  • #16 People have the need to differentiate themselves. We live in a highly demanding world affected by the easiness of slipping into the masses. The fun element is forgotten and eventually we all become one among many. People are bored of that, they want to stand out, express their feelings and change the standards – bringing out their “geekiness”. They want to buy the EV smart car not because they need a car, it is beyond that, they want to buy it in order to make their lives easier, differentiate, express themselves and do the right thing by driving locally while thinking globally.
  • #17 Geeks are the kids we all once used to tease in our school years. Those geeks though are nowadays the CEOs, the innovators and the stock market’s biggest players. The standards of coolness are shifting; it’s cool to act like a geek. Geek is becoming the new cool! The EV Smart Car will allow people’s inner “nerd” to stand out and make a statement with style. Proud to be Geek!
  • #20 The smart EV is the most affordable electric car in the market. It is fun to drive, eco-friendly and has tech perks that you can plug into.
  • #23 Blogger:Hire 10 influential bloggers to createbuzzforthecompetitionMaintain contact with followers about smartED Motivate around marathon “Prize”Why Blogger: Influential to engage relevant target Buzz worthPR implicationSupport consumer behaviorFBPreLaunch:Interact with the community on FB around the competition Direct to the competition FB page Leverage on marathon incentiveWhy FB: Reach & Engagerelevant targetInteractivityEfficient feedbackEntertainmentTwitter:Inform aboutProcess of competition and Brand newsCollect Feedback Push engagement on the FB pageWhy Twitter:Engage with relevant targetInteractivityEfficient feedbackInstant contactOnline Banner:Direct to FB pagePresence on relevant websitesContact with target audience through diplays that are:FunGeekGreen - Relevant websites:Cars, Tech, Green & Environmentally friendly, Travel, News, Entertainments) - Examples of Magazines:Wired.com; Thinkgeek.com ; Mashable.com; Fandango.com; Turntable.fmWhy Online Banner: Efficiency Reach AwarenessBrand imageEngagementPinpoint targeting
  • #24 Launch:FB AppAccessible on mobileBloggers to create buzzRegistrationTo acquire email databaseCity Rep1st riddle sent by mail1st person to solve it and get to the check point is the city rep -
  • #25 FBPreLaunch:Interact with the community on FB around the competition Direct to the competition FB page Leverage on marathon incentiveWhy FB: Reach & Engagerelevant targetInteractivityEfficient feedbackEntertainmentMagazine: Presence on 3 magazines categories:Geek/Tech Magazines: MacWorld, Wired, GeekAuto magazines: Automobile, Car and Driver, Fast CompanyEnvironmental MagazineWhy Magazine: Selective targeting/Reader involvement/Opportunity for repeat exposure/Frequency/Detailed informationSEM: 1. Google Search Engine For P&PCompetition For Campaign 2. Google Ad Planner 3. Monitoring controls:Keyword Search Volume Trends over flighting period smart’s position in the SEType of Keywords related to Competition:Competition Name TermsGeneric TermsTerms related to Competition (Theme, Riddles, Checkpoints)Terms related to teasing campaignWhy SEM:Precise/Efficient/Convenient/Relevant/PinpointYouTube: 1. Create different types of video:FunGreenTech-y 2. Tackle safety, space, price issue 3. Same ending, different stories 4. Upload videos to website & FBWhy YouTube: Reach/Engaging/Word of Mouth/Buzz worth/EntertainmentEmail: 1. Database from registration 2. Purchase Relevent List 3. Inform about smartED 4. Notifications of process of competitionWhy Email: Pinpoint Targeting/Engagement/Reach/Frequency/Personalized
  • #26 PR one day event:1. Host big event:green, techy and fun2. Invite Media3.Announce: Launch of smartED big winner MarathonhostWhy PR: Attractive to media/Creates a buzz/Detailed information/Engagement/Entertainment
  • #27 PR one day event:1. Host big event:green, techy and fun2. Invite Media3.Announce: Launch of smartED big winner MarathonhostWhy PR: Attractive to media/Creates a buzz/Detailed information/Engagement/Entertainment
  • #28 FB Post Launch:Direct to the smartED page Interactive with target Hype on MarathonWhy FB: Reach & Engagerelevant targetInteractivityEfficient feedbackEntertainmentOnline BannerPost:Direct to SmartEDwebsiteWhy Online Banner: Efficiency Reach AwarenessBrand imageEngagementPinpoint targetingSEM: 1. Google Search Engine For P&PCompetition For Campaign 2. Google Ad Planner 3. Monitoring controls:Keyword Search Volume Trends over flighting period smart’s position in the SEType of Keywords related to Competition:Competition Name TermsGeneric TermsTerms related to Competition (Theme, Riddles, Checkpoints)Terms related to teasing campaignWhy SEM:Precise/Efficient/Convenient/Relevant/PinpointYouTube: 1. Create different types of video:FunGreenTech-y 2. Tackle safety, space, price issue 3. Same ending, different stories 4. Upload videos to website & FBWhy YouTube: Reach/Engaging/Word of Mouth/Buzz worth/EntertainmentEmail: 1. Database from registration 2. Purchase Relevent List 3. Inform about smartED 4. Notifications of process of competitionWhy Email: Pinpoint Targeting/Engagement/Reach/Frequency/Personalized
  • #30 Expenditure of 7M-Percentages!!
  • #31 Expenditure of 7M-Percentages!!
  • #110 - Relevant websites:Cars, Tech, Green & Environmentally friendly, Travel, News, Entertainments)- Examples of Magazines:Wired.com; Thinkgeek.com ; Mashable.com; Fandango.com; Turntable.fm
  • #114 Monitoring controls:KeywordSearch Volume Trends over flighting periodsmart’s position in the SEType of Keywords related to Competition:Competition Name TermsGeneric TermsTerms related to Competition (Theme, Riddles, Checkpoints)Terms related to teasing campaignFlighting Period: Teasing campaign and competition onlyType of Keywords of Campaign Brand TermsGeneric TermsSingular/Plural Term Misspelled Terms Competitive Terms Flighting Period: During whole campaign
  • #116 Selects chosen were age (20-35), income ($30k+), live in urban areas.
  • #119 Expenditure of 7M-Percentages!!
  • #120 Expenditure of 7M-Percentages!!
  • #124 Type of Keywords related to Competition:Competition Name TermsGeneric TermsTerms related to Competition (Theme, Riddles, Checkpoints)Terms related to teasing campaignFlighting Period: Teasing campaign and competition onlyType of Keywords of Campaign Brand TermsGeneric TermsSingular/Plural Term Misspelled Terms Competitive Terms Flighting Period: During whole campaign
  • #125 Monitoring Controls