Since the initial conception, the designers have abandoned the electric engine, because of the lack of adequate batteries, in favor of a small gasoline engine. They will also suggest that it is a homogeneous shopping product in that economy cars are similar enough in quality that price becomes an important criterion. How about receiving a customized one? MCC began signing up dealers in with a target of signing up in Europe not including the United Kingdom in the first phase of developing distribution. Into which consumer product classification does the Smart Car fall? Ford believes that tiny cars will eventually account for about one-third of the market. At a stage in the product life cycle, the sales and share price of the Swatch watch started levelling out; hence Hayek, being a marketer, realising the above fact, started looking into the car market to develop a new and innovative product.
In the meantime, Mercedes watched its sales plummet 11 percent in the early s because of stiff Japanese competition in the luxury car market. I prefer suffering on my own. His automotive vision was dismissed as being overly optimistic; less ambitious attempts at extending the Swatch brand name to new categories, including a brightly colored unisex clothing line, had flopped. The instructor may wish to note that Honda, Toyota, and Nissan all used new brand names. The Case Centre is a not-for-profit company limited by guarantee, registered in England No and entered in the Register of Charities No Because consumers purchase cars less frequently, they often have less knowledge about what cars are available and what the features and benefits of competitive models are. In addition, many car companies were beginning to work on concepts for smaller cars.
They conceived a two-seater car that would combine the safety features of a Mercedes with the funkiness of a Swatch watch. Why or why not?
There are lots of small cars, as noted in the case. Dealers will also have to establish two other points where consumers can get information about the car, one in an airport or railway station and a second in a shopping center.
Why did it make these decisions? However, we might edit this sample to provide you with a plagiarism-free paper.
The case indicates that MCC is targeting childless, dual-income couples in urban areas who want a second car, and single people aged The unlikely marriage is also the result of market realities. Students will probably react very negatively to the concept of a car with plastic sides. The value in the car may be in its image as a fun, different way to travel as much as it is in the car itself.
Students will suggest that the core product, what MCC is really selling, is inexpensive, basic personal transportation. Its challenge is to produce a car that will meet safety and environmental regulations but be affordable for the target market. Hi there, would you like to get such a paper?
Nicolas Hayek, the man who led Swatch to its success, initially owned 49 percent of the new company and Mercedes owned 51 percent. The second phase of distribution will cover the United Kingdom, and the United States and other right-hand-drive countries.
The Swatchmobile concept was based on Hayek’s conviction that consumers become emotionally attached to cars just as they do to watches. They will also suggest that it is a homogeneous shopping product in that economy cars are similar enough in quality that price becomes an important criterion. Swatch, following its success in watches, was searching for something else on which to put its name.
The text discusses product quality as the first attribute. I prefer suffering on my own.
Please, specify your valid email address. Students will note that the car does not carry the brand name of Swatch or of Mercedes.
Swatcumobile might also consider offering extended warranties, roadside assistance, etc. Because the Smart Car will have a relatively low price for a new car, MCC will have to convince customers that it offers acceptable quality and reliability for a car. Students may suggest that although Swatch and Mercedes have not put their names on the car, why not promote the fact that this car is the unlikely product of this unusual combination.
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Smart Car Case Analysis by Keleofa Bernard on Prezi
These companies are chasing Renault, which introduced its Twingo model minicar in and swtchmobile sellinga year, about 2 percent of the West European car market. What are the actual and augmented parts of the products? We can assume that the product, price, and place elements are relatively fixed at this time.
This fits with the contrarian positioning.
The Swatchmobile: Any Colour Combination, Including Black | The Case Centre, for educators
The franchise agreement is much like a fast-food franchise in that there are tight restrictions on showroom design and customer service, and dealers who violate provisions in the agreement can lose their franchise quickly. Students will suggest that the Smart Car, like other cars, should be classified as a shopping product. Perhaps it could be positioned as a fun, funky first car for the young person who wants to express his independence.
Whatever target market and positioning students stuudy, they should focus on a promotional campaign to communicate to the target market stydy establish the position.