Environmental Factors:

Legal/Political

• Tax Benefits Offset Additional Cost of Hybrid Cars• Eligible for up to $3,400 tax credits

• Additional Incentives for Buying Hybrid Cars• 36 states offer some kind of rebate, incentive or

benefit• Google is offering $5,000 to each employee toward

the purchase of a new hybrid

• Hybrid Cars Gaining Popularity• In 2005, American car dealers sold more than

205,000 hybrid cars and SUVs.

Environmental Factors:

Economic

• The automobile industry has been severely affected by the economy

• Auto prices are low, so now is a good time to buy• Hybrid cars are extremely attractive to the teenage

driver, because the parents will pay for the initial cost of the car, but the upkeep cost is minimal.

Environmental Factors:

Economic

Teenagers have been disproportionally more affected by the disappearance of jobs in the US economy, so now more than ever they are looking to purchase lower priced fuel efficient cars.

Environmental Factors:

Societal/Cultural

•“A new generation of green leaders”• EPA program motivates students to come up with innovative

solutions to meet today’s pressing environmental challenges•“Are environmentalists scaring your kids?”• A video circling around schools to explain how America is

destroying the planet. • Specifically made to appeal to kids, with child like animation•“Green generation”• The current generation is the first to have grown up entirely in a

world confronting global climate change.•Surge of Media and Entertainment centered around awareness of environment• Day after tomorrow• Wall-E

Environmental Factors:

Technology/Competition

• New technology is promoting awareness of environmentally friendly automobile

• These days research is more geared toward the development of vehicles that will reduce their impact on the environment

• The new features of hybrid cars are making them more attractive to the traditional car owner and making the transition to owning a hybrid even easier

Target Segment:

Our Recommendation

Middle to upper middle class high school kids.

First car buyers, age: 16-20, parents funding the purchase.

Target Segment:

Substantiation

• Identifiable: Teenagers

• Stable: There will always be teenagers looking for their first car in the market

• Sizeable: Encompasses about 3% of US population, approximately 9.2 million people

• Accessible:

• Congruent:

Key Traits:

Demographics

• Middle to upper middle high school kids and their parents• 50K to 100K household income• Encompasses about 3% of US population

15 to 17 years12,040,437

18 and 19 years8,179,453

20 years4,049,448

Age 14 to 17

5.70%

Age 18 to 20

4.40%

$50,000 to $59,999

9.00%

$60,000 to $74,999

10.40%

$75,000 to $99,999

10.20%-US Census 2000

Key Traits:

Family

• American small families with one or few children• White collar society

• Homeowners• Place importance on new vehicles

Key Traits:

Personality• Young environmentalist• Financially conservative• Image Conscious, borderline Vain

• Prius owners “buy a Prius because it makes a statement about themselves”

• Adventurous• Demanding and Opinionated

• Capable of building an argument for parents• Academic• Trendy

• Individualist, Following Sustainable Culture• Green is Trendy

Key Traits:

Attitudes• Wants a car that represents them

• Wants a car that goes with current trends• Compatible with technology• Green, efficient• Highly customizable

Key Traits:

Lifestyle• Places importance on:

• Social Acceptance• Academics/Intelligence• Sustainable Living• Outward Appearance• “Underground-ness”

• Activists toward change• Stray from Mainstream

Key Traits:

Culture/Subculture• Culture

• American• Subculture

• Family Traits• White Collar

theSX:

Product• Product info, Safety features, etc.

theSX:

Price• The kids want it, the parents want to buy it.

• Average amount spent on new car for kids• ~$15,500• Honda Civic, Scion tC, and Acura TSX some of the

most highly recommended and purchased for target segment

• theSX Price• Base: $17,000• Available upgrades including hundreds of accessories,

customized by order can increase price up to $25,000 or more

-LeaseGuide 2010, Consumer Reports 2009

theSX:

Distribution• Stand alone showrooms • Small showcase of cars, and customers place orders for

purchase• Both website and showrooms allow for almost limitless

customization (i.e. the dell model of distribution)

• http://www.miniusa.com/#/build/configurator/mini-m

theSX:

Promotion• Attractive payment plans for the parents (low interest

over a long period of time)• Creative/different advertisements (i.e. the hybrid

covered in vines LOOK IT UP, commercial where ground consumes Honda)

• Sponsoring high school events (i.e. funding model UN)• Guaranteed greenness (warranties)• Placement of ads in national wildlife magazines, and

green blogs. Facebook keyword ads towards environmentalists, and our target segment