Marketing Plan Hybrid Car Essay

HONDA MOTORS hereby launches the all current family Honda EC CRV, the new eco fri nullifyly elevator cable car that makes an some early(a)(prenominal)s go unfledged with envy for Oxygen is priceless. Save the earth, objectt life a tree because their is no satellite B all you got to do is induce a Honda EC CRV. Introduction For the blueprint of this assignment, I will choose crossbreed automobiles that run on gasoline as well as alternate(a) fuel i. e. Electricity. The rising fuel prices and increasing melodic line out pollution along with depleting resources of fossil fuels is forcing more than and more automobile companies to manufacture loan-blend vehicles.Moreover, volume atomic number 18 increasingly buying these environment friendly and cost good crossbreeding vehicles in many countries most the world. check to ( crown of thornscar. com, p. 1), crossbreeding- galvanising vehicles (HEV) combine the benefits of gasoline locomotives and electrical re pulses to provide improved fuel economy. The locomotive engine provides most of the vehicles power, and the electric motor provides enlargeitional power when needed, such(prenominal) as for accelerating and passing this allows a smaller, more-efficient engine to be used. The current crossbreedings on the marketplace do not cod to be plugged in to an electric outlet to recharge.The hybridization Car marketplace The market for the hybrid car is slow nurtureing that primarily led by the U. S. and Japanese Markets. In the past five-spot years, sales for the hybrid in the U. S. outgrowth from 9,500 in 2000 to 100,000 in 2004. By the end of 2005, the number of hybrid cars in the U. S. change magnitude to 212,000, accounting for 1. 3 portion of the resume U. S. light-vehicle market. J. D. index estimate the hybrid car market will account for 3. 5% of the U. S. market by the year 2010, whereas, other(a) researchers such as ABI Research & adenine Automotive Technology Researc h theme give a more sanguine projection for the market.These researchers estimated the hybrid market perceptivity between 5-6% of the overall U. S. light-vehicle market. check to a forecast by J. D. Power-LMC Automotive call Services, by the year 2012 hybrids that accounted for 0. 5 percent of the U. S. market in 2005 atomic number 18 evaluate to gain 3. 5 percent of the U. S. market. The JD Power cut acrosss say that the price bountifulness associated with alternative power train vehicles continues to be a barring factor that will prune the potential for both(prenominal) hybrid vehicles.The report notes that manufacturers will have to constrain this premium to attract buyers who atomic number 18 not presently motivated to purchase these vehicles as a means to improve the environment, or as a means to save funds by consuming less fuel. quick Product Research The Prius, cleverness, and civic were the initiative set of hybrids. These vehicles utilized the core sche me of a smaller engine which provides on demand power from the electric motor and batteries. A smaller engine is star of key attributes of hybrids to gaining better fuel economy.The newer hybridsthe distribute, Lexus SUV, and alpinemaintain the size of the gas engine, and add power by way of the electric components which does little to boost fuel efficiency. According to (Larson, 2005), while the hybrids ask to fame is reduced fuel consumption, there are various factors that will reduce the surgery takes of these vehicles. Such factors include acceleration, idle time, air conditioning, temperature, and driving speed. Competitive Scenario It has been noted that Honda and Toyota are the pioneers in the hybrid car market now.According to JD Power, However, they are becoming more commonplace due to licensing of their technologies by other Japanese and American companies, and the new effort towards hybrid SUVs. The Toyota Prius, considered a midsize sedan, is the number-one selli ng hybrid vehicle. Toyota has sold more Priuses than all other hybrids combinedand for good reason. Since the second representative of the Prius was introduced in 2003 (as a 2004 model), this midsize sedan has have numerous awards. Today, it continues to be a straighten out seller. The success and tremendous rise in Toyota hybrid sales can be partly attributed to the companys merchandise campaigns. Most hybrids recognized increasing gains severally year, with the exceptions of the Accord mark and the Lexus RX400h.Sales of both models have decreased during the past year, conclusion perhaps that todays hybrid buyers demand a noticeable proceeds in fuel economy when buying a hybrid model ( loanblendcar. com). emblematic profile of hybrid car buyers Hybrid car drivers have a level of education high than any mathematical group of car drivers that Ive ever seen, says Walter McManus, theatre director of the Office for the Study of Automotive dose at the University of Michigan. McManus further describes these drivers They have higher income, than the aver term car buyer at approximately $100,000 a year versus $85,000 a year for the fairish buyer.They are more likely to be female. Hybrid drivers are a few years old(a) than the average car buyer nigher to fifty rather than the average age of forty. California strongly outpaces all other states for new hybrid vehicle registrations. beyond these demographics, McManus describes the profile of hybrid car drivers in terms of their behavior and attitudes They drive on average fewer miles than the average car buyer Hybrid car drivers plan to keep their car longer than the average person They are willing to take over more for an environmentally friendly product. They personally want to do something to help reduce vehicle pollution.They expect fuel prices to grow a lot faster than other people do. McManus adds, It doesnt mean that theyre right. It does not mean that the other people are right. But theyre ofttim es more pessimistic about the future tense of fuel prices than the average person. Price According to research, Hybrid cars and SUVs prices rake from an estimated $19,000 to almost $55,000 for the basic models. The lowest price range for this type of car is the manual contagion 2006 Insight at an MSRP of $19,330, whereas the Lexus hybrid shoot a line sedan, the GS 450h is the highest at $54,900.The following table summarizes average prices of the hybrid cars Hybrid City mpg Hwy mpg MSRP(in USD) Honda Insight -Manual 60 66 $19,530 Honda Insight -CVT 57 56 $21,530 Toyota Prius 60 51 $21,725 Honda Civic Hybrid 49 51 $21,850 Honda Accord Hybrid 29 37 $30,140 Toyota Camry Hybrid 40 38 $25,900 pass over avoidance Hybrid 2WD 36 31 $27,515 Ford Escape Hybrid 4WD 33 29 $29,140 Mercury Mariner Hybrid 33 29 $29,225 Toyota Highlander Hybrid 2WD 33 28 $33,030 Toyota Highlander Hybrid 4WD 31 27 $34,430 Lexus RX 400h 31 27 $49,060.