Case 1: Segmenting and Targeting the Electric Car Market Essays

987 Words Jan 30th, 2013 4 Pages
The North American electric car market is at the ferment stage of development. Google “electric car” and you will get many start-ups with their design and plans to “make” the market. The big auto companies have their planned models and so do numerous venture capital start-ups. They all seem to be about 2-3 years away from launching their products. The problem is battery range and power. With today’s technology, a small, low cost mass produced eCar would have a range of about 80 miles on a charge and a top speed of 60 miles an hour. This is considered not good enough for the market that is used to gasoline cars with top speeds of 100+ and with a range of 300+ miles. The eCar has to get a lot better before it is viable. That is the …show more content…
You may as well be with them right from the beginning rather than face them as impossibly low priced imitators, in 5-10 years. The plan would be to bring the American eCar version down to $6,000 - $8,000 in 5 years, and the World eCar version down to $3,000 in five years (see the Module 7 Case on pricing the eCar).

But to really find out what features such a car needs you would test 100 such prototypes with a friendly headquarters of a company where managers are given the car free for three months. The onboard GPS computer tracks its use over three months. Inexpensively lease GPS devices to other managers to log their daily driving so they can learn what electric car range they need. The electronics also allow users to call up a number and describe what they like and do not like about the car. Each of the 100 prototypes might cost $30,000 to equip and run. One hundred investors are sought who will each own one of the original prototypes as security on their investment. They get all the private inside information from the field tests and first refusal rights on further investment ... exercising options. If the venture succeeds, the prototypes will become valuable collector cars that the original investors can keep or sell at a premium. If not, at least the investors have an electric car, something for their money. The acid test is how many of the original

Related Documents