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What is SMART car?
SMART car is suitable for urban life style, because of the compact and small size. It is easy to drive through or to find a parking space. Our main target is upper-middle class especially singles or women who live in a city. We will not promote to families, because it only has two seats. However, we will promote it to a single people or women for their personal use. China has traffic and parking problems, thus this car can attract urban people easily. Furthermore, Chinese young people not only use their car as transportation but also use as to express their personality. Therefore, we will focus on our product as a fashionable and trendy designed vehicle to attract young peoples’ interest.
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About Current Market
Currently, Beijing has USD134.46 million amount market size and shares 16.6% of car sales in China. There are 18million people and more than 65% of labor force. In 2010, 0.92 million of cars were sold only in Beijing. In rough estimation, there were 0.81millions of cars increased in this year if we subtracted the scraped cars. Therefore, we can assume that our possible market size is 0.81 million of smart cars in a year.
Our possible competitor would be Mercedes-Benz, Daimler. Since Daimler released their smart cars much earlier, they already have a certain amount of brand recognition for Beijing citizens. However, their smart cars are still not recognized widely because they do not have enough distribution channels.
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About the Company
SMART car is a microcar which is produced by Daimler in Europe 1997. It is only available for two people but very funnel-saving and easy to find a parking space. The first smart car was released in China at Beijing Auto Show in 2008 by Mercedes-Benz, Daimler. Since 2009 Daimler began to sell their smart cars through dealers to let more people get connected to their products. Although Chinese domestic manufactures have been already selling vehicles similar to smart car, they expand their sales based on its brand.
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Why Do You Choose SMART?
Since Beijing has large population and our Smart car is different from other ordinary cars; the smart car can grab people’s attention easily, therefore, people will also get information by word of mouth. We want to inform the customers that they can benefit from smart car more than ever. To convey this message to the customers, we will show the strengths of Smart car in our propagandas. Our Smart car can save their time in the crowded busy downtown area by its small size, so they do not need to suffer from traffic jams anymore. No more early birds and they can go to work on time. Also, the small size saves the parking spots; basically, two smart cars can share one spot. There are so many styles that you can choose, customers may also DIY their own look. Last but least, low air displacement automobile can save your money and also reduce the air pollution.
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Promotions and Advertisements
Generally, we need a really impressive commercial to let customers know about us. We are going to have commercials on the most popular TV channels for a month which will cost $150000; propagandas in the downtown plazas and shopping malls: let people try the Smart car for free, which will cost $ 6000 and advertisements beside the roads and online will cost $70000. Plus, if you do not like your SMART car anymore; the first one hundred customers could get a chance to exchange a new car for free. We will spend about half a million dollars on advertising and promotion in the first year because most Chinese are not familiar with Smart car. In the 2nd year, we will cut the 20% off the expense and 50% off in the third year.
Parker, Philip M. The 2009 Report on Smart Cars: World Market Segmentation by City. Rep. no. 2369268. MarketRearch.com Academic. Web. 18 Apr. 2011.
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