SPD 4291 Global Marketing

A solution to Brazil’s climate change : MyCar

Group: B02C

Presented by:

Chan Ka Chun Kelvin (13019989S)

Chau Ho Lam Marcus (13006367S)

Cheung Man Chung MC (13020301S)

Tsang Man Chun Gibson (13030080S)

Wong Wai Kin Chris (13610687S)

Yip Yun Cheong (13609260S)

Agenda

Introduction

Country Analysis

Marketing Plan

Product IntroductionMyCar

• The first Hong Kong 100% Electric Vehicle• Belongs to A-segment mini-sized • EuAuto and PolyU• Price: HKD$97,000• Selling place: HK, UK, USA, Austria, France, Manaco

EuAuto• Hong Kong local company orignally• Bought by GreenTech Automotive in 2010

Marketing team of EuAuto • Marketing plan for a new market – Brazil

Political and Legal

Federal Public

Civil Law Anti-Bribery Law

Profit Tax & VAT

Corruption Index in Brazil

High Risk

Corporation tax and VAT

34%

Economic and Financial

Income GDP Big Mac Index

International member

GDP & Income

GDP Growth & Big Mac Index

2014 GDP per capita$12,528

International Member

Culture

Brazilian and religion

Dietary preference

Language and communicatio

n

Context and orientation

Language communication and context

Obscene

Relationship

Competitive Analysis

Michael 5 Forces Model

Market Competitors A-segment electric vehicle in global market

Mercedes Smart ForTwo Toyota IQ EV Honda Fit EV Renault-Nissan Alliance Twizy

They are relatively higher price

Customer Power

Top 5 EV (2013) by Autosaur.com

1. Renault Twizy2. Mercedes Smart

ForTwo3. Mitsubishi I MiEV4. Honda Fit EV5. Ford Focus EV

Supplier Power

The material of MyCar• Fiber Glass• Plastic pipe

Own technology and laboratory• No complex

procedure

Own factory in• USA• China

Threat of New Entrants

Entry barriers

Threat of Substitutes

Competitive AdvantageForce Competitiveness

Influence

Market competitors

Customer Power

Supplier Power

Threat of new entrants

Threat of substitutes

Marketing Objectives

Create 10% brand awareness

Gain 5% market share

Sale volume: 1000 units of Mycar

Target Customers Business to Business

1. Industry: Business, government, institutionBusiness: Golf club, hotelGovernment: Country park, theme park, airportInstitution: University

2. Types of buying situation: New task

3. Purchase criteria used by the customers: Quality sensitive

Target Customers Business to Customer:

• Convenience

• User status: potential users, non-users, regulars, first-timers, and users of competitors’ products

• Lifestyle : Young couple and married without child

oriented; environmental

conscious

• Income : Middle Income & High Income

Demographic

Psychographic

BenefitBehavioral

PositioningGlobal Consumer Culture Positioning

(GCCP)

Mycar Identify the brand as a symbol High-tech product

PositioningPositioning map

High Price

features

Low Price

Who are going to JV?

Match in

vision

Brazilian

local

Established

factory

Industry expertis

e

More benefits on JV

Low cost

Separate liability

Branding

Flexible

Combine strengths

Separate liability

A JV is an individual business entity that our

parent company bear limited liability and

impact

Branding

Introduce MyCar under JV can enjoy brand equity of

TAC and helps in image building

FlexibleThe period of collaboration can be adjusted according to the market environment

Combine strengths

TAC: local knowledge, automaker, network

MyCar: technology, innovation, insights

Low cost

Import tax in vehicle parts (16%) is much lower

than import an assembled vehicle (35%)

Solving challenges of JV

Aims not met

- Revise operation mode- Risk management- Contingency approach- Dissolution

Loss of control

- Equal share of

equity- Be the role of parts

supplier-Maintain your

competitive

advantage

Lack of past experience

- Select company with JV

history

- Not to invest big lump-sum

at beginning

- Seek consultant as a

mediator

Different management style

- Focus on meeting goal- Build cohesion and

consistency in team

working- Establish dialogue and

collect feedback- Make necessary

adaptationRisks &

Challenges

Key: Proactive

ProductDual adaption strategy

Rio de Janeiro : large city with many roads and highways

High temperature in tropical region

Basic features of Mycar

Upgraded air conditioner

Maximum speed : 140 km/h

Seven colorsSmall size

Product Modified and upgraded technology

Portable power system

A spare battery + Home battery charger Home charging fully recharged in 5 hours after-sales services

Solar Battery Charging System

stable sunshine hours a panel on car roof Convert solar energy to high voltage

Rio de Janeiro

Patent Right

Labeling

• Brand• Rate of VRT payable• Annual motor tax payable• Model• Dimension, • Output,• Charging time,• Range per charge, etc.

Consumer goods

Green and blue color

Five-year warranty

Product

Price

Prices competitive1

USP : low price2

BRL$42378 (HK$150,000) 3

Assist expansion 4

Flexible Cost-plus pricing strategy

Price

Emphasize the high quality and unique functionality

Europe Certification (NCAP)Innovative features of MycarB2B consumers

Primary goal : SAFETY

PROFITABILITY

PriceB2B consumersB2B consumers

Golf clubs, government, airports, theme parks, country parks

Bulk order discount : 10% Off

Value for moneyMycar

PlaceDirect selling alternative (door-to-door selling for B2B) High interactive with handle inquiry from customer Keep control of

Distribution strategy Costs (Avoid middlemen markups)

Market Expansion strategyChannel alternative (Joint Venture) Difficult-to-enter market High culturally distant

Distribution channel

Customer service center (B2B and B2C) Locate in Rio de Janeiro Order, trial, purchase and after sell service

Manufacturer (TAC auto)

• Sale force (TAC auto and EU automotive ) /

• customer service center

User: Business partners/

Customers

Promotion

Targeting Business-to-business market marketing tools: 1. Personal selling2. Sale promotion3. Sponsorship

Combination with B2B and B2C4. Social media (Facebook) 5. Tradition advertising

Objective: Short-term goal Build up My-car’s awareness in B2C & B2B and

make sales Long-term goal Establish and maintain the B2B relationship

Endorser

Neymar:-Famous Brazilian

football player-playing for FC Barcelona now

Integrated with Dual adaption strategy

Neymar high recognition and

positive image in Brazil:

-Better to catch attention

-Benefit our new entry business in Brazil

Business-to-business

Personal selling

Face-to-face communication

• Direct inform and persuade tool

• Tailored message and response immediately

Sale force nationality – Expatriates

• loyal and knowledgeable staff

• Demonstrate the benefit of My-car

Business-to-businessSale promotion (Trade promotion)

Join automobile trade show

EG: The 28th São Paulo International Automobile Show

2014

Introduce My-Car

Reach potential customers

Special offer

Adds tangible value to high volume paid

customer

Non-price promotion

Eg: Attain 10 units of My-car-> Free addition 2-years

warranty package

Business-to-businessEvent sponsorship

• High media exposureWorldwide

sport event

• Higher opportunity to expose Mycar

• Create awareness

Provide Mycar to the

outdoor venues

Combination of B-2-B and B-2-CSocial media Create a Facebook official page

High reach • Targeting both potential business and

individual customers

Large information • Regular update information

• eg: specifications of and the review

• If individual customers are interested MyCar• To provide contact information of the customer service center

Combination of B-2-B and B-2-CTraditional advertising

Billboards and car magazine ad (brand building)

Maintain the exposure in media

Neymar appear in all version

-THE END-THANKYOU!