The Swatchmobile concept was based on Hayek’s conviction that consumers become emotionally attached to cars just as they do to watches. Whatever target market and positioning students suggest, they should focus on a promotional campaign to communicate to the target market and establish the position. As to branding, students will note that MCC decided not to use either of the well-known Swatch or Mercedes names. MCC will produce the car in Hambach, France. MCC began signing up dealers in with a target of signing up in Europe not including the United Kingdom in the first phase of developing distribution.
A Canadian company, Magna International, starts by welding the structural components, which are then painted by Eisenmann, a German company. Whatever target market and positioning students suggest, they should focus on a promotional campaign to communicate to the target market and establish the position. Company case 8 product and service strategy Swatchmobile: In the meantime, Mercedes watched its sales plummet 11 percent in the early s because of stiff Japanese competition in the luxury car market. Because the Smart Car will have a relatively low price for a new car, MCC will have to convince customers that it offers acceptable quality and reliability for a car.
What are the actual and augmented parts of the products? Will the Smart Car Fly? Whatever target market and positioning students suggest, they should focus on a promotional campaign to communicate to the target market and establish the position. It is probably helpful to ask students if this car fits with the demands of the target market in Europe.
Register Submit to us Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? It has a swatcbmobile in Valencia, Spain that is already producingKa models per year, and it plans to increase capacity. In the meantime, Csae watched its sales plummet 11 percent in the early s because of stiff Japanese competition in the luxury car market. Most were examining cars powered with electric engines.
How about receiving a customized one? These companies wanted to design smaller cars that produced less pollution. This is a diversification strategy in which they use the knowledge of their partner, Mercedes. In the spring ofHayek announced that he had lined up a new joint venture partner.
Dealers will also have to establish two other points where consumers can swatchmobil information about the car, one in an airport or railway station and a second in a shopping center. Although it will give preference to Mercedes dealers, it has also advertised for interested entrepreneurs.
Why or why not? It might also consider offering extended warranties, roadside assistance, etc.
It will be up to consumers to determine whether there is a market for these small cars or whether, like the Ford Edsel in the s, the Smart Car will end up in museums as an example of one more time when car manufacturers missed the market.
View our pricing guide or login to see prices. At a stage in the product life cycle, the sales and share price of the Swatch watch started levelling out; hence Hayek, being a marketer, realising the above fact, started looking into the car market to develop a new and innovative product.
Students will probably be skeptical about the need for this car, and it may be necessary for the instructor to encourage them to examine the marketing strategy and help MCC make it successful. My account New to The Case Centre? In this case study students have to analyse factors such as: Given the plastic panels, they may feel that MCC should narrow the target market and concentrate on young, single people and emphasize fun and funkiness in the positioning.
Why did it make these decisions? Access this item You must be logged in to access preview copies. Go to advanced search. Please find below the full details of the product you clicked a link to view. Because the Smart Car will have a relatively low price for a new car, MCC will have to convince customers that it offers acceptable quality and reliability for a car.
Smart Car Case Analysis by Keleofa Bernard on Prezi
Students will note that the car does not carry the brand name of Swatch or of Mercedes. Its challenge is to produce a car that will meet safety and environmental regulations but be affordable for the target market.
Would consumers really believe that there is such a thing as a cheap Mercedes?
Further, Hayek envisioned a car that emitted almost no pollutants, thanks to its electric engine. However, if students pursue the funky position, they might follow this by arguing for selecting unusual locations for the dealerships in order to emphasize that the Smart Car is different. At full capacity, swatfhmobile plant will employ 2, people and producecars per year.
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