Free Essay

Hybrid Jeep Project

In:

Submitted By joeonhisway
Words 778
Pages 4
Market Summary

For many Americans, Sport Utility Vehicles (SUVs) have grown to replace mini vans or station wagons as the prevalent family car. This industry has faltered recently with the emergence of Crossovers, which combine aspects of cars and SUVs, as well as because of increased government emissions regulations and increased environmental consciousness. SUVs have become synonymous with low fuel economy and high emissions. Still, SUVs maintain an important market presence for buyers searching for vehicles that combine luxury and comfort with utility. In particular, the Jeep brand of Chrysler Group LLC has a significant presence in the market as a result of being dependable and refined as well as rugged. In order to expand the market presence of the brand, Jeep will move forward with the creation of a hybrid Jeep. The desirability of the Jeep brand will be increased while also maintaining the core values that Jeep aficionados have come to expect.

Target Market

The new hybrid Jeep will be marketed towards current Jeep and SUV owners. In addition, the hybrid Jeep market will be expanded to buyers concerned with the environmental impact of their automobile purchase. With rising gas prices, it will be important to focus on a market of buyers looking for increased fuel economy. This may include drivers with a long commute, drivers and their families looking to save money, or drivers looking for a more spacious vehicle without a large price tag over the long term. The hybrid Jeep will continue to be marketed towards consumers looking for a rugged and reliable SUV with four wheel drive capabilities. Jeep will be able to meet the needs of consumers looking for an SUV with a refined appearance, comfort, and utility. Drivers looking to purchase a vehicle that is safe and reliable may also look to the Jeep hybrid. The new Jeep hybrid will also meet the needs of consumers looking for cutting edge technology and connectivity. Finally, the Jeep hybrid will meet the demands of consumers looking to purchase a vehicle with an individual price and presentation, since the Jeep with be marketed with different models, customizable trims and paint options, and a wide range of available upgrades.

Target Demographic

Traditionally, the majority of Jeeps have been purchased by men in their forties. (DeMuro, 2013) These consumers tend to be married with a college degree and an income of around $100,000. (Ingram, 2013) Jeep drivers are viewed as being outdoorsmen and have reported interests in skiing, hiking, hunting, and other social and action oriented activities. (Ingram, 2013) Smaller, two door Jeeps, are sought by younger consumers without children, who still reported interest in the outdoors. (Ingram, 2013)

Market Needs

This is currently a growing market with few available hybrid SUVs. The SUV market currently has a focus on diesel powered vehicles, though there is a growing positive perception of hybrid automobiles. Additionally, the hybrid SUVs available on the market have a price tag greater than $40,000 (DeMuro, 2013), which dissuades many drivers from upgrading to the hybrid models.

SWOT Analysis

Strengths * The Jeep brand already has a strong consumer base to expand upon and there is already anticipation for the release of a hybrid Jeep. * Jeep is backed by both Chrysler Group LLC and Fiat S.p.A. * The fuel saving capabilities of a hybrid is currently a strong selling point. * A hybrid vehicle will help Jeep to meet new emissions regulations.

Weaknesses * Consumers looking for a reliable off road vehicle could be dissuaded by a hybrid vehicle with an electric motor and battery that may affect off road capabilities. * A hybrid vehicle might incorporate a higher price tag that Jeep drivers will be disinclined towards paying. * A hybrid Jeep will need a good range to meet the current expectations of consumers.

Opportunities * With a hybrid vehicle, Jeep can enter a new market of environmentally conscious consumers. * A hybrid Jeep may attract consumers that previously avoided SUVs because of the low fuel economy. * Overall, the hybrid market is a growing market with increased interest from consumers.

Threats * There is already existing competition from the few hybrid SUVs in the market. * Hybrid SUVs may not be considered cost effective when compared to smaller hybrid models that are on the market. * Current negative perceptions of SUVs may keep consumers away.

References

Ingram, A. (2013, December 17). Jeep Hybrids Coming, But Concern Over 'Getting You Home' Retrieved September 25, 2014, from http://www.greencarreports.com/news/1089164_jeep-hybrids-coming-but-concern-over-getting-you-home

DeMuro, D. (2013, May 28). We, The People, Want Hybrid SUVs. Retrieved September 25, 2014, from http://www.thetruthaboutcars.com/2013/05/we-the-people-want-hybrid-suvs/

Similar Documents

Premium Essay

Greenhouse Gases and Public Transportation: a Solution to Warming

...dioxide, is a gas that is trapped in the atmosphere. They are key factors in the Greenhouse Effect, a warming process. Automobiles and transportation are one of the leading sources of GHG emissions following industrial production, both of which rely on the combustion of fossil fuels for power. Carbon dioxide is the main gas that is released from burning fossil fuels such as petroleum. The problem with gas emissions released by industrial production is hard to cap, however, the problem involving the amount of carbon emissions released can be significantly reduced by cutting back on the amount of individual driving. This is important because transportation is one factor in the warming process that we can control. Many assume that buying a hybrid is a solution to the warming problem. While this is helpful it is not a large enough solution to make a major impact. One way to help cut-backs significantly is to increase and expand on public transportation while making it more efficient and safer for the environment. This would result in fewer combustion vehicles on the road, and an overall reduction in GHG emission. There are a few different types of GHGs that are harmful to the atmosphere. The main greenhouse gases are carbon dioxide, methane, and nitrous oxide. The GHGs methane and nitrous oxide are not very relevant in the combustion of fossil fuels through transportation. Carbon dioxide or CO2, is the main GHG released through transportation. CO2 is the gas which receives...

Words: 2368 - Pages: 10

Free Essay

Chrysler Tqm

...Term project Operation Management CHRYSLER: [pic] Total Quality Management Submitted to Dr. Chafik Abid CONTENTS -Introduction…………………………………………………. -Chrysler Total Quality management………………………. -Chrysler SWOT Analysis…………………………………… -Chrysler service Quality…………………………………….. -Chrysler service and dealership Problems (Middle East)… -Chrysler Service solution……………………………………. -Conclusion……………………………………………………. -Work Cited…………………………………………………… INTRODUCTION: DaimlerChrysler AG with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. As it can be seen above that the integration of the two different companies with similar line of production makes the company stronger, reliable, and caters the best for its customer needs and satisfactions. As a result, we chose this company to discuss further on its Total Quality Management and other related issues. Total Quality Management is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge...

Words: 2668 - Pages: 11

Premium Essay

Buss 499 - Chrysler

...& Associates found that almost 60% of consumers go to the internet before buying a car. They went one step further and found out that 88% of those consumers went to an auto website before stepping foot at a dealership. Technology as also affect the way companies now build cars. With so many concerns as to wear the economy and environment will be in the next 20 years, they now have to find way to make sure they are two steps ahead when the times change. Companies at first were concerned about the cost of making a technology effect car and also the safety factors in the cars, but do to changes in government a new wave of cars had to come around. This is where the electric car now comes into play. In 2001, Toyota and Honda began selling hybrid cars. This technology has expanded now to electric cars running on charging stations and no gas. With this technology and progressive thinking companies will be sure to integrate more technology into the cars they...

Words: 2551 - Pages: 11

Premium Essay

Cutting Ties with Petroleum

...If we choose not to continue these programs, we will see consistently rising prices at the gas pump, and ever shrinking wallets. Yes, alternative fuel vehicles are more expensive, however, look at what we pay now for vehicles and the fuel we put into those vehicles. Last year alone, I spent approximately $5,200 on fuel for my Jeep Commander and $2,000 on my Eagle Talon. That is $7,200 that could be coupled with government incentives and tax credits to purchase a “green vehicle.” Over the past few years, many different groups of people have started to look for an alternative fuel to use instead of petroleum due to its decreasing abundance and increasing pollution. Many different options have arisen for alternative fuel use, each having its own strengths and weaknesses. Currently all major automakers have projects under way to develop a reliable and sustainable alternative fuel, each having its own direction or focus for which alternative fuel to use. The fuel choice focus for each company ranges from hybrid and pure electric vehicles to hydrogen powered engines in Europe. Electric vehicles offer some hope to the alternative fuel market because hybrid electric vehicles (HEVs) combine the internal combustion engine of a conventional vehicle with the battery and electric motor of an electric vehicle, resulting in twice the fuel economy of conventional vehicles. The Japanese hope the range of their...

Words: 927 - Pages: 4

Premium Essay

Electirc Car

...Timeline: History of the Electric Car 1832-1839 Scottish inventor Robert Anderson invents the first crude electric carriage powered by non-rechargeable primary cells. 1835 American Thomas Davenport is credited with building the first practicalelectric vehicle -- a small locomotive. 1859 French physicist Gaston Planté invents the rechargeable lead-acid storage battery. In 1881, his countryman Camille Faure will improve the storage battery's ability to supply current and invent the basic lead-acid battery used in automobiles. 1891 William Morrison of Des Moines, Iowa builds the first successful electric automobile in the United States. Thomas Edison and an electric car. Courtesy of the Smithsonian 1893 A handful of different makes and models of electric cars are exhibited in Chicago. 1897 The first electric taxis hit the streets of New York City early in the year. The Pope Manufacturing Company of Connecticut becomes the first large-scale American electric automobile manufacturer. 1899 Believing that electricity will run autos in the future, Thomas Alva Edison begins his mission to create a long-lasting, powerful battery for commercial automobiles. Though his research yields some improvements to the alkaline battery, he ultimately abandons his quest a decade later. 1900 The electric automobile is in its heyday. Of the 4,192 cars produced in the United States 28 percent are powered by electricity, and electric autos represent about one-third of all...

Words: 1824 - Pages: 8

Premium Essay

Formula

...Introduction to Toyota 19-20 3.2 Toyota History and Development 20-23 3.3 The Macro-environment 24-29 3.4 Organizations within the industry 30-31 3.5 Strengths and weaknesses of Toyota 32 3.6 References 33 4.0 Comparison between brand #1 and brand #2 34-35 1.3 Acknowledgements This assignment has been done for our subject Fundamentals of Marketing (BM101), at UCSI University. At this time we would like to acknowledge the advice and support of our lecturer Ms. Nazliwati Mohammad. We also acknowledge that some of the material for this assignment has been derived from other sources, all of which are included in our respective references. All group members have worked effectively and cohesively in this project and share equal contribution. 1.4 Summary/Abstract In this assignment we will be analysing two different car manufacturers. The brands we have chosen are Mercedes Benz and Toyota. In this report we will be presenting the brands’ history and development, the macro environment affecting them, and their organizations within industry inclusive of the marketing position, target markets and the marketing mix. At the end of the report a comparison is given between the two brands. Mercedes-Benz is one of the world’s oldest automotive brand still in existence today. Mercedes-Benz has built an outstanding reputation of quality and exclusivity throughout its product lines. It is a globally recognized...

Words: 9079 - Pages: 37

Premium Essay

The Change of American Auto Industry

...The change of American automobile industry Bing Bai St. Thomas University Feb 20, 2013 Author Note Bing Bai, Department of Business, St. Thomas University This research was supported in part by a grant from the BUS 673 management writing & reporting class. Correspondence concerning this article should be addressed to Bing Bai, Department of Business, St. Thomas University, 16401 NW 37th Avenue, Miami Gardens, FL 33054 Contact: b0771276@stu.edu Introduction 2009, by the impact of the economic downturn in North America, the auto market is also showing a downward trend, the U.S. auto market, sales reached bottom in recent years, a decline of more than 20%. With the slow recovery of the economy in North America, as well as various stimulus policies play a role, so that the downward trend in remission. In 2010, total sales of U.S. automotive (car, SUV, MPV, pickup truck) reached 11,590,274, an increase of 11% year-on-year, U.S. vehicle sales remained year-on-year growth of 11% in January-July 2011. Undergo the shrinking of automobile market, although the United States rely on to curb the momentum of a sharp decline in the automotive market policy factors to a certain extent, the government "TM" subsidies just one pin short-term cardiac and unable to drive the stable recovery of the automotive market. The decline of the Big Three, but also to the...

Words: 4504 - Pages: 19

Premium Essay

Toyota Case Study

...Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. It originally started as a subsidiary of his father’s company Toyoda Industries. The first vehicle, the Toyota AA, was produced in 1936 even the company was still associated with Toyoda. The brand was established as an independent company in 1937 and changed their name to Toyota. The change of its name was implemented to signify a separation of work and home, to simplify the pronunciation and because it only took 8 brush strokes (which is considered lucky) to write in Japanese. Toyota opened their first factory in 1938 but it had to be cease production during World War II. In 1950 the Toyota Motor Sales Company was established and the company began production on the BJ Toyota Jeep, the BX truck and the SG small truck. In 1956 the Toyopet chain was established. The first vehicle to be sold under this name was the Toyopet SA. The product line was discontinued in the 1960s due to negative connotations with the words toy and pet. During the 1960s Toyota opened a new research and development facility as well as establishing a prominent presence in Thailand. During this time Toyota also celebrated the production of its 10 millionth model. In 1982 the Toyota Motor Sales and Toyota Motor Company formed a merger to become one company, the Toyota Motor Corporation. Following this the company entered into a joint venture with General Motors called the New United Motor Manufacturing Incorporated or NUMMI. Toyota operated a manufacturing...

Words: 2837 - Pages: 12

Premium Essay

Hyundai

...Marketing Project Table of Contents 1.0 Executive Summary ...................................................................................................................................... 2 2.0 Situation Analysis .......................................................................................................................................... 3 2.1 Market Summary ....................................................................................................................................... 4 2.1.1 Market Demographics ......................................................................................................................... 7 2.1.2 Market Needs ....................................................................................................................................... 12 2.1.3 Market Trends...................................................................................................................................... 13 2.1.4 Market Growth ..................................................................................................................................... 16 2.2 Competition .............................................................................................................................................. 18 2.3 SWOT Analysis ............................................................................................................................................. 23 2.3.1 Strengths ....................

Words: 9662 - Pages: 39

Premium Essay

Oil Price Hike

...PUJ versus AUV Rivalry of Development and Survival In and Out of the Road The Case of Transport Industry in Metro Manila Philippines Candy Lim Chiu, MBA, Kyoto University, Kyoto, Japan Hiromi Shioji, D. Econ, Kyoto University, Kyoto, Japan ABSTRACT The Public Utility Jeepney (PUJ) industry’s days are numbered despite the fact that it is an epitome of Philippine ingenuity on hybrid vehicle, cheap transportation, means of livelihood and employment generator that spans more than 50 years as the King of the Road. Its detour in the Philippine economy continue to be challenge by factors such as indirect government support, environmental issues, social demands, economic crisis, transport competition and entrance of substitution of Asian Utility Vehicle (AUV) that collide from all direction living the industry in jeopardy. This paper examines the similarities, differences and trends of transport business and industry in the Philippines concentrating to two major rival mode namely PUJ and AUV where it present diverse lessons to be shared for future studies of transportation business and industry around the globe. Ultimately, it aims to make recommendation on measures of ensuring a level of playing field between the players with the existence of substantial economic potential, industry improvement and concrete policy instrument. INTRODUCTION From downtown city of Metro Manila famously overcrowded public utility vehicles (PUV) headed by the legendary Public...

Words: 10276 - Pages: 42

Premium Essay

China Auto Sector Policy 2012

...China’s Auto Sector Development and Policies: Issues and Implications Rachel Tang Analyst in Asian Affairs June 25, 2012 Congressional Research Service 7-5700 www.crs.gov R40924 CRS Report for Congress Prepared for Members and Committees of Congress China’s Auto Sector Development and Policies: Issues and Implications Summary The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who...

Words: 19818 - Pages: 80

Premium Essay

Chevrolet: Green Marketing to the Youth Market

...Group Marketing Plan Project Final Project Chevrolet: Green Marketing to the Youth Market October 10, 2013 This paper was prepared for BUS 300, Marketing. Chevrolet: Green Marketing to the Youth Market Chevrolet, which is referred to as Chevy, was founded in the early Twentieth Century. Chevrolet produces American cars and is sold by most automotive markets worldwide. After Chevrolet’s inception they were then bought over by General Motors. The Chevrolet products that are introduced to the market are aimed to adapt to the American consumer, and the consumer’s ever changing social changes and the consumer’s values and trends. With that said Chevrolet has invented a green car that adapts to the world’s trend of “going green”. A green car is a motor vehicle that produces less harmful impacts to the environment than the regular car that consumers have been used to. A green vehicle can be powered alternative fuels, which essentially decreases the pollutants that are exerted into our environment. There are several options for purchasing a green vehicle they are electric and fuel cell-powered, hybrid, and compressed air. Chevrolet’s has many loyal customers however; Chevrolet wants to focus on more of the younger population to buy their green cars. In specific Chevrolet wants to market to the Gen Y generation, which has been identified as the younger generation that are of 18-30 years old. In the 21st Century our world is always changing. There are new trends appearing...

Words: 3925 - Pages: 16

Premium Essay

Porters

...industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at 3% per annum, further surge in demand was anticipated from Chinese market. A booming economy and a low interest regime helped India to make its mark in the automobile sector in 2004, with sales figures exceeding more than 1 million in the passenger car segment for the first time. The sale of commercial vehicles showed a record growth of 29% over 2003. Foreign auto-makers such as Mercedes Benz,...

Words: 12500 - Pages: 50

Premium Essay

Marketing Strategies of Jk Tyres

...requirement of B. Com(h) III Year. It is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes. KARAN ARORA ROLL NO. 336 SECTION - A UNDER THE GUIDANCE OF: MRS. NEHA AGGARWAL MR. PANKAJ KUMAR (FACULTY OF COLLEGE) Student signature ACKNOWLEDGEMENT It is indeed a moment of immense gratification for me to express my deepest gratitude to Mr. Harmeet Singh Kohli, (Marketing Manager Central Zone) for providing me with an opportunity to carry out this project study and help me create this report on “Marketing Strategies of JK Tyres". I am grateful to him for forecasting an excellent academic ambience, without which the project would not have been fulfilled. I express my sincere gratitude to my project guide for his guidance and supervision during the development of this project and making it a reality. With deep sense of gratitude I acknowledge the encouragement and guidance received by guide MRS.NEHA AGARWAL and co-mentor MR.PANKAJ KUMAR. Last but not the least I would like to thank...

Words: 13677 - Pages: 55

Free Essay

Marketing

...policies * Information about marketing * Vision and mission 2. SUBJECT TAKEN FOR SIP * Introduction Making of Mahindra scorpio Product training Mahindra scorpio mhawk * Objectives * Methodology * conclusion ACKNOWLEDGEMENT I take this as an opportunity to express my regards to Mr.Vishal ghute (Workshop Manager) who helped me to undertake this project. It was a great experience to have practical knowledge, which would not have been possible without his help. I obliged to Mr. Rajendra Shiralekar (Team Leader) & Miss. Preeti Malao (Showroom Consultant) for providing me support and help whenever I needed. They gave me the opportunity to attend the various training program and seminar which are held in Amravati for giving the product knowledge and market knowledge. I am deeply grateful to each one who helped me directly or indirectly in completion of this project. Thank you Gaurav P. Koshti MBA (2009-11) 1. Profile...

Words: 4979 - Pages: 20