Professional Documents
Culture Documents
2012
SITUATION ANALYSIS
Level of involvement
Buyers of new cars are typically from the 45-54 age-group (Mintel, 2009). A majority of car owners have positive attitude towards buying electric cars, however the high price is restricting their purchase intentions (Mintel, 2009). Exclusive research by Mintel (2011a) found strongest potential for electric cars are older adults such as ABC1 men and women aged 55+ years. Customers perceive electric cars to be closely competing with hybrid cars. Customers in major urban areas such as London have shown the most interest (Mintel, 2011a). Non-buyers of Electric Cars Interested Segments Medium to highmileage drivers (Mintel, 2009). Early adopters of electric cars are the informed and affluent drivers (Mintel, 2011a). Why are they not buying? Unprepared to pay the premium price (Mintel, 2009). Customers perceive electric cars are more suitable for lower mileage and shorter journeys. Other attitude Concerned with the high fuel costs and environmental issues related to conventional petrol- or dieselfuelled cars (Mintel, 2009). However, a majority of this attracted segments are more interested in the long-term economic benefit of electric cars, rather than environmental issues (Mintel, 2009).
By: Alexandra Stratchan, Atiqah Ismail, Calum McPhee, Mathew Beedham and Yuanlong He
Situational, Internal and External Environment Analyses for BMWi and Electric Vehicles
2012
Why are they not buying? Less concerned with looking for more fuelefficient vehicles.
Other attitude: Lack of awareness about the costand emission-saving benefits of electric cars over petrol and diesel (Mintel, 2009). Current lack of refuelling infrastructure for both electric cars limits its acceptance (Mintel, 2009).
Internal Analysis BMW aims to position BMWi as both fun-to-drive car and to produce no climate-damaging emissions. BMW has 1.5 million names and addresses in its database consisting of (1) new car purchasers, (2) approved-used car purchasers, (3) lapsed customers, and (4) 400, 000 prospects. Currently BMW has 35% customers email penetration. Approximately 15% of customers finance through BMW, 30% finance themselves and 55% pay outright. BMWi will be retailed at 35,000 with a marketing plan budget of 400,000. Its key corporate strategic objective is to establish BMW as the most sustainable car manufacturer (IDM, 2011).
Business Analysis Alternative-fuel cars include electric cars, hybrid cars (petrol-electric) and cars powered by alternative fuels including liquefied petroleum gas (LPG) and compressed natural gas (CNG). Hence BMWi will compete within the alternative fuelled vehicle (AFV) market. It is a growing market, currently with limited competition and offerings. BMWis direct competitors are those solely offering cars with electric batteries with zero-emission, have typically been offered by niche manufacturers (Mintel, 2011a). Its indirect competition is from and lowemission vehicles, such as petrol-electric hybrids cars, currently dominated by Honda, Lexus and Toyota in the UK market (Mintel, 2011a). Competition is reported to be fierce in the UK especially from mini and super-mini cars offering zero or low-emission (Mintel, 2011a).
By: Alexandra Stratchan, Atiqah Ismail, Calum McPhee, Mathew Beedham and Yuanlong He
Situational, Internal and External Environment Analyses for BMWi and Electric Vehicles
2012
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Social
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By: Alexandra Stratchan, Atiqah Ismail, Calum McPhee, Mathew Beedham and Yuanlong He