Environmental Engines

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Environmental Car Dealership Business Plan

Market Analysis Summary

Environmental Engines Toyota Honda GM's customers can be divided into three groups: early-adopters, the younger generation, and cost-conscious-new-automobile-buyers.

  1. Early-adopters. Environmental Engines Toyota Honda GM's first customers will likely be early-adopters. The reason for this is that these people will eagerly seek out the risks in purchasing an automobile that operates on alternative fuels in exchange for the status of being an automobile pioneer. This type of customer will range widely in age but will share an interest in automobile engineering and maintenance. Therefore, these customers will be most easily accessed by advertising in magazines marketed to automobile enthusiasts, engineers, hobbyists, mechanics and scientists. Other members of this customer-group will be attracted by consumer protection reports that have given favorable ratings to our products.
  2. The younger generation. The younger generation will be likely to purchase zero emission automobiles because these automobiles affect their future. These automobiles will not pollute their air or guzzle their gas. The reason for this is that after past generations have ignored the warning signs of global warning, the younger generations are now witnessing the cumulative and destructive effects that carbon-based-fuel systems are having on the environment and global eco-political structures.
  3. Environmentalists. Environmental Engines Toyota Honda GM's customers will also include environmentalists. This category of customer exercises their purchasing power for the obvious environmental benefits and future rewards of zero emissions transportation systems. Therefore, these customers will be most easily accessed by direct marketing campaigns to local conservation groups, outdoors athletic clubs, and environmentally-sensitive political parties.

4.1 Market Segmentation

Early-adopters. Environmental Engines Toyota Honda GM's will be targeting early-adopters who characteristically can be described as: over 28 years of age; either vocational (mechanical education) or higher education (four-year college degree or higher); mechanical or professional occupation earning a higher income (over $50,000); living within the city limits of Ann Arbor or Detroit; attracted by consumer protection reports that have given favorable ratings to our vehicles.

The younger generation. Environmental Engines Toyota Honda GM's will be targeting urban youths between the ages of 14 and 27; who are athletically or academically active; come from upper middle to upper class homes (household incomes over $50,000); tend to make big ticket purchases; and need individual transportation.

Environmentalists. Environmental Engines Toyota Honda GM's will be targeting environmentalists who characteristically can be described as: over twenty-one years of age; higher education (four-year college degree or higher); professional occupation earning a higher income (over $50,000); living within the city limits of Ann Arbor or Detroit; tending to buy organic and eco-friendly products; accessible by direct marketing to local conservation groups, outdoors athletic clubs, and environmentally-sensitive political parties.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Early-adopters 15% 625 719 827 951 1,094 15.02%
The younger generation 100% 365 730 1,460 2,920 5,840 100.00%
Environmentalists 50% 100 150 225 338 507 50.06%
Total 61.64% 1,090 1,599 2,512 4,209 7,441 61.64%

4.2 Target Market Segment Strategy

Environmental Engines Toyota Honda GM's will be targeting early-adopters for four reasons.

  1. Early-adopters will eagerly seek out the risks in purchasing an automobile that operates on alternative fuels in exchange for the status of being an automobile pioneer.
  2. Favorable reviews by these customers will lend credibility to zero emissions vehicles as not only environmentally-friendly, but also as the economically preferable transportation option.
  3. These customers will be most easily accessed by advertising in magazines marketed to automobile enthusiasts, engineers, hobbyists, mechanics and scientists, and through good ratings in consumer protection reports.
  4. The younger generation will be attracted to zero-emissions vehicles once they see early-adopters driving these automobiles around.

Environmental Engines Toyota Honda GM's will be targeting the younger generation for three reasons.

  1. The younger generation is not vested in perpetuating fossil-fuel-based transportation and economic systems and therefore, requires less marketing to demonstrate the advantages of zero-emissions vehicles.
  2. The younger generation will be likely to purchase an automobile of some sort between age sixteen and twenty-one. If the younger generation buys into the former gasoline-based automobile market, there will be more gas-burning vehicles on the road. More gas guzzling vehicles will pollute the air. Therefore, converting the next wave of vehicle consumers to a non-fossil-fuel-dependent form of transportation will more likely achieve Environmental Engines Toyota Honda GM's mission of a zero-emission transportation system nationwide.
  3. Most importantly, investing in the future customer base of the younger generation will ensure exponential increase in Environmental Engines Toyota Honda GM's sales for years to come.

Environmental Engines Toyota Honda GM's will be targeting environmentalists for two reasons.

  1. These people will accept the risks in purchasing an automobile that operates on alternative fuels in exchange for the obvious environmental benefits and future rewards of zero emissions transportation systems.
  2. These customers will be accessible by direct marketing to local conservation groups, outdoors athletic clubs, and environmentally-sensitive political parties.

4.3 Service Business Analysis

Auto sales is one of the largest industries in the world.

The automobile industry is diversified into many large and small sub-groups, each supplied with high concentrations of capital. Many sub-groups enjoy support from classic car and eclectic engineering enthusiasts.

Services are bought and sold upon word-of-mouth recommendations and product image.

Specific competitors in the niche industry of zero emission vehicles will be franchised and supportive of Environmental Engines Toyota Honda GM.

4.3.1 Competition and Buying Patterns

Auto sales is about transportation for the individual. Customers seem to choose their vehicle based on their self image. One automobile maker's success depends on image and trends in one part of the market, and on advertising and word-of-mouth recommendations in another.

Visibility, delivery, reliability, and features are critical. While price is less a factor in this industry than delivery and reliability, materials used by manufacturers in volume must come from reliable sources because the niche industry of zero emission vehicles should not be subject to risky fluctuations in wholesale and subsequently retail values. Features will also be important because our vehicles must be viewed as the highest technology.

Target customers choose between competing vehicles based on brand name image and word-of-mouth. Vehicle performance and image are major factors in developing word-of-mouth recommendations. Customers like that their choice of zero emissions vehicles protects the environment.