Environmental Factors: Legal/Political Tax Benefits Offset Additional Cost of Hybrid Cars Eligible for up to $3,400 tax credits Additional Incentives for Buying Hybrid Cars 36 states offer some kind of rebate, incentive or benefit Google is offering $5,000 to each employee toward the purchase of a new hybrid Hybrid Cars Gaining Popularity In 2005, American car dealers sold more than 205,000 hybrid cars and SUVs.

Environmental Factors: Economic The automobile industry has been severely affected by the economy Auto prices are low, so now is a good time to buy Hybrid cars are extremely attractive to the teenage driver, because the parents will pay for the initial cost of the car, but the upkeep cost is minimal.

Environmental Factors: Economic Teenagers have been disproportionally more affected by the disappearance of jobs in the US economy, so now more than ever they are looking to purchase lower priced fuel efficient cars.

Environmental Factors: Societal/Cultural “A new generation of green leaders” EPA program motivates students to come up with innovative solutions to meet today’s pressing environmental challenges “Are environmentalists scaring your kids?” A video circling around schools to explain how America is destroying the planet. Specifically made to appeal to kids, with child like animation “Green generation” The current generation is the first to have grown up entirely in a world confronting global climate change. Surge of Media and Entertainment centered around awareness of environment Day after tomorrow Wall-E

Environmental Factors: Technology/Competition New technology is promoting awareness of environmentally friendly automobile These days research is more geared toward the development of vehicles that will reduce their impact on the environment The new features of hybrid cars are making them more attractive to the traditional car owner and making the transition to owning a hybrid even easier

Target Segment: Our Recommendation Middle to upper middle class high school kids. First car buyers, age: 16-20, parents funding the purchase.

Target Segment: Substantiation Identifiable : Teenagers Stable : There will always be teenagers looking for their first car in the market Sizeable : Encompasses about 3% of US population, approximately 9.2 million people Accessible : Congruent :

Key Traits: Demographics Middle to upper middle high school kids and their parents 50K to 100K household income Encompasses about 3% of US population 15 to 17 years 12,040, and 19 years 8,179, years 4,049,448 Age 14 to % Age 18 to % $50,000 to $59, % $60,000 to $74, % $75,000 to $99, % -US Census 2000

Key Traits: Family American small families with one or few children White collar society Homeowners Place importance on new vehicles

Key Traits: Personality Young environmentalist Financially conservative Image Conscious, borderline Vain Prius owners “buy a Prius because it makes a statement about themselves” Adventurous Demanding and Opinionated Capable of building an argument for parents Academic Trendy Individualist, Following Sustainable Culture Green is Trendy

Key Traits: Attitudes Wants a car that represents them Wants a car that goes with current trends Compatible with technology Green, efficient Highly customizable

Key Traits: Lifestyle Places importance on: Social Acceptance Academics/Intelligence Sustainable Living Outward Appearance “Underground-ness” Activists toward change Stray from Mainstream

Key Traits: Culture/Subculture Culture American Subculture Family Traits White Collar

theSX: Product Product info, Safety features, etc.

theSX: Price The kids want it, the parents want to buy it. Average amount spent on new car for kids ~$15,500 Honda Civic, Scion tC, and Acura TSX some of the most highly recommended and purchased for target segment theSX Price Base: $17,000 Available upgrades including hundreds of accessories, customized by order can increase price up to $25,000 or more -LeaseGuide 2010, Consumer Reports 2009

theSX: Distribution Stand alone showrooms Small showcase of cars, and customers place orders for purchase Both website and showrooms allow for almost limitless customization (i.e. the dell model of distribution)

theSX: Promotion Attractive payment plans for the parents (low interest over a long period of time) Creative/different advertisements (i.e. the hybrid covered in vines LOOK IT UP, commercial where ground consumes Honda) Sponsoring high school events (i.e. funding model UN) Guaranteed greenness (warranties) Placement of ads in national wildlife magazines, and green blogs. Facebook keyword ads towards environmentalists, and our target segment