1. 2015 Yonsei - Shibaura Joint MOT Seminar 1. Analysis on Current Marketing Strategies of EV 2. Marketing Strategy Proposals Based on EV Market Outlook Presenters: Juheon Park, Insu Song Engineering Technology Management, Graduate School of Engineering, Yonsei University Professor: Yongu Ji (Ph.D) Engineering Technology Management, Graduate School of Engineering, Yonsei University

2. Marketing Strategy Proposals Based on EV Market Outlook Insu Song Engineering Technology Management, Graduate School of Engineering, Yonsei University

3. Abstract ​ Though the technology of electric vehicle or electric battery are not dramatically devel oped within 21 century, electric vehicles has been expected to grow all over the world. ICV is commonly accepted by market for performance as personal moving method. M arket requirement on EV is still limited but slowly increased. Since the global needs of electric vehicle are associated with complex relation of American automobile market, environmental issue, urbanization, energy policy. Global EV OEM company marketing s trategy has specific target market based on this sense. Acronyms EV: Electric Vehicle OEM : Original equipment manufacturer ICE or ICV: Internal Combustion Engine or Internal Combustion Engine Vehicle

4. Topics to Discuss  To check current market status of EVs Technical development of EV through 21c Background check for spotlight of EV  To discuss effective methods of EV marketing Reinforcing loop Balancing loop Consideration of marketing strategy in EV

5. Google trends “Electric car” Here's 5,000 pounds - go buy an electric car GM says electric car Chevy volt to get 230 mile per gallon in city Panasonic invests $30M in electric car maker Tesla Interest of global market for “EV” No Boom up Moderate all time Throughout the 21 century

6. General Performance of EV $71,10 0 $42,40 0 $27,49 5 $24,60 0 $26,99 0 $29,17 0 Cost CPES 1185 2255 1309 1025 1533 1268 Cost Per Energy Storage $1430 / 1kWh 4~7 Hours for full charge

7. Efficiency of EV 5 Liter13kW Driving range 100km 1 min 5~6 hr ICVEV Limitation cannot be easily overcome. Not a technology of miracle but, a technology for big city life

8. Why? Spotlight for EV. No huge technical development. Technical level from 2000 to 2015 is stable Driving range for 1kW is 8km. Full charge time : approx. 8 hours Quick charge (30min charge for Tesla) is an emergency method. Quick charge shorten the battery life One thing developed is volume decrease of battery

9. Electric vehicle as fastest and strong solution for regulation Restriction force for competitor OEM in the states Government support Fuel efficiency CO2 emission limitation Total emission regulation 1. America and environment Electric vehicle as Countermeasure Global crisis of American automobile companies in 2009

10. Not performance, Environment lead Requirement (No ICV motor bike in China metro city) 2. Urbanization People live in metro over Mil. 1800 : 3% Current : 50% 2030 : 60~70% Fast growth of developing country. 170 cities over million in China (2012) Solution for Transportation & Environment = EV (BEV, PHEV) Even though Only “Tank to Tire” stage, No gas emission at all.

11. Difference in energy policy 3. Energy by country Electricity generation with Coal Japan 27% America 49% China 79% India 69% China can generate 80% electricity only with coal. Separate urban / suburban environment with politics Generation in suburban and restriction of gas emission. Clean city with BEV / PHEV vehicle.

12. BMW i – market strategy

13. BMW i – market strategy Key words EV can’t be profitable unless supported by the proper range of services. First private customers might be restricted Induction charging … open the door More promising to start on the Fleet side Car sharing programs…TCM (Total Cost of Mobility) The ceiling of new passenger car sales will soon be reached

14. TESLA – high end marketing There are no Tesla dealers There are no commissioned sales people Tesla cars are marketed and not aggressively sold Tesla transactions are conducted online The price is the price: no negotiation There is no inventory: the Tesla Model S is built to order You can’t test drive a Tesla unless you put down a $5,000 deposit In many parts of the country, you can’t see or drive the car before you buy even if you place a deposit You have to wait in line for months or years to get a car Tesla Model S and Tesla Roadster: Tesla has figured out how to market an electric car Tesla is creatively using marketing to upend the auto industry business model:

15. TESLA – high end marketing Start with a great product Start high and work your way down Turn auto industry strengths into weaknesses Create a new multi- channel model Build the community & focus on the experience Leverage the media and traditional press

16. Conclusion Barriers to purchase EV Driving range / charging time Less affordable price Insufficient charging infrastructure Cause of spotlight Crisis of automobile companies – as alternative plan Environmental issue Urbanization Energy strategy Strategy of BMWi Fleet customer / Private customer Strategy of Tesla High end marketing Marketing strategy of EV in Korea? Japan? Regarding - Industry power, Energy policy, Environmental regulation, Urbanization - Target customer Fleet / Private - Target value Low end / High end - Government policy