2. Team: theSX  Arthur Anglin  Cy Avila  Sarah Barnes  Davin Green  Juliet Helms  Dailey Hunter  Nathan Reed Consumer Behavior Dr. Donna Kantak Wednesday June 23, 2010

3. Target Segment: Our Recommendation We’ve chosen to target middle to upper middle class teenagers and young adults. This segment is generally in the market for their first vehicle. In most cases, the parents are funding the purchase. This segment is adopting green trends faster than any other segment. They are also encouraging older generations to adopt green trends such as buying hybrid vehicles. -teenfashion.about.com

4. Target Segment: Substantiation Identifiable : Teenagers between the age of 15-20 from upper middle income families who subscribe to sustainable lifestyles or green trends 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 : The teenage market is more predictable in both their spending habits and their exposure to advertising (personal, impersonal) Congruent : Making affordable, attractive, safe, and environmentally responsible vehicles

5. Environmental Factors: Legal/Political Tax Benefits Offset Additional Cost of Hybrid Cars Eligible for up to $2,350 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. http://www.irs.gov/businesses/corporations/article/0,,id=214280,00.html

6. 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.

7. 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.

8. 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

9. 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 (Competition) The SX has the best of both worlds- it’s sexy and smart

10. 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 12,040,437 18 and 19 years 8,179,453 20 years 4,049,448 Age 14 to 175.70% Age 18 to 204.40% $50,000 to $59,9999.00% $60,000 to $74,99910.40% $75,000 to $99,99910.20% -US Census 2000

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

12. 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

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

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

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

16. theSX: Product theSX is almost entirely made up of recycled and recyclable materials theSX utilizes the latest in safety features including: Run flat tires Blind spot detection Rearview camera Rollover prevention/mitigation Emergency brake assist Adaptive headlights LED taillights Emergency response system (ERS)

17. theSX: Product Introducing the Hands Free SX- a fully integrated voice interactive system Entertainment Navigation Communication Fun to drive with impressive acceleration and sport handling

18. 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 plus -LeaseGuide 2010, Consumer Reports 2009

19. 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) http://www.miniusa.com/#/build/configurator/mini-m

20. theSX: Promotion Attractive payment plans for the parents (low interest over a long period of time) Sponsoring high school events (i.e. funding model UN) Raffles at high school football games and local malls Guaranteed greenness (warranties) Creative advertising – Placement of ads in Magazines such as: Popular Science, Sports Illustrated, Seventeen, Cosmo Girl, The YM green blogs Facebook and Google keyword ads towards environmentalists, and our target segment