lets go electric case mid-term exam

8/7/2019 Lets go electric case mid-term exam

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School of Economics and Management /HES

Decentral group project exam Marketing Management 2Based on Armstrong and Kotler, Marketing an Introduction, 2011 Chapter 1-14 excluding Ch. 4 and 11

Codes: MM2VP1ES03 and MM2VP1FA03

Deadline: April 8th 2011 Time: Received by your lecturer no later than 17:00 hoursAlso: a hard copy in her/his HES mailbox no later than April 12 th

The decentral exams consists of 15 questions in section APlus the setup of the marketing plan in section B

Section A

Case related Questions:

The de-central exams has questions A & B.

The A questions are knowledge questions. You will find all the answers in the theory.

Inadequate answering of these knowledge questions will directly lead to adisqualification for the total de-central exam. It means you will have to redo the wholeexam next semester based on another case.

For this de-central exam you may and should use your theory book as this de-centralexam is an open book exam.

Be aware that at the central exam at the end of the semester will not be an openbook exam. At that time you should know the theory by heart.

The B questions are Insight questions based on the applied theory on one hand andthe information derived from the case on the other hand.

The 15 B questions will account for 60% of your de-central grade

Inconsistencies between answers in the B questions and solutions in the marketing planwill not be tolerated.

All Case related questions on the next pages

DECENTRAL EXAM MM2VP1ES03/1FA03 TEST 1 DUE DATE APRIL 8th 17.00 Hrs1
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Section BBelonging to the decentral exam caseSetting up the marketing plan

Chapter 2 table 2.2 Page 84 of Amstrong and Kotler gives the set up of the marketing plan.Make the marketing plan for based on the case data and page 84.(exhibit on the next page)

The plan has to be specific. It will cover the period of one fiscal year being 1 July 2011until 30 June 2012. (So, no long-term shots aimed at eternity)

It is a marketing plan and not a broad business case/plan. Be specific.That means that your objectives will focus on turnover or market share. (So you do nothave to make calculations on R0I, shareholders value, cost per share, Ebita etc.

Its better to have a market than a mill. Instead of doing a copy/paste job from thewebsite of a company, focus on the market: the customers and the competition

You will have to find additional information not only from internet but also from ourHes/HVA library at least two sources from that library should be referred to and quoted properlywith a footnote.

Less is more. The maximum length is 20 pages (exclusive of cover/index/summary). Beto the point; but do not dwell on a point.o Do not tell us what you think, but show us what you know. We are not looking for

pictures or fancy charts unless they directly relate to the text in your case and are adequatelyexplained, they will be considered as filler and points deducted. So give the facts, analysethem, and draw your conclusions and write the report.

This is a group effort and not a sum of individual efforts without sufficient control.Problems and solutions should be discussed, processed and solved by the group. Severeinconsistencies between the solutions in the questions and the solutions in and within the plan

will directly lead to the qualification Bad Grade 3. The same applies for; Any statement that starts with I think that (I does not play a part in a group

report) and

Any report that consists of a mixed bag of typographies and layout styles

From start to finish, this report must be consistent in all aspects.

The B section will account for 40% of your de-central grade

Due dates

To be completed and delivered digitally by email attachment to your lecturers hva emailaddress before Friday April 8th close of business 17.00 hours (late is too late). Sendonly 1 email only per group clearly marked with class number, and including all fullnames and student numbers.Also: send/place one hard copy in his or her snail mail post box on the 1st floor - no laterthan Tuesday 12th April (black and white will do). Names and numbers must be onreport.

Moreover be prepared to do a presentation on the plan (not the questions) and presentit with your group in class.



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MARKETING AN INTRODUCTION 10TH EDITION, PART 1, CHAPTER 2, PAGE 86



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Lets go electric



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If you think that the electrical car is something of the last decade, you are definitely wrong,Between 1832 and 1839 (the exact year is uncertain), Robert Anderson of Scotland inventedthe first crude electric carriage., and in 1835 Professor Stratingh of Groningen, Hollanddesigned a small-scale electric car. Around 1842 both American Thomas Davenport andScotsmen Robert Davidson invented practical and more successful electric road vehicles.Frenchmen Camille Faure improved the storage battery in 1881. This improved-capacitystorage battery paved the way for electric vehicles to flourish.

France and Great Britain were the first nations to support the widespread development ofelectric vehicles in the late 1800s. In 1899, a Belgian built electric racing car called "LaJamais Contente" set a world record for land speed - 68 mph - designed by Camille Jnatzy.

In 1897, the first commercial application was established as a fleet of New YorkCitytaxisbuilt by the Electric Carriage and Wagon Company ofPhiladelphia.

The early electric vehicles, such as the 1902 Wood's Phaeton ,were little more than electrified horseless carriages and surreys.The Phaeton had a range of 18 miles, a top speed of 14 mph andcost $2,000. The Phaeton was named after a Greek god. WhenPhaeton obtains his father's promise to drive the sun chariot asproof, he fails to control it and the Earth is in danger ofburning up when Phaeton is killed by a thunderbolt from Zeusto prevent further disaster. In terms of branding the namePhaeton seems to be associated with failure. The early electricPhaeton was not a long term success More than 90 years laterVolkswagen launched its top limousine under the Phaeton name,

I did not sell well. May be Zeus still has a hand in it.

In 1916, Woods invented a hybrid car that had both an internal combustion engine and anelectric motor.

The initiation of mass production of internal combustion engine vehicles byHenry Ford madethese vehicles widely available and affordable in the $500 to $1,000 price range. By contrast,the price of the less efficiently produced electric vehicles continued to rise. In 1914, an electricroadster sold for $1,750, while a gasoline car sold for $650. That was the end of the era of theelectrical cars . Now roughly a hundred years later The electrical car is ready for a gloriouscomeback . Before that lets have an overview on the history of automotive land and someiconic car stories

The birth the automobile

The New York Times' mention of the name automobile in 1897 was the first public use of theterm by the media and helped to popularize that name for motor vehicles. However, thecredit for the name automobile goes to a 14th Century Italian painter and engineer namedMartini. Martini thought up the name automobile from the Greek word, "auto," (meaningself) and the Latin word, "mobils," (meaning moving). The other popular name for anautomobile is the car. The word car is derived from Celtic word "carrus," (meaning cart orwagon).

German Engineering

http://inventors.about.com/gi/dynamic/offsite.htm?site=http://www.chem.rug.nl/stratingh/home/main-stratingh.htmlhttp://inventors.about.com/library/inventors/bltaxi.htmhttp://inventors.about.com/library/inventors/bltaxi.htmhttp://en.wikipedia.org/wiki/Zeushttp://inventors.about.com/library/inventors/blford.htmhttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://inventors.about.com/library/inventors/bltaxi.htmhttp://en.wikipedia.org/wiki/Zeushttp://inventors.about.com/library/inventors/blford.htmhttp://inventors.about.com/gi/dynamic/offsite.htm?site=http://www.chem.rug.nl/stratingh/home/main-stratingh.html


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The history of cars is inevitably connected to three German Engineers Nicolaus August Otto,Karl Benz, and Gottlieb Daimler. Nicolaus Otto

One of the mostimportant landmarks in engine design comes from Nicolaus August Otto who in 1876invented an effective gas motor engine. Otto built the first practical four-stroke internalcombustion engine called the "Otto Cycle Engine," and as soon as he had completed hisengine, he built it into a motorcycle. Otto's contributions were very historically significant, itwas his four-stoke engine that was universally adopted for all liquid-fuelled automobilesgoing forward. Karl BenzIn 1885, German mechanical engineer, Karl Benz designed and built the world's firstpractical automobile to be powered by an internal-combustion engine. On January 29, 1886,Benz received the first patent (DRP No. 37435) for a gas-fuelled car. It was a three-wheeler;Benz built his first four-wheeled car in 1891. Benz & Cie., the company started by theinventor, became the world's largest manufacturer of automobiles by 1900. Benz was the firstinventor to integrate an internal combustion engine with a chassis - designing both together.

Gottlieb Daimler

In 1885, Gottlieb Daimler (together with hisdesign partner Wilhelm Maybach) took Otto'sinternal combustion engine a step further andpatented what is generally recognized as theprototype of the modern gas engine. Daimler'sconnection to Otto was a direct one; Daimlerworked as technical director of DeutzGasmotorenfabrik, which Nikolaus Otto co-owned in 1872. Daimler and Benz merged in 1926but the two men never met. The Mercedes brandwas named after the daughter of the earlyDaimler distributor Emil Jelinek, the great

-grandfather of drs. Peter Jelinek who teaches atthe HES.

Engine design and car design were integral activities, almost all of the engine designersmentioned above also designed cars, and a few went on to become major manufacturers ofautomobiles. All of these inventors and more made notable improvements in the evolutionof the internal combustion vehicles.Other famous German engineers were Rudof Diesel and Felix Wankel. Diesel invented in1892 the diesel engine, that has the highest thermal efficiencyof any regular internal orexternal combustion engine due to its very high compression ratio. Widespread usage ofdiesel engine in personal cars took of in the 1970ties after the oil crisis.Wankel received his

first patent for the rotary engine in 1929. Further developed in theearly 1950s at NSU Motorenwerke AG, the predecessor of Audi, NSUlicensed the concept to companies around the world, which havecontinued to improve the design. The most extensive automotive useof the Wankel engine has been by the Japanese companyMazda for isRX sports wagons . Mazda became the first and only Japanese carmanufacturer to win the prestigious 24 Hours of Le Mans enduranceraceusing the Wankel rotary engine.The Ford EmpireHenry Ford 1

http://en.wikipedia.org/wiki/Thermal_efficiencyhttp://en.wikipedia.org/wiki/Internal_combustionhttp://en.wikipedia.org/wiki/External_combustionhttp://en.wikipedia.org/wiki/Compression_ratiohttp://en.wikipedia.org/wiki/NSU_Motorenwerke_AGhttp://en.wikipedia.org/wiki/Mazdahttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://en.wikipedia.org/wiki/Thermal_efficiencyhttp://en.wikipedia.org/wiki/Internal_combustionhttp://en.wikipedia.org/wiki/External_combustionhttp://en.wikipedia.org/wiki/Compression_ratiohttp://en.wikipedia.org/wiki/NSU_Motorenwerke_AGhttp://en.wikipedia.org/wiki/Mazda


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Henry Ford 1(1863-1947) invented an improved assembly line and installed the first conveyorbelt-based assembly line in his car factory in Ford's Highland Park, Michigan plant, around1913. Ford revolutionized manufacturing. By 1914, his Highland Park, Michigan plant, usinginnovative production techniques, could turn out a complete chassis every 93 minutes. Thiswas a stunning improvement over the earlier production time of 728 minutes. Using aconstantly moving assembly line, subdivision of labor, and careful coordination ofoperations, Ford realized huge gains in productivity. In 1914, Ford began paying hisemployees five dollars a day, nearly doubling the wages offered by other manufacturers. Hecut the workday from nine to eight hours in order to convert the factory to a three-shiftworkday. Ford's mass-production techniques would eventually allow for the manufacture of aModel T every 24 seconds. His innovations made him an international celebrity. Ford madehis first car, called the "Quadricycle", in June 1896. However, real success came after he

formed the Ford MotorCompany in 1903. This wasthe third car manufacturingcompany formed to producethe cars he designed. Heintroduced the Model T in1908 and it was a success.After installing the movingassembly lines in his factoryin 1913, Ford became theworld's biggest carmanufacturer. By 1927, 15million Model Ts had beenmanufactured.

Ford T model: you canhave it in any colour, as

long it is black

Ford's affordable Model T irrevocably altered American society. As more Americans ownedcars, urbanization patterns changed. The United States saw the growth of suburbia, thecreation of a national highway system, and a population entranced with the possibility ofgoing anywhere anytime. Ford witnessed many of these changes during his lifetime, all thewhile personally longing for the agrarian lifestyle of his youth. In the years prior to his deathon April 7, 1947, Ford sponsored the restoration of an idyllic rural town called GreenfieldVillage.

Edsel ford

In the early thirties Henrys son Edsel took over the company. As president, Edsel Ford oftendisagreed with his father on major decisions, and was occasionally humiliated in public bythe older man. The relationship between the father and son was always close but also alwaysfraught with unhealthy aspects, However Edsel managed to introduce many lasting changes.He founded and named the Mercurydivision. He was responsible for the Lincoln Zephyr andLincoln Continental. He significantly strengthened Ford Motors' overseas production, and heworked to modernize the company's cars, such as by the introduction ofhydraulic brakes.Edsel Ford died in 1943 at the age of 49. His father, Henry, resumed the presidency of thecompany. Henry Ford II succeeded his grandfather as president of Ford on September 21,1945

http://inventors.about.com/library/weekly/aacarsassemblya.htm#fordhttp://en.wikipedia.org/wiki/Mercury_(automobile)http://en.wikipedia.org/wiki/Lincoln-Zephyrhttp://en.wikipedia.org/wiki/Lincoln_Continentalhttp://en.wikipedia.org/wiki/Hydraulic_brakehttp://en.wikipedia.org/wiki/Henry_Ford_IIhttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://inventors.about.com/library/weekly/aacarsassemblya.htm#fordhttp://en.wikipedia.org/wiki/Mercury_(automobile)http://en.wikipedia.org/wiki/Lincoln-Zephyrhttp://en.wikipedia.org/wiki/Lincoln_Continentalhttp://en.wikipedia.org/wiki/Hydraulic_brakehttp://en.wikipedia.org/wiki/Henry_Ford_II


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Henry Ford II

Henry Ford II commonly known as "HF2" and "Hank the Deuce", was the son ofEdsel Fordwas president of the Ford Motor Companyfrom 1945 to 1960, chairman and chief executiveofficer (CEO) from 1960 to 1979,

When his father Edsel,died in May 1943 Henry Ford II was serving in the navy, and was thusunable to take over the presidency of the family-owned business. The elderly and ailingHenry Ford, company founder, decided to assume the presidency. By this point in his life, hewas mentally inconsistent, suspicious, and generally no longer fit for such a job; most of thedirectors did not want to see him as president. But for the previous 20 years, although he hadlong been without any official executive title, he had always had de facto control over thecompany; the board and the management had never seriously defied him, and this momentwas not different. The directors elected him and he served until the end of the war. Duringthis period the company began to decline, losing over $10 million a month.

Henry Ford II left the Navy in July 1943 and joined the company's management a few weeks

later. After 2 years, he took over the presidency of the company on September 21, 1945. Sinceit had been assumed that Edsel Ford would continue in his capacity as president of thecompany for much longer than turned out to actually be the case, Henry Ford II had receivedlittle grooming for the position, and he took over the company during a chaotic period; itsEuropean factories had suffered a great deal of damage during the war, and domestic saleswere also in decline.

Henry Ford II immediately adopted an aggressive management style. One of his first acts ascompany president was to fire Harry Bennett, head of the Ford Service Department, who hadoriginally been hired by Henry Ford to stifle attempts at unionization. Next, acknowledginghis inexperience, he hired several seasoned executives to support him. He hired formerGeneral Motors executives Ernest Breech and Lewis Crusoe away from the BendixCorporation. Breech was to serve in the coming years as HF2's business mentor, and theBreechCrusoe team would form the core of Ford's business expertise, offering much-neededexperience.

Additionally, HF2 hired ten young up-and-comers, known as the "Whiz Kids". These ten,gleaned from an Army Air Forces statistical team, HF2 envisioned as giving the company theability to innovate and stay current with the times. Two of them, Arjay Miller and RobertMcNamara, would go on to serve as president of Ford themselves. A third member, J.Edward Lundy, served in key financial roles for several decades and helped to establish FordFinance's reputation as one of the best Finance organizations in the world. As a team, the"whiz kids" are probably best remembered as the design team for the 1949 Ford, which they

took from concept to production in nineteen months, and which re-established Ford as aformidable automotive company. It was reported that 100,000 orders for this car were takenthe day it was introduced to the market.

The Edsel

In September, 1957, Ford Motor Company unveiled a new brand of cars called the Edsel Thecompany had so many trust in the model that they named it after Henries Father. In theirefforts to make the car better than ever, development took to long , it became over featured,and over priced so it entered the non Ford price bracket where the of Mercury brand was

http://en.wikipedia.org/wiki/Henry_Ford_IIhttp://en.wikipedia.org/wiki/Edsel_Fordhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Edsel_Fordhttp://en.wikipedia.org/wiki/United_States_Navyhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Harry_Bennetthttp://en.wikipedia.org/wiki/Unionizationhttp://en.wikipedia.org/wiki/General_Motors_Corporationhttp://en.wikipedia.org/wiki/Ernest_Breechhttp://en.wikipedia.org/wiki/Bendix_Corporationhttp://en.wikipedia.org/wiki/Bendix_Corporationhttp://en.wikipedia.org/wiki/Whiz_Kids_(Ford)http://en.wikipedia.org/wiki/Army_Air_Forceshttp://en.wikipedia.org/wiki/Robert_McNamarahttp://en.wikipedia.org/wiki/Robert_McNamarahttp://en.wikipedia.org/wiki/J._Edward_Lundyhttp://en.wikipedia.org/wiki/J._Edward_Lundyhttp://en.wikipedia.org/wiki/1949_Fordhttp://en.wikipedia.org/wiki/Edselhttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://en.wikipedia.org/wiki/Henry_Ford_IIhttp://en.wikipedia.org/wiki/Edsel_Fordhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Edsel_Fordhttp://en.wikipedia.org/wiki/United_States_Navyhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Harry_Bennetthttp://en.wikipedia.org/wiki/Unionizationhttp://en.wikipedia.org/wiki/General_Motors_Corporationhttp://en.wikipedia.org/wiki/Ernest_Breechhttp://en.wikipedia.org/wiki/Bendix_Corporationhttp://en.wikipedia.org/wiki/Bendix_Corporationhttp://en.wikipedia.org/wiki/Whiz_Kids_(Ford)http://en.wikipedia.org/wiki/Army_Air_Forceshttp://en.wikipedia.org/wiki/Robert_McNamarahttp://en.wikipedia.org/wiki/Robert_McNamarahttp://en.wikipedia.org/wiki/J._Edward_Lundyhttp://en.wikipedia.org/wiki/J._Edward_Lundyhttp://en.wikipedia.org/wiki/1949_Fordhttp://en.wikipedia.org/wiki/Edsel


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positioned. Than in the late fifties America was hit by a recession, making the Edsel evenmore superfluous .

The Edsel is remembered as a significant commercial failure, although the car soldmoderately well in its first year. The Edsel brand was discontinued soon after the 1960models were introduced.

The company became a publicly traded corporation under his leadership in 1956. When heresigned the presidency, he became CEO of the company. On July 13, 1960 he wasadditionally elected Chairman; he resigned as CEO on October 1, 1979, and as Chairman in1980. His nephew, William Clay Ford, Jr. would later assume these positions after 20 years ofnon-Ford family management of the company.

Upon the release of the CVCC engine byHonda Motor Company, Ford's then-President LeeIacocca was highly interested in adopting the new engine in a small Ford vehicle, possibly thePinto or Fiesta- perhaps even going as far to sell the Honda Civic as a Ford. The plan wasscuttled by Henry Ford II, who stated: "No car with my name on the hood is going to have aJap engine inside." (Note: This quote comes from Iacocca's autobiography nearly a decadeafter Iacocca was fired. It also flies in the face of common sense, since Ford Motor Company

had been selling a Mazda truck as the Ford Courier since late 1971 and HFII personallysigned off on every new carwhile the CVCC wasn't tested by the EPA until October 1972).This bit of anger was perhaps understandable for a man who had served in the U.S. Navyduring World War II, but the Ford Motor Company did go on to adapt to the era in whichJapanese, German, and American participation in a globalized automobile industry becametightly integrated. For example, Ford's relationship with Mazda was well developed evenbefore the end of HF2's period of influence.

http://en.wikipedia.org/wiki/William_Clay_Ford,_Jr.http://en.wikipedia.org/wiki/CVCChttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Fordhttp://en.wikipedia.org/wiki/Lee_Iacoccahttp://en.wikipedia.org/wiki/Lee_Iacoccahttp://en.wikipedia.org/wiki/Ford_Pintohttp://en.wikipedia.org/wiki/Ford_Fiestahttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Mazdahttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://en.wikipedia.org/wiki/William_Clay_Ford,_Jr.http://en.wikipedia.org/wiki/CVCChttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Fordhttp://en.wikipedia.org/wiki/Lee_Iacoccahttp://en.wikipedia.org/wiki/Lee_Iacoccahttp://en.wikipedia.org/wiki/Ford_Pintohttp://en.wikipedia.org/wiki/Ford_Fiestahttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Mazda


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The Mustang

The US 1924 born son of poor Italian Immigrants, Lee Iacocca studied engineering andjoined the Ford motor company in 1964 in the engineering dept. Moved to the commercialside as an east coast fleet salesman and made promotion through the Ford Ranks .

As head of a development team Iacocca had a sharp eye for market- and productdevelopment. The PR department got all kinds of request for a two-seater version of the FordThunderbird that only was available a four-seater .The Baby boomers were going to enter themarket , the number of colleges students was going to be doubled and research showed thehigher educated people bought more cars at a higher rate . Equally interesting changeshappened among older car buyers there was a perceptible shift away from the preoccupationwith the economy cars in the 50 ties.

The conclusion was inescapable: whereas the Edsel was a car in search of a market that didntexist , here was a market in search of a car that did not exist.

The answer the US$ 2.368 Ford mustang lauched on march 9th 1964 and from head on oneof the greatest successes of the company.

HF2's management style caused the company's fortunes to fluctuate in more ways than one.For example, his offering ofpublic stockin 1956 raised 650 million USD for the company, butthe "experimental car" program instituted during his tenure, the Edsel, lost the companyalmost half that. Likewise, HF2 promoted the creative Lee Iacocca, who was fundamental tothe success of the Ford Mustang, in 1964, but fired Iacocca due to personal disputes and badbusiness decisions (rushing the Pinto into production without proper testing, cuttingproduction corners to boost the bottom line, horrid quality control and lawsuits arising from

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same.) in 1978 (about the break in their relationship, HF2 was famously quoted as saying,"Sometimes you just don't like somebody"). Nevertheless, Henry Ford II's overall influenceon the company was substantial. By the time he retired as Chairman in 1980, Ford MotorCompany was the fourth-largest industrial corporation in the world. He retired as an officerand employee of Ford Motor Company on October 1, 1982, as per the company's mandatoryretirement age of 65, but remained the ultimate source of authority at Ford until his death in1987.

What is the life expectance of a car brand and its models

How to extend your products lifecycle ? How tosurvive in a changing environment? Lets take alook on how Volkswagen found its way with itsGolf model and how it grew with thegenerations.

In the early seventies the Volkswagen Golf (called theRabbit in the U.S.) faced the daunting task of followingthe most popular car ever built the Beetle. Fortunatelyfor VW, the Golf was nearly as big a hit as the Beetle hadbeen and the company was able to soon phase out Beetleproduction in Germany. It would take nearly anotherthree decades, but eventually the Golf replaced theBeetle in the rest of the world, too.

Following Beetles or Beatles isn't easy. But the Golf ismuch more than the answer to a trivia question.

First-Generation Rabbit/Golf: 1975-1984

Why did Volkswagen decide to call the new front-drive small car it called the "Golf"everywhere else in the world the "Rabbit" in America? Go ahead and guess, because VW hasnever offered an official (much less believable) explanation.

The Golf debuted during 1974 in Europebut didn't make it to the U.S. as the Rabbituntil the 1975 model year. While it wasclearly intended as a successor to theBeetle, it wasn't VW's first attempt atreplacing that icon. Volkswagen expresslysays that production of the Golf will notinterfere with the Beetle program at

least for the time being. This sounds quitereasonable, for you don't drop overnight acar of which 5,000 units are produceddaily 3,000 in Wolfsburg and about 2,000 in other branches of the company especiallywhen it's the only model on which you make money."

So, conscious of its own profitability, VW was hedging its enthusiasm for the newGolf/Rabbit by keeping Beetle going full bore. But to buyers, that the Golf was a radicallybetter product than the then nearly 40-year-old Beetle was obvious.

The Golf formula was essentially the polar opposite of the Beetle's. In place of a rear-mounted, air-cooled flat-four engine driving the rear wheels, the Golf used a front-mounted,



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water-cooled inline four driving the front wheels. In place of the curved metal that definedthe Beetle's appearance, the Golf had sharply creased lines drawn by the famed Italiandesigner Giorgetto Giugiaro. The Beetle was a two-door with a dinky trunk in the front, whilethe Golf was available as either a two- or four-door and both opened up for maximum cargohauling thanks to a large rear hatchback door. The Beetle was built atop a stamped steelchassis, while the Golf had a simple unibody structure. But the two at least had this incommon: Just as the Beetle's layout was the most efficient possible considering thelimitations of 1930s technology, so too was the Golf's design the most efficient possible in the1970s.

At just 146 inches long, the first Golf was a small car even by European standards. But thewheelbase was a relatively long 94.2 inches and that effectively put the wheels at each cornerof the car, and at 63.5 inches it was pretty wide for its size and era, too (a contemporaryToyota Corolla was 3.6 inches narrower). The result was excellent space utilization and aninterior that felt huge because it was huge in comparison to the competition. And theinterior was comfortable and contemporary with a simple instrument pod in front of thedriver and bolt upright seating.

With a curb weight under 1,900 pounds and precise rack and pinion steering, the first Golfwas a revelation and instantly set the standard for small-car handling and overallperformance. Throw in competitive prices and the car was an instant hit with sales farexceeding VW's most optimistic forecasts and just about everyone acknowledging that, yes,this car would replace the Beetle.

Meanwhile in Europe, the '75 Golf was now available as a GTI version fitted with a fuel-injected 1.6-liter engine making a stunning 110 hp, a revised suspension, full instrumentationthat included a tachometer and big (sort of) 175-millimeter-wide tires. The GTI instantlycreated the "hot hatch" market segment in Europe and America wouldn't get its own versionforwell, read on.

For 1976 the Rabbit got a carbureted version of the GTI's 1.6-liter engine making one morehorsepower than the superseded 1.5 for a total of 71. The car was already selling in bignumbers in both Europe and America, so VW wasn't about to mess with it much. However,minor tweaks like a heat shield between the exhaust pipe and fuel tank, revised window trimand some carburetor adjustments significantly improved drivability and overall enjoyment.In its test, Car and Drivermeasured a '76 Rabbit getting to 60 mph in just 10.9 seconds.

Diesel power came to the Rabbit lineup for 1977 with the addition of a 1.5-liter diesel four tothe options list. Rated at just 48 hp, this engine delivered phenomenal fuel mileage with theEPA ratings coming in at nearly 50 mpg on the highway and nearly 40 mpg in the city. Slow?Yeah, acceleration was absolutely glacial but many diesel Rabbit buyers wore theirlackadaisical performance as a sign of their own obvious virtues. And the diesel option was

cheap, carrying a premium of only $170 over that of the gas-fueled version.

The Rabbit carried over into 1978 visually unchanged but once again was powered by the 1.5-liter version of VW's water-cooled four. Now rated at 71 hp (the same as the previous 1.6-liter) it made little difference in performance. However, big changes were on the way.

In July of '78, VW started production of the 1979Rabbit in a new plant it had built (using the shellof an old Chrysler plant as a base) inWestmoreland, Pennsylvania. Volkswagenbecame the first foreign manufacturer to establisha significant production base in the U.S., opening

the door for Honda, Toyota and just about everyDECENTRAL EXAM MM2VP1ES03/1FA03 TEST 1 DUE DATE APRIL 8th 17.00 Hrs12


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other German manufacturer to follow. A newly available five-speed manual transmission wasthe major addition to the 1979 Rabbit's mechanical package. That helped the diesel versionachieve an astonishing 53 mpg on the highway and 40 mpg in the city, according to theEPA.Initially, German and American Rabbits were sold alongside each other and were easilydistinguished by their headlights. But soon all gas-powered Rabbits sold in America wereAmerican made, even as all the diesels still came from Wolfsburg.

The last Beetle in VW's U.S. lineup, the convertible, was finally gone after the '79 model yearand in its place was a new Rabbit convertible for 1980. Like the Beetle convertible, the Rabbitversion was built with coachbuilder Karmann doing much of the work. As in the Beetle, thetop dropped back into a rather tall stack at the car's rear, but that's about all they had incommon.

For 1981 the Rabbit's nose was redesigned and now used wraparound front turn signals. Thebig mechanical change was the adoption of a new 1.7-liter version of VW's SOHC four that,using fuel injection, was rated at 74 hp. It was the only gas engine available that year and theoptional diesel engine also grew to 1.6 liters and 52 hp. Car and Driverclocked the gas-powered version traipsing to 60 mph in 11.6 seconds while the diesel took a languorous 18.8

seconds to achieve the same velocity.

For all intents and purposes, the 1982 Rabbit was a rerun of '81. It was the lull before thestorm. That storm was the 1983 Rabbit GTI arriving nearly a decade after the first Golf GTIhad gone on sale in Europe. Featuring a 90-hp, 1.8-liter version of the fuel-injected four, the$7,995 GTI. A fast, entertaining, high-quality car at an affordable price built on an Americanassembly line by American workers."

Second-Generation Golf: 1985-1993

In a startling fit of rationalisation, VW decided to call the new second-generation Golf the"Golf" when it went on sale in the United States. The Rabbit name was dead, but the basic

ideas of the first-generation car carried forward.

The 1985 Golf came from VW's own stylingstudios and wasn't anywhere near asdistinguished in profile or detail as the first.

It wasn't ugly by any stretch of theimagination, but it seemed awkward wherethe first was taut and indistinct while theoriginal was iconic. The new car was OK, butit would never be beloved like the first-generation Golf.

The Golf was larger in virtually every dimension over the Rabbit. The wheelbase nowspanned 97.3 inches (up 3.1 inches), overall length was now 158.0 inches (up 2.7 inches) andthe overall width was now a full 65.5 inches (up 2.0 inches). Fortunately those larger externaldimensions translated into more room as the EPA now rated the Golf as a "compact" ratherthan a "subcompact." Unfortunately the car was also heavier with its weight approaching2,200 pounds for some models.

The Golf lineup went through 1986 with no significant change and then received a significantpower boost when a new DOHC, 16-valve version of the 1.8-liter four was introduced for the1987 GTI. But there was also a power loss on the diesel side as the turbodiesel engine waskilled.



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The GTI was offered with genuine Recaro seats during the 1988 model year, and the baseGolf engine was rerated to 100 hp, but otherwise the line carried over pretty much intact.Volkswagen's experiment with U.S. production, however, was deemed a failure and theWestmoreland, Pennsylvania, assembly plant was shut down after this model year (the plantnow assembles television sets for Sony). Production of the diesel Golf also concluded.

Golf production for the 1989 model year was now split between Germany and VW's plant inMexico but the cars themselves were basically reruns of the '88 models.

the GTI's 16-valve engine grew to 2.0 liters and 131 hp, but other changes were light, theeight-valve GT was renamed GTI and the GTI with the 16-valve engine became, naturally, theGTI 16-valve. Though a fourth gear was added to the automatic transmission, both 1992 and1993 were otherwise repeats as the third Golf was on the way.

Third-Generation Golf: 1994-1998

Much as the second Golf expanded on the themes of the first Golf, so the third one did on thesecond. The wheelbase was up again to 97.3 inches, overall length grew to 160.5 inches andtotal width was now 66.7 inches.. The look was more rounded (again) and moremonochromatic, but still recognizably a VW Golf neither ugly nor really beautiful.

The Cabrio caught up with the rest of the Golf line as it was based on the third-generationGolf shell for 1995., VW redesigned the Golf's rear fenders, added new roll-down rear-quarterwindows, significantly modified the doors and front side windows and added a new integralroll bar to create the Cabrio. In all it was a straightforward application of VW's successfulCabrio formula applied to the new body style. And it was available only with the same 115-hp,2.0-liter four that powered other Golfs.

The GTI now had VW's unique 2.8-liter VR6 engineunder its hood.

The VR6 concept was to take a conventional V6 andnarrow the angle between the two cylinder banks to just15 degrees so that all the pistons could reside under asingle cylinder head. With two overhead cams controllingtwo valves per cylinder, the 2.8-liter VR6 was rated at athrilling 172 hp while producing 177 pound-feet of torqueat just 4,200 rpm. Compared to the fours that hadpowered previous GTIs, this engine was a brute and itemitted a magnificent basso vibrato through the exhaust

system.While the introduction of theVR6 only expanded the GTIlegend, VW diminished its reputation during the 1996model year by also offering the sport model with the base Golf's 115-hp engine. The 1998Golfs were the first available with side airbags and there were some new wheels for the GTI,but other changes were slight. There was already yet another Golf on the way.

Fourth-Generation Golf: 1999-2005

http://www.edmunds.com/used/1992/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1993/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1995/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1996/volkswagen/gti/13816/prices.htmlhttp://www.edmunds.com/used/1996/volkswagen/gti/13816/prices.htmlhttp://www.edmunds.com/used/1998/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1998/volkswagen/golf/index.htmlhttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://www.edmunds.com/used/1992/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1993/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1995/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1996/volkswagen/gti/13816/prices.htmlhttp://www.edmunds.com/used/1998/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/1998/volkswagen/golf/index.html


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After successfully launching both its standard-setting Passat and trend-setting New Beetle in'98, Volkswagen was on a roll coming into 1999. The big question was whether the all-new

Golf could sustain that momentum.

The fourth-generation Golf is slightlywider and more than 3 inches longer

than its predecessor, with thewheelbase stretched 1.5 inches to 98.9.This allows for a larger interior, betterrear headroom and overall legroom,and nearly a foot more cargo space."

Base power remained the 2.0-literSOHC four making a so-so 115 hp while a 1.9-liter turbodiesel (which VW had already offeredin the Passat and New Beetle) joined the lineup making 90 hp. The VR6 returned in the GTIGLX (the GTI GLS stayed with the regular 2.0-liter engine) and was now rated at 174 hp andonly available with the five-speed manual transmission.

With the redesign still fresh, the apparent changes to the Golf family for 2000 were scant.But the evolution of the species made some significant progress at midyear as the GTI GLSnow came with VW's turbocharged, 20-valve, 1.8-liter, 150-hp four as standard equipment.The "1.8T" seemed a natural in the GTI.

The Golf line continued into 2001 with few changes as the 1.8T engine became availablethroughout the range. " The boost in power arrived for 2002 on schedule and gave the Golfsome needed gloss as its allure faded with age. The 2.8-liter VR6 was also revised to thumpits torque-rich output up to a full 200 hp. A limited-edition "GTI 337" based on the 25thAnniversary GTI sold in Europe was also issued and featured 18-inch BBS wheels, a loweredsuspension, a six-speed manual transmission, oversize brakes, Recaro seats, aluminumpedals, special trim and a "retro" GTI badge. Only 1,750 337s were made, none had sunroofs

and all were painted silver. Why was it called "337"? Because VW's code name for the originalGTI was "EA337."

The Cabrio was dropped at the end of the '02 model year as it was effectively replaced by theNew Beetle Convertible.

In the fourth-generation Golf's case the all-wheel-drive R32 was introduced as a 2004model., "the decked-out R32 gets a long list of upgrades that allow it to compete in a leaguedominated by Subaru's WRX and Mitsubishi's Lancer Evolution. At the top of that list is theinstallation of a next-generation 3.2-liter VR6 engine that not only gives the R32 its name, italso adds a serious boost in power over the 2.8-liter VR6 found in the top-of-the-line GTI."

"Producing 240 hp and 236 pound-feet of torque, the new VR6 is not only larger indisplacement it also uses an upgraded intake and exhaust system to get the increased volumeof air moving in and out more quickly. The result is not only more power, but more poweracross a broader range of engine speeds, as this VR6 develops its peak torque between 2,800and 3,200 rpm."

http://www.edmunds.com/used/1999/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2000/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2001/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2002/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2004/volkswagen/golf/index.htmlhttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://www.edmunds.com/used/1999/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2000/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2001/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2002/volkswagen/golf/index.htmlhttp://www.edmunds.com/used/2004/volkswagen/golf/index.html


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Comprehensively equipped and, unlike every other Golf in the U.S. range, made in Germany,the R32 was nowhere near cheap (pricing started at $29,100). But it was also an exciting carto drive and wasn't a boy-racer as much as a sophisticated road machine in Golf clothes. "Sois it all worth it? As usual, it depends on what you're expecting

The rest of the Golf line carried though the year intact and practically unchanged and will do

so into 2005. But a new Golf and GTI are coming.

Fifth-Generation Golf: 2006

The fifth-generation Golf went first on sale in Europe That next Golf is significantly updatedbut still recognizable as a Golf. That means it's still front-wheel driven, still uses aconventional MacPherson strut front suspension and still offered in two- and four-doorhatchback body styles. The wheelbase now stretches to a full 101.5 inches, and the base powerplant is likely to be a new 2.5-liter inline five-cylinder engine making 150 hp (Golfs in Europe

come with a range of diesel and naturally aspirated fours as well).

The GTI had a new 200-hp, 2.0-liter version of the turbocharged 20-valve four featuringdirect gasoline injection coupled to a six-speed manual transmission.

During 2002 the 21,517,415th Golf was produced and the Golf passed the Beetle as the mostproduced model in VW history. The fifth-generation Golf will only extend that lead because,the Golf is already a legend in its own right.

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Like the whole automotive industry that is now working on more environment friendly cars ,Volkswagen developed its blue motion technique which was applied in the 6th generation asof 2009.

Factors influencing car demand

There has always been a clear link between the automotive industry and governmentalpolicies. Untill the turn of the century Local governments protected their car industry and itis fair to say that every major country had its own national Pride; The US Presidents car wasand is a Lincoln , Monsieur Le President was driven in a large Citron, Prime minister theIron Lady Tatcher had to say goodbye to her Jaguar when leaving Downing street 10, derBundeskanzler hit the Autobahn in a Mercedes whereas the Pope has a Lancia (although hedrove a small Golf prior to his election as the holy father.)

Despite internationalization car brands were quite national and each country had its nationalproud for the people the Cinqocento from Fiat in Italy the Deux Chevaux or the Renault fourin France , the mini in Britain and der Kfer in Germany , Volkswagen was market leader inthe DBR , Vauxhall in the UK , Citroen or Renault in France and Fiat in Italy.

Protecting the national industry through import legislation was common practice. When theJapanse car makes won higher market shares a cap was set by the European countries . Onthe other hand the government had a love hate relation with the car driver as a tax payer.Taxes account roughly for 60% or more on the gas prices in Europe . Moreover Road taxes,inner city taxes, highway taxes, Toll tariffs ,gas guzzling taxes on big cars and inner cityparking prices are a welcome source of income to minimize governments deficits .

On European level EU commissioner Mario Monti developed strict rules to increase

competition in the car industry particularly on retail and service levels.

Moreover, various governments passed laws to protect the environment and to decreasefossil fuel consumption. The car industry and particularly Detroit were not in favor of theseregulations and fought vigorously against it with lawyers and lobbyists. When the UnitedStates government passed a law aimed at reducing the size of personal cars, Detroit found ahole in the law by building large personal vehicles on the platform of a van, where as Toyotaand Honda took the lead infuel efficient Hybrids. Whenthe recession came Detroitended on the verge ofbankruptcy. Get your lawyers

and lobbyists of the case andyour designers on it wasone ofthe main critics. Now GM hasher first electric car the ChevyVolt in Europe marketed asthe Vauxhall or Opel Ampera.

Consumer demand for more fuel friendly cars has risen strongly in the last few years . Due torocketing fuel prices, tax legislation in favor of more fuel efficient vehicles, and the growingfeeling that big cars are less socially acceptable. Downsizing is one of the main trends all over



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the world where people start to trade in there large size Audi Q7 for smaller a Q5, or theirBMW X 5 series for the X3 or even the X1. The Hummer brand has been discontinued byGM, and Cadillac is withdrawing from Europe.

Another phenomenon in the car industry was the marketing of retro models. In 1999, Jaguarlaunched the S type- a retro model for the iconic Jaguar Mark II. VW introduced the NewBeetle which became a hype in the US in the first two years, but sales faded later. Chryslercame with its Mobster Paraphrase the PT cruiser.

Around the turn of the century BMW was more successful with its Revamped Mini Cooper,and the New Fiat Cinquocento seems to be an equally fashionable hit - like the retro scootersthat we see downtown in European cities . But history teaches us that these copies of of thepast normally do not beat their historic predecessors in terms of success.

The car industry is very sensitive to the economy. Not that the consumer will sell his or herthe car to enjoy the benefits of public transport, but they simply will postpone theirpurchase in case of bad economic weather. All major car manufacturers now look east orsouth to the BRIC countries and particularly China. Booming Sales in China largelycompensated for the stagnation in demand in the USA and Western Europe.

Meanwhile, initiatives on the designer front seem to pay off. Technology is one of the keydrivers that shaped the industry . Not only through the product itself but also inmanufacturing and logistics. The conveyer belt by Ford, Toyota total quality principles ,

robotics in welding and spraying, motor management systems, the use of carbon and epoxymaterials, aero space technology, electronics and chips: it made cars cheaper, faster, lighter,safer, more comfortable, and more fuel efficient.

The oil crisis; rising gas prices in combination with the insight that the supply of fossil fuels isnot endless and the focus on sustainability, pollution, carbon dioxide emissions, andalternative energy sources form the upcoming challenge for the car industry . Initially thefocus was on improving the existing combustion engines and only small steps were takensuch as stop and go systems . Green window dressing was the name of the game at that time.

The discussion that early battery driven hybrids were less efficient and gave more pollutionthan fuel efficient combustion powered cars when applying the cradle-to-cradle principle,

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and the idea that Hydrogen would not be accepted quickly by the consumers due to fear ofexplosion, made the car industry to hold their horses. Moreover, there was no distributionsystem in place. Producing Hydrogen also cost a lot of energy, and battery technology was farfrom being efficient. Last but not least, the business cases did not look favourable . On top ofthat, critics said that that the tycoons of Detroit, Wolfsburg , Stuttgart, and Munich allsuffered more or less from oil addiction. So initially the development of electrical cars did notcome from the classical car industry but form visionaries and new comers; Lets look at Tesla,Fisker, Th!nk, and Riversimple

Tesla

The Tesla Company is the brainchild of Martin Eberhard and Marc Tarpenningand PayPal founder Elon Musk. The founders of Google, Sergey Brin and LarryPage, are also investors. This fresh blood from Silicon Valley is further evidencethat Tesla is an entirely different type of car company.

The company takes its name from Nikola Tesla, the inventor of alternating current, a man

who went toe-to-toe with Thomas Edison (and won) to prove whether AC or DC was thepreferred method of transporting electricity over great distances. In the same light, TeslaMotors is trying to prove that electricity is not only capable of transporting automobiles greatdistances but also that electric cars can be fun to drive.

Tesla went about creating its first vehicle with the theory that nobody wanted electric carsbecause nobody had created an electric car worth buying. So they sought to correct the many

perceived electric-car problems like range, recharging times, styling and performance. Thecompany's first product, the Tesla Roadster, is capable of going about 250 miles betweencharges, which is a drastic improvement from the GM EV1's 60-90-mile range. A completerecharge is accomplished in less than 2 hours. (The EV1 took 5.) Recharging is accomplishedvia regenerative braking, a home recharging unit and an optional portable recharger.

Fisker Automotives Henrik Fisker

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Danish designer Henrik Fiskeris best known as a designer; thepen behind gracefully muscularconcept and productionvehicles like the BMW Z8roadster and the Aston MartinDB9 sports car. But in anunexpected move, Fisker leftFords then parent company,Ford Motor Co., in 2005, to setup his own firm in SouthernCalifornia.

Initially, he and his partners planned to revive the lost art of custom coach building, takingplatforms from luxury makers like BMW and Mercedes-Benz and retrofitting them withlimited edition bodies and interiors. But a couple years later, the designer shifted gears again.

By 2007, a company called Quantum Technologies had developed the Q-Drive extended-range electric vehicle system for military applications, and it wanted to bring the system tothe civilian market. Henrik Fisker by this time had the design for the Karma, but nopowertrain. It was like chocolate and peanut butter: two things meant to be together.Here's how Henrik Fisker put in a telephone interview: "We decided over lunch at an Italianrestaurant, 'let's start a car company.'" While the decision was made quickly, the businessplan took some time.

Instant Karma:

Fisker Automotive was established in September 2007, and the Karma four-door sedanconcept was at the 2008 Detroit Auto Show in January - a mere four months later. The plug-in hybrid architecture inside the sports car body helped Fisker gain backers and attention. Hehad wanted to make a four-door sports car at Fisker Coachbuild, but he had no way to makeit stand out. Now, with the advanced powertrain architecture, "it's not just another four-door it gets 100 mpg. It stands out from the others," said Fisker. It was also easier, he found, tobuild a car from scratch than to reskin cars from BMW and Mercedes.

Fisker's Facilities:In 2008, as the American car companies were floundering, Fisker Automotive made the boldmove of opening a second facility in Detroit. While the initial designs and prototypes aredone at company HQ in Irvine, California, the heavy production is done in Michigan in close

concert with the company's suppliers. The production cars will be built in Finland, alongsidethe Porsche Boxster.



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These luxery brands are represented in Europe By Rogier Krooymans son of the Tyco0n Fritsof the Krooyman coperation. It is expected that these propositions with a retail price inexcess of 100,000 are only attractive for the innovative and very happy few.

Think City

The Th!nk Cityis a small two-seater or2+2-seater highway-capable electric carproduced byThink Global and itsproduction partner Valmet Automotive,with a top speed of 110 kilometres perhour (68 mph) and an all-electric rangeof 160 kilometres (99 mi) on a fullcharge.

The Th!nk City is sold in Norway, theNetherlands, Spain,France,Austria,Switzerland and Finland.

As of December 2010 it is one of the fourcrash-tested, mass-produced and highway-certified electric cars in the world, together withthe Tesla Roadster, the Mitsubishi i MiEVand the Nissan Leaf.

As of September 2010 the Th!nk City is currently on sale in Norway, the Netherlands, Spain,France,Austria, Switzerland and Finland. The list price for the car in Norway before optionalfeatures, is approximately30,700. The list price for the car in Finland is 49,600 in theNetherlands 33.950.

The price of a Th!nk is about 2 times of that of a comparable car with a combustion motor

It seems that the th!nk marketers did not think of the early 1900 Phaeton case

Riversimple

Riversimple is one of the firsthydrogen cars produced in theUK. The companys approach isdifferent from mainstreamcarmakers. They haveconsidered all the differentelements of the personalmobility system, including theusers, the suppliers, theinfrastructure and theenvironment, and developedan optimised system toaddress the multiple problemsthey face rather than focussingmerely on the technology

(often described as whole system design). It has seven steps:

http://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Think_Globalhttp://en.wikipedia.org/wiki/Valmet_Automotivehttp://en.wikipedia.org/wiki/All-electric_rangehttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Tesla_Roadsterhttp://en.wikipedia.org/wiki/Mitsubishi_i_MiEVhttp://en.wikipedia.org/wiki/Nissan_Leafhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Think_Globalhttp://en.wikipedia.org/wiki/Valmet_Automotivehttp://en.wikipedia.org/wiki/All-electric_rangehttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Tesla_Roadsterhttp://en.wikipedia.org/wiki/Mitsubishi_i_MiEVhttp://en.wikipedia.org/wiki/Nissan_Leafhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Euro


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1. Develop and build highly efficient vehicles, based on a Network Electric design,constructed from carbon composites and powered by hydrogen fuel cells.

2. Sell mobility as a service, not a car as a product. Users will pay a fixed monthlyrental and per mile charge. This rewards longevity and low running costs rather thanobsolescence and high running costs..

3. Adopt this sale of service model upstream through our supply chain, to align theinterests of Riversimple, longevity and reliability, with those of our suppliers andbuild closer relationships.

4. Grow city by city. Our car is perfect for local use in a region or in and around acity; with a range of 240 miles, one refuelling station makes use within a radius of 25miles practical. Refuelling stations can be installed city by city, developing anationwide hydrogen-refuelling infrastructure incrementally, so that it becomesrealistic to use motorway capable hydrogen cars.

5. Manufacture vehicles in small scale distributed facilities. The economies of scaleof carbon composite frames are very different from those of steel-bodied vehicles.Riversimple vehicles are likely to be produced in small factories producing c. 5,000vehicles per year.

6. Open source design and development. By licensing designs to an independentopen source foundation, the 40 Fires Foundation, engineers and designers fromaround the world can help develop the vehicles and any manufacturer around theworld can make them.

7. Have broader company ownership. The corporatestructure of Riversimple is designed to ensure that all

stakeholders in the enterprise have a voice in thegovernance of the business and share in the benefits ofits success.

It is evident that the concept of the car is probably too farahead to attract a large number of customers within arelatively short period of time

S0 the main move to the mass-market probably has to come from the mainstram automakerswith the new hybrids from Toyota and Opel, and the electrical cars from Nissan, andMitsubishi. The strong presence of the Japanese carmakers is significant.

The Opel Ampera the European equivalent of the GM Chevy Volt, is a hybrid with a 60 kmbattery range before the combustion engine starts up. It is a 5 seater and will retail foraround 43.000



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The Nissan Leaf(Leading Environmetally friendly Affordable Family car) has beenawarded as car of the year. The range is 160 Km on its lithium Batteries. It has five doors,and will retail around 33.000. The Mitsubishi will retail at the same price

Whether the electrical car will be a success is highly dependant upon acceptance by theconsumer. 94% of the industry experts believe that it will take at least five years beforeelectrical diving will take off. JD Powers estimates that in the coming five years thepenetration will stay below 2%

The main barrier are the price of the batteries, which areand will be at least 50% higher than a comparableconventional car, and the range anxiety - that you will bestuck in the middle of nowhere without electricity. Studiesby the leading automotive consultancy JD Powers learnedthat 60% of Americans were interested in hybrid cars. Butat a price difference 0f $5000, the percentage sank to 30%.The comparable data for electrical cars were 17% and 5%.Moreover, a lot of consumers do not trust the specs of themileage: what happens to the mileage ratings when youput your airco or your heater on?

http://images.google.nl/imgres?imgurl=http://www.vondel.houhetpuur.com/images/logo_hva.gif&imgrefurl=http://www.vondel.houhetpuur.com/contact.htm&usg=__EFIw0Um45m4OYc50vJt2whsiHdY=&h=142&w=142&sz=5&hl=nl&start=3&itbs=1&tbnid=gLEOiEOQKZflPM:&tbnh=94&tbnw=94&prev=/images%3Fq%3Dhva%2Blogo%26hl%3Dnl%26sa%3DG%26gbv%3D2%26tbs%3Disch:1http://otozonecarrevew.com/2011-chevrolet-volt-green-car-of-the-year/chevrolet-volt1/


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On top of that there is hardly any road appearance of electrical charging points. It seemsthat the oil companies drive with the feet on the brakes.

For the so-called Petrolheads, who want to hear the engine roar, the sound of silence fromthe electrical car is a nightmare. They look like a muffin and are silent as a mouse. Nobodywants to be seen in such a car unless you are a sandal wearing green vegetarian good do-er .For marketers not the most attractive peer-group.

Some industry experts say that there will be interesting submarkets for the electrical car -particularly as a business car for companies who want to promote their green image;meanwhile profiting from tax deductions. The success of the Prius was mainly basedsuccessful penetration of the lease market. Another option might be the positioning as asecond car.

Carlos Goshn, CEO of Renault Nissan, however is a true believer he will produce 50,000units this year and quadruple it to 200.000 in 2012. His aim is to produce and sell 500.000units on an annual basis. The French-Japanese carmaker has reserved 4 billion Euro to

develop 18 models in the coming years - so the driving force might come from Nissan andRenault.

Whether the future will be electrifying, we still do not know.

To give you an indication on the advertising spending per brand, see the data below.

Gross media investments per brand per model per yearin the Netherlands:

Brand Model 2009 2010Honda Total 4.719.947 6.678.184

Accord 383.892 5.089

general branding 393.854 1.430.171

Civic 397.783 15.925

Civic Hybrid 510.417 548.699

CR-V 283.686 5.089

CR-Z 980.908

Insight 2.654.131 1.046.899

Jazz 96.184 2.645.404

Lexus Total 3.050.983 2.352.839

general branding 399.673

GS-serie 117.104 89.051

IS-serie 420.553 1.061.107

RX-serie 2.113.653 1.202.681

Nissan Total 7.704.715 8.733.848

Algemeen 429.607

Juke 2.732.212

Leaf 145.435



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Note 1.605.514 982.945

NV200 307.220

Pixo 1.249.113 1.121.187

Primastar 26.435

Qashqai 4.823.653 3.015.242Opel Total 20.018.426 25.747.509

Agila 1.654.587 196.114

Algemeen 6.851.972 1.981.514

Ampera 21.250

Astra 2.700.502 5.817.696

vans 44.776

Combo 89.046 604.916

Corsa 2.924.068 7.996.149

GT 112.423

Insignia 4.909.512 2.872.618

Meriva 481.026 3.770.615

Movano 92.220 1.212.323

Tigra 111.823

Vivaro 91.247 592.520

Zafira 637.018

Toyota Total 21.297.117 22.823.683

general branding 2.713.832 7.958.080

Auris 1.162.192 4.517.351

Avensis 4.283.410 1.340.696

Aygo 12.295 3.099.927

iQ 4.127.388 1.228.219

Prius 3.553.008 165.559

Urban Cruiser 1.232.285

Verso 2.825.278 1.567.883

Yaris 1.387.429 2.945.968

Endtotal 56.791.188 66.336.063

Source: Adfact media & advertising intelligence



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Kotler and Amstrong show five alternative concepts under which organizations design andcarry out their marketing strategies. Describe the main differences between these conceptsin the underlying grid

Starting point Focus Means Ends1.

2.

3.

4.

5.

Question 2BWhich of the above concepts did the Ford Motor Company follow?1. In the beginning in the 20th century with the Model-T ford2. In the fifties during the development of the Ford Edsel.3 And which of these concepts when Ford launched the Ford MustangExplain your answers based on the theory from Kotler, and the data from the case

1.2.

3.

Question 3 A

Armstrong & Kotler describe the concept of a mission statement. Describe the meaning ofa mission statement.

Question 3BBased on the data from the case and your own research what would be the statement for theFord Motor .Company?And what would the statement be for TeslaFordTesla

Question 4 ATarget groups can be segmented based on geographic and demographic criteria, but alsowith Psychographic and or behavioural segmentation.

Give examples of these criteria as described in Armstrong & Kotler.

1 Examples of geographic criteria:2 Examples of Demographic criteria:34

Question 4 B



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2. The outsourcing of the metals that are used for makingthe battery in the vehicle. - contra

3 Political Some governmental institutions stimulate the population tobuy clean/green environmentally friendly cars, by reducingtheir taxation. - pro

4Technological

The technology for clean environmentally friendly cars isimproving very fast. This is related with the fact thatinnovation is needed. If so the product life cycle of theNissan Leaf will be shorter. Because of the newer models. contra

Question 6AChapter 7 mention the three levels of product. One of them is the core product.Mention and explain these three levels.

Product type Explanation

1.Core product2

3

Question 6 BNow fill in these three levels for the Mini Cooper, and describe based on your field researchhow they specifically shape these three levels.

Product type Description

1.Core product

2

3

Question 7 AThe characteristics of a new product affect its rate of adoption. Some products catch onalmost overnight. Others take a longer time to gain acceptance. Draw the figure of theadoption curve, and name the various sections.Drawing

Sections

Question 7 BBased on the information of the case and your own findings where would you place the VW

Golf, and where would you place the Nissan Leaf1. VW Golf Late majority

2 Nissan Leaf Innovators

Question 8 A 1.The product lifecycle (PLC) consists of five stages starting with product development. Drawthe lifecycle and Mention the 5 stages; briefly explain the characteristic(s) of each stage.Lifecycle



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Explanation1.2.3.4.5.

Question 8 B 1There is no such thing as a standard life cycle. The theory mentions three variations to theclassical one. Describe them shortly. Which one would be most applicable to the New BeetleExplain your answer.1.

2.3.the new Beetle

Question 8 B 2.

Lifecycles are not static, but can be extended like for Apple as explained during the MM1course. Based on information from the case: Draw and describe the complete PLC for theVW Golf. Explain the choices you made.

Drawing

Full explanation

Question 9 AWithin its target marketing strategy a company can decide to target broadly and or narrowly.A company has four options; one of them is Undifferentiated Marketing.Mention the four options and describe their main characteristic

Target marketingstrategy

Main characteristic

1.UndifferentiatedMarketing

2

3

4

Question 9B

1. If we compare the future situation of Tesla on one hand, and



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2. The Nissan Leaf on the other, how would you characterize their most likely targetmarketing strategy? Explain your Answers.3. Then describe the differences

1. Tesla:

2:Nissan Leaf:

3 The differences are:Tesla Nissan Leaf:

Question 10A 1A company can follow two pricing strategies. One is value pricing.Describe the characteristics of these two pricing strategies1.

2

Question 10A 2Another way to look at pricing for new products is penetration pricing and its opposite.Describe the characteristics of these two alternative pricing strategies1.

2

Question 10 B

If you look at the pricing of the Th!nkCity and Fisker, how would you characterize theirpricing strategy (taking your previous answers into consideration)?1. Think City

2 Fisker

Question 11AIn planning their differentiation and positioning, marketers often prepare a perceptualpositioning map. Explain what the purpose of these maps is and what they show.

1. The purpose of the perceptual positioning map is:

2. It shows:



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Question 11BIf you look at the future situation, fill in and draw the positioning map for the Opel Amperaversus Toyota Prius and the VW golf on the dimensions of Price and Eco friendliness.Explain your drawing

----------------------------------------------------------------------------------

Explanation

Question 12AA company can use various pricing strategies for tactical reasons. They are called priceadjustment strategies. Mention and expalin 5 of these strategies12345


----------------------------------------

------------------------------------


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Question 12BSuppose Think would like to increase its sales volume with the help of a price adjustmentstrategy. Which two would you recommend; and which two certainly not explain youranswer?We would certainly recommendforTh!nk (explanation)

1 Psychological pricing: Because it will attract more costumers, that will lead to more income.2 Geographical pricing: Because in every country the economy is different, and the car industry is veryrelated with the economy. You must adjust the price in different locations due to the value costumers relatewith the product. For example cars in the U.S are much more cheaper than in Europe, that means that Th!nkmust lower their prices to compete with the U.S. market.We would certainly notrecommendfor Th!nk (explanation)1 Discount and allowance pricing: Because2

Question 13APromotion or sales promotion (in its narrow sense) is often used as a tactical tool to maintainor increase market share. What kind of promotion would you advice in general in order to:

What kind of promotion Why the should use this type of promotion

1. To increase the numericaldistribution at supermarkets2 To generate trial for a newproduct3 To stock more product atexisting

buyers4 To generate cross selling

5 To enhance customer loyalty

Question 13BGiven the competitive situation in the case what kind of promotional technique is mostadvisable to Nissan Explain your answer

What kind of promotionaltechnique

Why to use this type of promotion

1. To increase store traffic tovisit the new Leaf2 To attract existing Nissandrivers to trade in for a Leaf

3 To generate trial

Question 14AWhat is the common denominator between advertising and PR?And what is the difference?1. They have in common

2 They differ

Question 14BDescribe how Nissan can Use PR for the Nisan Leaf to create more brand knowledge.

By stimutating celeberties or influence opinion leaders of the target group to drive in aNissan Leaf.



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Question 15AOn-line media are more and more an intrinsic part of the marketing mix. Describe andexplain at least four forms of different on-line media usage.On-line medium Why and how to use

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Question 15BDescribe which online media you would recommend to Nissan to promote the Leaf .

On line medium We would recommend (because )

1Blogs Because people are very curious this days, what others think of aproduct, no matter if they have tried it yet or not. Stimulating people togive their opinion in blogs, will give new costumers the drive to try theproduct or subconsciously interact with the product.

2 Website Because it gives a costumer a overview of the product with outleaving their homes. Easy to gain information, and also very importantto receive feedback for innovation and improvements

3 Viral Marketing Low costs, but big impact. Social media such as facebook, hyves,twitter makes viral marketing very easy now a days.

4 Onlineadvertising

Is more effective and cheaper than normal advertising on streets. Thenew upcoming generation is more interested in online advertising.

End of the open questions. Check that you have answered all of them

.


lets go electric case mid-term exam

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