MKT6304: New Product Development - Electric Car Executive Summary

This report details the new product development process for an electric car, focusing on the company Taira's initiative to introduce an eco-friendly vehicle to the market. It includes an executive summary, overview of the electric car market, competitor analysis (specifically Chevy Bolt), problem statement regarding pollution, and detailed product descriptions with specifications for different variants. The report covers idea generation, concept testing, business analysis, market segmentation, cost analysis, market risk and benefits, customer profiling, target market identification, and market statistics. Strategic decisions, test market plans, brand strategy, packaging considerations, and product launch strategies (including the 5Ws) are also outlined. Objectives, messaging, geographic coverage, budget allocation, marketing costs, and financial statement projections are presented, culminating in a conclusion and self-reflection. The report emphasizes innovation, user-friendliness, and the strategic positioning of the electric car within the automotive industry, highlighting the importance of eco-friendly products and effective marketing strategies to capture customer attention and achieve market growth.

Running Head: MKT6304
New Product Development – Electric Car

MKT6304
Executive Summary
An electric car is the most effective product within the market to reduce pollution level from the
entire world. Taira is my organization which is producing the product electric car for the benefit
of the customers. The car has been developed from the compact of the electric products that are
being used as the eco-friendly product within the market. This product is also user-friendly and
almost every age people have the authority to drive this car. The primary competitor for my
organization is Chevy Bolt as this also an electric car but the organization is providing
innovative product in an electric car to the market to grab the attention of their customers. This is
one of the best product within the market that is being provided by the company for the benefit
of the people. The packaging is also done with effective employee’s behavior and selling concept
and also the product is launched with effective working function within the market.
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Table of Contents
Introduction.................................................................................................................................................3
Overview.................................................................................................................................................3
Competition.............................................................................................................................................3
Problem statement.......................................................................................................................................4
Product........................................................................................................................................................4
Description and specification..................................................................................................................4
Idea Generation.......................................................................................................................................5
Concept testing........................................................................................................................................5
Business analysis.....................................................................................................................................6
Market Segmentation...............................................................................................................................6
Cost and expected sales...........................................................................................................................7
Market risk and benefits..........................................................................................................................8
Customer profile..........................................................................................................................................9
Target market..........................................................................................................................................9
Market statistics.....................................................................................................................................10
Key strategic decision............................................................................................................................10
Test market................................................................................................................................................10
Brand Strategy...........................................................................................................................................11
Packaging..................................................................................................................................................12
Product launch...........................................................................................................................................13
5W’s......................................................................................................................................................13
Objectives..............................................................................................................................................14
Message.................................................................................................................................................15
Geographic coverage.............................................................................................................................15
Budget...................................................................................................................................................16
Marketing cost...................................................................................................................................16
Financial statement and budget forecast............................................................................................17
Conclusion.................................................................................................................................................18
Self-Reflection..........................................................................................................................................19
References.................................................................................................................................................20
Appendix...................................................................................................................................................25
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Introduction
The development of new product within the market is the most suitable way to provide
innovative products within the market (Strittmatter, & Lechner, 2017). It is used for the growth
of the company and also to fulfill the requirement of the customers. In this, the innovation
management plays the vital role to introduce effective product within the market. My
organization Taira is going to create the innovative product that is Electric Car for the world and
it is entirely my decision and thinking for the creation of this product. The purpose of the paper
is to understand the product development process and also discuss the launch of the product in
the market. The paper also discusses the specification of the product along with the marketing
and the business strategy and also discuss the target market of the firm for their product.
Overview
In the present world decreases in oil refinery causes a huge damage to the environment as well as
for running vehicle too. For this reason, my company has innovated a new electric car model that
is eco-friendly and thus fulfill the needs of customer also. An electric car is one which is run by
electric motor apart from gasoline (Felekoglu, & Moultrie, 2014). Apart from this, the electric
car stored energy by the rechargeable batteries that are recharged through the common household
power supply. In the today’s world, people are more concern about the global warming process
so instead of using diesel car they are using electric for getting rid of this difficulties. Thus Taira
has introduced a new model of electric car that can fulfill all the needs of the customer with their
innovative designs, color, and innovative business strategy. The organization main aim is to
gives the superior quality of product to the market so they make a huge profit locally and
internationally.
Competition
One of the biggest competit6or for my company and the product that new product is the Chevy
Bolt which is also an electric car. The electric car that is designed by Chevrolet is also eco-
friendly and provide quite a similar offer as that of the Taira model. Similar to Taira they also
offer innovative color of their vehicle and having the 10.2-inch digital color touch screen
(Tukker, & Tischner, 2017). Both of this company offers similar type of car model that means
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where Taira electric car goes 22 to 31 miles per charge hour while Chevrolet goes 25 miles
charge per hour with a charging unit of 240/32-AMP and along with it also gives safety
arrangement pack so it becomes one of the biggest competitors of Taira (Yeniyurt et al., 2014).
Since both of the company has introduced similar kind of electric car model so the new business
strategy of Taira is to introduced new electric car model which gives better feature than that of
the Chevrolet electric car model and hence it also helps to increase the market growth locally and
internationally. Apart from this, the Chevrolet electric car model is not familiar to the customer
because of its high cost and thus the Taira want to introduce a new car model so that their market
growth increases.
Problem statement
The pollution level in the world is exceeding its limit and all this occur due to the rapid growth in
the industry as well as vehicles within the country. It became essential for the world to deal with
this issues within the market and for that new and innovative way of maintaining the pollution
level is being introduced (Leenders, & Dolfsma, 2016). To deal with the issue in the market the
most effective and the suitable way is to use products that do not emit carbon dioxide which will
maintain the pollution level of the world and provide a suitable atmosphere in the market.
Product
Description and specification
The new electric car model of Taira has many innovative features that include not only new
design and color but also have many different specifications that can make the model as one of a
best electric model in the automobile industry. This new electric model offers 260 to 340 miles
of a range and having a speed of 2.2 to 4.1 second at 0-60 mph which can fulfill all the needs of
the customer apart from the older electric car model. In the former electric car model of Taira the
customer had to pay a certain amount of amount for charging purposes but in case of the new
electric car model, the charging procedure will be free and unlimited too (Chung, & Kwon,
2015). Along with this, the former model has battery packs of 50 kWh to 70 kWh power that is
needed for charging the battery of the car while in new model they have introduced a new idea of
incorporating the battery pack in the range from 75 kWh to 100 kWh power.
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My company offers three variants of the electric car- 75A, 100A, and S100A. The differences in
between this three variant is that in case of 75A which has a battery pack of 75kWh that goes up
to 489km having a speed of 225kmph and can complete 1km in just about 4.2 seconds, the next
variant is 100A which has a battery pack of 100kWh and can cover 632km having a speed of
250kmph and can cover 1 km in just 4.2 seconds. Apart from this, the third variant is the S100A
which can cover 613 km with a speed of 250kmph and having a battery pack of 100kWh. This
variant covers 1km in about 2.5 seconds with a speed of 250kmph. So all this model are quite
innovative and hence Taira is introducing this new model in the market.
Idea Generation
The idea of the generation of the new product can originate from various sources since they are
not developed in the market. Actually, the idea of launching a new electric car in the market by
Taira has arisen as they want to fulfill the needs of the customer. The idea of this product mainly
comes because it gives a huge profit to the company as well as the customer as by using this type
of electric car the environment does not get so much polluted (Cherubini et al., 2015). Apart
from this the sources that mainly influences the launching of the electric car includes the external
stakeholders, distributors, competitors and also the environment pollution factor that forces the
company to make an electric car model. Hence with the using of petrol and diesel car in present
world which creates a greater level of pollution in the environment that gives rise to global
warming and also it decreases the resources of oil in the world and for this reason the main
motive of the company is to make new car in the market which is eco-friendly and also it can
fulfill all the needs of the people (Nayum et al., 2016).
Concept testing
Before a product should launch in the market, the ideas of testing the product are the main
function of the company so that any problem related to that product should be eliminated and
hence it does not causes any issue to the customer regarding this product. Concept testing is the
stage where the quality of the new product has been tested before coming to the market. The
stage also includes all the idea that helps the customer to buy the innovative model as well as
from this it can also make their business profitable in the market (Brandstätter et al., 2016). This
is the process where company grabs the fruitful idea which can help their business growth in the
market and eliminate all the new ideas that are destructing their market product. Hence the Taira
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company market strategy is to make the electric which to not only decreases the pollution rate
but also makes the people aware of using the petrol or diesel model that can destroy the
environment growth. As the resources of oil and Gas Company have been reducing in the present
world so the discovery of electric car makes the people helpful in the future. Taira company
main motive is that using of the electric car can reduce the use of petrol and diesel car and hence
the resources would not decrease so much as well as the environment does not get polluted by
using this car and hence global warming will be decreased.
Business analysis
Business strategies are made to reduce the complication that occurs between the people and for
this new product has been launched which will satisfy all the needs of the customer. The
marketing strategy is made for preventing the probable risks that ruin the environment and also
help the people to satisfy their needs from the market (Pelsmacker, 2017). Nowadays in the
whole world oil is considered as a limited resource and for this, an alternative resource for using
electricity in the vehicle is not only a smart decision but it also decreases the pollution level. The
innovation of new electric car models not only fulfill the environment issue but also increases the
economic development too. The analysis of the company has seen that with the development of
this new electric car model the business will also grow in the market this is because of the fact
that many employees will resign from their job and join in this industry so thus the business
growth increases on a high rate. Apart from this the idea of making an innovative car also gives
jobs to the employee and thus the business growth also increases (Jensen, & Mabit, 2017). Hence
on developing electric vehicle worldwide, the company plan is to decrease the use of oil in the
vehicle and thus the cost of buying petrol or diesel also decreases. The business analysis includes
the budget rate that is very important to run a business, the financial procedure and the technical
plan which includes the innovative ideas of the technician that makes the product innovative and
different from the other product. Along with this, the market analysis is also an important factor
for the growth of business in the international and global market too.
Market Segmentation
Market segmentation is the method that divided the market into different group depending on the
needs of the customer and also on the growth of the business locally and internationally. The
organization market strategy is to make precise markets orientation so that it become benefited
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from the company as well as the people also. The market strategy will be that it can meet all the
customer needs so that it can grow their business worldwide (Wolfram, & Lutsey, 2016). Apart
from this, there are several approaches to the market segmentation process that includes
geographic approaches, demographic, behavioral, benefit segmentation as well as physiographic
segmentation. The geographic segmentation of the market analysis includes the places that
constitute states, countries, nations etc. while the demographic factor includes variability in age,
sex, education and family size. On the behavioral approach mainly the brand usage includes and
in the benefit segment which includes the benefits that have been achieved by a buyer who is
buying the product. The last segment that has been analyzed by the organization is the
physiographic approach which includes the lifestyle and personality of the people living in the
community. Actually before launching a new product all these factors should be perfectly
noticed so that the business can gain a huge profit in this particular product from the market
(Zivin et al., 2014). After the completion of the segment procedure, the main aim of the
organization is to make market opportunities and also make a right strategy for positioning the
product and services throughout the market so that the product can place in a good position on
the market and hence its business growth increases.
Cost and expected sales
Since the product is an electric car so its cost will be higher than any other product. For this, the
company has made an initial opening cost of the product which is very important for running the
business (Ehsani et al., 2018). The cost that has been considering by the company for making the
product includes the cost of advertising and marketing that is 100,000 dollar, overheads cost
which is 80,000 dollar, cost of equipment that includes 150,000 dollars and production cost that
includes an amount of 200,000 dollars. So the total expenses of the company of making the new
electric car is an amount of 530,000 dollars. According to the company business strategy, the
production of the new car in the market gives a huge profit in the coming next years.
According to the company calculation they can expect a huge amount of profit in the next few
years. The total sales made by the company in the present year is 500,000 dollar and according to
their business plan, they can gain a profit of 800,000 dollars in between 2023. As per the
business plan the expenditure from different procedure will be like that- 110,000 dollar from
advertising and marketing, 90,000 dollar from overheads, 100,000 dollar from equipment and
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200,000 dollars from production costs and all of them includes a total expenses of 300,000 dollar
which is about 30,000 dollars less than the present year and hence they gain a huge profit in the
coming years.
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Market risk and benefits
The Taira is one of the leading automobile industry in the world and its next innovation is to
make the electric car in the market. For making this car some risks and benefit are also present as
it a new product launch in the market. The benefits of using this car in the market are as follows:
1. No requirement of fuel: Since the new model is an electric car so it runs through electric
charging procedure and hence no gas is required for this product (Yuksel, & Michalek,
2015). Since the fuel is very costly in the present market and their resources are limited in
the nation so the company main motive is to introduce this car in the present world so it
gets benefited the customer as well as the environment too.
2. Savings: These cars are quite cheaper than the diesel or petrol car and it is the only car
that can save money in the life (Ward, & Sobek II, 2014).
3. No emission of gas: The electric car is eco-friendly because they run by charging
through the current and hence it does not emits any toxic gasses or smoke that makes the
environment polluted and thus produces a healthy green climate throughout the nation
(Borén et al., 2017)
4. Safe drive: before launching to the market the car has undergoes various fitness and
testing procedures that decrease the risks of driving on this electric car (Bohnsack et al.,
2014). Apart from this airbags are also present in the car for safety purposes.
5. Noise pollution reduction: since the car is running through electric so the noise emitted
from the car is limited and hence they provide a smooth driving than that of any other
fuel cars (Nilsson, & Nykvist, 2016).
Apart from this, some risks are also present in the development of the electric car in the present
market. Those are as follows:
1. Points of recharging: the stations of electric fuel are not much developed and hence
there are not many places for recharging this car (Madina et al., 2016). Thus people
facing the problem of not having any charge during road trips and hence it is one of the
main risks of this car.
2. Longer recharge time: the car takes about 4 to 6 hours to get fully recharged while in
case of fuel car it just takes few minutes to pour oil in the tank and hence it is also a risk
of this car in the market.
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3. Battery replacement: the battery of the car should be replaced depending on the usage
and type of battery. But generally, the battery life of this car ranges from 3 to 10 years
and after that, the battery should be changed so that the car should run properly in roads
(Engelken et al., 2016).
Customer profile
Target market
Primary target market
The main target market of the company is to include people those who love traveling in various
parts of the nation (Nieuwenhuis et al., 2017). The target market of the company also included
the car lovers those who are very fond of the car and traveling too. They targeted the people in
ages between 20 to 55 years which included male, female and the aged person also. They do not
give any objection of giving a car to both single and married person but their one clause is that
the person should be stable and well established this is because of the fact that the electric car is
somewhat costly product and it can be afforded by stable people only. Noticing all these
purposes they make the primary target market strategy that is beneficial to the company as well
as the business.
Secondary target market
The company secondary target market will lies on the people those who want the car for fuel
efficiency and want to make the environment eco-friendly and free from pollution. Their main
target is the married couple that does not want to spend the huge amount of money in purchasing
a car and this includes about 71% of the whole nation. Their next target is male those who are
interested in traveling and want to save money for future use and this includes about 65% of the
nation. Apart from this they also included the millionaire and businessman those who love nature
and willing to go to road trip with their family without affecting the environment (Nurhadi et al.,
2017). They mainly include people having an age range in between 25 to 45 as these people have
an eager to buy a new product that is eco-friendly and due to this target plan the business become
populated in the market.
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Market statistics
The market statistics included the growth of the business worldwide so that the company would
gain a huge profit in the market. The growth of electric car in the market will increases the
production and sales of the automobile as well as the income of the organization also increases as
they fulfill the needs of the customer. As the percentage of electric car making industry is very
small in the current stage so making of the new car of Taira will give a huge profit in the
business (Martins et al., 2015). Since the fuel resource is quite limited in the present day so usage
of making the electric car by the company gives a huge profit. Apart from this, the car is eco-
friendly as it does not possess any type of emissions that can affect the environment and hence it
is used by the younger generation for the detection of global warming. The electric car, on the
other hand, does not produce any sound while moving so the noise pollution would also reduce
on using this type of car. One more important factor that can increases the market growth of the
car is the removal of tax in this car and also offering free charging of the vehicles at various
electric points.
Key strategic decision
On developing the new electric car the organization makes some strategic plans for the advance
of the product at a huge rate throughout the whole nation. The strategic analysis of the company
on the basis of the product includes reduction of the risks and resources, access to new market
and also to gain knowledge about the needs of the customer. The workers those who are involved
in this production process should have the technical knowledge about the product so that they
can make better innovative model than the other electric cars (Helms et al., 2016). It is also seen
that the company has to fulfill the way on which the customer should be satisfied with the newly
launched product and also make them understand the use of this product which makes the
environment pollution free as this new electric car runs with electric, not by fuel. As the fuel
resources are decreasing so one of their strategies is to use this car for reducing global warming
also.
Test market
Once Taira developed their new product within the market along with the marketing strategy
they eventually took part in the market testing. In this process, the company introduce their
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