SWATCHMOBILE CASE STUDY

A Canadian company, Magna International, starts by welding the structural components, which are then painted by Eisenmann, a German company. Students will suggest that the core product, what MCC is really selling, is inexpensive, basic personal transportation. Into which consumer product classification does the Smart Car fall? Dealers will also have to establish two other points where consumers can get information about the car, one in an airport or railway station and a second in a shopping center. What about this small car should interest consumers. To help accomplish all this, the engineers designed a cc, three-cyclinder engine that would run on gasoline, electricity, or a combination of the two and weigh one-tenth the amount of a typical gas engine while achieving equal power.

Students might also suggest different names for the car to reinforce the positioning. The second phase of distribution will cover the United Kingdom, and the United States and other right-hand-drive countries. Students will suggest that the core product, what MCC is really selling, is inexpensive, basic personal transportation. This fits with the contrarian positioning. In addition, many car companies were beginning to work on concepts for smaller cars.

These companies are chasing Renault, which introduced its Twingo model minicar in and is sellinga year, about 2 percent of the West European car market.

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swatchmobile case study

They feared that large cities might restrict conventional cars due to pollution concerns. Sorry, but copying text is forbidden on this website.

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Students may suggest that the target market may be too broad. There are plenty of skeptics who do not believe a tiny, two-seater car with almost no luggage space will make it in the highly competitive automobile market. They conceived a two-seater car that would combine the safety features of a Mercedes with the funkiness of a Swatch watch.

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What are the actual and swathmobile parts of the products? The company is headquartered in Biel, where it has 80 people on its staff. The Smart Car does not have packaging in the traditional sense, but students may suggest that the plastic panels are in a sense the package.

swatchmobile case study

As noted earlier, we also do not know what MCC will do about product-support services, but we would assume that it will offer competitive basic warranties.

View our pricing guide or login to see prices. The instructor may wish to note that Honda, Toyota, and Nissan all used new brand names. At a stage in the product life cycle, the sales and share price of the Swatch watch started levelling out; hence Hayek, being a marketer, realising the above fact, started looking into the car market to develop a new and innovative product.

Students will note that the car does not carry the brand name of Swatch or of Mercedes. His automotive vision was dismissed as being overly optimistic; less ambitious attempts at extending the Swatch brand name casf new categories, including a brightly colored unisex clothing line, had flopped.

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The text indicates that selective distribution is important, and the case suggests that MCC is working hard to find good dealers who meet very specific and demanding criteria.

Students will probably be skeptical about the need for this car, syudy it may be necessary for the instructor to encourage them to examine the marketing strategy and help MCC make it successful. Mercedes has since increased its ownership to 81 percent. This is a diversification strategy in which they use the knowledge of their partner, Mercedes.

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Students will probably react very negatively to the concept of a car with plastic sides. However, if students pursue the funky position, they might follow this by arguing for selecting unusual locations swatchmobild the dealerships in order to emphasize that the Smart Car is different.

Swatchmpbile addition, many car companies were beginning to work on concepts for smaller cars. Students may suggest that although Swatch and Mercedes have not put their names on the car, why not promote the fact that this car is the unlikely product of this unusual combination.

The Swatchmobile: Any Colour Combination, Including Black | The Case Centre, for educators

Because consumers purchase cars less frequently, they often have less knowledge about what cars are available and what the features zwatchmobile benefits of competitive models are. Sales got off to a slow start amid concerns about the vehicle’s stability.

Its challenge is to produce a car that will meet safety and environmental regulations but be affordable for the target market. The second phase of distribution will cover the United Kingdom, and the United States and other right-hand-drive countries. Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us?

Because the Smart Car will have a relatively low price for a new car, MCC will have to convince customers that it offers acceptable quality and reliability for a car. How about receiving a customized one?

All fields Reference no. These companies wanted to design smaller cars that produced less pollution. Go to advanced search.