I’m studying for my Marketing class and need an explanation.
Strategic Marketing Final Examination
Instructions: Please provide detailed answers to the following case questions using class notes, information obtained from the text, class videos, and use of examples to support your answers. This is an essay test. Just listing out bullet points from slides without applied discussions will be insufficient. Make sure you answer all the parts of each question.
Fisker Ocean Business Case
The electric car market is gaining traction (pardon the pun!) with consumers as there is a need and desire for clean energy and a transition away from fossil fuels. Presently, Norway is a recognized leader in the adoption of electric vehicle technology (EV – hybrids), and there will be a continued push in Western and Eastern Europe in the future for EVs. However, the US and Canadian markets could be slower to adopt EV technology due to personal consumer attitudes, the longevity of batteries within hybrid models, and perhaps the internal supply of oil and gas as an energy source. A leading manufacturer, Tesla, has somewhat begun to reconfigure consumer perceptions over the last 5 years for EVs, and many believe that EVs will still be the preferred mode of transportation in the future as the green movement continues to gain popularity. One drawback of EVs has been the price such as Tesla pricing, however consumers are seeing that total cost of ownership is being reduced in terms of overall maintenance and fossil fuel costs. There is still a lot of skepticism in purchasing EVs which will create some obstacles for Fisker with the new launch of its “Ocean” EV. Review the following video for background information about electric car technology.
Also, refer the following article relating to the future of EVs over the next decade:
Fisker Automotive (parent: Karma Automotive) has just announced the launch of its new “Ocean” EV model during a public meeting in California in early January 2020. Fisker’s positioning of the Ocean centers on the mid-market consumer who desires clean energy at an affordable price. Fisker Inc was originally started as a US company in California, but more recently was acquired by a Chinese conglomerate. There will be negative perceptions among North American consumers about Fisker’s ownership structure perhaps since there are loyalists for American brands such as Ford, General Motors, and Chrysler. This consideration will have to be taken into account with Fisker’s brand management team. Please refer to the following links for more information on this unique automobile.
Watch the following Youtube video of the unfailing on Jan 5th, 2020. Skip to 1:06 on the video for the start of the dialogue:
Fisker Automotive has hired you as a marketing consultant to assist with the development of its promotional strategy for the Ocean. In a recent meeting, the senior management team raised several key questions in relation to the Ocean and followed up with written questions for your firm’s response. In considering the principles that you have just learned in the Strategic Marketing class, provide your written responses to the board’s question in specific relation to the “Ocean”.
I have uploaded the questions that need to be answered. Please follow directions that are above for this essay test. Here are the essay questions that need to be answered:
a. In view of the product life cycle, consider the progression that the Ocean will undergo during by stage. Discuss the 4 P’s for each stage as they apply to the Ocean’s product journey. Be specific in describing market conditions for each stage. What are the types of buyers will Fisker encounter for each stage. How does the PLC model align with the Boston Consulting Group model in reference to the Ocean?
b. Is the pricing and advertising strategy aligned correctly in the introductory phase of the life cycle based on the current positioning (see websites and videos)? Which is most appropriate? Skimming or Penetration? What is the current approach and what are the pros and cons of the current approach taken? Does the approach fit the current market environment for Ocean in your professional opinion? Why or Why not?
What are the basic building blocks for the Consumer Based Brand Equity model in relation to the “Ocean”? Describe the prescriptive steps used in building the CBBE strategy.
Describe the common product decisions that Fisker will have to make eventually over time to the Ocean as competition enters the market. Describe these product decisions in detail that may be expected.