New Product Research Activity

New Product Research Activity

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New Product Research Activity

PEST Analysis

Demographics

  • The ability to travel and visit areas without delaying due to traffic jams appeals to both females and males. They would both prefer to adopt this new form of technology due to its efficiency.
  •  The working class is most likely to adopt the use of flying cars. Mobility among the working class is most important for them and providing a means that increases their mobility would definitely be appealing.
  • Developed countries are the target markets due to affordability and the ease with which they adopt technological developments.
  • People living with disabilities are most likely to espouse this form of transport since it would improve their mobility.
  • Flying cars target individuals between 25 and 40 years. This age group has enough resources to purchase the car and most importantly the group, which best integrates technology into their daily lives (Hunter, 2014).
  •  People living in the working class, residential and commuter zones would best accommodate flying cars due to the distance they cover when travel to their respective working areas daily and the huge traffic jams they experience when going to work.
  • The ability to purchase these new models of cars varies between individuals and since flying cars are relatively expensive, only people from the high-end markets would be able to buy them.

Psychographics

  • The manufacturing company’s reputation regarding their production influences the customers’ attitude towards any of their merchandises. Thus, having a successful historical background would earn the customers interest.
  • Most customers have a tendency of staying loyal to their preferable manufacturing companies; hence, the targeted market mostly encompasses its client base.
  • Actualizers are receptive to technologies and skeptical to advertising since they enjoy fancy finer products. People with such lifestyles would definitely adopt the flying cars together with achievers, who value premium products.
  • Opinions held by tech-savvy individuals always depend on the specifications and efficiency of the product, thus, being a target for the market (Green, 2010).
  • The interest towards a particular product depends on the knowledge they have regarding the class with which the merchandise exists, hence people who already own cars might be interested.
  • The value held towards technological innovation influences one’s ability to purchase a new product in the market. Hence, those with a good taste for non-flying cars form part of the target market.

SWOT Analysis

Strengths

  • Low maintenance and operational costs by having a single released model benefits the economies of scale.
  • Presence of huge untapped market since few models is present.
  • Being new into the market benefits the company due to the presence of travels with the need to experience its efficiency (Flying cars, 2014).
  • Low operational costs since individuals can purchase them online.
  • Strong financial situation of the company enables it to produce more products.
  • Strong management group means more ideas into the product resulting in a unique flying car.

Weaknesses

  • High operational costs resulting from the immense investments made in purchasing equipment necessary for manufacturing flying cars.
  • Increased fuel prices lead to increase operational costs.
  • The prototype is still a weak brand and most individuals are not likely to purchase them.
  • The poor supply chain of products discourages the production of flying cars.
  • Lack of an online presence affects its sales since the current markets shift towards internet advertising.
  • The company lacks diversity, which affects the customer’s preference to purchasing the flying cars.

Opportunities

  • The company offers a unique means of transport that attracts individuals with the need of increased mobility.
  • Being an innovation into the market provides it a chance to attract more customers.
  • The product has room for expansion since it is still new in the market.
  • It has asset advantage to start up the manufacturing of prototypes.
  • It is an emerging product and its market is likely to increase
  • The company employs acquisition, thus, having the ability to control its business.

Threats

  • The government has not yet legalized any flying cars into the society and this would not be an exception.
  • Competition arises from other companies, which had already created their prototypes.
  • The fluctuating exchange rates influence the pricing of the models by elevating them so people would tend to buy cheaper models.
  • Price war between companies making flying cars forces the manufacturer to regulate their selling prices.
  • The availability of cars acts as a substitution to the product with which customers still prefer them.
  • Taxes imposed on the flying cars would be relatively higher since they are high valued products.

Competitors

The Indago VTOL flying car model

Features

  • 4 passenger seat
  • In folding wings
  • Produces minimal noise
  • Retractable propellers
  • Cruising speed, 200mph
  • Automatic parachute system (Coxworth, 2013).

Price

$279,000

Strengths

  • The flying model already has permission for civilian use.
  • It is less noisy

Weaknesses

  • It would be relative expensive
  • It requires more landing and taking off space.

 

Areas Hindering Market Penetration

  • High pricing
  • Lack of taking off and parking spaces
  • Poor marketing

 

 

References

Green, G. W. (2010). Flying cars, amphibious vehicles, and other dual mode transports: An illustrated worldwide history. Jefferson, N.C: McFarland.

Hunter, S. (2014). Flying car 65 success secrets: 65 most asked questions on flying car : what you need to know. S.l.: Emereo Publishing.

Coxworth, B. (2013, May 6). Terrafugia announces its plans for a VTOL “flying car” Gizmag. Retrieved from http://www.gizmag.com/terrafugia-vtol-tf-x-flying-car/27402/

Flying cars: Taking off? (2014, May 7). The Economist. Retrieved from http://www.economist.com/blogs/babbage/2014/05/babbage-may-7th-2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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