ipro 356: plug-in hybrid electric vehicle - Community List - Illinois ...

Isopomoto IIT EnPRO-356, Fall 2006
2.5 Customer Analysis
The demand for plug-in hybrids in particular is growing every day, with non-
profit organizations such as California Cars Initiative (Cal Cars) taking a step forward.
Companies like Toyota, DaimlerChrysler and Ford have already displayed their interest
in this technology. The plug-in kit manufactured by Isopomoto can be retrofitted easily
into HEVs, thus making it convenient for the customers to incorporate this efficient
technology into existing vehicles. So far, three potential customers have been identified.
I. Direct Consumer (Individuals) – Hybrid car owners can directly get the plug-in kit
retrofitted into their vehicle. The advantages of marketing to this customer include
greater long term profits, as well as control of quality and marketing. The
disadvantages include high business and financial risk, higher operational cost and
reduced short-term profits. Marketing to the direct consumer also does not guarantee
steady sales by which a financial model could be based.
II. Direct Customer (Public and Private Fleets) – Examples include the Chicago Transit
Authority. This market is highly desirable because it promises a steady and
predictable supply of hybrids for conversion. The mass customization will help
Isopomoto standardize its retro-fit process.
III. Indirect Customer
i. Licensing the technology to major car manufacturers — No exclusive
contracts will be allowed. The disadvantages of going this route include
high business risk because success is linked to the ability of licensee to
procure a steady market base, restriction on distribution options and
restricted market access. On the other hand, advantages include immediate
brand acceptance and relative ease of entry into international markets.
ii. Partnering with a global Auto Company — Setting up a retrofit operation
just outside the production unit where the finished HEVs could be converted
into PHEVs. This type of marketing is advantageous because it offers
immediate brand awareness and greater long term profits. The
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