Case of SMART(Diamler) cars vs Kia, Scion in smart car segment

1. THE SMART CAR
Anastasia
Alexandre
Axel
Prayag
Simon

2. SMART POSITIONING AND COMPETITIVE
ADVANTAGE
• Segment: People who want a small car for commuting
• Target Group:
• Urban upper middle class
• Need to be cool (regular compact car are boring)
• Sponsorship at young, urban events (customer targer are young people with money living in a city)
• Customer targer : young / living in the city (easy to park) / fashion foward / car about the environement
(small car are fuel efficient)
• Positioning: High end design & technology

3. Smart's fortunes in the US
With Penske:
+
• 300 franchised dealers
• Distribution
• Network
• Visibility
• Sales opportunities
-
• Less visibility on internet
• Bad communication
With Mercedes-Benz​
+
• Better communicatoion
• More visibility on internet
• Better brand image
-
• Less sale point
• Distribution less effective
• Reduced Network
Shift in strategy, communication should be way more effective in the future thanks to better communication
campaigns. Indeed they want a better brand image to create feelings and emotion. Sort of balance between
communication and distribution.

4. Smart vs Honda, Scion, Kia

6. Target Customers
• Young Generation
• Urban People
• Parking problems
• Cares about Environment
• Fuel Efficient
• Prices in the range of $10,000 - 15,000
Exclusive Focus: Western Market, Diamler customer engagement

7. Timing of Launch
The Smart’s US launch is not too late, because:
• Smart brand is capable of sustainable profitability
• Company is trying to reduce the cost of production (and their attempts are quite successful).
• French plant is shorter for the new model of car (20%)
• 21 century’s trends and inbound marketing
• Competition with the direct competitors can be won
• Social Media
• Car shall become very popular among young people who tend to live “a flexible life” and care
about the environment
• Traction has already begun, in coming days it will be much more successful

8. Online and social media strategy
• Today their strategy are more on social media because of their target (young people living in
cities). They are in Facebook and twitter.
• Diversification of the strategy:
• Creation of an app (with news, advantages of the brand, most beautiful personalizable cars etc.) --
> increase of brand image
• Twitter challenge for the most personnalizable Smart with an hashtag challenge. We can elect
winners and give them like promos on gasoline etc. --> two ways communication that allows the
customer to feel connect with the brand.
• Their facebook page has more than 100,000 fans so we can develop an online streaming strategy
with Facebook Live. We can also think in creating a Snapshat channel. The streaming app are the
one that are being bigger and bigger now. --> CRM strategy
• Cooperation with innovative & new locals: The target being a people living in the city under 30
years old, we can cooperate with some "fancy" bars/restaurants etc to make them win some
promotions.

9. T H A N K Y O U