Toyota RAV4 EV

DePaul University Spring 2012- Consumer Behavior

Sarah Pabis- Jake Saltzman- Vanessa Guylas- Pratik Kalaria- Roksana Szweikowska

About Toyota RAV4

Will be available late Summer 2012
Comes with standard 120- volt charging cable Real world driving range- about 100 miles

Fitted with RAV4 V-6 engine

0-60 in 8.6 seconds Powered by Tesla

Research Objectives
To determine what motivates consumers to prefer hybrid over electric To understand which features are most important when purchasing car To investigate how consumers feel about higher initial cost To determine consumers overall perception of electric cars To understand consumers reservations about electric vehicles

The Survey
Surveyed 25 people
48% female, 48% male, 4% prefer not to say

12% age 20 or younger, 56% age 21-30, 20% 41-50, 12% 51-60 Asked other demographics such as community, level of completed education, combined annual household income, marital status and number of children 40% of respondents fill up gas tank 1-2 times per week

The Survey
75% of males would consider purchasing electric car
67% of females would NOT

71% of suburban respondents would consider purchasing an electric car 100% of respondents with college degree concerned about the environment 44% of consumers have had to adjust driving habits because of high cost of fuel 50% of consumers with children would consider purchasing electric car

The Survey
Factors most important when purchasing car:
21% price 15% gas mileage 13% brand

9% type of vehicle

48% of respondents would consider purchasing a car, but would need more information

The Interviews
Three respondents, all use cars on daily basis
2/3 were overall satisfied with their vehicle 2 mentioned change in driving behavior
Search for cheapest gas Change daily pattern

Spend between $20-$70 per week on gas All three didnt go far for daily routine, one stating never leaving 3 miles All 3 admitted to having little or no knowledge about electric cars

Projective Techniques
Used sentence completion and word association techniques If I say Toyota, what do you think of?
Bad breaks, good quality, Land Cruiser, Japan, Reasonable

What do you think when I say electric car?

Slow, ugly, money, drives short distance, small

The most important thing to me when purchasing a car is.

Safety, performance, styling

On a weekly basis, I generally spend.

$20, $40, $70

Observations
Observed Tesla Motors dealership in Oakbrook, IL
Average consumer couples (heterosexual)
Age 35-55 Shopping bags: Macys, Nordstrom, Tiffany & Co, Apple, J. Crew, Coach, The Lucky Brand & Banana Republic Apple iPhone & Starbucks

Initial reaction
iPad Front & rear trunk space

Length of stay:
Most under 10 minutes 10-15 minutes Some for 30 minutes or more

Observations
Concerns about cars:
Performance: Can it handle extreme weather conditions? Acceleration? Limitations: What if I cant find a charging station? How long does it take to charge to 100%? Can I charge it at my home? Cost: How much will I save on gas per year? How much does maintenance cost?

Clients Problems
Poor perception of electric cars
Societal dependence on oil Consumer doubts about product

Segments- 1
Post grad and young professionals
Live in urban environments Environmentally friendly Age 24-35 Unmarried, no children Commute to work is short Active in green efforts Recycles Rides bikes Lives in greater L.A area Up to date on consumer trends Large network of reference groups Semi active in charities and active work

Segments- 2
Families
Dual income Traditional nuclear family Two elementary school age children

Children involved in extracurricular activities

Live in suburban environments- Calabasas, CA. Owns their home Owns more than one car

Life active, healthy lifestyle

Both parents have college degrees Pass down eco-friendly behavior to children

Segments- 3
Empty nesters
Retired or near end of career Age 55 and up Active members of community

Tech savvy, early adopters

Spends leisure time doing activities such as golfing, biking Love traveling to new places Main use of internet is to find deals, compare prices

Active in lives of grown children and grandchildren

Members of local country club

Target Market Profile

Who is the Rav4 EV Family?

Suburban family
Dual income household Own their home The average family has two children ages 9-12 The Rav4 EV family is active in the green movement they recycle, use re-usable water bottles, and work to eliminate excess waste from the home. Average combined yearly household income between $80,000 - $125,000

The Toyota RAV 4 EV Family:

Located in Calabasas California, the family lives an active lifestyle. The family spends a lot of time outdoors and doing family activities

Where the family calls home:

Calabasas, California Data:

The average income of a family in Calabasas is: $116,000 Average household size is: 2.87 Percent of residents with a Bachelors degree or higher: 61.3% Average home price is: $994,800

What we know about Mom:

Does not travel more than 20 miles from home on a given day Age between 30-45

Works in real estate or a career with flexibility to spend more time with the kids
Active on social media platforms to maintain relationships with friends and family Member of philanthropy associations geared toward enriching the community Tries to keep her family healthy and active

What the target Mom has to say:

I would love a car with a sun roof, and heated seats When Im not busy with the kids I love running, and working with local charities and organizations Facebook is a great way to stay connected I need a lot of cargo room for all the things I have to take along with me, from groceries to hockey bags, my car needs to be able to carry it all I want a car thats large enough for the entire family I try to feed the family only organic and wholesome healthy foods

A GPS system is extremely important

The car must be safe, the safety of my children is my number one priority

What we know about Dad:

Age between 30-45
Works for a large corporation or owns his own business. Maintains investments, and stock portfolios to make sure his family is financially sound

Runs in marathons, plays golf, enjoys fishing

Keeps an eye out for current trends, likes to be ahead of the curve and have the newest products Donates to charities and organizations that focus on preserving the environment

I like a car that not only performs well but looks impressive

What the Target Dad has to a heating Leather seats, and say:

steering wheel would be nice

I We need all my errands like to get an SUV, one that is done in one day powerful and able to handle all of our cargo needs I always like to have the newest product

I like to maintain a healhty lifestyle to keep up with the kids When I drive around clients, I want a car thats going to impress them In my spare time, Im usually on the golf course or taking the kids hiking or fishing

We need an SUV, one that is powerful and able to handle all of our cargo needs

Lets not forget about the kids:

We need room for our dog Charlie Im on the baseball and basketball team, I have games every weekend Sometimes, my sister drives me crazy, I like it when our cars are big enough for me to have some space between me and her Mom and Dad are teaching us how to recycle

After school Im either at ballet class or softball We always have healthy snacks in the house

I want a lot of room for me and my friends

Consumer Insight
Many weary about capabilities of electric cars
Speed Range

Concerned about occasional road trip

Prefer a hybrid vehicle over an electric vehicle

Many agree that current environmental crisis is growing and that everyone in society needs to do their part Many consumers desire all amenities in their vehicles
GPS navigation

Safety is primary concern for target market

Communication Recommendations
Position: everyday, family friendly, eco-friendly vehicle USP: first all-electric SUV 4 Ps:
California and Florida Longer range battery pack Raise awareness of tax breaks Educate dollars per year saved on gas

Promotion:
Social media campaign following users on where their RAV4 EV takes them Billboards, print ads on public transportation