Switching Up The Marketing Strategy...

[CompTrex]

I think the current demographic target is right on - however there are a lot of missed opportunities here as well. The geek factor should appeal to the "early adopters" who can't resist the very latest phone, tablet, or whatever gadget. They won't be a loyal market sector, but should be good for a large number of "first-wave" sales. Tip from Apple: bring out a new version every eight to ten months at highly inflated prices after months of promotion. Cut to slightly more acceptable prices only after the current model is "obsolete". Front end a whole culture around your product.

The market is going to depend a great deal on "positioning". Honda killed with "You meet the nicest people on a Honda!" countering the public perception that motorcycles were for biker gangs. They changed the perception of motorcycle owners forever. Similarly Prius positioned their vehicle as environmentally (and socially) responsible rather than as a geekfest. They're still selling every one they can paint. Lexus capitalized on their limited production capability, making the marque something exclusive - not even selling in some states - until they could build their Canadian assembly plant. Exclusivity created a market among the MB and Bimmer set, then Canada's production by 2004 filled in the gap. Now they're everywhere.

The youth market responds to what's cool. That can be manipulated through advertising - placing a vehicle in a socially adept setting. Economy won't sell to this bunch, instead sell quirkiness, fun, and style. They don't care if it's coal-fired, they buy what they think is hip. Peer approval is what they want.

Targeting college kids could be a good idea, particularly for those in state schools and not residing on fraternity row. There are still plenty of kids who'd like an affordable NEW car that will definitely turn heads on campus - but they are the secondary market. The primary will be the parents who would come closer to affording a new sub-$10K vehicle than a $50K+ one . . . particularly if they are embarking on the education of a handful of "stairstep" kids.

The traditional sales motivators are youth, beauty, sex, and romance. The experts say you can sell a mud puddle with these factors.

Except by initially targeting the 40 plus crowd, you've - in the kids minds - eliminated the coolness factor. If I think it's cool, you can bet that my kid, just on principal will think it's stupid.

 

[McBrew]

And I may be wrong, but I don't see an Elio getting 600K miles on it. That's impressive.
A little strange that after you sold your car you still keep in touch to know how many miles are on her, but I'm sure there's a story behind that!

No, the Elio probably won't... nor will most modern-day Mercedes.

The reason I know the car is still on the road is that my father still services it. I saw it in his garage a few months back. Apparently, it is costing the new owner a pretty penny to keep it going at this point. It is starting to have weird problems due to age, like a broken sway bar (the reason it was there when I saw it). She bought the car from me for about $3,500, but she has spent nearly $10,000 keeping it on the road. The engine and trans are still original, though.

 

[NSTG8R]

Okay, a couple of CG dancing hamsters and some hip-hop music.
[just remembered when my daughter was young she had a pet hamster. We had if for like 6 months before my wife discovered it only had three legs! Got around fine though....as will the Elio.]

 

[McBrew]

Except by initially targeting the 40 plus crowd, you've - in the kids minds - eliminated the coolness factor. If I think it's cool, you can bet that my kid, just on principal will think it's stupid.

I would have thought the same thing... but look at "cool" cars like the Scion xB (gen 1), Nissan Cube, and Kia Soul. These are HUGE with hipsters and younger folks, but you are just as likely to see a 60-year-old woman driving one. In fact, my mother-in-law drives an xB, while my own mother drives a Cube.

Kids these days don't seem to care that much about cars. They want one that looks cool, but other than that, they usually don't know much about them. I have a few young people working for me, and most of them don't know how many cylinders their engine has. They don't drive much, either. These kids talk and play with their friends online. They don't hop in a car and drive 100 miles to the ocean like we did when we were 16.

 

[RUCRAYZE]

I haven't checked recently, but apparently they, at least used BMWs are pretty affordable.

almost as old as the kids that buy 'em, and as you know no 3yr warrantee. It's too cool even for the kids not to take notice, but first they have to take notice. I knew of the Slingshot, but it wasn't till a pop-up here got me into it. and living here ins florida, and 3x the base price, and probably crappy mpg, I think in the h.p. it's no contest, and for sure it's a real motorcycle - yea I know, no a.c. but life's a trade-off, no elio I'll move on to the next toy.

 

[bowers baldwin]

Well, a 2-3 year old high-end BMW is going to be expensive, true...

However, when I was 16, I bought a 9 year old Mercedes for about $4,000. That car was not only safe, but also very reliable and cheap to keep on the road. My last Mercedes (other than my Sprinter van) was a 1983 that has 410,000 miles on it when I sold it. It now has well over 600,000 miles on it.

With inflation, that $4,000 would be about $6,650 today (corrected for inflation). Pretty close to the projected cost of an Elio.

Still more than an Elio, plus more to insure and possibly less gas mileage. And I've always said there is no such thing as a safe car/truck.

 

[Lil4X]

Kids these days don't seem to care that much about cars. They want one that looks cool, but other than that, they usually don't know much about them. I have a few young people working for me, and most of them don't know how many cylinders their engine has. They don't drive much, either. These kids talk and play with their friends online. They don't hop in a car and drive 100 miles to the ocean like we did when we were 16.

So I understand . . . kids (and even twenty-somethings) prefer to live at home, and not own a car, but instead buy the latest phones and tablets, where money is no object - heck, why not, they have no other expenses! I've met several in the online community who purchase a new phone about every two months, just to stay trendy. These are the same people who send and receive over 800 texts per day, but never make a phone call. Their thumbs must be huge!

To me, a car was freedom and getting out from under my parent's roof was it's sincerest expression. My smartphone is a business tool, not a social appliance. It is truly a brave new world.

 

[bowers baldwin]

So I understand . . . kids (and even twenty-somethings) prefer to live at home, and not own a car, but instead buy the latest phones and tablets, where money is no object - heck, why not, they have no other expenses! I've met several in the online community who purchase a new phone about every two months, just to stay trendy. These are the same people who send and receive over 800 texts per day, but never make a phone call. Their thumbs must be huge!

To me, a car was freedom and getting out from under my parent's roof was it's sincerest expression. My smartphone is a business tool, not a social appliance. It is truly a brave new world.

 

[Rickb]

Except that I haven't found a single person under 25 that is remotely interested in this vehicle. They think that it's ugly and silly. They'd much prefer their status symbol of a BMW or a WRX or a jacked-up truck than this new, innovative, money saver.

I think the under 25 market will be huge with all the options to personalize if the Elio gets built. Many people of all demographics think the Elio is ugly & silly just like some people feel a BMW is a status symbol and silly.

I have test driven nearly every BMW Model and loved the ride and drive. I would buy one not for status but because it was the ultimate driving machine. I also test drove the WRX and holy crap what a hoot, not status, but an appreciation for the vehicle. Low % of people buy a car for status only and those that do probably can't afford them.

 

[Karg]

Not long ago I taught at a vocational school. And I found that kids still like cars. The problem is, most are pain in the butt to work on or even try to modify.
I think the Elio would be a modifiers delight. I can't wait to put my Harpo Marx horn on mine.

To anticipate any future comment, yes I taught Sarcasm at the school.