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Peugeot Ion: Rebuild an Innovative Product

In: Business and Management

Submitted By qjeanbaptiste
Words 11707
Pages 47
* CONTENTS I. Internal analysis 4 A. Key facts 4 B. PSA in brief 4 C. Company overview 5 D. The electric vehicle 6 E. Focus on Peugeot Ion, the tangible product 6 F. Services 7 II. Macro 7 A. Ecological and Economical factor 7 B. Political factor 8 1. Legislations and government interventions 8 III. Micro 8 A. PURCHASE behavior: environmental vs. economical concern 8 B. Competitors offer 9 1. Specialist carmakers 9 2. Renault – Nissan 9 C. Substitutes products 10 1. Other concepts of “green cars” 10 IV. SWOT 11 A. Strengths 11 1. Strong research and development capabilities 12 2. Increasing operational performance 12 3. Partnership with Mitsubishi 13 B. Weaknesses 13 1. High indebtedness 13 2. Autonomy/performances and Charging battery time 14 C. Opportunities 14 1. Strategic alliances 14 2. Poised to benefit from growing automotive markets in China, Latin America and Russia 15 3. Growing worldwide demand for more environmentally friendly vehicles 15 4. Stringent environmental regulations 16 D. Threats 16 1. Intense competition 16 2. Foreign currency risk 17 V. Segmentation 17 A. Criteria of segmentation 17 urrent target of the Peugeot iOn 18 VI. Current strategy 19 A. Objectives of the Group 19 B. Competitive advantage 20 C. Competitive environmental strategies 20 D. First Mover Advantage 20 E. BCG Matrix analysis 21 VII. Questionnaire results 22 VIII. B TO B STRATEGY 23 A. Introduction 23 B. Objectives 23 C. Target 23 D. Positioning 24 E. Product mix: 24 F. Price 25 G. Communication 26 H. Distribution 27 IX. Recommandations 27 A. B2C Strategy 27 1. Segmentation 27 2. Target 28 3. Positioning 28 4. Marketing mix 30 X. References 34 XI. Appendixes 35 Appendix 1 : Questionnaire : Electric cars 35 Appendix 2: The different product layers 40

Internal analysis
Key facts
Head Office PSA Peugeot Citroen S.A.
Paris Grande Armee
75, avenue de la Grande Armee
Paris
75116
FRA
Phone 33 1 40 66 55 11
Fax 33 1 40 66 54 14
Web Address http://www.psa-peugeot-citroen.com
Revenue / turnover 56,061.0 (EUR Mn)
Financial Year End December
Employees 198,220
Paris Ticker UG
PSA in brief
PSA Group is born in 1976 when the French carmaker Peugeot SA acquired Citroën SA (Mintel, 2011).
PSA Peugeot Citroen (Peugeot) is a France-based manufacturer of passenger cars and light commercial vehicles. The group is Europe's second largest automaker with 14.2% of the European market. Leading market position enhances the brand image of the group and improves investors' confidence. However, intense competition in the automotive industry could force the company to reduce prices, which could impact the company’s operational results.
In 2010, both brand (Peugeot and Citroen) sold 3.6 million vehicles including 60% of sales in Europe where it is ranked second car manufacturer (PSA, 2011a). The group declares being involved in a restructuring program and it promotes its engagement in low-carbon vehicles as a strategy to be more competitive in the European market and in emerging market (Business Monitor International, 2010). It is represented in 160 countries, but it is currently undertaking a penetration strategy in emerging markets such as China where car sales dramatically increased of 54% between 2008 and 2009 (PSA, 2011a). In 2009, the group invested 2.148 billion euro (5.6% of its turnover) in Research and Development and registered 1265 patents, especially in improving energy efficiency and finding alternative energy sources (PSA, 2009). To support a strategy based on high innovation intensity, the group set up strategic alliance with seven carmakers such as Mitsubishi and Toyota to develop vehicles bases or BMW and Ford for the engines (PSA, 2011b).
Moreover, Peugeot produced 3,605,500 passenger car and light commercial vehicles during FY2010. The company’s production volume included 2,152,300 Peugeot brand vehicles and 1,453,200 Citroen brand vehicles. Peugeot sold 3,602,200 units of assembled and CKD vehicles in FY2010, which included 2,141,800 Peugeot brand vehicles and 1,460,400 Citroen brand vehicles. In terms of geography, the company sold 2,195,300 vehicles in Europe, 391,800 vehicles in Asia, 294,300 vehicles in Latin America, 59,500 vehicles in Russia, and 184,300 vehicles in rest of the world.
Company overview
PSA Peugeot Citroen (Peugeot) is engaged in the design, development, manufacturing and sales of passenger cars, light commercial vehicles, scooters, and motorcycles. The group also manufactures automotive parts such as seats, cockpits, acoustic packages, doors, front-ends and exhaust systems. The group primarily operates in Europe. It is headquartered in Paris, France and employs 198,220 people.
The group operates through five business segments: automotive, automotive equipment, finance companies, transport and logistics, and other.
The automotive segment designs, develops, manufactures and sells passenger cars and light commercial vehicles. These vehicles are sold under Peugeot and Citroen brand names. The automotive segment of the group has its operations in France, Spain, the UK, Italy, Brazil, Argentina, Russia and China.
The company recorded revenues of E56,061 million (approximately $74,421 million) during the fiscal year ended December 2010 (FY2010), an increase of 15.8% over FY2009. The operating profit of the company was E1,360 million (approximately $1,805.4 million) during FY2010, as compared to an operating loss of E1,447 million (approximately $1,920.9 million) in FY2009. The net profit was E1,134 million (approximately $1,505.4 million) in FY2010, as compared to a net loss of E1,161 million (approximately $1,134 million) in FY2009.
The company states that its corporate strategy is based on “[being] a step ahead in pioneer vehicles and services” including keeping a leading position in low emission vehicles (PSA, 2011c). This positioning strategy includes three main categories of vehicles which are: * Bio ethanol vehicle (biomass power) * Hybrid engine * Electric vehicle
As our product is an electric vehicle, we are going to focus on its properties.

The electric vehicle
Electric cars are composed of electric motors that are only powered by batteries; contrary to hybrid vehicles, electricity storage in batteries is the only source of energy of the car which that the car needs to be recharged in electricity after each journey and the vehicle autonomy is also much lower than the one of a conventional car. Mintel (2009) states that “batteries, which are usually either nickel metal-hydride or lithium-ion, are charged by connecting to a mains power supply and usually require an overnight charge to achieve a full charge, although as battery technology develops, charging times are being reduced”. However, modern electric cars are developed to convert the energy from their braking system into energy which slightly increases cars autonomy (Mintel, 2009). The main characteristics that define electric cars are their size and their weight which is reduced to the minimum (mainly two-seaters car), their limited autonomy reduced to a maximum journey of about 100 miles and their limited speed up to 50 mph (Mintel, 2009). These characteristics means that they are generally more suitable to urban areas where destinations are shorter, speed is legally restricted and reduced car sizes provide a easier access to parking places.
Focus on Peugeot Ion, the tangible product
The recent launch of the Peugeot Ion is not a trial for PSA which is working on the electric project since 1980 and which launched two electric cars in 1995: the Peugeot 106 electric and the Citroën Saxo electric (PSA, 2006 & PSA, 2009b). PSA withdrew both models from the market in 2003 when only 10.000 vehicles were sold during this period but this project helped the group to strengthen their developing process towards efficient alternative fuelled cars such as having an advance on battery technology used in hybrid vehicles (PSA, 2006).
The Peugeot iOn is a four doors and four seats model, with a length of 3.48 m, a turning circle of 4.50 m and a width of 1.47 meters which constitutes a small car similar to the SMART ForTwo (Peugeot, 2011). The car develops 64 bhp, a torque of 180 Nm and can hit a top speed of 130 km/h.
The lithium-ion car batteries are rechargeable in six hours using a conventional 220 V socket, have an autonomy of 150 km and can be driven from 30 to 60 kilometers per hour in 3.5 seconds (Peugeot, 2011).
The brand Peugeot offers 448 iON which is extremely narrow compared to a traditional car such as the SMART ForTwo (similar urban fuelled car) which is available in more than 5.165e12 versions (Peugeot, 2011, Smart, 2011).

Services
Services proposed for this car include a conventional maintenance contract but also a breakdown service in a 50 km area in case of electric discharge, an “electric vehicle driver training” and a rental offer (“Mu by Peugeot”) (Peugeot, 2011). Thanks to this offer the group is educating customers by training them to a different driving behavior and it is tackling potential barrier to buy this product such as the price and the vehicle driving autonomy.
Macro
Ecological and Economical factor
Martin Clark (2010) point out that the main driver of electric vehicle market is “is the simple truth that the planet’s oil and gas resources are limited and an alternative must be found”. Moreover according to the theory of the demand and the offer, an increasing global demand in fuel facing a decreasing supply source will generate more and more peak price. Projections from the EIA states that the barrel price would reach $130 by 2030 when its current price is of $79.8 (Martin Clark, 2010). This last research from Martin Clark (2010) also states that the oil price is a primary driver for the electric car market and a high fuel price forces household to modify their behavior and motorist to reduce their car usage. A comparative analysis of oil price and car production demonstrates an influence of oil price peak on the car consumption. In France, the production of vehicles has decreased of 19.6% from 2008 to 2009 and bounced back between 2009 and 2010, increasing of 8.6% (INSEE, 2011). This evolution is related to the oil price peak that occurred in 2008 when the barrel reached $147, this peak awaked people about the issue linked with oil, changing their car usage and even their decision to buy a car or not.
The budget allocated by French households to transportation decreased of 2.3% between 2007 and 2008 and of 0.3% between 2008 and 2009 to be established at 14.3% of the total budget in 2009 (INSEE, 2009). Moreover, the budget allocated by households to fuel decreased of 5 points between 2008 and 2009 (CCFA, 2009), although the oil peak price occurred in the same time. These statistics demonstrate that even if the oil price is increasing the budget of French households allocated to transportation is not following this trend, on the contrary this would encourage them to reduce their dependency on this budget by changing their consumption behavior.

Political factor
Legislations and government interventions
According to Clark (2010) main legislations having an impact on the electric vehicle market occur in Europe and in North America. The European Union has established in 2007 the “Euro 5” and “Euro 6” Emission Standard, imposes a limitation on hydrocarbon emissions set at 100 mg/km and on nitrogen oxide emissions set at 60 mg/km (Clark, 2010). In the US, similar restrictions are adopted seeking to “impose average fleet-wide efficiency target of 35.5 miles/gallon by 2016” (Clark, 2010).
In France, similar support are generated by the government such as a subsidies of up to €5.000 called “éco-taxes”, the finance of 975.000 charging points by 2015; the government also promised ordering 50.000 electric vehicles in 5 years for public enterprises (Le Figaro, 2010). French local authorities are also acting in this way, 6 municipalities including Paris proposes to restrict the access to their city center to polluting vehicles by 2012 (Le Monde, 2010b). Concerning firms that would buy such a product, the French tax authority proposes an exceptional depreciation of electric vehicles and charging equipment on 1 year and tax exemptions.
Micro
PURCHASE behavior: environmental vs. economical concern
A survey carried out by our team demonstrates that despite a growing awareness of environmental issues, the premium purchase costs and limited performances of electric vehicles are the main barriers considered in the purchasing decision. This survey shows that the first feature taken into consideration by buyers when purchasing a car its cost and potentials money savings allowed by such investment, the environment impact comes only at a second position. This suggests that carmaker needs to promote more the economical aspect when buying a green car rather than the fact that it would be environmentally friendly.

Competitors offer
Specialist carmakers
The great majority of current electric car offers is generated by specialist car manufacturers that decided to focus on this market niche. The company Aixam-Mega, “Europe’s largest manufacturer of zero-emission ultra-light electric vehicles” belongs to this category of industry and one of its products is the MEGA-City, a car having a driving autonomy of 100 miles and a top speed of 70 km/h. Another leader on this market is Micro-Vett S.p.A an Italian company that is partner with other Italian carmakers such as Fiat; the firm produces vehicles under three brands and records 700 vehicles sales per year. If these specialist industries have not the same investment capacity than companies such as PSA to develop their production facilities or promote their brands through communication campaigns, they acquired an expertise on this type of product and market. In the same way, in December 2010, the company Bollore won the contract Autolib’ proposed by the municipality of Paris to develop a car rental service similar to the Londoner “Boris’bikes” project (Le Monde, 2010a). This last event shows how an unconventional carmaker can tackle big players on this market.
Renault – Nissan
The group Renault – Nissan has decided to get much more involved in this market than PSA by investing more than €4 billion in the electric car (Renault, 2011a). The brand Renault is proposing a wider choice of electric car than PSA by 2012 including a saloon car, a utility car and two small urban cars (Renault, 2011b). The model Zoe proposed by Renault has similar performances than the Peugeot iON or the Citroën C-Zero but it should be launched at a much lower price; this model would cost €20.000 and €100 of battery rental per month (Le Figaro, 2010). In 2011, the electric car LEAF from Nissan has been awarded “European Car of the Year as “the first EV that can match conventional cars in many respects” (Matson, president of the jury in Thegreencarwebsite, 2011).
The group Renault-Nissan aims to be the global leader on this field by gathering 10% of global market share by 2020 and by selling 500.000 vehicles per year by 2014-2015 (Le Figaro, 2010).
Prototypes are being developed and record better performances than the current offer from PSA or even Renault-Nissan. The model Mini-E from BMW through its urban car brand Mini would have a driving autonomy of 240 kilometers and top speed of 150 kilometers per hour (AVEM, 2010). Mercedes is developing its Class-A e-Cell that has a driving autonomy of 200 kilometers and a top speed of 150 kilometers per hour (AVEM, 2010).

Substitutes products
Other concepts of “green cars”
Bio ethanol (biomass power)
This source of energy for engines contributes to a sustainable development considering that, extracted from the “biomass” this is a renewable energy. Dallemand et al (2010) consider biomass as “the organic fraction of agricultural products (including vegetal and animal substances), from silviculture and related industries, as well as the organic part of industrial and municipal waste [including] for example, wood, straw, energy crops, agricultural waste, agro-industrial waste, plants and animal waste”. Businesses related to this field are facing great opportunities because it has been forecasted that the biomass consumption could triple by the year 2030 (Breeze, 2009). In this case, ethanol is a bio-fuel extracted from agricultural crops such as sugarcane; this source of energy is carbon neutral because the carbon dioxide emitted by the vehicle is offset by the photosynthesis process while these energy crops are growing. This type of fuel generates great performances because it has high octane ratings which improve the engine efficiency. However, cars developed to run on this type of fuel are called flexi-fuels vehicles (FFVs) which means that they are not fully “green” but can either have a blend of petrol or ethanol, this particularity is due to the lack of ethanol stations.
Considering that ethanol is widely used in South-America due to the proximity of sugarcane production, PSA is proposing to the Brazilian market the technology “Flex-fuel” allowing its vehicles to run with a quantity of alcohol in fuel going from 20 to 100% (PSA, 2011).
Hybrid engines
Hybrid cars or Hybrid-Electric Vehicles (HEVs) combine electric motors with a heat engine using either petrol or diesel. In most case, the internal fuel engine is used to feed electric motor which powers the car; but the recent version of “plug-in hybrid-electric vehicle” (PHEV) provides the option of charging the batteries which also have more capacities, in this way electric motors have more autonomy and less fuel is consumed. Honda and Toyota were pioneer on this field since 2000 in Europe and even 1997 in Japan when Toyota launched the model “Prius”; 1 million “Prius” have been sold since 1997, including 15.000 models in France which is the second European market for this car (Toyota, 2008). Toyota (2008) states that the success in France is due to the “bonus écologique”, a fiscal aid concerning “clean vehicles” and proportional to their price; this “bonus” reached in this case €2.000 per car. hybrid technology is seen as an “interim technology” as an alternative between fuel-vehicles and fully-electric cars.

SWOT
Leading market position enhances the brand image of the group and improves investors' confidence. However, intense competition in the automotive industry could force the company to reduce prices, which could impact the company’s operational results. Strengths | Weaknesses | Leading market player in Europe
Strong research and development capabilitiesIncreasing operational performance partnership with Mitsubishi | High indebtedness autonomy/performances and battery charging time | Opportunities | Threats | Strategic alliances with BMW
Poised to benefit from growing automotive markets in China, Latin America and Russia
Growing worldwide demand for more environmentally friendly vehiclesStringent environmental regulations | Intense competition (Renault + Bolloré)
Foreign currency risk |

Strengths
Leading market player in Europe Peugeot is Europe's second largest automaker in Europe. In FY2010, a total of 2,193,200 vehicles sold by the group were registered, which included 1,177,500 Peugeot brand vehicles. In addition, Peugeot has a significant market share in the European countries.

For instance, the group holds a 32.7% share of the car and light commercial vehicle market in France; 19% market share in Belgium and Luxembourg; 18.5% in Spain; 17.1% in Denmark; 16.2% in Portugal; 15.9% in Slovenia; 13.2% in the Netherlands; 12.9% in Croatia; 12.8% in Slovakia; 11.1% in Italy; 10.3% in Norway; and 10.1% in Switzerland. Similarly, Peugeot also holds strong market share in the UK (9.6% market share); Poland (9.5%); Austria (9.1%); Czech Republic (8.5%); Greece (7.7%); Hungary (7.4%); Sweden (6.9%); Finland (6.9%); Germany (5.9%); and Ireland (5.3%). Peugeot also enjoys strong market positions when compared to its competitors, in the passenger car and light vehicle commercial market in Europe.The group had market share of 14.2%, significantly higher when compared to its competitors: Renault (10.9%); Ford Motor (8.4%); Fiat (8.3%); General Motors (8.3%); Daimler (5.3%); BMW (4.9%); Toyota Motor (4.3%); and Hyundai (4%). Leading market position enhances the brand image of the group and improves investors' confidence.
Strong research and development capabilities
Peugeot has strong research and development (R&D) capabilities. The group's R&D efforts are directed at developing new products and processes, and improve the capabilities of existing products. Peugeot operates six R&D centers, including four in France and one each in China and Brazil. The group is focused on developing technologies to reduce the fuel consumption and emissions of its vehicles. In FY2010, Peugeot’s R&D expenditure was E2,075 million (approximately $2,754.6 million), an increase of 3.6% over FY2009.
The group is focused on improving the efficiency of petrol and diesel internal combustion engines and developing new emissions control processes. In the diesel segment, Peugeot developed e-HDi technology, a technology that shuts down the engine when the vehicle is at a standstill, thereby reducing fuel consumption and carbon dioxide emissions. The group also developed and launched
Peugeot iOn, Partner Origin, Citroen C-ZERO, and Berlingo First electric vehicles. In addition, Peugeot and BMW announced an investment of E100 million ($132.8 million) to jointly develop hybrid technologies. It also launched a new electric powertrain project in cooperation with Mitsubishi Motors. Furthermore, Peugeot registered more patents than any other company in France in 2010, with a total of 1,152. The group's strong focus on R&D allows it to develop proprietary products, strengthening its product portfolio and have an advantage over its competitors.
Increasing operational performance
Peugeot has recorded increase in its profits and margins. The operating profit grew to E1,360 million (approximately $1,805.4 million) in FY2010 from an operating loss of E1,447 million (approximately $1,920.9 million) in FY2009. Peugeot’s operating profit increased due to improved economic environment and internal restructuring and competitiveness enhancement programs. Changes in demand and production had a net positive impact of E331 million ($439.4 million) over the year. In addition, changes in exchange rates had E393 million ($450 million) positive impact on the operating profit. The company also saved E1,121 million ($1,607.6 million) on production and procurement costs, which contributed to the increased operating profit.
Similarly, the company recorded net profit of E1,134 million (approximately $1,505.4 million) in FY2010, as compared to a net loss of E1,161 million (approximately $1,541.2 million) in FY2009.
Further, the operating margin of the group increased from -3% in FY2009 to 2.4% in FY2010; and the net profit margin increased from -2.4% in FY2009 to 2% in FY2010. Increasing operating efficiency reflects the efficient cost management and sound decision making, which could be leveraged to fund growth plans in the future.
Partnership with Mitsubishi
In April 2010, the group and Mitsubishi Motors signed an agreement to start a new collaborative project regarding a compact sports utility vehicle (SUV). The agreement provides for the development and adaptation for both the Peugeot and Citroen brand of a compact SUV, based on an existing Mitsubishi Motors platform. For Peugeot, the new vehicles will expand the ranges of both Peugeot and Citroen and attract new customers. Such strategic cooperative agreements will allow the group to further enhance its market share and expand globally.
Weaknesses
High indebtedness
Peugeot has heavy debt. In FY2010, the group had total outstanding debt of E29,811 million (approximately $39,574.1 million).This heavy debt could force the company to allocate a considerable portion of cash flows from operations to debt service payments; limit the company’s ability to obtain additional financing; and lose advantage against its competitors who may have less debt. Further, if the company fails to generate sufficient cash flow from operations to service its debt, it would force the company to reduce or delay capital expenditures, sell assets, seek additional capital or restructure or refinance its indebtedness, further impacting its performance.

Autonomy/performances and Charging battery time

We notice on this graph that the Peugeot Ion is 6 hours charging time which is quite a long time for a 130 km autonomy which situates it beyond one of the less autonomous electric vehicle on the market, just before Smart-ED.
Opportunities
Strategic alliances
In October 2010, Peugeot and BMW signed a memorandum of understanding to extend the long-standing cooperation arrangements already in place for the development and production of hybrid systems. Subsequently in February 2011, Peugeot and BMW entered into a new phase of their collaboration, by signing an agreement to set up a 50-50 equity joint venture named BMW Peugeot Citroen Electrification. BMW Peugeot Citroen will focus on developing and producing hybrid components, including battery packs, e-machines, generators, power electronics and chargers, while also developing software for hybrid systems. This joint venture will enable Peugeot to develop advanced technological manufacturing expertise in Europe.
Poised to benefit from growing automotive markets in China, Latin America and Russia
The automotive markets in China, Latin America, and Russia have witnessed a robust growth since last few years. China emerged as the largest car market with sales of 18.1 million units in 2010, as compared to 13.6 million in 2009. This represents an increase of approximately 33% compared to the previous year. Similarly, the automotive market Latin America grew 14% compared to 2009. In Russia, the market grew by approximately 33% to reach a volume of 1.8 million vehicles. Further, the market growth in China, Latin America and Russia is expected to be around 10%, 4% and 15% respectively. Surge in the consumer spending in these regions will further drive the market.
Peugeot has a significant present in China, Latin America, and Russia. In China, the group has a market share of 3.4% and operates through Dongfeng Peugeot Citroen Automobiles (DPCA), a joint venture with Dongfeng Motors. In 2010, DPCA increased its production capacity by opening a new production plant in Wuhan. In addition, in July 2011, Peugeot and China Chang’an Automobile Group received approvals for the creation of Changan PSA Automobile, a joint venture company engaged in the production of environmentally friendly light commercial vehicles and passenger cars in China.
In Latin America, the group holds a market share of 5.4%. It sold 267,000 vehicles in 2010 in this region. Further, Peugeot announced an investment of E700 million (approximately $930 million) over the next three years to design and manufacture vehicles in Latin America. Similarly, in Russia, the group along with Mitsubishi operates a production plant in Kaluga. Peugeot sold 55,500 units in 2010 and holds 2.8% market share in Russia. Such strong focus and the growing automotive market in China, Latin America and Russia will provide the group with an opportunity to increase its market share in these regions.
Growing worldwide demand for more environmentally friendly vehicles
Over the last few years there has been a massive increase in demand for eco-friendly cars and other vehicles with the environment becoming a major point of concern for many governments and many people around the world. The decline in the levels of fossil fuel sources and the rise in greenhouse gas emissions caused due to transport are the main reasons driving the thought of eco-friendly cars.
Environmental changes provide the opportunity for carmakers to adopt new eco-friendly technologies like hybrid and electric technologies. As consumers become more fuel conscious and aware of environmental issues, automakers and their suppliers are investing hundreds of millions of dollars to develop new technologies for electric cars.

Peugeot is one of the leading automobile manufacturers. It is focused on developing environmental friendly vehicles. For instance, in 2010, the group entered a strategic cooperation with BMW to develop and manufacture components for hybrid vehicles. Peugeot also introduced its new e-HDi technology, a technology that shuts down the engine when the vehicle is at a standstill, thereby reducing fuel consumption and carbon dioxide emissions. Further, it also launched Peugeot iOn and Citroen C-Zero electric vehicles. Such strong focus and the growing demand for environmentally friendly vehicles provides a tremendous opportunity for the company to develop more environmentally friendly products for protecting global environment such as reduced emission gas, improved fuel efficiency, resource saving and recycling.
Stringent environmental regulations
The European Union (EU) Commission and the EU Parliament have adopted a directive that establishes increasingly stringent emission standards for passenger and light commercial vehicles for model years 2005 and thereafter (Euro 4). Under the directive, manufacturers will be responsible for the emission performance of these vehicles for five years or 100,000 kilometers, whichever occurs first. A more stringent emission standard (Euro 5) was adopted by EU legislative bodies, effective from 2009. In 2010, a new carbon dioxide legislation for light-duty commercial vehicles was passed in the EU.
In 2005, the states of New York, Massachusetts, and Vermont adopted the California Zero Emission Vehicle (ZEV) regulation. The state of Maine adopted the ZEV regulation from 2009. Accordingly, some manufacturers shall be required to sell low emission vehicles which meet a more stringent emission standard than those meeting the national standard. In addition, other several Asian countries have adopted regulations which are similar to the Euro 2 and Euro 3.The emission standards adopted across various regions can result in additional costs for product development, testing, and manufacturing operations of Peugeot.
Threats
Intense competition
The global automotive industry is highly competitive. Peugeot faces strong competitors, some of which are larger and may have greater resources in a given business area. The factors impacting competition include product quality and features, safety, price, environmental performance, as well as efficiency of product development and manufacturing system, establishment of sales and service systems and sales finance. Some of its key competitors in the electric vehicle sector are Renault and Bolloré.

Foreign currency risk
Peugeot is an enterprise with worldwide operations. Its businesses are conducted in a variety of currencies, from which currency risks arise. The company generates approximately 39% of its revenues from markets outside Europe. Since a significant portion of the company revenues are generated outside the Euro currency region and the procurement of production material and funding are also organized on a worldwide basis, the currency risk is an extremely important factor for Peugeot’s earnings. Any changes in demand and refinancing conditions, fluctuations in exchange rates have a significant impact on the company's earnings.
The value of the company's equity investment in foreign countries may fluctuate based upon changes in foreign currency exchange rates.These fluctuations, which are recorded in a cumulative translation adjustment account, may result in losses in the event a foreign subsidiary is sold or closed at a time when the foreign currency is weaker than when the company initially invested in the country. Any unfavorable change in other currencies would have an adverse impact on the profitability of Peugeot.
Segmentation
Criteria of segmentation
The different types of customer that are willing to buy a car can be divided according to the following criteria: * The household size: this considers the number of people that are supposed to be transported by the car. * The location: the place where people live, in urban or rural area has an impact on the way they use this car and on their needs (mileage range, convenience in towns…). * The degree of usage: the time people are being in their car will affect their needs considering the comfort or performances of the car. * The budget: the price people are willing to pay for a car * Environmental awareness: people that are ecological activists won’t have the same needs in terms of technical performance than others * Type of buyers (B2B / B2C): firms will tend to have a more rational and practical approach when buying a car than a particular user who can more consider the emotional dimension.

* ------------------------------------------------- urrent target of the Peugeot iOn
When studying the offer it is hard to find a particular and well established target associated with this car, moreover PSA did not launch a massive communication campaign to promote the iOn. From the characteristics of the product, we can conclude that this car would mainly target people living in urban area, based on the shape of the car (small size that is more convenient in towns) and its battery autonomy not suited to long lasting trips. Secondly, the current price of this car reveal a skimming policy adopted by PSA, which means that only high incomes will afford buying this car. This is especially true considering that such a vehicle (“citadine”) is generally used as a “complementary» car for a specific usage. On these points listed above, the target of the iOn would be quite the same as the one for the car Smart ForTwo, as the “Double income, No Kids” (DINK) that leave in an urban area. However, the ecological element of this offer add another criteria which is people that are ready to pay the “cost of ecological differentiation” (Orsato, 2006) for such a car, including people that are environmental friendly.
According to Martin FAUCON, charged of the technical communication with Peugeot, the main target of this product are firms specialized in energy or having an activity directly linked with the environment and city councils, considering the first contracts signed in 2010 with VEOLIA and the city council of Nice (Turbo.fr, 2011). It has be forecasted that firms and public authorities would represent 90% of the sales to “set the direction” and only 10% would be operated in B2B (321auto, 2010).rent positioning

The Peugeot iOn is positioned as an environmental friendly product which sold for a high price. The ecological element of this offer is due to the characteristic of the product that is not polluting. The concept of eco-branding from Orsato (2006) well characterizes this position when the customer must be able to pay a price premium to profit from an environmentally friendly product. However, we can see on the matrix that the iOn is slightly separated from the other ranges of product of Peugeot, especially because of its high price. Moreover, this product neither profit from a certain prestige, a certain spirit, nor records high pure performances. This would make a mismatch with the price policy according to the customer.
Current strategy
Objectives of the Group
The objectives of the group is to sell 100.000 electric cars in 5 years, equivalent to 20.000 per year which represent 16 times more than what they managed to sell with their previous electric models between 1995 and 2003; they also forecast getting a market share of 4-5% on the European market of electric cars (Le Figaro, 2010).

Competitive advantage
According to the Porter’s (1985) matrix, PSA’s competitive advantage by offering this product is its differentiation from competitors on a narrow segment. However, the product characteristics do not completely fulfill Armstrong and Kotler’s (2007) differentiation criteria which are to be distinctive, superior, communicable, defendable, accessible and profitable. In fact, except the last one, PSA offer does not fulfill any of these criteria because its offer is not that different from its competitors, product performances remain limited and hard to explain and overall, this product is not accessible to a large audience.
Competitive environmental strategies
Orsato (2006) suggests the concept of “competitive environmental strategies” as a “classification of environment-related investments according to their potential to become sources of competitive advantage”. This classification differentiates categories in relation to the type of “competitive focus” based on “organizational processes” or “product and services” and in relation to the type of competitive advantage which is either “differentiation” or “lower cost” (Orsato, 2006). The category that fits the best with this case is the “eco-branding”, a combination of a product focus and a differentiation competitive advantage. Orsato (2006) define this position as when “a firm differentiate itself from its competitors when provides something unique that is valuable to buyers beyond simply offering a low price”. In this article, this same author identifies requirements for this strategy that are a customer willingness to “pay the cost of ecological differentiation”, clear information about the product (“consumers need to perceive a clear benefit”) and strong “barriers to imitation” (the strategy is based on a product differentiation).
First Mover Advantage
Lieberman and Montgomery (1990) evoke this concept of FMA when “a pioneering firm has a period of head start before followers enter” giving the opportunity to invest and operate in different areas (technology, know-how, facilities…) and providing it long-run benefits. These FMA concern three areas (new products, new processes and new markets) and are raised from “proprietary technology”, “preemption of resources” or the “ability to lock-in customers through switching costs” (Lieberman and Montgomery, 1990). Concerning the “proprietary technology” Lieberman and Montgomery (1990) evoke the concept of the “learning-curve” where pioneer firm has accumulated enough production experience to build a cost advantage. But, to constitutes an advantage the know-how must remains secret, “learning-based advantages can be sustained only if initial learning is augmented by continued improvements, or protected by an unusual degree of secrecy” (Lieberman and Montgomery, 1990). Then, these authors define the “preemption of resources” as the opportunity for a pioneer to have an easier access to resources such as natural geographical locations, marketing channels, product positioning or skilled personal. Finally, “buyer switching cost” consists in the increase amount of resource needed by a follower to attract the pioneer firm’s customers (Lieberman and Montgomery, 1990).
However, Lieberman and Montgomery (1990) also propose some followers advantages that the first-mover must take into consideration. These advantages consist in committing less resources in certain area such as “technology” (if the first-mover was not able to properly protect it), “buyer education” (increased product awareness), “employee training” (by recruiting pioneer’s employees) or “infrastructure development” (Lieberman and Montgomery, 1990).
In this case the FMA would be technological advance that PSA is having on its competitors, related to this the concept of the “learning curve” implies that thanks to this advance PSA would be able to get enough production experience to lower the price of its product (Lieberman and Montgomery, 1990). However, this not fully constitutes a technological advantage considering that the electric car technology is not the proprietary of the group and competitors are also proposing performing products. Moreover, the strategic choice to be the first to deploy this product on the market can offer to “followers” another advantage which is the “buyer education” that the group is investing in by promoting an alternative mean of transport.
BCG Matrix analysis

According to Business Insight (2011), the market of electric car is supposed to be booming during this decade. Sales forecasts of electric vehicles between 2010 and 2015 show that in only 5 years the number of car sold is supposed to be multiplied by 30, from 41.653 units sold in 2010 to 1.226.607 units in 2015. From this report, this growth is fed by a growing governmental concern in this activity combined to increasing lithium-ion battery efficiency and a reduction in battery costs. Concerning current figures of the market, Renault recently became the leader on the French market with the launch of the Fluence (36% of market share) overtaking PSA that was the leader on its home market until now. Bolloré, as a specialist carmaker is ranked at the third position on this market which shows the potential threat of this smaller company that remain operational on this field.
The position of PSA on this matrix is also in the “Star” area. They are taping a growing market which is at the beginning phase of its lifecycle, this make it even more attractive considering that the automotive sector in Industrialised countries are in a mature and saturated market. The group also generates a high relative market share considering that Renault and PSA have a similar market share since the month of September. This matrix, combined with the previous analysis, highlight the battle engaged between both French carmakers (PSA and Renault). PSA wanted to be the first to tap its home market, however if Renault just launch its product on the market, it rapidly gained in market share by having promoted this car during the last couple of years. During the last year, PSA could profit from a monopolistic position in France by having rapidly launched its electric vehicle, however, we see that the communication campaign that supported the product from Renault help it to gain a leading position really fast.
Questionnaire results
A questionnaire has been carried out to get more information on buying behaviors. First of all, only 26.97% of people asked known that PSA is proposing an electric vehicle, this show the great effort PSA need to undertake in terms of communication and “buyer education”. A first analysis of data one by one shows that 35.95% of people consider having an environmentally friendly behavior which provide a first view on potential customers. However, the first criteria that is taken into account when buying such a car is “potential saving on the long-run” (76.4% of people) followed by the “impact of the car on the environment” (58.43%). The first criteria that would put people off from purchasing this car is the “batteries autonomy” (69.66%) followed by its “price” (58.43%). This first view tends to state that purchasing choice of such car remain rational by considering first economical constraints.
To test this first assumption, a multi-data analysis has been undertaken by identifying the purchasing behavior of environmentally aware people, testing the influence of income on the buying behavior and the influence of the living location on the buying behavior. First, this secondary check shows that the economical criteria prevails even for environmentally aware people (81.25%), the “environmentally friendly” feature is only ranked second (71.88%) as a buying criteria. Secondly, the same trend has been verified on people earning high incomes (73.53% of them first consider the economical point). This shows that, whatever the buying power is or the level of environmentally awareness is, people consider first the price of the product and potential savings it would generate. Then this survey shows that proposing this product generate a customer discrimination based on their living location. People living in rural area have more consideration to the “batteries autonomy” (84.62% of them) than people living in towns (68.66%).
Then, in the multi-data analysis, the aim was to point out differences of behavior between men and women concerning the potential purchase of such a car. Concerning the criteria that are considered when buying this car, no particular differences were found between men and women. However when checking the results concerning the barriers for such a purchase, differences were highlighted.

On this point, it has been established that women tend to less consider the poor performances of the car as a weakness. Only 29% of women think that the performances of the car would be a barrier when deciding to purchase this vehicle, when 52% of men consider it as a barrier. This reinforce the assumption we had about difference of buying behavior between men and women, showing that women would be less affected than men about the pure performances, the engine power, the speed records of such a car.
B TO B STRATEGY
Introduction
Following our analysis, it appears that targeting BtoB is for Peugeot an essential step to undertake for different reasons: * The market size is high: an important part of the automobile market corresponds to professional vehicles. * Products are in line with company’s needs: Companies often have fixed daily route (contrasting with normal customers) and tend to develop corporate social responsibility and a green image * Pressures of government are intensive: Taxation influence businesses in order to acquire electric vehicles.
Objectives
The objective of Peugeot is at short term to break into the professional electric vehicles market. Currently, in 2011, only a few orders have been received. However, for 2012 the achievable objectives of Peugeot will be the following: * Obtain 5000 orders from companies in 2012. As an example, the main competitor Renault, leader in the market has received more than 12000 orders in 2011. * Gain a 25% market share in volume during the same year.
Target
The B2B market has been segmented according to the usage, the fleet vehicles size of companies and company’s values.
Following this segmentation, it appears that companies having short fixed daily route with over 10 vehicles fleet is our main target. This target is also sharing the same environmental values.
These companies could be divided in two different groups. First, the public enterprises as city council or other public enterprises which are driven by government pressure to be models in green responsibilities. Secondly, some private companies as delivery intra-city companies, transport companies (which are forced by government to have at least 20% of their fleet as electrics) and the “green values” companies (whose electric vehicles are part of their image, missions and values).
Positioning
Peugeot should be seen as “a reliable and trustable brand designing electric vehicles for eco-friendly companies”.
Product mix:
Peugeot currently sells two types of electric vehicles to professionals: the iOn and the Peugeot Partner Origin Electric Venturi. The Peugeot Partner model has been developed on the same basis as the gasoline one. The vehicle is still at an experimental phase as only 60 orders have been registered in 2011. The iOn model is the same electric product than in the BtoC market. There is no specific features and no communication that would make it different to the customer’s market product. This incoherence is outlined by the fact that Peugeot has always created specific classes of vehicles for the BtoB market. This lack of coherency is probably the main issue in the current product mix of Peugeot. Indeed, customer’s needs and professional’s needs are completely different and, therefore, adaptation is required.
Following the market analysis, the redesigned product range of Peugeot would include three vehicles: * Peugeot Partner Origin Electric Venturi * A redesigned iOn: the iOn “Affaire” * The electric expert Fourgon as the competition is relatively low on this electric vehicle’s size
Market studies have emphasized the main barrier in professional market as the lack of confidence in electric products and a fear of the reliability of the technology. Therefore, Peugeot strategy is to focused on the “augmented” part of the product: that are all the services surrounding the car (Appendix 2) * A strong after sales service is imperative. It would create value and confidence from companies to Peugeot’s vehicles. In case of vehicle’s breakdown, a special service should be set to assist companies in need. * The warranty is also another critical factor in the choice of vehicles by companies. A warranty of 3 years would emphasize the quality of the car and reduce companies’ apprehension. * Others services adding value to the product are the possibility to implement a one day training inside companies if required as well as the customization of cars at the image of the company (logo, colour and stickers). * The rent of battery which is an option that does not currently exist but should be added to the product. It is a strategic choice in term of price policy (develop below) and also secures companies investment on the electric technology.
Finally, as the companies buy not only a vehicle but a “green” image, the materialization of this image through label on the car is recommended. This label could include texts as “I am green, I am electric”.
Price
Peugeot has in the past sold its vehicles including the battery. The average cost of the vehicles being around 35000€ including the cost of €12000 for the battery.
This strategy seemed to be a buying barrier comparing to competitors as Renault who rent the battery. A concrete example is the choice of the public enterprise “La Poste” to order 10000 vehicles to Renault after having examined the different offers. For “La Poste”, the rent of batteries appeared to be a saving cost strategy. If the company chose Peugeot, it would have meant an overrun investment of € 12000 per vehicles that is € 120 millions of euros to add.
Thus, the rent of the battery through specific contracts is recommended. If we consider that the battery is depreciable on a 10 years basis, it represents € 100 per month for the company.
Furthermore, two pricing strategies should be used when selling the vehicles to companies. The first one is the optional pricing strategy which is hugely used in the automobile industry. Peugeot will sell optional extras along with the product to maximize the turnover. For example, customization could be a free service if the company orders more than 5 electric vehicles.
The second pricing strategy resulting from the market environment is the competition pricing strategy. As Renault is the main competitor, Peugeot should be able to compete on prices with them. This would imply a reduction of prices but it may be at the end a winning strategy as price is an important criteria for firms aiming at making profit.
Communication
The BtoB communication is rather different than BtoC communication and implies different methods. For companies, buying process is different and is mainly focused on an information step. Thus, direct marketing appeared to be a suitable solution to communicate to medium and big size enterprises. Two main tools would be used: telemarketing and direct mails.
The process would be the following: 1. Identifying opportunities (prospects) through the use of databases 2. Using telemarketing and direct mails as a tool to contact enterprises 3. Communicating information, advantages and catching the prospects 4. Generate face to face appointments and demonstrations 5. Setting a contract (by salesmen)
The second communication method used is already implemented by Peugeot mainly for hybrids and gasoline vehicles. It would be interesting to introduce the electric products in the different car shows.
European car shows would be a showcase for Peugeot electric vehicles but also an occasion to get huge contracts in Europe. Paris and Frankfort car shows are renowned internationally.
Regional French car shows are another way for Peugeot to catch professionals. Indeed, car shows include special days opening to professionals. It would aim at getting orders from smaller regional businesses.
Finally, Peugeot organizes each year the “Peugeot Professional Tour” during one month and a half and go into fourteen French cities. It would be a great occasion to seize to introduce the electric vehicles designed for professionals.
Distribution
Orders will be mainly taken during car shows and on internet, but companies will also have the choice to orders with a salesman in the Peugeot outlets. The vehicles, when ready, will be delivered directly to companies from the Peugeot outlets.
After sales services and assistances will be taken in charge by the garage Peugeot which will be trained for it.

Recommandations
B2C Strategy Segmentation
According to our analysis of the current situation on the electric car market and the market study that we realized, two trends can be interesting for our product.
First, even if the sales of electric cars to consumers represent only 10% of the total sales on the market, the previsions of extension are very optimistic. Indeed, global sales are expected to grow from 3.500 units in 2011 to 15.000 units in 2014 and then explode in 2020. Electric car market is thus a niche market between
Consumers study reveals that the main issues concerning the bought of an electric was about its performance (autonomy of the battery and time to necessary to recharge it) but also the fact that it is often consider as a second use vehicle. Thus, consumers are reluctant to own only an electric car. Another issue is that electric vehicles, due to their design and performances, are more likely to evolve in an urban area and are not consider functional enough for large families, which limits the possible targets for selling our product.
Moreover, it also appears in the consumers study that women consider those issues as being less decisive in their purchase decision. This leads to two possible kinds of consumers that are in a better position to buy electric cars: eco-friendly Dinkies (Double Income No Kids) and urban active women: Swells (Single Women Earning Lot of Loot) and Yummies (Young Urban Mothers).
Target
We decided to focus our communication strategy on women living in urban areas which lead to a consumer profile divided between Swells and Yummies: “the woman of tomorrow” Those two targets are very close to each other as their profile match on many points and that Swells are likely to become Yummies in a short term period.
Positioning
Our positioning strategy is based on consumers’ behavior regarding the purchase of a non-electric car, which currently represent the main offer and demand on the automotive market.
Consumer’s purchase decision is governed by rational and emotional criteria. Rational criteria are the performance of the car in term of autonomy, maximum speed and recharge time of the battery whereas Emotional criteria are based on the brand image, car’s identity in consumer’s mind as well as the match with their lifestyle. Both rational and emotional criteria are of equal importance as they will together determine which brand and which car consumers are more likely to buy.
Our analysis of the current situation on the electric car market has driven us to realize that those criteria were not all fulfilled. Indeed, producers, when creating an electric car, are mainly relying on rational criteria to set up their positioning. As those graphs reveal, almost every electric cars are alike in terms of rationality. This situations leads to a market saturated with middle range product that aren’t able to differentiate from their competitors. Furthermore, the lack of differentiation positions the electric car as a standardized product, in opposition with consumers’ desire to have a more personalized product. By example, Mitsubishi and PSA has developed their electric car together, which means that exactly the same vehicle is sold under three different brands (Mitsubishi with I-MiEV, Peugeot with Ion and Citroën with C-Zero).Consequently, no real match is found between the offer and consumer’s expectations when purchasing a car.
Concerning emotional criteria, brands are arguing upon the eco-friendly image of electric cars. The problem of such a strategy is that environmental concerns are the minimum expected by consumers and that, as used by every brand on the market; it has become a global argument leading to a too evasive positioning. Thus, it is impossible to differentiate from the competitors with only the environmental criteria.
According to us, the real challenge within the electric market is to create an identity for our product as the environmental and technical criteria are not sufficient any more. Thus, we have to develop the emotional aspect and associate our product with a lifestyle to create a unique brand image. Doing so, our objective is to become a top of mind brand on the electric car market.
It will be possible to fulfill this objective through an accurate positioning and the creation of a unique universe around our car. It must then carry values that are in perfect match with our target “the woman of tomorrow”: Modernity, Functionality, and Environmental Responsibility.
Thus, here is our positioning: “a modern and feminine car with a strong identity representing a practical and eco-responsible solution”.

Marketing mix
PRODUCT:
As we decided to develop a new identity for Peugeot’s electric car, the Ion, we will have to reshape its design and its name in order to make them fit with our values and positioning.
First of all, the car needs a new name, as Ion is too generic and too eco-oriented, our car needs not only to be eco-friendly but also feminine and modern. Matching with both images, our car will represent nature and women, but also the beginning of a new era for humanity and its way of life as well as original pureness. We also want to inspire modernity and to be the symbol of the “women of tomorrow”. Thus, we decided to name our car the “EVe”, as a condensate of each value it will carry. * “EVe” stands for Electric Vehicle – Evolution * “Eve” symbolizes the woman * The last letter, taken alone in its blue sphere represents the new era. * The capital letters “EV” represent evolution, thus modernity * “EVe” stands for Electric Vehicle – Evolution * “Eve” symbolizes the woman * The last letter, taken alone in its blue sphere represents the new era. * The capital letters “EV” represent evolution, thus modernity
EVe
“The logo of the Peugeot EV-e”
The EVe car will have three doors (small and functional) in order to fit with the urban lifestyle of our targets. Its design will be modern but not futurist: the idea is to have a design close to the Mini-Cooper and the Smart that are feminine cars with personality without having strange designs. It will also have clear colors, very close to the white in order to keep a pure and clean design, customization will also be available to personalize the car.
To go further in the universe developed around our car, we created an anti-pollution rule that will have to be respected by the EVe. This concept is based on a “3 zeros” policy: * Zero noise pollution: the EVe will be as silent as possible in order not to worsen the urban aera * Zero visual pollution: our car will not be futurist, it will not look like a conceptual car and will fit perfectly in its environment through a modern design * Zero pollution: as an electric car, the Eve will be less polluting than other cars.

As the conception of our universe was going on, we realized that one fictional character was in perfect match with the message we wanted the Eve to transmit. This character is Eve from Disney’s picture Wall-E and it represents exactly what we want to do with our own Eve.
Eve represents the new era for humanity, such as our car will be. It is a symbol of feminity and modernity
Eve represents the new era for humanity, such as our car will be. It is a symbol of feminity and modernity
In terms of rational criteria, the Eve will have a global autonomy of 160km adapted to urban travelling as well as a 130 km/h maximum speed. The battery will be upgraded to be fully charged in between 2 or 3 hours on normal plugs and 30 minutes in dedicated locations.
Price
Three possibilities will be at consumer’s disposal to purchase the EVe.
Consumers studies reveal that 84,7% of potential consumers are ready to pay between €10.000 and €18.000. The price for a standard purchase of an Eve will be €25.000, higher than the psychological price but justified by the universe we created around the car that will be an added value for consumers in their purchase decision.
It will be possible to rent the EVe at a price of €500 per month. The idea here is to attract consumers with the rental and to grant them a reduction equal to a percentage of the rental paid in order to reduce the purchase price. Reductions granted will be between 50% and 75% of the rental.
The last but no least possibility will be to buy the car and rent the battery. This option is largely used by our competitors (such as Renault) in order to make electric cars more affordable as the battery is the most expensive part. It is also largely used in B to B. The car will cost €15.000 and the battery rental will amount €100 per month, it allows us to be in the psychological price of the consumers.
In order to guarantee the quality and life cycle of our product, after sales services and car assistance are included in the price. We also project to educate consumers to the use of an electric car in order to reassure them and make them be more aware of the existence of this non-polluting travelling solution.

Place
Distribution of the EVe will go through Peugeot retail stores and its website. The website will also have to be reshaped in order to fit with the universe of the EVe and accord a big web exposition for our product.
Peugeot current website, to light and to evasive for our EVe universe

Peugeot current website, to light and to evasive for our EVe universe

To implement the Eve on new markets and urban metropolis, we want to build retail stores specialized in electric vehicles where it will also be possible to recharge your electric car. Those stores will begin by selling the EVe and then the other electric cars that we will create in a few years. The concept will be tried in the most modern international metropolis: Tokyo, New York and Singapore.
Promotion :
To promote the EVe and its universe, we will follow three communication steps.
Raising awareness to environmental cars
Environmental cars market suffers from a lack of recognition from the consumers. In order to bring them to realize the existence of the market and the pertinence of the products sold, we are going to settle an alternative communication campaign in partnership with retailing brands (Auchan, Carrefour) that implemented their own gas station and want to develop their environmental image.
Till receipts campaign: when a consumer fills up his car at one of our partner gas station, a message will be printed on his till receipt. This message will warn the consumer about how many green kilometers he would have been able to drive if he had bought an electric car. The objective of this campaign is to contact directly the right person, at the right place, at the right moment and to diffuse the right message in order to build product recognition.

Create the universe around the EVe
The universe of the EVe is based on our targets, the women of tomorrow symbolized by both Swells and Yummies. In order to settle the values of our car and to match with our targets, we will launch a tv add:
STORYBOARD OF THE TV ADD: The add opens in a parc, on two women chating on a bench, one of them having her baby sleeping next to her. | While they are talking, we can see many cars passing by behind them, but we can still hear them. | The baby is still sleeping quietly even if many cars are passing. The only noise we can hear is th conversation. | Finally, both women stand up and say goodbye to each other before separating. | They go to their car and leave | While they are driving, we see that the trafic is pretty intense. | Then, we realize that were in park surrounded by a big metropolis and many cars. But there was absolutely no noise. | The EVe logo appears with the followingslogan : “And you, how do you see the future ?” | The add closes on the Peugeot logo. | |
Gain in notoriety
Finally, we will associate the EVe with ZARA, which is a brand matching with our targets lifestyle in order to develop our notoriety. The project with Zara would consist in putting a car door on their bags, so that it will create a funny effect when people will carry it. Thoses bags will be distributed in Zara stores and in Peugeot, which will provide for both brands notoriety in area where there are not likely to be usually present.
The EVe will also be associated with Miss France as being the reward of the winner. This is a more massive and popular communication channel and Miss France is a good representation of the “woman of tomorrow” as implicated in her society and ready to defend her values.
Inès de La Fressange, symbol of the successful urban woman
Inès de La Fressange, symbol of the successful urban woman
The Eve will need an ambassador to represent and defend its values across the world who will have the profile of our targets: a successful urban woman that everybody admires. Thus, we chose Ines de La Fressange as the perfect ambassador and the perfect representation of the active woman. Furthermore, her designing activity could allow us to create a limited special edition of the EVe that will be created by her.
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Orsato, R.J., 2006. “Competitive environmental strategies: when does it pay to be green?”, California Management Review. 48 (2), pp. 127-143
Turbo.fr, 2011. Peugeot iOn - Une voiture électrique au quotidien : solution d'avenir ou solution galère ? [online]. Paris : Turbo. Available at: http://www.turbo.fr/actualite-automobile/422134-peugeot-ion-electrique-quotidien-solution-avenir-solution-galere/ Appendixes * Appendix 1 : Questionnaire : Electric cars | | | | | | | | | | Number of respondents: | 89 | | | | | | | | | | | 1 - Have you ever heard about the launch of a 100% electric vehicle by Peugeot-Citroën? | | | | | | | | Number | % | | | | Yes | 24 | 26,97% | | | | No | 65 | 73,03% | | | | | | | | | | 2 - Do you consider yoursel as environmentally aware? | | | | | | | | | | | Number | % | | | | Not at all | 5 | 5,62% | | | | Sometimes | 52 | 58,43% | | | | Often | 29 | 32,58% | | | | Totally | 3 | 3,37% | | | | | | | | | | 3 - Which criteria do you consider as a driver to buy this car? | | | | | | | | | | Number | % | | | | Impact on the environment | 52 | 58,43% | | | | Money-savings | 68 | 76,40% | | | | Aesthetic - Design | 16 | 17,98% | | | | Confort | 9 | 10,11% | | | | Urban convinience | 20 | 22,47% | | | | | | | | | | 4 - Which criteria do you consider as barriers to buy this car? | | | | | | | | | | Number | % | | | | Price | 52 | 58,43% | | | | Mileage range | 62 | 69,66% | | | | Electricity supply | 50 | 56,18% | | | | Confort | 3 | 3,37% | | | | Performances | 36 | 40,45% | | | | | | | | | | 5 - At which price are you willing to pay for this car? | | | | | | | | | | | Number | % | | | | €10.000 - €18.000 | 75 | 84,27% | | | | €18.000 - €26.000 | 14 | 15,73% | | | | €26.000 - €35.000 | 0 | 0,00% | | | | €35.000 - €42.000 | 0 | 0,00% | | | | | | | | | |

| | | | | | 6 - Do you live in urban or rural area? | | | | | | | | | | | | Number | % | | | | Urban area | 67 | 75,28% | | | | Rural area | 22 | 24,72% | | | | | | | | | | 7 - What is your gender? | | | | | | | | | | | | | Number | % | | | | Male | 44 | 49,44% | | | | Female | 45 | 50,56% | | | | | | | | | | 8 - How old are you? | | | | | | | | | | | | Average | 20.28 | | | | | | | | | | | 9 - Household income estimated to… | | | | | | | | | | | | Number | % | | | | less than €15.000 | 27 | 30,34% | | | | €15.000 - €20.000 | 7 | 7,87% | | | | €20.000 - €25.000 | 11 | 12,36% | | | | €25.000 - €30.000 | 10 | 11,24% | | | | €30.000 - €35.000 | 13 | 14,61% | | | | more than €35.000 | 21 | 23,60% | | | | | | | | | | | | | | | |

Multidata analysis | | | | | | | | | | | | Revenue - Purchasing driver | | | | | | | | | | | | People earning more than €30.000 a year: | | | | | considering the "money saving" driver | | 73,53% | | | considering the "environmentally" friendly driver | 55,88% | | | | | | | | | Environmentally friendly behavior - Purchasing driver | | | | | | | | | | People being "often" or "totally" environmentally aware: | | | | considering the "money saving" driver | | 81,25% | | | considering the "environmentally" friendly driver | 71,88% | | | | | | | | | Geographic location - Purchasing barrier | | | | | | | | | | | People living in rural area: | | | | | | put off by the mileage range | 84,62% | | | | | putt off by electricity supply | 69,23% | | | | | | | | | | | People living in urban area: | | | | | | put off by the mileage range | 68,66% | | | | | putt off by electricity supply | 58,21% | | | | |

Behavioral differences between Men & Women | | | | | | | | | | | Population having heard about the launch of the Peugeot iON | | | Men | 34% | | | Women | 20% | | | | | | | | | | | | | | | | | Purchasing decision drivers | Women | Men | | | Impact on the environment | 60% | 57% | | | Money-savings | 80% | 73% | | | Aesthetic - Design | 20% | 16% | | | Confort | 11% | 9% | | | Urban convinience | 18% | 27% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Purchasing barriers | Women | Men | | | | Price | 62% | 55% | | | | Mileage range | 64% | 75% | | | | Electricity supply | 60% | 52% | | | | Confort | 4% | 2% | | | | Performances | 29% | 52% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23% difference
23% difference | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11% difference
11% difference | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * Appendix 2: The different product layers…...

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