Question 1

Core product in the smart car:

The core product in the smart car by MCC was traveling in the large crowded cities.

Actual product:
The actual product was a two seated car with the overall length of 98.4 inches. It had a 600cc three
cylinder engine. It had the speed of 90 miles per hour.

Augmented part:
The augmented part of MCC car was that

1. It had the safety features of Mercedes.

2. The funkiness of swatch watch.
3. It had great fuel economy.
4. It was 20% smaller than the typical subcompact cars.
5. It could run on gasoline, electricity, or combination of both.
6. Its engine weighs one tenth of a typical gas engine.

Question 2
Consumer product classification of the car:
The category of consumer product in which that car falls in is specialty product because it had unique
characteristics and higher band associations (Mercedes and Swatch) and consumer will be willing to
make a considerable effort to buy this product. Also if the price is lowered the sensitivity is higher.

The implication of the classification on MCC’s marketing strategies:

The MCC’s car is associated with the strong brands of Mercedes and Swatch so the consumer will be
giving preference to the car and will make special efforts for the purchase. MCC can charge higher price
but as an economic car they are not charging a higher price so due to lesser price the consumer is more
attracted towards the MCC compact car. The distribution of this car will be exclusive distribution in only
one or few outlets/distributors per market areas. The promotion is through more carefully targeted
market such as singles aged 18 to 36, and childless, dual income couples living in urban areas who want
a second car.
Question 3

Individual decisions Reasons for Decisions

The designers abandoned the electric engine. Lack of adequate batteries.
Instead of using traditional assembly line, The car snaps together the company will offer
assemblers will snap the cars together using 5 customers the ability to change the cars’ features.
subassembly modules that come from suppliers’
factories located immediately around the
assembly site in Hambach.

Question 4
Marketing recommendations:
The price of the car is still high to afford so they should lower down the car price so that their target
market can make purchase.

MCC in their street awareness program should also mention the name of the car rather then mentioning
only “reduce to max”

The dealer contract is very strict and its obligations are very tight so MCC must reconsider the input
from the dealer so that they are motivated to make sales.

They also must not be distributing as similar to the franchise system there must be exclusive distribution
as the car is a specialty product.

Question 5
Recommendations to enter the US market: