Bio-Scan Car Ignition Bioscan Car

Bio-Scan Car Ignition

BioScan Car Ignition

The technological advancements and developments change the world on daily basis and affect all features of life. The automobile sector has not escaped these changes as they force automobile manufacturers to adapt to the new demands. Most all international car producers have incorporated cutting-edge technologies into the cars as to make them more modern, useful, efficient, attractive and safe. An arising crucial change is that of increased security and reduction of automobile thefts. An American car manufacturer has decided to develop a bioscan ignition vehicle which would recognize the owner by the print of his right thumb instead of using metallic keys.

Product description

The automobile with a bioscan ignition uses the print of the owner's thumb to open and start, instead of the classic metallic key. All basic features and functionalities are similar to other luxury cars, with the specification that the bioscan ignition offers the owner a better sense of security and reduces the chances of theft.

The new vehicle incorporates cutting edge technologies and it is the result of years and years of hard work. The final result is an automobile which offers the customer the guarantee of high quality and the promise of a better security and protection against thefts.

The general aspect will be similar to other cars, with the specification that the design is a modern and luxurious one. The main difference between the new cars and the classic ones is the opening and starting system, which requires the recognition of the owner's right thumb print. The recognition device is placed on the door nub, where the key used to be introduced. Whenever the owner desires to use his vehicle, he will place his right thumb onto the recognition device, which will compare the thumb with the thumb print taken from the owner at the moment of purchase. If the print matches the sample in the database, the car will open.

The bioscan is a double system in the meaning that it requires the user to verify the thumb print twice: once when opening and entering the car, and a second time when starting the car. Provided that the print does not match the one received by the manufacturer at the sale time, the car will not only remain closed, but it will launch an alarm system which will announce the user that someone is trying to illegally enter his vehicle. The alarm system is also connected to the local authorities which arrive at the place in just few minutes, sometimes even before the owner. A new feature for the future models of bioscan ignition cars will be that of aiding to the capturing of the thief, but the technicians are still working on ways to achieve this. The cutting edge technologies incorporated in the new car not only make it safer, but they also make it more comfortable.

3. Situation analysis

There are two major but opposite trends in the automobile manufacturing industry. The first trend is that of creating small size and fuel efficient cars which reduce waste and pollution, protecting as such the environment. This trend is more common with Japanese manufacturers. The second trend revolves around creating large size luxury automobiles which protect the safety of the owners and their families. This trend is most common amongst American producers. The one component each type of cars share is the incorporation of cutting edge technologies and the producers' continuous strive towards developing and implementing other new technologies.

SWOT analysis

Internal strengths

The manufacturer possesses skilled and committed workforce

Cutting edge technologies to incorporate in the automobiles

Delivers high quality products

Offers customers additional and complementary products and services

Buyers have the possibility of personalizing and customizing their purchased automobiles

Internal weaknesses

Increased production costs, including commodities and costs with the human resource

The manufacturer addresses a rather niche market

The automobiles have an increased retail price

External opportunities

Increased demand for safe cars

Continuously developing technologies

The need for reducing automobile thefts

External threats

Increased environmental concerns which demand reduced levels of waste and fuel consumption

Fierce competition on the American market from internationally acknowledged car manufacturers (Ford, General Motors)

Fierce competition from the European and Asian producers.

The SWOT analysis highlights the factors which influence the company and the industry in which it activates. In order to comprehend the macroeconomic forces which affect the entire environment, a PEST analysis should be conducted.

Political forces

The political and legal regulations promote free trade and encourage fair competition. They also implement environment and human rights protection policies. Manufacturers' compliance with the regulations is being constantly monitored by state institutions and affects companies in the meaning of generating additional costs and requiring increased efforts.

Economic forces

The basic economic force which affects all businesses resides in the weakening of the U.S. dollar in comparison to the growing and appreciation of the European currency. Other forces regard the real estate market, inflation, interest rates, increasing taxes, the record high price of crude oil and the increased amounts of national debt. All these have negative impacts as they force citizens to limit their spending budgets.

Socio-cultural forces

Two major socio-cultural forces stand out: the need to limit illegal actions and automobile thefts and second, the need to reduce energy consumption and the level of waste and pollution.

Technological forces

The technological developments force manufacturers to adapt to the changing needs. In addition, technological advancements aid automobile producers foresee and satisfy customers' needs.

4. Target market

In order to insure a successful launch of the bioscan ignition car, the producer must first analyze the market features and demands and must identify its target audience. Market researches are being conducted by the company's own marketing department or by tertiary parties, generally marketing specialized companies. The market research is necessary as it aids the company in reaching its final goals. In this order of ideas, once the company has established its objectives, a marker research will reveal the interested customers and their demands, aiding as such the company to know and address the appropriate segment. Without a market research, the company would risk addressing the wrong crowd and loosing significant financial resources.

The best way of identifying the target market is the segmentation of the entire audience by the criteria considered most relevant to the product launched. As such, given that the bioscan ignition car is a luxury product, a significant criterion would be income. The second major criterion is age. Based on the two, the target market is formed of both men and women of ages between 25 and 55 who register above medium incomes. The income limitation is given by the increased price of the bioscan ignition car and it is based on the belief that people registering below medium incomes would not afford the rather high price of the automobile. The age limitation is imposed by the belief that people younger than 25 rarely possess sufficient financial resources to purchase a bioscan ignition car and that people older that 55 have different interests and do not prioritize the purchase of a new and modern automobile, even though this increases their safety.

The manufacturer will also address other markets in the attempt to familiarize the audience with the product as he believes that other citizens are interested in purchasing the bioscan ignition car. The primary target remains however the segment formed of individuals of ages between 25 and 55 and who register above medium incomes.

5. Competitive analysis

In order to best understand the forces which drive competition on the automobile industry, the company should first analyze Porter's five forces:

Threat of new entrants - Low: the automobile industry is a fierce and rather saturated one and does not easily welcome new companies.

Bargaining power of buyers - High: Consumers set the trends through their specified demands, such as the demand for environment protection which led to the manufacturing of the fuel efficient engine.

Threat of substitute products - Low: Automobiles are unlikely to be replaced; they do function complementarily with other transportations means, but will not be replaced by them.

Bargaining power of suppliers - High: Purveyors set the prices; a price increase in commodities would be reflected in the retail price to the end consumer and would decrease the demand.

Rivalry among competing firms - High: National and international car manufacturers strive to present their customers with the best and latest innovative products in the attempt to increase their market share and consequently their profits.

The bioscan ignition automobiles face two kinds of competition. First, they fight against the small size and fuel efficient vehicles. Then, they face competition from the luxury and safety cars. But the two categories address different market segments and the bioscan car market gets intersected with the market for luxury cars, therefore the small cars manufacturers pose reduced threat.

The reasons which make the bioscan ignition car to be preferred in comparison to competing automobiles include:

Similar price range as bioscan cars are not much more expensive that key luxury cars

They offered increased safety and security against car thefts

They incorporate cutting-edge technologies

The manufacturer offers buyers the possibility of personalizing and customizing their automobiles

Flexible and adaptable payment possibilities (the company offers financial consultancy for potential customers)

6. Marketing Mix

The marketing mix is composed of the features and strategies which accompany the launched product, its retail price to the end-user, its promotional programs and the channels selected for its distribution.

Product

The bioscan ignition car will be sold under the manufacturer's brand with the specified functionality of serving as transportation means

The new automobile incorporates cutting edge technologies which increase safety and protect the owners from theft

The car has a high quality

The manufacturers offers additional and complementary products (components) and services (financial consultancy)

The cars have a 5-year warranty, after which owners are encouraged to visit the manufacturer's service facilities

Price

Follow-the-leader price strategy, which implies that the manufacturer will implement prices based on the market and the prices implemented by competing firms

Variable price strategy, meaning that the price is directly connected with the production factors and a price increase in these factors will be reflected in the car's retail price

Promotion

The producer will develop and implement an advertising campaign on all available media channels through radio announcements, television and internet advertisements and street banners

The bioscan ignition automobile will be presented at industry meetings

The manufacturer will grant interviews to specialized magazines and journals

The public relations department will contact old customers and will inform them of the features of the new vehicle

Special sales and offers, such as free consultancy and service for 7 years, extended warranty or complementary products

Place

The bioscan ignition car will be placed onto the market and sold to the final customer through intermediaries

The manufacturer does not own a sales facility and opening one would imply additional costs; therefore the usage of intermediaries is cheaper even though it poses some inconveniences

All constructed automobiles will be stored in the manufacturer's own warehouses and will be delivered to intermediaries both for show as well as based on customer orders.

7. Budgets

The production and launch of the new bioscan ignition automobile will generate significant costs for the manufacturing company, but they hope to achieve a full return of their investments within the first two years of sales. The figures for the first year are presented below:

millions of U.S. Dollars =

2008 Q1

2008 Q2

2008 Q3

2008 Q4

Expenditures

Sales revenues

Net profits

The highest expenditures will be registered throughout the first quarter of fiscal year 2008, when the production costs will be increased with the promotional and advertising costs. The investments will however return in the form increased sales. The large sales are however unsustainable with promotions and will decrease in the second and third quarter due to the ending of the promotional campaign. The forth quarter of 2008 will once again be marked by holyday promotions and special purchases and will generate increased expenditures, sales revenues and net profits.