¶ … Moller Skycar is assumed to be launched into production in 2013, currently requiring an effective and efficient promotion strategy. Before actually constructing this promotions strategy, it is necessary to identify other elements of the marketing mix, namely the product, the price and the distribution channels. These three additional elements of the marketing mix would not be emphasized, but would be addressed to help set the basis of the promotions strategy. The product

The product is the Moller Skycar, a vertical takeoff and landing craft, more commonly known as a flying vehicle. The investors and technical aficionados have been focusing on their creation for the past recent years now, and more sustained developments are registered at this level.

The Moller Skycar has been named by its creator, Paul Moller, who acted on his passion for flying cars for over four decades (Downside, 2004). The dream of the creator was that of crafting a more efficient alternative to the traditional automobiles, an alternative which would also be easy to maintain and operate, as well as affordable. The skycar is characterized by the following specifications:

Vehicle capacity of 4 passengers

Vertical takeoff and landing

Emergency parachutes

531 kilometers per hour maximum speed

491 kilometers per hour cruise speed (Website of Moller International, 2009)

The price

At the level of sales price, a dilemma is raised. On the one hand, it is required that the price be small enough to attract buyers. In other words, the price has to be affordable for the prospective customers. On the other hand however, the retail price has to be sufficiently high as to cover for the totality of the costs incurred in the manufacturing of the skycar. And these costs are extremely high, especially in a context in...

In this order of ideas:
The price of the Moller Skycar would initially be established with the aid of the penetration pricing strategy, which allows the setting of a lower retail price and which supports promotional efforts

After a pre-determined period, the variable pricing strategy would be implemented. This sees that the retail price is set in accordance to the costs incurred in the manufacturing and distribution of the skycar. This strategy would ensure that the company recuperates its investments.

The place

The place specifically refers to the channel to be employed in the distribution of the skycar. At a traditional level, two alternatives are obvious, namely the indirect distribution through intermediaries, and the direct distributions. In the case of the Moller Skycar nevertheless, the indirect distribution strategy is not viable as intermediaries specialized in this field are scarce.

This then indicates the need for Moller International to implement a direct distribution strategy, which sees that the skycars are directly retailed by the manufacturer. This solution is also useful from a promotional standpoint as it ensures lowered retail prices -- through the elimination of the intermediaries -- and the creation of an ambiance in which the customers and the manufacturers interact directly.

The promotions strategy

In light of the propositions so far introduced, the promotional strategy would be developed and implemented based on the following elements:

a) The retail price

The retail price represents the first…