Fisker Automotive’s Marketing Strategy: Shattering Stereotypes in the Electric Car Market

QUESTION

Under the Hood: Marketing Technology

When you think of hybrid or electric automobiles, you probably think don’t think “sports car.”  But the Fisker Karma is about to shatter that stereotype. It’s been called the hybrid with “sex appeal” and is often compared to a Mercedes-Benz roadster. During the haughty Rolex Monterey Historic Automobile Races, it was seen cruising around Monterey, California with the likes of Ferraris and Lamborghinis. In the increasingly crowded field of new-generation electric vehicles, Fisker Automotive wants to carve out a niche as a high-performance eco-car with lots of style. The creator, Henrik Fisker, was formerly head of design at Aston Martin. The Fisker Karma goes from 0 to 60 in six seconds, can go 125 miles per hour, and can travel 50 miles on electric power and 300 miles on combined electric and gasoline power. All this performance and style does not come cheaply, however. Prices range from $87,900 to $106,000. The company already has orders from 1,400 buyers. If this is above your means, don’t worry—the company is promising a lower-priced, mass-market version for the rest of us in a few years.

Question 1

On what basis is Fisker Automotive segmenting the automobile market?  Is the company using a single segmentation approach or a combined approach?  Explain. (20 marks)

Question 2

What market targeting strategy is Fisker pursuing with this automobile?  (10 marks)

Question 3

How is the company differentiating its automobile and which value proposition is it using? (10 marks)

ANSWER

Fisker Automotive’s Marketing Strategy: Shattering Stereotypes in the Electric Car Market

Introduction

Fisker Automotive has emerged as a trailblazer in the electric vehicle (EV) market, challenging conventional perceptions by combining high-performance capabilities and eco-consciousness. This essay delves into Fisker’s marketing strategy, examining its segmentation approach, market targeting strategy, and differentiation tactics, all of which contribute to its unique value proposition.

Question 1: Segmentation Approach (20 marks)

Fisker Automotive employs a combined segmentation approach to effectively position itself in the automobile market. The company identifies and targets multiple segments, aligning its offerings with varying customer needs and preferences. One dimension of its segmentation is based on psychographics, focusing on consumers who value both environmental sustainability and high-end performance. These individuals seek an eco-friendly vehicle without compromising on style and speed. Fisker’s ability to offer a compelling blend of luxury and environmental consciousness attracts this segment.

Another dimension of Fisker’s segmentation approach is based on demographics, specifically income levels. The Fisker Karma’s premium pricing places it within the luxury car market, targeting affluent consumers who are willing to invest in cutting-edge technology and exclusivity. The company acknowledges the presence of a niche market of environmentally conscious high earners who seek a unique status symbol that reflects their values. Moreover, Fisker strategically differentiates itself from other EV manufacturers by emphasizing design and aesthetics, appealing to consumers who desire a distinctive and visually appealing vehicle.

Question 2: Market Targeting Strategy (10 marks)

Fisker Automotive employs a niche market targeting strategy, aiming at a specific subset of consumers who desire a harmonious blend of performance, luxury, and eco-friendliness. By focusing on this niche, Fisker avoids direct competition with established luxury car brands while capitalizing on the growing demand for sustainable alternatives. This targeted approach allows the company to cater to a smaller yet loyal customer base that values the unique attributes of the Fisker Karma.

Question 3: Differentiation and Value Proposition (10 marks)

Fisker differentiates its automobile through a combination of design, performance, and sustainability, ultimately offering a compelling value proposition. The company’s founder, Henrik Fisker, who previously held a significant role at Aston Martin, brings a legacy of luxury design to the brand. The Fisker Karma’s sleek and elegant aesthetics set it apart from the more conventional-looking electric vehicles in the market.

In terms of performance, the Fisker Karma challenges the stereotype that eco-friendly cars lack power and speed. With acceleration from 0 to 60 mph in six seconds and a top speed of 125 mph, it offers exhilarating driving dynamics that appeal to sports car enthusiasts.

Fisker’s value proposition revolves around its ability to provide environmentally conscious consumers with a guilt-free high-performance vehicle. The Karma’s electric powertrain allows for emission-free driving for up to 50 miles, appealing to eco-conscious individuals who want to reduce their carbon footprint. Furthermore, the extended range of 300 miles using combined electric and gasoline power ensures practicality for longer journeys.

Conclusion

Fisker Automotive’s marketing strategy successfully combines segmentation, market targeting, and differentiation to carve out a distinct position in the hybrid and electric automobile market. By targeting a niche audience that values both luxury and sustainability, the company challenges conventional perceptions and establishes itself as a pioneer in the realm of high-performance eco-cars. As the automotive industry continues to evolve, Fisker’s innovative approach serves as an inspiration for other players to explore unique avenues in the pursuit of a greener and more stylish driving experience.