Friday, April 20, 2007

Alternate Fuel Vehicles - another niche!

I've recently discovered of how the U.S Govt functions with respect to their approach on Alternate Fuel Vehicles.

Although air quality and energy security are high on the list of reasons why fleets switch to AFVs, the bottom line is - Economics - when it comes to purchasing vehicles. For AFVs to substantially penetrate the market, fleets must concentrate its efforts on applications where AFVs make sense...and cents.

Incorporating AFVs into niche markets is a good way for fleets to come out economically ahead of the game. High-mileage, centrally fueled fleets—such as taxis and shuttle services—are good examples of appropriate niche markets. That's because these types of fleets consume large quantities of fuel, so, over time, fleet managers enjoy the cost savings associated with less expensive alternative fuels.

Similarly, low-mileage, high-use vehicle fleets—such as airplane tugs and baggage carts that idle or repeatedly start and stop—are good niche markets.

The niche market approach is a strategy based on a sound and sustainable infrastructure plan, rather than one based on regional vehicle acquisitions. Although both are equally important, niche markets represents an important shift in the strategic mindset of alternative fuel marketing—one that is critical to long-term success.

This was one study which is a perfect example of how a unique product penetrates through the makret because it was targetted to the right niche market!

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