LAND ROVERing the markets!

Land Rover is considering launching a smaller, more fuel-efficient vehicle in an attempt to shed its image as one of the worst polluters in the car industry. The news comes as regulatory and consumer pressure grows on carmakers to cut carbon dioxide (CO2) emissions.

Land Rover is already taking steps to lower emissions from its existing line-up and runs one of the car industry's largest carbon-offsetting programmes. But its smallest vehicle, the Freelander compact sports utility vehicle (SUV), emits 194g of CO2 per km compared with a target of an average of 140g per km being proposed by the European Union by 2008.

Geoff Polites, who runs Land Rover and sister marque Jaguar, told the Financial Times: "Part of the process will include downsizing and smaller, more fuel-efficient vehicles."

Land Rover and Jaguar's parent company Ford is "reviewing options" for the brands, which is widely expected to lead to a sale.

"And which market do you cater to?"

The evolution of our mature marketplace, along with the technology that allows consumers to be in control, has created a seismic shift from one-size-fits-all mass markets to millions of markets of self interest. All mature markets inevitably evolve into this kind of economy, driven by ever-narrower markets of desire and ever-narrower facets of individual self-identities.
Obviously, as every market matures, choice increases. Then competition drives up quality and convenience to the point at which offerings become 'commoditized'. The only businesses that then thrive are those that move beyond "me-too" or incremental offerings to marketing more-relevant and more differentiated products and services. The only way to accomplish this is to focus on a narrower target.

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!