The models are targeting the same consumer segment in the market. The vehicles target consumers looking for compact and fuel-efficient vehicles. Moreover, they are all suitable for urban driving. However, each model has its unique features. They also have different design elements that appeal to different consumer preferences.
Smart's US launch was too late in the US market. These other cars were all introduced in the US market earlier than Smart (Keegan & Green, 2016). The car has never achieved the same level of
success as its competitors. One factor that contributed to Smart's slow start in the US market was
the cost. The car was expensive when it was first introduced. It was also marketed as a niche vehicle. It was not clear to many consumers who the target market was. Additionally, the Smart faced competition from several other small cars already well-established in the US market.
Question 3
Penske Automotive Group's lack of involvement with Smart disrupted the existing distribution network. Terminating the distribution agreement with Penske meant that Smart USA must rely on a new distribution partner. The transition disrupted the existing relationships established by Penske. Therefore, it will affect the availability and visibility of Smart cars in the US market. Penske Automotive Group had set an ambitious goal of selling 16,000 Smart cars in the first year. They exceeded the target by selling 24,622 cars in 2008 (Keegan & Green, 2016). Terminating the distribution agreement raised questions about whether Mercedes-Benz USA can replicate the level of success. The change in distributorship also led to uncertainties in marketing strategies. It also led to promotional efforts challenges, affecting sales performance.
Penske Automotive Group's lack of involvement with Smart also led to a time-consuming and expensive processes. Penske distributed Smart cars in the US (Keegan & Green, 2016). It had a large network of dealerships across the country. Moreover, the company invested heavily in marketing for Smart. Therefore, it helped to raise awareness of the brand among US consumers. Therefore, Smart had to find a new distributor and rebuild its dealer network. The process was expected to be time-consuming and expensive for the company. Therefore, it also affected Smart's sales in the US.
Question 4
Smart USA's social media strategy involves leveraging Facebook and Twitter. The company used
the social media platforms to engage with its audience. They were also used to build brand awareness. The company has accumulated over 100,000 likes on its Facebook page (Keegan & Green, 2016). Therefore, it has a substantial online following. Using the brand's Twitter handle is
also a smart move to connect with users who prefer real-time interactions. The company used "The Great Dumb Trade-In" to engage with various online customers (Keegan & Green, 2016). The campaigns have been effective in encouraging followers to think about sustainability. It has also encouraged followers to practice mindful consumption by retweeting owner comments about their vehicles.
The additional channels that could enhance Smart USA's social media presence are Instagram and YouTube. Instagram is a visually-oriented platform. Smart cars' unique design and style were
visually appealing to most people. The platform will provide an opportunity to showcase the
