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Hybrid Jeep Project

In: Business and Management

Submitted By joeonhisway
Words 778
Pages 4
Market Summary

For many Americans, Sport Utility Vehicles (SUVs) have grown to replace mini vans or station wagons as the prevalent family car. This industry has faltered recently with the emergence of Crossovers, which combine aspects of cars and SUVs, as well as because of increased government emissions regulations and increased environmental consciousness. SUVs have become synonymous with low fuel economy and high emissions. Still, SUVs maintain an important market presence for buyers searching for vehicles that combine luxury and comfort with utility. In particular, the Jeep brand of Chrysler Group LLC has a significant presence in the market as a result of being dependable and refined as well as rugged. In order to expand the market presence of the brand, Jeep will move forward with the creation of a hybrid Jeep. The desirability of the Jeep brand will be increased while also maintaining the core values that Jeep aficionados have come to expect.

Target Market

The new hybrid Jeep will be marketed towards current Jeep and SUV owners. In addition, the hybrid Jeep market will be expanded to buyers concerned with the environmental impact of their automobile purchase. With rising gas prices, it will be important to focus on a market of buyers looking for increased fuel economy. This may include drivers with a long commute, drivers and their families looking to save money, or drivers looking for a more spacious vehicle without a large price tag over the long term. The hybrid Jeep will continue to be marketed towards consumers looking for a rugged and reliable SUV with four wheel drive capabilities. Jeep will be able to meet the needs of consumers looking for an SUV with a refined appearance, comfort, and utility. Drivers looking to purchase a vehicle that is safe and reliable may also look to the Jeep hybrid. The new Jeep hybrid will also meet the needs of consumers looking for cutting edge technology and connectivity. Finally, the Jeep hybrid will meet the demands of consumers looking to purchase a vehicle with an individual price and presentation, since the Jeep with be marketed with different models, customizable trims and paint options, and a wide range of available upgrades.

Target Demographic

Traditionally, the majority of Jeeps have been purchased by men in their forties. (DeMuro, 2013) These consumers tend to be married with a college degree and an income of around $100,000. (Ingram, 2013) Jeep drivers are viewed as being outdoorsmen and have reported interests in skiing, hiking, hunting, and other social and action oriented activities. (Ingram, 2013) Smaller, two door Jeeps, are sought by younger consumers without children, who still reported interest in the outdoors. (Ingram, 2013)

Market Needs

This is currently a growing market with few available hybrid SUVs. The SUV market currently has a focus on diesel powered vehicles, though there is a growing positive perception of hybrid automobiles. Additionally, the hybrid SUVs available on the market have a price tag greater than $40,000 (DeMuro, 2013), which dissuades many drivers from upgrading to the hybrid models.

SWOT Analysis

Strengths * The Jeep brand already has a strong consumer base to expand upon and there is already anticipation for the release of a hybrid Jeep. * Jeep is backed by both Chrysler Group LLC and Fiat S.p.A. * The fuel saving capabilities of a hybrid is currently a strong selling point. * A hybrid vehicle will help Jeep to meet new emissions regulations.

Weaknesses * Consumers looking for a reliable off road vehicle could be dissuaded by a hybrid vehicle with an electric motor and battery that may affect off road capabilities. * A hybrid vehicle might incorporate a higher price tag that Jeep drivers will be disinclined towards paying. * A hybrid Jeep will need a good range to meet the current expectations of consumers.

Opportunities * With a hybrid vehicle, Jeep can enter a new market of environmentally conscious consumers. * A hybrid Jeep may attract consumers that previously avoided SUVs because of the low fuel economy. * Overall, the hybrid market is a growing market with increased interest from consumers.

Threats * There is already existing competition from the few hybrid SUVs in the market. * Hybrid SUVs may not be considered cost effective when compared to smaller hybrid models that are on the market. * Current negative perceptions of SUVs may keep consumers away.


Ingram, A. (2013, December 17). Jeep Hybrids Coming, But Concern Over 'Getting You Home' Retrieved September 25, 2014, from

DeMuro, D. (2013, May 28). We, The People, Want Hybrid SUVs. Retrieved September 25, 2014, from…...

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