INTRODUCTION

Our company, XYZ Oil Developers Inc., is in the later stages of developing a new type of alternative fuel. This "alterfuel" will be marketed with the average consumer in mind, especially those who drive large vehicles. We have decided that people who drive vans and sports utility vehicles to be our target market.

DEMOGRAPHICS

According to American Demographics, of people who drive minivans and sports utility vehicles (SUVs), 64 percent are men while 36 percent are women. Minorities are more likely to drive a minivan than a SUV. However, young adults are more likely to drive a sporty SUV than a minivan. Ninety percent of minivan owners are married and 75% of SUV owners are married. The SUV Info link states purchasing an SUV/minivan can be expensive, adding thousands of dollars in gas bills. This is why our company believes that the people in this target market will greatly benefit from our alterfuel.

Forty-eight percent of the owners of SUVs and minivans have incomes of at least $60,000. Minorities are more likely to drive minivans than SUVs because of the income , gas and maintenance of SUVs. Vans are good for hauling kids and groceries. One third of SUVs are actually driven off road. One in three SUV owners tow boats or trailers compared to only 15 percent of minivan owners participating in the same activity. We are hoping to capture the recreational as well as the non recreational side of minivan and SUV travel. Then hopefully, the non-recreational statistics of the gas guzzling SUV, being three out of four owners driving their SUV to work, will increase. This is compared to 60% of the little more fuel efficient minivan owner driving his vehicle work.

SUBGROUPS

The above chart show the breakdown or SUV owners and minivan owners. Geographically, on a daily driving basis, nine percent of northwestern car owners are likely to drive SUVs, while 13 percent are more than likely to drive minivans. For every four minivans driven by southwestern owners, there are one SUV on the road there. Minivans and SUVs are driven by five percent of Midwestern drivers. Otherwise, as reported by American Demographics the SUV is not preferred by the Midwestern and northeastern driver. The claim that three out of four drivers in these regions prefer standard passenger cars.

CONCLUSION

We conclude that the subgroup of people who drive SUVs to have the most potential for targeting. The SUV market is expected to out perform any other market over the next five years according to J. D. Powers. Forty-one percent of all cars American bought were light trucks, which includes the SUV and minivan vehicles. Demographically, SUV buyers are between the ages of 30 and 50 with annual household incomes starting at $50,000 to $60,000. SUV buyer enthusiasm is expected to escalate into 2.2 million sales for the year 2001. However, in the automotive and the oil industry, it is well know that SUVs emit 30 percent more pollutants than the average car. While the smaller SUVs may get as much as 20 to 30 mpg, the larger SUVs such as Ford Expeditions and Chevy Suburbans can muster only as much as 15 mpg. With our alterfuel, we hope to solve problem of fuel economy so often associated with light trucks.


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Sources:

www.suv.org/environ.html

www.sema.org/semanews/july97/cover.html

www.cartalk.cars.com/Survey/Results/Demographics/General/types.html

www.cartalk.cars.com/survey/results/demographics/general/

J. D. Power and Associates 1998 Sport Utility Report

American Demographics, "KeepOn Trucking", March 1996