Electric Vehicles Market Research

the future of electric vehicles!
the renault twizy case
is milan ready for the future?
Alessio Aristide Di Salvo
1656719
Mattia Deserti
1655570

general overview
“Given the role that transport plays in causing greenhouse gas emissions,
any serious action on climate change will zoom in on the transport sector”
Yvo de Boer, Executive Secretary of the UNFCCC
Tokyo, January 2009
Cities like London or Amsterdam are already investing
on the development of Electric Vehicles’ culture
In our research we will analyze if Milan is ready to follow
the sustainable trends and eventually anticipate them
We are going through it by assessing the Milaneses
predisposition towards the iconic Renault Twizy and its
profitability

general overview
Cities like London or Amsterdam already massively investing on
the development of Electric Vehicles’ culture
charging points in
european panoramic!
The city of Amsterdam has ambitious european capitals!
environmental targets and plans for 10.000
electric vehicles in the city by 2015.
§ London
857
§ Oslo
735!
§ Paris
458!
§ Amsterdam
245!
§ Barcelona
76!
§ Dublin
66!
London is continuously increasing the
number of charging points along the city’s
streets, planning to reach 1.300 point by 2013.

general overview
In our research we will analyze if Milan is ready to follow the
sustainable trends and eventually anticipate them
e-moving project!
an experimental project, in partnership with Renault, driven by
the Italian energy supplier A2A
since electric vehicles represent the future of transportation, the
purpose of the project is to provide an efficient system of
charging points that will allow a synergic development of the
market
the project involves at the beginning the cities of Milan and Brescia.
In the long run the aim is to create a wider network of the main
Lombardy’s cities (e-mobility point-to-point)
31 charging
points in Milan!

general overview
We are going through it by assessing the Milaneses predispositions
towards the iconic Renault Twizy and its profitability
a living city!
a trend setter city in which fashion is a relevant factor
that plays a fundamental role in the daily routine
since Twizy is a completely new concept of transport
and, as an electric vehicle, takes care of the
environment, we would like to measure how
Milaneses perceive this innovation

geo/demo-graphics
C Area involves the “Cerchia dei Bastioni” zone
and 77.000 inhabitants. It doesn’t seem to be
appreciated by Milaneses.
"
Somebody is also concerned about the real
impact that this measure has on the environment.
Residents in Milan!
Male
Female
628.654
695.45648%!
Milan is the second most 52%!
populated city of Italy
8,3 km2!
1.324.110 inhabitants

what is a pure EV
An electric vehicle (EV), also referred to
as an electric drive vehicle, uses one or
more electric motors or traction motors
for propulsion.
it doesn’t have to refuel in a petrol station,
instead the battery can be charged at
home, work or at a public charge point
as advised by manufacturers, most electric cars
currently available have a range of up to 100 miles
the majority of the latest EVs now entering the
market are M1 class passenger cars, which must
meet all EU requirements for cars including
international car crash test standards
the average range an EV could go before
the battery runs out is certainly enough to
get where you need to go in town

electric vs gasoline
electric!gasoline!
no tailpipe emissions
utility company
100+/- km range
hours to recharge
0,015 euros per km
greenhouse gases/pollution
OPEC
300+ km range
minutes to refuel
0,17 euros per km

the use of EV
further more we think that brand attitude is focused on environmental-friendly
aspects of electric vehicles. What if the key success factor
be the cheapness?
factors that affect it
battery autonomy does not allow heavy car users to drive for more
than 150 km
institutions don’t give the right importance to the development of the
electric culture and stimulate the electric car demand like in other
countries with proper investments

the renault twizy
ultramobile all-electric two-seater vehicle
homologated as a quadricycle
a range of 100 km over a standard urban cycle
and can be fully recharged in 3 ½ hours from a
domestic socket, using a spiral cable located
under the flap at the front of the car
2.34 m long!
1.24 m wide!
1.45 m tall!
A sporty, elegant and compact urban vehicle!
modern design; open bodywork with sweeping
lines, original (optional) gull wing doors, a
windscreen and roof forming a large glazed
area, as well as lights creating an original
lighting signature

market structure
industry!
Incumbents pushed by CARB and EU regulation
New entrants enter relatively late
price/performance ratio limits EV
technology! mass market appeal
market! Tradeoff between range/speed and costs
Convergence toward Li-ion batteries
Niche markets sought for LSV and sports cars
Early adopters are supported by tax schemes
Firms initially uncertain about
technological options
New entrants focus on niche markets
Incumbents target mass markets

competition framework
quadricycle market segment!
Renault Twizy
Estrima Birò
Other
Twizy is the leader of the
category. With more than
79% of market shares it
represents the most sold EV
in Italy.
sales in 2012
1421 units
price from
6.990 €
Birò is the main competitor of
Twizy. However its
characteristics diminish its
potential threatening power
sales in 2012
261 units
price from
7.500 €
79%
15%
6%

competition framework
extended market segment!
The electric vehicles market is composed also of other cars, that differ from the Twizy in price
and characteristics. Below a selection of the most diffuse models:
Nissan Leaf! Citroen C-Zero! Peugeot iOn!
sales in 2012
102 units
price from
38.500 €
sales in 2012
112 units
price from
28.318 €
sales in 2012
140 units
price from
28.321 €

research question
measuring the aptitude of milan’s
citizens in changing their mind to
more eco-sustainable vehicles
measuring the inclination of milan
to drive the change
measuring the profitability of
renault twizy in milan
is milan ready for the future?
1!
2!
3!

target population
We decided to apply a stratified method to our target population in order to define the
sample.
MALE
FEMALE
TOTAL
18-24
38.473
25%
35.334
22%
73.807
47%
25-30
41.900
27%
40.797
26%
82.697
53%
TOTAL
80.373
52%
76.131
48%
156.504
100%
We will take into
consideration the
proportions of the
target in designing
our sample.
At the launch of the product Renault aimed mostly to 30-50 target. We think that it would
be profitable to focus on a lower age range.
The change could
start from them.

threats and opportunities
The Twizy personality may drag it in a completely new market segment that
hasn’t already defined shapes: neither a specific target nor a precise positioning
threats!
the particular nature of Twizy may cause
confusion in the consumers’ minds: they
might not be able to perceive the added
value of the vehicle
opportunities!
the market is at an early stage of
development
the presence of more conventionally-designed
electric vehicles may pull
consumers towards a more traditional
purchase approach
define a new segment and be the
category leader
exploiting the benefits of being the first
mover, making the other brands irrelevant
take advantage of the new concept
design may allow Renault to introduce an
innovative way of conceiving cars

the questionnaire
screening
environment perception
citizens and the city of Milan
electric vehicles
renault twizy
general/socio information
SECTION!
1
2
3
4
5
6
TYPE OF SECTION! OBJECTIVE!
assessing respondents’ current car ownership and
forecasting their intention to buy for a conventional car
measuring attitude towards general environmental issues
how do Milaneses perceive the environmental situation of the
city? what about the solutions?
assessing knowledge and attitudes towards electric vehicles"
(conjoint, brand awareness, willingness to switch)
measuring the potential profitability and appeal of the product
defining customer profiles
Q_n!
1-4
5-6
7-11
12-21
22-25
26-30

fieldwork
distribution method!
for our interviews we used CAWI, for it being more
comfortable for the respondents as well as for us.
we based our questionnaire on the Qualtrics Software,
submitting the link to a total of 205 interviewees
pre-test!
initially, we tested the questionnaire on 5 people.
we received positive feedbacks both on the structure
of the questions and on the length of the questionnaire

sampling error
Male
Female
Total
20-24
49
(24%)
53
(26%)
102
(50%)
25-30
54
(26,5%)
48
(23,5%)
102
(50%)
Total
103
(50,5%)
101
(49,5%)
204
(100%)
§ we collected 205 questionnaires but deleted the first respondent because he/she
completed just half of the questionnaire
§ previously our target population was 18-24 and 25-30, but since we did not manage to
have respondents under 20, we decided to reduce our sample age between 20-24 and
25-30
§ we selected our respondents as resident or citizens of Milan so we respected the initial
aim. The expectation is that the sample is very representative of the population.

data auditing
Since the willingness to pay is the variable the most affected by outliers, we decided to start
from here for the data auditing. The current plots don’t give us the opportunity to find
reliable business insights.
How much would you be willing to pay
for a petrol/diesel fueled car?
How much would you be fair price
for an Electric Vehicle?
Final Range
2.000 – 60.000€
Final Range
2.000 – 30.000€
30.000€
From a business
point of view we
decided to keep
these values since
they represent a
reasonable market
price for an EV.

data auditing
How do you feel toward ecology
In analyzing this question we
didn’t take outliers into
consideration because the
values out of the box-plot
were affecting badly both the
mean and the Std. Deviation.

data auditing
question 6
Concern about environmental issues
We found out that the
outliers for these questions
were always almost the same
respondents; this fact was
negatively affecting our
results.

data auditing
checking goodness of data
(Q_8_4) Give a score to the township effort in
solving the previous issues
(Q_30_9) How do you consider yourself
(Q_16_4) Why would you not buy an Electric
Vehicle
We performed the box plot of question:
§ Q_8_4
§ Q_30_9
§ Q_16_4

demographic nationality
97%
3%
Italian
Non-Italian
The majority of interviewees are
italians with 6 of them being non-italians.
In order to better fit the aim of our
research, while submitting the
questionnaire we carefully selected
respondents as inhabitants of Milan.
We observed 2 missing values.
univariate analysis

demographic gender
50,50%
49,50%
Male
Female
univariate analysis
We tried to maintain the
ratio of the target population
(Istat data*) with 103 males
and 101 females.
* 52% male
48% female

demographic age range
50,00%50,00%
18-24
25-30
univariate analysis
The pie chart shows a perfect
distribution of the age between
our two ranges, not far from
our target population.
(47% 18-24, 53% 25-30)

demographic occupation
univariate analysis
Our target population is well balanced
between students and non students.
54%
20%
5%
14%
7%
Student
Freelance
Entrepreuner
Employee
Other
Twizy is an innovative vehicle that fits well
the lifestyle of people living in Milan, just like
students or workers. Anyone that could
need a fast and smart vehicle.

environment attitude & issues
With Question 5 we tested general
attitude of respondents towards ecology.
As the histogram shows, participants
were highly concerned about ecology.
The issues were rated quite similarly with the mean ranging
from 7.07 to 8.20."
"
Nevertheless, Air Pollution is perceived slightly higher than
the other environmental issues (with regards to Std.
Deviation and Skewness)
univariate analysis

environment attitude & issues
bivariate analysis (attitude * occupation)
Do attitude towards environment change with occupation?!
H0 attitude towards ecology do not change with occupation
H1 occupation influences attitude towards ecology
results!
With a significance at .035 we reject H0. Since we observed an Eta Squared
value equal to .051, the relation is quite weak.
business!
insight!
Since occupation does influence the attitude
towards ecology, it should be taken into
consideration in defining the target customer.

environment Milan issues
(Q_7) Regarding Milan, which are in your opinion the most critical issues? Please rank them in order
With question 7 we asked to rank the most critical issues of Milan. The
results show that Air Quality has been rated as most critical. This outcome
is aligned with the insights of Question 6 where Air Pollution registered the
highest mean value.
Therefore, this variable seems crucial to us, given
the fact that Twizy is a Zero Emission vehicle.
business!
insight!
results!
univariate analysis

environment Milan issues
univariate analysis
How do citizens perceive the efforts of the township in solving environmental issues? !
Respondents rate them as being very poor. Especially, as results show, Parking
and Acoustic Pollution seems to be the worst.
How may these results affect our research?!
Since Twizy is easy to park thanks to its dimensions and has a silent engine it may
be the best solution for both these issues.

environment Milan air quality solutions
What are the best solutions for air quality in Milan?!
RANK! VARIABLE! FREQUENCIES!
Public transport
1empowerment
2Electric Vehicles
3Bike sharing
Congestion Charge
4(Area C)
Restrictive control on
5non-catalytic vehicles
87
65
53
55
89
univariate analysis (mode)
These results can be taken into account for
further business implications.
With question 9 we asked
respondents to rank the best solutions
for air quality among the five listed.
At first place we find public transport
empowerment that is an obvious result
for a metropolis.
Electric Vehicles ranked as second
thus depicting them as a great
solution for air quality.

35%
60%
5%
car
engine
Diesel
Petrol
Hybrid
transport car ownership
(Q_1) Do you own a car?
We observed 13 missing values.
The interviewees that answered ”I don’t
own a car” are 26: we could assume that
13 of them considered their family car in
specifying the car engine, while the
remaining 13 do not own a car at all.
Please specify your car engine. (Q_2)
univariate analysis

transport most used
120
100
80
60
40
20
0
Car
Motorcycle
Bicycle
Public Transport
More than half of respondents prefer
Public Transport as means of
transport in Milan.
26,5%
11,3%
6,9%
55,4%
(Q_11) Which is the means of transport that you use THE MOST in Milan?
However the 26,5% of respondents use
mostly the car as means of transport. If
we consider the Milan’s overall population
between 18 and 30 years old, the relative
catchment area could be roughly about
41.000 customers
univariate analysis

transport most used vs ideal
bivariate analysis - ideal means * most used means (crosstab)
We may notice a paradox in this crosstab: although
ranking the last as the ideal means of transport (3,9%),
car was selected as the second most used (26%).
We can confirm the hypothesis stated on the previous
slide, that is, the car market is still a huge profitable
pool of customers.

EVs willingness to buy
would you buy an electric vehicle?
Yes
No
In answering the question, why would
you not buy an electric vehicle, the
majority of the respondents identified
the lack of charging points as the main
reason.
business!
insight!
Following the example of cities like
London and Oslo, might serve as a
great boost to the performance of the
market.
results!
univariate analysis – would buy an electric vehicle? why not?

EVs willingness to pay
univariate/bivariate analysis (correlation)
20.000,00
15.000,00
10.000,00
5.000,00
0,00
WTP for a petrol/diesel
car
WTP for an electric car
17.788,89
12.811,11
€
Std. Deviation
7.917,867
Std. Deviation
5.364,677
As the data show, the WTP for an Electric Vehicle
is sensitively lower than the WTP for a petrol/
diesel car. We think that this result is mainly
affected by the customers’ knowledge about this
newly born market.
As we pointed out in slide 14, the
mean price for an electric car
(excluding the quadricycle segment)
is higher than that expressed by our
respondents.

bivariate analysis – type of usage * would you buy an EV (crosstab)
Between those who would be willing to
buy an EV, the 61,6% would buy it as a
direct replacement for a car.
EVs the Change
What about those who would not be
willing to buy it?
43,2% of them would buy it in addition
to another car. This suggest us that they
still perceive a far distance between a
conventional car and the EV.
The p-value is significant and the
Cramer’s V is higher than 0,2, thus
there is a good degree of relation
between them.

EVs the Change
bivariate analysis – (when would you be likely to purchase it)2 (crosstab)
The Cramer’s V index shows
a good degree of association
between the variables (.388).
The majority of respondents
would be willing to buy a new
car/EV in the next 5 years.
That suggest us that the
improvement effort should be
concentrated in this time
range in order to pull the
demand.

univariate analysis – Select which of the following brands manufactures EV
Car Brands!
With this question we tried to asses the respondents’
knowledge about PURE EV manufacturers.
0
20
40
60
80
100
120
140
Volkswagen
Toyota
Smart
Mitsubishi
Renault
Nissan
BMW
Citroen
Chevrolet
59,3%
38,7%
There are two important facts about the
results:!
§ Toyota was the most selected (121 times)
though not producing pure EV but just Hybrid.
We can say that customer recognize Toyota as
being the most innovative manufacturer"
§ Renault was the second most selected brand
(79 times)
Let’s analyze more deeply
the phenomenon
EVs the Manufacturers

Twizy knowledge of the vehicle
which of the following brands manufacture EV * do you know Twizy (crosstab)
We noticed a discrepancy in data.
Within those who did not
recognize Renault as EV
manufacturer (Q_13), 85
respondents answered Yes when
we asked if they know Renault
Twizy.
Business insight
We can assume that"
1. Brand Relevance of Renault
in this segment is not so
significant "
2. Renault is not exploiting all
the advantages of being the
first mover in the market.

Conjoint analysis
We performed a conjoint analysis on question 21. This method will allow
us to discover and analyze the key attributes that may affect the
purchase decision.
How does the perfect EV look like!
Through the Orthogonal Design Method, we defined 8 different scenarios
based on the following attributes:
SEATS
2 - 4
OPTIONAL
basic - full
DESTINATION
main vehicle – in addition
USAGE
urban – extra urban
general overview

Conjoint analysis
As the table shows, Optional and Purchase
Destination are the most valuated attributes.
Unfortunately our analysis is affected by the
absence of the price attribute. Indeed, we think
that it could have been a fundamental element in
assessing the customers’ orientation.
analysis by global rating

Conjoint analysis
The best scenario is
therefore defined as 2 seats,
full optional, perfect for
urban usage and in addition
to another vehicle.
analysis by global rating
These results are really useful to us for they define a close configuration of what
Twizy, our product, is.

Conjoint analysis
analysis by classification (occupation)
We decided to run a conjoint analysis together with occupation (Q_29) in order to
understand if the belonging to a specific group could change the utility of each
attribute.
We focused on two groups (Students and Entrepreneurs) because we found
significant results only for them.

Conjoint analysis
student!
Importance values are the same for global rating as well as for students. Anyway, we
noticed a slight and not so relevant difference in the SEATS attribute, switching from 2 to
4. Given the Utility Estimate value, Global Rating is a good representation of this sub-target
too.

Conjoint analysis
entrepreneur!
Importance values differ from the Global Rating. Now SEATS and USAGE are the most
relevant. These results reflect the characteristics of the occupational category: for example
the switch from URBAN to EXTRAURBAN is explained by the need of mobility that an
entrepreneur may have.

Multiple linear regression
general overview
We would like to explain which are the variables that may affect the price for an Electric Vehicle
(Q_20). With this aim, we ran a multiple linear regression (Stepwise Method) using as
dependent variable Q_20 and as independent the following list of variables:
!
§ Q_18 Factors influencing EV purchasing
§ Q_23 Twizy characteristics
The Anova table shows a p-value < 0,05 for
both the models. So we can proceed with our
analysis, in particular with the second model.
The Adjusted R Square defines a model that
explain only the 3% of the variance in our
dependent variable.

Multiple linear regression
conclusions
Analyzing more in depth the model, even thought p-value is lower than 0,05 the VIF value (that
highlights multicollinearity problems) is lower than the threshold of 1,1/1,2. So we can infer that
the model is not reliable and we can’t draw any kind of business insight.
This consideration is aligned with what we thought could represent a problem: the fact that the
market is so young that consumers do not even know what a fair price for an electric vehicle
could be (as shown in Slide 41). Consequently is not possible to infer what are the factors that
affect the consumers price perception.

Factor analysis
general overview
Since our purpose is to assess respondents attitudes towards electric vehicles and Twizy in particular,
we decided to focus on those variables that, by our knowledge, could give us more information.
Thus, as input for our factor analysis we used two quantitative questions for a total of 13 variables:
§ Q_18 Factors influencing EV purchasing
§ Q_23 Twizy characteristics (we decided not to insert the variable “Frontal Airbag” since we
think it is not a crucial element in the purchase decision)
We used the Principal Components Method in order to have possibly correlated observations
transformed into standardized linearly uncorrelated variables.
Agenda
§ 1/3 of variables (4 or 5 components)
§ total variance explained between 60% and 75%
§ scree plot (eigenvalues > 1)
§ communalities (threshold 0,4)
§ rotated component matrix
§ business interpretation

Factor analysis
analysis: screening
At the beginning of the analysis we
considered 4 as the fixed number
of factors, given the ratio between
the number of components and
variables as 1 out of 3.
This solution explained the 61% of
Variance. However since the value
is close to the threshold of 60%,
we decided to try increasing the
number of factors.

Factor analysis
analysis: total variance explained (before the rotation step)
With this solution we reached a
significant value of variance explanation
(70%).
The scree plot shows that at the level of 5
components the eigenvalue’s threshold (equal
to 1.010) is reached.

Factor analysis
analysis: communalities
The communalities table shows that the nearer
value to the threshold of 0,4 is equal to 0,585.
We consider the model with 5 components
reliable.

Factor analysis
Attention to:
1. status, new trends, innovation"
statement to others about my positive contribution to
environment, something new and fun, adopter/
pioneer of new technologies
2. electric futuristic car’s characteristics"
100 km autonomy, 3.30 hours charge time, 2 seats in
tandem, modern design
3. parking conditions, emissions"
easy to park and zero emissions
4. time saving and travel in city center"
saves time compared to public transport, travel to
restricted areas
5. environment pro-activism"
better for the environment, positive contribution to
environment
interpretation

Cluster analysis
We executed the cluster analysis in order to better segment our respondents, to
define the potential market for Renault Twizy.
We used, as input variable,
the new 5 variables resulting
from the previous factor
analysis.
1Status, new trends, innovation
2Electric futuristic car’s characteristic
3Parking conditions, emissions
4Time saving and travel in city center
5Environment pro-activism
general overview

Cluster analysis
We executed a hierarchical cluster analysis, on a subsample of 30% of randomly selected
cases, to define the number of clusters to be inserted in the K-means algorithm.
By this graph we were able to wonder on the number of clusters that could be either 3, 4
or 6. We will now analyze each possibility in depth:
§ 3 clusters
§ 4 clusters
§ 6 clusters
dendrogram

Cluster analysis
dendrogram – Ward method
3
4
6

Cluster analysis
case of 3 clusters
To assess the validity of the model we had to analyze:
DISTRIBUTION we found the distribution of cases within
the 3 cluster pretty homogeneous, so this could be a good
start.
SIGNIFICANCE all the variables showed a good level of
significance besides from the first one that is very important for
our business implications.

Cluster analysis
case of 4 clusters
DISTRIBUTION also in this case the distribution of cases
was quite homogeneous
SIGNIFICANCE however the first variable is still not
significant, showing a p-value of 0.751 that is not good for our
business aim.

Cluster analysis
case of 6 clusters
DISTRIBUTION the model shows a good distribution of
cases within clusters, exception made for cluster 5 that shows
a lower distribution compared to the others.
SIGNIFICANCE all the variable showed a perfect
significance level.
We proceed in our analysis
with 6 clusters.

Cluster analysis
The Final
Clusters!
The Practical
The Post-modern
The Activist
The Top Gearer
The New Yorker
The Liberal Elitarian
1
2
3
4
5
6
case of 6 clusters

Cluster analysis
graphical representation of clusters
16%
22%
17%
7%
16%
22%
The Practical
The Post-modern
The Activist
The Top Gearer
The New Yorker
The
Practical
(30)
The Post
Modern
(42)
The Top
Gearer
(42)
The
Activist
(32)
The New
Yorker
(13)
The
Liberal
Elitarian
(31)
Given the characteristics of the groups, we decided
to focus on The Post Modern and The Liberal
Elitarian Groups

Cluster analysis
In order to better understand our customers we want to further describe our clusters.
First we tried to do that by crossing cluster membership with behavioral questions but
gaining low results. Then we proceeded with psychometrical attitudinal questions.
All the findings of the following 8 slides will be used as the input in defining customers’ profile.
The following list shows results that showed significance and those who did not.
Q_5
Q_16_1
Q_16_4
Q_30_4
Q_30_8
Q_30_9
Ecology attitude
Better development stage
Low battery autonomy
Eco Friendly
Flexible
Self Confident
Q_10
Q_19
Ideal means of transport
Charging points installation
Q_11
Q_14
Q_15
Q_17
not significant
Q_17
Purchase destination
Q_22
Q_25
Most used means of transport
WTB for EV
When would you be likely to buy
Purchase destination
Knowledge about Twizy
WTB for Twizy
significant
description of clusters’ profile

Cluster analysis behavioral
We found out that The Liberal Elitarian and The
Post Modern (the groups we want to focus on)
show an interesting level of concern.
The P-Value is significant but the Eta Squared is
under the threshold of 0,2. So the degree of the
relation between the two variables is low.
clusters * how do you feel toward ecology

clusters * ideal means of transport
From this table we may draw some behavioral implications in order to better target
our clusters and find the best way to advertise Twizy.
Given that Twizy category is not
well defined, these results may be
useful in shaping the ideal
positioning of the product.
We can infer that results are
reliable since P-value is lower
than 0,05 and Cramer’s V is
higher than 0,2.

clusters * better development stage of the market
We observed high mean values for the three
underlined groups.
Significance is at a good level but Eta
Squared depicts a weak relation.

clusters * low battery autonomy
Here is another variable that shows
particular significance and may be useful for
our cluster’s interpretation.
Still, Eta Squared value depicts a weak
relation.

clusters * charging points installation
Results show that this variable may have a great
influence on the purchasing behavior of customers.
Within Clusters, every group is strongly affected by the
variable, with The Activists being the most sensitive.
p-value
< 0,05
Cramer’s V
> 0,2

clusters * eco-friendly
Even though the relation between the
variables is weak (Eta Squared = 0,067), we
found out that The Post Modern and The
Liberal Elitarian rated themselves as being
eco-friendly more than others.

Cluster analysis
psychometric
We have to do the same assumption of the
previous slide: that is, a weak relation as
proven by Eta Squared.
Again, the two clusters on which we would
like to focus on showed the highest mean
values when defining themselves as flexible.
clusters * flexible

Cluster analysis psychometric
Post Modern and Liberal Elitarian showed the
highest values in this attitudinal question too.
Nevertheless Eta Squared and P-value make
this relation particularly weak.
clusters * self-confident

Cluster analysis profile
The Practical
Someone who uses common sense and doesn’t think too hard
about how to solve day-to-day problems.
These subjects do not care neither of environment issues nor of
technological innovations. They are focused on saving time and
money, finding a fast parking. Not surprisingly, they consider the
motorcycle as one of the means of transport that better suits
the city.
They are not charmed of fascinated by any particular brand, if it
doesn’t fit their utilitarian needs. Acting rationally, they try to
maximize the utility they may get from every purchase
One of the main reason of their non-interest in the EV market is
the low battery autonomy of the vehicles.
The
Practical
(30)

The Post Modern
They are the main cluster on which we would like to focus
on. For these subjects, interpretation is everything: reality
only comes into being through their interpretation of what
the world means to them individually
Always up-to-date, the post-modern individual is always
searching for the latest trends and trying to be an early
adopter in order to signal his or her status.
Self-confident and flexible, post-modern individuals are
able to go from the easiness of the Eco-friendly life style to
the chaotic everyday life of the metropolis.
The Post
Modern
(42)

The Activist
As the name may suggests, these subjects are daily
involved in giving their contribute to the safeness of the
environment.
Showing off status and following trends are things of no
matter for these subjects. They are anchored to highly
social-responsible values.
They would be willing to lose some time rather than
denying their deeply rooted values.
Their interest in the purchase of an Ev is highly affected by
the presence of a well-structured network of charging
points around the city.
The
Activist
(32)

The Top Gearer
The Top
Gearer
(42)
The Top Gearer is attracted by motors in general and
particularly by every new shade of the market: for example
the EV growing one. In fact, he/she is the only one that
selected motorcycle as a better means of transport
compared to public transports.
Moreover, due to his/her awareness of motors world, she/
he is conscious that the current stage of the EV market is
not already developed.
Generally speaking, since motors and environment don’t
go hand by hand, the Top Gearer, being more focus on
speed and engine performances, doesn’t care about
pollution and environmental issues. His/her low eco-friendly
attitude may be explained by his/her low flexibility.

The New Yorker
The New
Yorker
(13)
In our cluster distribution this is the lowest represented cluster.
From the car market point of view, he/she doesn’t represent a
relevant target.
The New Yorker is the individual that has a deep knowledge of
the city and lives it without a personal means of transport.
He/she is proud and loyal to the city and understands the true
past, present and future of it.
He/She prefers to live the city without the issue of searching
for a parking and take advantage of the public transports
comfort.

The Liberal Elitarian is not limited to traditional or established attitudes
and views. He/she doesn’t want to be targeted as in search of self
esteem or a trend setter but at the same time is continuously seeking for
ways to establish his/her social position. This prerogative is reflected in
his/her high attitude towards new and unconventional stuff that makes
him/her feel like a pioneer of innovative markets (like the one of Electric
Vehicles).
The necessity to establish his/her social position and to
demonstrate the capability to be a relevant part of the
society is given by the high flexibility and the strong self-confidence
used as signals to the others. Moreover, to
reinforce their self esteem, they show to be involved in high
sensitive social issues like ecology.
Saving time is a relevant factor in his/her life, since he/she
lives the city in a frenetic and busy way.
The
Liberal
Elitarian
(31)

Renault Twizy
business implications: lack of brand awareness
In slide 45, we pointed out a major issue regarding brand relevance. The contingency table
showed how between those who did not select Renault as a knowledgeable EV manufacturer
brand, the 68% did know Twizy.
This underlines a lack of Brand Awareness, highlighted by the fact that Toyota was recognized as
the major EV manufacturer, although not producing pure EV at all.
Graveyard Brand (low recognition and high recall)
The risk of this peculiar situation lies behind the fact that consumer may not recognize Renault in
the consideration set (brands that you consider while in decision-making situation). Nevertheless,
results showed that Twizy is doing really well in the consumers market.
What could be a solution?
Considering the full range of Renault Electric Vehicle that can
reach different targets (Twizy, Kangoo, Fluence), Renault
should gather the benefits for them all through push-based
strategies.

Renault Twizy
business implications: communication strategy
What positioning could be better for Twizy?
As Slide 70 shows, Motorcycle and Public Transports are perceived, by every cluster, as the ideal
means of transport for Milan. So we think that Twizy should take advantage of its characteristics:
§ agility, flexibility and time saving which depict it as concept close to motorcycle
§ low costs of maintenance and refurnish (0,015€/km)
§ allowed access to Area C, peculiar characteristic of public transports
Saves money and time
We think that not only Renault, but also all the other EV manufacturers are focusing too much in
conveying eco-friendly values rather than pushing the money saving features of an EV.
Looking at our economic situation, this could turn out to be a key success factor in the market.

Renault Twizy
business implications: Twizy for post-moderns
Showing off status
We saw that The Post Moderns pay a lot of attention on showing off their status, following new
trends and being the early adopters.
How can Renault reach them?
Renault is already doing a great job in this direction. In fact it is positioning the Twizy as an
identifying object which encloses all the values important for this category.
However, further improvement in the marketing campaigns could be implemented by:
§ empowering the presence on social networks in order to get nearer to them
§ embrace the social attitude of this group through the organization of events and
sponsorships.

Renault Twizy
business implications: Twizy for liberal elitarians
Hating trends. Following trends.
Although this group seems to be reluctant to following trends and showing conventional
behaviors, they are interested in change and ready to invest on it.
A push strategy would not be proper for this group. Instead Renault should try to induce them
to get closer to the offer. Individuating opinion leaders and market mavens (through magazines
and specialized blogs) could influence their attitude towards Twizy, without making them feel
targeted. As far as advertising is concerned, guerrilla and unconventional marketing activities
could be more effective than conventional ones.
As for Post-moderns, the positioning concept should be located somewhere between
motorcycles and public transports.

Renault Twizy
business implications: Twizy for Top Gearers (potential customers)
A potential pool of customers
They are one of the major clusters (22%) thus representing a great opportunity to enlarge the
Twizy base of customers.
Targeting would be a matter of time: as soon as manufacturers will produce more performing
Electric Vehicles the Top Gearers will be attracted by the market. In fact they pay attention to
the car characteristics rather than on the environmental impact of the vehicle. The main reason
for they aren’t already interested in the market is indeed due to the early stage of the market
and low performance of the vehicle (low battery autonomy).
Specialized magazines articles, TV shows and conventional advertising could be successful
means through which getting closer to them.

Renault Twizy
business implications: research limitations
Limits of the research
§ Due to the composition of our sample (in particular about the knowledge of this
market) we found it hard to individuate heterogeneous behaviors that could allow us to
draw a more precise segmentation
§ Our questionnaire was obviously not perfect. Thinking about what have been the
problems in analyzing data and in drawing conclusions, we would have eventually
focused on:
§ more quantitative questions
§ inserting themes related with cheapness of the vehicle and testing a wider range
of behavioral questions other than eco-friendly
Macro-environmental issues
§ The Italian market for electric vehicles is not so profitable mainly because of the policy
makers’ low efforts that make it slower for this market to tip the take-off point.
§ Looking at the European scenario (where country like England and Holland are
investing a lot), we can say that it is a great opportunity lost.

Sitography
§ http://www.istat.it
§ http://www.thegreencarwebsite.co.uk/blog/index.php/2012/05/15/sorry-boris-europes-ev-capital-
isoxford/
§ http://www.e-moving.it"
§ http://www.sciencedirect.com/science/article/pii/S2210422412000056
§ http://www.independent.co.uk/life-style/motoring/road-tests/renault-twizy-7639565.html
§ http://www.renault.com/en/vehicules/aujourd-hui/renault-vehicules-electriques/pages/
twizy.aspx
§ http://www.autoblog.it/post/54023/auto-elettriche-elenco-completo-luglio-2012
§ http://www.ideegreen.it/quanti-veicoli-elettrici-circolano-in-italia-10302.html

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