Future Marketing Idea for R & R Motor Vehicles

Future Marketing Idea for R & R Motor Vehicles:

Phase out 8pac - 8 Cylinder Sports Utility Vehicle (SUV) for more fuel-efficient 5pac - 4 Cylinder Compact Sedan.

Non-financial Pros - I feel that people are getting away from the bigger is better theory in life purchases. I think that people are finally just getting things based on what their needs are. In this day and age families are not as big as they once were. At that time people needed more space to fit their whole family. So I think the small more efficient car makes better sense based upon needs of the consumer. Another pro I feel is that the smaller cars are just easier. Parking the bigger SUV's can be a real pain for non-experienced drivers, even for the experienced ones at times. Blind spots will be smaller on the compact cars, hopefully resulting in fewer accidents. They are also better for the environment; people now a day are always talking about going green and saving the planet. Comfort is a big pro to switching to a smaller vehicle, SUV's are way more rugged and that makes a less comfortable ride for the driver and its passengers.

Non-financial Cons - Smaller cars are less versatile. People in general love to play, such as boats, motorcycles, ATVs and other recreational items. Most towns' homes are very close together, not a lot of people have land where they can just go out of their garage and play on these types of toys. So you have to get there, and people have been loading up their SUVs to do this. You can fit more items in an SUV and tow your toys all at the same time. Safety is another reason to keep the SUV market around; most people feel that the bigger the vehicle the safer it is. People tend to get what makes them feel safe, even if it is only opinion based.

Financial Pros - In time creating these smaller more efficient vehicles could pay off for the company. Once the transformation and change has been completed, this should cost R&R less money to produce these vehicles both in labor and parts. The country's economic picture is not stable, so people are spending less money and just buying the bare basics. These smaller cars have a smaller consumer price tag on them so they tend to purchase them over the higher priced SUVs. This will impact the middle class consumer which will result in more vehicles produced and sold earning the company more profit. Also, gas prices are expensive right now and with the fuel-efficient vehicles consumers don't have to fill the tank as much which puts more money in their pocket; in turn they want to purchase that vehicle to save money over time. If the SUV is completely phased out, inventory levels of parts and equipment will decrease, ensuring that there is less liquid assets spent to keep parts on the shelf which are only valued at their costs.

Financial Cons - People are under the impression