After publishing our reference article on the marketing mix, we propose here a detailed example of analysis following the 7P model: that of the Rimac Nevera, a 100% electric hypercar that we already talked about here.
Analysis of Rimac’s marketing mix
- P1 : Product
- P2 : Price
- P3 : Promotion
- P4 : Place
- P5 : People
- P6 : Process
- P7 : Physical Evidence
Rimac is a Croatian car manufacturer founded in 2001 by Mate Rimac. Today, the company specializes in 100% electric hypercars. It presented a prototype at the 2018 Geneva Motor Show that gave birth to the Nevera, the fastest electric car in the world. This hypercar also holds the world record for 0-100km/h in 1.87 seconds.
Rimac plans to produce 4 cars per month. It’s not much, but at more than $2 million apiece, it’s an admirable goal.
To get a sense of the car’s out-of-this-world performance, watch the video above, where it takes on a Ferrari SF90.
The P in “Product” (Product Policy)
Rimac sells only one product: the Nevera. The design of this 1900 horsepower hypercar is remarkable and contributes significantly to the branding of the company. The company is indeed positioned in the niche of hyper innovation, and this value is well reflected in the product. Design is, therefore, a central element of the marketing mix. A more in-depth analysis would compare the Nevera’s design to that of competing models and try to find common points.
The service is as personalized as the product itself. Each Nevera owner is invited to Croatia (where Rimac is headquartered) to design his car according to his requirements. The codes of customization are therefore applied so that the customer experience is as optimal as possible and aligned with the habits of wealthy customers.
The P in “Price” (Pricing Policy)
The pricing strategy is based on the perceived value of the product. It is reasonable to assume that the price was set based on the prices already charged by the competition (e.g., Koenigsegg, Pagani). The distributors’ financial incentives are unknown, but given the small number of cars produced and the few distributors, it is likely that the distributor’s margin is generous.
Unlike the world of “standard” automobiles, discounts are not common in the hyper luxury segment. Since the request is greater than the supply (only 4 vehicles produced per month), buyers will be happy to pay the total price ($2.4 million) to avoid the risk of being turned away.
The P in “Promotion” (Communication Policy)
In terms of communication, Rimac focuses for the moment on precise digital channels. More precisely, Rimac is collaborating with influencers to promote its car. We have seen several videos on YouTube where vloggers specialized in supercars and hypercars test the Nevera with Rimac’s boss. The YouTuber Manny Koshbin did it (see video below).
This is a fascinating aspect of the marketing mix, unique, which deserves in-depth development.
The P in “Place” (Distribution Policy)
The analysis of the fourth “P” in the marketing half is relatively simple. The Nevera will indeed be sold through a network of 20 dealers worldwide when writing this analysis. There is one dealer in Dubai, 4 in Asia, 4 in Europe, and the rest in North America. The distribution of the dealers corresponds to the market coverage for hypercars.
The P in “People” (Relationship policy)
The human component is still difficult to assess at this stage since Nevera is only a prototype. However, we can make some assumptions.
The human component will undoubtedly show up in different ways:
- The founder, Mate Rimac, will want to establish a personal relationship with each buyer and embody his brand
- Employees will be highlighted during factory visits, especially when buyers are on the road to finalize their choices
- A pilot will likely be made available to train future owners to drive the Nevera
We can also bet that exclusive events will be organized for the owners, just like the first presentation in Croatia in June 2021.
The P in ” Process ” (the processes related to the service)
As sales of the Nevera have not yet begun, it is difficult to analyze the processes of the “service” component. However, we can imagine that the selected retailers will follow a policy of extreme personalization as for the other brands they distribute. The luxury codes will also be respected, and advanced training will be given by Rimac so that the salesmen can answer all the technical requests of the customers.
The P in “Physical evidence”
The factory of Rimac is one of the showcases of the brand and the 20 current distributors. This factory can be visited, and the photos available on the website give a foretaste of the conveyed image. It is, above all, a high-tech image where the technological aspects compete with surgical cleanliness. The interior design (white walls and floors) and the specific structure of the work clothes reinforce the brand’s avant-garde image.Tags: market research methodology