Product details

In 1990, the smart concept was signalled as a revolution in the automobile industry. With the idea of imposing a ?new concept of mobility?, the car was innovative in several areas including product design, production and sales techniques. Many have said that smart was a crazy idea. Too luxurious, too expensive, the little two-seater has been described as a fashion accessory supported by an ill-conceived advertising campaign, and backed up by out-of-touch shareholders. Nevertheless, since its European launch in October 1998, the smart seems to have enjoyed a certain degree of success and its sales are rising steadily. Whatever happens next, smart?s new concept is certain to leave its mark on the industry. This case presents the evolution of the smart project over the period 1990-2000. It covers: (1) Nicolas Hayek'?s initial project (Swatchmobile), heralded as an automobile revolution, was developed around a new concept of urban mobility; (2) the takeover and revamping of the project by Mercedes; (3) initial months of marketing, with sales far below the targets; (4) the apparent takeoff in sales since 2000; and (5) future development lines of the project. The case looks not only at the strategy but at all the aspects of the smart project: offer (products, financing solutions, mobility concept, insurance, assistance etc), production, and marketing and sales policies (distribution, sales and publicity).