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Marketing Project  for MBA Students

Marketing Basic Utility Vehicles (BUVs)

in Developing Countries

While the world's 465 billionaires enjoy a higher income than half of humanity combined, over 1.2 billion people live on less than one dollar per day.  Short-term aid helps, but trade remains the great poverty killer.  The Institute for Affordable Transportation (IAT) believes ultra-affordable vehicles are key "enablers" in creating sustainable economies. IAT helps manufacturers open new markets for these unique vehicles. The vehicles promote trade at a grass roots level by enabling micro-business growth.

One of IAT's primary initiatives is to determine which rural markets are best suited for Basic Utility Vehicles (BUVs). BUVs are simple, open-air vehicles that emphasize maximum function at minimum price.  The $900 vehicle (as a kit without duties and freight) weighs only 500 pounds but can carry five people at a maximum speed of 20 mph.  The small 10-hp engine is flexible since it can power other equipment such as generators, water pumps, and cement mixers.  The initial target market is Latin America where distance, time zones, and language pose less obstacles..

As a cost-effective means of conducting market research and product development, IAT will enlist the help of students. MBA students will research price, target market, distribution, location, service, and logistics issues. Professors can incorporate IAT work requests as class assignments.. Students will learn while solving real problems and supporting a good cause.  Their work has "real-world" implications, effecting change to reduce poverty.

Student Assignment

As a team of business/marketing consultants, you will pick five countries from the list below and rank the countries below in the order that BUVs should be introduced.  Your team will justify the country rankings in your report and develop a marketing plan for a product-launch in the top ranked country.

The team should prepare a two-year plan that covers customs/tax issues, logistics, distribution channels, service plan, pricing, etc. Although the report format is very open, roughly half of the report should justify the rankings, while the other half of the report covers the marketing plan. Both qualitative and quantitative methods are expected.

To keep the project manageable, IAT has narrowed the list to the following Latin countries:

Nicaragua El Salvador
Peru Honduras
Dominican Republic Guatemala
 

Faculty can customize this project as appropriate.


All rights reserved. 

Copyright © 2001 Institute for Affordable Transportation. 

Revised: June 17, 2007

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