Performance Vehicles (PV) Jack (a mechanic) and Jimmy (a car salesperson) set up PV as a private limited company in 2010. PV was initially financed through savings and a personal bank loan. The capital raised was used to PV bought previously owned cars at low cost, repaired any faults and sold them in its showroom. A business analyst was commissioned to produce a report into influences on new business strategies The report suggests that electric vehicles are a growing market. Jack does not want to retrain to work on electric vehicles. He decides to retire and sells his share of the business to Jimmy. Jimmy wants his business to become the market leader in modifying rare old cars to run on electric power. Jimmy has found a venture capitalist with extensive experience of new power technologies. Appendix 1: Data about the two-year contract to appear in the car restoration television programme (2015) - Niche audience of people who like car restoration. - $$\(\quad\)$$ Estimated viewing figures of 2 million worldwide. - $$\(\quad\)$$ PV will not receive a fee from the television company, but PV's logo and product placement will appear in every programme. - $$\(\quad \mathrm{PV}\)$$ is allowed to sell branded merchandise, made popular by the programme, on its website. Appendix 2: PV purchases land and invests in technology in 2016 - New industrial unit financed by mortgage. - Gearing ratio increases to $$\(75 \%\)$$. - New specialist technology financed by retained profit. - $$\(\quad\)$$ Quality improvements marketed as a unique selling point (USP). - $$\(\quad\)$$ PV reduces its marketing budget. Appendix 4: Extract from report into influences on new business strategies - Growing consumer interest in sustainable production methods. - Disposable incomes are rising fastest in the 18-30 age range. - Global agreement to reduce carbon emissions. - Advances in battery technology will reduce future cost of electric vehicles. - $$\(\quad\)$$ Large car manufacturers are investing heavily in research and development. - Criticism of governments for low investment in electric vehicle charging infrastructure. - Rising congestion charges / banning of petrol vehicles in some major cities. Evaluate PV's marketing strategy between 2012 and 2021.

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