Smart Car Analysis
TEAM CASE ASSIGNMENT-SMART CAR USA
1. IDENTIFY AT LEAST 3 BASES FOR SEGMENTING THE MARKET FOR SMART CAR IN THE US. PREPARE A MARKET-PRODUCT GRID ILLUSTRATING AT LEAST ONE OF THESE BASES. ➢ Geographic Segmentation: Larger cities that suffer from congestion ➢ Demographic Segmentation: Appeal to younger adults(Age), Affordability (Income) ➢ Behavioral Segmentation: Park-ability, Less fuel, environmental consciousness
2. What criteria should Smart Car use in assessing the attractiveness of potential market segments? Select the market segment that you think is the most attractive for Smart Car and discuss the considerations that led you to make that target market decision.
ALTHOUGH THE CRITERIA OF COMPETITIVE POSITION CAN BE USED DUE TO THE LOW NUMBER OF COMPETITORS, THE EXPECTATION OF MARKET GROWTH WILL INFLUENCE COMPETITORS TO ENTER THE MARKET. THEREFORE, THE FIRST CRITERIA USED TO ASSESS THE ATTRACTIVENESS OF POTENTIAL MARKET SEGMENTS WOULD BE THE EXPECTED GROWTH. THE SIZE OF THE MARKET IN THE SEGMENT WILL CONTINUE TO GROW SIGNIFICANTLY. AMERICANS HAVE MANY REASONS TO START LOOKING TOWARDS SMALLER CARS; SOARING GAS PRICES, ECONOMIC DOWNTURN, CONGESTION, AIR POLLUTION AND PARKING LIMITATIONS/DIFFICULTY. ALSO, AS TECHNOLOGY ADVANCES SYSTEMS AND PRODUCTS SEEM TO GET SMALLER. THE KEY TO MARKET SUCCESS IS THE REALIZATION BY AMERICANS THAT SMART CAR CAN ADDRESS MANY FACTORS ENVIRONMENTALLY AND ECONOMICALLY. MANY CONSUMERS ARE NOT AWARE OF THE ASPECTS AND FEATURES OF SMART CAR. SMART CAR ENCOMPASSES INNOVATION, INTELLIGENCE, FUNCTIONALITY, FUEL EFFICIENCY AND MOST OF ALL SAFETY IN ITS SMALL DESIGN. IT IS ALSO MADE OUT OF RECYCLABLE MATERIALS TO BE ENVIRONMENTALLY RESPONSIBLE. THE CAR CAN BE PARKED UNIQUELY IN AREAS THAT REGULAR SIZED CARS CANNOT HOLD. THE SMART CAR WILL BE A ‘TRENDSETTER’ FOR SMALL CARS.
THE MARKET SEGMENT THAT THE SMART CAR WOULD MOST BE ATTRACTIVE TO IS THE MODERATE INCOME INDIVIDUALS, WHICH ARE USUALLY
1. IDENTIFY AT LEAST 3 BASES FOR SEGMENTING THE MARKET FOR SMART CAR IN THE US. PREPARE A MARKET-PRODUCT GRID ILLUSTRATING AT LEAST ONE OF THESE BASES. ➢ Geographic Segmentation: Larger cities that suffer from congestion ➢ Demographic Segmentation: Appeal to younger adults(Age), Affordability (Income) ➢ Behavioral Segmentation: Park-ability, Less fuel, environmental consciousness
2. What criteria should Smart Car use in assessing the attractiveness of potential market segments? Select the market segment that you think is the most attractive for Smart Car and discuss the considerations that led you to make that target market decision.
ALTHOUGH THE CRITERIA OF COMPETITIVE POSITION CAN BE USED DUE TO THE LOW NUMBER OF COMPETITORS, THE EXPECTATION OF MARKET GROWTH WILL INFLUENCE COMPETITORS TO ENTER THE MARKET. THEREFORE, THE FIRST CRITERIA USED TO ASSESS THE ATTRACTIVENESS OF POTENTIAL MARKET SEGMENTS WOULD BE THE EXPECTED GROWTH. THE SIZE OF THE MARKET IN THE SEGMENT WILL CONTINUE TO GROW SIGNIFICANTLY. AMERICANS HAVE MANY REASONS TO START LOOKING TOWARDS SMALLER CARS; SOARING GAS PRICES, ECONOMIC DOWNTURN, CONGESTION, AIR POLLUTION AND PARKING LIMITATIONS/DIFFICULTY. ALSO, AS TECHNOLOGY ADVANCES SYSTEMS AND PRODUCTS SEEM TO GET SMALLER. THE KEY TO MARKET SUCCESS IS THE REALIZATION BY AMERICANS THAT SMART CAR CAN ADDRESS MANY FACTORS ENVIRONMENTALLY AND ECONOMICALLY. MANY CONSUMERS ARE NOT AWARE OF THE ASPECTS AND FEATURES OF SMART CAR. SMART CAR ENCOMPASSES INNOVATION, INTELLIGENCE, FUNCTIONALITY, FUEL EFFICIENCY AND MOST OF ALL SAFETY IN ITS SMALL DESIGN. IT IS ALSO MADE OUT OF RECYCLABLE MATERIALS TO BE ENVIRONMENTALLY RESPONSIBLE. THE CAR CAN BE PARKED UNIQUELY IN AREAS THAT REGULAR SIZED CARS CANNOT HOLD. THE SMART CAR WILL BE A ‘TRENDSETTER’ FOR SMALL CARS.
THE MARKET SEGMENT THAT THE SMART CAR WOULD MOST BE ATTRACTIVE TO IS THE MODERATE INCOME INDIVIDUALS, WHICH ARE USUALLY