How market segmentation is shaping current automotive industry
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How market segmentation is shaping current automotive industry

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  • For some people cars are just a boringmeanoftransport, forotherstheyencompass a wide rangeofemotions.Carswereinvented at the end of the 18° centurytogivefreedomto people. Be abletodiscovernewplaces, travelwith the family.As a consequencecarsweredevelopedalsotowiden the arrayofemotionsto the customers.Inthis slide and the followingoneyou can see some people consideringtheircarasbox ofmemories.Theircarresemblespastmomentscreating a strong associationbetweenfeelings and all the people involved.
  • For some people cars are just a boringmeanoftransport, forotherstheyencompass a wide rangeofemotions.Carswereinvented at the end of the 18° centurytogivefreedomto people. Be abletodiscovernewplaces, travelwith the family.As a consequencecarsweredevelopedalsotowiden the arrayofemotionsto the customers.Inthis slide and the followingoneyou can see some people consideringtheircarasbox ofmemories.Theircarresemblespastmomentscreating a strong associationbetweenfeelings and all the people involved.
  • Thisis the case oftheseowners, emotionallyattachedtotheirvehiclesthatpurchasedthesecars25-30 yearsago and theyfunctionas a link topastmomentslivedwiththeirrelatives.(Now, withthatleveloftrafficespecially in highlypopulatedmetropolies, freedomhasgoneelsewhere)
  • Thisis the case oftheseowners, emotionallyattachedtotheirvehiclesthatpurchasedthesecars25-30 yearsago and theyfunctionas a link topastmomentslivedwiththeirrelatives.(Now, withthatleveloftrafficespecially in highlypopulatedmetropolies, freedomhasgoneelsewhere)

How market segmentation is shaping current automotive industry How market segmentation is shaping current automotive industry Presentation Transcript

  • How market segmentation is shaping current automotive industry • Insight of the industry • Functional Objectives • Customer focused attributes • Manufacture’s considerations • Market Forces • Car segments • ExperimentBIT 04/19/12 - Carello Fabio 1
  • Introduction 2
  • Introduction 3
  • Introduction 4
  • Worldwide sales – Insight of the market Global 76.5 M 6% North America: South America: Europe: 18.1M Asia: 32.2M 15.5 M 11% 5.1M 5% -1% 7% Russia: 2M 6% Japan: 4.4M -9% China: 19M 11% USA: 13M 12% India: 3.2M Brazil: 3.7M 17% 8%Source: http://www.motortrader.com.my/Cars/NewsHeader/News-in-2011/World-News/Outlook-for-global-auto-market-in-2011.aspx 5
  • Introduction “successful contemporary brands tend tostand for something important to their target customers, making them admirable to those customers, who then want to use thosebrands as badges to express who they are and what they believe in” 6
  • SOME OF ALL TIME TOP SELLING CARS 1908-1927 1938…Model T: 16.5M Beetle: 22.3M 1948… 1959… F150: Mini: 30M 6.8M 1974… 1984… Golf: Voyager: 25M 12M 7
  • FUNCTIONAL OBJECTIVES Manufacture’s considerations • Brand identity matches product Customer Focused Attributes characteristics • Space/dimensions• Comfort, interior space, cargo volume, • Manufacturing capability, Technologynumber of passengers, noise, • Manufacturing Costs, platform sharing,•safety production volumes, warranty• Brand, image, fashion,• Ecosustainable, emissions, efficiency,• Hi-tech, innovative devices Market Forces• Total cost of ownership (fuel, maintenance,value at resell stage,) • Infrastructures, population density• Quality : quality of materials, Reliability, • Economyaftermarket component availability, durability, • Taxationtrim level • Insurance• Performance, handling, weight • Culture • Legislation • Climate • Sales volumes • Infotainment 8
  • Car as AccessPoint to aConnected World 9
  • CAR SEGMENTS 10
  • GENEALOGY OF A NEW SEGMENTMinivan Off-road Vehicle Sport Utility Vehicle Coupè Sport Activity Vehicle 11
  • GENEALOGY OF A NEW SEGMENT ModularArchitectures Off-road Vehicle Sport Utility Vehicle Sport Activity Vehicle 12
  • Car Segments: Types and versions Developing a sedan for the Chinese Market:Focusing on dimensions/proportions to satisfy the customers Customer focused Attributes •Comfort, interior space, cargo volume, number of passengers , noise, •Safety •Brand, image, fashion, •Ecosustainable, emissions, efficiency, •Hi-tech, innovative devices •Total cost of ownership (fuel, maintenance, value at resell stage,) •Quality : quality of materials, Reliability, aftermarket component availability, durability, trim level •Performance, handling, weight 13
  • Car Segments: Types and versions Developing a sedan for the Chinese Market:Focusing on dimensions/proportions to satisfy the customers 14
  • Car Segments: Types and versions Developing a sedan for the Chinese Market:Focusing on dimensions/proportions to satisfy the customers Tire Size Height Front Wheelbase Rear Overhang Overhang Overall Lenght 15
  • Car Segments: Types and versionsDeveloping a sedan for the Chinese Market:Different version for a different Market Long Wheelbase version Chinese market Short Wheelbase version EU-Nafta markets 16
  • MacroVariables used to create each profile:Experiment 1. Comfort 2. Safety 3. Brand Image 4. Efficiency 5. Hi-tech innovation 6. Quality 7. Performance 17
  • Experiment Comfort 35% Claudio 30% 25% performance safety 20% 15% 10% 5% 0% quality brand/fashion Toyota Prius hi tech efficiency/eco friendly Comfort 35% 30% Erin 25%performance safety 20% 15% 10% 5% 0%quality brand/fashion hi tech efficiency/eco Fiat 500cc friendly 18
  • Experiment Comfort 35% Michele 30% 25%performance safety 20% 15% 10% 5% 0% quality brand/fashion Honda S2000 hi tech efficiency/eco friendly Comfort 35% Diego 30% 25% performance safety 20% 15% 10% 5% 0% quality brand/fashion hi tech efficiency/eco Jeep Cherokee friendly 19
  • Experiment Comfort 35% 30% Ryan 25%performance safety 20% 15% 10% 5% 0% quality brand/fashion hi tech efficiency/eco friendly Chevy Camaro 20
  • Experiment16.0% Relevance of requirements in the sample (%)15.5% 15.4%15.0% 14.8% 14.8%14.5% 14.4%14.0% 13.6% 13.5%13.5% 13.4%13.0% Comfort safety brand/fashion efficiency/eco friendly hi tech quality performance 10.0% 8.0% 7.9% Relevance vs Average (%) 6.0% 3.7% 3.7% Comfort 4.0% safety 2.0% 0.9% brand/fashion 0.0% efficiency/eco friendly -2.0% hi tech -4.0% quality -6.0% -4.7% performance -5.4% -6.1% -8.0% 21
  • Experiment Comfort 35% 30% max 25% performance safety Sample 20% 15% min 10% 5% 0%quality brand/fashion hi tech efficiency/eco friendly 22
  • Experiment The Results Honda CRZ MugenCustomer focused Attributes: Efficiency/Eco Friendly Hybrid engin = Low emission level 1.5cc (small displacement engine) Performance Great power to weight ratio (200 bhp, 1.2tons) 55-45 weight distribution = great handling Brand/Fashion Innovative design for a hatchback vehicle 23
  • How market segmentation is shaping current automotive industry 24