There are too many sectors in typical car market maps, leading to over-segmentation. The market could instead be broken down by factors like engine size, usage type, driving pleasure versus practicality, price, and whether targeting families or singles. Additionally, shoppers were surveyed on their satisfaction with customer service at various retailers. Stores like Lush Cosmetics, John Lewis, and Apple had the highest satisfaction around 80-83%, while Halfords, WHSmith, and others had satisfaction below 60%. For some low-cost brands, poor customer service may not negatively impact them as much.
2. Is the UK car market map?
High price
Mercedes
Volvo
Sports
Estate
Car
One/couple car Family
car
Mini Kia
Cooper Estate
Low price
3. Or is it?
High price
Volvo Audi
Estate TT
Older image Young
image
Honda Mini
Jazz Cooper
Low price
4. Problem with car market maps
There are too many sectors, i.e. Market
segmentation is too great; the market
could be broken down by:
§ Size of engine
§ Usage: 4x4 v sport v family hatchback
§ Driving pleasure v driving practicality
§ Low price v high price
§ Families with kids v singles or couples
5. Shoppers rate customer service
Best service
Source: Which magazine May
Worst 2012; sample size 11,000
6. Shoppers rate customer service
Best service
Lush cosmetics 83% satisfied
Halfords 51% satisfied
Source: Which magazine May
Worst 2012; sample size 11,000
7. Shoppers rate customer service
Best service
Lush cosmetics 83% satisfied
John
80-82% satisfied
Lewis;
Apple
W.H.Smith 52% satisfied
Halfords 51% satisfied
Source: Which magazine May
Worst 2012; sample size 11,000
8. Shoppers rate customer service
Best service
Lush cosmetics 83% satisfied
John
80-82% satisfied
Lewis;
Apple
Primark; JJB Sports; Less than 60%
Tesco; Poundland; satisfied
JD Sports, Blacks
W.H.Smith 52% satisfied
Halfords 51% satisfied
Source: Which magazine May
Worst 2012; sample size 11,000
9. Shoppers rate customer service
Best service
Lush cosmetics 83% satisfied
John
80-82% satisfied
Lewis;
Apple
Morrisons; IKEA;
Over 70% satisfied
Richer Sounds; Disney
Store
Primark; JJB Sports; Less than 60%
Tesco; Poundland; satisfied
JD Sports, Blacks
W.H.Smith 52% satisfied
Halfords 51% satisfied
Source: Which magazine May
Worst 2012; sample size 11,000
10. Shoppers rate customer service
Best service
Lush cosmetics 83% satisfied
John
80-82% satisfied
Lewis;
Apple
Morrisons; IKEA;
Over 70% satisfied
Richer Sounds; Disney
Store
For these
Primark; JJB Sports; Less than 60%
brands,
Tesco; Poundland; satisfied
poor
JD Sports, Blacks
service
W.H.Smith 52% satisfied
may not
matter Halfords 51% satisfied
Source: Which magazine May
Worst 2012; sample size 11,000
11. Questions to consider:
1. Explain two benefits a firm might gain from studying a
market map?
2. Are there any reasons why a gap is not reliable
indication of a successful new product?
3. What could be done to make a market mapping more
useful?
4. Some companies do not do market mapping. Why do
you they choose not to use market maps?
5. What other form of map might help a business
understand where they are relative to their
competitors?
Editor's Notes
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010
Controlled Assessment Task 1 A-Z Business Training Ltd 2010