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Primo Motors Company: Hybrid - Essay Example

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On the basis of market segments, a company selects their target customer groups where it will position its products (Friedman, 2010). The paper will examine the extent to which an organisation can segment the vehicle market on the basis of customer requirements. In order to analyse the competitive advantages the marketing concepts of segmentation, targeting and positioning have been analysed in the paper. The objective of the paper is to develop a marketing plan for a vehicle manufacturing organisation in Midlands of the UK named Primo Motor Company, about how it can segment the small saloon and hatchback cars’ market and position the product. Competitive Advantage Segmentation The reason for segmentation of market is to understand the customers, their behaviours, their purchasing patterns and the criteria that are beneficial for gaining competitive advantage (The McGraw-Hill Companies, 2011). In the automobile industry, segmentation can provide benefit to manifest the requirements of target customers. It also assists in creating a correct forecast of possible reactions from every segment of the target buyers. As a result, it can help an organisation to develop promotional deals which are most appropriate for every customer group. Through proper market segmentation, Primo Motor Company can concentrate on the product, delivery, promotion and pricing system that satisfy the customer group. In the early phase there was no particular segmentation in the vehicle market. As the automobile industry has moved towards maturity phase the idea of segmentation has evolved for organisations. Now-a-days, sellers plan new techniques and variables to segment the automobile market (Deloitte Development LLC, 2011). There are four divisions in the manufacturing segment of the UK which are sports cars, small saloon and hatchback cars, medium and luxury saloon cars and commercial vehicles. The vehicle market is dominated by small saloon and hatchback cars which is suitable for family customer segment. In the UK market, it can be seen that different families possess different kinds of cars. The small saloon and hatchback cars are generally crazed by family customer segment. Thus, whole family takes part in choosing the type of vehicle they desire. The major determinants of small saloon and hatchback cars are the family size, cost of maintenance, brand, and price of vehicle. The type of family can determine the purchasing pattern of small saloon and hatchback cars. The flexible economy in the UK and existence of rich class families had changed the market for small saloon and hatchback cars. In present days, several middle class families can also afford those cars (Mitchell, 2008). Targeting Once an organisation classifies the market segmentation prospect, it needs to select how many segment it should target. Primo Motor Company can target those customer segments where it can compete with potential competitors. Primo Motor Company can consider five patterns of target market which are: Single Segment Concentration Through concentrating on single market Primo Motor Company can acquire a strong understanding of the target segment’s requirements and attain a strong market position. Besides, the company can also enjoy functional advantages through specialising in production, supply and promotion. If Primo Motor Company captures a leading position in the small saloon and hatchback cars segment, it can gain a high return. The hatchbacks are ...Show more
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Primo Motors Company: Hybrid Table of Contents Table of Contents 2 Introduction 3 Competitive Advantage 4 Segmentation 4 Targeting 5 Positioning 6 Conclusion 9 References 10 Bibliography 13 Introduction In present days, the customers are quite selective in their requirements and varied in making purchase decision of any product…
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