Business Planning Term Project Volkswagen
Industrial Engineering Department
Business Planning
2012
Term Project Report
Date : 29th November 2012
Volkswagen AG
1. Market Segmentation 1.1 Main parameters
A market is simply a group of users with similar needs. It follows from this that a market consists of subgroups, or segments containing users with slightly different needs to those of other segments. So market segmentation “is about dividing a mass market into identifiable and distinct groups or segments, each one of the having common characteristics and needs displaying the similar responses to marketing actions.” For example, a segment can be subdivided further into enthusiasts, once-in-a-lifetime buyers, gift purchasers, and so on. Whilst they may not be immediately apparent, every market is made up of a myriad of such segments. For this, the segmentation of a market is generally based on the data gathered relating to main customer-, product-, or situation-based variables. These segmentation fundamentals imply profile patterns, behavioral patterns and psychological patterns. Market segmentation includes the usage of information bear on distinctive client, consumer, organizational and market characteristics. For instance these vary for Business-to-Consumer and Business-to-Business markets. In the following the investigation’s focus will lie on the B2C market of the Volkswagen Group. The German Volkswagen Group consists of two divisions: the Automotive Division and the Financial Services Division. Nevertheless, in this analysis the Financial Services will remain out of consideration.
The purpose of market segmentation is to cope with the economic reality of scarcity of resources. As companies have limited resources, they cannot produce all possible products or services to all people, all of the time. Thus, in order to be efficient and effective, they need to make selected offerings to selected segments, most of the time. In the same vein, companies will ensure that the elements
Business Planning
2012
Term Project Report
Date : 29th November 2012
Volkswagen AG
1. Market Segmentation 1.1 Main parameters
A market is simply a group of users with similar needs. It follows from this that a market consists of subgroups, or segments containing users with slightly different needs to those of other segments. So market segmentation “is about dividing a mass market into identifiable and distinct groups or segments, each one of the having common characteristics and needs displaying the similar responses to marketing actions.” For example, a segment can be subdivided further into enthusiasts, once-in-a-lifetime buyers, gift purchasers, and so on. Whilst they may not be immediately apparent, every market is made up of a myriad of such segments. For this, the segmentation of a market is generally based on the data gathered relating to main customer-, product-, or situation-based variables. These segmentation fundamentals imply profile patterns, behavioral patterns and psychological patterns. Market segmentation includes the usage of information bear on distinctive client, consumer, organizational and market characteristics. For instance these vary for Business-to-Consumer and Business-to-Business markets. In the following the investigation’s focus will lie on the B2C market of the Volkswagen Group. The German Volkswagen Group consists of two divisions: the Automotive Division and the Financial Services Division. Nevertheless, in this analysis the Financial Services will remain out of consideration.
The purpose of market segmentation is to cope with the economic reality of scarcity of resources. As companies have limited resources, they cannot produce all possible products or services to all people, all of the time. Thus, in order to be efficient and effective, they need to make selected offerings to selected segments, most of the time. In the same vein, companies will ensure that the elements