A CASE STUDY OF MARKET SEGMENTATION, TARGETING AND MARKET POSITIONING Introduction
Built in 1997 Chery is one of the famous Chinese car manufacturers aiming at building ‘independent Chinese brand’ and is now on its way to be international. It has the capability of producing 650 thousand automobiles, 650 thousand engines and 400 thousand sets of gear-boxes annually. There are four sub-brands (Chery, Riich, Rely and Karry) under Chery and three types of cars (passenger cars, business cars and mini cars) are produced. 15 series of cars have been released in the market and there will be ten more. ‘Safe, saving energy and environmental friendly’ are the core image of this brand. It had been ranking first in 8 consecutive years among the independent Chinese auto manufacturers in China. (Chery Chinese Website, 2009) This essay focuses on the market segmentation, targeting and market positioning used by Chery in the China market in spite of its immature stage of being international. There are not sufficient materials about these, I studied the homepage of Chery, news of this company, some comments of products on automobiles websites and its products introduction including feature and prices, I also read some literature on marketing, car industrial and demography of china and so on, after that I concluded the segmentation, targeting and positioning of this manufacturer buy integrating the facts of the company and the market and china and the marketing theories. Reasonable and reliable inference will be made in the following illustration.
Segmentation is an important marketing process considered as ‘a foundation for superior performance’ (Craven etc., 2009: 83) followed by targeting and positioning. In this step, customers in the market are divided into distinct groups having similar requirements, characteristics and so on. Normally, a market is segmented on these bases: geographic segmentation, demographic segmentation, psychographic...