Market Segmentation and Product Positioning2
1.2. Product the company will offer2
1.2.1. Motorcycle industry an overview2
1.2.2.Motorcycle industry in US an overview3
1.3.Marketing Objectives of the Motorcycle Company:4
1.4.Primary Characteristics of the Motorcycle4
1.7. Conclusion: Market Fit with Organizational Strategy.6 References7
Market Segmentation and Product Positioning
Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to marketing actions (Paul Baines, 2011). The ultimate use of the segmentation is to ensure that the right mix takes place in a selected market based on price, distribution, products and promotion. Kotler (1991) defines segmentation as “the act of dividing a market into distinct groups of buyers who might requiere separate products and/or marketing mixes” (p.263). Market segmentation is a vital element in market strategy development as it enables marketers to target their offerings to meet the diveristy of customer needs most efficiently. 1.2. Product the company will offer
This paper focuses on the use of market segmentation in the area of product positioning in US market for a New Product. For the assignment purpose the new product shall be “Motor Cycle”. 1.2.1. Motorcycle industry an overview
Before stepping into the US market let us know what’s happening in the global scenario for the Motorcycles. Global motorcycles, scooters and mopeds (Jose, 2010) market measured in volume terms are undoubtedly going Asia’s way, with a massive chunk of the total market concentrated in the Asia- Pacific region. Developing nations in Asia and Latin America, which perceive two- wheelers as a basic mode of transportation, are expected to remain the most promising markets for scooters, light motorcycles and mopeds. The last two decades have comprehensively transformed the powered two- wheeler industry worldwide. Demand has often outgrown expectations, beating the industry’s calculation, with changing market pattern being the accepted norm. Regional markets play a significant role in market evolution, wherein the wave of consumerism across the globe overhauled the structure of the powered two- wheeler industry worldwide. Motorcycles and scooters emerged favorites with the male customers, while mopeds and small scooters found ready acceptance with the female customers.
In developed countries like the US, Canada, Japan, Germany and Italy, motorbikes and scooters are considered a premium purchase to be enjoyed by the wealthy and riding enthusiasts. 1.2.2.Motorcycle industry in US an overview
More than a million motorcycles were sold in the United States in 2007. The U.S. motorcycle market is worth $14.6 billion (2007) and is expected to reach $21 billion by 2011. The Motorcycle Industry Council (MIC) has released its monthly sales report for December, with year-to-date motorcycle sales in 2010 registering a 15.8% drop from 2009. This marks another year of decline in the market, with 2009 totals registering a 40% drop in motorcycle sales. With the release of its December sales report, the Motorcycle Industry Council (MIC) shows a 15.8% drop in year-to-date motorcycle sales for 2010. Total motorcycle sales were down 82,198 units, at 439,678. Year-end estimates from the MIC at this same time last year showed a 359,408 unit loss from 2009 to 2008. Breaking it down by segment, Off-Highway motorcycles dropped the most, at 23.3%, losing...