Preview

The New Beetle: Market Segmentation and Potential Market

Good Essays
Open Document
Open Document
702 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The New Beetle: Market Segmentation and Potential Market
1. How would you segment the market (remember that a segmentation scheme must consist of mutually exclusive categories, and that the set of categories must be exhaustive)? A market can be segmented based on demographic (age, income, generation, education), geographic (region, city size), psychographic (activities, hobbies, interests), or behavioristic (brand loyalty, price sensitivity) variables. The data from the Arnolds Communication research can be helpful in segmenting the market for the New Beetle case. This research shows that Volkswagen consumers are typically young, slightly more affluent, more educated than the average car purchaser, and typically enjoy a more active role in driving. It seems that in this case we should segment our market based on households; specifically, those that are in the market for a small vehicle and those that are not. This market should further be segmented into households that are price sensitive and those that are not. It is likely that the baby boomers will fall into the non-price sensitive category. Furthermore, the more affluent younger generation is likely to be less price sensitive than most other households their age. 2. Who would you target? Why them? The New Beetle target market should be younger (18-34), slightly more affluent, and more educated than the average car purchaser. They should also have unique lifestyles, and exhibit qualities such as confidence, individualism, and a love for driving. Although the New Beetle also attracts baby boomers, due to their cherished memories of the original Beetle, this is likely not the New Beetle’s target audience. This is because the baby boomers typically have a preference for larger cars, as their lifestyle now necessitates. Although they may feel a connection to the New Beetle it is likely that most of the baby boomers have families and a small car is not a practical choice. Furthermore, VW has a goal of bringing the Beetle back into the mainstream and

You May Also Find These Documents Helpful

  • Powerful Essays

    There is no single way to segment a market. A marketer must try different segmentation variables, alone and in combination, to find the best way to view the market structure.…

    • 3316 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Market segmentation is the process of dividing markets comprising the heterogeneous needs of many consumers into segments comprising the homogeneous needs of smaller groups (Guille M). Segmentation is usually done by demography, geography and socioeconomic variables. The easiest way to segment consumer market is to use demographic variables such as age, gender and education level. Organizations that operate globally usually segment consumer market geographically. Besides, socioeconomic variables are to segment the market regarding the income, social class and also lifestyle (Guille M).…

    • 1120 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    The Holden Monaro is a coupe sports car in the line of HSV, or Holden Sports Vehicles, made by its namesake Australian company. The car comes in a couple different specifications, but the engine is always either a V6 or a V8, making it a powerful and fast vehicle. The original Monaro was created in 1968 with different “species” of car throughout the next three years. The second generation of Holden Monaros was begun in 1971, which changed the body design of the car completely as well as made the V6 engine no longer an option. The 1970’s Monaro was definitely a muscle car, though over the years until 1977 the vehicle became more of a luxury sedan instead of the hard muscle it had begun with. The Monaro was finally reborn in the 2000’s and did very well in the Australian marketplace. There were a couple of reasons for the public interest in this vehicle, and much of it had to do with how the car was positioned in the marketplace.…

    • 1172 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Week 2 Case Study

    • 779 Words
    • 4 Pages

    2. I have seen the Beetle cross a large age demographic anywhere from 18 to 60 so I would focus on a segment that thinks of itself as hip. My plan would also include those who have a nostalgic link to the Beetle and those who are looking to attach to the past. I would focus on the segment that has a personality type looking to be different and have fun. The Beetle has been marketed as a unique, fashionable, classic and economical car. These are optimists; these are people who have a glass half full view of life. This segment is trendy, colorful and enjoyable their median income is $86,000. They had a wonderful marketing idea by attaching the Beetle to the Geek Squad http://www.geeksquad.com/ the cars they use to go on location calls in the VW Beetle. You see them parked in…

    • 779 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The market size for convertibles (both in terms of sales of imports & U.S. Production) increased from year 1982 to 1988. Overall Size, Sportiness, and price tended to define the traditional automobile segments. The Miata fell into the subcompact speciality category which included models such as Pontiac Fiero and Nissan Pulsar. Analyses of consumer’s demographics reveal that people Less than 45 years of age represented 58% of first time new car buyers. 57% of car buyers Under 25 years of age and 61% of those having a household income of less than $ 30,000 were females. Therefore, the target consumer must be young people and especially young females. Target demographic was car lovers, in particular a sporting car lovers.…

    • 540 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Lifestyle Segmentation

    • 512 Words
    • 2 Pages

    You go to a parking lot in Southern California, and you find a myriad of sedans. They even hold opening parties at the Mercedes Benz dealers to showcase the newest cars. People spend more time in traffic in Southern California than they do here in Klamath Falls. They want a cushy luxury car that they can spend that time. The parking spaces are smaller. They are more people, less room for big huge trucks. People in Southern California are also more concerned with their looks and how other perceive each other. Their nice vehicle is a status symbol. (If you don’t believe that, look at all the tanned skinny people at the beaches and tell me…

    • 512 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    According to Arnold communication’s research, there are 2 groups of target audience for the New Beetle: new core audience of 18 to 34 years-olds and baby boomers. Although the consumers include a very diverse group, the research shows that the potential buyers share some common characteristics like confidence, individualism, and a desire to be the center of attention. Moreover, they love to drive and appreciate a spirited design and German engineering.…

    • 911 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    ford ka case

    • 606 Words
    • 2 Pages

    This case introduces students to the fundamental marketing problem of market segmentation and target selection. Ford's situation does not fit the 'textbook' model exactly and so the case is an opportunity to analyse how theory can be applied in the real world; the difference between segment formation and segment identification; and typical market research tools used for market segmentationThe Ford Ka was scheduled for launch at the Paris Motor Show in October 1996. But Brand Manager, Gilles Moynier, needed to decide on the target market for the new product. The car industry was traditionally segmented into size tiers, but Europe’s market for small cars was changing rapidly and even alternative segmentations did not reveal a clear target for the Ka.…

    • 606 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    BMW is promoting the “global marketing concept” by dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require…

    • 1646 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.…

    • 1566 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The most critical problem for Buick is simple. How do you shed the image and public perception that Buicks are “cars made for your grandfather”, attempt to attract a younger buyer for your automobiles and sustain sales to this younger demographic over time?…

    • 1769 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.…

    • 1137 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Ontela Pickdeck Analysis

    • 579 Words
    • 3 Pages

    L/O/G/O Ontela PicDeck 4th Group Marketing Management F121 Group Member • • • • • • Amira Islamie Bayu Pahala Radityo Bhagas Arga Saputra Dwi Hermiyati Ferry Cahyadiputra Irreza Contents Ontela PicDeck Case 1 What is Ontela ? 2 Why Ontela PicDeck doing research 3 How How are Market Segment Best Defined?…

    • 579 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs (and/or common desires) as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income. Marketing campaigns can then be designed and implemented to target these specific customer segments.…

    • 683 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    market segment

    • 716 Words
    • 3 Pages

    Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs and this is also a the process of dividing a market into meaningful groups that are relatively similar and identifiable .The purpose of segmentation is to enable the marketer to tailor the marketing mixes to meet the needs of one or more specific segments. Market segmentation helps the firm to identify the customers’ needs more accurately and precisely, and it can upgrade the performance of the firms. Marketing objective is more definitely defined and resources are better allocated by doing segmentation.…

    • 716 Words
    • 3 Pages
    Powerful Essays

Related Topics