Nokero is a global enterprise that design, manufactures and distributes safe, affordable and environmentally friendly solar based technologies. The use of solar energy eliminates the need to use harmful substances such as kerosene to light up homes as they have a negative impact on the surrounding environment and the health of those in it.
What market segments should the company focus on for profitable growth?
Market segments involves dividing the broader global market into sub markets which contain consumers with similar requirements.
Nokero can quite easily split the market geographically in order to sell to parts of the world with lower incomes and lower living standards. These regions might include large parts of Africa as a lot of the rural areas are deprived with a lot of people living in absolute as well as relative poverty. The climate of the market also compliments the product as it experiences high levels of light and sunshine which would increase the productivity and efficiency of the light bulbs.
Another geographical area Nokero should concentrate on is Asia and South East Asia, the reason being that the manufacturing plant is based in close proximity so the distribution time and transport cost would be somewhat reduced making it yet more affordable for those groups of consumers and more profitable for Nokero.
Thirdly, Nokero should concentrate on Latin America as it has a big pool of consumers with increasing incomes for whom the price will be more and more affordable over time. Another consideration might be setting up a manufacturing plant that could supply South America and Western Africa while the Chinese plant can concentrate on the markets of East Africa and Asia.
Having said all the above, it is quite apparent that Nokero has been concentrating on the market segments mentioned from the get go, but having had the success it has with those consumers, the only obvious move would be to increase their