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‘Pearl motors’ is a hypothetical electric powered car company with a mission to create the newest and finest vehicles having zero pipe emissions that significantly reduces city pollution. Not only are this cars designed to luxuriously meet the passengers comfort but are less dependent on oil. Pearl Motors Company is optimistic about the future of this product and confident like any company that plans to introduce a product in the market. The success of pearl motors is almost certain referring to the brand title ‘pearl’ which suggests rare and very valuable. Potential for this new product surpasses any recent motor vehicle and its purpose is designed to suit the technologically advancing population. Its demand is already high and following research by motor researchers potential clients are positive about the product. Interest in investing in the electric powered cars has been evident by global powers. The U.S. for instance has pledged US$2.4 b in state grants for electric cars. China on the other hand has announced its provision ofUS$15 b to start an electric car industry (Leslie, 2009).
Market Segmentation and Product Positioning of a Marketing plan.
Market segmentation refers to science of dividing a target market into segments or subsets that symbolizes the customers. It divides the similar needs and characteristics of targeted clients. It is a costly process that involves the significant market research to identify how the overall market is. Any development of a product means that marketing will at one time become useful. Market segmentation enables the company to focus its resources on a specific customer base and thus curve a market niche. A product that meets the needs of a customer is likely to sell as compared to a competitive one. Marketers who keenly segment their products and create products that suit the needs of clients in an overall market are likely to gain profits and reduced competition. The stage that follows is known as positioning which ensures that the product occupies market for business purposes (Leslie, 2009).
For the pearl motors company to make it marketing will play a major role and strategies they employ from the time they create the electric powered cars will determine the results. The market segment identified would be the male gender aged between 25-40 years of age. Gender is a factor that we cannot evade from especially when dealing with products such as cars. Men are more innovative especially in sciences as compared to women who are favored by arts. The preference for men in electric powered cars is perhaps due to the fact that past invented electric vehicles which include sports cars were used by men.
Another potential segment would be based on behavior specifically driving patterns. Use of vehicles to commute, deliver mail, run errands does appeal a certain need to the customer. Price friendly batteries and use of less oil costly products like the electric powered vehicles makes transport easily accessible suit customers who are daily running errands up and down for instance. They characterize potential segments (Wendy, 2010).
Other factors that may determine segmentation include the social status of consumers (can they afford the product) Geographic location of consumers (where one plans to market the product), demographic factors, lifestyle as well as personality traits.
The procedure used to arrive at market segmentation is important as discussed below.
Determining the market boundaries is the first step of market segmentation. After one has set an expected market a broad formal business definition is needed to define it. This will help
- state the objectives
- Identify possible direct and indirect competitors
- Identify the needs of consumers, why would they go for the electric powered cars and not the others.
The second step involves decision of variables to be used in segmenting. Diverse data collection on many variables does not always draw meaningful conclusions. The marketers should use their knowledge of market to select few relevant variables than attempting to sort out many variables. This becomes cheaper and will probably present more useful results.
The third step entails collection and analysis of data which includes applying market research tools. This helps to identify market segments that are internally homogeneous, yet distinctly heterogeneous as compared to other segments. The development of a detailed profile of each segment is in the fourth step. Variables that relate closely to consumers buying behavior are related.
The fifth step involves decision of the segments to be served. A marketer Seek to fulfill the unsatisfied needs of clients within the resources of an organization. The objectives, skills and technology of a company would make it possible to meet that segment needs better than its competitors.
The target market and why these customers;
Targeting involves making business choices concerning segments and resources to be focused on. Who, what, where, when and how are questions asked in the process of targeting. The male customers will be aimed extensively and extending into foreign market has to consider countries that have on average larger male population. Being based in the US the pearl company will make home (US) the first target market. After establishing market here it will move to trade with other countries like China, Germany, UK, and Japan who are open to the idea of electric powered cars.
Targeting is important because incorrect targeting leads to failure. The product may not do well if estimation of the market is either too high or too low. It becomes tricky to thus accurately guess what is correct targeting. Targeting a small market means that you will be unable to realize full profits. On the other hand a large segment requires a lot of resources something that many new companies lack.
SWOT analysis of the Pearl motors (electric powered cars)
SWOT analysis is short phrased to mean (strengths, weakness, opportunities and threats). It is a basic and straightforward model that provides direction for progress of marketing plans.
Electric powered cars will change the vehicle market as they reduce pollution and tolerate zero pipe emission of CO2. Apart from that they consume fewer amounts of oil making them pocket friendly to the customer (Krebs, 1997). Pearl motors company will introduce this new product into the market leaving no room for the old generation of cars. This car has no similarities to other cars meaning that competitors will not be a problem when it is marketed. Besides that it will be using hydrogen and runs with an electric motor that generates electricity to its fuel stack. It also will have a lithium ion battery that will serve as a supplemental power source. The lithium ion battery is expected to charge up when the car is braking and decelerating (Wendy, 2010).
Amongst the strengths of electric powered car is how it is a Zero emission vehicle (ZEV). Not only will it be conducive to the environment but will also be avoidant of pollution thereby helping conserve our ecosystem. Since the pearl motors have clarity they are expected to be energy efficient leading to certification by the Environmental Protection Agency for being the first vehicles that don’t pollute environment (Krebs, 1997). There are diverse opportunities for the pearl motor company as it is eco-friendly. Bearing in mind that many countries want to invest in it means that market for the car will be welcoming. The have all it takes to go on and introduce the product.
One disadvantage that pearl motors may have to deal with is reintroduction of electric powered vehicles after many years. In the mid nineteenth century the electric cars enjoyed popularity but slowly faded out (Charlie, 2008). The pearl motors may have to deal with the factors that led to collapse of the former industry. However it has been many years and the pearl invention has been refined thanks to the fast advanced technology. Convincing people to buy it may not be easy as it is far more costly than the normal car. This car is for well off people, they have to be willing to go green and cash in big money. It may be available but inaccessible due to the average earnings of a normal citizen.
Basically the other models are a big threat. With some cheaper and new hybrids trying to imitate the pearl motors competition may emerge though it had not been earlier detected as a threat. Targeting men alone is also disadvantageous as the vehicle would be designed to suit the preference of men in terms of its body, colour and use. The bottom line still is that no other vehicle out there reduces pollution and has zero emission of fumes making it a product that has a bright future.
The market position for your product and service
How customers perceive the product is important in determining the positioning of the product. The pearl motors company is expected to be received positively. The fact that electric powered cars are a product that global powers look forward to invest in, makes positioning easier as the demand already exists. Apart from the targeted customers we have to consider the environmental conservatives who are after preserving the environment and reducing pollution in the cities.