how market segmentation is shaping current automotive industry
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CONTENT
How market segmentation is shaping current automotive industry
• Insight of the industry
• Functional Objectives
• Customer focused attributes
• Manufacture’s considerations
• Market Forces
• Car segments
• Experiment
BIT 04/19/12 - Carello Fabio
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Introduction
3
Introduction
4
Introduction
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Worldwide sales – Insight of the market
Source: http://www.motortrader.com.my/Cars/NewsHeader/News-in-2011/World-News/Outlook-for-global-auto-market-in-2011.aspx
Global 76.5 M 6%
North America: 15.5 M 11%
South America: 5.1M 5%
Europe: 18.1M -1%
Asia: 32.2M 7%
Russia: 2M 6%
Japan: 4.4M -9%
China: 19M 11%
India: 3.2M 17%Brazil: 3.7M
8%
USA: 13M 12%
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Introduction
“successful contemporary brands tend to stand for something important to their target customers, making them admirable to those
customers, who then want to use those brands as badges to express who they are
and what they believe in”
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SOME OF ALL TIME TOP SELLING CARS
1908-1927 Model T: 16.5M
1938…Beetle: 22.3M
1948…F150: 30M
1984…Voyager:
12M
1959…Mini: 6.8M
1974…Golf: 25M
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• Brand identity matches product characteristics
• Space/dimensions• Manufacturing capability, Technology
• Manufacturing Costs, platform sharing, production volumes, warranty
• Comfort, interior space, cargo volume, number of passengers, noise,•safety• Brand, image, fashion,• Ecosustainable, emissions, efficiency,• Hi-tech, innovative devices• Total cost of ownership (fuel, maintenance, value at resell stage,)• Quality : quality of materials, Reliability, aftermarket component availability, durability, trim level• Performance, handling, weight
• Infrastructures, population density• Economy• Taxation• Insurance• Culture• Legislation• Climate• Sales volumes• Infotainment
FUNCTIONAL OBJECTIVES
Customer Focused Attributes
Manufacture’s considerations
Market Forces
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Car as Access
Point to a Connected
World
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CAR SEGMENTS
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Minivan Off-road Vehicle
Sport Utility Vehicle
Sport Activity Vehicle
Coupè
GENEALOGY OF A NEW SEGMENT
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Off-road Vehicle
Sport Utility Vehicle
Sport Activity Vehicle
Modu la r A rch i tec tu res
GENEALOGY OF A NEW SEGMENT
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Developing a sedan for the Chinese Market:
Focusing on dimensions/proportions to satisfy the customers
Customer focused Attributes
•Comfort, interior space, cargo volume, number of passengers , noise,
•Safety
•Brand, image, fashion,
•Ecosustainable, emissions, efficiency,
•Hi-tech, innovative devices
•Total cost of ownership (fuel, maintenance, value at resell stage,)
•Quality : quality of materials, Reliability, aftermarket component availability, durability,
trim level
•Performance, handling, weight
Car Segments: Types and versions
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Developing a sedan for the Chinese Market:
Focusing on dimensions/proportions to satisfy the customers
Car Segments: Types and versions
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Developing a sedan for the Chinese Market:
Focusing on dimensions/proportions to satisfy the customers
Tire Size
Wheelbase
Overall Lenght
Front Overhang
Height
Rear Overhang
Car Segments: Types and versions
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Short Wheelbase versionEU-Nafta markets
Long Wheelbase versionChinese market
+12CM /4.5 IN
Developing a sedan for the Chinese Market:
Different version for a different Market
Car Segments: Types and versions
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MacroVariables used to create each profile:
1. Comfort2. Safety3. Brand Image4. Efficiency5. Hi-tech innovation6. Quality7. Performance
Experiment
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Comfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
Toyota Prius
Fiat 500cc
Claudio
Erin
Comfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
Experiment
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Honda S2000
Jeep Cherokee
Michele
Diego
Comfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
Comfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
Experiment
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Chevy Camaro
RyanComfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
Experiment
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Delta w Avg
-4,7% 3,7% 7,9% 0,9% -5,4% -6,1% 3,7%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-4.7%
3.7%
7.9%
0.9%
-5.4%-6.1%
3.7% Comfort
safety
brand/fashion
efficiency/eco friendly
hi tech
quality
performance
Comfort safety brand/fashion efficiency/eco friendly hi tech quality performance13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
16.0%
13.6%
14.8%
15.4%
14.4%
13.5%13.4%
14.8%
Relevance of requirements in the sample (%)
Experiment
Relevance vs Average (%)
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Comfort
safety
brand/fashion
efficiency/eco friendlyhi tech
quality
performance
-5%
15%
35%
max Sample
min
Experiment
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The Results Honda CRZ Mugen
Customer focused Attributes:
Great power to weight ratio (200 bhp, 1.2tons) 55-45 weight distribution = great handling
Hybrid engin = Low emission level1.5cc (small displacement engine)
Innovative design for a hatchback vehicle
Performance
Brand/Fashion
Efficiency/Eco Friendly
Experiment
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Thank you very much
How market segmentation is shaping current automotive industry