MARKETING PROJECT

SEGMENTATION FOR SEGWAY

SEGWAY with the aim of transforming Human Transportation launched Segway HT through mass marketing.

Starting of with mass marketing the company moved towards Niche segmentation.

New Strategy For Segway Segmentation

Complete segmentation for any product is a utopia, a chimera. Accordingly, we have identified the Shipping

Industry as a segment which we feel still has untapped potential for Segway. In terms of sub segments to be

targeted within this industry we have identified the following:

On Board Sailing Vessels, For use within Ports, For use within Warehouses, For use within Ship Building

Yards

The ship building industry in the United States covers Commercial and Leisure ships, Cruises, Ports. There are a

plethora of environmental norms and standards created for this industry which makes it imperative for a product like

Segway to be introduced in this industry.

There are primarily two variations made to the product and they are as follows in context of the usage the

product is intended for:

Segway SS – For use On Board Ships

Segway SW – For use within ports, warehouses and ship building yards

Effective Segmentation Criteria:

MEASURABLE

The size of the segment is quantitatively measurable. There are around 601 ports in the USA. There are around

40000 vessels and 7100 warehouses available in the US for operations.

SUBSTANTIAL

The market capitalization of the US shipping industry stands at around 30 billion dollars. Industry CAGR is

pegged at around 10%. Industry gross operating surplus is growing by 63% between 2002 to 2007

Source: US Department of Transportation and Maritime Administration

DIFFERENTIABLE

The target segment focuses on efficiency in operations, swiftness in logistical and operational movement and

smooth and convenient handling of cargo. The target segment looks at all these product attributes while

choosing a product.

ACTIONABLE

The company can formulate effective, customized and personalised programs for targeting the shipping industry

such as special targeting of the segment by the sales force, further modifications to the product to customize it

further to the needs and specifics of this segment etc

ACCESSIBLE

It will not be an uphill task for the company to target the shipping sector owing to the lattter’s size and the

company’s presence in the United States

MARKETING MIX:

PRODUCT

Segway SS (For Ships)FEATURES

Shock Absorbers Float (on board emergency measure)

For Travelers Segway + 2 Cargo Bags

For Ship Staff Segway + Laundry Bag + Food Tray)

WARRANTY & SERVICE Offshore Repairs & Services

Segway SW (For Ports, Warehouses, Ship Building Yards) – For Lightweight CargoFEATURES

Sturdy Tyres Carrier attached to Segway

WARRANTY & SERVICE On site Repairs & Services

PRICESegway SS $1870 per UnitSALES DISCOUNT

$100 on purchase of 75+Segway UnitsCREDIT TERMS

Installments

Segway SW $1700 per UnitSALES DISCOUNT

$50 on purchase of 75+Segway UnitsCREDIT TERMS

Installments

PROMOTIONDIRECT MARKETING

Providing Shipping Corporations with catalogues, brochures offline as well as online servicesSALES PROMOTION

Providing personalized customer trials

PUBLIC RELATIONS Press Conferences during the launch of the product

PLACECHANNEL

Direct distribution or 1 tier distribution via Agents Online purchase facility available