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Segmentation and Targeting.

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Introduction

Segmentation and Targeting Theoretically everybody who owns a vehicle can be our potential customer while we acknowledge that only a portion of them are concerned about saving gasoline and conscious of environmental consequence of vehicle emission. Based on end user, we'll first divide the market of vehicle drivers into three submarekets: private, public and commercial drivers. Private drivers are those who drive a vehicle as a means of personal transportation. For most car owner, a fuel economy device is a discretionary purchase and their buying decision is a function of awareness of fuel consumption and sensitivity to fuel cost. There's an interesting paradoxical relationship between types of vehicle and sensitivity to fuel cost. Generally speaking, economic car driver will have a greater interest in saving on fuel. ...read more.

Middle

However, reducing toxics in the emission could be a major concern of environment regulations and therefore triggers the need of modifying public vehicles to be more ozone-friendly. For commercial drivers, driving a vehicle is part of revenue generating activities and they can be further divided into two segments. The first is general commercial drivers, as practically all business involves transportation of goods and services. The second is professional commercial drivers such as taxi drivers and drivers for trucking company. They can also be segmented by fuel consumption pattern to heavy users and moderate users. Since operating a car/truck is the core of business, drivers from this segment are most sensitive to the cost of fuel. Statistics shows that for a typical fleet company, fuel and oil cost averages 19% ~ 37% of total operating cost, which has a direct impact on their bottom line. ...read more.

Conclusion

Secondly, we are limited in resources to launch a full-blown mass marketing. It's more sensible to target a single segment where we have a better chance of opening victory. After we have established credential for our product in this segment, later on we can expand to other segments with proved performance record. Although a single segment is easier to target, our concentrated marketing has its drawback as well. Without diversification of risk across different sectors, unexpected resistance from our focused segment will radically weaken the success introduction of our product. For instance, demand for taxi services may suddenly drops, and taxi drivers are force not to consume as much fuel any more. If that happens, we'll instead target the segment of private drivers and revise our marketing plan accordingly. ...read more.

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