Market segmentation variables evidenced in Holden Volt Company and how they are determined to be true.
Segmentation of the market is an act dividing the broader market to smaller market subsets of clients and customers with general needs. It should be followed by a systematic implementation of strategies that are meant to solve and satisfy the customers’ needs, using the best available means such as media channels and other well touch-points that may best reach and suite them (Carroll, 2006). It is mainly affected by so many variables which may include the current events that are taking place in the immediate market, the status and the situation of the economy, the tendencies that are fundamental in the existing market and the usage rate. Initially, market segmentation variables were classified into three main broad groups, which are geographic segmentation variables, demographic segmentation variables, physiological segmentation variables and behavioral segmentation variables
The characteristic of the immediate population is one of the demographic variables that affect the market segmentation. The trends of the population bring an effect on the sale and demand of certain good and services. For instance, in a Christian area the sale of Bibles would be very high compared to the sale of other books like Qur’an. The same case also applies in goods produced by a distinct company as Holden Volt. For example, in the country’s capital cities, the demand of a Holden Volt guzzler car would have a higher demand than a Holden Volt eco-friendly passenger car, whose demand would be on the higher rank in the middle income towns (Jankovic, 2010).
The profit margin is also highly affected by the geographical segmentation variables, for instance, the situation and the status of the market, and the product source. Holden Volt being on a higher rank on the companies that achieved a lot in the recent past understands the profits brought by good geographical segmentation. Holden Volt being set almost at the center of a highly populated continent fetched a great number of customers who regularly buy its products. The Australian warm weather supported the performance of the eco-friendly passenger car (Jankovic, 2010). It happens because the country experienced moderate weather conditions that did not affect the performance of the car.
In Australia, many individuals have approximately from two to four kids. The availability of these big families attracts the need to buy a passenger car for domestic uses. In addition, the families require cars that consume less fuel for economic purposes. This lifestyle brought an effect on the profits the company gets from selling the passenger car. Due to the spread of the same lifestyle to the entire world, the sales of the car improved at a very high rate (Carroll, 2006). To the target market of Holden Volt, this is a physiological segmentation factor that set the pressure on the customers, giving the positive results to the company.
Holden volt being an Australian company is said to have conducted a research on the average amount of gas used every day by a common Austrian middle class citizen. The research revealed that the amount varies from $25 to $30, this statistics made the company to produce this eco-friendly car which have high usable rate, consumes less to cover more mileage (Anderer, 2013).
Different levels of competition for Holden Volt
There are different types and levels of competition for products depending on their nature and the conditions of the market. Many marketing leaders and specialists typically understand a great deal about their competitors (Aghion, 2012). The growth of technology made it very easy to understand the pace of the competitors and their intentions. Technological advancements, like the social media, simply integrated and solved the ever existing problem of misunderstanding in the market. From the early times, competition was known to occur in levels. Some of these levels of competition include: the brand level, the generic level, the consumer need level, organizational level, the industry level and the market level.
The brand level competition mainly occurs when the competitors are offering similar goods to another company’s. This leads to sharing of the customers due to the different tastes among the customers. For instance, the Holden Volt brand of eco-friendly passenger cars competes with similar brands produced by other companies. For example, the Toyota and Tesla companies produce similar cars creating brand competition.
A level of competition referred to as consumer need level is a form of competition that is mainly caused by the growth of demand of a good or service. Holden Volt being one of the most eco-friendly passenger cars= of its kind, may attract a very high level of customers both rich and poor because of its high level of conservation of resources. If the supply of the car is inadequate it may create competition among its customers (Aghion, 2012). This level of competition may not reduce until the adequate number of vehicles is produced or other companies produce a variety that may suit the needs of the available customers.
Holden Volt, Toyota, Tesla and other companies compete in the similar prevailing markets for the same customers. If their competition is healthy it may lead to growth of the companies which may later lead to the production of more efficient goods (Anderer, 2013). This organizational level of competition is always good and should be encouraged for the growth of the market.
The production in the industries may be affected by the other industries that are able to make the same classes of products or offering the same services. Holden Volt and other related companies operate in a group where other companies may produce more or fewer products due to the effects from the other companies. In the recent past, Holden Volt encountered too much industrial level of competition because of the other companies that were established before it and had already dominated the market.
All companies that produce eco-friendly passenger cars experience the same market level of competition as Holden Volt. The product produced by these companies meets the same need of their customers (Anderer, 2013). The ability of the products to provide the same service is the main reason for the companies to experience market level competition.
In conclusion, every product that exists in the market experiences competition. The competition may be either direct or indirect. An international company like Holden Volt mainly experiences organizational competition, industrial competition and also brand level competition. In the organizational level competition, the company showed the high level of success after it emerged among the top companies in production of eco-friendly passenger cars.
Profile of market segment at which it is targeted and characteristics of the target market
In Holden Volt Company’s operational strategies, in the international business, the company established various marketing strategies that made it much more effective to operate in the foreign countries. The company’s ability to set several subsidiary companies is one of the greatest achievements in promoting international business (Kraiczy, 2013). The subsidiaries are found in most of the countries in Australia where they find it conducive to manufacture and assemble their products. The availability of skilled labor, raw materials and available market are the major criteria used in selecting the suitable geographical location to set up their branches. These locations facilitate an effective operational strategy of the company and also organizational level of competition.
Through the branches, the customer satisfaction was achieved. The clients can easily and efficiently get the products of their choice and this enhances their loyalty through customer satisfaction (Kruger, 2011). The customers’ loyalty makes it more appealing to the company as it makes it more likely that the customers return. The subsidiaries also provided jobs for the local community in the located areas. It makes the community in the location have the passion for being associated with the company’s brand name because they are proud of the company.
This is a business strategy that has aimed at targeting different customers who have differences in their taste of the goods and services offered. It eased it for the customers to have access to the company’s products that suit their technological needs. Running advertisements is also among the business tactics that the company was employing in its undertakings (Kraiczy, 2013). It enhanced the familiarity of the products and services to the different individuals and making them more aware of the products that they offer. With the company’s continued innovation in their products and services, like the newly introduced eco-friendly cars, it became more efficient and strategic for the company to increase its operations to the clients of all levels. This is possible because of the variety of Holden Volt products such as the numerous car models with different features and satisfying to the different levels of individuals’ different technological needs. The wide range of products makes it more competitive for the other competitors since customers were widely known to choose a suitable product that appeal to them (Kruger, 2011).With the innovations occurring, the customers can access the products and services from various sources, such as the Internet, where they can make orders and even purchase the products online. Services, such as free delivery, are also among the extensive customer services that are offered and act as a motivational factor to the customers.
To sum up, as the technological field of mechanics keeps on changing, Holden Volt kept on advancing according to the level of the competitors’ encroachment in order to keep pace in the advancements (Kraiczy, 2013). The company also tries to come up with unique and quality products that are totally different from those of its competitors. Although so many companies have tried to copy their way of making cars, their unique strategy has helped in marketing the company’s brand name and the sustainability of the company in its level. Highly skilled engineers operate in the company’s production departments and this enlightens and maintains high productivity of its exceptional products.
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Carroll, J. T. (2006, October 1). Divide and conquer: novel patient-segmentation approach leads to new opportunities: anonymized patient-level data can be used to segment patients according to clinical factors, therapy usage, and demographics, allowing pharmaceutical companies to reach th. Product Management Today , 1, 4.
Jankovic, E. M. (2010). Relationships among country risk, investor expectations, and financial variables in Central Europe a study of transitioning economies. Lewiston, N.Y.: Edwin Mellen Press.
Kraiczy, N. D. (2013). Innovations in small and medium-sized family firms an analysis of innovation related top management team behaviors and family firm-specific characteristics. Wiesbaden: Springer Gabler.
Kruger, E. R. (2011). Top market strategy applying the 80/20 rule. New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press.
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