Marketing Segment Analise-India Case Study

Market Segmentation Analysis of Volkswagen India.
Market Segmentation Analysis of Volkswagen India.
Volkswagen India provides a prime and standard understanding and example of how insightful market segmentation and a fundamental knowledge of several different consumer personas and attributes could lead to successful vehicle marketing. By carefully carrying out an analysis and targeting its intended audience as well as using various marketing means and platforms, like the social media, where these consumers are actively present and participative, VW India is able to effectively reach its potential consumers and offer them a type of service that aided them in their success and yielded their renowned reputation in the face of the world. This paper seeks to explain the concept of market segmentation, its importance and challenges in regard to the case study of VW India.
Description of Market Segmentation.
Market segmentation is the process of dividing a market into distinct groups of buyers or consumers who have different needs, characteristics, natures or behaviors and who might oblige completely separate products or marketing programs from the same organization or group. A market segment is applied in the manner that it comprises consumers who respond in a more similar way to a particular set of marketing efforts (Allenby et al., 2012). The application is usually based on concept of geographic divisions, demographic, psychographic and behavioral variables. Market segmentation is important because it allows a company to be more efficient with their time, money and other resources. Secondly, the process helps a company reduce risks of unsuccessful or incentive market campaign and also as a way of prioritizing its target audiences.
In the case of VW India, the group has sufficiently used market segmentation to divide its large and heterogeneous markets into smaller divisions that can be reached and served more effectively and efficiently providing them with products and services that will match their requirements (Volkswagen AG, 2016). The company has five car segments namely; Budgeted, Compact, Mid-size, Premium and Luxury car segments. Previously, the company had been focusing on producing vehicles for consumers in the market looking for Sedan, SUV and Hatchback. The company is also presenting itself in various other segments as the premier developer and manufacturer of high volume vehicles such as Passat; a car which was globally launched in 2007 with the aim of covering the target market of the luxury segment (Volkswagen India, 2017). Further, in July 2008, VW India launched a world known vehicle and India’s bestseller brand, Jetta, in order to expand their portfolio and satisfy its consumers in the mid segment.
The company continued its market segmentation process in December 2009 when it launched the New Beetle and SUV Touareg in its focus of the high end segment. Again, in the same month, the group began construction of the hatchback version of Polo while targeting a massive segment of small car buyers with a plan of capturing the world market with the same product, Polo. After release of Vento with the aim of targeting the mass market segment, VW India is currently offering each segment with a car except the b...