Market segmentation Research Paper Example | Topics and Well Written Essays - 500 words

Market naval division - Research Paper ExampleThe market could be segmented into three major groups young adults (age 22 to 35), middle aged (age 36 to 50) and senior citizens (51 years and above). Nevertheless, the business scope (in terms of sales volume) of chivvy Volt is relatively high for first two segments because these consumers are tilted towards new cross vehicles and eco-friendly products (Welch, 2010). It is confirm to argue that GM has currently a small market because there are fewer customers in the market that could easily acquire a $40,000 car in bleak economic scenario (inflation, high boast / fuel prices and unemployment). Indeed, GM sold only 647 vehicles in first 2 months of launch that confirms aforementioned bloodline (Jin, 2011). It should be emphasized that GM competes with Japanese makers like Toyota, Honda and Nissan that could easily produce and market a hybrid in range of $17,000 33,000. Therefore, GM has been planning to increase its production a nd sell 25,000 units a year. This would definitely change GM to reduce Volts total market price by $8,000 12,000, thereby change magnitude its competitiveness and attracting a large pool of middle middle customers.