1

CONTENT

How market segmentation is shaping current automotive industry

• Insight of the industry

• Functional Objectives

• Customer focused attributes

• Manufacture’s considerations

• Market Forces

• Car segments

• Experiment

BIT 04/19/12 - Carello Fabio

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Introduction

3

Introduction

4

Introduction

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Worldwide sales – Insight of the market

Source: http://www.motortrader.com.my/Cars/NewsHeader/News-in-2011/World-News/Outlook-for-global-auto-market-in-2011.aspx

Global 76.5 M 6%

North America: 15.5 M 11%

South America: 5.1M 5%

Europe: 18.1M -1%

Asia: 32.2M 7%

Russia: 2M 6%

Japan: 4.4M -9%

China: 19M 11%

India: 3.2M 17%Brazil: 3.7M

8%

USA: 13M 12%

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Introduction

“successful contemporary brands tend to stand for something important to their target customers, making them admirable to those

customers, who then want to use those brands as badges to express who they are

and what they believe in”

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SOME OF ALL TIME TOP SELLING CARS

1908-1927 Model T: 16.5M

1938…Beetle: 22.3M

1948…F150: 30M

1984…Voyager:

12M

1959…Mini: 6.8M

1974…Golf: 25M

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• Brand identity matches product characteristics

• Space/dimensions• Manufacturing capability, Technology

• Manufacturing Costs, platform sharing, production volumes, warranty

• Comfort, interior space, cargo volume, number of passengers, noise,•safety• Brand, image, fashion,• Ecosustainable, emissions, efficiency,• Hi-tech, innovative devices• Total cost of ownership (fuel, maintenance, value at resell stage,)• Quality : quality of materials, Reliability, aftermarket component availability, durability, trim level• Performance, handling, weight

• Infrastructures, population density• Economy• Taxation• Insurance• Culture• Legislation• Climate• Sales volumes• Infotainment

FUNCTIONAL OBJECTIVES

Customer Focused Attributes

Manufacture’s considerations

Market Forces

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Car as Access

Point to a Connected

World

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CAR SEGMENTS

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Minivan Off-road Vehicle

Sport Utility Vehicle

Sport Activity Vehicle

Coupè

GENEALOGY OF A NEW SEGMENT

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Off-road Vehicle

Sport Utility Vehicle

Sport Activity Vehicle

Modu la r A rch i tec tu res

GENEALOGY OF A NEW SEGMENT

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Developing a sedan for the Chinese Market:

Focusing on dimensions/proportions to satisfy the customers

Customer focused Attributes

•Comfort, interior space, cargo volume, number of passengers , noise,

•Safety

•Brand, image, fashion,

•Ecosustainable, emissions, efficiency,

•Hi-tech, innovative devices

•Total cost of ownership (fuel, maintenance, value at resell stage,)

•Quality : quality of materials, Reliability, aftermarket component availability, durability,

trim level

•Performance, handling, weight

Car Segments: Types and versions

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Developing a sedan for the Chinese Market:

Focusing on dimensions/proportions to satisfy the customers

Car Segments: Types and versions

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Developing a sedan for the Chinese Market:

Focusing on dimensions/proportions to satisfy the customers

Tire Size

Wheelbase

Overall Lenght

Front Overhang

Height

Rear Overhang

Car Segments: Types and versions

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Short Wheelbase versionEU-Nafta markets

Long Wheelbase versionChinese market

+12CM /4.5 IN

Developing a sedan for the Chinese Market:

Different version for a different Market

Car Segments: Types and versions

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MacroVariables used to create each profile:

1. Comfort2. Safety3. Brand Image4. Efficiency5. Hi-tech innovation6. Quality7. Performance

Experiment

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Comfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

Toyota Prius

Fiat 500cc

Claudio

Erin

Comfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

Experiment

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Honda S2000

Jeep Cherokee

Michele

Diego

Comfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

Comfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

Experiment

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Chevy Camaro

RyanComfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

Experiment

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Delta w Avg

-4,7% 3,7% 7,9% 0,9% -5,4% -6,1% 3,7%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

-4.7%

3.7%

7.9%

0.9%

-5.4%-6.1%

3.7% Comfort

safety

brand/fashion

efficiency/eco friendly

hi tech

quality

performance

Comfort safety brand/fashion efficiency/eco friendly hi tech quality performance13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

13.6%

14.8%

15.4%

14.4%

13.5%13.4%

14.8%

Relevance of requirements in the sample (%)

Experiment

Relevance vs Average (%)

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Comfort

safety

brand/fashion

efficiency/eco friendlyhi tech

quality

performance

-5%

15%

35%

max Sample

min

Experiment

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The Results Honda CRZ Mugen

Customer focused Attributes:

Great power to weight ratio (200 bhp, 1.2tons) 55-45 weight distribution = great handling

Hybrid engin = Low emission level1.5cc (small displacement engine)

Innovative design for a hatchback vehicle

Performance

Brand/Fashion

Efficiency/Eco Friendly

Experiment

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Thank you very much

How market segmentation is shaping current automotive industry