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

Market segmentation - Research Paper ExampleThe grocery 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 Chevy Volt is relatively spunky for first two segments because these consumers are tilted towards new hybrid vehicles and eco-friendly products (Welch, 2010). It is justified 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 gas / fuel prices and unemployment). Indeed, GM sold only 647 vehicles in first 2 months of launch that confirms aforementioned argument (Jin, 2011). It should be emphasized that GM competes with Nipponese 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 an d sell 25,000 units a year. This would emphatically enable GM to reduce Volts total market price by $8,000 12,000, thereby increasing its competitiveness and attracting a large consortium of middle middle customers.