1. 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 1

2. Introduction
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3. Introduction
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4. Introduction
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5. Worldwide sales – Insight of the market
Global 76.5 M
6%
North America: South America: Europe: 18.1M Asia: 32.2M
15.5 M 11% 5.1M 5% -1% 7%
Russia: 2M
6%
Japan: 4.4M
-9%
China: 19M
11%
USA: 13M
12%
India: 3.2M
Brazil: 3.7M 17%
8%
Source: http://www.motortrader.com.my/Cars/NewsHeader/News-in-2011/World-News/Outlook-for-global-auto-market-in-2011.aspx
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6. 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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7. SOME OF ALL TIME TOP SELLING CARS
1908-1927 1938…
Model T: 16.5M Beetle:
22.3M
1948… 1959…
F150: Mini:
30M 6.8M
1974… 1984…
Golf: Voyager:
25M 12M 7

8. FUNCTIONAL OBJECTIVES
Manufacture’s considerations
• Brand identity matches product
Customer Focused Attributes
characteristics
• Space/dimensions
• Comfort, interior space, cargo volume,
• Manufacturing capability, Technology
number of passengers, noise,
• Manufacturing Costs, platform sharing,
•safety
production volumes, warranty
• Brand, image, fashion,
• Ecosustainable, emissions, efficiency,
• Hi-tech, innovative devices Market Forces
• Total cost of ownership (fuel, maintenance,
value at resell stage,) • Infrastructures, population density
• Quality : quality of materials, Reliability, • Economy
aftermarket component availability, durability, • Taxation
trim level • Insurance
• Performance, handling, weight • Culture
• Legislation
• Climate
• Sales volumes
• Infotainment
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9. Car as
Access
Point to a
Connected
World
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10. CAR SEGMENTS
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11. GENEALOGY OF A NEW
SEGMENT
Minivan Off-road Vehicle
Sport Utility Vehicle Coupè
Sport Activity Vehicle 11

12. GENEALOGY OF A NEW
SEGMENT
Modular
Architectures
Off-road Vehicle
Sport Utility Vehicle
Sport Activity Vehicle 12

13. Car Segments: Types and versions
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
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14. Car Segments: Types and versions
Developing a sedan for the Chinese
Market:
Focusing on dimensions/proportions to satisfy
the customers
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15. Car Segments: Types and versions
Developing a sedan for the Chinese
Market:
Focusing on dimensions/proportions to satisfy
the customers
Tire Size
Height
Front Wheelbase Rear
Overhang Overhang
Overall Lenght
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16. Car Segments: Types and versions
Developing a sedan for the Chinese
Market:
Different version for a different Market
Long Wheelbase version
Chinese market
Short Wheelbase version
EU-Nafta markets
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17. MacroVariables used to
create each profile:
Experiment 1. Comfort
2. Safety
3. Brand Image
4. Efficiency
5. Hi-tech innovation
6. Quality
7. Performance
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18. Experiment
Comfort
35% Claudio
30%
25%
performance safety
20%
15%
10%
5%
0%
quality brand/fashion
Toyota Prius
hi tech efficiency/eco friendly
Comfort
35%
30%
Erin
25%
performance safety
20%
15%
10%
5%
0%
quality brand/fashion
hi tech
efficiency/eco Fiat 500cc
friendly
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19. Experiment
Comfort
35%
Michele
30%
25%
performance safety
20%
15%
10%
5%
0%
quality brand/fashion
Honda S2000
hi tech efficiency/eco friendly
Comfort
35%
Diego
30%
25%
performance safety
20%
15%
10%
5%
0%
quality brand/fashion
hi tech
efficiency/eco Jeep Cherokee
friendly
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20. Experiment
Comfort
35%
30%
Ryan
25%
performance safety
20%
15%
10%
5%
0%
quality brand/fashion
hi tech efficiency/eco friendly
Chevy Camaro
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21. Experiment
16.0%
Relevance of requirements in the sample (%)
15.5% 15.4%
15.0% 14.8% 14.8%
14.5% 14.4%
14.0%
13.6%
13.5%
13.5% 13.4%
13.0%
Comfort safety brand/fashion efficiency/eco friendly hi tech quality performance
10.0%
8.0%
7.9% Relevance vs Average (%)
6.0%
3.7% 3.7% Comfort
4.0%
safety
2.0% 0.9%
brand/fashion
0.0%
efficiency/eco friendly
-2.0%
hi tech
-4.0% quality
-6.0% -4.7% performance
-5.4%
-6.1%
-8.0%
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22. Experiment
Comfort
35%
30% max
25%
performance safety Sample
20%
15% min
10%
5%
0%
quality brand/fashion
hi tech efficiency/eco friendly
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23. Experiment
The Results Honda CRZ
Mugen
Customer focused Attributes:
Efficiency/Eco Friendly
Hybrid engin = Low emission level
1.5cc (small displacement engine)
Performance
Great power to weight ratio (200 bhp, 1.2tons)
55-45 weight distribution = great handling
Brand/Fashion
Innovative design for a hatchback vehicle
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24. How market segmentation is shaping current automotive industry
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