Auto Parts Industry: Overview
Since the last couple of years, the revenues generated by the automotive industry has nearly doubled, and it is witnessing the entry of numerous domestic car manufacturers across countries such as China, India, and Russia. Also, with the growing per capita income and urbanization, the aftermarket sales of the auto parts has increased, and leading businesses are investing in auto parts to increase the efficiency of their products. In the auto parts manufacturing space, businesses are advocating the need for market segmentation solutions to reduce production costs and further target the ideal potential customers. Market segmentation helps segment the large market into the smaller sub-segments to target consumers with similar tastes, demand, and preferences. With the growing population of customers, market segmentation can help businesses in the auto parts manufacturing space profile the needs, wants, and desires of the customers and design the products specifically to target these customer segments. Furthermore, the auto parts manufacturers can refine their marketing strategies based on consumers lifestyle, brand preference, and price sensitivity.
To identify the customers with similar brand affinity, leading auto parts manufacturers are approaching renowned solution providers like Infiniti. Infiniti’s market segmentation strategy is all about profiling the right customers with similar preferences and focusing on the marketing efforts to better align their products for the relevant customers. Moreover, the segments can further be measured in terms of sales volume and value, which helps auto parts manufacturers to raise average prices and subsequently enhance profits.
The Business Challenge
A leading auto parts manufacturer with a considerable number of manufacturing units spread across the globe was facing predicaments retaining customers and enhancing customer satisfaction. The client wanted to identify and target different market segments and their needs. With the help of market segmentation, the client wanted to personalize their marketing campaigns and target customers individually. The auto parts client further wanted to be more efficient in allocating their resources to the concerned target segments.
With the aim to identify the right demographics and position their products effectively, Infiniti’s market segmentation experts carried out extensive qualitative and quantitative techniques with leading stakeholders in the auto parts manufacturing space. To adequately allocate the resources, the client also compiled information from a wide array of resources such as paid industry databases, company presentations, and industry forums.
Benefits of the Market Segmentation Solution
The market segmentation solution offered by Infiniti helped the auto parts manufacturer identify the needs, wants, and demands of the consumers. Also, the solution aimed at focusing on segments that go on par with the customers preferences. Moreover, the client was able to launch products keeping these customers in mind and accordingly allocate resources to meet the customers’ requirements. In today’s competitive market landscape, where the customer’s behavior is altering, the client was able precisely to forecast the customers’ preferences and accordingly position their product offerings.
Additional Benefits Offered by Market Segmentation Include
- Segmented customers based on their brand affinity and product usage
- Created an inbound marketing activity to profile the strongest categories
- Provided personalized offering to the customers
- Provided an effective avenue of communication with the customers