How an Automotive Giant Carved Out a Niche for Themselves in a New Market Segment – Infiniti’s Market Segmentation Study

December 27, 2018

Market Segmentation Best Practices: 4 Simple Rules

Market segmentation analysis isn’t as challenging as it seems to be. The market segmentation process just takes time and research. It is important to prepare and do your research up front to determine the potential market segments and then align it with your marketing efforts.

Here are four simple rules for segmentation:

Rule 1: Avoid broad classifications of different segments, instead of narrow down the process to gain a better understanding of your competitors

Rule 2: Organize your business by market segments instead of establishing market-focused groups and then organizing them into a market-focused business model

Rule 3: Manage your segments worldwide

Rule 4: Complete your analysis and research

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About the Client

The client- a leading player in the US automotive industry. The automotive industry player is one of the ten biggest car companies in the world. 

Predicaments Faced

Like other US automotive industry players, the client in this study faced major challenges due to- a wave of global consolidation and acquisitions in the automotive market, a sharp decline in the buyer’s market that was keeping prices and viability down, inefficient distribution that hindered innovation, and wide variations in profitability that slimmed down the chances of growth and profitability. The automotive industry client wanted a clear direction to move forward with an idea of which market will be the best target. In this context, the automotive industry client wanted to establish three major goals through a detailed market segmentation analysis:Request Proposal

  • Identify market sub-segments that have the greatest profit potential
  • Identify segments interested in purchasing more value-added services
  • Develop products, services, and marketing messages that address the specific needs of the segments

Solutions Delivered

By systematically engaging in a detailed market segmentation analysis, the client was able to improve profitability and competitiveness in several fundamental ways. The market segmentation targeting and positioning study helped re-evaluate the client’s strategies designed to determine- the profitability of different segments, whether different product features could be used to differentiate themselves in different market segments. Moreover, a detailed market segmentation analysis and persona profiling enabled the automotive industry client to carve out a niche for themselves in the new high potential market segment.

The insights gleaned from Infiniti’s market segmentation targeting and positioning study included:

  • Customer groups
  • Market opportunities
  • Segmentation implications and recommendations

Our market segmentation expertise and global network enable automotive industry clients to drive change and flourish in a fast-changing and unpredictable industry.

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