Hybrid Conversions Inc – Market Segmentation
Essay title: Hybrid Conversions Inc – Market Segmentation
Positioning Statement:
Hybrid Conversions, Inc. is the most cost effective among all hybrid conversion kit manufacturers because the technological, industry, and partner expertise allows for a lower total cost of ownership.
Market Segmentation and targets:
In research, HCI was looking at various statistics to select initial target markets to start the deployment of the conversion kits in pickup trucks. The target segments are shown below:
Types Of Customers
Utility and Telecom Companies
Government Municipalities
rental car/fleet leasing companies
universities and large school systems public or private
telecom installers
Railroad Companies
Building contractors
moving companies
Table 1: Target Customer Rank
The main target segment is Utility and Telecom companies. Their qualities are as follows:
Large fleets, comprised mostly of trucks
Travel longer distances than other industries (University fleets)
Long idle times
Industry is making a concerted effort to turn their fleet into hybrids (Pacific Gas and Electric)
Government municipalities will be a second channel as while the fleet is large, the amount of travel is considerably less than for Utility and telecom companies.
The rental car market is a very large market. It makes up approximately 51% of all fleet sales in 2005 for light trucks according to R.L. Polk. The challenge in the target market is the frequency rental companies move their vehicle inventory. Adding 3,500 to 5,000 per car is not practical for the rental car industry. HCI will have to review the market because of the large amount of customers.
Hybrid matrix:
To create the map of the channel for the utility and telecom companies, the processes are identified. The processes are shown below:
Step number
Procedures
description
Attract the Company as a potential supplier
Trade Magazines, catalog, trade shows
Position Company versus competitors in the market
National Sales Force
Describe the available product versus the competitors
National Sales Force
Work with certified vendor to explain installation
Certified VARS and National Sales Force
Negotiate Price and Terms
Certified VARS and National Sales Force
Accept Order
Certified VARS and National Sales Force
Work with certified vendor to coordinate installation
Certified VARS and National Sales Force
Deliver system to certified vendors for installation
Freight Company (UPS)
Work with certified vendor for ongoing training and maintenance
Manufacturer
Sell additional systems
Certified VARS and National Sales Force
Table 2 Channel processes for Utility companies
Due to the control that needs to be kept over the product due to the complexity of the product, only Certified Value Added Resellers