Marketing Segmentaion For The Hummer Suv

1423 words - 6 pages

The HummerTable of ContentsIntroductionMarket segmentationAIM General and Segmentation IssuesDecision and OpinionThis case present the current situation of the Hummer jeep originally designed for the military and the new civilian vehicle H2 Hummer. Trying to find some marketing strategies to help the new hummer H2 to raise its sales and face the competition in the market from so many different SUV's companies. Some recommendations are given by the end of the study.Hummer is a jeep-type vehicle, designed with specific characteristics to meet the needs of the US military. The specification of the hummer H1 does not exist in any of the commercial SUV's. the hummer is produced by the AM Gene ...view middle of the document...

Many more customers bought the hummer after that, the prices ranged between $56,500 for the 2 passenger to $72,000 for the 4 passenger wagon.The civilian hummer came with most of the SUV's options like power door locks, power steering, high back bucket seats, 12000 pounds winch, CD player, etc...The company noticed that the typical hummer household consumer made $200,000 to 300,000 a year and most them were men and have 2 to 3 vehicles already. In Dec 1998 The AM General entered in agreement with GM giving the GM exclusive ownership of the Hummer brand name worldwide and jointly redesign the next generation civilian hummer which is known after by H2, GM will assume all marketing and distribution responsibilities for the civilian hummer.Automotive and business pundits have had mixed reviews of the GM H2 hummer concept. It's downsized hummer SUV, doesn't look much like hummer and it has more common with GM SUV's than the H1 hummer and all the engine parts, steering wheels ,and other parts are shared with GM SUV'S which count as a withdraw for the hummer.GM says that the target markets for the H2 will be a combination of a rugged individuals who will use it off roads and successful achievers who will never take it to hills.Market SegmentationThe General Motors Company seems not having any segmentation approach or may be using a prior segmentation approach for the market since they are not based on any known research basis.Segmentation approachesThe market segmentation can be done based on too many different issuesGeographic Issues:geographic location, which part of the world they are targeting like north America, Africa, or based on the countries or country regions like Midwest, north eastNature of the area, since the hummer is and SUV designed for military with high power and special specifications like mountain climbing so we can target the areas or the states with rough nature.Weather: snow, desertDemographic Issues:Age since most of the hummer consumer is within certain age so you will know from the population data which area to target.gender since most of the consumers were malesincome, which is a big issue since the hummer is not a cheap vehicleSocial Issues:Social class: upper class, middle class, usually the higher class people are more interested in buying such vehicles.Race; sometimes the race will be issue in picking the vehicles.Behavior:Usage rate of the consumer if they are heavy or light users, which might not be a big issue in this case.Psychographic segmentation which focuses on the perso...


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