18 Wheelers Business Plan
Yvonne Winn
Dr. Talil Abrhiem
November 8, 2020
Assignment 2: Target Market Segment
The target market describes a group of potential customers that the startup company wants to sell its products and services. Consumers in the target market usually have similar characteristics that appeal to the company’s business model. According to Thompson (2019), the target market can be segmented according to geographic, demographic, behavioral, and psychographic factors. Demographic segmentation involves targeting potential customers using age, gender, income, social class, education, and religion. Geographic segmentation entails dividing consumers according to the state, nation, and region where they live. Similarly, psychographic and behavioral segmentation is based on the consumer's personality, lifestyles, occasions, and brand loyalty. In this case, I will use a geographic approach to segment the target market.
The primary target market for 18 Wheelers, according to geographic segmentation, will be Texas. The state offers the best business environment for the trucking business environment since it is positioned along major transportation routes. Secondly, Texas has regulations required for starting a company. According to Upconsel (2020), Texas is one of the few states requiring business owners to pay income tax. Moreover, Texas is an oil-producing state, meaning that the cost of fuel is low. These factors make Texas an ideal primary target market for the 18 Wheelers Company.
The company's secondary market, in terms of geographic segmentation, will be the trucking market in the United States. The market consist of import and export companies that are more likely to purchase freight services. Similarly, the trucking business in the United States is experiencing upward growth and is the largest industry. According to Select USA (2020), the trucking industry generated $700 billion in 2018, making it the fastest-growing sector. Moreover, expanding the trucking business in different states enables the company to access more potential customers, hence realizing its growth objectives.
References
Select the USA. (2020). The Logistics and Transportation Industry in the United States. Retrieved from https://www.selectusa.gov/logistics-and-transportation-industry-united-states
Thompson, J. (2019). Target Market Segment Strategy. Chron, Retrieved from https://smallbusiness.chron.com/target-market-segment-strategy-63724.html#:~:text=Market%20segmentation%20is%20the%20act,similar%20characteristics%2C%20needs%20or%20behaviors.&text=This%20process%20is%20called%20segmentation,smaller%20segments%2C%20like%20an%20orange.
Upcounsel. (2020). Best State to Start a Trucking Company. Retrieved from https://www.upcounsel.com/best-state-to-start-a-trucking-company