Topic: Draft of Business Problem and Literature Review

Motor company Maruti Suzuki India Ltd (MSIL), experienced a downfall in their growth rate in the Indian market, especially due to competition from other motor companies. MSIL’s focus has been the hatch segment of motors, generally called the A segment. MSIL’s cars are small, compact and more affordable than other types of cars. However, the size of the motor market MSIL dominated as compared to the cars sold in India dropped drastically (in annual sales) from 2008/09 to 2012/13.

Segmentation of cars in the motor industry is based on the view that everyone has their own specific need thus not every car is suitable for everyone. Market segmentation needs to focus on the needs of the consumer and not necessarily the class of the car. Market segmentation enforces the personality of the brand therefore MSIL is well known for A-segment cars in the Indian motor industry. Segmentation triggers recollection by consumers as they associate a certain product with a certain company. Market segmentation also allows a company to perform to its best because it is focusing on smaller segments as compared to all the segments at once leading to better quality products and consumer satisfaction.

Research Question: What are the applicable strategies for successful market segmentation in the motor industry?

The research will seek to determine the steps towards the attainment of successful market segmentation where aspects such as the focus market first in terms of types of cars for example sedans, SUV and hatchback cars. Also, an assessment of the company validation for example through surveys to develop an improved product more suitable to the target market will be researched as part of the strategies.

References

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