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Segmentation

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Segments for Luxary Car Segment | Geographic | Demographic | Socio economic | Use benefits | Target Score | Segment 1 | Living in tier-1 cities | Age 40 - 50 years | Senior executives will income of 1 Cr or above | Maintaining the status of senior leadership, CEO, CXO standard. Need of best in class engineering to talk about. | 5.0 | Segment 2 | Living in urban areas | Age 30 - 50 years | Young ambitious businessman having income of 1 Crore and above. | Aspirations for high standard of living and maintaining social status. Need a feature rich car that can be used for business and leisure trip. | 5.45 | Segment 3 | Living in rural/semi urban areas | Age 25 -40 year | Section 1 landlords having NRI connections and good education level. | Aspirations for matching the social status at par with NRI relatives. Need Rugged car along with Luxary for rural roads. | 6.25 | Segment 4 | Living in Bombay | Age 25 - 40 year | Successful TV/Movie actors | Having a requirement of stylish expensive car to match the standards of their public image | 4.85 | Assumptions * Car is best in class engineering. * Car has best looks in luxury segment. Selected Segment attractiveness factors 1. Potential segment size 2. growth potential 3. Profit potential 4. Competitive intensity 5. Cyclicality Weighting segment attractiveness factors Segmemt attractiveness factors | Weight | Volume growth potential | 30 | Profit Potential | 25 | Potential segment size | 20 | Competitive intensity | 15 | Cyclicality | 10 | Total | 100 | Parameters and their scores for segment attractiveness factors | Parameters | Parameters | Parameters | Segment Attractiveness factors | High (10-7) | Medium (6-4) | Low (3-0) | Volume growth potential | Industry Avg + 3 % | Industry Avg | Industry Avg – 3% | Profitability | >20% | 10-20% | <20% | Segment Size | <Rs 5000 cr | 1000 cr – 5000cr | < 1000cr | Competitive Intensity | Low | Medium | High | Cyclicality | Low | Medium | High | Segment Attractiveness evaluation (Year 3) Attractiveness factors | Weight | Segment 1 | Segment 1 | Segment 2 | Segment 2 | Segment 3 | Segment 3 | Segment 4 | Segment 4 | | | Score | Weighted Score | Score | Weighted Score | Score | Weighted Score | Score | Weighted Score | Growth Potential | 30 | 3 | .9 | 5 | 1.5 | 7 | 2.1 | 3 | .9 | Profitability | 25 | 6 | 1.5 | 6 | 1.5 | 8 | 2.0 | 8 | 2.0 | Size | 20 | 3 | .6 | 6 | 1.2 | 4 | .8 | 3 | .6 | Competitive Intensity | 15 | 8 | 1.2 | 5 | .75 | 7 | 1.05 | 3 | .45 | Cyclicality | 10 | 8 | .8 | 5 | .5 | 3 | .3 | 9 | .9 | Target Score | 100 | | 5.0 | | 5.45 | | 6.25 | | 4.85 | Total Score = (Weight * Score)/100 Most Attractive Segment = Segment 3 Least Attractive Segment = Segment 4

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