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Market Segmentation and Product Positioning

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Assignment 1: Market Segmentation and Product Positioning

Fabio Micheletto

Instructor: Dr. Jean Gordon

MKT500 – Marketing Management
10/23/2011

Assignment 1: Market Segmentation and Product Positioning

1. Identify the marketing segment for the product and explain why this segment was selected. 2.1 Company Description
WestportAxle Corporation is an U.S. based company with its headquarters in Brazil that focuses in manufacturing and assembly front axles for truck and buses (heavy and light duty). One of the products that WestportAxle plans to introduce in the U.S. market is the new 24K front axle for Trucks Class 8 Fire/Crash (picture 1). Company expects to use its 25 years of expertise to bring new alternatives for the Class 8 Truck builders offering a new product with better maneuverability that can be used in the narrow streets of big cities.

Picture 1 – 24K Front Axle

2.2 Market Segment
In the front axle business there is a specific market that we call “Niche Market”. This market is dedicated to special vehicle builders such as Fire Trucks, Garbage Trucks, Cement Mixers and so on. These trucks are common identified as “Class 8 Trucks”. The 24K front axle is largely used for these trucks, however there are some limitations. And one of these limitations is the maneuverability of the vehicle, sometimes is really difficult to maneuver the truck in the narrow streets. So, our product will fill this gap offering a 55 degrees wheel cut (the angle that the wheels can turn). Basically, the idea is to segment the customers Psychologically (they want and need this kind of product with this wheel cut) and Geographically (they have to use their vehicles in urban areas).

2. Discuss the target market and why these customers will be targeted.
The Class 8 Trucks market has been showing growth in the past years. In the table 1 it...

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