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Market Segmentation And Product Positioning Essay

1166 words - 5 pages

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 ...view middle of the document...

Vol.30, No. 18 – Monday, September 19, 2011).
As showed above, the Class 8 Truck Market has increased around 47.8% from 2010 to 2011. The table 2 shows the forecast for this market:
Class 8 Trucks - Production |
|
  | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
Tractor (Sleeper) | 120,166 | 127,280 | 135,460 | 105,574 | 88,846 | 105,479 |
Tractor (Daycab) | 65,469 | 82,826 | 92,926 | 72,238 | 60,296 | 71,242 |
Truck (Sleeper) | 1,225 | 1,636 | 2,211 | 1,701 | 1,472 | 1,806 |
Truck (Daycab) | 61,996 | 81,200 | 104,144 | 80,704 | 68,030 | 80,922 |
Total | 248,856 | 292,942 | 334,741 | 260,217 | 218,644 | 259,449 |
| | | | | | |
Table 2: Class 8 Trucks Production (Source: ACT N.A. Commercial Vehicle Outlook. Appendix B-7. September, 2011).
According to was presented in the tables 1 and 2, there is a huge potential for the Class 8 Truck market. With the exception of 2015, the numbers remain strong for this market. Also, there are other factors that support the investment on these customers:
* CSA (Carrier Safety Administration) enforcement will pressure truckers to maintain younger fleets for fear of litigation;
* CSA will pressure truckers to maintain younger fleets to attract drivers;
* The fleet is extremely old, and after years of deferred capex, is in need of upgrading.
So, based on these numbers and its statistics there are several opportunities that support WestportAxle to launch its 24K front axle in the U.S. market.

3. Conduct a SWOT (strengths, weakness, opportunities and treats) analysis for the company.
Strengths
WestportAxle has 25 years of experience in the front axle business and supply its products to several customers worldwide. Over all these years there is no record of recalls or other major quality problems which could jeopardize the company. WestportAxle has its Engineering / R&D department which is able to develop new products, offer solutions for its customers and help the customers with their developments. Also, WestportAxle provides all the support for its customers through well trained and dedicated employees in its customer service department.
Weakness
For some specific applications in the front axle market such as auxiliary axles (tag and pusher axles), it is possible to use fabricated axles. These axles are...

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