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assignment 3 Case D9 Garrett Ozar

assignment 3 Case D9 Garrett Ozar - more fuel efficient and...

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Garrett Ozar HW Assignment #3 October 19, 2007 Professor Russell Case D-9 The Hummer: A Segmentation Challenge 1. The market segments for Hummer are a) the H1, H2, and H3 for consumers. The H1 is the least practical; however, still gets demand for its uniqueness and social status. The H2 and H3 are less expensive, more practical, and have a much higher demand in the consumer market. H2s are marketed towards people who are entrepreneurs or self-employed. H3s are marketed towards family’s who are in the mid-size SUV market. B) Hummer’s business-to-business market consists of selling their H1 vehicle to the Government for use in the military. 2. The Pros of the market segments are that most of the consumers who purchase Hummers are not conscious about gas mileage and therefore are not going to typically demand that Hummer reengineers their vehicle to have better gas mileage. The cons are that there is a fad that includes vehicles that are quiet and
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Unformatted text preview: more fuel efficient and that cannot help the sales of Hummers at all. General Motors should target the rural household segment with their H2 and H3 because it does get a little better gas mileage, it is safe, and can carry around the whole family. 3. GM’s marketing mix and positioning would differ for its consumer market segment and for its business-to-business market segment, in that with its consumer market segment they would promote its safety, design, and social status, while they would promote its durability, size, and towing capacity to its business-to-business market segments. If they adjusted their H2s or H3s to have better gas mileage they would be able to increase their prices drastically in the consumer market. Who would want to buy any other SUV when the Hummer drives better, would have the same or better gas mileage, same or better towing capacity, and a higher social image?...
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