Target Market Segmentation - Doc

AUTONOMOUS VEHICLE
Table of Contents
Introduction.................................................................................................................... 2

Market.......................................................................................................................... 2
Competitors.................................................................................................................... 2
Product positioning.......................................................................................................... 3
Target market segmentation................................................................................................ 4
Decision-making process, involvement, and perceived risk.........................................................5
Internal influences............................................................................................................ 6
External influences........................................................................................................... 6
Marketing strategy........................................................................................................... 7
Conclusion..................................................................................................................... 9
References................................................................................................................... 10
1 | P a g e

Introduction
The purpose of this paper is to focus on the concept of highly automated and fully automated
vehicles and their impacts on the market of Australia. It will also review the influences of
consumer behavior on the promotion of these vehicles. Furthermore, this paper will discuss the
market size and market trends of Australia’s automotive market along with the product
positioning of these vehicles. Moreover, it will also explain the target market of the company and
how the company can market their products more efficiently to the targeted consumer of the
company.
Market
The market of highly automated and fully automated vehicles is growing at an exponential rate.
The market size of highly autonomous vehicles is slightly larger than the fully autonomous
vehicles. It is estimated that 30% of the vehicles sold in the next ten years will be autonomous
cars. The market share of Volkswagen will increase to a considerable level in the next five
years. Volkswagen will introduce self-driving car named Sedric on an international scale within
the next few years (En.volkswagen.com, 2018). Reduced energy consumption, increased lane
capacity, and real-time information is the three benefits that would drive the autonomous vehicle
market of Australia. Product lifecycle is defined as the sequence of steps from the introduction to
its decline. In the introductory phase, Volkswagen will promote the products offerings and
explain the uniqueness of their autonomous cars. In the growth phase, the company will try to
build their revenue by appealing to the wider audience of the country. In this stage, these self-
driving cars will be more popular. In the maturity phase, consumers will be interested in
purchasing these cars, thus neither resulting in decline or growth (Sun et al., 2017). As more
developed products will be available in the market, the market size of this cars will gradually
decrease.
Competitors
The top competitors of Volkswagen in Australia are Tesla, Toyota, and Hyundai. These
companies are the primary competitors of Volkswagen. Apple is one of the secondary
competitors of Volkswagen in the market for self-driving cars. Their analysis is given below:
2 | P a g e

Tesla
An American multinational corporation which has reputation for developing electric vehicles and
other futuristic vehicles including self-driving cars. This company is founded in 2003, and they
are considered to be one of the competitors of Volkswagen regarding self-driving cars (Hillier et
al., 2015). They have earned number 12 position in the market in terms of self-driving cars.
Toyota
It is a Japanese company founded in 1937, which manufactures cars with the name of the brand
Toyota. It owns some share in Subaru Corporation and other industries. It is one of the strongest
competition of Volkswagen in terms of self-driving cars. Toyota has enough resources to
develop these cars giving them a competitive advantage over the other companies.
Hyundai
Hyundai is a South Korean vehicle company established in 1967 and it is headquartered in Seoul,
South Korea. Aslan, Eon, Elantra, and Azera are some of the brands produced and sold all over
the world. They have decided to develop self-driving cars by the end of 2030. They are
considered to be one of the strongest competitors of Volkswagen in terms of level 5 autonomous
cars. Various research academies have identified that Hyundai is the tenth company in the
market to develop these cars.
Apple
Apple Inc. has been planning to develop self-driving cars for quite some time. They intend to
develop highly automated and fully automated self-driving cars within the next few years. They
have the resources to develop these cars successfully. They can be a tough competition to
Volkswagen’s self-driving cars. They are one of the topmost indirect competition to Volkswagen
and other automobile companies who are developing self-driving cars.
Product positioning
The self-driving cars from Volkswagen should be positioned in a way that it should reach a
majority of the targeted customers of the company. These cars are very easy to navigate and this
feature will appeal to technology-savvy consumers of the company, which constitutes their main
target group. The safety and reliability of these cars should be marketed to these customers so
3 | P a g e