Segmentation

Segmentation, targeting and positioning
In the current economic situation, having a well-defined target market is most important ever. Definition of target market is a specific group of potential people who are willing to purchase for which business position its product and service. Target market involves the process of breaking down a large market into smaller or sub segments which are then focus on the target potential markets. It becomes easier and enables the marketers to be more effective in setting the price, promotion, product and place which are the main components of marketing mix by focusing on all marketing activities through the target market. In addition, target market can be broken down into few segments which are demographic, geographic, psychographic, and behaviors. The first target market strategy that Perodua uses is differentiated marketing. Differentiated markets are chosen from a number of market segments and designed for different marketing mixes in each market segment. (By Pride.et.al, 2007).
Perodua uses different segmentation to attract different consumers. Besides that, the target market strategy of Perodua is by using concentrated marketing. There are few segments which will be selected by the Perodua and a marketing mix for these few segments will be proposed (By Pride.et.al, 2007). Thus, Perodua aims to use the concentrated marketing strategy to attract large portion of once section while controlling the production costs. Moreover, Perodua also uses undifferentiated marketing as their last target market strategy. They use the marketing mix which product, place, promotion and price are the organization at the whole market. On the other hand, the organization chooses to mass market to avoid other segments from existing, (By Pride.et.al, 2007). Demographic segmentation is based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
First of all, Perodua uses demographic segmentation approach to determine their potential target. Perodua is specifically targeting youngster Y and old folks. The range of age is between 18 to 24 years old and 55 to 64 years old.”What’s Up, Graduates!” campaign is specifically designed to attract those people who are undergraduates and graduate students to purchase Perodua vehicles. Most of the youngsters will purchase Perodua Axia as their first car, it is because they don’t have a strong financial support but they wish to get car with sporty design and modern features which they are able to afford. Perodua Axia is the cheapest car made from Perodua which starts from RM24, 600. Moreover, the second target age range is the old folks. (It is because they children are grown up, they children may be busy with their life and cannot always be by their sides. They are willing to choose a car which is small and economical because it is easy to drive around the town.
Besides that, Perodua Demographic of Perodua buyers are 50:50 between Malays and the Non-Malays. Company is targeting people of different religions like Malay, Chinese, India, and so on. The next is Psychographic Segmentation. The definition of Psychographic segmentation is to understand the consumer’s attitude, opinion and lifestyle. It considers a group of consumers who buy the product based on their AIO. For Perodua Axia, they use the tradition-oriented consumer lifestyle to target their potential customers. They are also price-conscious. They are rational and they won’t purchase the product without consideration. Moreover, this type of consumer mostly will purchase the cheapest product and count they budget wisely. They prefer to buy domestic brand, because domestic brand are much cheaper than foreign brand. Perodua Axia is the most affordable car with four-star rating and first Energy Efficient Vehicle (EEV) car. The price of Perodua Axia is from RM 24, 600 to RM 42, 530.
The last one is behavioral segmentation. Behavioral segmentation is based on occasions, usage, loyalty and benefits sought. Behavioral segmentation is breaking down the consumers into groups based on the way they respond, use and understanding of the product. Perodua builds their image by 70 to 80 % of Perodua buyers are either first time car buyers or they are looking to buy a Perodua as a 2nd or 3rd car, it is not to replace an existing car. Datuk Aminar say, Perodua would not lose sight of quality and customer service, this two areas are very important to build the customer loyalty. Perodua makes an effort to understand how the customer experience value to build the customer loyalty. The loyalty customer are willing to try the new product like Perodua Axia. Moreover, for those who are eco-friendly users and economical users, Perodua Axia is qualified as an Energy Efficient Vehicle (EEV) under the Malaysia National Automotive Policy Conditional, so customer can use less fuel to travel more. Perodua offers a car at a low price without compromising on features and more importantly, quality and safety.
Positioning is the process of designing a brand, so it can occupy a distinct and valued place in the consumer’s mind and communicating this distinction to the consumer. Perceptual space created in the mindset of consumers that encompasses all possible brands they might consider purchasing, and giving the brand a prominent position in that space when compared with other The tagline of Perodua Axia is “Your Smart Move”, Perodua Axia represents Perodua’s efforts in becoming globally competitive in terms of styling, quality, features and price. The tagline of Perodua also show that this car is a smart buy. Perodua Axia can be characterized by 4 key elements, which are environmentally friendly, easy driving, extra spacious for a compact vehicle and economical in terms of the overall cost of ownership.
Perodua Axia is the first car produced with modern design and environmentally-friendly new manufacturing plant; Perodua Global Manufacturing Sdn Bhd (PGMSB). Perodua Axia offer the first Energy Effective Vehicle (EEV) modal made by Malaysian company with support from Daihatsu Motor Company of Japan (DMC). Perodua president/CEO Datuk Aminar Rashid Salleh announced a better price positioning for all Axia variants during the launch by Deputy Prime Minister Tan Sri Muhyiddin Yassin. (By Ong Ee Seng, 2014) In addition, Perodua Axia can travel up to 21.6 km/l, spacious, packed with unique features and have a low cost of ownership. The package for every Malaysian with starting price from RM 24, 600 to RM 42, 530. It is a car of Japanese quality and features at a Malaysia price.