Current Market Status
Target Markets and Brands
XYZ analyzed available market research data to identify target segments that would be profitable and fit with our strategy. As a result, we identified three initial target markets ? the Cost Cutter, Workhorse, and Traveler. Use patterns and demand data for these customer segments are shown in Appendix A.
Customers in the Cost Cutter segment desire an economical product ? essential, easy-to-use functions at a low price. We have developed the Charger brand for this market ? a nicely equipped model, yet the lowest priced in the industry. Our efforts to provide an affordable model have awarded us 69 percent of the market share for this segment. This market is attractive because of its high demand and high margins. The cash flows we are generating from the Cost Cutter market are helping us fund manufacturing and sales office expansion.
Customers in the Workhorse market are looking for more functionality than the Cost Cutter market, but still at a reasonable price. Like the Cost Cutter, this market offers high demand and even higher margins. We have designed the Trojan model for this market. This product has more functionality than the Charger model, and also carries a higher price tag. However, the Trojan is still one of the lowest priced models in the industry. We currently hold the second largest market share for this segment, at 30 percent.
Traveler customers are looking for a portable computer with mid-range functionality and price, similar to the Workhorse. Even though the demand in the Traveler market is significantly lower than the other markets we are competing in, we felt it was a good niche market for XYZ because customer wants are similar to Workhorse customers. We designed the N ...