New Product Paper Research Example | Topics and Well Written Essays - 1250 words

New Product - Research Paper Example This paper proposes to launch a new car, Eco-Zen, which will be running on water-fuelled technology. It has been observed that segmentation of market and targeting potential consumers are essential prior to the launch of a new product. It helps in making marketing mix for a particular product (Wedel, Kamakura and Bà ¶ckenholt, â€Å"Marketing data, models and decisions†). There are generally four major market segmentation procedures such as: To segment the market for Eco-Zen, geographical and socioeconomic factors will be followed. Among geographical factors metropolitan areas have been considered and among socioeconomic factor income is the most important variable for this product. According to the researchers, certain section of consumers prefers to purchase a premium product as it is closely related to the status symbol. It also satisfies their high self-esteem (Goyat 45-55). Manufacturers are launching this product to promote green-marketing concept and this car will completely eliminate toxic emissions that are currently rampant in the existing automobile industry. So, market segmentation of the car is being done on the basis of geographical factors and marketers need to find regions where consumers are ready to experiment with new innovation. In the introductory phase Eco-Zen will be accepted in metropolitan areas only because these areas are already equipped with required physical infrastructures such as broad roads and highways. To be more specific and accurate about right customer, the market must be further segmented into socioeconomic categories such as their income and affordability in particular. Income is the most important determinant to decide whether the customer is able to purchase the car or not. This is the main reason why the purchasing power of consumers is important variable here. The product is going to follow a premium pricing strategy, so consumers in the higher income group