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hummer corporation analysis
I am writing to you in regards to the Hummer's target market. According to AM General's market research , Hummer's market is divided into four categories: the realist, the discerner, the conqueror, and the adventurer. The realist considers Hummer for its practical purposes, and will therefore make use of the vehicle's off-road prowess. The discerner is a connoisseur for the finer things in life, who appreciates Hummer's status, but is unlikely to go off-roading. The conqueror is a successful person who wants people to know it, who appreciates Hummer for its exclusivity and attention grabbing looks. The fourth type of buyer is the adventurer, who wants to take the Hummer off-road. By analyzing the percentage of the population that has these qualities, I think that Hummer's U.S. target market segment is males between the ages of 25 and 64 who earn over $100,000 per year.
Hummer's target market segment cannot be very large because of the high price of the vehicle, which can be in excess of $90,000. Hummer must gear its marketing strategies towards this small group of individuals. Hummer's market segment consists of males between the ages of 25 and 44 who earn over $100,000 a year. This demographic group consists of "Generation X'ers" and some of the "Baby Boom" generation. These males are looking for specific vehicles that are geared towards luxury and status. According to 1999 census data , in the approximation of 40,698,000 males between the ages of 25 and 44, only 2,011,000 of them earn enough money to purchase a Hummer. This would give Hummer a market base of over 2 million consumers.
This market segment is growing because of the change in this base from 1998 to 1999. The number of males within this age group who earned over $100,000 was 1,730,000 in 1998. That reveals a growth rate of 16% in one year. Also, you can infer that the number of people in general who can afford a Hummer is increasing due to the low unemployment rate, and the steadily growing U.S. economy. I would think that Hummer's sales would continue to grow due to the increase of its market segment coupled with the fact that the company is preparing to release new models that may cater to a whole other marketing segment.
Cultural Trends, Attitudes, Values of Target Market
The outlook on the buying attitudes of Hummer's target market remains robust in the future. The demand for luxury items has been steadily growing for the past couple of years. With the existence of a bull market, and a steady increase in national prosperity, today's high-income individuals have a healthy demand for luxurious goods and services. The SUV market in general has been steadily increasing over the past five years. According to American Demographics , forecasters estimate that 49% of the new vehicle market will be that of light trucks in 2001, and light truck sales will be greater than that of car sales in 2002. Today's consumers stress safety over other attributes when buying vehicles, which show the increase in demand for SUV's, which are proven to b
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