Marketing Environment: German Car Makers Face a New Breed of Consumers

Marketing Environment: German Car Makers Face a New Breed of Consumers

Environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments

Gone are the days when people considered the ownership of a car as a status symbol. The younger generation focuses on convenience and practicality associated with it. Car sharing allows them to use a car without spending a hefty amount on it. There is also a lot of flexibility associated as a car can be rented based on the needs of the consumer. It also spares the user of the maintenance costs associated and the inconvenience that is involved.

The values held by this emerging group of drivers that incline them toward car sharing programs

Pollution from private vehicles is a major source of air pollution. Delhi itself has over 65 lakh vehicles which were just 5.62 lakh in 1981. Major cities of the world are increasingly becoming more crowded as the dependence on private vehicles increases. This has lead to increase in traffic congestion and a reduced availability of parking space. There is an emerging group of young, well-educated, well-off drivers who are concerned about sustainability and pollution which constitute the target market for such car sharing programs.

How are automakers using car-sharing programs to cater to customers' component lifestyle?

Car sharing companies offer a lot of flexibility in usage to its customers including one way travel, the opportunity for customer to avoid late return fees by extending reservations. A lot of cars use start stop technology that is more suitable to urban driving.

Whether or not Indian automakers should follow suit

Yes, although a lot of awareness might be needed. Car is still considered a status symbol in many sections of the society and it may take a little while to gain more acceptance in such an environment. The target market can especially be college going students who can not afford a car but may need it for certain occasions. Housewives may also be targeted as their usage is limited and hence owning a care may be an unnecessary expenditure.