Karma Automotive

Q.1. (a) Review the segmentation approaches listed in Figure 1 and identify which segmentation approach(es) make the most sense for Karma and why. Use research/data to support your answer. (25 points)

Figure 1: Segmentation Approaches

  • Geographic segmentation
  • Psychographic segmentation
  • Demographic segmentation
  • Behavioral segmentation

(b) Using segmentation approaches listed in Figure 1, develop a customer profile for Karma Automotive’s vehicles. (25)

Q.2. (a) Which of the following levels of segmentation (see Figure 2) is Karma Automotive currently employing? Use research to justify your answer. (25 points)

Figure 2: Levels of Segmentation

  • Full Market Coverage – serving all segments with all the products they may need
  • Mass Marketing – selling one product to all segments
  • Single-Segment Specialization – focus on niche market
  • Multiple Segment Specialization – akin to differentiated marketing
  • Individual Marketing – micro or one-to one marketing

(b) What recommendations would you make to the company going forward with regard to the levels of segmentation in Figure 2? Explain your answer and include any related risks/downsides associated with the recommendation. (25 points)

Q.3. Identify and explain in detail the current product life cycle stage for electric vehicles (overall and not just luxury electric vehicles). Use research/data to support or justify your answer. (25 points)

In developing your answer, you must discuss what is happening to product, pricing, promotion, and place/distribution (at the industry level) in the stage you identified. For instance, in the introduction stage, there are not many variations of the product. Similarly, you must discuss the state of competition and consumer adoption trends that are likely to be associated with the PLC stage you identified.

Q.4. Which factors listed in Figure 3 below are likely to help accelerate, and which are likely to hinder, adoption of Karma’s vehicles? Explain your rationale. Use research to support your answer. (25 points)

Figure 3: Innovation Characteristics

  • Relative advantage
  • Compatibility
  • Complexity
  • Divisibility/Trialability
  • Communicability