Karma Automotive Marketing Analysis: Segmentation, Customer Profile, and Product Life Cycle Stage

Core Marketing Concepts

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1. Demonstrate comprehension of core marketing concepts.

2. Apply knowledge of key marketing theoretical frameworks to actual business situations.   
3. Demonstrate business/market research, analysis, and presentation skills. 
This activity focuses on Karma Automotive. 
“Karma Automotive, founded in 2014, is a southern California based producer of luxury electric vehicles. Headquartered in Irvine, California with a production facility located in Moreno Valley, Karma sells vehicles via its dealer network in North America, Europe, South America and the Middle East.” (Source: Karma Automotive) 
Related URLs: 
 
1. Karma Automotive 
2. EV Sales Data-I – International Energy Agency (IEA) 
3. EV Sales Data -II  
4. Green Car Reports Article 
5. Car and Driver Article on Best Selling EVs 
 
In addition to the above URLs, you must conduct additional research to develop a deeper understanding of the trends in the electric vehicle industry. Use additional research to support your answers for each of the questions listed below. There are plenty of free sources on the web and in the university library, therefore, please don’t pay for any data/information. If a site asks for subscription or pay-per-read, please use an alternative source.  
 
Q.1. (a) Review the segmentation approaches listed in Figure 1 and identify which segmentation approach(es) make the most sense for Karma (current vehicles) and why. Use research/data to support your answer.
 
? Geographic segmentation 
? Psychographic segmentation 
? Demographic segmentation 
? Behavioral segmentation
(b) Using segmentation approaches listed in Figure 1, develop a customer profile for Karma Automotive’s current vehicles. (25) 
 
Hint: It is not sufficient to simply identify an age group (demographic) or personal/social interests (psychographic), rather you must fully develop the customer profile. The idea behind developing a customer profile is to help marketers understand the total   
 
3 This information is proprietary. Scanning, copying, website posting, or reproducing and sharing in any form is strictly prohibited. 
addressable as well as serviceable market. For instance, one potential segment/group interested in buying a smart/connected HVAC thermostat could be individuals who own a single family home and have the following additional traits/characteristics: 
 
Housing structure they live in has central heating and air-conditioning 
House they live in has Internet access 
House that is X-many square feet thereby needing lot of energy consumption 
Live in areas with higher utility expenditures or extreme temperatures 
Makes X-amount of income/year 
Interested in eco-friendly products or is environmentally conscious
Q.2. (a) Which of the following levels of segmentation is Karma Automotive currently employing? Use research to justify your answer.
 
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.
Answer format (for both parts): Answer each item separately. Use headings followed 
by an explanation. For instance, a heading would be the Level of Segmentation, followed by a passage.  
 
Q.3. Identify and explain in detail the product life cycle stage for electric vehicles (overall and not just luxury electric vehicles). Use research/data to support or justify your answer.