Market Analysis Summary
Mike’s Trucking has an opportunity to entrench its competitive position in the regional transportation market by selectively focusing its target market on the food industry. The company has already had experience in servicing such clients and it believes that there is a growing demand for reliable transportation solutions in this customer segment.
4.1 Market Segmentation
There are several potential customer segments that we will provide our transportation services to. Major customer segments include the food industry, PC and semiconductor manufacturers, and retailers. The chart and table below outline the current market size and growth estimates for these customer segments in Texas.
Large established companies in the afore-mentioned segments (especially in the food industry) have their own truck fleets, while smaller players outsource the transportation function. The latter vary in the scale of their operations, but have a steady demand for reliable transportation solutions. We will actively solicit such customers.
4.2 Target Market Segment Strategy
Mike’s Trucking will focus its marketing budget on a selected industry niche. A narrow-served market focus will help strengthen the company’s reputation of a reliable transportation services provider and will generate favourable referrals.
The major customer segment the company is focusing on is the food industry. Companies in this segment have varying needs, and Mike’s Trucking has already gained valuable experience serving such customers.
The company management believes that by increasing its truck fleet it can capture additional clients and provide better service to existing clients.