Market segmentation

Product: Hydropower Electricity

Market: Nepalese and Indian Consumer

How market segmentation is done?

Market segmentation is the process of dividing market into different consumer groups which is
categorized by proper survey and analysis depending on their different needs. It involves following
process:

 Survey
 Analysis
 Segment
 Evaluation
 Selection

For propose of market segmentation I have taken electricity produced by hydropower as a sample
product. Electricity produced by the hydropower is dominantly consumed by Nepalese customer and
often excess energy is sold in the Indian market. Nepal Electricity Authority should segment the market
depending on the various available consumer groups. It does so by categorizing consumer group into
followings:

 Construction industries
 Factory
 Drinking and irrigation
 Entertainment business
 Business
 Transport
 Normal household

With the above mentioned segmented market group, Nepal Electricity must analyze their needs of
energy. Tariffs must be established based on their needs and timing of their energy consumption. With
the above market segmentation respective market groups are facilitated and energy management
process becomes easy.