Segmentation and Targeting

Marketing Fundamentals

Preetam Sengupta

Full time MBA 2024

Prof. Florian Kraus

Date: 10.10.2023
Table of Contents

Report on Volvo FMX - Live Test Camopaign ......................................................................... 3

Annexure 1 (a) Advertisement Links (b) Citations (c) Tables ................................................ 4-5

Declaration of Authorship .......................................................................................................... 6

 Volvo FMX – Live Test Campaign

Volvo trucks launched a new heavy-duty model, the Volvo FMX in 2010 (Volvo, 2010). The

goal was to demonstrate the product in a real-life setting under “extreme” conditions so that the

ad reaches out to the primary decision makers while thrilling the audience, thereby creating a

memorable experience. Four video advertisements were designed for the campaign and released

on Youtube, backed by press release on news channels. Additionally, influencers and bloggers

were involved and provided with behind-the-scene content and technical info, to gain more

followers on Volvo’s Youtube channel via influencer publicity.

The product segmentation was based on industry, specifically construction. Since the product

is used in a hazardous environment, market requirements are “sustainability, cost efficiency,

safety and productivity” (AB Volvo 2023, 2020). Customers demographics can be divided into

two - individual truck owners and large business owners who are in construction. The product

advertisement was released in 2010, so it’s important to carry out market sizing for 2010. In

2010, the overall market grew by 35% YoY (exhibit Table 2). The main contributors were EU,

USA, India, Brazil and Japan. The approx. market share of Volvo is 13% in these markets

(exhibit Table 2). Thus, making this segment extremely attractive for Volvo.

The Ad addressed most of the market requirements and was relevant to their customer segment.

Each of the 4 videos demonstrated a value proposition of Volvo FMX. For example, first video

shows a shocking visual of President of Volvo trucks demonstrating robustness. The Technician

at Volvo, performs an extreme stunt to show ground clearance of the vehicle, a very important

parameter for the construction industry. The ad also featured Jean Claude Van Damme to show

the precision of Volvo’s Dynamic Steering in a strenuous situation. Volve deliberately tried to

startle the audience by violating the usual norms in advertising, thus creating a lasting effect.

The advertisement was a perfect fit for successfully capturing the emotional aspect that the

stakeholders face in this industry, creating a lasting effect in mind and helping with PR.
 Annexure 1

The advertisements links are given below in order:

1. https://www.youtube.com/watch?v=Jf_wKkV5dwQ

2. https://www.youtube.com/watch?v=AoVI2KzO-_Y

3. https://www.youtube.com/watch?v=7N87uxyDQT0

4. https://www.youtube.com/watch?v=M7FIvfx5J10

Citations

AB Volvo 2023. (2020, 02 27). Volvo Trucks takes its most robust construction truck into the
future with the new Volvo FMX. Retrieved from https://www.volvotrucks.com/en-
en/news-stories/press-releases/2020/feb/pr-200227-fmx.html

AB Volvo 2023. (2023). The Volvo Group Annual Report 2010. Retrieved from Volvogroup
Website: https://www.volvogroup.com/en/investors/reports-and-
presentations.1.html#filter1=volvo-group%3Aevents%2Ftopic-tags%2Fannual-
report&filter2=volvo-group%3Aevents%2Fyears%2F2010

Volvo. (2010, 04 19). Volvo Trucks launches new construction truck. Retrieved from
Volvogroup Website: https://www.volvogroup.com/en/news-and-
media/news/2010/apr/news-80981.html

Table 1
Table 2