SECTION 1: MARKETING SEGMENTATION

Its fast, it's efficient, you don't need a license for it and your suit won't get wrinkled when you ride it as you do not have to sit. These are some of the reasons cited by electric scooter riders (also called E-scooterists), who vote their ride as the coolest mode of transport even in the peak of UAE summers. As the sight of people using electric scooters is becoming increasingly common in the city, we find out why this ride has become a rage even during the summers.

Task: Keeping in mind bases of segmentation, segment the market for e-scooters in UAE? Which segment will you target and why? Bases of Segmentation: Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation

SECTION 2: PROFITABILITY OF THE TARGET MARKET

- For the selected segment, estimate the following

o Selling price per unit o Number of units that can be sold o Variable cost per unit and total variable cost o Gross profit o Operating expenses (break down into components) o Interest expenses (if relevant) o Net income

- Estimate the fixed cost for your product. Compute breakeven point in terms of unit sales and Dirham sales. Interpret your results - Set a target profit for your company and compute unit sales and Dirham sales for the set target.

- Assume, to serve the identified segment, you launch a new company and invest your savings in the company (you may use the option of borrowing a part of the required investment). Also assume a part of the sales will be credit sales and a part of purchases will be credit purchases. Construct balance sheet for the company after one year of operations.