Segmentation and Target Market Term Paper Example | Topics and Well Written Essays - 1500 words

Segmentation and Target Market - Term Paper Example The solar market of the United States is considerably large and is growing at a significant rate. The high cost of generating power along with high customer demand for energy and monetary inducements from federal government has accelerated the growth of solar market in the United States along with California. In the year 2009, almost 107,000 new solar heating, refrigeration and solar electric connections were implemented in the United States. In the long-run, the growth opportunity for this industry is measured to be quite bright. The market growth of solar products is a result of long-run extension of Investment Tax Credit (ITC) policy by the federal government (Sherwood, 2010). California is considered one of the most populated states in the United States. It is also a reputed state with respect to the use of solar system. In California, a significant development for utilization of solar energy can be observed in the recent times. It is expected that by 2030, solar energy will represent almost 16% to 18% of total state energy consumption. California has the highest solar insolation levels in the entire United States. In present days, California accounts for almost 61% of entire United States’ solar energy plans. The state hosts around 27 organizations which are involved with solar energy-related functions, comprising manufacturing of silicon cells, modules and solar chips among others. Therefore, these solar marketing trends represent favorable conditions for marketing the solar products of XYZ Company (Barber, 2003). In order to develop any marketing plan, the economic condition must be considered as it can determine the probability of success or failure of the product in the market. The Californian economy is driven by three major sectors which are technology, exports and hospitality. California was considered as the 9th biggest economy in the world in 2010. With respect to size, the Californian economy is learnt to be the second best in comparison to Brazil.