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How can you identify gaps in the market for a new car model?

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If you are a car manufacturer or a marketer working for one, you might be wondering how to find out what kind of car model your potential customers are looking for. How can you identify gaps in the market that are not filled by your competitors or your existing products? How can you create a unique value proposition that will attract and retain customers? In this article, we will show you some steps and methods that you can use to conduct a market gap analysis for a new car model.

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1 Define your target market

The first step is to define your target market, or the segment of customers that you want to reach with your new car model. You need to have a clear idea of who they are, what they need, what they value, and what they expect from a car. You can use various sources of data, such as surveys, interviews, focus groups, online reviews, social media, or industry reports, to gather information about your target market. You can also create buyer personas, or fictional representations of your ideal customers, to help you understand their characteristics, preferences, and motivations.

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Kevin Ramirez Dirección, Estrategias, Proyectos, Finanzas.

Gerente general Ramirez Group
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La innovación en cualquier industria es la palanca de mantener el éxito y para ello es sumamente importante introducir al portafolio nuevas opciones que se adecuen las necesidades actuales de los consumidores. Integrar las necesidades del consumidor y normativas actuales es el gran reto al introducir un nuevo modelo de auto.

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Víctor Alberto Moncada Bolívar

Jefe de ventas en Full Cueros
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Según mi experiencia un nuevo producto debe de idearse conforme a las nuevas necesidades de los clientes a los que se apunta, si un modelo será un vehículo familiar, deberiamos evaluar que requiere una familia actualmente, a mi particularmente me gustaría que los vehiculos tengan una mejor adaptacion para llevar mascotas por ejemplo.

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2 Analyze your competitors

The next step is to analyze your competitors, or the other car manufacturers that offer similar or alternative products to your target market. You need to know who they are, what they offer, how they position themselves, and how they perform in the market. You can use tools such as SWOT analysis, Porter's five forces, or benchmarking to evaluate your competitors' strengths, weaknesses, opportunities, and threats. You can also compare their features, prices, quality, design, customer service, and reputation with your own.

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Kevin Ramirez Dirección, Estrategias, Proyectos, Finanzas.

Gerente general Ramirez Group
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Definitivamente los competidores generan una serie de información que marcan la pauta de las cosas que se deben y no hacer, sin embargo un modelo de auto ganador es aquel que no tiene competencia. La diferenciación debe ser percibida por el cliente en función a sastifacer una necesidad y brindar nuevo estatus que solamente este nuevo modelo de auto le pueda proporcionar.

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Víctor Alberto Moncada Bolívar

Jefe de ventas en Full Cueros
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Analizaría el motivo o motivos por lo que los clientes prefieren a mis competidores, identificar las razones ayudará a potenciar las fortalezas de nuestro producto.

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3 Identify customer problems and needs

The third step is to identify customer problems and needs, or the pain points and desires that your target market has regarding their current or desired car. You need to find out what problems they face, what needs they have, what goals they want to achieve, and what benefits they seek from a car. You can use methods such as problem statement, value proposition canvas, or jobs to be done to articulate your customer problems and needs. You can also ask open-ended questions, such as "What frustrates you about your current car?" or "What would make you switch to a different car?" to elicit feedback from your customers.

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Ryan Felder

ASU 2024 Alumni. Received Bachelor’s in Interdisciplinary Studies of Business and Economics.
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The first is to see is do you have a vehicle that is affordable for every person at any age? Can a recent college graduate who is paying on student loans, while landing their career, and trying to buy a home, afford a car and has all the latest technology in it to make their life easier? Do you have a vehicle that maybe is less technology for seniors who are on a tight budget who really want a car to go from A to B has a screen for navigation, and has Bluetooth? In my opinion we swung way over into this overly technological cars, and then forgot about having an easy, no advanced buttons for radios car that if you hear a song on the radio you can turn it up on the fly and not fighting the car to the radio screen.

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Víctor Alberto Moncada Bolívar

Jefe de ventas en Full Cueros
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Muchas veces, basamos la venta en convencer al cliente de comprar lo que para nosotros sería lo mas cómodo, pero cada cliente tiene una necesidad distinta y escucharlos ayuda a una mejor asesoría y a un correcto feedback para mejorar nuestro producto.

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4 Find market gaps

The fourth step is to find market gaps, or the unmet or underserved needs of your target market that are not addressed by your competitors or your existing products. You need to look for gaps in terms of features, benefits, quality, price, design, or customer experience that your customers want but cannot find in the market. You can use tools such as gap analysis, blue ocean strategy, or market opportunity analysis to identify and measure market gaps. You can also look for trends, changes, or innovations in the industry, technology, or customer behavior that create new market gaps.

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Joseph (Jo) Borrás

Beneficial electrification consultant and host of Electrek's Quick Charge and The Heavy Equipment Podcast. All opinions are my own.
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A better way to explore market gaps might be to examine the social media activity of your customers. A robust identity resolution feature in a schemaless CDP can help with this, and identify how many of your current Chevy Silverado pickup truck shoppers (for example) regularly interact with groups or images of older El Camino models. If there's a significant overlap, you could then run a campaign to that segment asking some closing questions to try to determine if that interest is purely nostalgic or something that's actionable. That's the difference between a New Beetle or PT Cruiser (success) and a Chevy SSR (let's say "less success").

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5 Generate ideas

The fifth step is to generate ideas, or the possible solutions that you can offer to fill the market gaps and satisfy your customer problems and needs. You need to brainstorm and evaluate different ideas for your new car model, such as adding, removing, or modifying features, benefits, quality, price, design, or customer experience. You can use techniques such as ideation, prototyping, or testing to generate and validate your ideas. You can also involve your customers, employees, or partners in the ideation process to get diverse and creative input.

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Joseph (Jo) Borrás

Beneficial electrification consultant and host of Electrek's Quick Charge and The Heavy Equipment Podcast. All opinions are my own.
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Layering a LLM over a comprehensive, holistic customer record could enable companies to ask natural-language style questions of digital twins, such as, "What feature is missing from [product x] that caused you to buy [product y]?" The answers, while statistically probable, may not be real — but may spark an idea for a new product or feature that would appeal to a meatspace audience.

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6 Develop your value proposition

The final step is to develop your value proposition, or the statement that summarizes how your new car model delivers value to your target market and differentiates you from your competitors. You need to craft a clear, concise, and compelling value proposition that communicates what your new car model does, who it is for, why it is better, and how it solves customer problems and needs. You can use frameworks such as value proposition statement, unique selling proposition, or elevator pitch to develop your value proposition. You can also test and refine your value proposition with your customers and stakeholders to ensure that it resonates with them.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Joseph (Jo) Borrás

Beneficial electrification consultant and host of Electrek's Quick Charge and The Heavy Equipment Podcast. All opinions are my own.
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Remember that truly great art — be it a painting, a movie, a chopper, or a GMC Syclone pickup — doesn't actually have to be any good to be loved. Be brave. If you believe in your idea enough to fight for it, chances are that someone else will believe in it enough to *pay* for it.

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How can you identify gaps in the market for a new car model?

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1 Define your target market

2 Analyze your competitors

3 Identify customer problems and needs

4 Find market gaps

5 Generate ideas

6 Develop your value proposition

7 Here’s what else to consider

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