Corveta Motors: Launching Into a Market With an Incumbent

Marketing
medium45 min0 submissions
BCG
Scenario

Corveta Motors is a mature-stage automotive business in Europe, preparing to launch a new product into an established category.

The category is dominated by an incumbent holding roughly 58% share. The addressable market is about €7415 M.

Candidate segments:

SegmentAddressable accountsShare expressing willingness to switch
Enterprise60961%
Mid-market3,64850%
SMB44,67413%

Constraints:

  • Planned list price: €6658 per account per year
  • Fully loaded cost of a field sales rep: €117 M per year
  • First-year launch budget: €26 M
  • The product is genuinely better on one dimension and worse on two

The founder wants to launch to all three segments simultaneously "to see what sticks".

Supporting data

market

tam
7415
incumbent share pct
58

segments

segmentaccountsswitch willingness pct
Enterprise60961
Mid-market364850
SMB4467413

economics

launch budget
26
loaded sales rep cost
117
list price per account
6658

derived hints

accounts per rep to break even
17573
Your task

Design the go-to-market. Your answer should provide:

  1. Analysis — which segment to enter first and why, sized with the numbers given.
  2. Risks — what your plan depends on, and what would make you change segment.
  3. Recommendation — a specific first segment, channel, price and success threshold.

State any assumptions you make.

Ready to move forward? Up next: Kirana Connect: Where Should the Acquisition Budget Go?Next question
How you'll be graded

100 points, 60% to pass.

  • positioning25
  • segmentation25
  • recommendation25
  • quantitative analysis25
Hint
Reveal suggested structure

Beachhead selection; switching motivation; GTM motion affordable at price point; staged expansion