Approach to market segmentation

Value Seekers Get it right and leave it alone Hassle free Minimize total cost Value oriented products/operations $25,000 average size. An estimated 5,100 potential accounts estimated $118 million segment potential 45% resource allocation for NSC 2001 NSC business: $22 million from 124 customers at average price of $141/cwt 50% of total revenue 34-250A Bargain Hunters Leave it alone Low price shoppers Don’t differentiate among vendors $45,000 average size. An estimated 1,700 potential accounts $78 million segment potential 10% resource allocation for NSC 2001 NSC business: $7 million from 28 customers at average price of $106/cwt 15% of total revenue 34-467A Collaborators Value multi-tier relationships Open with information Want to build win-win relationships $55,000 average size. An estimated 900 potential accounts $50 million segment potential 30% resource allocation for NSC 2001 NSC business: $8 million from 22 customers at average pricing of $134/cwt 18% of total revenue 34-250A Leveragers Demand on-going full service & multi-tier relationships Centralized on price, purchasing Ability and power to leverage operational resources $115,000 average size. An estimated 300 potential accounts $34 million segment potential 15% resource allocation for NSC 2001 NSC business: $8 million from 44 customers at average pricing of $123/cwt 17% of total revenue 34-189A On-Demand Relationship with Vendors Ongoing Relationship with Vendors Customer’s Operational Philosophy