...Marketing Management Group Project: Chick-fil-A Market Segments BUSI 520 – Strategic Marketing Management Trina Tindal Allen Liberty University . Market Segments Kotler and Keller define market segments as “a group of customers who share a similar set of needs and wants. They also identify the major segmentation variables as geographic, demographic, psychographic and behavioral segmentation” (Kotler & Keller, 2012, p. 214) There is a real need for market segmentation because different customers have different needs, and it is rarely possible to satisfy all customers by treating them alike. When you target a market, you are basically recognizing the fact that customers are different and have different needs. A respectable market segmentation will result in segment members that are as similar as possible within the segment, and as different as possible between segments. Variables to Segment Target Markets Geographic Segments Examples of geographic variables are regions, which include continent, country state and even neighborhoods; next there is size of metropolitan area segmented by population; then there is the density of the population, meaning is the target urban, suburban or rural; lastly, climate could be another segment. Demographic Segments Some demographic segmentation variables include: age, gender, generation, family size, income, occupation, education, ethnicity, and religion to name a few. Jayson DeMers, a Forbes Magazine contributor...
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...Company’s Market Segments NIKE, INC Dessey Holm MBA6012 u03a1 Due: June 08, 2014 Email: des69sey@hotmail.com Professor: Ted Framan Market segments is a division of a market into smaller submarkets based on characteristics that are in common. For example, there is a segment for noncustomers, customers, level of service, behaviors, and demographics to name a few divisions. In the marketing world, dividing into smaller segments allows businesses to develop a marketing strategy tailored to the individual segments based on their needs and wants. (Marshall & Johnston, 2010) To uncover which market segments that show most promise for the purpose of development is the goal of target marketing. “The decision to invest in developing a segment into a target market represents an important turning point in the marketing planning process because, from this point forward, the direction of a firm’s marketing strategies and related programs are set.” (Marshall & Johnston, 2010) Nike’s Internal Environment of Marketing A company’s internal environment in terms of marketing can include but not limited to marketing capabilities, manufacturing abilities, and distribution capacities. It involves most functions and capabilities inside of the company. To influence positive change within Nike Inc.’s supply chain, they use a variety of approaches. By building an empowered and equitable workforce they hope to add change that is beneficial to the company. “Today we’re in the...
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...Why Segment a Market? There are several important reasons why businesses should attempt to segment their markets carefully. These are summarized below Better matching of customer needs Customer needs differ. Creating separate offers for each segment makes sense and provides customers with a better solution Enhanced profits for business Customers have different disposable income. They are, therefore, different in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits Better opportunities for growth Market segmentation can build sales. For example, customers can be encouraged to "trade-up" after being introduced to a particular product with an introductory, lower-priced product Retain more customers Customer circumstances change, for example they grow older, form families, change jobs or get promoted, change their buying patterns. By marketing products that appeal to customers at different stages of their life ("life-cycle"), a business can retain customers who might otherwise switch to competing products and brands Target marketing communications Businesses need to deliver their marketing message to a relevant customer audience. If the target market is too broad, there is a strong risk that (1) the key customers are missed and (2) the cost of communicating to customers becomes too high / unprofitable. By segmenting markets, the target customer can be reached more often and at lower cost Gain share...
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...Confirming Proofs Chapter 3 Strategic Market Segmentation Segmenting markets is a foundation for superior performance. Understanding how buyers’ needs and wants vary is essential to designing effective marketing strategies. Effective approaches to segmenting markets may be one of the most critical factors in developing and implementing market-driven strategy. The need to improve an organization’s understanding of buyers is escalating because of buyers’ demands for uniqueness and the growing array of technology available to generate products to satisfy these demands. Companies are responding to the opportunities to provide unique customer value with products ranging from customized phone pagers for business users to self-designed, individualized greeting cards for consumers. Indeed, McKinsey research underlines the weakness of thinking about markets only in general terms—talking of market trends, growth markets, mass markets, declining markets, and so on—and collecting information that describes only broad trends, where differences within markets are averaged-out. They point to the identification of opportunities from a deeper understanding of markets at a “granular” level. Market fragmentation and increasing granularity characterize a growing number of markets. The compelling logic of market granularity is that effective strategy can emerge only from a much finer understanding of market segments, their needs, and the capabilities required to serve them.1 Best Buy provides an interesting...
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...Create the Value: Market Segmentation Analysis and a Value Proposition Brief Description of the Concept There is a need in the Celebration, Florida area to provide full service pet care for those residents who want the best for their pets. Currently this location of the Dogtopia franchise offers a wide range of services from dog day care, overnight care, minimal grooming, and partnership training services. In order to appeal to the pet lovers who are too busy or feel as though they cannot drive their pet to daycare because of time, work schedule, etc. This new service would allow those pet owners, who want the best for their family member, to go to work without worrying whether their pet will need to go to day care that day. Dogtopia will take the Pet Taxi market and bring it in-house for its loyal customers who want to best for their pets. Potential Market Segment There are several trends in todays society that create many opportunities for Dogtopia, Lake Buena Vista. One trend is that many households in American no longer see their pets as just important or just special, but they see them as part of their core family unit or as family members. This is not only reflected in how much is being spent, in the area of more than and estimated $60 billion dollars in 2015, but in the products and services in which they are spending this money. (American Pet Products Association, 2015). A market survey, conducted of vacation seekers to the Walt Disney World Florida parks, as...
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...along many different stages of the customer engagement cycle through search engine marketing(SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.0 strategies. In 2008 The New York Times, working with comScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2,500 times on average per user per month. Our group presentation title is targeting marketing segments and communities. The overview of this topic are Segmentation and targeting overview, marketing segmentations bases and variables, targeting online customers and targeting communities on the Internet....
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...Case Report-1: The Fashion Channel 1) What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Ad Revenue Calculator | | | | | | | Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | TV HH | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | Average Rating | 1,0% | 1,0% | 1,2% | 0,8% | 1,2% | Average Viewers (Thousand) | 1100 | 1100 | 1320 | 880 | 1320 | Average CPM* | $2,00 | $2,00 | $1,80 | $3,50 | $2,50 | Average Revenue/Ad Minute** | $2.200 | $2.200 | $2.376 | $3.080 | $3.300 | Ad Minutes/Week | 2016 | 2016 | 2016 | 2016 | 2016 | Weeks/Year | 52 | 52 | 52 | 52 | 52 | Ad Revenue/Year | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Incremental Programming Expense | | $ - | $ - | $ 15.000.000 | $ 20.000.000 | | 2006 Actual | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | Exhibit 5: Financials | | | | | | Revenue | | | | | | Ad Sales | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Affiliate Fees | $80.000.000 | $81.600.000 | $81.600.000 | $81.600.000 | $81.600.000 | Total Revenue | $310.630.400 | $312.230.400 | $330.680.832 | $404.482.560 | $427.545.600 | | | | | | | Expenses | | | | | | Cost of Operations | $70.000.000...
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...caters to the three major segments of the power tools business namely, Industrial, Tradesmen, and Consumer. D&B’s market share is almost the same as Milwaukee and Makita in the Industrial and Consumer segment but with regards to the Tradesmen segment, B&D is behind. Despite its major presence in the industry, it faces a problem in the Tradesmen segment which only holds about a 9% share. This problem has been caused by a bad perception of the tradespeople regarding B&D due to its expansion into the Consumer segment shown by its successful Dustbuster® hand-held vacuum. D&B’s expansion to the Consumer segment has proved to be successful but it has also affected D&B’s image with the tradesmen who worked on residential construction. One tradesman stated, “. . . Black & Decker makes a good popcorn popper, and my wife just loves her Dustbuster, but I’m out here trying to make a living. . .” Tradesmen such as, electricians, plumbers, framers, roofers and etc are workers who are expected to show up to work with their own tools and this segment usually purchase their tools from home centers; and they regularly purchase tools for replacement basing their choices on conversations between co-workers at the job site. The fact that the households of these tradesmen use D&B as house appliances makes them think that D&B products won’t hold up in the work place making them choose other brands that focused more on the tradesmen segment. D&B looked for...
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...BizLabs – Student Manual Business Strategy Simulation Table of Contents 1 INTRODUCTION ................................................................................................................................................ 4 1.1 COMPANY DEPARTMENTS ......................................................................................................................... 4 1.1.1 RESEARCH & DEVELOPMENT (R&D) ........................................................................................................................ 4 1.1.2 MARKETING ..................................................................................................................................................................... 4 1.1.3 PRODUCTION ................................................................................................................................................................... 4 1.1.4 FINANCE ........................................................................................................................................................................... 4 1.1.5 HUMAN RESOURCES ........................................................................................................................................................
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...because it directly relates to those who will buy the data plans and ultimately use the product. It’s important to identify these segments and do their own marketing to help promote the use of the services to increase revenues. If they don’t get end user to use it telecom companies will drop them as the value to both the consumer and the telecom will not be profitable. 2. Sara : Married 42 has kids works part time, not tech savey, needs the technology to be easy to use. Her key features tend to put her into segment 1 Steve: 27 single late adopter of technology convenience is important to him thus most likely fits into segment 4 as he doesn’t have the newest technology and his adoption is slower. Regina most likely fits into segment 3 as value for the computer is quite high and she disagrees highly with q1, she also would search for the best price when looking to buy as she is younger and does not necessarily have the disposable income to upgrade. The advantage to doing both the qualitative and quantitative data is they both may show different types of customers you may not have originally thought of. Qualitative data really shows you who a person is and what they do however quantitative data substantiates the qualitative or turns it on its head because it is what the consumer perceives. Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 yes they seem very interested and have higher responses to wanting to use the service no They have a very low...
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...Myntra.com has very clearly sorted the information element on its sight, where the each segment has been covered very clearly in its landing page or home page. This covers a large portion of the information that a customer would look for while shopping online. Myntra has covered from the most basic information to more complex information that advanced customers would look for. The below are listed as basic information 1) Information on apparels based on gender 2) Information on discounts 3) Information on sale The more advanced information like 1) Designer ware 2) Beauty tips 3) Fashion trends 4) Information on designers 5) Information on new launches from brands It also carries information on all that the customer would want to know on what are the current trends. The information on the site is elaborate with regard to the fashion and apparel, and one more advantage of the information on Myntra is that it is much sorted and the customer does not have to look for in sub pages. This makes the experience on Myntra easy to navigate and a pleasure. It also covers information on shipping, tracking the consignment, cancellation and returns Price Like all other .com organizations the price is very clearly displayed on Myntra for each and every product and if compared to the market it is competitive. The price range displayed is vast which gives every segment an opportunity to feel as part of the site. This is indicated by the presence of products...
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...raise the debt-to-capital ratio to 55% to 60%. If they leave the problem unaddressed, they might risk bankruptcy in the future. Analysis: Both of Champion and Cameron Iron Works were in related industries, automotive and petroleum equipment, which were profitable businesses. Cooper Industries was already doing those two businesses. For the opportunities identified in the case have to do with the purchase of Champion and Cameron Iron Works, both of them have a strategic fit with Cooper Industries’ long-term plans. For example, Champion has a poor management, old technology, and failures at diversification. But Cooper Industries is good at this field. Cameron Iron Works had a biggest Compression and Energy Business Segment until 1981. But it was the smallest segment of Cooper Industries. Moreover, Cameron Iron Works is a strong competitor of Cooper Industries. By buying its Cameron Iron Works, Cooper Industries would only have major competitor. Also, it would help Cooper Industries to manage its Five Forces, such as avoids high entry barriers and eliminates a competitor. Recommendation: In my point of view, Cooper Industries should buy both Champion and Cameron Iron Works. First of all, Cooper...
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...ISSUES TO BE ADDRESSED How would you interpret the consumer and market data if you were Dana Wheeler? 1. According to the data presented, The Fashion Channel (TFC) was the first TV channel to offer fashion TV shows, reaching 80 million viewers in the USA, initially giving the company an advantage as the original leader in the market. However, now the company is facing tough competition: “Fashion Today” on Lifetime and “Fashion Tonight” on CNN. At the moment this new competition arose, TFC did not have any plan for strategic segmentation or market positioning. The demographic data shows that 61% of the total audience for The Fashion Channel is comprised of women between 35-54 years old, similar to CNN’s audience. However, the Lifetime audience is 63% women between 18-34 years old; that means that TFC has older viewers than Lifetime. Another interesting figure is that CNN has the greater number of men with 45%, mostly between 35-40 years old. Given these figures, it’s clear that Dana Wheeler is focusing on attracting a younger segment of women to TFC, competing directly with Lifetime. She is not interested in reaching the male segment. TFC dedicates more broadcast time to fashion programming than any other network. However, TFC’s fashion programs rank lower in the ratings than its competitors’ shows. That negatively affects TFC because lower-rated shows are less attractive to advertisers, resulting in lower income from commercials. According to a study conducted by GFE...
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...to the case study, Dana Wheeler can invest in one of the following 3 scenarios to generate better output for ‘The Fashion Channel’ (TFC): Scenario1: Broad appeal to a cross segment of Fashionistas, Planner & Shoppers and Situationalists Advantages: Investing in marketing and advertisement campaign for new target segment, will lead to increase in the rating from 1.0 to 1.2 and also increase in average viewers. Disadvantages: Since there is no real change in viewers’ type and programming, the CPM will drop by 10% or more and competitors will continue taking its market share. Scenario2: Focus on Fashionistas segment Advantages: This segment has the highest interest in fashion and is strong in the highly valued 18-34 female demographic, which will lead to increase in CPM. Disadvantages: Fashionistas is the smallest segment in four clusters .Require spending of additional $15million per year on programming to attract and retain interest of this segment. Scenario3: Focus on both Fashionistas plus Shoppers & Planners clusters Advantages: Dual-targeting will ensure the average viewers and rating. It is expected that rating will grow to 1.2 with a potential CPM of $2.50 Disadvantages: Require spending of additional $20million to ensure there were selections aimed at both segments. Recommendations: Observing the advantages and disadvantages of the three options, Scenario 3 looks to be the most appropriate option. Firstly, since the Fashionistas are one...
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...Market Segmentation of Kwality Walls Cornetto HUL had entered the ice-cream market through acquisitions of approximately 150 crores. It acquired Dollops from Cadbury’s in 1993 while it bought Kwality and Milkfood in 1995. Since Amul has entered into the ice-cream market, Walls has lost a huge market share to Amul. To again gain the lost market share, HUL has modified their market segmentation. On the basis of Density, it has segmented Indian market into Urban and rural area. It has decided to focus only on the urban segment specifically the top 6 metros of India. Over the years, it has expanded to the top 30 cities. The philosophy behind this decision is that the top 30 cities has 70% of total ice-cream consumers in India, i.e. the 30:70 principle. Kwality walls just want to increase the consumption of ice-creams in the markets in which they are present rather than entering into new market. HUL has also segmented the market based on demographics into three categories: Kids, Teenagers and Families. Cornetto as a brand Is targeted at teenagers while Paddle pop is for kids while red tub is for families. This kind of segmentation has allowed to create more consumption opportunity for different segments. For e.g. teenage hangouts for promotion of Cornetto. This segmentation also allows pricing based differentiation for the three segments. Paddle pop is sold at Rs.5 to Rs. 10, Cornetto for youth is priced between Rs. 20 and Rs. 30 while the family pack ice-creams are priced between...
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