...Starbucks 1.Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted the coffee market.? 2. What changed first—the Starbucks customer or the Starbucks Experience? Explain your response by discussing the principles of market targeting.? 3. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? 4. Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not? - Starbucks had made a goal and their initially segment was a Demographic segmentation -Starbuck or Schultz intentions to open 10,000 new stores in just four years and then push Starbucks to 40,000 stores. -In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries. Starbucks targeted the customer who fell in love with the Starbucks Experience who was: -Wealthier, better educated, and more professional than the average American. - More likely to be female than male. - Between the ages of 24 and 44. Starbucks customer changed first. There simply were not enough traditional customers around to fuel the kind of growth that Schultz sought. Starbucks became a less attractive place to hang out. The new breed of customer was less affluent, less educated, and less professional. As the customer profile evolved, the Starbucks Experience grew to mean something different. To the new breed of customer, it meant good coffee on the run. It was a place to meet and...
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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...STP template Instructions: What’s it for? To prepare for tutorial 2.When is it due? Bring it along to the tutorial 2.By whom? Do it as a group. If you do not get a chance to sit as a group, do it individually before the tutorial.Is it compulsory? No, the “Memo” was compulsory. However, having this completed will be a great help in preparing for your coursework and the time spent during the tutorial will be much more productive!Tips: fill in as much as you can. When filling up the template always think of the arguments you have to support your decisions (you will need to demonstrate your argumentative and critical skills in the coursework). | Segmentation Identify key segmentation variables and segment the market into three segments.Key segmentation variables (think through as many as possible):‘Umbrella’ variable (e.g, benefits sought, lifestyle, age, income etc.):Your identified three distinct segments (they shouldn’t overlap): * Segment 1: People with chronic back pain. - Segment 2:People over the age of 55 * Segment 3:People who are of mid-level income , they don’t want to perform surgery since expensive and want a substitute with is of same quality but at a more acceptable cost. | Targeting Evaluate market segments and choose the target segment.Market attractiveness criteria (segment size, segment growth, segment profitability etc.):Business strength criteria (resources, skills and competencies etc.):How would you rank the segments based on the...
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...1. Would consider Demographic segmentation, because she just starting her own small business, which is a sole priority ship. Which is for people working as an entrepreneur as herself. So she would have base some of it off of who like chocolate and who doesn’t also she need to know which chocolate people would buy more often, and where should she open her business. So that was demographic segmentation is when you want to know things about your consumer to get there interest in what you’re doing and if the location is right for that. So when you’re starting your own business you have to do a lot of things before you can even see progress from it. So it takes over time before you’re business start’s going unless you brand with another business which will be a b2b because that can get you off your feet with this business as well. 2. A segment would be concerted strategy because it focus on one aspect which is pet supply store. So it’s targeting animal’s owner to come to a store that can have deals for them that they will enjoy for their animals. Because the customer is always right. It also fall into value proposition, which give the customer a good perspective on they want as I proclaimed. They can also now in days buy their product online and walk into the store. 3. Micromarketing is basically when you have a specific item that you want and you’re interested in the product. People have lots of reason to be specific maybe for special occasion or just have a great day by...
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...egmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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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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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices...
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...Facebook on a cool offer (Rally Car Racing lessons? Okay, now we’re talking). Most marketing emails that somehow slip through my spam filter also go unopened and unread, as I search for the email I really want to see: that my fantasy football trade was accepted (Tony Romo really is a horrible fantasy QB). The mail, the inserts, the pop-ups, the emails — they have all become nuisances and background noise. So is marketing dead? I hope not, because I’m basically a marketing guy. But I think classic “segmentation” based marketing is broken. We are all individuals with unique needs. And as much as marketers try, it’s hard to put us into “catch all” segments or clusters. As a former airline marketing VP, I have been part of the problem: so feel free to blame me first. We used to celebrate a 0.25% response rate to inserts in our airline credit card mailings. Really? So 99.75% of the people didn’t care about our offer. A 1% click-through on a keyword ad gets celebrated, too. So why do marketers celebrate irrelevance? Because the math still pens out: you can make money in the short term on a 0.25% response rate or a 1% click through rate. But what’s the long term cost? More important, what’s the lost opportunity? For the past couple of...
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...Data Analytics: A Marketing Segmentation Case Study T. Evgeniou, INSEAD J. Niessing, INSEAD The Iterative Process Cycle Data Preparation & Exploration Analysis Goal of Analysis Performance Assessment Segmentation Methodology – A(nother) Process 1 2 3 4 5 6 Identify Business Issues Clarify Scope and Dimensions Generate and Refine Hypotheses Decide on Data to use / Collect Needed Data Build the Segmentation Framework Link to Marketing & Business Strategy A Segmentation (micro-)Process • Segmentation solution is created through a rigorous and iterative process Data Processing/ Factor Analysis Cluster analyses Review and refine Why Segmentation? • SEGMENTATION is a critical enabler to achieve business objectives and realize benefits • SEGMENTATION is critical to identify white spaces for new products/offerings • SEGMENTATION helps organizations to optimize their retention and acquisition strategy • SEGMENTATION is often used to optimize pricing across different products • SEGMENTATION enables organizations to become more customercentric • MARKET DYNAMICS make segmentation critical to business success. Questions You Might Hear… These are only some of the issues that clients may raise that clue you in to appropriateness of segmentation Growth & New Opportunities Market Structure Product Development Channel Deployment Resource Allocation Retention...
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...MARKET SEGMENTATION Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market. Required Elements: * No more than 2100 words * Include demographic, psychographic, geographic, and behavioral characteristics for the selected company. * A positioning statement for the company with careful consideration of their brand and strategy * Paper is consistent with APA guidelines. Introduction: The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the...
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...Chapter 09 Segmenting, Positioning, and Forecasting Markets Multiple Choice 1. The affluent Asian adult survey by Synovate __________ individuals according to their different attitudes, media exposures and habits, and product consumption patterns. a) categorizes b) ranks c) isolates d) distinguishes e) promote Ans: a Feedback: The individuals are categorized according to their different attitudes, media exposures and habits, and product consumption patterns. Page: 241 Learning Objective: 1 2. What can be concluded about the affluent Asian adults from the survey? a) Marketers should focus their marketing efforts on all groups b) Marketers may use different messages to sell the same products to same group c) Affluent adults in Asia are a homogenous group d) Marketers will not seek to reach out to them in the same way e) All of the above can be concluded from the survey Ans: d Feedback: Marketers will not treat them as one group, and will not seek to reach out to them in the same way. Page: 242 Learning Objective: 1 3. Which of the following statements about the affluent Asian adult is true? a) “Luxury Loyalists” tend to purchase more of the digital products such as laptops and MP3 players. b) “Executive Warriors” have the highest penetration for the Internet and usage of e-mail and instant messaging c) The “HUMmers,” hungry, urban, and mobile individuals, make up the largest group of affluent Asian adults d) The “Gimmes,” younger adults between...
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...Good morning, I’m Samantha Reid and this is my colleague Emily Harvey Fraser Coast Queensland, where nature comes alive… How many of you knew this was the brand slogan for the Fraser Coast before you commenced this subject?? Just a show of hands… So not a lot of you But more importantly does this draw you in? Does it capture you and make you want to visit the Fraser coast? Our question today… is it possible to have one brand slogan that is suitable for all of the different segments that Fraser coast tourism is targeting? NEXT SLIDE To really be able to answer this question we need to look at some important contributing factors. What is a slogan and why is it important to a destination brand? What is the current situation for Fraser Coast’s Tourism industry? What does the Fraser Coast have to offer? And Who are the market segments? NEXT SLIDE What is a brand slogan? “A Slogan is a short phrase that communicates descriptive or persuasive information about a brand” NEXT SLIDE Slogans are particularly important when it comes to differentiating a destination from its competitors. A destination slogan should be memorable and it should tie in with the overall positioning of the brand. Slogans can be an incredibly effective tool and when used correctly consumers will be able to identify a destination and its brand from the slogan. NEXT SLIDE This image is a really great way to illustrate the importance of a Slogan. Slogans are a shadow for the brand,...
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...Question 1 of 25 | 4.0/ 4.0 Points | Which of the following data are collected from consumers to develop a perceptual map for a particular product? | | | | A. A listing of all prospective brands and products | | | | | B. Managerial judgments about how consumers perceive products | | | | | C. Rank order of the ratings of a existing brand's preference relative to its competitors | | | | | D. Judgments of existing products or brands with respect to important attributes | | | | | E. Detailed explanations of why consumers make the choices they do | | Answer Key: D Feedback: What you chose is correct. | Question 2 of 25 | 4.0/ 4.0 Points | One marketing action that can be taken to sell a single product or service to multiple market segments is | | | | A. develop and produce another version of the product. | | | | | B. manufacture products that appeal to different markets. | | | | | C. develop separate promotional campaigns. | | | | | D. purchase another firm that has additional products that would appeal to multiple markets. | | | | | E. issue stock used for additional research and development for improved products. | | Answer Key: C Feedback: What you chose is correct. | Question 3 of 25 | 4.0/ 4.0 Points | The second step in segmenting and targeting markets is to | | | | A. group potential buyers into segments | | | | | B. group products to be sold into categories...
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...products and ideas. Appreciating this trend and looking beyond demographics into the behavior and interests of consumers would help marketers to tap into new opportunities and otherwise ignored consumer segments. | [Pick the date] [Pick the date] ------------------------------------------------- Trend Analysis – Post Demographic Consumerism Introduction “Post Demographic Consumerism” is identified as one of the consumer behavior trends for 2015 by the research agency Trend Watching. This paper attempts to study the trend with respect to the market changes in India, which is one of the biggest emerging economies. Post Demographic Consumerism Segmentation is the first step in marketing strategy where a broad market is divided into homogenous groups which are perceived to have similar needs and wants. The objective of segmentation is to identify homogenous groups which can be targeted with a marketing mix that would meet the group’s expectation. The different bases used for segmenting the...
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.... 1. The important factors in segmenting international markets: 1. Demographics: According to Bruwer and Li (2007, p 21) cited that in demographic segmentation, the market is divided into many variables; they are “age, gender, education, occupation, income, family size, generation, nationality and religion”. The reason why these demographic variables are so popular with the marketers is they are relevant to the customer’ needs and wants. Another reason is that they are easy to measure or estimate the size of market. It means demographic variables help the marketers narrow the general market into the specific groups and easy to identify the specific customer’ needs and wants base upon these variables. For example, Pepsi targets not only one object but also many types of objects such as children, teens, adults and senior with the different blend of ads and choice of media. In more details, the ads for teens are often dance – beat music, adventure and fast – paced cutting from scene to scene. In contrast, some ads for seniors are softer and more sentimental, exploring values of family connection and closing the generation gap by enjoying a common soft – drink – Pepsi. Furthermore, gender is one of the critical factors which attracts the marketers have to pay more attention on that because men and women have different attitudes and behave differently, based partly on genetic makeup and partly on socialization( ). In more details, gender differentiation has long...
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