• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Write a report advising Livelong how the understanding of market segmentation might help him improve his business prospects. Your report should include a discussion of appropriate segmentation criteria and provide an example of how they might be used in t

Extracts from this document...

Introduction

Question 2: Write a report advising Livelong how the understanding of market segmentation might help him improve his business prospects. Your report should include a discussion of appropriate segmentation criteria and provide an example of how they might be used in the health food market. Definition: "A marketing technique that targets a group of customers with specific characteristics.'" Explanation: To market products effectively to consumers, market segmentation, gives a company the understanding of groups of customers having the same interests and needs: what are their priorities when selecting the same product? What are they primarily looking for in a product? This profiling of consumer groups helps the company to decide which set of customers it has the best opportunity to sell to most cost effectively, easily and competitively, so as to gain the biggest market share by positioning the same product in different ways to different consumer groups. ...read more.

Middle

Certain criteria have to be met to help target the right market segments & sell to them successfully, such as: * Viability of the segment: is the segmented consumer group presenting a good enough opportunity to actually be a profitable venture? This means that the identified segment should be large enough so that the kind of product they are most interested in can be produced cost-effectively to be sold at a good profit. If the segment is too small, the production cost of their preferred product will be too high; the sale prices will be higher and even if the consumer group likes the product, because of the fact that it has become out of their economic reach, they might not be so eager to buy it. This may not allow the producer to compete with other sellers of the same product, resulting in possible loss of market share. ...read more.

Conclusion

Therefore women could be a better segment than men to promote cereal based health foods like Good4U bars as a popular and preferred way to keep fit. * Socio-economic segmentation: It can be can assume that since the company is situated in the southern part of the country, where the economic conditions are better than the rest of the country, and the spending power of consumers is higher, Rufedge could target the high income level segment. Also, we have to acknowledge that people with low income level are not generally going to spend money on a posh thing like cereal bars, especially because being in the category of 'health foods' they are perceived to be expensive and people with low income would rather cook their breakfast at home from scratch. Their social class segmentation should be C2 and above. * Psychographic Segmentation: Since psychographic segmentation is related to interests and lifestyle, people with busy lifestyles and health related interests should be targeted because busy people like working mothers and people who actively participate in sports should be considered as a segment for Rufedge's products. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Ben Sherman Report

    were completed by 20 participants in Carnaby Street. The findings from the questionnaires were that most of them do not know Ben Sherman has a range of womenswear or any womenswear products. I also found that more than half of them love listening to the music in their spear time and want to be fashionable.

  2. 'Market Segmentation, Positioning and targeting for BMW & Jack Daniels'.

    that BMW does but on the other hand Alfa Romeo is renowned for being stylish and performance breed but unreliable car. The positioning of these companies and their brands has been built up over many years but BMW has stamped their mark upon the public in a positive way.

  1. Market Segmentation, Targeting and Contexts

    3 Family - One or more children 4 Late - Adults whose children have left home These four life cycle groups are then broken down further by a combination of occupation and/or income to produce 12 major SAGACITY groupings. Evidence suggests that SAGACITY is a powerful discriminator between consumer groups for a wide range of products and services.

  2. A formal report on market segmentation and future expansion in India for the Burger ...

    Burger King is a global fast food retailer, and deals with Geographic segmentation everyday. People in many countries have different eating habits and that's why Burger King adjusts its menus in each country it expands in. For instance, to satisfy the vegetarians, they produced vegetarian burgers and meals and in Israel they have two types of menus, kosher and non-kosher.

  1. In this assignment we are going to see the segmentation, targeting and positioning of ...

    creating and communicating a message that clearly establishes the company or brand in relation to competitors. Product Chosen: The product that I have chosen for this assignment is Toyota Land Cruiser 4.7 Litter VXR, Station Wagon, 8 Seater, Top of the Range Model.

  2. The concept of market segmentation , Propose segmentation criteria to be used of two ...

    * Cultural: Levis Strauss was founded in 1853 as it has a strong brand name from Levis original, which is producing good quality of jeans in addition to having a new market in Asia because of Japanese likes wearing fashion dressing, are either man or woman.

  1. ikea report

    With profits totalling to 14.8 billion euros(IKEA 2005) IKEA can be classed as a global and local success in many countries. However they must become confident as they are target to local and international competition. To overcome this they can use the environmental friendly processes as a marketing tool to attract new customers.

  2. United Cereal: Lora Brills Eurobrand Challenge

    However, the vertical communication is strong within each brand, and top managers are very involved in seemingly mundane brand decisions, such as advertising copy and label changes. With the special emphasis on the vertical communication, it is definitely a complex process to obtain the final approval for each single brand due to the high value attached.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work