Market Segmentation and Targeting Report

The provided report focuses on market segmentation and targeting, employing the STP (Segmentation, Targeting, Positioning) approach. It delves into the concept of entrepreneurial opportunity as a key factor for success and examines various market segmentation methods across different product categories. The report also touches on the significance of brand positioning in hotel marketing and discusses market trends in the beauty industry.

Entrepreneurial Opportunities

Customer Segmentation
In order to bring the new business plan on floor more effectively, it is very essential in
order to segregate the target market. It will assist in analysing the target market as per the
product which will assist in targeting the market efforts to the particular customer base only. In
order to discover the potential market and target them for the new cream Organix. The STP
approach is very effective marketing model (Wedel and Kamakura, 2012). As per this model,
through segmenting the target market, targeting the right customers and properly positioning the
product in market place will assist the business to grow faster.
Segmentation: It can be said that in order segmentation of the potential customer in the
market can be dome through 4 different ways, Demographic segmentation includes segmenting
the customers on the basis of age group, gender, job status or their disposable income. It can be
said that, as the new product is the skin care post-workout cream it can be more useful to the
make than female. But as the product is skin care oriented with organic ingredients, it will attract
the females of 18-35 age group. It can be said that, the disposable income of the customer should
be around 15000 pounds, who affords to go to gym (The STP Model of Marketing Segmentation,
Targeting, and Positioning , 2019). It can be said the segmentation on the basis of demographic
will assist in making write strategies to target a particular group. The second segmentation is on
the basis of geographic, the product will be launched in all over UK and the urban areas.
Psychographic segmenting is based on the habit, interest, lifestyle etc. The new product is for the
post-workout, thus it will target the customers who enjoying doing exercise and are font on the
skin-ageing care. Lastly, behavioural segmentation is based on cementing the customer as per
their behaviour.
Demographic Segmentation:
Job Status Income Gender Age Group
High school or college
students, working a minimum
wage job to be able to afford
our product
The income
of our
potential
customers
should be over
Women and
Males Both
It is because
they are highly
concern about
18-34 for Women and 18-45
for men.
It is because it is the age group
which are highly concern on
their beauty and skin.
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£15000 there skin.
Geographic Segmentation:
The product will be launched in UK, especially in the urban areas. However, people
living in rural areas could also acquire the product through online.
Psychographic Segmentation:
Belief Attitudes Lifestyle Interest
People who wants
organic products
because the products
are free from
chemicals, are better
for your health and
also for the
environment (The
Biggest Trends in the
Beauty Industry, 2019)
Men feel more
confident in their look,
which may be driving
down the usage of
skincare product.
Doing exercises, living
a healthy lifestyle,
organic product
consumers, who are
concerned about their
skin conditions
W omens are highly
interested in using the
innovative skin care
products.
Behavioural Segmentation:
Customer behaviour
When Where How Why
Sports meets The targeted
consumers are the
ones who identify
sports as a way of life.
Compared to the limit
climate outside, they
prefer the atmosphere
By identifying who are
not using daily organic
products, but they are
presenting interest in
our innovative organic
skin care product.
( The-ongoing-
To assist potential
customers, males and
females in order to
bring down the risk of
skin diseases caused
by tight gym clothes
intensive workouts,
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better in health and
fitness clubs or at
home.
evolution-of-organic
products, 2019)
etc.
Targeting: In this step, the company will decide the customer segment they want to target
for their new product Organix (Wilkinson, 2013). Undifferentiated targeting strategy will be used
by entrepreneur in regards to post-workout cream. Moreover, characteristics of selected target
group is similar to the large great extent. Thus, by preparing specific marketing mix business
entity will target selected group.
Positioning: Business entity will position post-workout cream on the basis of its quality
and organic aspects. This in turn helps in attracting more customers and influencing their
decisions regarding purchase. Moreover, now customers prefer to purchase and use organic
products rather than chemical based. Hence, in advertisement, by highlighting aspects pertaining
to organic ingredients distinct position n can be created by entrepreneur in relation to cream
namely Organix.
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TARGET SEGMENT BENEFIT and ATTRACTIVENESS:
In the globalisation and increasing industrialization era, it is foremost essential for any
company to grow and expand its business through introducing or launching a new product or
services, or through entering a new market line. In both the cases it is very essential for the
company to study the effectiveness of the market and its potential customer. As the company is
going to launch a new product Organix which is an organic skin care product for post-workout. It
is very essential to study the target market, segment and target attractiveness (Weinstein, 2013).
It is very essential to understand the needs and wants of the customer and market, it can be said
that it is the key which will leads the company and the new product to the sustainable success in
market.
It can be said that one of the best techniques which a company can use in order to
effectively target through market segmentation. It can be termed as essential process which
allows the business in order to recognise the specific demands of the customer fort the new
product. It can be said that it is the universal fact that no company can target everyone on earth
for their product and service (Loveridge and Mok, 2012). The company needs to in order to
target the right customer in the right market. It can be said that the market segmentation also
leads to increases the personalising marketing campaign in order to easier the advertising
processes through segmenting the customers. It can be said that, through dividing the target
customers in different segments, it leads to save the cost, time, resources and lot efforts of the
company. Market segmentation also assist in reducing the risk that is involved in individual
marketing campaign. By focusing more on key characteristics and prioritizing strategies based
on that information, there is a likely higher chance of success than creating a generic campaign
introduced across all segments of the market.
It can be said that, the company can divide its market and its customers on the basis of
gender, as the new product is natural and organics it can be preferred more by females, but it can
also be analysed that the male are more work-out oriented (Cleveland, Papadopoulos and
Laroche, 2011). Hence, the new product can target both male and female. Another segmentation
of the customer can be done on the basis of age group, it can be said that the new product can
target the age group which are more focused for the organic skin product and are physic oriented.
The age group of 18-35 can be preferred in order to target the customers. Another segmentation
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can be done on the basis of income, on the basis of income, customer can be targeted in high-
income group, mid-income group and the low income group (Weinstein and Cahill, 2014). The
new product of company can target both high income and mid-income group. The basic
segmentation of the market can be done through 4 different ways, Demographic segmentation
includes segmenting the customers on the basis of age group, gender, job status or their
disposable income. It can be said the segmentation on the basis of demographic will assist in
making write strategies to target a particular group. The second segmentation is on the basis of
geographic, the product will be launched in all over UK and the urban areas. Psychographic
segmenting is based on the habit, interest, lifestyle etc (Li, Z. and et.al., 2013). The new product
is for the post-workout, thus it will target the customers who enjoying doing exercise and are
font on the skin-ageing care. Lastly, behavioural segmentation is based on cementing the
customer as per their behaviour. As per the seven domain model, Target segment benefit and
attractiveness will assist in finding the current trend,, market growth and opportunity for future
growth as well.
REFLECTION
As per the above report, I have analysed the effectiveness of market segmentation for a
product to grow and become successful. As per the Gibbs model, I have learned the following
things:
Description: I have learned that the company is going to launch and introduced a new product
Organix. I have analysed it is a brilliant concept of developing a natural and organic cream
which is useful for the post-workout (Liu and et.al, 2019). As per the analysis, I found that he
effectiveness of launching in the market is more beneficial if the company segments the target
market.
Feeling: from the above discussion, I have felt that, in order to make the new product
successfully, the market should segments the target market on various basis. From the STP
approach I analysed that the product should consider the demographic and physocological
segmentation of customers.
Evaluation: from the above discussion I have evaluated that through adapting market
segmentation and market attractiveness company can achieve more personalised advertising
strategies in less possible time, efforts and cost (Khan and et.al., 2018).
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Analysis: from the above discussion I have learned the effectiveness of marketing and its
approach in order to launch a new product in market (Cooke, Freisthler and Mulholland, 2018). I
have analysed that the different way of segmentation the target market in consumer and
analysing the proper approach in order to sell them the product.
CONCLUSION
By summing up the above report, it can be concluded that Entrepreneurial opportunity is
an essential in order to get the success to the entrepreneurial. The report has concluded the basis
of market segmentation with the help of STP approach. Further, the report will analyse the
effectiveness of target segment benefit and attractiveness. At last, report has concluded a
reflection on the learning of the discussion.
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REFERENCES
Books and Journals
Cleveland, M., Papadopoulos, N. and Laroche, M., 2011. Identity, demographics, and consumer
behaviors: International market segmentation across product categories. International
Marketing Review. 28(3). pp.244-266.
Cooke, A., Freisthler, B. and Mulholland, E., 2018. Examination of market segmentation among
medical marijuana dispensaries. Substance use & misuse. 53(9). pp.1463-1467.
Khan, H. and et.al., 2018. The Use of Branding and Market Segmentation in Hotel Marketing: A
Conceptual Review. Journal of Tourism Intelligence and Smartness. 1(2). pp.12-23.
Li, Z. and et.al., 2013. Bicycle commuting market analysis using attitudinal market segmentation
approach. Transportation Research Part A: Policy and Practice, 47, pp.56-68.
Liu, J. and et.al, 2019. Market segmentation: A multiple criteria approach combining preference
analysis and segmentation decision. Omega. 83. pp.1-13.
Loveridge, R. and Mok, A. L., 2012. Theories of labour market segmentation: a critique.
Springer Science & Business Media.
Wedel, M. and Kamakura, W. A., 2012. Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media.
Weinstein, A. and Cahill, D. J., 2014. Lifestyle market segmentation. Routledge.
Weinstein, A., 2013. Handbook of market segmentation: Strategic targeting for business and
technology firms. Routledge.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.
Online
The STP Model of Marketing Segmentation, Targeting, and Positioning . 2019 [ONLINE]
Available Through:<https://devrix.com/tutorial/stp-model-of-marketing-segmentation-
targeting-positioning/>.
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The Biggest Trends in the Beauty Industry. 2019. [Online]. Available Through:
<https://www.forbes.com/sites/richardkestenbaum/2018/09/09/beauty-industry-biggest-
trends-skin-care-loreal-shiseido-lauder/#1e8895476982 >.
The-ongoing-evolution-of-organic products. 2019. [Online]. Available Through: <
https://www.fooddive.com/news/the-ongoing-evolution-of-organic-why-its-popular-and-
where-its-heading/519268/>.
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