Marketing Report: GoDaddy's Canadian Market Segmentation Analysis

This report analyzes the market segmentation activities of GoDaddy Inc., a company specializing in internet domains and web hosting, specifically within the Canadian market. It employs a customer segmentation framework, considering demographic, geographic, psychographic, and behavioral factors to identify potential customer segments. The analysis focuses on three key segments: middle and lower-income entrepreneurs, high-income entrepreneurs, and tech-savvy individuals, particularly in Quebec City and Charlottetown. A segment attractiveness assessment framework evaluates these segments based on needs, size, expected growth, and price sensitivity, leading to the recommendation that GoDaddy target middle and lower-income level customers. The report provides detailed recommendations, highlighting primary, secondary, and tertiary target markets, and concludes by emphasizing the strategic importance of focusing on middle-income individuals seeking domain solutions for their businesses in Canada.

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Contents
Introduction......................................................................................................................................1
Customer Segmentation Framework...............................................................................................1
Segment Attractiveness Assessment Framework............................................................................2
Recommendations............................................................................................................................4
References........................................................................................................................................6

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Introduction
The purpose of this report is to evaluate the market segmentation activities of the
company GoDaddy Inc. The company is American publically traded company that deals in
internet domain and web hosting. Further, below mentioned is the segment attractiveness
assessment for the company that will help the business in targeting right type of people (Dietrich,
Rundle-Thiele, and Kubacki, 2017).
Customer Segmentation Framework
The best suitable location for the company GoDaddy on the basis of geographical
location would be Canada. The country has great market for the company expand its scope of
business. Further, below mentioned is the customer segmentation conducted for GoDaddy in
Canada.
 Demographic Segmentation: on the basis of demographic segmentation, the company
should target the people belonging to age group of 19 to 35. This is the best suitable age
group that will purchase domain from the organization in the market of Canada. These
people are internet savvy so they will find keen interest in the company and the products
offered by them in the market. Further, the company should target entrepreneur and the
people belonging to all income level segments. This type of segmentation will help the
organization to analyse the people whom they should target among the crowd (Yang, Liu,
Teng, Liao, and Xiong, 2016).
 Geographic Segmentation: on the basis of geographic segmentation, the company should
target people belonging Canada market. It should be noted that there are several
industries present in the Canadian market and the people also have interest in technology
sector. So, the market of Canada is favourable for the organization to explore its scope of
business. Initially the company should target the whole country but their major focus
should be laid on Quebec City and Charlottetown. These are the two cities of the country
where major business activities are conducted (Simkin, 2016).
 Psychographic Segmentation: On the basis of this type of segmentation, the company
should target people whom have a business minded approach towards everything in life.

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The company should target people who always look for better opportunities present in the
market and have keen interest in buying websites as future investment.
 Behavioural Segmentation: Lastly, on the basis of this type of segmentation, the company
should target people who have a tendency to purchase domains. The company should
target people who have good purchasing power and likes to spend on different activities
(Venter, Wright, and Dibb, 2015).
On the basis of above mentioned framework, below mentioned are the customer categories
that the business should target:
1. Middle and lower income level entrepreneurs or baby boomers in business in Quebec
City and Charlottetown.
2. High income level entrepreneurs looking for better opportunities in Quebec City and
Charlottetown.
3. Tech savvy people looking to investment and additional earning options in Canada
(Bruwer, and Li, 2017)
Segment Attractiveness Assessment Framework
Below mentioned is the analysis of attractiveness of the three customer segments
mentioned above:
Customer
Segment
Needs Size Expected
Growth
Price
Sensitivity
Overall
Attractiveness
Middle-
income level
segment
This type of
people are people
who do not have
enough cash in
hand and are
looking for an
economic option
to upgrade their
business and
The size of
this
segment is
very large
and
extensive
as there are
mainly
middle
As there is
greater
market
segment
under this
case, so the
expected
growth is also
high. These
High degree
of price
sensitivity is
present
among this
type of
people in the
market.
High

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increasing their
profitability as
well (Klein,
2016).
income
level
people
belonging
in Canada.
types of
people are the
people in
need, so they
purchase the
domain to
grow and
attain
profitability
from the
market.
High-income
level segment
These types of
people are the
people who have
adequate cash in
hand and can
purchase good
domains from the
market. These
types of people
are looking for
better
opportunities to
expand their
scope of business
and increase
competitiveness
in the market
(Bhade,
Gulalkari,
Harwani, and
The market
of this type
of people is
low as not
many
people
have the
capacity to
purchase
costly
domain
from the
website of
GoDaddy.
The expected
growth is
average as
irrespective
of the fact
that these
people earn
profit from
GoDaddy
domain or
not, they are
already
successful in
the market.
So, the
expected
growth is
average.
Low degree
of price
sensitivity is
present in this
segment. The
client only
need to get
attract
domain and
they are
ready to pay
heavy amount
(Thoeni,
Marshall, and
Campbell,
2016).
Average

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Dhage, 2018).
Tech savvy These people are
the people who
are
technologically
updated people.
These people do
not need domain
for own use,
instead they look
for domain as an
investment
option. These
people look for
investing in
domain and then
selling it to other
two segments at
high prices
(Gierkink, et. al.,
2016)
The size of
this type of
customers
segment is
very small
as not
many
people
have
adequate
information
about
technology
and
domain.
So, the
count of
tech savvy
people in
the country
Canada is
very few.
The expected
growth
depends upon
the people to
whom these
customers
sell the
domain. So,
the expected
growth is
uncertain
There is high
degree of
price
sensitivity, as
the clients
purchase
domain at
low rates in
the market
and then sell
it to people at
high prices.
Low
Recommendations
After thoroughly analysing the above mentioned target segments, it should be noted that
the company Godaddy should choose the middle and lower income level people in the market.
There are varied reasons that this segment will provide benefits to the company in the target
market of Canada. The primary, secondary and tertiary target markets of the company are
discussed below:

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Primary market: Middle income level people
These people are the people who are in need of a good domain in the market, so they will
work progressively to attain the best domain in the market that is suitable to their business
profile. These are the people who need their domain to work, they are also willing to pay
optimum amount if the domain in high attractive and relatable to their business. Thus, these are
the primary segment of the company as the company will provide income friendly solutions to
such people in the market of Canada.
Secondary Market: High Income level people
These are secondary target market for the company GoDaddy. The fact should be noted
that these are the people who have high income in hand but less interest in the website and the
domain. These people are already successful in the market so they will not implement repeated
sales, however the primary segment mentioned above will always initiate repeated sales for the
company GoDadddy. Thus, these are secondary market that the company will target in the
market of Canada.
Tertiary Market: tech-savvy people
These are the technologically updated people who high interest in domain but are not
willing to pay optimum amount for it. These people purchase domain so as to resale it to the
needy people in the environment. Thus, this type of market is the tertiary market for the company
to target.

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References
Bhade, K., Gulalkari, V., Harwani, N. & Dhage, S.N., (2018, July). A Systematic Approach to
Customer Segmentation and Buyer Targeting for Profit Maximization. In 2018 9th
International Conference on Computing, Communication and Networking Technologies
(ICCCNT) (pp. 1-6). IEEE.
Bruwer, J. & Li, E., (2017). Domain-specific market segmentation using a latent class mixture
modelling approach and wine-related lifestyle (WRL) algorithm. European Journal of
Marketing, 51(9/10), pp.1552-1576.
Dibb, S. & Simkin, L., (2016). Market segmentation and segment strategy. Marketing theory: A
student text, pp.251-279.
Dietrich, T., Rundle-Thiele, S. & Kubacki, K., (2017). Segmentation in social marketing.
Springer Singapore:.
Gierkink, R.W., Wright, T.J., Ray III, J.B. & Gaeth, D.E., DataLogix Holdings Inc,
(2016). Targeting messages. U.S. Patent 9,299,078.’
Klein, T.A., (2016). Exploring the ethical and societal implications of market segmentation and
targeting: Macromarketing and distributive justice perspectives. Social Business, 6(2),
pp.109-124.
Simkin, L., (2016). 11 Segmentation. The Marketing Book, p.271.
Thoeni, A.T., Marshall, G.W. & Campbell, S.M., (2016). A resource-advantage theory typology
of strategic segmentation. European journal of marketing, 50(12), pp.2192-2215.
Venter, P., Wright, A. & Dibb, S., (2015). Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
Yang, J., Liu, C., Teng, M., Liao, M. & Xiong, H., (2016, December). Buyer targeting
optimization: A unified customer segmentation perspective. In 2016 IEEE International
Conference on Big Data (Big Data) (pp. 1262-1271). IEEE.