Marketing Management Report: Mothercare's Market Segmentation Strategy

This report examines Mothercare's market segmentation strategy, focusing on its potential expansion into Dubai. It begins with an introduction to market segmentation and its importance for businesses, particularly in identifying and targeting consumer preferences. The report then delves into Mothercare's current market challenges and the rationale for expanding into Dubai, highlighting its attractive market characteristics. It provides a detailed analysis of potential market segments, including geographic, demographic, psychographic, and behavioral characteristics, with specific examples related to Dubai's consumer base. A competitive analysis of Mothercare's rivals in Dubai is also included. The report assesses the resources and values of the company and evaluates the effectiveness of the proposed market segments based on criteria like measurability, substantiality, accessibility, differentiability, and actionability. Finally, the report concludes with recommendations for Mothercare's marketing plan and strategy in Dubai, emphasizing the importance of competitive analysis to succeed in the new market.

Running Head: MARKETING MANAGEMENT 0
MOTHER CARE
Marketing Management
(Student Name)
3/30/2019

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Table of Contents
Introduction......................................................................................................................................2
Market Segmentation.......................................................................................................................2
Potential Market Segments..............................................................................................................2
Competitive analysis........................................................................................................................3
Resources and Value of Company...................................................................................................4
Effective Segments Criteria.............................................................................................................4
Conclusion and Recommendation...................................................................................................4

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Introduction
Market segmentation is one of the specific tools that are used to analyze the taste and
preference of consumers in a more effective manner. It is majorly used to analyze the new
market before entering into such a market that helps the company to enter in such a market in a
more effective and efficient manner (Ernst & Dolnicar, 2018). Marketing the target market is one
of the processes of identifying a group of consumers about which, the company believes that
they are meeting their needs with their product as well as the consumers are likely to buy them
(Dibb & Simkin, 2016). One of the leading companies Mothercare, UK based company is
dealing with baby products has planning to expand their business in Dubai to widen their range
of consumers in the international market (Quoquab, Ahmad, Hazarina & Ahmad, 2016).
In the following part, there will be a detailed analysis of the potential market that supports the
company to cope up with the challenges of shrinkage of the target market.
Market Segmentation
Mothercare is required to identify the new markets by categorized the potential markers
into small market segments with the help of the tools such as psychographics, behavioristic,
demographic as well as geographic instruments. The company will target its consumers through
a geographic location, their age, income with the take and preference that would make the
company target them in a more effective and efficient manner (Dietrich, Rundle-Thiele &
Kubacki, 2017). With the help of geographical segmentation, the company would able to find
their consumers in regional, local, state or any national marketplace segment. The characteristics
of demographics are used to analyze which segment they need to target such as gender, age,
income level, marital status. The characteristics of Behavioral and Psychographic will be used to
analyze the taste and preference of consumers towards the product in the market to understand
their priorities to satisfy them in a more effective and efficient manner (Venter, Wright & Dibb,
2015).

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Potential Market Segments
In the recent scenario, the segment of the target market of the company in which they are
working is decreased that affect the overall performance of the company a greater level. The
company is required to expand their business in a new market where the demand for such
products is high. It will provide a new market segment for the company to target their
consumers. Therefore, Dubai is the hub of shopping malls. It has an attractive market that can
enhance the profit margin of the company at a greater level. The company can expand its
business in such a country to cope up with such challenges in a more effective manner. The
potential market segments are divided into four groups that are explained in the below points as
they are:
Geographic Segment:
Dubai is the hub of malls; they have lavish malls where the maximum crowd of the
country visits. The top malls are Ibn Battuta Mall, Dubai Outlet Mall, BurJuman, Malls of
Emirates, and Dubai Mall where maximum crowed visits. Therefore it will give an opportunity
for the company to launch its stores in such tops mall to cover a wide range of consumers in
Dubai in a more effective manner (Ewers & Dicce, 2016).
Demographic Segment:
 Age and Lifecycle stage: young kids, as well as babies, are the primary user's groups of
the Mothercare baby products. The population structure of the country and their growth
rate is high. Most of the people who visited the shopping mall are majorly less than 40
years old
 Gender: the other essential demographic variable for Mothercare is gender. Mother will
be the major target for purchasing and using their products for their babies. The young
girls will also be targeted for the product usage
 Demographic environment: the rate of literacy as well as income level are rising that
would influence the purchase of products related to baby care.
Behavioral:

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The attitude of consumers in such a country towards shopping is very casual. They
majorly buy products without compromising with quality. It is the youngest segment since 72%
of the shoppers in such segment are less than 40 years in which 91% of the shoppers in such
segment are Arabs. The attitude that the mother has towards caregiving, as well as parenting, is
essential in segmenting the baby care market. In the recent, most of the women are working as
well as look after the house that affects their lifestyle with the attitude towards the brands or any
products that they use (Pike & Kotsi, 2018).
Psychographic Segmentation
The variable affecting the target audience’s psychographics as well as behavior are
lifestyle, attitude, and personality of the individuals. The young generation and working mothers
are the main themes for communicating with the target market. The people in such country are
keen towards shopping including the young generation that would create an easy platform for the
company to target such consumers in more effective and in efficient manner (Dutt & Ninov,
2016).
Competitive analysis
The major competitors for Mothercare in Dubai are Johnson & Johnson, Kiddicare baby
specialist, Mamas & Papas, Argos, and Baby souk. They have already covered maximum market
share in Dubai that will great biggest challenge for the company at a greater level. The product of
Johnson & Johnson has 1.5 times the volume compared to the locally produced products. The
price of the competitors is quite low as a comparison to the Mothercare than made them more
competitive in the market in a more effective manner. According to the same sales representative
for mothers buying, Johnson & Johnson baby shampoo is one of the habitual behaviors for them.
At the time when they usually purchase Johnson & Johnson offers unless convinced by their
children to buy other products (Zaidan, 2016).
Resources and Value of Company
Mothercare is a retail specialist in the newborn as well as parenting products with more
than 50 years of experience. It is the pioneer of one-stop shop for parents that were founded by
Selim Zilkha. The company has earned a good reputation or goodwill in the UK. It is considered

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as one of the most trusted retail specialists that are providing their products with high quality and
at affordable prices. Therefore, the company can expand its business in another market to
minimize their risk and able to target a wider range of consumers in a more effective and
efficient manner (Paras et al., 2018).
Effective Segments Criteria
To analyze the effectiveness of the segments, there is required to evaluate such a segment
that can be applied in the business in a more effective manner. It can be evaluated from different
tools such as measurable, substantial, accessible, differentiable as well as actionable. Such points
are explained in the below points:
Measurable: the company can able to measure the market segment usually in term of
sales value or the volume. While analyzing the reasonable degree of accuracy, the company can
select the strategies that can be applied in the business. The company can measure the demand of
consumers by analyzing their expected and actual sales in such country.
Substantial: The Company will try to avoid unnecessary marketing budget on the market
segment or has negligible spending power. A viable market is usually a homogenous group with
a clearly defined characteristic such as age group, socio-economic background as well as brand
perception.
Accessible: the market should be provided by the company in that manner that can be
accessed and easily reach by the consumers. It should be available in the approachable market.
Differentiable: All the consumers in a similar segment should have similar
characteristics as well as preferences however they are externally heterogeneous. Therefore, the
company will cover the young generation and mothers for their products.
Actionable: the market segment that is chosen must be actionable. The characteristics of
the section must act as a source of data for a relevant sales approach or marketing position as
well as also provide the quantifiable outcomes as they are measured in the initial market research
(Jha, Aggarwal, Gupta & Sarker, 2016).

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Conclusion and Recommendation
From the above analysis, it can be concluded that market segmentation plays a vital role
for the company to enter the new market. The company can analyze the market in detail with the
help of segmentation of the market. One of the leading companies Mothercare in the UK is
facing challenges in earning the profit due to the reason of shrinkage in the market. Therefore, it
is required for the company to expand its business in another country for which they can select
Dubai. It is one of the attractive countries that has a hub of shopping malls. The people are keen
towards the shopping that can provide a new market to the company to target their consumers.
Therefore, it is required for the company to analyze the market in an effective manner to target
their consumers in a more effective and efficient manner. Moreover, it is also recommended to
the company to prepare a healthy marketing plan and strategy by analyzing the competition in
the market to compete their competitors.