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Concepts of market segmentation
Case study on marketing segmentation
Concepts of market segmentation
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Targeting and Positioning While trying to classify our consumer market based on demographics as well as psychographic characteristics, our segmentation indicates that people belonging to middle and upper strata of the society who have higher disposable income and students and teenagers are more likely to indulge in ice cream belonging to the premium category. Based on our analysis, we have identified two major target consumer segments for London Dairy. 1. Principal Target Segment Our principal target segment will consist of rich and upper middle class individuals who would primarily be young urban professionals with small families and higher disposable income. These individuals would want to spend time as well as money on their families and a lot of their purchases would be focussed on their kids’ needs and upbringing. This consumer target segment is likely to be brand conscious and hence would prefer having premium ice cream such as London Dairy which would be a manifestation of its social class. An emotional appeal and attachment can be created with the London Dairy brand and since people belonging to this customer segment are generally social, they are likely to spread brand goodwill by word of mouth. They are also likely to pass on the attachment to the London Dairy brand to their children. 2. Secondary Target Segment Our secondary target consumer segment will consist of teenagers and college going students. These will have people generally in the age group 18-25 and will be having a lifestyle where they have time to engage in leisure activities such as entertainment and food as well as socializing. Consumers in this segment are often brand conscious and enjoy the latest fads and trends. They... ... middle of paper ... ...high quality ingredient ,rich and creamy texture of the ice cream and the exquisite flavour which sets it apart from other ice cream brands. At malls, multiplexes and prime hot spots of the city, samples and brochures should be distributed via promotional stalls and kiosks to create brand awareness and allow customers to first hand taste the premium ice cream flavour of their liking. London Dairy also needs to associate itself with other high social class pursuits by sponsoring golf tournaments or fashion shows to create awareness keeping the image of exclusivity intact. In order to cater to impulse customer, kiosks selling bars, cones and cups must be opened at prime locations across cities. Pamphlets for home delivery along with introductory offers with the daily newspaper can also be distributed in select elite well-to- do neighbourhoods of cities.
Everyone is looking for better and healthier life! People today pay more and more attention to the food they eat, they want it to be healthy and tasty, on the other side modern life is so dynamic and eventful, that the food must be fast. So you need to come up with something that will support all these needs. The great solution is Frozen Yogurt. It is a refreshing, savory dessert that combines the flavors and textures of ice cream and sherbet. Frozen yogurt is a new-comer in the dessert market. Nevertheless, “the history of frozen desserts dates back thousands of years to Asia where water ices were first made.’’ (wiki) Yogurt was brought to the U.S. in the early 1900s and steadily increased in popularity as a health food item over the next several decades. By the 1970s, with the popularity of ice cream technology was transferred to the production of frozen yogurt. But it’s entry into the dessert market was a distinct failure—consumers complained that it tasted too much like yogurt. Relaying on consumer demand for a sweet product that tasted like ice cream, TCBY opened its first store in 1981. The highest popularity comes to Fro-yo by the mid 1990s. But in the late 1990s as Americans turned their attention to high-protein, high-fat diets, demand for frozen yogurt slowed considerably. Low-fat foods such as frozen yogurt fell out of favor as food trends preferred higher fat and lower cost ice cream at the turn of the millennium. Trends changed back to frozen yogurt in the mid 2000s with the advent of live probiotic powder-based mixes. Over the last decade the production of frozen yogurt has grown multi-million dollar business with dozens of competing companies.
Develop and maintain a list of individuals and organizations, including residents, as a resource for a variety of communication, marketing, promotion and development purposes. Communicate regularly through things such as meetings and newsletters
In your industry, an entry barrier is to provide customers with high quality, fresh, homemade products. With the surge of the health craze, more people are likely to go to a Café type establishment, than go to a fast food restaurant. Health-conscious customers have come to know and expect this from any café/restaurant trying to enter this market.
Traditional Manufacturers are the ice cream manufacturers of the erstwhile USSR which were privatized in the wake of the dissolution of USSR. They prefer using natural ingredients as compared to MNC’s who use preservatives. They have traditionally not been strong proponents of Marketing and their marketing expenses constitute 1 % of their overall revenue. They have been the market leaders in the Russian markets till date but most of them have old plants and technologies.
o The franchisee would have the opportunity to build a production facility if ICEDELIGHTS was unable to provide the product to the new stores
The adoption of a brand by a non-target market does not always have such positive results. Since the 1990s, luxury brand Burberry has been dealing with its association with “chavs,” in Great Britain. The chavs are a lower class group associated with rowdiness, hooliganism, and crime. They adopted the famous Burberry checkered pattern as part of their uniform. This resulted in a decrease in brand loyalty of Burberry’s upper-class English customers. In response, the company discontinued production of the checkered caps and reduced reliance on their famous trademark plaid design (Fitch 2009).
Staying in touch with their customers would not enable Ben and Jerry to be as successful as they have become if their ice cream was not high quality as well. The second value the company espouses is to use only wholesome, natural ingredients. They began their operation on this premise, utilizing fresh Vermont milk and cream to create their frozen concoctions. During a period of volatility in the dairy market in 1991, the company went so far as to pay a dairy premium totaling a half million dollars to combat Vermont dairy farmers’ losses. This helped protect the family farmers who supplied the milk for Ben and Jerry’s ice cream.
Ice cream in Russia is a very profitable business. Profit margins range between 15 and 20 %. This profit can be even greater when creating a premium product. Ice-Fili’s product value lies within raw material acquisition. Since the content of fat applied in the creation of ice cream is higher in Russian ice cream, the product is of better taste quality and unique flavor. With the Russian public placing more alarm on preservatives in edibles rather than fat content, this gives Ice-Fili an advantage over foreign competitors. In fact, Ice-Fili was the only ice cream producer awarded at the 2002 Moscow World Food exhibition for its brand Eralash. To market such prestige could help increase brand loyalty amongst customers. Ice-Fili also enjoys rather favorable brand recognition. The Lakomka brand is hailed as one of three most recognized ice cream brands in Russia....
...ed to increase their debt with compulsive shopping behavior demonstrating why there is no value toward the money earned as well as why consumerism is very materialistic.
Commercials make the viewer think about the product being advertised. Because of the amount of television children watch throughout the week, it allows the children to be exposed to the information over and over again. Per year, children are known to view thousands of fast food commercials. On a daily basis, a teen will usually view five advertisements and a child aged six to eleven will see around four advertisements (Burger Battles 4). Businesses use this strategy to “speak directly to children” (Ruskin 3). Although the big businesses in the fast ...
Product: "To make, distribute and sell the finest quality all natural ice cream and related products in a wide variety of innovative flavours made from Vermont dairy products."
The market for Frigidaire's front-loading washing machine should be divided into single segments which can then identify groups of consumers who share commonalities that have the potential to drive demand for the new product. Each segment of the market will have similar needs in quality and performance; they have a semi-uniform response to the marketing mix. The target of Frigidaire's marketing campaign will rely on the hierarchy of each segment's priorities. Typically, a market is segmented to include demographics combined with other behavioral attributes as previously demonstrated in the VALS survey. The information obtained in data collection from these market segments is crucial because the behaviors behinds these groups combined with the presentation of the product are the driving forced behind sales. One technique frequently used is a perceptual map that discerns which features are important to consumers, often called determinant attributes (Business).
right places to get maximum exposure to potential customers? This would also include the suitability of the marketing and launching. of the product or service. The acceptability of the product, whether the risk of launching this product is acceptable to the company. The feasibility whether the product will work within the existing ice cream market.
Several facts are changing in today’s marketing communications. More companies adopt the new concept of integrated marketing communications (IMC) to convey a consistent message about their brand and products. Hence, IMC has played a powerful role and developed into a useful strategy for company to reach more customers and build good customer relationships. According to Herstein et al. (2008), IMC is one of a successful strategy that coordinates and integrates all of marketing communication tools to efficiently and economically influence between an organization and its existing and potential customers. Moreover, marketers can combine IMC tools (advertising, sale promotion, personal selling, direct marketing and public relations) rather than separate practices to create values and avoid potential conflicts (Duncan & Everett, 1993). In fast food industry, fast food chains integrate advertising, sale promotion, sponsorship, packaging and Internet to promote their products as well as build brand image (Sperber, 2003; Story & French, 2004; Morrison, 2010). Advertising is most used form of communication and the most frequently utilized medium due to it easily contact the target market, especially on television advertising (Story & French, 2004; Case, 2007). In addition, simple toys and products are typically used by fast food chains in children’s meal to attract children and adolescents.
Influencer Marketing, also known as "word of mouth", is the process of brands getting their message out through people who are influential to their target market.