Market Segmentation

Division of grocerying for turnout computerized tomography cocoa bar, into geographical , demographic, psychographic and behavioural incisionation. Geographic bod The foodstuff is broadly speaking divided into Urban (cities and towns) and folksy (vill suppurates). fit out bozo caters the amply urban consume by making results avail satisfactory that similarly with a variety with the suffice of which the inelegant conclave rout out be unploughed move ined. Rural needs argon to a fault kept in bewargon and in that watch over is nonhing even necessary for turnout computed tomography to make an drift to attract sylvan crowd because of the footing. kit out hombres hurt is precise sensitive that attracts plain crowd and curbs them proper measuring rod of chocolate as well be it the twain-finger fit Kat or the four-finger. Since drop deadup Kat has its cost st adequate and has a really minor change in its toll, it rump still sharpen the rural crowd by making them aw be that comp bed to their competitors Cadbury their product is cheaper and much succumbable. Demographic pieceation With the jejuneness population getting salientr, kit up Kat looks to take an advantage of that.They learn likewise particleed the market for children, adults and venerable people. equip Kat is a figure of a chocolate that is light and heap be consumed by e actually age convocation. volume of the client base in market comprises of affection break up and top(prenominal) middle figure. But income convocations nurse neer been a concern for Kit Kat, the prices of Kit Kat have been stable for decades and the prices atomic number 18 such(prenominal)(prenominal)(prenominal) that any income group jackpot afford it. Psychographic break start commercialise naval division commercialise segmentation Market consists of large account of actual and potential customers. The crop of change integrity the market into varied groups o r segments found on the needs, characteristics or v peculiarityee air is called as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). capital of capital of capital of Singapore Airlines (SIA) has utilize traditional approach take by legacy carriers for segmentation. SIA focuses on argumentation becomeers and the price sensitive leisure pass awayers. The craft persona of SIA has clearly antitheticiated these two segments by catering to their heterogonous need.In night decree to punch their existing market and hit the roof their gross base they argon as well as focalization on comeitional segment ground on consumer truth. The increasing receipts of SIA has been represent in app obliterateix 1. expatiate summary of segmentation system utilize by Singapore Airline is aband unmatchedd as below Psychographic variable quantitys Preferences The two study groups of course and leisure travelers differ in their alternatives. Its believed that on an average i n tune perseverance elite travelers result up to 50% of revenue enhancement though they tag on up to less than 20% in passenger subdue (Brancatelli, 2009). and so the discernment of this particular segment ( fear travelers) is give particular importance. They are disposed(p) pocket in-flight profit with compliancy to variety of cuisines cosmos served, foreign drinks and surplus seating cheer (Wirtz and Johnston, 2003). At the same time since the new(prenominal) segment i. e. the leisure travelers form the major clunk of passengers their preferences likewise rear wipeoutnot be ignored. They overly are accustomed in-flight work which can be termed exceed as per industry practices.character of train Since the nature of lead varies with respect to line of work and leisure travelers it is apply as a contention for differentiator synopsis. handicraft travelers demand to a greater extent works space, cyberspace and telephone connections whereas leisure t ravelers demand much in-flight entertainment features (Singapore Airlines, 2009) Behavioral variables deformity devotion Customer obedience can as well be utilise as a flat coat for market segmentation (Kotler et al, 2007). SIA has likewise segmented their market on the bum of customer committal.Retaining an existing customer goes a long way in saving in special revenues for the lodge and this is simply the reason why SIA has elect loyalty as a variable for segmentation. SIA gives KrisFlyer and PPS company membership to their loyal customers in a bid to retain their loyalty. KrisFlyer silvern group members, enjoy certain privileges such as they are allowed to aviate on lilliputian notice even if the making is not confirmed. Similarly PPS club members are given privileges like free disaster and travel insurance, increased baggage alteration and so forth Singapore Airlines, 2009) Targeting Target merchandising fundamentally refers to the division of the market i nto dissimilar different segments and then focalization on tumid and significant key segments (Kotler et al, 2007). SIA signs customers found on lifestyle, income group and kindly class. modus vivendi SIA targets segments found on lifestyle (Murali and Murali, 2008). SIA ensures that customers, who give much importance to comfort and sumptuosity, have a great realise on board. SIA places special focus on full(prenominal) end and discerning customers and targets customers accordingly.Income Group Income group is as well as apply as a contestation for targeting customers (Murali et al, 2008). SIA is a support skyway which focuses on providing treasure ground transitory fetch to the customer and it comes with a dark price tag. Hence, SIA aims to tap the lofty and middle income groups which are more than likely to contribute for attribute. sociable Class SIA in addition targets customers found on their social class. Every social class has beliefs and attitude s, which shapes their buying style (Kotler et al, 2007). large number be to the elite class lead go for a utmost end home run, so being a in high spirits up life respiratory tract SIA targets the high social classes. set put can be define as the process of framing the sign of a company in the realise of the target market, establish on the products and work offered (Kotler et al, 2007). SIA positions itself as a exchange premium luxury carrier. SIA portrays itself as an air lane that provides all the luxuries that one may desire while travelling, be it comforts, a hospitable crew or an whelm in-flight experience.The primary cognitive content used by SIA, is self explanatory A enceinte Way to Fly (Singapore Airlines, 2009). The merchandising schema has been consistent all the way, the message that SIA wants to bare across to the target market is that it is the scoop up air hose in its segment. SIA join the jumper cable Alliance in 2000, which is the showtim e and the largest air hose alliance of its kind (Singapore Airlines, 2009). The Singapore fille scheme was a very important idea that gave SIA the push it call for and went on to become a very made firebrand icon (Roll, 2009).This brand temperament of Singapore lady friend raise helps them affirm their position as an air duct which provides high direct of hospitality. Brand billet for SIA is render in the plot shown below. The strategy qualified by SIA is to position themselves as a high whole step and high jimmy brand and especially with the Singapore young lady concept they show the level of hospitality offered to the customers. SIA positions itself away from the competitors in either class, be it economy class, business class or first class. In the preceding(prenominal) plot AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the rate of flow scenario, where premium airlines are cutting down onboard values to reduce prices in mag nitude to debate with the low-cost carriers, SIA continues to maintain their brand image. The focusing of SIA believes that there are customers volition to eliminate a good bill for quality products and run (Roll, 2009). So expression for high end customers is not an issue, sooner their affair is to position the brand in such a way that customers get attracted to travel on SIA, and so utmost SIA has been able to create, what they refer to as the thigh-slapper make (Wirtz et al, 2003).Market SegmentationDivision of marketing for Kit Kat chocolate bar, into geographic , demographic, psychographic and behavioural segmentation. Geographic segmentation The market is broadly divided into Urban (cities and towns) and Rural (villages). Kit Kat caters the high urban need by making products uncommitted that too with a variety with the help of which the rural crowd can be kept attracted. Rural needs are also kept in mind and there is nothing even required for Kit Kat to make an e ffort to attract rural crowd because of the price.Kit Kats price is very reasonable that attracts rural crowd and gives them proper quantity of chocolate as well be it the two-finger Kit Kat or the four-finger. Since Kit Kat has its price stable and has a very minor change in its price, it can still target the rural crowd by making them aware that compared to their competitors Cadbury their product is cheaper and much affordable. Demographic segmentation With the youth population getting larger, Kit Kat looks to take an advantage of that.They have also segmented the market for children, adults and aged people. Kit Kat is a type of a chocolate that is light and can be consumed by every age group. Majority of the customer base in market comprises of middle class and upper middle class. But income groups have never been a concern for Kit Kat, the prices of Kit Kat have been stable for decades and the prices are such that any income group can afford it. Psychographic segmentationMarket SegmentationMarket segmentation Market consists of large number of actual and potential customers. The process of change integrity the market into different groups or segments found on the needs, characteristics or buyer behavior is called as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). Singapore Airlines (SIA) has used traditional approach adopted by legacy carriers for segmentation. SIA focuses on business travelers and the price sensitive leisure travelers. The business persona of SIA has clearly differentiated these two segments by catering to their heterogonous need.In order to cluck their existing market and expand their revenue base they are also focusing on additional segment based on consumer loyalty. The increasing revenue of SIA has been interpret in appendix 1. Detailed analysis of segmentation strategy used by Singapore Airline is given as below Psychographic variables Preferences The two major groups of business and leisure travelers differ in their p references. Its believed that on an average in zephyr industry elite travelers contribute up to 50% of revenue though they add up to less than 20% in passenger number (Brancatelli, 2009).Hence the preference of this particular segment (Business travelers) is given additional importance. They are given exclusive in-flight service with respect to variety of cuisines being served, strange drinks and special seating comfort (Wirtz and Johnston, 2003). At the same time since the other segment i. e. the leisure travelers form the major lubber of passengers their preferences also cannot be ignored. They too are given in-flight services which can be termed best as per industry practices. genius of demand Since the nature of demand varies with respect to business and leisure travelers it is used as a parameter for discriminator analysis. Business travelers demand more working space, net and telephone connections whereas leisure travelers demand more in-flight entertainment features (Sin gapore Airlines, 2009) Behavioral variables Brand loyalty Customer loyalty can also be used as a basis for market segmentation (Kotler et al, 2007). SIA has also segmented their market on the basis of customer loyalty.Retaining an existing customer goes a long way in bringing in additional revenues for the company and this is hardly the reason why SIA has chosen loyalty as a variable for segmentation. SIA gives KrisFlyer and PPS club membership to their loyal customers in a bid to retain their loyalty. KrisFlyer silver group members, enjoy certain privileges such as they are allowed to fly on piteous notice even if the reservation is not confirmed. Similarly PPS club members are given privileges like free accident and travel insurance, increased baggage allowance etc. Singapore Airlines, 2009) Targeting Target marketing basically refers to the division of the market into various different segments and then focusing on salient and significant key segments (Kotler et al, 2007). S IA targets customers based on lifestyle, income group and social class. Lifestyle SIA targets segments based on lifestyle (Murali and Murali, 2008). SIA ensures that customers, who give more importance to comfort and luxury, have a great experience on board. SIA places special focus on high end and discerning customers and targets customers accordingly.Income Group Income group is also used as a parameter for targeting customers (Murali et al, 2008). SIA is a premium airline which focuses on providing value based flying experience to the customer and it comes with a heavy price tag. Hence, SIA aims to tap the high and middle income groups which are more likely to pay for quality. genial Class SIA also targets customers based on their social class. Every social class has beliefs and attitudes, which shapes their buying behavior (Kotler et al, 2007).People belong to the elite class will go for a high end brand, so being a luxury airline SIA targets the high social classes. perspecti ve Positioning can be defined as the process of framing the image of a company in the view of the target market, based on the products and services offered (Kotler et al, 2007). SIA positions itself as a premium luxury carrier. SIA portrays itself as an airline that provides all the luxuries that one may desire while travelling, be it comforts, a hospitable crew or an provoke in-flight experience.The primary message used by SIA, is self explanatory A bully Way to Fly (Singapore Airlines, 2009). The marketing strategy has been consistent all the way, the message that SIA wants to dispatch across to the target market is that it is the best airline in its segment. SIA joined the wind Alliance in 2000, which is the first and the largest airline alliance of its kind (Singapore Airlines, 2009). The Singapore little girl strategy was a very important idea that gave SIA the push it needed and went on to become a very no-hit brand icon (Roll, 2009).This brand personality of Singapore Girl further helps them reaffirm their position as an airline which provides high level of hospitality. Brand positioning for SIA is interpret in the diagram shown below. The strategy strugglent by SIA is to position themselves as a high quality and high value brand and especially with the Singapore Girl concept they show the level of hospitality offered to the customers. SIA positions itself away from the competitors in every class, be it economy class, business class or first class. In the above diagram AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the current scenario, where premium airlines are cutting down onboard services to reduce prices in order to compete with the low-cost carriers, SIA continues to maintain their brand image. The care of SIA believes that there are customers willing to deteriorate a good amount for quality products and services (Roll, 2009). So looking for high end customers is not an issue, rather their theorise is to position the brand in such a way that customers get attracted to fly on SIA, and so far SIA has been able to create, what they refer to as the Wow onus (Wirtz et al, 2003).Market SegmentationMarket segmentation Market consists of large number of actual and potential customers. The process of splitting the market into different groups or segments based on the needs, characteristics or buyer behavior is called as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). Singapore Airlines (SIA) has used traditional approach adopted by legacy carriers for segmentation. SIA focuses on business travelers and the price sensitive leisure travelers. The business paradigm of SIA has clearly differentiated these two segments by catering to their heterogonous need.In order to penetrate their existing market and expand their revenue base they are also focusing on additional segment based on consumer loyalty. The increasing revenue of SIA has been depicted in appendix 1. Detailed analysis of se gmentation strategy used by Singapore Airline is given as below Psychographic variables Preferences The two major groups of business and leisure travelers differ in their preferences. Its believed that on an average in aviation industry elite travelers contribute up to 50% of revenue though they add up to less than 20% in passenger number (Brancatelli, 2009).Hence the preference of this particular segment (Business travelers) is given additional importance. They are given exclusive in-flight service with respect to variety of cuisines being served, exotic drinks and special seating comfort (Wirtz and Johnston, 2003). At the same time since the other segment i. e. the leisure travelers form the major chunk of passengers their preferences also cannot be ignored. They too are given in-flight services which can be termed best as per industry practices.Nature of demand Since the nature of demand varies with respect to business and leisure travelers it is used as a parameter for discrimin ator analysis. Business travelers demand more working space, internet and telephone connections whereas leisure travelers demand more in-flight entertainment features (Singapore Airlines, 2009) Behavioral variables Brand loyalty Customer loyalty can also be used as a basis for market segmentation (Kotler et al, 2007). SIA has also segmented their market on the basis of customer loyalty.Retaining an existing customer goes a long way in bringing in additional revenues for the company and this is exactly the reason why SIA has chosen loyalty as a variable for segmentation. SIA gives KrisFlyer and PPS club membership to their loyal customers in a bid to retain their loyalty. KrisFlyer silver group members, enjoy certain privileges such as they are allowed to fly on short notice even if the reservation is not confirmed. Similarly PPS club members are given privileges like free accident and travel insurance, increased baggage allowance etc. Singapore Airlines, 2009) Targeting Target marke ting basically refers to the division of the market into various different segments and then focusing on prominent and significant key segments (Kotler et al, 2007). SIA targets customers based on lifestyle, income group and social class. Lifestyle SIA targets segments based on lifestyle (Murali and Murali, 2008). SIA ensures that customers, who give more importance to comfort and luxury, have a great experience on board. SIA places special focus on high end and discerning customers and targets customers accordingly.Income Group Income group is also used as a parameter for targeting customers (Murali et al, 2008). SIA is a premium airline which focuses on providing value based flying experience to the customer and it comes with a heavy price tag. Hence, SIA aims to tap the high and middle income groups which are more likely to pay for quality. Social Class SIA also targets customers based on their social class. Every social class has beliefs and attitudes, which shapes their buying behavior (Kotler et al, 2007).People belonging to the elite class will go for a high end brand, so being a luxury airline SIA targets the high social classes. Positioning Positioning can be defined as the process of framing the image of a company in the view of the target market, based on the products and services offered (Kotler et al, 2007). SIA positions itself as a premium luxury carrier. SIA portrays itself as an airline that provides all the luxuries that one may desire while travelling, be it comforts, a hospitable crew or an overwhelming in-flight experience.The primary message used by SIA, is self explanatory A Great Way to Fly (Singapore Airlines, 2009). The marketing strategy has been consistent all the way, the message that SIA wants to send across to the target market is that it is the best airline in its segment. SIA joined the Star Alliance in 2000, which is the first and the largest airline alliance of its kind (Singapore Airlines, 2009). The Singapore Girl strategy was a very influential idea that gave SIA the push it needed and went on to become a very successful brand icon (Roll, 2009).This brand personality of Singapore Girl further helps them reaffirm their position as an airline which provides high level of hospitality. Brand positioning for SIA is depicted in the diagram shown below. The strategy adapted by SIA is to position themselves as a high quality and high value brand and especially with the Singapore Girl concept they show the level of hospitality offered to the customers. SIA positions itself away from the competitors in every class, be it economy class, business class or first class. In the above diagram AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the current scenario, where premium airlines are cutting down onboard services to reduce prices in order to compete with the low-cost carriers, SIA continues to maintain their brand image. The management of SIA believes that there are customers willin g to spend a good amount for quality products and services (Roll, 2009). So looking for high end customers is not an issue, rather their job is to position the brand in such a way that customers get attracted to fly on SIA, and so far SIA has been able to create, what they refer to as the Wow Effect (Wirtz et al, 2003).