Create the value market segmentation analysis
Assignment – Create the Value: Market Segmentation Analysis and a Value Proposition
Your company has decided to explore the possibility of developing a new retail brand aimed at a specific target market. Please prepare a report that would form the basis of a planning discussion with your senior marketing managers. The term retail brand refers to a retail store concept, as opposed to a manufacturer’s product or service brand – the retail company is the brand – like Target, GAP or Victoria’s Secret.
Your report should include a detailed analysis of a potential market segment and a description of the proposed value proposition. Your report should be about 1,000-1,250 words and include a minimum of three references. Please use the APA format for your paper and references. Please include the following sections:
1. Brief Description of the proposed retail brand concept
2. Potential Market Segment
Identify the characteristics of your potential target market. The figure from the Week 2 lecture is helpful – you may also include other variables that you consider relevant. You also need to estimate the size of your target market and the revenue potential.
|Major Segmentation Variables for Consumer Markets|
|Geographic region||Pacific Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England|
|City or metro size||Under 5,000; 5,000-20,000; 20,000-50,000; 50,000-100,000; 100,000-250,000; 250,000-500,000; 500,000-1,000,000; 1,000,000-4,000,000; 4,000,000 or over|
|Density||Urban, suburban, rural|
|Demographic age||Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 64+|
|Family size||1-2, 3-4, 5+|
|Family life cycle||Young, single; young, married, no children; young, married, youngest child under 6; young; married, youngest child 6 or over; older, married, with children; older, married, no children under 18; older, single; other|
|Income||Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000-$30,000; $30,000-$50,000; $50,000-$100,000; $100,000 and over|
|Occupation||Professional and technical workers; managers, officials, and proprietors; clerical salespeople; craftspeople; forepersons; operatives; farmers; retired people; students; homemakers; unemployed people|
|Education||Grade school or less; some high school; high school graduate; some college; college graduate|
|Religion||Catholic, Protestant, Jewish, Muslim, Hindu, other|
|Race||White, Black, Asian, Hispanic|
|Generation||Baby boomers, Generation Xers|
|Nationality||North American, South American, British, French, German, Italian, Japanese|
|Social class||Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers|
|Psychographic lifestyle||Culture-oriented, sports-oriented, outdoor-oriented|
|Personality||Compulsive, gregarious, authoritarian, ambitious|
|Behavioral occasions||Regular occasion, special occasion|
|Benefits||Quality, service, economy, speed|
|User status||Nonuser, ex-user, potential user, first-time user, regular user|
|Usage rate||Light user, medium user, heavy user|
|Loyalty status||None, medium, strong, absolute|
|Readiness stage||Unaware, aware, informed interested, desirous, intending to buy|
|Attitude toward product||Enthusiastic, positive, indifferent, negative, hostile|
3. The Value Proposition
Describe the bundle of benefits/features that are offered to the target customer. Features are what the company offers and benefits are what the customer derives from these features.
- Functional Benefits – What basic features are offered?
- Emotional Benefits – What features are offered that make the customer feel good?
- Self-Expressive Benefits – What features are offered that help reflect and communicate the customer’s values to everyone in the social environment?