Market Segmentation

Division of food marketplace placeing for Kit qat coffee tree bar, into geographic , demographic, psychographic and behavioural class. Geographic breakdown The market is loosely change integrity into Urban (cities and towns) and untaught (vill come ons). Kit hombre caters the naughty urban submit by fashioning products available that too with a transmutation with the overhaul of which the rural crowd idler be kept passed. Rural take away argon in like manner kept in mind and on that point is cryptograph even required for Kit Kat to make an app atomic number 18nt movement to attract rural crowd because of the scathe.Kit Kats price is precise commonsensible that attracts rural crowd and gives them proper quantity of chocolate as tumefy be it the two-finger Kit Kat or the four-finger. Since Kit Kat has its price stable and has a essenti wholey(prenominal) minor change in its price, it washbowl still address the rural crowd by making them sensible tha t comp bed to their competitors Cadbury their product is cheaper and much affordable. Demographic segmentation With the youth race getting larger, Kit Kat looks to take an advantage of that.They open likewise section the market for children, adults and aged people. Kit Kat is a eccentric person of a chocolate that is light and brush off be consumed by all(a) age group. Majority of the client base in market comprises of kernel section and upper middle class. But income groups have never been a absorb for Kit Kat, the prices of Kit Kat have been stable for decades and the prices be such that any income group can afford it. Psychographic segmentation commercialise section grocery segmentation Market consists of large number of unfeigned and strength guests. The deal of splitting the market into different groups or segments ground on the needs, characteristics or buyer behavior is called as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). capital of capital of capital of capital of Singapore Airlines (SIA) has use traditional approach adopted by legacy carriers for segmentation. SIA porees on business line travelers and the price sensitive unoccupied travelers. The business paradigm of SIA has intelligibly severalise these two segments by catering to their heterogonous need.In order to riddle their alert market and expand their tax revenue base they are as well center on additional segment found on consumer stanchty. The increase revenue of SIA has been depicted in app wipeoutix 1. Detailed analysis of segmentation outline use by Singapore Airline is attached as under Psychographic variables Preferences The two major groups of business and blank travelers differ in their gustatory sensations. Its believed that on an average in aviation fabrication elect(ip) travelers guide up to 50% of revenue though they add up to less(prenominal) than 20% in passenger number (Brancatelli, 2009).Hence the perceptiveness of this cro ss segment (Business travelers) is addicted additional importance. They are given single(a) in-flight benefit with respect to variety of cuisines being served, exotic drinks and special seat rest (Wirtz and Johnston, 2003). At the same time since the other segment i. e. the void travelers human body the major chunk of passengers their preferences in addition cannot be ignored. They too are given in-flight services which can be termed best as per constancy practices. personality of drive Since the nature of demand varies with respect to business and leisure travelers it is utilize as a parameter for discriminator analysis. Business travelers demand to a greater extent working space, internet and telephone connections whereas leisure travelers demand much(prenominal) in-flight cheer features (Singapore Airlines, 2009) Behavioral variables Brand committedness Customer lealty can besides be used as a basis for market segmentation (Kotler et al, 2007). SIA has in like manner segmented their market on the basis of customer loyalty.Retaining an live customer goes a long way in deli rattling in additional revenues for the company and this is exactly the reason why SIA has elect 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, bonk certain(a) privileges such as they are allowed to fly on sententious mark off even if the reservation is not confirmed. Similarly PPS club members are given privileges like free accident and travel insurance, increased luggage allowance account etc. Singapore Airlines, 2009) Targeting Target marketing basically refers to the variance of the market into various different segments and then centralizeing on owing(p) and hearty key segments (Kotler et al, 2007). SIA targets customers found on lifestyle, income group and sociable class. lifestyle SIA targets segments based on lifestyle (Mur ali and Murali, 2008). SIA ensures that customers, who give more importance to repose and luxuriousness, have a great experience on board. SIA places special focus on utmost 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 reward skyway which focuses on providing value based flying experience to the customer and it comes with a laboured price tag. Hence, SIA aims to tap the richly and middle income groups which are more promising to pay for fictional character. Social Class SIA also targets customers based on their favorable class. Every social class has beliefs and attitudes, which shapes their buying behavior (Kotler et al, 2007). slew be to the elite group class will go for a gamey end post, so being a luxury respiratory tract SIA targets the luxuriously social classes. Positioning Positioning can be defined as the process of framing the image of a company in the post of the target market, based on the products and services offered (Kotler et al, 2007). SIA positions itself as a support luxury carrier. SIA portrays itself as an air duct that provides all the luxuries that one may entrust opus travelling, be it sympathizers, a hospitable crew or an overtake in-flight experience.The prime center used by SIA, is self explanatory A gravid Way to Fly (Singapore Airlines, 2009). The marketing dodging has been consistent all the way, the message that SIA wants to send across to the target market is that it is the best airway in its segment. SIA joined the Star Alliance in 2000, which is the first and the largest respiratory tract concretion of its kind (Singapore Airlines, 2009). The Singapore young woman scheme was a very potent idea that gave SIA the push it needed and went on to become a very successful stigma icon (Roll, 2009).This brand personality of Singapore Girl further helps them reaffirm their positi on as an airline which provides juicy direct of hospitality. Brand positioning for SIA is depicted in the plot faten below. The strategy accommodate by SIA is to position themselves as a higher(prenominal) reference and high value brand and especially with the Singapore Girl ideal they show the level of hospitality offered to the customers. SIA positions itself away from the competitors in every class, be it rescue class, business class or first class. In the to a higher place diagram AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the current scenario, where premium airlines are slip of paper scratch off onboard services to reduce prices in order to compete with the inexpensive carriers, SIA continues to suffer their brand image. The management of SIA believes that there are customers willing to croak a good amount for quality products and services (Roll, 2009). So facial expression for high end customers is not an issue, rather their jo b 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 military group (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 available 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 effort 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 r ural 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 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 all the way differentiated these two segments by catering to their heterogonous need.In order to get in their existing market and expand their revenue base they are also focusing on additional segment based on consumer loyalty. The increase revenue of SIA has been depicted 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 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 single(a) in-fl ight service with respect to variety of cuisines being served, exotic drinks and special seating room 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 discriminator 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 bring in additional revenues for the company a nd 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, savor certain privileges such as they are allowed to fly on misfortunate 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 fragment of the market into various different segments and then focusing on salient(ip) 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 discern ing 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). pack 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 scene 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 believe while travelling, be it comforts, a hospitable crew or an fire 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 conception the y 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 higher up diagram AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the current scenario, where premium airlines are cold shoulder 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 willing to reach 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 work (Wirtz et al, 2003).Market SegmentationMarket segmentation Market consists of large number of actual and potential customers. The process of splitting the marke t 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 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 preferences. Its believed that on an average in aviation industry elite travelers contribute up to 50% of revenue though they add up to less th an 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 discriminator 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, 2 007). 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 marketing 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 service s 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 diag ram 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 willing 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).