Why You Should Care About Market Segmentation?
Your products are great and you’ve spent the big bucks on your advertising and messaging but yet the results yielded are not adequate enough? Have you ever had the feeling like your marketing efforts are like singing in the rain? You’re singing loudly, but no one listens to you! This is usually the case when market segmentation is not done right or in some cases not done at all.
A Study done by Harvard Business claimed that in the US, 85% of 30,000 new product launches failed because of poor market segmentation. Segmentation is all about reaching the right customer at the right time. It involves narrowing a broad target market into subsets of consumers who have common needs and for particular goods and services.
I have chosen the energy drinks industry and segmented the target audience into 5 categories.
There are 6 ways that can be used to segment your market: demographic, psychographic, geographic, occasion, behavior and benefits sought. I have used 5 of the 6 types to segment my target. I have further drilled it down by segmenting my target market.
The Extra-Mile Club: I have selected the name because this target segment is motivated individuals who are sports enthusiasts and will push their boundaries. I have put an image of runner who is motivated to go the extra mile to complete his goals
The All Nighters: Students who pull all-nighters to complete assignments and syllabus for their exams, hence the selection of the name. I have chosen an image of a student studying in a library at night trying to keep awake to get his assignment done.
Keyboard Warriors: This segment consists of hardcore gamers. They are passionate and always want to win the game they are playing, hence I have chosen the name Keyboard Warriors. I have selected the image of an angry gamer who is trying to win the game he’s playing.
The Voyagers: For this segment, I have picked the name Voyagers because they are adventurous and like to travel long distances in their car and need to be alert at all times during their journey.I have selected the image of a man driving long distances into the scenic mountains.
The High Achievers: This segment consists of working professionals who work late hours in the office and need the energy boost to help them achieve their targets at work. For this segment, I have selected the image of two women working to complete a task in the office
I have given a segmentation overview and dived in with a more detailed explanation of each customer segment in the following images:
The Extra-Mile Club
The All Nighters
The Keyboard Warriors
Here’s my Mockup Ad
This ad is targeted towards “The Extra-Mile Club” segment. The platform chosen is Instagram because it is widely used by this segment and presents a huge opportunity to target them. For the caption, I have spoken about the “Never Say Die” attitude because this segment can relate towards achieving more and putting in that effort to go the extra mile and Energy X can help fuel that desire. I have chosen “#achieve” as a hashtag and also tagged the brand in the caption. The image chosen is that of a runner climbing an uphill mountain to remain fit and train hard which represents lifestyle and age of the target market.
- “Free Image on Pixabay – Runner, Male, Running, Jogging.” Free Photo: Runner, Male, Running, Jogging – Free Image on Pixabay – 1814460, pixabay.com/en/runner-male-running-jogging-1814460/.
- “Free Image on Pixabay – Library, Study, Alone, Reading.” Free Photo: Library, Study, Alone, Reading – Free Image on Pixabay – 2414380, pixabay.com/en/library-study-alone-reading-male-2414380/.
- “Free Image on Pixabay – Women, Teamwork, Team, Business.” Free Photo: Women, Teamwork, Team, Business – Free Image on Pixabay – 1209678, pixabay.com/en/women-teamwork-team-business-1209678/.
- “Free Image on Pixabay – People, Man, Guy, Driver, Driving.” Free Photo: People, Man, Guy, Driver, Driving – Free Image on Pixabay – 2570576, pixabay.com/en/people-man-guy-driver-driving-2570576/.
- “Man Working on Computer Photo by Mark Cruz (@mark_crz) on Unsplash.” Beautiful Free Images, unsplash.com/photos/VW2oU66mwbc.
- Redirect Notice, www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwj6wNGi2OrXAhXFx4MKHUFZD98QjhwIBQ&url=https%3A%2F%2Fgearjunkie.com%2Fsalomon-running-teacher&psig=AOvVaw3cRwkU3u5_2lmFYGQMZVFC&ust=1512282152796794.