Customer segmentation is a marketing method that divides the customers in sub-groups, that share similar characteristics. Some good examples of innovative launches include: For 2006, NIVEA Sun has developed 'Long Lasting Water Resistance' for children, a product which has increased the water resistance of sun protection from 80 minutes to 120 minutes. Case studies. I love case studies because they are (or should be) short, simple, and most importantly - benefit oriented. Likeability is all about enjoyment. Every year, a 'Sun Sense' primary school resource pack is distributed to over 10,000 teachers to communicate this key message. fun-loving - places to party, with festivals and events. Market segmentation splits up a market into different types (segments) to enable a business to better target its products to the relevant customers. This is beginning to change, with major tour operator partners in the United Kingdom enticing the YIT’s to book before they leave. The sun care market consists of different consumers with differing needs. They will look to immerse themselves in the experiences and life-styles of Australians and they are attracted as much by the potential experience as by the prospect of visiting the main tourist areas. working with a range of partners to convert strong interest levels in visiting Australia into actual travel decisions. The targets become performance indicators against which success can be assessed eg targets of 3 million visitors a year, each staying on average for at least 10 days, spending on average 1,000 dollars, and with more than half being under 30 years of age. It is vital that skin is adequately protected against the sunâs harmful effects (although no sunscreen can provide total protection). Moreover, busi-nesses that have not traditionally embraced mar-keting in general or segmentation in particular, see it … Segmentation occurs when a market is split into sub-markets (segments) which can respond in similar ways to different marketing activities. This case study focuses upon the strategies used by the Australian Tourist Commission to win over segments of tourism and travel business. 7 B2B Video Marketing Strategies You Must Know, Compare Online Hosting Launches Offering Comparison of the Best Web Hosting Services, contains consumers with similar needs or tastes. Market segmentation is the process of splitting a business’ target market into different groups. Key trade partners have introduced visa processing services along with job contacts and advisory services to encourage backpackers to make use of the opportunity. Our Market Segmentation Analytics help you classify your market into various smaller markets comprising of consumers with a similar taste, demand and preference.This helps our clients target each market segment with specific market strategies and gain maximum optimization. • Segmentation should be “customer-in” versus business- or product-out. Core Curriculum Readings in Marketing cover fundamental concepts, theories, and frameworks in marketing. Each segment: This can be at a macro level (e.g. Sales & Marketing; Market Segmentation, Target Market Selection, and Positioning ... market segmentation, target market selection, and product positioning. Presenation, market segmentation worksheet and exam style questions for extension task. A vision paints a picture of what you are trying to achieve with your brand in a simple sentence. Author: Created by Zineb2014. It uses a range of features that help consumers to identify and develop perceptions about a range of products which convey a series of attributes, benefits, values and promises. The marketer’s job is to understand consumers’ attitudes towards products and to translate their positive support or interest into some form of action. B2B International will show you how to: Differentiate products/services in line with your customers As a result they require extra protection and sun screens that are specifically developed for their skin. ... Market Segmentation Engagement: A Case Study on How We Assisted a Leading Polymer Manufacturer to Ma... READ MORE. Market Segmentation Markets are Heterogeneous. You are here: Home / Education / Applications Notebook / Case Studies by Market Segment Choose from the market segments listed below to view RTP Company application stories … As a brand it has achieved this through continually segmenting its consumers in order to: The key proposition of the NIVEA Sun brand is protection. Six Types of Segmentation Marketing 8 Case Study 12 Performance Solutions Group, LLC. In fact it is Australia’s fourth largest earner of foreign exchange dollars and represents 11.2% of total export earnings from the 5 million international visitors in the June 2001 financial year. This influx of visitors from overseas has greatly benefited the Australian economy. reinforcing the immediate protection message. Alexander Tolpygo. Preview. It allows young working holiday makers to have an extended holiday by supplementing their incomes through employment. For example, European long-haul travellers view Australia as a good opportunity for individual experiences that the mass tourist destinations of the Mediterranean cannot provide. The ATC also participates in trade events and provides regular newsletters for industry partners. Alexander Tolpygo. 6 segmentation case studies open up new revenues for brands By Rob Petersen In Case Studies Posted August 13, 2018 0 Comment(s) Segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or … Sun care is a serious issue for all and the protection message is key to the NIVEA Sun brand proposition. Inbound tourism is an important export industry for Australia that generates more thana quarter of a million jobs. The ATC also received a huge boost with the opportunities presented by images from the Sydney Olympics, the Paralympic Games in 2000 and the millennium celebrations. We help clients to deliver a superior customer experience and drive greater profitability and long-term loyalty. Bitcoin is the new digital gold, or is it? Rather than focus on one particular concept or issue (e.g., segmentation, product line depth), the case challenges students to develop a marketing strategy for a food and beverage manufacturer's new line of sports beverages, which contain beneficial antioxidants. the uniqueness of many Australian experiences. The members of each group have at least one important factor in … GCSE Business Studies Market Segmentation Presentation and Worksheet. ATC’s experience in recent years exemplifies the potential rewards that stem from a disciplined and focused approach to marketing. case study on market segmentation 1. bahir dar university ethiopian instiute of textile and fashion technology (eitex) department of garment engineering assignment 1 apperal marketing and merchandising: case study on market demographic: company under armour prepared by section a peer group 8 name id 1. The Brand Australia campaign has been launched across the major markets of Europe. The increasing number of alternative, affordable holiday opportunities on offer represents a considerable, ongoing challenge for the Australian Tourist Commission (ATC). Many are on a ‘gap year’ and travel either on their own or with friends. It follows from this that marketers of travel and tourism products need to have a good understanding of their customers and must also develop strategies that recognise and take into account the likely response of different consumer groups. ATC’s mission statement says: ‘We promote Australia internationally to create a sustainable advantage for our tourism industry, for the benefit of all Australians.’ Two of ATC’s principal objectives are to: To meet these objectives, the ATC provides a range of services, including: It is generally recognised that marketers cannot develop strategies that appeal to all buyers in all markets: a broad sweep to catch all does not work. Part of 7 B2B Video Marketing Strategies You Must Know, Compare Online Hosting Launches Offering Comparison of the Best Web Hosting Services, increase the number of visitors to Australia from overseas. June 21, 2017. Business Challenge. An efficient marketing mix targets certain segments and then devises a specific package for each segment. Large companies often segment their markets by conducting extensive market research. Having targeted the youth market, it was important to develop a message that elicited an appropriate response. Market Segmentation. The ideal case study paints a picture of a business challenge faced by a client, the solution you devised to tackle that problem, and a summary of the results backed up with solid facts. Brand Holiday Australia promotes three virtuous images, conveying the idea that Australia and Australians are: These positive images are then linked to tangible product benefits (eg safe adventure, the awe inspiring feeling of vast landscapes) as well as to a range of brand attributes, the ease of experiencing the landscapes and the open outdoor lifestyle. You can download resources for this case study below, © Copyright © 1995-2020 Business Case Studies, Business expansion through training and development, Managing change through training and development, Bringing an innovative product to market: assure®, Who dares wins success through intelligent risk, BECOSAN® at Amazon Prime â Polished concrete for logistics. In developing these opportunities, the ATC produces a couple of key consumer publications that are the main tool for providing information to the consumer. B2B segmentation research can help segment your market and so enable an effective marketing strategy, leading to competitive advantage in the marketplace. In addition the UK is the third largest source market for visitors to Australia behind Japan and New Zealand. NIVEA identifies market segments that meet individual consumer needs. Understanding segmentation enables NIVEA Sun to maintain a Number 1 value position in protection and after sun in the UK. Childrenâs skin is thinner and its repair mechanism is not yet fully developed. Segmentation divides them into Homogeneous Sub-Units. This allows children to be safer in the sun for longer. Children are not purchasers of sun care. NIVEA Sun is a major international sun care brand, recognised worldwide as a leader in sun care research and development. ATC was established in 1967 to promote Australia as an international tourism destination. Access thousands of our segmentation online marketing resources here. This is the case because analysis often turns up two or more different sets of segments, that is two or more different ways of dividing the market. Thus, product, marketing and engineering teams can center the strategy from go-to-market to product development and communication around each sub-group. Market segmentation research includes more “art” (although no less "science") than other types of market research. It is generally recognised that marketers cannot develop strategies that appeal to all buyers in all markets: a broad sweep to catch all does not work. This research can be too expensive for small businesses to invest in, but there are alternative ways for a small business to practice market segmentation. Every billion dollars in tourism export earnings creates 11,367 jobs and export earnings is expected to grow to 30.8 billion in 2008-9. • Segmentation is the foundation for distinctive and sustainable competitive advantage. Putting theory into practice in real-life business situations. ... Harvard Business Publishing is an affiliate of Harvard Business School. NIVEA Sun is the market leader within this segment in the UK, which has been growing rapidly. NIVEA Sun appeals to, and is used by men, women and children with quality products to meet all needs. GCSE Business Studies Market Segmentation Presentation and Worksheet OCR Syallabus. The confusion can arise because different hotels So now that we know what behavioural segmentation is, how it came about and why we use it in the business world, let’s take a look at these 3 case studies: Coca-Cola, Airbnb, and Netflix. Does Market Segmentation Require Research? Much of this communication is now done through web based activity via their corporate website www.atc.australia.com. June 21, 2017. Continual segmentation is vital to fully understand consumer needs and changing habits. There are three main phases involved in serving a distinct market: Phase 1: SEGMENTATIONPhase 2: TARGETINGPhase 3: POSITIONING. The ATC’s marketing strategy involves both trade marketing to organisations as well as consumer marketing directly to travellers. within a specific category). We offer segmentation techniques based on customer Demographics , Psycho-graphic as well as Behavioristic Segmentation. The essence of the Brand Holiday Australia strategy was to identify the brand with being ‘naturally free-spirited’. Australia’s appeal is strongly driven by people’s perceptions of the open and outdoor lifestyle, as well as by its natural beauty and space. If people like a brand/product they will continue to buy it. Created: Apr 17, 2019. "Segmenting" is a marketing term for dividing up your audience into groups according to particular criteria. They smashed the 15% savings they promised us, which included delivering a significant amount of refunds” Terry Reed, General Electric EMEA Telecoms Procurement Director helping travellers to plan their trip to Australia through the provision of destination information, helping businesses to co-operate in mutually supportive tourist ventures. Marketing of such all sub-brands can be challenging to management and confusing for guests. Identify your potential customers. A rewritten version of an earlier note. Segmentation occurs when a market is split into sub-markets (segments) which can respond in similar ways to different marketing activities. Many adults use self-tan to have an all year round sun kissed glow. the easiest travel options to move around Australia. Penetration relates to the percentage of potential customers that purchase a product. The richness of the Australian experience creates many opportunities for targeting younger travellers. You can download resources for this case study below, © Copyright © 1995-2020 Business Case Studies, Bringing an innovative product to market: assure®, Who dares wins success through intelligent risk, BECOSAN® at Amazon Prime – Polished concrete for logistics. Market segmentation Segmentation is how a business splits up its target market and is based on location, demographics, behaviour, lifestyle, income and age. As a result, there has been a significant growth of Europeans arriving in Australia increasing its market share of international tourism: at the same time, total visitor expenditure by overseas visitors within Australia has increased and this has increased export earnings from tourism as well as the number of people working within the tourism industry. Overview 12 Segmentation Marketing: Why It Should Be Implemented 13 Recommendations 15 Use Benefit Segmentation to Market Specific Products to the Customer 15 Use Geographic Segmentation to Market to a Specific Area 16 ... Makana Solutions needed an inexpensive way to reach the elusive small business market. However, NIVEA Sun recognises it can play an important part in educating children from a young age to be safer when in the sun. Market Segmentation. Coca-Cola is the largest soft drink company globally and is one of the most valuable and recognisable brands in the world. Market segmentation is a process of dividing a heterogeneous market into relatively more homogenous segments based on certain parameters like geographic, demographic, psychographic, and behavioural. Majo As you will see, there are a variety of products in each, which can also be segmented as shown. NIVEA Sun provides products that enable people to be as safe as possible. The UK positioning statement for Australia seeks to give the Australian experience a unique position in a clearly defined market. In this instance, the product is Australia and the market is all travel experiences and opportunities open to YIT’s. The diagram above shows the three main product segments that make up the NIVEA Sun range. NIVEA Sun's vision is "To be the Number 1 brand in the UK sun care market in penetration, sales and likeability.". The UK market is worth £173.6m with an overall category purchase penetration of 33% (usage penetration is higher). "Green Ox" was written specifically for a midterm exam in an MBA marketing management class. ATC has maximised the efficiency of its marketing efforts by breaking up the travel market into specific market segments, including: For the purpose of this study, we will focus on the young independent travellers (YIT’s). Australia is a desirable country to both live and work (no language problems for the UK traveller) and a working visa provides a perfect opportunity to combine travelling with working. Women are the main purchasers of sun care for the family. With young travellers, the approach was to communicate the aspects of Australia that would most appeal to them: At the same time, it was important to help young people to think about what they do within Australia by highlighting: Australia’s working holiday maker scheme aims to promote international understanding by allowing young people to experience the culture of another country. These bases range from age, gender, etc. Positioning involves using the marketing mix in a way that takes into account the thoughts and perceptions of consumers when placing the product in a particular segment of the market. This is reflected in above-the-line (advertising) communications, generally targeted towards a female audience. segmentation solution but from the programs leveraging this solution. Determine how best to engage their interest and commitment. This is because buyers have different characteristics and needs as well as different ways of going about buying. The brand is conveyed as being: The values of the brand help to show what it stands for and what it believes in. educating that protection can lead to safer tanning. • There is both a science and an “art” to designing and evaluating a successful segmentation. For classroom use in higher education, this Reading is accompanied by a Teaching Note, test bank, and exhibit slides. Home; Case studies; ... Market Size Analysis Enhances Market Share and Business Stability for a European Automotive Major. Over the past 10 years the company has grown rapidly in the UK by developing a balanced and well managed portfolio of brands. In particular, it looks at how the ATC has developed a strategy for attracting young travellers to Australia. In recent years, Australia has become an increasingly desirable holiday destination for UK travellers due to its diversity as a travel destination, beaches, outback, rainforests, city lifestyle and adventure. Our specialist b2b approach combines active listening at every touchpoint with sophisticated analytical and segmentation techniques to bring the voice of the customer into the heart of your business. Case Studies: Segmentation. Select any of the popular topics below to narrow your search. Segmentation is the tool that enables NIVEA Sun to identify different groups of customers, and provide the best possible products to meet individual requirements. The main elements of this proposition include: This last point relates to the immediate protection formula which was developed by NIVEA Sun and launched in 2005 to provide proven instant and full UVA and UVB protection. The UK has the biggest sales of NIVEA Sun across Beiersdorf within Europe. Market segmentation is a typical analysis that allows companies to better understand their customer base. Focal decisions include choosing a segmenta Know your product and its attributes. wearing a sun hat and avoiding midday sun). Beiersdorf is the international skin care company behind the leading brands NIVEA, ELASTOPLAST, ATRIXO and EUCERIN. Australia has many attractions and is one of the world’s best backpacking holiday destinations. However, in 2005, NIVEA Sun targeted male consumers with its immediate protection message in press advertising. The brand also aims to bring fun to the market through recognising situations when sun care products are applied. Case Studies. This was presented in a fun and 'non-serious' way in order to appeal to a male audience. In addition NIVEA Sun creates innovative marketing communication. NIVEA Sun provides a range of lotions and sprays targeted at different climates and to users with different skin types. Multiple branding is a common marketing technique used by the most hotel chains having several sub-brands. Marketing Segmentation 3 Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study. In contrast to protection and after sun, the self-tan category is concerned mostly with cosmetic appeal. When trying to convert consumers’ expressed interest in visiting Australia into actual visitation, the starting point is to understand the behaviour of targeted consumers. Someone with fair skin may be well protected with a SPF 20 product when in England, but if they were in Barbados they would need SPF 40. Branding supports the positioning process. NIVEA Sun follows a strategy of product innovation, in order to achieve its long-term objectives. the nature, attributes and appeal of their own product(s), the buying behaviour of their customers (length of stay, money to spend on travel), independent adventurers aged 25-34 (primary market), young independent travellers (YIT’s) aged 18-24 (secondary market), innovative - lifestyle, food and wine, culture, active and sporty - beaches, trails, surf and sports facilities. Market segmentation 223 globalization of business expands the scope of operations and requires a new approach to local, regional and global segments. Younger travellers look for a sense of adventure and are attracted to the more challenging and active elements such as snorkeling, surfing, white water rafting and bungee jumping. Rethinking customer segmentation Traditionally, insurance organizations tried to glean directional insights about their customers’ needs, attitudes, and behaviors through demographics. NIVEA Sun is the protection segment market leader by value (i.e. Business Management Studies Case study 1 Case Study on Segmentation, Targeting & Positioning spray products that are easy to apply (particularly appealing to men), a coloured formulation for children's sun products (making application more fun). reformulation of the products to offer immediate protection. Case Studies Media Articles Careers Contact June 21, 2017. Australia is perceived as a safe destination for first time travellers but still has the adventure based element which is one of the primary motivators for this target market. 10 case studies that show the power of email segmentation By David Moth March 19th 2014 12:43 In spite of all the advances and innovations in digital marketing, good old email remains as one of the most effective channels for driving traffic and conversions. Bitcoin is the new digital gold, or is it? European travellers also look for novel experiences in unfamiliar environments and amid different cultures. For example, YIT’s are typically single students who make their own travel arrangements. This Reading introduces two of the integral parts of any marketing strategy: segmentation and targeting. total health and beauty market) and at a micro level (i.e. Sales relate either to value (the money spent on the product) or volume (the quantities sold). Segmentation Group Case Studies - “The different businesses in GE were working in silos before Nick and his team came along. It is a LAND of NATURAL WONDERS and UNSPOILT WIDE-OPEN SPACES’. These are the annual Travellers Guide and a consumer website, australia.com. It can establish a direction for itself by: Setting objectives also establishes targets by which to measure progress. This is also the result of cheap flights and the strength of the £ sterling against the Australian dollar; more than 50% of all European arrivals are from the UK. This takes the form of timely new product launches to enable the brand to more closely meet the needs of different types of consumers. Customer Segmentation and Business Model Evolution at Unbounce Case Solution,Customer Segmentation and Business Model Evolution at Unbounce Case Analysis, Customer Segmentation and Business Model Evolution at Unbounce Case Study Solution, In 2011, the co-founder of Unbounce, a software service provider startup located in Vancouver, is contemplating the approaches to diversify the business In the last year, the Australian High Commission has issued just under 40,000 working holiday visas to the UK market (the backpacker market represents more than 100,000 visitors). more money is spent on NIVEA Sun protection products than any other sun care brand in the UK). Applications come from those between 18 and 30 without dependent children, and show that the main reason for coming to Australia is for a cultural and social holiday that promotes mutual understanding between Australia and other nations and they intend to supplement their funds with temporary work. For countries that depend heavily on tourism for their export earnings and for domestic employment, ‘getting it right’ is critical to their economic wellbeing. One key way to achieve the vision is to provide innovative solutions to market needs. The international tourist industry however, is highly competitive and Europeans wishing to travel have many short, medium and long-haul destinations from which to choose. In this HSC Business Studies video, we take a detailed look at market segmentation by using the case study of BMW and Mercedes Benz. Protection is the largest segment in the sun care market with a purchase penetration of 28%. The working holiday scheme aims to provide opportunities for young people (18-30) to holiday in Australia for up to a year while supplementing their funds through work. It’s a familiar formula, and it works. Alexander Tolpygo. This was researched and developed following consumer studies which found that consumers often failed to apply sun screens 20-30 minutes before sun exposure (despite packaging instructions). is best satisfied by products targeted to meet their specific needs. The level of protection required for each segment will vary according to generalised skin types (as seen below): Skin type applies to children, as well as adults. to psychographic factors like attitude, interest, values, etc. This helps provide appropriate products to meet their needs. This has been a key success factor for NIVEA Sun. To do this, they need to understand: They must then develop sophisticated marketing strategies that are carefully aimed at targeted groups of consumers. My Dashboard; MMGT 125 - 2917; Pages; Case Study 2.1: Lego’s Market Segmentation Strategy A brand portfolio should consist of a range of products which support each other, irrespective of which categories they operate in. 5 1 customer reviews. When choosing sunscreens there are two important factors to consider: The chart below shows segmentation by skin type. In a competitive environment an organisation needs to have a clear idea of what it is trying to achieve and where it is heading. Rather than trying to compete within an entire market in a broad, unfocused way, organisations have to recognise and identify those market segments that they can best serve. YIT’s see themselves as travellers seeking experiences rather than as tourists seeing sights opting for low-price products, including hostel accommodation, bus passes, sporting activities, adventure and an immersion in the "fun" Australian lifestyle and people. maximise the benefits to Australia from overseas visitors. Market segmentation. First up is Coca-Cola. The NIVEA range includes product types ranging from female face and body products to men's shaving gels, through to deodorants and sun care products. A marketing communicator starts with a clear target audience in mind. Segmenting is dividing a group into subgroups according to some set ‘basis’. For example, the ATC works closely with tour operators (eg STA, USIT, Trailfinders), with airlines (eg Qantas and Singapore Airlines) and with other organisations that are seeking to tap into the Australian market based in the UK. Traditionally, they were perceived to have less funds for travel and would book their ground arrangements in Australia. It aims to develop communications and activities that are consistent with the perception that: ‘a holiday in Australia offers the LIBERATION of an OPEN OUTDOOR LIFESTYLE and OPTIMISTIC attitude to life. NIVEA Sun also encourages the use of other forms of protection (e.g. This is because buyers have different characteristics and needs as well as different ways of going about buying. 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In trade events and provides regular newsletters for industry partners in higher education, this Reading accompanied... Customer experience and drive greater profitability and long-term loyalty that share similar characteristics segment. To appeal to a male audience marketing communicator starts with a range of products in each, which been. Land of NATURAL WONDERS and UNSPOILT WIDE-OPEN SPACES ’ theories, and frameworks in marketing who make their own with... Was to identify the brand Australia campaign has been launched across the major markets of Europe for longer specific.... Go-To-Market to product development and communication around each sub-group has been growing rapidly package for each segment can! Serving a distinct market: Phase 1: SEGMENTATIONPhase 2: TARGETINGPhase 3: positioning help clients to deliver superior! A disciplined and focused approach to marketing devises a specific package for each segment below shows by... Affiliate of Harvard business School of segmentation marketing 8 Case Study on how we Assisted a Polymer. Instance, the self-tan category is concerned mostly with cosmetic appeal kissed glow of. The nivea Sun targeted male consumers with differing needs brand with being ‘ naturally free-spirited ’ involves. Value position in a competitive environment an organisation needs to have an all year round Sun kissed glow, was. Because they are ( or should be ) short, simple, and in! Attractions and is one of the opportunity Performance Solutions group, LLC by men, women children... Develop a message that elicited an appropriate response to bring fun to the nivea Sun provides a range partners. Narrow your search age, gender, etc for classroom use in education... Is spent on nivea Sun targeted male consumers with its immediate protection message press!
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