Market Segmentation

Division of tradeing for Kit qat chocolate bar, into geographic , demographic, psychographic and behavioural discussion sectionation. geographical segmentation The market is broadly divided into Urban (cities and towns) and Rural (villages). Kit true cat caters the exalted urban need by making fruits uncommitted that to a fault with a variety with the help of which the rural crowd can be kept attracted. Rural needs argon in any case kept in sense and there is nothing even required for Kit Kat to make an effort to attract rural crowd because of the footing.Kit Kats charge is in truth reason fitting 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 genuinely minor change in its price, it can still target the rural crowd by making them sensible that compared to their competitors Cadbury their product is cheaper and much affordable. Demographic segmen tation With the youth population getting outsizer, Kit Kat looks to take an advantage of that.They suck in also segmented the market for children, adults and decrepit people. Kit Kat is a type of a chocolate that is light and can be consumed by every age conclave. Majority of the client floor 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 much(prenominal) that any income group can afford it. Psychographic segmentationMarket partitioningMarket segmentation Market consists of large subject of actual and potential customers. The process of ripping the market into different groups or segments establish on the needs, characteristics or buyer behavior is c totallyed as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). capital of capital of capital of Singapore Airlines (SIA) has use traditional approach adoptive by legacy carriers for segmentation. SIA focuses on business travelers and the price sensitive leisure travelers. The business paradigm of SIA has understandably differentiate these two segments by catering to their heterogonous need.In order to penetrate their existing market and expand their revenue base they are also management on additional segment found on consumer committedness. The increasing revenue of SIA has been represent in app depotix 1. Detailed analysis of segmentation strategy employ 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 bonnie in aviation industry elite travelers render up to 50% of revenue though they add up to less than 20% in rider issue (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, alien drinks and special seating comfort (Wirtz and Johnston, 2003). At the identical time since the other segment i. e. the leisure travelers form the major chunk of passengers their preferences also cannot be ignored. They besides are given in-flight services which can be termed outstrip 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 differentiator analysis. Business travelers demand more working space, internet and telephone connections whereas leisure travelers demand more in-flight frolic features (Singapore Airlines, 2009) behavioral variables Brand committedness 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 ships company and this is hardly the reason why SIA has chosen loyalty as a variable for segmentation. SIA gives KrisFlyer and PPS rescript membership to their loyal customers in a bid to go on their loyalty. KrisFlyer silver-tongued group members, enjoy certain privileges such as they are allowed to fly on short notice even if the reservation is not confirmed. too PPS club members are given privileges like forgive accident and travel insurance, increased baggage allowance etc. Singapore Airlines, 2009) Targeting Target marketing fundamentally refers to the subdivision of the market into various different segments and thence focusing on prominent and significant key segments (Kotler et al, 2007). SIA targets customers based on lifestyle, income group and cordial class. modus vivendi 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 superior 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 exchange premium airline which focuses on providing range 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. brotherly soma 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 entrust go for a high end target, so being a luxury airline SIA targets the high social classes. Positioning Positioning can be be as the process of framing the mountain chain of a company in the view of the target market, based on the products and services offered (Kotler et al, 2007). SIA flecks it egotism as a premium luxury carrier. SIA portrays itself as an airline that provides all t he luxuries that one may desire while travelling, be it comforts, a hospitable crew or an en resistantle in-flight experience.The autochthonic core 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 glow 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 lady friend strategy was a very influential idea that gave SIA the push it needed and went on to become a very successful brand moving-picture show (Roll, 2009).This brand personality of Singapore misfire further helps them reaffirm their position as an airline which provides high level of cordial reception. 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 supra diagram AIQ AirAsia ALK Srilankan Airlines DLH LufthansaSIA Singapore Airlines In the menstruum scenario, where premium airlines are cutting down onboard services to reduce prices in order to compete with the affordable carriers, SIA continues to fight back 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 faraway SIA has been able to create, what they refer to as the Wow perfume (Wirtz et al, 2003).Market SegmentationDivision of marketing for Kit Kat chocolate bar, i nto 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 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 m arket 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 clearly differentiated these two segments by catering to their heterogo nous 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 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 can not 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 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 a llowed 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 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 curre nt 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).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 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 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, 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 clu b 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 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 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).