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.
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Major Segmentation Variables for Consumer Markets
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Geographic region
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Pacific Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England
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City or metro size
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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
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Density
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Urban, suburban, rural
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Climate
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Northern, southern
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Demographic age
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Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 64+
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Family size
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1-2, 3-4, 5+
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Family life cycle
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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
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Gender
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Male, female
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Income
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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
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Occupation
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Professional and technical workers; managers, officials, and proprietors; clerical salespeople; craftspeople; forepersons; operatives; farmers; retired people; students; homemakers; unemployed people
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Education
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Grade school or less; some high school; high school graduate; some college; college graduate
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Religion
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Catholic, Protestant, Jewish, Muslim, Hindu, other
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Race
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White, Black, Asian, Hispanic
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Generation
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Baby boomers, Generation Xers
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Nationality
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North American, South American, British, French, German, Italian, Japanese
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Social class
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Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers
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Psychographic lifestyle
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Culture-oriented, sports-oriented, outdoor-oriented
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Personality
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Compulsive, gregarious, authoritarian, ambitious
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Behavioral occasions
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Regular occasion, special occasion
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Benefits
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Quality, service, economy, speed
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User status
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Nonuser, ex-user, potential user, first-time user, regular user
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Usage rate
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Light user, medium user, heavy user
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Loyalty status
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None, medium, strong, absolute
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Readiness stage
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Unaware, aware, informed interested, desirous, intending to buy
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Attitude toward product
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Enthusiastic, positive, indifferent, negative, hostile
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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?
4. Conclusions