Hi, everyone!
I hope you are safe wherever you are.
In this article, I will share my thoughts on an article entitled The Lesson the Locals Learnt a Little Too Quickly.
This journal is an eye-opener to companies that are expanding through different customer segments. To sell to your customer, you must know your customer. To reach your audience, you must know who you’re talking to and where to find them.
You cannot solve your customer’s needs or appeal to their wants and desires without having some understanding of what they are. Market segmentation is a core marketing technique that can help.
For example, consumers who live in high dense locations like living in blocks are not necessarily buying bulky items from an American retailer such as Wal-Mart. When it comes to market strategy, the organization is the key to success.
Market segmentation breaks down your target market into smaller, more manageable groups. Market segmentation enables companies to better serve customers by identifying and marketing different products and services to different consumer sets.
For this scenario, the companies should focus on Demographic and behavioral segmentation. Demographics are people descriptors, for example, age, gender, ethnicity, or disposable income.
Luxury products need to be targeted at those who can afford them. Some things are proscribed by certain belief systems. Young people rarely need zimmer-frames. On the other hand, behavioral segmentation looks at the behavioral patterns of current and potential customers and seeks to identify common traits.
As was mentioned, Hong Kongers do not need bulky items as they mostly live in tiny apartments. For the biggest fast food in the Philippines, Jollibee opened its first outlet in the Dubai Mall in 2015 and has since expanded to four outlets across the market, with further openings planned.
When the company has expanded the Jollibee brand to new markets, however, it has done so, unapologetically, to specifically target local populations of Filipinos, rather than modifying the concept for broader appeal.
The format, menu offerings, overall experience – and even price points – do not stray far from the original concept Filipinos will remember from home in the Philippines. For this reason, Jollibee’s global presence is centered on the US, the Middle East, and Southeast Asia, regions with large populations of Filipinos.
Bad market segmentation research is a waste of your time, money, and energy. Therefore, it is worth it for a company to invest in a team of good employees and researchers, so the company can clearly define segments and properly market to them. These segments may be an advantage for competitors. This end goal will dramatically improve marketing efforts – in turn – boosting market share and profits.
Thank you guys for reading this article! :)
Until next time! :)