Introduction
Buy More company has a lot of products in the markets all over the world. We have a high customer base because of differential market strategies. However, after a serious market research, we realized that one of our brands is not selling as expected. With the help of Nielsen prism segmentation system, my company is planning to review the customer base for Skechers Shape Up.
The reason for this option is because it provides flexible platform to make decisions that are consistent with facts locally, nationally and even in households (Lazer, 2001). By creating customer segments for this brand, it will be easy to know who to sell to, the demographic and the lifestyle of the target market.
The Target market
The company has split the market into segments and various strategies are put in place to handle each target group differently. It is a cheap and efficient way to increase sales because we will be user-specific when it comes to pricing, promotion and distribution (Michman, 200).
Demographics and lifestyles
Our five segment models resulted from demographic drivers such as age, income and the proximity of a customer to urban areas. This brand could not be classified under social segments but instead we borrowed some lifestyle aspects of our customers to split the market. In terms of demographics, the population of the people influences market strategies (Simkin, 2002).
The company has devised different ways of reaching out to densely populated zones. This has brought a need for more salesmen. As a result, the company is already recruiting more staff. The lifestyles of different generation due to demographic aspects resulted in our segments.
Consumer segments and marketing strategies
As Buy More, our customers can be classified into five segments. First, we have ready-to-buy customers who identify with Skechers Shape Up. This consists mostly of college students and a few sportsmen. The students mostly use them with jeans and t-shirt because they need rubbers as they always walk.
We frequently deliver this product to those who go for morning jogs as they consider it fit to run. They always need the product so there is a little need to market the brand. Our salesmen and women can, however, find out their requirements so that the company can fill it.
The other segment involves old people who do not have children or families that need the product. We call them potential customers because they are always not in a hurry to buy the brand. They either buy for themselves (which rarely happens) or give them as gifts to friends or relatives. We, therefore, plan to conduct a messaging strategy to easily make sales. Assigning someone to do the job is also included in the company’s plan.
Skechers Shape Up also has repeat-customers who have expressed their loyalty to us over time. We call them repeat-customers because of the frequency at which they are seen at Buy More. They know of the latest developments in our company, offers and other customer benefits. Maintaining such a customer is our worry. Therefore, warranties must be given to keep them coming. They are also interested in some of our products and in most cases express their satisfaction.
We have the discount customers. They are well informed, connected and less loyal to our brand. They often search all over for the best deals and their decisions depend on how low or high the mark-down is and whether the product satisfies their needs. We have created large fonts in our websites to carter for both the old and the young generation.
These advertisement strategies over the internet are also characterized by competitions where people play games over the internet and the winner parts with two pairs of our product. Additionally, we will have permanent discount seasons in a bid to capture the attention of discount customers.
Unlike other brands from our company, Skechers Shape Up sales is characterized by impulse buying customers. The young generation often makes decisions on the spot for what they think is fashionable at a particular time without any based reason. Quality strategy and durability will help change the perception of these buyers.
Once they realize the product is good, they are most likely to have another chance and a genuine reason to make purchase. They may not have a reason to buy the product but with efficient customer service right from reception to the sale can help bring this segment back.
Differential strategies
Three basic differential strategies will help us achieve our goals. These are accessibility, convenience and price. In order to increate accessibility and convenience, we are recruiting more salespersons and opening more branches to make Skechers Shape Up available to the target markets and at the right time.
We are also improving our customer care base, allowing internet purchases and booking after which we make deliveries to the customers. The pricing is rather challenging because of the competition but we are planning to give our customers a relatively low price. The pricing will depend on the target population because low income earners must also have a chance to use the product (Dibb and Simkin, 1995).
References
Dibb, S., & Simkin, L. (1995). The market segmentation workbook: Target marketing for marketing managers. London: Routledge.
Lazer, W. (1994). Handbook of demographics for marketing & advertising: New trends in the American marketplace. New York: Lexington Books.
Michman, R. D. (1991). Lifestyle market segmentation. New York. U. A: Praeger.