The record developed this is a business report that can be used effectively by a company and its own management to make their future business decisions. The goal of this business survey is to do market segmentation for a specific brand product that is skinny jeans. This report entails all essential areas of market segmentation and its process that may be used by a company to identify its potential band of consumers. This report and its own results will render a company and its own management with specific recommendations for focusing on their preferred market portion. This business article is an all-inclusive report and can be used effectively by a company to determine its market segmentation way.
The brand product determined for talk in this report is jeans that may be marketed with core brand attributes like honest, fashionable, fashion, approachable, comfortable, general, style and independent. The market segmentation of preferred brand product is performed by making use of different section where first section includes release and information record that involves brand information and industry developments. The next section is approximately market segmentation and use of different segmentation bases for discovering potential group of consumers. As well, a segmentation stand is also used. Another section involves positioning strategy for focusing on new denims brand.
Next section includes internal and exterior influences on primary target market purchasing decision that is man and women. In the end, recommendation related to collection of attribute based positioning, differentiation strategy, persuasive advertising, appropriate route of marketing communications and collection of distinctive media programs is given so that identify target market audience can be targeted easily and effectively. The statement requires all significant information about market segmentation of determined product brand denims with vital recommendations.
Introduction and Backdrop Information
The specific brand product picked for market segmentation is jeans that belong to denim jeans industry. The denim jeans industry is the most fragmented from the total outfits industry. Previously, the top quality denim brands were only served for men's and women's however now it has lengthened to kids' racks that presents its demand. The most significant trend on the market is of shaded denims. In present situation jeans have become essential and every age group people like to use it. By age group factor, sales of skinny jeans have increased greatly in the age groups of 13-17 and 25-34 (Recent Industry Tendencies and the Competitive Scenario of the US SKINNY JEANS Market, 2008).
By amount, the male denim jeans delivery market in U. S. is continuing to grow significantly in comparison to the women's denim jeans shipments. Although in last some years, the clothing industry has been critically affected by the global monetary downturn however the denim jeans industry's position is comparatively far better. The skinny jeans industry is continuing to hold a beneficial position compared to other clothing categories and it is because of the longer life span of jeans compared to other outfits items.
The market downturn situation is taken care of by jeans manufacturers by reducing their prices as now individuals are more price-conscious. Regardless of downturn, the industry is highly competitive as several new brands are coming into the marketplace from last few years. Most of the new brands are focussed on high grade denim. According to market experts, it is presumed that by 2014 the global Jeanswear market will rise by US$4. 6 billion that evidences the potential of trousers industry (Future of the Global Denims Industry, 2007).
The center brand capabilities of jeans are honest, contemporary, fashion, approachable, comfortable, widespread, style and independent. Based on these traits the selected brand trousers can be marketed easily in ways through which consumer feels they are getting full value for his or her money (Recent Industry Trends and the Competitive Situation of the united states SKINNY JEANS Market, 2008). By marketing skinny jeans on the characteristics like 3rd party and comfortable, the company can easily appeal to more female customers as in present they would rather be independent.
The industry does good from previous many years and in future additionally it is about to prolong significantly due to the positive tendencies towards denim from all age groups. In arriving future, the industry may be affected by diverse communal and environmental factors but you won't be affected too much by political factors (Future of the Global Denims Industry, 2007). Nowadays politics situation of most of the countries are quite stable and this will not make any significant affect on denim jeans industry as it belongs to outfits industry that is highly affected by cultural and environmental factors. In future, the industry may develop scheduled to increasing communal choices of different consumers towards putting on denim.
The company if sold effectively can attain a substantial position on the market and in the thoughts of its goal customers. Increasingly more new brands are going into and attaining significant place that can even be done by the company with specific and well-planned strategy. By considering all these trends and a descriptive methodology, the preferred product can be marketed effectively with well-planned market segmentation.
Market Segmentation
From last many years number of developments had keep arriving and going however the denim developments are evergreen and perpetually stay in the style industry. Although there surfaced numerous fashion brands in the clothing industry however the all time favourite brand is denim. The craze of wearing denim jeans is increasing daily in all age groups and it is all because of the its distinctive attributes. The increasing craze of wearing denims is quite helpful for the company in segmenting its target market. By using appropriate segmentation bases the company may easily identify its potential band of consumers or market sections (Kotler, 2002).
The ever increasing craze of putting on denim among people evidence that different kinds of consumers can be made thinking about new denim jeans brand. Consumers from virtually all age groups like to wear jeans whether they are guys or females. In present consumers like wearing denim from different kinds of purposes like fun, experience, everyday & formal methodology etc. Every consumer find for different benefit during purchasing skinny jeans. By considering their needs and the benefits they are looking for market can be segmented easily.
The hottest strategy of segmentation is geographic, psychographic and demographic segmentation. In addition to this, another significant strategy that can be used to recognize potential market sections is by considering behavioural considerations like consumer responses to benefits, use occasions or brands. After a marketer can affiliate his product characteristics with consumers each response. By using these segmentation bases, it'll become easy for the company to recognize its potential market sections of its new denim jeans brand (Lancaster & Raynolds, 2005).
Among all the above mentioned segmentation bases the most significant segmentation bases that may be used by the company to recognize its potential market sections' are the following:
Demographic Segmentation:
For determining potential market sections the market will be divided among sections' on the basis of time, gender and income. With years factor different age ranges will be established that prefer to wear jeans typically. In modern age, teens, children and aged all like to wear denim that can be easily targeted by identifying a group. Another significant basic is gender and income as new denim jeans brand can be targeted to males and females and everything income organizations like low, middle and top quality with making variants in brand offering.
The selection of demographic segmentation is quite appropriate to recognize potential groups of consumers because demographic factors tend to be associated with consumer needs and desires. Consumer wishes and talents change with era and thus get older and life routine phases are significant variables to identify segments (Baker & Hart, 2007). Men and women have different attitudes and they react differently based on their genetic make-up and socialization. Their shopping behavior is different and by considering this it'll become easy to target new trousers brand. The past basis of segmentation, income group is also quite substantial and is experienced use from last several years. Every group of consumers have specific income and buying power plus they choose to buy things accordingly (Proctor, 2000)
Behavioural Segmentation:
Benefit Sought:
Another important basis you can use to portion market is behavioural segmentation in which potential group of consumers can be determined on the basis of benefits consumers are looking from a denim jeans brand (Kotler, 2002). The business can focus on consumers based on benefits like fashion, approachable, comfortable, style and indie. Benefit looked for segmentation is a substantial approach as it will assist in discovering market opportunities as well as for determining the worthiness propositions that may be wanted to different group of consumers (Kurtz, MacKenzie & Snow, 2009).
Usage Rate:
The next important basis of segmentation is utilization rate as every band of consumers have different usage rates. The company can sections its markets into light, medium and heavy product users (Baker & Hart, 2007). Like in denim industry heavy product users are youngsters whereas medium and signals users are young adults and aged people. By providing special schemes and will be offering to heavy users of jeans, the business can earn a higher profit. For determining existing income opportunities consumption rate is the most suitable bases of segmentation that may be used by the company (Peter & Donnelly, 2002).
Potential Band of Market Segments:
With these discussed segmentation bases, the four potential groups of market segments that may be targeted by the company with its new trousers brand are as follows:
Teens Consumers age groups 12-17: One of the potential market sections that may be targeted are teens as the shopping tendencies of these group is increasing as never before. This group loves to wear casuals and want to wear ruff & tuff trousers that are symbolic of stylish and style. This group can be easily drawn towards new brand of denim jeans (Rusty, 2005).
Men & Women: Another potential market section that may be targeted is all men and women as with modern age both are highly impartial and live with equivalent approach towards life. In present both the women and men like to wear skinny jeans as they feel it is comfortable and approachable. Both of men and women prefer jeans scheduled to different benefits.
High end consumers: THE BUSINESS can also focus on its trousers to high end consumers who belong to high class as they want to wear high quality brands of jeans. With high brand equity and acceptance, this band of consumers can be targeted easily.
Old era consumers: Another substantial group of customers that may be targeted is old age consumers as nowadays these folks also prefer to wear trendy cloths and be an integral part of different advanced interpersonal circles. By offering light-weight jeans, the business can easily target this potential band of customers.
Segmentation Stand (Jeans)
Primary MARKET: All Men & Women
One of the considerable primary target market segments that may be used by the business is all women and men as nowadays every rival offers jeans for those age groups for men as well as for women. The company's brand is new so that it must also offer basic product to everyone such that it can attain a significant market position and then can target specific market sections. By offering jeans for many women and men will give reputation to company brand that in turn can be targeted to specific market sections for producing high earnings.
Positioning Strategy
The company can position its new jeans brand based on its key features of comfortable and stylish wear. By offering jeans on these traits will assist the business in creating differentiation among its own jeans brand and brand offered by its competition like Acne Jeans, Diesel, Wrangler and Lee. By setting on both of these attributes will assist the company in appealing to its target segments that usually would rather buy jeans based on these two benefits. By making use of these two capabilities will assist the company in placing its different image in the minds of women and men (Weitz & Wensley, 2002). The benefits of attributes based positioning strategy can be understood with the aid of perceptual map that is really as follows:
Comfortable
High
New Jeans Brand
Lee
Diesel Acne Jeans
WranglerStylish Wrangler
Low High
Low
The new jeans brand positioning strategy features comfortable and stylish will enable us in getting ready the attribute founded perceptual map. In this perceptual map, it could be detected that the consumers will rate it high on both the identified dimensions compared to its other competitive brands (Delight & Ferrell, 2004). The attribute-based perceptual map of new jeans brand evidences that this can attain a significant image in the brains of its potential consumers if offered with all essential features and aspects.
Analysis of the Internal and Exterior Characteristics of Focus on Audience
Every company markets to different market segments and different band of consumers have different inside and external stimuli that have an effect on their purchase decisions. Every purchase decision of consumers is highly influenced by diverse inside and external characteristics' and similar is the situation with selected main target market of women and men (Kim, Forsythe, Gu & Moon, 2002). The preferred primary goal market's decision to acquire jeans is affected by numerous interior and exterior factors that are as follows:
Internal Influences
An internal affect that may impact identified primary market is also known as personal influences. It pertains to the consumer's ability to advantage immediately from the merchandise or service is going to purchase. These influences include inspiration, learning and conception (Solomon, 2009). The recognized primary target audience purchase decision of jeans is also affected by all these internal influences.
The consumers' drive to acquire jeans is an inner factor, and it could depend on his desire to realize goals associated to other internal and external factors. Like a female might want to acquire jeans for learning to be a fashion symbol or even more self-employed through her clothing style. She may need it from her collage wearing purpose or get together purpose (Kim, Forsythe, Gu & Moon, 2002). Alternatively man might need to get it for comfort or becoming trendier. Young adults may want to acquire it for becoming approachable and stylish. Every consumers purchase motivations are different that need to be recognized before targeting preferred main audience (Ross, 2005).
In this way, it can be said that consumer inspiration plays a considerable role at the time of making a purchase decision. Every purchase of a person is inspired by some drive and nowadays all era group's men and women that buy jeans buy it with unique purpose and need (Anderson & Vincze, 2006). Another substantive internal characteristic which could influence primary target audience purchasing decision is their conception that appropriates them to rationalize their buying decision based on the perceived outcomes.
Like men can purchase it by thinking about its use with the idol personality or some well known movie star. When consumers believe that their role models or idol individuals are showing it and making use of it in addition they would prefer to buy those jeans in order to also reveal similar kind of personality. This evidences that consumer personality also make a considerable have an impact on on his purchasing decisions (Kurtz, MacKenzie & Snow, 2009). As well, when consumers learn from others that they used something and found it quite good in addition they try to acquire that product (Loudon, 2001).
The identified most important target market audience may find out about new jeans and it is benefits from their friends, family members or co-workers and their communal circles. This in turn will also cause them to become buy jeans. In this way, it can be said that the most important internal characteristics that could influence identified main target audience is motivation, conception and learning.
External Influences:
In addition to inside affects, other characteristics' that may affect consumers purchase decisions are exterior influences that include communal norms, family jobs and cultural values. All these aspects constitute external or interpersonal factors. All these external factors impacting on consumers buying decisions are highly affected by industry movements and environment (Kurtz, MacKenzie & Snow, 2009). The discovered primary goal market's decision to purchase new brand jeans could also influenced by several exterior factors where one significant factors that could influence is sociable norms. It identifies brand, company recognitions, new movements in design and fashion etc.
If company has well established brand name it could easily influence principal marketplace audience purchase decisions. Trends to wear jeans popular industry is increasing that could also influence marketplace audience to buy new jeans brand in comparison to available brands. As well, cultural beliefs are another substantive factor which could influence marketplace audience purchasing decision. Advertising campaigns that boast American-made or trendy & stylish products are quite common that are being used to get American consumers (Kotler, 2002). If company also employ effective advertising that evidenced determined target audience ethnical principles, it can favorably affect their jeans purchasing decisions.
The increasing use of advertising for interesting consumers shows that it is most substantial factor that can be used to encourage company's market purchasing decisions. In matter to advertising another exterior factor you can use to impact consumers' purchasing decision is the demo of cultural beliefs in the possession of the merchandise that can be done with the help of note framing (Kurtz, MacKenzie & Snow, 2009). By framing a note which includes all areas of product and its own association using its use may effectively effect market purchasing decisions.
A well-designed message may deal with all questions of consumers regarding their purchase decisions. It will include all benefits a fresh jeans brand will offer you, its price in comparison to other brands and its core brand prices. By delivering all these aspects in concept, the primary target market audience purchase decision can be inspired significantly (Wang & Siu & Hui, 2004). Advertising and note framing are most considerable external factors that need to be managed significantly for favorably affecting purchase decisions of determined primary marketplace audience.
Recommendations
With the assistance of above discourse and research of industry trends, it can be said that for targeting identified audience, it is vital that the company use diverse strategies and techniques. For successful targeting, it is vital that the company understand its potential market section needs and factors that effect them substantially. Furthermore for successful approach to primary target market, the company need to adopt following referrals:
Attribute based Positioning: The business need to position its new jeans brand based on its specific qualities and core brand ideals. With this only it will become possible for the company to appeal its marketplace audience in comparison to existing brands of jeans. By using attribute centered positioning, the company can simply deliver all its advantages to its primary target audience (Kotler, 2002).
Positioning through Differentiation Strategy: The Company should position its new jeans brand by using differentiation strategy. The most suitable differentiation strategy that can be used is image differentiation that can be done by including some well-known superstar or idol personality. This strategy will appeal major marketplace consumers by influencing their own personality.
Persuasive Advertising: In matter to attracting principal marketplace audience, it is essential that the business use right advertising charm that should be persuasive advertising. With the help of this advertising charm, the company may easily create liking, choice, conviction and buy of its new jeans brand among its determined primary marketplace (Groucutt, Leadley & Forsyth, 2004).
Selection of Communication Programs: The next substantial strategy that the management of the business should adopt relates to the selection of appropriate communication programs. In communicating using its selected primary marketplace it is essential that the company employ both the personal and non personal communication stations (Fiore, Lee & Kunz, 2004). In this manner, only it will become able in doing successful communication.
Use of Advanced Advertising channels with SOCIAL NETWORKING: The business should communicate its brand and its own core worth to its target market by making use of advanced media channels like print press (papers & magazines), broadcast multimedia (radio and television), electronic multimedia (web page), network multimedia (telephone and wireless) and screen media (indications and posters) (Kelley & Jugenheimer, 2008). Furthermore, the company should also talk its brand and its benefits with the aid of social media tools as it is very popular in present among children and teen agers.
By adopting all these, the company easily position its new jeans brand in the year 2011 that will have different significant changes in industry fads and consumers tastes.
