Our Town USA has built a brand new amusement park. The marketing team for Fantastic Adventure Park is confused about how they should segment the market. The team wants to ensure that the overall marketing and segmentation strategy is effective and produces the highest amount of overall sales this year. The crucial benchmarks for segments are profitability, measurability, and accessibility. Town USA is located near the park in a 100-mile radius. They believe some customers will fly in from out of state, so they will also target large-density areas nearby. The park will use an age range of 2-60 years of age to include kids, teens, parents, and even grandparents. The income level would have to be middle to the upper class - $50,000 annual income or above since park tickets are costly. The amusement park is not a gender specific product, and ethnicity will also not affect the overall plan. The marketing team is very interested in the family life cycle sub-segments. The park is very interested in the family life cycle of young single, young married with kids, middle-aged married with kids, young divorced with children, and middle-aged divorced with kids. They plan on advertising via social media and local cable ads where parents and kids congregate. One group called tweens, which are between the ages of 9 and 12 has enormous spending potential due to their parents providing them with a large disposable income. The park will send out buy one and get one ticket free to local middle schools to reach the tween audience. The Baby Boomers are another group that accounts for half of all spending in the United States. The group consists of people born between the years of 1946 and 1964. Many companies in real estate, travel, and luxury items target the large and influential Baby Boomers. The park marketers have realized that many grandparents enjoy taking their grandchildren to amusement parks. They will advertise in local senior newspapers and provide park admission discounts to all senior citizens. Generation X was born after the Baby Boomers, and many in this segment are not loyal to brands and are turned off by most media advertising. They are parents to Gen Y, so they have much disposable income to spend on their kids. The amusement park knows that this segment might dislike flashy ads, so instead, they will rely on family day pricing discounts. When the amusement park team identifies their target market's psychographic traits, they will look at consumers with personalities who enjoy fun, like spending time with their family, enjoy leisure time, and are outgoing in nature. The television ad for the park will consist of people laughing, screaming on exciting rides, and enjoying a day of freedom. Why do people go to amusement parks? Some benefits include getting thrills or excitement, spending time with the family, or just relaxing. Depending on why the customer is visiting the park, the marketing team could provide a targeted promotional message. They could show all of the new, exciting roller coasters to the thrill-seekers in an ad or the kiddie rides to the families looking for a relaxing day out. In general, 20% of all customers generate 80% of the demand for a product or service. This is known as the 80/20 principle. The result is that most marketers heavily target their most significant users. The amusement park's marketing team has decided to target the park's heavy users by offering them a frequency or loyalty program. Every time the customer visits the theme park, they receive points, which allow them access to free VIP events and even free visits in the fall and winter. 3.1 Identify and summarize the market segmentation strategies for this case study. (5 Marks) Our Town USA has built a brand new amusement park. The marketing team for Fantastic Adventure Park is confused about how they should segment the market. The team wants to ensure that the overall marketing and segmentation strategy is effective and produces the highest amount of overall sales this year. The crucial benchmarks for segments are profitability, measurability, and accessibility. Town USA is located near the park in a 100-mile radius. They believe some customers will fly in from out of state, so they will also target large-density areas nearby. The park will use an age range of 2-60 years of age to include kids, teens, parents, and even grandparents. The income level would have to be middle to the upper class - $50,000 annual income or above since park tickets are costly. The amusement park is not a gender specific product, and ethnicity will also not affect the overall plan. The marketing team is very interested in the family life cycle sub-segments. The park is very interested in the family life cycle of young single, young married with kids, middle-aged married with kids, young divorced with children, and middle-aged divorced with kids. They plan on advertising via social media and local cable ads where parents and kids congregate. One group called tweens, which are between the ages of 9 and 12 has enormous spending potential due to their parents providing them with a large disposable income. The park will send out buy one and get one ticket free to local middle schools to reach the tween audience. The Baby Boomers are another group that accounts for half of all spending in the United States. The group consists of people born between the years of 1946 and 1964. Many companies in real estate, travel, and luxury items target the large and influential Baby Boomers. The park marketers have realized that many grandparents enjoy taking their grandchildren to amusement parks. They will advertise in local senior newspapers and provide park admission discounts to all senior citizens. Generation X was born after the Baby Boomers, and many in this segment are not loyal to brands and are turned off by most media advertising. They are parents to Gen Y, so they have much disposable income to spend on their kids. The amusement park knows that this segment might dislike flashy ads, so instead, they will rely on family day pricing discounts. When the amusement park team identifies their target market's psychographic traits, they will look at consumers with personalities who enjoy fun, like spending time with their family, enjoy leisure time, and are outgoing in nature. The television ad for the park will consist of people laughing, screaming on exciting rides, and enjoying a day of freedom. Why do people go to amusement parks? Some benefits include getting thrills or excitement, spending time with the family, or just relaxing. Depending on why the customer is visiting the park, the marketing team could provide a targeted promotional message. They could show all of the new, exciting roller coasters to the thrill-seekers in an ad or the kiddie rides to the families looking for a relaxing day out. In general, 20% of all customers generate 80% of the demand for a product or service. This is known as the 80/20 principle. The result is that most marketers heavily target their most significant users. The amusement park's marketing team has decided to target the park's heavy users by offering them a frequency or loyalty program. Every time the customer visits the theme park, they receive points, which allow them access to free VIP events and even free visits in the fall and winter. 3.1 Identify and summarize the market segmentation strategies for this case study