Segmentation Targeting & Positioning

Visit your local supermarket and review the products in the breakfast cereals aisle. Take note of the different types of cereal products - for example, muesli mixes, flakes, wheat based, single packs vs multipacks, gluten free, organic, cartoon characters etc

From your notes, outline the following STP strategies:

1. Identify ONE consumer segment that you think is being targeted by a range of different breakfast cereal brands. Summarize the profile of this segment. Use Table 6.1 (below) focusing on the Demographic and Behavioural variables to assist you with this. For example: Young families with children under 10, health conscious, light users who buy on special occasion, and so on. It is expected that more than one variable will be applicable to the segment. Look at all the different cereal varieties to choose your segments.

2. Draw up a positioning map using two dimensions you think are most important to your selected segment when they consider buying breakfast cereals. Use Figure 6.3 (below) as an example. Map out the brands you think would meet these two dimensions. You are not expected to include every brand on the shelf, just the ones you think meet the needs of the segment you've identified.

3. For assistance in drawing up your positioning map, view the additional video in the vUWS folder under "Learning Portfolio - First Written Submission"

4. Describe any potential gap in the market for your segment.

The format of your report should include the following

a. A description of your segment and why you think this group would buy breakfast cereals.

b. A positioning map for the consumer segment

c. Description of any potential gap in the market

d. Include a reference list at the end of the report (this does not form part of the final word count)

TABLE 6.1 Bases for identifying and analysing consumer market segments Variable Typical breakdowns Geographic Region Far North Queensland, South-Eastern Queensland, Far North Coast of NSW, NSW Tablelands, Western NSW, Lakes District - Victoria City size (population) Under 5000; 5000-20 000; 20 000-50 000; 50 000-100 000; 100 000-250 000; 250 000-500 000; 500 000-1 000 000; 1 000 000-2 000 000; 2 000 000 and over Density Urban, suburban, rural Climate Northern, Eastern seaboard, Southern and Western Demographic Age (years) Under 6, 7-11, 12-19, 20-34, 35-49, 50-64, 65+ Sex Male, female Family size (members) 1-2, 3-4, 5+ Family life cycle Young, single; young, married, no children; young, married, youngest child under 6 years; young, married, youngest child 6 or over; older, married, with children; older, married, no children under 18; older, single; other Income (annual) Under $10 000; $10 000-$14 999; $15 000-$19 999; $20 000-$29 999; $30 000- $49 999; $50 000-$99 999; $100 000 and over Occupation Professional and technical; managers, officials and proprietors; clerical, sales; craftspeople, supervisors; operatives; farmers; retired; students; homemakers; unemployed Education Primary school or less; some high school; high school graduate, some TAFE college; TAFE college graduate; some university; university graduate Religion Catholic, Protestant, Orthodox, Jewish, Muslim, other Nationality Australian, British, New Zealander, American, Chinese, French, German, Scandinavian, Italian, Greek, Middle Eastern, Japanese, Taiwanese, Vietnamese, South African, other Psychographic Socioeconomic Quintiles: AB, C, D, E, FG Status Where education, income and occupation levels are used in combination to indicate status Values, attitudes and lifestyle Visible Achievement, Something Better, Young Optimists, Socially Aware, Look at Me, groupings A Fairer Deal, Basic Needs, Real Conservatism, Traditional Family Life, Conventional Family Life Personality Compulsive, gregarious, authoritarian, ambitious Behavioural Purchase occasion Regular occasion, special occasion Benefits sought Quality, service, economy User status Non-user, ex-user, potential user, first-time user, regular user Usage rate Light user, medium user, heavy user Loyalty status None, medium, strong, absolute Readiness stage Unaware, aware, informed, interested, desirous, intending to buy Attitude towards product Enthusiastic, positive, indifferent, negative, hostileHigh Coca-Cola Social acceptability Pepsi Solo Low Sweetness High FIGURE 6.3 Positioning map: Carbonated beverages (15- to 18-year-olds)