Contents
Examples of a Segment Profile
In this example we will provide a profile for two different market segments, using the range of factors listed in the discussion of segment profiles.
Two market segments that could be developed for a chain of fitness centers
‘Young and serious’market segment | ‘Losing it’market segment | |
| KEY MEASURES | ||
| Estimated at around 10,000,000 people across the country | Estimated at around 15,000,000 people across the country |
| Tends to be stable, with little evidence of growth | A steadily growing segment, increasing by around 5% per year |
| 10% of all consumers | 15% of all consumers |
| CONSUMER BEHAVIOR | ||
| Want to get into great physical shape Looking for state-of-the-art facilities, conveniently located, like to mix with other patrons | Want to lose weight Need emotional support and personal training, happy with a limited range of fitness machines, often prefer private training situations |
| High proportion of heavy users – go to a fitness center several times a week | Limited usage, as some consumers are embarrassed by their weight and prefer not to go to fitness centers |
| High level of switching behavior over time, may trial a new fitness center every 1-2 years, due to influence of friends or for something different | Once these consumers are comfortable and committed, they display a high degree of loyalty |
| Price is a reasonably important factor and different price deals are important | Less price sensitive, as other selection factors (e.g. ‘feeling welcome’) are more important |
| Low-medium, as they often switch/trial new facilities they spend less time on the product decision process | Medium-high, as they are not high usage consumers, it is often a purchase that they lack experience with |
| Like well-known chains with multiple outlets that have convenient locations | Preference for smaller, independent fitness centers that are less crowded and have an older age demographic |
| DESCRIPTION | ||
| Fairly widespread, but the heaviest users in this segment tend to live or work in busy cities | Broad spread, often living in city suburbs and even in rural areas |
| Younger (aged 18 to 30 years), well educated, usually employed in office or skilled work, upwardly mobile, single or in a relationship | Middle age group, anywhere from 30 to 60 years, mix of middle-class occupations, usually married and many have children at home |
| Quite social, travel goals, enjoy sport, environmentally concerned, focused on future goals and success | Life’s priorities are career and/or family, tend to be quite time-poor, probably less social in a fitness center situation as a result |
COMPETITION/COMMUNICATION | ||
| Large fitness center chains heavily target this segment Some specialist gyms predominately target them as well Growing number of ‘boot camp’ style fitness offerings Various sports should be considered indirect competitors | A number of specialist fitness centers have targeted this group Some female-only chains appear to focus here as well Traditionally, this segment has been targeted by weight loss centers (who offer counseling services, rather than equipment) Consumers in this segment are more likely to purchase home-gym equipment |
| Big users of internet Major consumers of reality TV shows Active users of Facebook and other social media More likely to engage with mobile phone marketing communication | Magazine readers TV shows like ‘The Biggest Loser’ and cooking shows have a good reach Word-of-mouth promotion is effective in this segment Outdoor advertising has some impact |
Once the segment profile has been developed, as per above, the firm is then in a position to evaluate the attractiveness of each segment and select target market/s most appropriate for them. As you can see, the information contained in the segment profile would then be very useful for the firm in developing their competitive strategy, positioning and subsequent marketing mix (as part of the overall STP process).
Two market segments that could be developed for a Grocery Store
| Category | Convenience Seekers | Budget-Conscious Families |
|---|---|---|
| Segment size measures | Estimated at around 20% of all consumers | Estimated at around 30% of all consumers |
| Segment growth rate | Growing steadily at 4% per year | Stable, with limited year-on-year growth |
| Main consumer needs | Quick, easy access to ready-to-eat meals and pre-prepared groceries | Low-cost, bulk purchasing for feeding large families |
| Retailer preferences | Prefer stores with extended hours and online delivery options | Shop at discount grocery chains and bulk-buy stores |
| Main media choices | Heavy users of mobile apps and social media platforms | Responsive to flyers, coupons, and TV ads |
Two market segments that could be developed for the Mobile Phone Market
| Category | Tech Enthusiasts | Value Seekers |
|---|---|---|
| Segment size measures | 10% of the market, with high income levels | 40% of the market, primarily middle-income earners |
| Segment growth rate | Growing at 8% annually due to constant product launches | Slow growth, less affected by new features |
| Main consumer needs | Desire the latest technology, cutting-edge features, and brand prestige | Require functionality at an affordable price |
| Price sensitivity | Low; willing to pay premium prices for innovative features | High; price is a major decision factor |
| Main media choices | Influenced by tech blogs, YouTube reviews, and social media ads | Respond to deals on e-commerce platforms and email promotions |
Two market segments that could be developed for the Fitness Tracker Market
| Category | Performance Optimizers | Casual Users |
|---|---|---|
| Segment size measures | 15% of all fitness tracker buyers | 50% of all fitness tracker buyers |
| Segment growth rate | Fast growth at 10% per year as competitive athletes adopt more trackers | Moderate growth at 3% annually |
| Main consumer needs | High accuracy, advanced metrics, and compatibility with professional tools | Basic activity tracking and easy-to-use apps |
| Price sensitivity | Low; value accuracy and performance over cost | High; prefer entry-level or mid-range products |
| Main media choices | Follow elite athlete endorsements, sports magazines, and fitness blogs | Engage with mainstream media, social ads, and lifestyle influencers |