SegmentationDefinition:Segmentation in general term is the separation of different groups.
Business segmentation is where a business separates customers and departments by certain characteristics, demographics, wants, needs and functions.Benefits:Helps organise business communication and increases work efficiency.Helps to design product to a certain type of customer.Helps to choose location by customer demographics.Easier to make general decisions in the business.Drawbacks:Harder for small business and niche markets.
If done incorrectly it can cost the business everything.Consumers can change reducing market size.Psychographics:Psychographics is the study of opinions, personality, attitudes, values, lifestyles and interest.Business can use this information to make a segment different people based of of these studies for example it is important to make sure products are morally acceptable.Demographic:Demographics is the study of population of people it can be about physical attributes or actions.This is one of the most useful studies for segmentation as it studies populations. For example they can design products based on human measurements.
Geographic:Geographics is the study of geographical locations such as countries continents, or even a sing street or building.This is helpful for business to decide where they should operate their business for production, sales and material collection.Socio cultural:This is the study of people’s social status or occupancy.
This is useful to business as it can help them decide where and who to sell their products, decide pricing and design.Gourmet house segmentation:AgeGourmet house generally aim towards adults as they make high class chocolates that children generally can’t afford. It’s also sold in the first class section of the airport which is generally all adults. Since adults are the customers they make premium chocolate.SeasonsChocolate changes in the seasons as demand for chocolate changes as well as chocolate types for example in valentines more chocolate boxes are made while in easter they like to make separate eggs.Medical statusMedical status matters for the chocolate as diabetics can’t eat too much sugar so the segment of diabetic have their own chocolate selection from schoggi meier. This is normally a B2C (business to customer) selling process as it may not be profitable to send it to other business as it is a niche market.Needs and wantsSchoggi meier also decide where to sell chocolate based on people’s need and wants for example some customers may want chocolate for parties/ private events which they do cater to.
Geographic locationGourmet house is based completely in hong kong but the places where it’s sold in hong kong is very niche. It’s generally sold to cathay pacific as they are a high class airport and generally people are looking for a premium choch in the first class section of an airport. Economic standingEconomic standing is important as they need to decide how to make their chocolates.
Since they sell at mandarin oriental which is an expensive hotel it’s important for them to have premium chocolates because the people there are generally more wealthy and therefore expect higher quality products.