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Market Segmentation

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on 21 January 2013

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Transcript of Market Segmentation

Lay’s Classic Potato Chip Baked Lay's Chips What is market segmentation ? Done By Janani Ramanan

Lay’s Classic Potato Chips contains 0grams Trans Fat, it is gluten, additives and MSG free. It contains no milk ingredients but it is a good source of vitamin C. Baked lay’s Chips contains 0grams of Trans Fat, it is gluten free, entirely baked, no milk ingredients, MSG free, contains soy ingredients. Segmentation is the division of the market into various homogenous groups with similar needs and wants. MARKET SEGMENTATION Lay’s Classic Potato Chips targets the working class who are always busy and on the go. These people need snacks that will satisfy their hunger without interrupting their daily work. Lay’s Classis Potato Chips are now also targeting the younger generation, that is the teenagers who enjoy tasty snacks with is affordable. Target market of Lay’s Classic Potato Chips Market Segmentation of Baked Lay’s Chips Baked lay’s Chips target the people who either are health conscious and/or weight conscious and people with health problems. Therefore their market segment is comparatively smaller than Lay’s Classic Potato Chips. Criteria for Market Segmentation •It is possible to measure.
•It must be large enough to earn profit.
•It must be stable enough that it does not vanish after some time.
•It is possible to reach potential customers via the organization's promotion and distribution channel.
•It is internally homogeneous •It is externally heterogeneous, that is, potential customers from different segments have different quality preferences.
•It responds consistently to a given market stimulus.
•It can be reached by market intervention in a cost-effective manner.
•It is useful in deciding on the marketing mix. Basis for segmenting consumer markets Geographic segmentation
Demographic segmentation
Psychographic segmentation
Positive market segmentation
Behavioral segmentation
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