Tag: market segmentation

Market segmentation analysis

Infiniti’s Market Segmentation Analysis Helped a CPG Company Focus on Lucrative Customer Segments and Drive Profitability

Market Segmentation Analysis for a Consumer Packaged Goods Company

Due to growing ethnic diversity and broadening income disparity, consumers are becoming increasingly heterogeneous in their product preferences. This has severely impacted various market sectors, especially the consumer packaged goods (CPG) sector. With this, the need to identify subsets of a market based on demographics, needs, priorities, common interests, and other physiographic or behavioral criteria is becoming imperative for CPG companies to better communicate with their customer segments. To do so, companies are partnering with firms like Infiniti Research to leverage their expertise in offering market segmentation analysis solution. The insights obtained from Infiniti’s market segmentation analysis has helped various global giants identify the most lucrative customer segments and personalize business strategies for them to achieve maximum profits.

Are you facing difficulties in breaking down your market into targetable groups? Our market segmentation analysis solutions can help. Request a FREE proposal today!

Business Challenge

The client is a consumer packaged goods supplier based out of Germany. The client’s unstructured approach to marketing and promotional strategies resulted in huge customer churn. Also, as the client’s key competitors had already adopted a more focused approach by understanding the needs of their target customers, the client was losing ground to their competitors. Also, the client was not able to meet their customers’ needs and demands. This subsequently increased the customer churn rate by 13%. The client, therefore, realized the need to create small segments comprising of like-minded individuals and devise personalized business strategies to meet their needs. To do so, they approached Infiniti Research to leverage their expertise in offering market segmentation analysis solution.

With Infiniti’s market segmentation analysis solution, they also wanted to:

Better serve customers’ needs and wants – By leveraging Infiniti’s market segmentation analysis, the client wanted to categorize their customers into various segments based on their needs and requirements. By doing so, the client wanted to personalize their marketing and promotional strategies to efficiently serve their customer base.

Increase chances for up-selling and cross-selling – By understanding their customers’ purchasing patterns, the client wanted to recommend other relevant products matching their requirements and increase the chances of up-selling and cross-selling.

Differentiate product prices by segment – As managing customers’ price perception has become important for businesses, the CPG company wanted to differentiate their product’s prices by segments to sustain higher margins.

Attract additional customer groups – By employing a target market segmentation analysis approach, the client wanted to devise targeted marketing plans for different customer segments and differentiate their products according to their customers’ demands.

Focus only on target audiences – The client noted that promoting their products across wide customer segments resulted in huge loses for the company. This even increased the churn rate. The client, therefore, wanted to leverage Infiniti’s market segmentation analysis to identify their lucrative customer segments and focus on personalizing their business strategies for profitable customer segments to achieve maximum profits.

CONTACT US to know how our market segmentation analysis can help you efficiently categorize your customer segments and create compelling marketing and promotional strategies for them.

Solutions Offered and Value Delivered

To help the client segment their customers into various groups, the experts at Infiniti Research followed a four-phased approach to customer segmentation.

  • The initial step of market segmentation analysis involved conducting preliminary research. As a part of preliminary research, the experts conducted customer surveys. The factors such as highest purchased consumer packaged goods, customers’ shopping patterns, and their preferred channels of purchases were analyzed.
  • In the second phase of market segmentation analysis engagement, the experts segmented customers into various categories considering factors such as their age, geography, income, lifestyle, and behavior.
  • The next phase of the market segmentation analysis involved filtering lucrative customer segments from the target market. For this, the experts conducted manual and statistical analysis.
  • The final phase of the market segmentation analysis involved conducting demo marketing and promotional campaigns for the categorized customer segments to gauge the effectiveness of different segments.

The insights obtained from Infiniti’s market segmentation and customer analysis solution helped the client to understand their customers more efficiently and craft compelling marketing and promotional strategies for them. This helped the client to influence their customers’ buying decision. This targeted marketing approach even helped the client to better match their lucrative customers’ needs and attract new customers. Also, the market segmentation analysis engagement helped the client to recommend products to their customers according to their needs and demands. This increased up-selling and cross-selling and further resulted in an increase in the company’s sales rate.

By understanding the needs and demands of specific customer segments, the client was also able to create their own niche products to attract wider customer segments. This further helped the company to utilize their marketing budget on their lucrative customer segments. Also, with Infiniti’s market segmentation analysis solution, the CPG company was able to reduce customer churn and attract new customers.

By leveraging Infiniti’s market segmentation strategies, the client was able to achieve sales growth by 19%.

19% Increase in Sales Rate

Want to gain more insights into the benefits of leveraging our market segmentation analysis solution? Request for more info!

What is market segmentation analysis?

Market segmentation analysis is the process of segmenting customers into smaller groups based on their unique characteristics including age, income, requirements, behavior, and purchasing patterns. Market segmentation helps marketing professionals to personalize marketing and promotional activities for each segment to gain maximum traction. This also enhances customers response rate for products and services.

How to do market segmentation analysis

How to do market segmentation analysis

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Here are some other examples of market segmentation analysis. Read the below articles to know how Infiniti’s market segmentation analysis solution has helped companies across other industries.

https://www.infinitiresearch.com/white-papers/target-market-segmentation-infiniti-research-success-story

https://www.infinitiresearch.com/casestudy/market-segmentation-strategies

https://www.infinitiresearch.com/casestudy/market-segmentation-sporting-goods

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Maximizing ROI with an Ideal Target Market Segmentation Strategy

What is target market segmentation?

Target market segmentation involves determining how organizations can divide their customers into smaller groups based on characteristics including age, behavior, income, and personality traits. Product launch and marketing campaigns can be optimized by using target market segmentation strategy to reach out to the right set of customers/audience. Moreover, it also provides better response rates. An effective target market segmentation begins with a target market analysis which will correctly pinpoint the exact group of customers to choose. They help marketers define and understand specific buyer populations and leverage insights to deliver more relevant offers to customers.

Why do you need target market analysis?

Marketing or offering products/services to anyone and everyone will result in reaching out to customers who aren’t interested in your offerings. Thereby, the company would end up wasting its time and resources. Using target market analysis companies can easily determine how much the customers are willing to spend, how often they would purchase, and the strategies to adopt in order to keep up with the changing trends. A good target market segmentation strategy helps companies to maximize ROI and growth of the company. Most target market segmentation efforts are known to fail because inexperienced marketers attempt to segment a mass market based on one or two demographic characteristics. Generally, customer needs and behaviors don’t fit perfectly into one or two demographic characteristics. They depend on a variety of factors that can only be uncovered through a flawless target market segmentation process.

Steps involved in target market segmentation

Undertaking target market segmentation involves a set of steps, which include:

Identify target consumer market

The first step in target market segmentation is to clearly define the market. This means finding answers to key questions related to the customers in the target market. In-depth audience profiling will provide a comprehensive overview of the needs and expectations of the target customers in a particular market.

Divide the market

People attracted to the company’s products or services are likely to share certain characteristics. Identifying and defining these characteristics create market segments for target market segmentation. This step in target market segmentation process will help companies to refine their messaging and communication to specific customers. Developing customer personas and profile will help gather shared traits and consequently hone in on identifying patterns, gain insights into the trends, and bring in high-value customers.

Gather up-to-date and reliable data

Gathering information from third-party sources is one of the easiest ways to collect data for target market segmentation. It helps build a real-life picture of the industry that you operate in, the competition involved, and identify the potential customer base. However, knowing exactly what customers’ need often proves to be a challenging task. Companies must always keep tabs on how reliable their data is with respect to the changing customer needs and evolving market trends.

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With a reliable market intelligence partner like Infiniti research, you can always be assured to stay updated with the changing market trends. Request a free brochure to know more about our market intelligence services.

Leverage existing resources

Data can also be gathered from existing resources rather than completely relying on information collected from third-parties. Deep-diving into available information will provide insights into the company’s history or the industry, potential customers, and even the market competition. Primary research via directly interviewing customers is also a great source to collect data. Although a little more expensive compared to other methods, primary research gives companies data regarding what the customers really want. They can also provide answers to specific questions related to the business.

Track market competition

By keeping a close watch on the competitors in the market, companies can be well aware of what their products or services are up against and what tactics have to be adopted to compete effectively. Not only can businesses identify untapped customer groups, but also target them in marketing plans.

Marketers everywhere want to use data to implement more modern customer engagement strategies. But they often find themselves fighting obstacles standing in the way of success. Discover how our engagements can help your business.

 

Include analysis in the business plan

Once the target segments are identified using the target market segmentation process, the final step in target market segmentation is to incorporate these different segments into the business plan. This helps make projections regarding who will buy the product and in what quantities. It will also aid in evaluating the possible peaks and troughs in demand.

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Market Segmentation: A Key to Success for Pharmaceutical Companies

The idea of dividing a market up into homogeneous segments and targeting each of them with a distinct product or message, is now at the heart of marketing theory.

Rising costs and demands for affordable health care continue to challenge the traditional business assumptions and economics of the pharmaceutical industry. Also, this is raising internal development risks, costs, and time requirements for clinical trials. To add to the complexity, pharma markets have become fragmented as providers, patients, physicians, and payers look for focused solutions that have optimal safety and efficacy profits for a narrower population of patients. Additionally, the role of greater transparency, reference pricing, and changes in decision-making are essentially shifting decision-making authority away from individual physicians to healthcare administrators and payers. These dynamics result in the complexity of product decision-making and continue to challenge the effectiveness of traditional commercial models in the pharmaceutical industry.

This is where the role of market segmentation comes into play. Market segmentation process enables pharmaceutical companies to move beyond product features and benefits or brand position to see specific needs through the eyes of specific market segments and this is an essential component of success for pharmaceutical companies.

At Infiniti Research, we understand the impact that target market segmentation strategies can have on your business. And to help companies expand, diversify, and tackle market competition, our team of experts have highlighted a step by step guide to market segmentation to help pharma industry players become market leaders.

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Market Segmentation Strategies: 3 Major Challenges B2B Enterprises Face and Ways to Tackle Them

For business-to-business (B2B) enterprises, market segmentation process can be a powerful tool for tactical and strategic applications under growing pressure to better target prospects and customers. Market segmentation strategies have enjoyed extensive acceptance in the consumer world for decades. However, B2B market segmentation process has weakened due to several factors like marginal technical expertise, limited availability of accurate data, poorly differentiated advertising, and  inability to develop high-quality leads. But with the rising income and middle-class population globally, business to business enterprises can no longer ignore the B2B market segmentation process. Buyers seeking customized products, customer support, and attention and are forming very specialized markets. This scenario was earlier seen in consumer markets only, but it has now developed into the B2B market as well. In fact, market segmentation strategies are something that enterprises in B2B can no longer ignore and expect to achieve positive results. However, there are some critical challenges B2B enterprises face with viable market segmentation process. Are these challenges different from the oneGet More Infos experienced in consumer market segmentation and If yes, then how? what are the possible solutions? In this article, we have tried to answer all such questions.

Challenges in B2B Market Segmentation Strategies 

Challenge #1: Dealing with highly complex B2B markets

Decision making in B2B markets is quite different from decision making in consumer markets. In the B2B market, buying decisions are normally complex with rules that are intertwined and made by different individuals with varying levels of authority while in consumer markets decisions are simply made by one individual or several individuals. Furthermore, potential buyers in B2B markets are oblique, multifaceted, complex and ephemeral. This creates the dilemma in formulating market strategies for B2B enterprises. In simple terms, it is difficult to identify who exactly is the target buyer and who we should segment in the B2B market segmentation process.

Challenge #2: Buyers in B2B market are more rational

Buyers in B2B markets are more rational and therefore, to devise market segmentation strategies here, one needs to pay attention to the need of the business rather than segmenting based on consumer segmentation audiences. This poses the challenge; it becomes important for enterprises to identify what drives customers’ needs and because businesses are not individuals, this is not too easy, yet it is theonly viable option.

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Challenge #3: Complexity of B2B products

In B2B markets, products are usually tailored and that is why making market segmentation strategies a success is very difficult in these markets. Additionally, each product bought by a business is rarely being used in isolation, in most cases, it is only a part of a larger system. This has made it mandatory to include experts in the market segmentation process of these markets which makes the whole process expensive. However, in B2B markets, there is a small section of customers who are important enough that they actually rise behind the setback of B2B market segmentation process. They need to be regarded as a unique segment with their own specific needs. Otherwise, they will walk away, and the firm will incur a huge loss.

Infiniti’s Solutions

With the years of expertise in market intelligence services, Infiniti research help businesses to measure the effectiveness of a marketing campaign, identify the most profitable market segments, analyze changes in market expectations, and also devise value maximization market segmentation strategies to enhance their shares. Also, through market segmentation solutions and need analysis, Infiniti helps businesses to gain actionable insights into expanding, diversifying, and tackling market competition.


Are you looking for solutions to any of these challenges or want to know more about our market intelligence services?

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5 Strategies to Do Effective Market Size Analysis for a Start-Up

For any startup, apart from developing a unique product or hiring the right talent, doing some market research is also very crucial. A part of this market research should include market size analysis. It is very difficult to make money for a startup without any market size analysis. Market size estimation helps to distinguish between two categories, the market that has to be addressed and the available market. The addressable market provides the opportunity for your product or service and the available market is the one for which you compete realistically. If you are able to understand the difference between these two, it can help you to develop a customer specified product offering. Market sizing gives you a sense of key market trends. It can give you the clue of the necessary demand driving products and services and move in the required direction.  Moreover, those trends also indicate whether a substitute for your product is on theContact US horizon that could potentially affect your market size. But to achieve the desired result, you need to have proper strategies for market size analysis in place. In this article, we have tried to provide you with such strategies by the help of which you can really stand ahead of your competitors.

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Ask Me Anything: Everything You Need to Know About Market Segmentation

We often tend to associate psychographics, lifestyles, values, behaviors, and multivariate cluster analysis routines to the term market segmentation. Interestingly, market segmentation is a much broader concept that penetrates into the practice of business throughout the world. In today’s business scenario, where customers expect a high amount of customization and personalization in their goods and services, market segmentation is highly beneficial.Request Proposal

What is market segmentation?

In a nutshell, market segmentation refers to diving and subdividing a company’s target market based on certain commonalities or similarities that they share. It is the process of defining a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. It determines how the company divides its customers or cohorts into smaller groups based on characteristics including income, age, personality traits, or behavior. These segments can be used to optimize products and advertising to suit the needs of different customers.

What are the key types of market segmentation?

The following are the key types of market segmentation:

Geographic segmentation: One of the most common types of market segmentation. In this method, companies segment the market by attacking a restricted geographic area. Here, different target customer groups are created based on geographical boundaries.

Demographic segmentation: In this type of segmentation, customers are grouped based on various demographic factors. These include age, family size, gender, education, income occupation, and nationality.

Behavioral segmentation: This involves dividing customers based on various decision-making patterns including purchase, consumption, lifestyle, and usage. Segmenting the market based on purchase behavior of the customers enables marketers to develop a more targeted approach.

Psychographic segmentation: This method of segmentation considers psychological aspects of consumer behavior by dividing markets according to personality traits, lifestyle, values, opinions, and interests of consumers. Psychographic segmentation is a legitimate way to segment a market if the proper segmentation variables can be correctly identified.