market segmentation solution Archives - Business Intelligence

Tag: market segmentation solution

Market segmentation

4 Common Retail Market Segmentation Mistakes that You Might be Making

Even the most successful retail companies agree that the ‘one size fits all’ approach is no longer a viable option to survive in today’s exceedingly competitive marketplace. As such, they are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning for any retailer looking to segment their audience and better target the most valuable consumers. With over 15 years of experience in engaging retailers in successful retail market segmentation analysis and implementations, experts at Infiniti Research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.

Improve your marketing effectiveness with the right retail market segmentation strategy. Request a free proposal from our experts.

Why do retail market segmentation strategies fail?

 

Retail market segmentation

Defining segments too broadly

Segmenting the customer segments too broadly is one of the most common retail market segmentation mistakes that most companies make. This will consequently make them fall short to a competitor who targets more narrowly. Retailers can successfully create narrow segments by analyzing their customer accounts, website visits, and transaction history. By doing so, companies can better target customers. For instance, a customer who may be frequently purchasing a particular product and may be interested in a new and improved version of the product that the company is planning to launch. Although this might be challenging to achieve at the moment, but it would be more feasible when over time more and more data is gathered.

Not aligning business by market segments

Successful retailers tend to create market focused teams or segments which later gets organized into a market-focused business model. This allows the customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses who refrain from doing so are more likely to find their retail market segmentation strategy fail.

By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.

Managing segments locally

Some businesses that operate in a smaller market currently tend to set up their retail market segmentation strategy to only apply to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that the retailer will get blind sided by a more dynamic global economy.

Unclear retail market segmentation results

An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear idea of which markets are the most viable to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach. So, before beginning, get your research team together and clearly define their goals and the information you’re aiming to get.

Learn more about Infiniti’s solutions for retail businesses.

IR28

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.

Request Free Brochure

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.

GET MORE INFO

Market Entry Strategies

Customer Segmentation Strategy: 3 Key Challenges That Every Business Faces

A customer segmentation strategy is an invaluable tool for companies seeking to boost market share. However, most companies fail to implement an effective customer segmentation strategy. Modern companies know that they need to meet customer demands, but what they do not know is how to do this. Without precision, rich granularity, dynamism, and the context in the digital age, companies will be unable to meet the changing needs of their customers. Squeezed on one side by growing markets and on the other by merciless price-cutting, many companies are struggling to compete in today’s post-mass-market arena. The result can be undifferentiated offerings that yield no result and fail to please anyone. For businesses looking to improve the cash conversion cycle and bottom-line results, it is inevitable to do an effective customer segmentation analysis. In this article, we have discussed in detail about such challenges and many others that businesses face while devising their customer segmentation strategy and have suggested a few measures to deal with those challenges effectively.

Why IoT in Healthcare is the New Trend_ (4)Challenges in Customer Segmentation Strategy

Challenge #1: Understanding the scope of customer segmentation

For businesses, understanding the scope of segmentation is one of the most difficult challenges while formulating their customer segmentation strategy. If the scope is defined too broadly, it can lead to a very generic segmentation approach. On the other hand, segmentation of a very narrowly defined audience will result in very precise segments, but it would be of minimal relevance for other products or markets. This challenge requires businesses to think about several questions such as

  • What are the different degrees of scope at which currently segmentation is done?
  • How feasible are the variables of segmentation in customer segmentation analysis done for different business groups?
  • If standardizing segmentation across business groups is feasible or not?
  • What can be learnt from the competitors’ customer segmentation strategy?
  • What is their approach to customer segmentation analysis?

banner IR

Challenge #2: Comprehending inbound and outbound segmentation

Customer segmentation analysis reveals the fact that many businesses fail to understand the importance of inbound and outbound segmentation. They fail to decide how a customer segmentation strategy can be transitioned over the product life cycle so that there is a consistent view of segments and value propositions. This challenge requires companies to think about a few questions such as:

  • What are the uses of segmentation at the inbound stage?
  • What are the uses of segmentation at the outbound stage?
  • Can both the sets of variables be reconciled?
  • Can there be one “end-to-end” segmentation approach?

Challenge #3: Lack of Differentiation

A customer segmentation analysis asserts the fact that differentiation between the quality of products and their customers is very important for targeting the right customer for the right product. On a product level, without clarity in differentiation, businesses end up investing in products that are not aligned with profitability goals and current market trends. Differentiation facilitates businesses to make more strategic investments in products and customer service.

Gain more insights about our solutions for business and how we can help you formulate effective go-to-market strategies: 

Get More Info

Infiniti’s Solution

Infiniti Research, with its years of expertise in customer intelligence solution and customer segmentation analysis, is helping businesses to engage customers with confidence and gain unprecedented clarity on establishing individualized experiences in real-time. Infiniti helps businesses to measure the effectiveness of a marketing campaign in each of the customer segments, identify the most profitable segments of the customer, analyze changes in expectations of the customer, and also formulate value maximization strategies to improve their shares. Additionally, Infiniti helps companies to analyze their customers based on various variables at inbound and outbound stages like end-user behavior, usage scenarios, skill level, audience demography, price sensitivity, channel preference, and goals and outcomes.


Do you want to devise an effective customer segmentation strategy or want to gain more insights into our customer intelligence solutions? Contact us now!

Contact US

Market Research

Luxury Retail Client Gets Overview of the Market with The Help of Market Segmentation Solution

Infiniti PR Infographic Case Studies 2LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest market segmentation solution for a luxury retail client. The global luxury retail industry typically includes cosmetics, watches, fragrances, fashion, drinks, luggage, handbags, and jewelry. The global luxury retail segment is increasingly benefiting from the economic growth in the LAMEA and Asia-Pacific regions. Also, the increased spending power of the customers is expected to boost the market growth.

“Market segmentation solutions help clients to innovate in the luxury sector and bring the concept of a ‘brandship’ store – an evolution of the flagship store, focused more on building brand identity than product sales – to existence,” says an expert at Infiniti Research.

Request your proposal today!

Market segmentation specialists carried out extensive research comprising interviews and discussions with leading stakeholders in the luxury retail space to assist them in identifying the potential target segments and implement winning marketing campaigns. This helped the luxury retail client to develop an overall understanding of the luxury retail industry market.

Additional benefits of the market segmentation solution

  • Develop an overall understanding of the luxury retail segment
  • Help bring innovation in the luxury sector by bringing the concept of brandship stores
  • To know more,  request a proposal

 

 

To know more about how our market segmentation solutions helped the luxury retail client

Ask An Analyst_IR


Related posts

Market Intelligence

Market Segmentation Engagement: A Case Study on How We Assisted a Leading Polymer Manufacturer to Make Better Strategic Marketing Decisions

A polymer is a class of synthetic or natural substance that is composed of macromolecules. They form the basis of minerals such as quartz, diamond, and feldspar. Polymers also include man-made materials such as concrete, paper, glass, plastics, and rubbers.

The growing demand for polymers can be attributed to the growth of end-use industries such as automotive, packaging, transport rails, telecommunication, and infrastructure from emerging economies. The increase in adoption of polymer-based products is mainly due to the lightweight, strength, and design flexibility offered by them.

However, the global demand for the polymer is expected to witness a substantial growth over the coming years due to several factors, including the rise in demand for plastics across several vertical industries IR_RFPsuch as food and beverages and packaging.

The Business Challenge

The client A leading player in the chemical industry, specializing in the manufacturing of polymers

Objective To identify market segments with the most potential and address their specific needs to improve the overall market share. The primary intention was to focus on product development, marketing, and resource usage in segments with the most potential to multiply their service and marketing efficiency.

An international player in the chemical industry, specializing in the polymer manufacturing, wanted to implement precise market segmentation based strategies. As such the client approached our team of experts to leverage the use of Infiniti’s market segmentation solutions to gain detailed market insights.

The client also wanted to forecast and classify the demand in the global polymer market based on several factors such as demand category and regional distribution. The polymer manufacturing company also wanted to leverage the use of Infiniti ’s market segmentation solution to better understand the target market’s preferences and opportunities.

Their primary intention was to identify and segment the characteristics of the underlying market segments and use the extracted data for profitable and effective marketing. Additionally, the client also wanted to develop a strategic business plan to support the conclusion based on market segmentation.

Results The market segmentation engagement unearthed a series of findings that played a key role in enhancing their local and global strategies. Our solution also helped the polymer manufacturer in understanding the global scenario and the competitive environment of the polymer manufacturing market space, which, in turn, assisted them in making better strategic marketing decisions and enhance their overall business growth.

Polymer

Want more information about our market segmentation solutions?

Ask an analyst

The Journey

The market segmentation experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the chemical industry to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the global competitive scenario.

The Solution and the Business Impact

Using primary data collected from approximately 200 channels, along with several secondary sources of information, Infiniti’s market segmentation experts evaluated the size and growth rate of the polymer manufacturing sector. With the help our solution, the client was able to determine customer needs, evaluate the competitive landscape, and analyze the value chain economics.

The market segmentation engagement also enabled them to improve their customer retention strategies by focusing on the most profitable customers. Leveraging market segmentation also offered detailed insights on market segments and opportunities in the market. Furthermore, this engagement provided information on the economic, competitive, and political environment in different segments, which influence the growth of the market. The solution offered also helped the client to improve their overall organizational performance by enhancing their business strategies.


Polymer market trends

  • 3D printing technology The emergence of 3D printing technology has brought substantial changes in the polymer sector. Several leading players in this sector have already adopted this technology and implemented it in their processes. Also, the emergence of industrialized 3D printing will affect a number of different operations within the polymer industry.
  • Climate protection initiatives Climate protection initiatives fuel sustainability practices within the polymer sector. Also, leading manufacturers of thermoplastic elastomers among other polymer manufacturers are currently developing sustainability practices to keep future generations safe from the negative impact of poor climate control. Moreover, technological innovations with a focus on renewable resources are also being developed to overcome such challenges.
  • New processing trends and innovationsMajor innovations that have taken place in the global polymer market space are the reuse of similar materials in different packaging and one-time use without needing costly sterilization. Also, some of the targets within the polymers market are to integrate more components into smaller packages and to develop low cost, high-quality products.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemical industry.

IR_RFP


benefits of market segmentation

Get Smarter with Market Segmentation: Top 5 Benefits for Your Business

Many successful businesses continue to grow simply because they understand their markets and customers. One of the best techniques businesses can use to better target their customers is market segmentation. Simply put, market segmentation is an identification process that allows businesses to recognize the specific demands of particular customer demographics and use those insights to develop products and services that meet the target users’ demands.

Our market segmentation strategy can help you in optimizing your product launch and marketing strategies and reaching out to the right set of customers. Request a FREE proposal!

Request Proposal

What is Market Segmentation

Market segmentation is all about grouping your customers into different subsets based on their likes, dislikes, demands, and preferences. One of the main benefits of market segmentation for businesses is that it helps to gain a competitive advantage in the market by analyzing various customer groups and targeting specific products to meet their demands. Other major benefits of market segmentation are that it also simplifies things for the business by giving them clarity on different customer segments and understanding what they expect

Benefits of Market Segmentation

Helps determine market opportunities

Companies can reap the benefits of market segmentation by studying the various groups of customers and their level of satisfaction from the existing offerings. Wherever gaps of dissatisfaction are observed, companies can use this as an opportunity to improve and launch products to meet the requirements of this segment.

Tailor-make marketing initiatives

With the help of market segmentation, companies can understand the varied mindsets of their customers. These benefits of market segmentation help businesses to make the necessary adjustments in their marketing initiative targeted at different groups of customers. It further makes the customers feel that the brand is sensitive to their needs and ultimately gain a sense of belongingness with the brand.

Request for more info to gain detailed insights into the benefits of market segmentation and learn their benefits for your business.

Contact US

Product development and design

One of the key benefits of market segmentation is that it helps businesses to get into the minds of their customers and understand their real expectations from the brand. Companies can use market segmentation to identify what is working well for them and what is not in terms of their offerings to the customers. Brands can use this insight to make necessary alterations or additions to their products/services to ensure that customer needs are met efficiently.

Determining product pricing

Other major benefits of market segmentation are its ability to determine product pricing. It is essential for companies to adopt different product pricings for different markets, considering the price sensitivity of the customers in each market. Businesses can use market segmentation to identify the right prices to target new customers in various markets and fix prices for their products/services accordingly. This benefits of market segmentation help companies ensure that their offerings are neither overpriced or underpriced.

Assist in distribution strategies

One of the major benefits of market segmentation for businesses is its ability to aid in the identification of optimum distribution strategies for new products/services. For example, it helps companies identify the right distribution channels and outlets for products that are targeted at various segments of customers.

Improve your marketing effectiveness with the right market segmentation strategy. Request a FREE brochure to gain insights the benefits of market segmentation for your business.

Brochure CTA

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.