Assignment – Create the Value: Market Segmentation Analysis and a Value Proposition
Your company has decided to explore the possibility of developing a new retail brand aimed at a specific target market. Please prepare a report that would form the basis of a planning discussion with your senior marketing managers. The term retail brand refers to a retail store concept, as opposed to a manufacturer’s product or service brand – the retail company is the brand – like Target, GAP or Victoria’s Secret.
Your report should include a detailed analysis of a potential market segment and a description of the proposed value proposition. Your report should be about 1,000-1,250 words and include a minimum of three references. Please use the APA format for your paper and references. Please include the following sections:
1. Brief Description of the proposed retail brand concept
2. Potential Market Segment
Identify the characteristics of your potential target market. The figure from the Week 2 lecture is helpful – you may also include other variables that you consider relevant. You also need to estimate the size of your target market and the revenue potential.
Major Segmentation Variables for Consumer Markets
Pacific Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England
City or metro size
Under 5,000; 5,000-20,000; 20,000-50,000; 50,000-100,000; 100,000-250,000; 250,000-500,000; 500,000-1,000,000; 1,000,000-4,000,000; 4,000,000 or over
Urban, suburban, rural
Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 64+
1-2, 3-4, 5+
Family life cycle
Young, single; young, married, no children; young, married, youngest child under 6; young; married, youngest child 6 or over; older, married, with children; older, married, no children under 18; older, single; other
Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000-$30,000; $30,000-$50,000; $50,000-$100,000; $100,000 and over
Professional and technical workers; managers, officials, and proprietors; clerical salespeople; craftspeople; forepersons; operatives; farmers; retired people; students; homemakers; unemployed people
Grade school or less; some high school; high school graduate; some college; college graduate
Catholic, Protestant, Jewish, Muslim, Hindu, other
White, Black, Asian, Hispanic
Baby boomers, Generation Xers
North American, South American, British, French, German, Italian, Japanese
Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers
Culture-oriented, sports-oriented, outdoor-oriented
Compulsive, gregarious, authoritarian, ambitious
Regular occasion, special occasion
Quality, service, economy, speed
Nonuser, ex-user, potential user, first-time user, regular user
Light user, medium user, heavy user
None, medium, strong, absolute
Unaware, aware, informed interested, desirous, intending to buy
Attitude toward product
Enthusiastic, positive, indifferent, negative, hostile
3. The Value Proposition
Describe the bundle of benefits/features that are offered to the target customer. Features are what the company offers and benefits are what the customer derives from these features.
Functional Benefits – What basic features are offered?
Emotional Benefits – What features are offered that make the customer feel good?
Self-Expressive Benefits – What features are offered that help reflect and communicate the customer’s values to everyone in the social environment?