A company is planning to introduce a line of pre-cooked food items which will be convenient to use within minutes. How should the company segment the market?
It is correctly said that first, the Company must differentiate those who are interested in pre-cooked products and those who are not. Second, they must define sub-categories of the group that is interested in a convenient, quick meal.
Another thing the enterprise should consider when segmenting the market is how they will appeal to those who want healthier foods. If this easy, and quick-to-prepare meal is loaded with artificial flavors, preservatives, and color, then they should not spend marketing dollars on the all-natural and organic segment of the market.
If the pre-cooked food product is void of preservatives, artificial flavors, and artificial color, and is a much healthier alternative to a host of other pre-cooked, ready-to-soon-serve foods on the market, then they can tailor a message to the consumer segment that looks for healthier food choices. It is all about understanding the wants and needs of the particular market niche you feel will be the most frequent consumers of your product.
The first thing that the company should do is to segment the market into those who are and are not likely to want this line of food. It should include people like young singles, families with children where both parents work, and perhaps seniors living alone or as a couple.
Next, the firm should segment the market between the groups mentioned. Each of these groups is likely to consume different media and to respond to different sorts of advertisements. Therefore, the firm should advertise in different places and using different approaches so as to reach these groups.
In short, the firm needs to first separate those who will buy from those who will not and then it needs to segment those who will buy into groups with different demographic characteristics.