A Study of Market Segmentation for Uk Frozen Food Industry

7118 Words Aug 26th, 2010 29 Pages
A Study Of Market Segmentation For UK Frozen Food Industry

Abstract
The objectives of this study are to perform market segmentation for a SME in the frozen food sector. The study could form a basis of segmentation framework for a SME like Eden Farm, the framework once developed from academic literature would help to undertake a market segmentation in the frozen food industry with relevant segmentation criteria which would form a basis of targeting strategy for the company.
In this Dissertation, the literature on Market Segmentation is reviewed and relevant criteria for segmentation in an industry are understood. The typology from the literature identifying the variables for segmentation
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Hence, the study identifies growth strategies in the sector by using segmentation framework and relevant analysis.
Definition of the Company’s Issue
Eden Farm is a distributor of frozen food and ice cream across UK with a strong base in the North East and Yorkshire. The company’s prospect market is wholesale, cash and carry, symbol groups, CTN’s, forecourts, independent supermarkets. At the moment, the company is trying to increase its market presence in various sub sectors of the market. The frozen food retail is represented by many sub sectors and is composed of many market players. The business on the whole is variable across sectors and the levels of risk and opportunities for each sub sector and product is variable in nature.
The retail food industry is highly dynamic in nature and over the years, competition has increased and customer turnover has increased thereby reducing profit margins. The key to success in the sector is to understand the market structure well and selectively target the growth opportunities for profit by understanding the key criteria for growth and developing a framework for segmentation based on the company’s strengths.
The company has to evaluate the market segmentation process and understand the customer needs to form a strategy driven approach for profitable growth. There exist barriers for segmentation as firms lack an