Market Segmentation for Hyper Energy Drink

548 Words Jan 13th, 2018 2 Pages
Market segmentation is "the identification of portions of the market that are different from one another" (NetMBA, 2010). There are a number of different segmentation bases that we can use for energy drinks. These include demographic characteristics (age, ethnicity, income or education), psychographic (Type A personality, Type B personality) or usage (recreational user or for performance enhancement). For this product, demographics will be the basis of segmentation.
There are three different target markets that Hyper is trying to reach. The first of these is the young adult market (18-24) that is middle or class, and either in college or has just completed college. This market has modest income, but usually access to parental funds, and prefers the beverage both to assist with study and to assist with recreation. The secondary target market skews younger, ages 14-18. Usage patterns are roughly the same, but usage is less because their lives are less intense, and they are juggling fewer things. The tertiary target market is between 25-40. Again, these are middle class, mixed race, generally educated and professional or service industry. They prefer energy drinks for both recreational and work performance, and lead busy lives. Users in all three categories are from both genders, but skew to male.
The energy drink industry is highly competitive and fragmented in nature. The primary point of differentiation with Hyper is…
Open Document