Every day, hundreds of new products are introduced into the market. When launching a new product, companies face many difficult decisions such as choosing the optimal target market. Determining the best target market for a new self-propelled, robotic lawn mower will require proper segmentation, targeting, and positioning. The consumer market should be divided with demographic and geographic segmentation; the entrepreneur should target middle-aged and elderly homeowners in sweltering locations; and the company should apply a “more for the same” positioning strategy.
Demographic and geographic segmentation should be used to view the market structure. The use of multiple segmentation bases allows for a more accurate analysis of the market. Demographic segmentation, particularly age and life-cycle segmentation, should be applied on the population. The segments would consist of children, young adults, middle-aged adults, and elderly or disabled individuals. According to Mintel, higher-income households are “more likely to purchase DIY home improvement items” such as a robotic lawn mower. Generally, middle-aged and elderly individuals have higher incomes or savings in comparison to the remaining population; these individuals can afford houses with spacious lawns which require frequent mowing. Children are dependent on their guardians, while young adults are more likely to live in temporary housing such as apartment complexes where lawn mowing is managed by third parties such as
The case shows that their current end customers tended to be baby boomers (born 1946 – 1964) and generation x (born 1965-1984). Many of the baby boomers owned their owned homes and showed that they achieved personal
Consumer behavior is also a factor to be considered, because factors affecting consumer behavior will make clients not to buy, for one reason or another. To get the target market or rather to increase the target market, one has to create and deliver content that attracts and contains customers. As is in the case of our products in John Deere Company, necessary strategies have to be implemented to retain the new target market. Marketing strategies capable of luring people especially the old
The potential consumer target markets fall into two categories; the segments will be referred to as “Suburban Select” and “Young & Active”.
Wisher primarily distributes its mowers in farm supply stores and hardware stores located outside metropolitan areas. 75% of the company’s sales come from rural areas, while 30% of sales regenerated from wholesalers and 20% from dealer sales. Much of the company’s brand awareness comes from co-op advertising through all sources of media. Swisher’s target markets are the Midwest and Southeast, where the Ride King and their private label Big Mow are primarily distributed. The company focuses sales on consumers with over an acre of land, as well as farmers with several hundred acres. The Ride King has a distinct advantage over its competitors, since it is the only mower that has one front wheel that can turn the mower 360 degrees without shifting. As the economy improves, Swisher can take advantage of increasing sales by selling more of its mowers in large retailers. Its retail price would make it the cheapest product on the market. As other brands have distributed their mowers under private labels to the growing mass merchandisers, Swisher’s sales could be quickly depleted. In order for Swisher to fully compete, it must be able to gain market share on other private label brands. Many of its competitors have an advantage, because they use front engine mowers, while the Ride King does not. With other manufacturers selling their mowers in the same locations as Swisher, Swisher must create more brand awareness within urban areas by
This specific segment has the wealthiest standard of living in America. They buy expensive cars and vacation in exotic places around the world. Also, this area is a haven for empty-nesting couples over the age of 55. Data has shown that these elderly couples without kids have pets and tend to spend a great deal of money on them as well. No other market segment has a higher concentration of residents earning over $100,000 a year and possessing a postgraduate degree.
The purpose of this exercise is to help you define and classify your chosen product, and define a specific target market. What a product is, how it supports the company mission, and how it fits
Despite this fact, home ownership in the economic and social landscape of today is a big responsibility. Economically, most millennial most likely cannot afford to own their own home. A mortgage is a much larger payment than rent for an apartment. Similarly, owning a home means paying for gas, electric, water and furniture to fill a house; this also includes any grounds upkeep depending on the home’s location and property taxes. Socially, Millennials seem to be straying away from owning a home because it
On 04/11/2017 I, Deputy Daniel Pruitt was dispatched to the area of 33rd West Aveune and 151st Street in Keifer for a complaint.
50 years ago, the average sized home had 1,200 square feet and three bedrooms. By the 2000’s, that number had grown to 2,500 square feet. This happened because the famous “baby boomers” had gotten old enough to build or buy their own house, so they built bigger
On Thursday, November 9, 2017m at 10:45 a.m., the Investigator traveled to conduct an employer level AOE/COE investigation at the Insureds business; El Wester Lawn Mower Shop, located at 5663 York Blvd., Highland Park CA 90042-2550. We received two separate r/s’s from Mr. Fernando Rodriguez and Mrs. Cinthia Rodriguez. They confirmed the claimant’s full-time employment at their company as Certified Mechanic as of December 2012. They established that their company performs minor tune-ups on mini-bikes, mopeds, motorized bicycles that they charge $50.00; coupled with the repairs that they regularly perform on the lawn mower and other motorized gardening equipment. Mr. Rodriguez alleges on June 22, 2017, at 11:30 a.m., the claimant got through
One out of every four homeowners in the United States is 65 years and older (Golant, 2008). The majority of aging adults would prefer to continue aging in place by remaining in their homes and neighborhoods (Hooyman & Kiyak, 2011). As a result, moving is typically a last resort. According to Golant (2008), “When the older occupants of these homes also have low incomes, the physical inadequacies of their dwelling especially increase their health and safety risks, and they become financially burdened by even routine maintenance costs” (p.5). As elderly homeowners age, it may become necessary to install modifications such as widened hallways or doorways for wheelchair use, ramps, and specially equipped bathrooms. It can be difficult for those with low incomes to find reliable and affordable professional labor to complete these improvements, especially when these individuals may be financially suffering from the weight of property taxes, insurances, and mortgages as well. Older adults with low-incomes typically reside in physically declining neighborhoods, which also puts them at greater risk for health problems, social isolation, and psychological distress (Golant, 2008). The financial burden of maintaining a home has numerous effects on the biological, social, and psychological aspects of a person’s life while
Homeownership is a double-edged sword. It is the “American Dream” to one day own a house. Compared to their predecessors, Millennials are seeing the advantages and disadvantages of homeownership at an earlier age. These early generations believed owning a house was the cherry-on-top to being an all-around American and achieving the “American Dream”. As a cynical generation who grew up with information at our fingertips and the world falling around us, millennials see homeownership differently. “The cautious and conservative approach to home buying displayed by millennials is driven by the fact their outlook on life was shaped by a number of bad things when they were young—the terrorist attack on the World Trade Center in 2001, the 2008 financial crisis, the housing bust with mass foreclosures and a weak recovery that has so far provided incomes below that of prior generations” (Stowe England, 36). We learned that the world was not fair and that it is time to redefine the “American Dream” to reflect our current economic society.
General Issue: which segments should the company target? How should the company and its products be positioned?
|Who |Aged 60+, still have their |Families with an busy |Families with a stay at |People who do not own a |
According to Blythe (2010), segmentation, targeting and positioning are fundamental to the concept of meeting customer need. This essay will outline and analyse these fundamental tools of marketing in an academic setting, in addition to, assessing how an organisation of my choice applies them in a working environment. Included in this essay, will be an academic discussion of the advantages of market segmentation, targeting and positioning drawing upon views of various scholars. Furthermore, I will provide a profile of my chosen organisation as well as an assessment of their market segmentation, targeting and positioning strategies. The essay will finish with a summary of the main points and will draw conclusions based on the evidence which has been presented.