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Market segmentation and positioning
Internet case study: Vertu

Katharina Kuhn Clemens Hochholdinger

2007/03/27

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Table Of Content
» Introduction » Questions » Evaluating Market Segments
– Market Factors – Competitive Factors – Political, Social And Environmental Factors

» Consumer Segmentation
– Behavioural – Psychographic – Profile

» Marketing Strategies » Recommended Marketing Strategies
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Introduction

» Vertu is the “world‘s first luxury mobile phone“ brand » All phones are handcrafted » Prices range from 5.000€ to over 20.000€ » Special concierge service

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Questions

(a) Using segmentation bases described in this chapter, describe the potential market segment for Vertu? (b) Apart from the price tag, what marketing strategies are employed by Vertu to target the world‘s superrich? (c) Recommend what marketing strategies you would adopt in targeting this market? 2007/03/27 4/18

(a)

(a) Using segmentation bases described in this chapter, describe the potential market segment for Vertu?

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Evaluating Market Segments
Market attractivness

Market factors

Competitive factors

» Segment size » nature of competition » Segment growth rate » New entrants » Segment profability » Competitive differentation » Price sensitive » Bargaining power of customers » Bargaining power of suppliers » Barriers to market segment entry » Barriers to market segment exit

Politicial, social and environmental factors
» polititical issues » social trends » environmental issues

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Market Factors

» » » » » » » »

Segment size: small Segment growth rate: small Segment profability: high Price sensitive: small Bargaining power of customers: very small Bargaining power of suppliers: very small Barriers to market segment entry: Barriers to market segment exit: 7/18

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Competitive Factors

» nature of competition: few competitors » New entrants: few brands try to enter the same market segment » Competitive differentation: offer a new value of mobile phones

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Political, Social And Environmental Factors

» polititical issues: no influence » social trends: materialistic world » environmental issues: scarce goods (e.g. gold, diamonds)

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Consumer Segmentation
Consumer segmentation

Behavioural
»Benefits sought »Purchase occasion »Purchase behaviour »Usage »Perceptions and beliefs

Psychographic
»Lifestyle »Personality

Profile
»Demographic »Socio-economic »Geographic

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Behavioural

» Benefits sought: status, image » Purchase occasion: selfbuy, gift, routine » Purchase behaviour: high brand loyalty » Usage: heavy users » Perceptions and beliefs: high but fulfilled expectations

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Psychographic

» Lifestyle: young and middleaged sophisticates, the self-confident » Personality: extroverts, dominants, winners

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Profile

» Demographic: 25-50yrs, singles, young couples » Socio-economic: upper class, superrich » Geographic: western world, Asia

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(b)

(b) Apart from the price tag, what marketing strategies are employed by Vertu to target the world‘s superrich?

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Marketing Strategies

» Vertu markets its products by focused and customized marketing: – Design mobile phones (handcrafted) – Concierge service – Personal contact and advisory service

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(c)

(c) Recommend what marketing strategies you would adopt in targeting this market?

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Recommended Marketing Strategies

» Focused and customized marketing is very efficient in this segment » Show more representation (e.g. at highsociety-events)

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Any Questions?

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