“The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.”
There are thousands of companies today employing this trait to customers so they can sell their product(s). The product I have decided to choose for this assignment comes from the category of breakfast cereals and also caries this trait. My product is a;
“Lightly toasted breakfast cereal manufactured by the Kellogg’s Company. The cereal was introduced to the United States in 1956, made primarily from rice and wheat but now offers various different flavours in their cereal. The name was created by taking the K for Kellogg's and adding the word "special" to it for marketing purposes.” (Gökhan. 2008) [Online].
Of course I’m talking about Kellogg’s Special-K! Although the Special-K brand originated as a breakfast cereal it now boasts 15 types of varieties of products ranging between cereals, bars, and snacks. All companies are after one thing, customer satisfaction. In order for a company to do so they must satisfy their target market segment. When looking at segmentation we first must understand what it means. As in the case of (Jobber.pg211, 2004) Jobber states that “market segmentation provides the basis for the selection of target markets.” Jobber goes on to say then that a “target market is a chosen segment of market that a company has decided to serve” In relation to this then we must ask ourselves what segmentation approach do Special-K take? I think its very Profile segmented, demographic, in that its advertising focuses on an age group, a gender, and a life cycle. To begin with when we think of Special-K we automatically assume it’s for females aged maybe from 25 to early 40’s. Why? Firstly their advertisements portray the images of beautiful females eating the cereal – with slogans on their boxes like “spoil yourself...not your figure!” Their latest cereal box would also give us the impression it is for females. The box displays a woman in a bikini with a skimpy waist line promoting the Special-K’s ‘Two Week Challenge’, which I will discuss later. Kellogg’s have cleverly aimed their product at this age group. Ever increasingly females around this age are fixated on their appearance and their weight and as people search for a magic solution to weight loss and diet trends spread people will try anything to look and feel good. In keeping with trends let us consider the Psychographic segments. Lifestyle is a key factor in the target market for this product. People now choose the healthier product, they are checking the contents on the box, and they are checking how many calories, how much fat, etc, are in the product.
“Practically everything on the shelf now has some health claim or other... that's what consumers are looking for”. (The Times 2007)
Special-K uses this trend to target their market and create sales. With slogans on their boxes like “less than 3% fat” people are increasingly buying the cereal. Over the summer Special-K had an advertising campaign called the “Special-K- Two Week Challenge”. It marketed that if you ate the cereal twice a day plus another meal that you would have a “slimmer waist line” in just two weeks! On their website they claimed “In a study by a leading University the Special-K Challenge worked for up to 3 out of 4 people”. (Anon, 2008) [Online] This marketing campaign immensely boosted sales. Kellogg’s now use this factor of healthier lifestyle to their benefits. While on the topic of benefits, this behavioural segment is used throughout Special-K. Customers seek the benefit of loosing weight through eating the cereal, very beneficial to customers as some may just be buying the cereal for this reason! To finalise targeted segments let us look at Geographical bases. Cultural differences play a key part in selling a product. Different geographical regions have different...