New Balance Company
(Minor Assignment 2)
2.0 Marketing Segmentation2
Footwear industry in China was lucrative, since there was an increasingly number of people buying brand shoes and increasing franchising opportunities, most shoes companies are expanding, thus the competition between shoes companies in the same market share becomes more and more fierce. (Arms, 2003) For New Balance Company, In order to maintain a substantial amount of market share, to target several suitable segmentations is vital. Those profitable segmentations can make New Balance Company become more competitive among its competitors such as Nike, Adidas and Reebok. In the following section, different potential segmentations will be classified and discussed by analysing different group of customers’ characteristics, needs and wants.
2.0 Marketing Segmentation
This is the first step in the marketing strategy. New Balance Company uses four main segmentation bases for dividing their market. Those bases are demographic, geographic, psychographic and behavioural.
New Balance Company offer similar products in different versions according to the age and life-cycle segmentation. Under the same style shoes, New Balance may offer small size shoes for children, and offer bigger sizes shoes to adult men and women. Also, marketers will offer some shoes designed particularly for one specific segment of the age cycle, such as most mature clients look for comfortable; fairly price, classic styles, good quality shoes, so New Balance offer the classic style shoes to those kind of people. (Rooyen, 2009)
New Balance Company is changing the nature of geographic segmentation by using the internet to widen their markets. They use different official websites and promote different focus products for different area people like Hong Kong, ShangHai and Taiwan. For Hong Kong people, they perceived shoes as one of the most important accessories to go with fashion rather than just go with practical purpose. Fashion is golden rule for Hong Kong people; they are trend followers, and eager to source good taste and fashionable shoes. (Ravindran, 2007) Therefore, New Balance marketers are using fashion style websites in order to attract Hong Kong people. Fashion new balance shoes is constantly appeared and parts of product hit high mark because it were just what the public wanted.
Under psychographic segmentation, New Balance Company focuses on the values, attitudes and lifestyle groupings variable. “A person’s pattern of living as expressed in their activities, interests and opinions” (Kotler, et al, 2007, p.254). According to Roy Morgan Research Centre’s famous research on consumer opinions and trends, there are some groups of people can become the segments of New Balance Company. The first group is “Young Optimism”, which means this type of people is optimistic about their lives and they tend to seek more new things and unknowns. They have dreams about their future and look forward to improve their prospect. (Levine & Benjamin, 1997). They would like to try New Balance shoes, because New Balance designers always design new styles shoes in order to attract these kinds of people. Apart from the “Young Optimism”, there is another group which is called “Something Better”. This group refers to the people whose characteristics are competitive and ambitious so that they work hard for many things. They always want something better and esteem is very important for them. Thus they need good reputation among their friends or colleagues and they think highly of image, which means they concern about their appearance and status (Levine & Benjamin,...