As you know, consumers have the different needs, wants, culture and location so we must make marketing segmentation. It means that we divide giant market into smaller segments which have the similarities. Then we can achieve more effectively with productions and services. To do this, we should look at 4 majors: geographical, demographic, psychographic and behavioral variables. Nestle is the world’s largest food company that did marketing segmentation very well. They also base on 4 majors variables to segment.
First is the geographic segmentation. We must understand the geographical different in needs and wants. For example: in Viet Nam, Nestle has the Maggi brand with many kinds of Asia sauce, but Maggi do not exist in England because of the different in the geographical taste. While, Nestle sell pet food in England and some other countries but they do not sell in Viet Nam. It is easy to understand that Vietnamese does not love pets as much as the other countries do. They think their pets can eat whatever and pet food is not important.
Secondly, demographic segmentation calls for dividing the market in to different variables such as age, gender, family size and so on. For instance: Nestle segment into the different of age. For baby, they have Nestle baby foods while young people can drink Milo, Nescafe or eat ice cream, chocolate and cookies. Nestle health care Nutrition is necessary for old people to overcome health concerns.
Thirdly, psychographic segmentation use the different in social class, life stage or personality characteristics to segment. Nestle Breakfast Cereals is the best choice for busy people and Nescafe also help them more alert in working. Besides, there are some people who love to eat can eat every time and every where. Confectionery such as Smarties, Aero, Butterfinger, and Orion can be called their best friends.
Lastly, behavioral segmentation base on the different in knowledge, attitudes or responses to a product....