1. Target marketing and market segmentation of Bling H20
Bling H2O crystal-encrusted of Beverly Hills is the inspiration of Kevin G. Boyd, a Hollywood writer-producer. While working on various studio lots where image is, well, everything, he noticed that you could tell a lot about a person by the bottled water he/she carried. So just like any other savvy business person, he decided to capitalize on his finding. "Our product is strategically positioned to target the expanding super-luxury consumer market." Target marketing
Kotler（2004）Here, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each. For example, if the Bling H20 were available in Australia, the marketer would only select super-luxury consumers as target marketing. There are three main steps in target marketing. The first is market segmentation –dividing a market into distinct groups of buyers with different needs, characteristics or behavior who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. There are four variables that used in analyzing consumer market segments – geographic, demographic, and psychographic and behavior variables. Today, I take the Bling H20 as example to apply those variables to help me to understand more deeply about the market segmentation. According to Kotler, Adam and Brown et al. (2004, p216-226) • Geographic segmentation calls for identifying and analyzing the different geographical units that make up a market – nations, regions, states, municipalities, cities or neighborhoods. For example, Bling H20 targets the super –luxury consumer market then this product should match the location where the consumers who have the purchase power for this product. New South Wales like Mosman, Woollahra or Hunters Hill, Kuringai, North Sydney. • Demographic segmentation consists of identifying which variables – such as age, gender, family size, family life-cycle stage, income, occupation, education, religion, race and nationality. For example, Bling H2O may more focus on the income segmentation. Bling H2O targets the affluent consumers with luxury goods. • Psychographic segmentation, buyers are divided into different groups based on socioeconomic status, lifestyle, or personality characteristic. The Bling H2O may focus on those have high socioeconomic status. Boyd said In Hollywood it seemed as if people flaunted their bottled water like it was part of their presentation. • Behavior segmentation enables buyers to be grouped on the basis of their knowledge of the product, their attitude toward it, the way they use it and their responses to it. Occasions: When a product is consumed or purchased. For example, selling Bling water in the upscale restaurants. Loyalty: Loyal consumers - those who buy one brand all or most of the time - are valuable customers. For example Paris Hilton buys Bling H2O for her dog.
2. Bottled water industry in Australia
An overview of bottled water industry was provided in Australian Beverage organisation show the bottled water market has continued its strong growth pattern - now in its sixth year. The Australian market is primarily a spring water market - Australians showing a marked bias for a natural great tasting product of consistent quality. Near waters include such products as flavoured natural spring water without sugar, or vitaminised waters that may contain low levels of sugars or other sweeteners. Lee (2008) describes the bottled water market is expected to grow 9.1 per cent to $460 million this financial year, according to a forecast by the market researcher IBIS World, and Australia lags other developed countries in consumption. In the next year Australians are expected to drink 242 megalitres of bottled water, the equivalent of 19 600-millilitre bottles each. IBIS World predicts a boom in "premium" water...
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