By producing our new product which is Excel Isotonic Drink, definitely we need to do certain research like market research. First of all, we have to target the market. Without a question, we need to select a certain location before we do the market targeting.
The location we have chosen is one of the states in Malaysia which is Selangor. Selangor is known as the capital city of Malaysia. In view of this, Selangor is having the biggest amount of people staying here. Selangor is having 5 million people working here and living here. Due to this, as we are just starting to launch our new product, we decided to choose the capital city of Malaysia so that the percentage to sell this product well is higher.
After that, we need to do a target market segment. Market segments can be divided into four types. The four types of market segments are geographical, demographical, behavioral and also psychological.
First and foremost, geographical segmentation is known as the most common form of market segmentation. It is use for certain developing companies to segment the market by offensive the limited geographical area. It is a mutual marketing strategy that when you wide target consumers has variances favorites based on where they are sited in. For an example, people who come from United States America will definitely having different buying pattern and preferences with people who come from Malaysia.
Next, demographical segmentation is one of the market segmentations members too. Demographical segmentation is defined as based on the variances in demographics issues of dissimilar groups of customers. It can be divided into few groups which are age, gender, family size, education, occupation, religion, nationality and so on. For an instance, a teenager will definitely having different taste and preferences with the people who I son 60 years old. Which means a teenager would like to use the high technology phone
References: http://www.investopedia.com/terms/p/penetration-pricing.asphttp://www.investopedia.com/terms/v/valuebasedpricing.asp http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/