GREEN TOYS INC.
It is a crucial key for the companies to adapt to their target customers’ needs, wants and values. Larsen (2010) stated that a company could not satisfy all customers in broad and diverse markets and hence divided the customers into segments. Then the company decided which segment they want to target.
Marketing segmentation is, defined by Kotler and Armstrong (2005), “dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes”. Market segmentation is a process of dividing into several segments based on demographic, geographic, psychological, and behavioural factors (Thomas, 2007). By that, the company is able to understand better of their target customers and conduct their marketing effectively (Gunter and Furnham, 1992). Target Segments for Green Toys Inc.
According to my research, the target segment for Green Toys is more to psychological – eco-friendly personality and healthy lifestyle. Resource Conservers
The resource conservers hate waste. They usually will use products that recyclable and reusable. Green Toys can easily target on this segment of customers because their products are produced by recycled milk jugs, which saves energy and save electricity which producing them. The materials and toys are not shipped from overseas, hence save a lot of energy and less transportation that reduces greenhouse gasses. Even the package of the toys is also recyclable. With all these environmentally-friendly production system and ingredients used, the resource conservers will totally get attracted on the products. Health Fanatics
Eco-friendly users are normally people that concern on the health as well. Not only themselves, but the whole family’s health they care about, especially the kids. However, some toys are still concern the parents because the materials that make the toys are not suitable for the kids to put into the mouth; as kids like to explore things by putting into their mouth. Green Toys target on these parents by producing products that are safe for the kids. They produce cookware and dining sets, dish sets, which designed for real foods, easily cleaned with soap and water or put into the dishwasher. They also produce vehicle toys, etc. for the kids, which the parents have no worries on affecting kids’ health while putting into their mouth. Outdoors Enthusiasts
Green customers are also outdoor enthusiasts who spend their free time camping, hiking, etc. and also like to bring their kids to play outside with the nature. They will use reusable bottles or containers to avoid littering and they seek to minimize the impact of their recreational activities. These outdoors enthusiasts will look for products from recycled materials. Hence, Green Toys able to attract these customers with their products – toys like cookware and dining sets, sand play sets, flying saucer, planting kit, jump rope, which are safe for the kids to play and learn.
Product strategy is the plan of selling the products in a market place (Queensland Government, 2011). Customers today are becoming more educated and demanding; the company might face higher cost if they did not plan well their product strategy. Hence, product strategy is very essential for the company to increase their profits. In my research, the current product strategy that implemented by Green Toys are (1) improve existing products, (2) use recycled, environmental and healthy materials in production, (3) energy saving in production, and (4) earth-friendly packaging. Improve Existing Products
Any toys can be produced in any toy companies. However, Green Toys has used this strategy to outstand in the toy industry – using eco-friendly material in production. Green Toys selected recycled milk containers as the materials for their products (Edwards, 2010). The milk container is said to be the safest, cleanest plastic, and meets the FDA...
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