The document discusses market segmentation and analyzing consumer behavior for direct mail marketing services provided by Australia Post to their business customers. Specifically, it examines Australia Post's customer Domino's Pizza franchisees, who use direct mail marketing to promote pizza sales. The target market for direct mail includes businesses across Australia seeking new and repeat customers. Research shows most consumers prefer receiving mail over digital communications, suggesting direct mail is an effective marketing channel.

1. Colleen Sedgwick Analyse Consumer Behaviour 1
Diploma of Graphic Design
BSBMKG402B Analyse consumer
behaviour for specific Markets
Assessment 3: 30532/01

2. Colleen Sedgwick Analyse Consumer Behaviour 2
Definition of market
segmentation.
 According to the Business Dictionary[1]:
 the breaking down of a larger, more homogenous market into smaller segments which
have similar
 needs,
 wants, or
 demand characteristics
for a product or service.
 Four basic factors that affect market segmentation are
 a clear identification of the segment,
 measurability of its effective size,
 its accessibility through promotional efforts, and
 Its appropriateness to the policies and resources of the company.
 A company can then base its segmentation strategies on
 behavioural,
 demographic,
 geographic and
 psychographic (lifestyle) differences.
 [1]Business Dictionary (2016): ‘What is market segmentation? Definition and Meaning, in Business Dictionary, http://www.businessdictionary.com/definition/market-
segmentation.html; accessed Wednesday, 2 March 2016 at 22:19;

3. Colleen Sedgwick Analyse Consumer Behaviour 3
Product or Service
 I have chosen a B2B (Business to Business) marketing service –
Direct Mail Marketing - with Australia Post[1].
 In this instance, Australia Post divides (or segments) its market
into two categories: Business to Business and Business to
Consumer, and Direct Mail Marketing is one service available for
B2B customers.
 The nature of this service is direct mail marketing:
 the business creates an advertising campaign,
 gets a mailing list,
 works out who are the most ‘attractive’ customers,
 decides which customers they wish to include (or not),
 works out a budget and time frame,
 whether or not they want to do use the services of mailing houses
and print shops,
 and posts the letters off.
 [1] Australia Post (2016): http://auspost.com.au/business-solutions/direct-mail-marketing.html; accessed Monday, 7 March 2016 at 8:22:41 PM

4. Colleen Sedgwick Analyse Consumer Behaviour 4
Target Market
 All kinds of businesses and franchises use
direct mail. Restaurants and takeaway
franchises use it.
 An example of Australia Post’s B2B customer
is the Domino’s Pizza franchise[1].
 [1] Australia Post (2012): Domino’s Pizza Case Study (Unaddressed and Addressed Direct Mail) - How we helped
Auhttp://auspost.com.au/media/documents/aus-post-case-study-dominos.PDF; accessed Monday, 7 March 2016
at 8:22:41 PM

5. Colleen Sedgwick Analyse Consumer Behaviour 5
Product or Service Need
 Again, being a Business-to-Business customer, Domino’s
franchisees face the challenge of gaining new customers while
retaining existing ones.
 Australia Post’s strategy is to send out unaddressed mail to both
new and existing customers, and send direct (addressed) mail to
existing ones.
 While some customers will receive communications from
Domino’s via their email and through social media, most of them
still continue to receive communications via the Post.
 And according to Australia Post’s statistics, most people will read
their mail[1]:
 about 82% of customers will check their letterbox daily
 an additional 11% of customers will check their letterbox every two
days,
 54% of customers will store their mail for later reference.
 [1] Op cit

6. Colleen Sedgwick Analyse Consumer Behaviour 6
B2B – Customer Profile (1)
A description of the area where your typical customer lives:
 Being a business customer, a corporation like
Domino’s is likely to have franchises in many
different locations
 they have 447 stores Australia wide (most towns and
suburbs) and is one of the world’s (and Australia’s) leading
pizza franchises[1]
 The number of locations means Domino’s can satisfy their
own customers within their own region

[1] Domino’s (2015): Domino’s Corporate, https://www.dominos.com.au/inside-dominos/corporate; accessed Monday, 7 March 2016 at
10:10:38 PM

7. Colleen Sedgwick Analyse Consumer Behaviour 7
B2B Customer Profile (2)
A profile of the typical household income of your customer:
 The typical ‘household’ income could be seen in terms of
profits, share prices, dividends and the like (see below)[1] (as
in the case of Domino’s):
 [1] Domino’s (2015): Annual Report for the Financial Year Ended 28th June, 2015, in
http://dominosinvestors.com.au/; accessed Monday, 7 March 2016 at 10:36:27 PM; page 18

8. Colleen Sedgwick Analyse Consumer Behaviour 8
B2B Customer Profile (3)
A brief description of the social class of your typical customer and
how you define this class status:
 Domino’s state that their ‘core customers’ are men between 18
and 39, though overall, their own target (consumer) market is
basically ‘anyone who eats’[1].
 However, among Domino’s investors or shareholders (and likely
B2B customers of direct mail) would be its franchisees – the
people who own and run the Domino’s stores.
 Their income and/or savings would need to be pretty substantial
if they are to invest in a franchise in the first place[2].
 [1] Australia Post (2012); page 1
 [2] Domino’s (2015): Franchising with us – Requirements, http://www.dominosfranchise.com.au/prospective-
franchisee-requirements.aspx; accessed Monday, 7 March 2016 at 10:56:17 PM

9. Colleen Sedgwick Analyse Consumer Behaviour 9
B2B Customer Profile (4)
A summary of your customer’s typical family status (i.e. single,
married, divorced)
 Prospective franchise owners can be of any marital status,
 though it says they must have family members (i.e. husband, wife – if married) or business
partners present at the interview.
A summary of any lifestyle or psychographic details that apply to
your typical customer
 Domino’s makes no mention of any psychographic or lifestyle factors of it’s franchisees,
though as a business customer of Australia Post, they would be committed to growing the
business and increasing their profits, and if the results of their direct mail campaign is
anything to go by, then that would be a good motive for any business to employing this type
of campaign.
 I would expect that many business owners, like Domino’s franchisees for instance, could
be categorized as ‘Achievers’ if they see technology as a ‘productivity boost’[1].
 Though they may send unaddressed mail to potential customers, a lot of these print-based
communications will include information about their own company website and will actively
encourage online ordering.
 [1] Strategic Business Insights (2012) ‘US framework and VALS™ types’, Strategic business insights, viewed February 2012, Link 9,
http://www.strategicbusinessinsights.com/vals/ustypes.shtml; accessed Friday, 4 March 2016 at 12:41:27 PM; in particular -
http://www.strategicbusinessinsights.com/vals/ustypes/achievers.shtml; accessed Saturday, 12 March 2016 at 5:14:20 PM

10. Colleen Sedgwick Analyse Consumer Behaviour 10
B2B Customer Profile (5)
Provide a description of the current market and, in particular,
its current size in dollars and/or volume units.
 For Domino’s, the results were as follows[1]:
 ROIs (returns on investments) were up by 10%
 Australia Post was able to deliver 81 million direct-
mail items annually.
 This is one example of how Australia Post can meet
the needs of its business customers through direct
mail.
 [1] Op cit (Australia Post, 2012)

11. Colleen Sedgwick Analyse Consumer Behaviour 11
B2B Customer Profile (6)
Develop a statement explaining the alignment
between your selected product or service
and your consumer profile.
 As customers most prefer print communications to
email or any other media channel[1],
 this means franchisees can further channel their
communications to customers in their particular
territories[2].
 [1] Australia Post (2014): Better Connections – Mail Continues to Deliver, in
http://auspost.com.au/media/documents/better-connections-report-feb2015.pdf; viewed
Monday, 7 March 2016 at 11:36:45 PM
 [2] Ibid, Australia Post (2012), * Australia Post Consumer Omnibus Mail Findings, April 2012

12. Colleen Sedgwick Analyse Consumer Behaviour 12
B2B Customer Profile
Identify and test features of the product/service
in accordance with the marketing plan.
 most customers preferred to receive actual
mail from particular organisations, rather
than just emails,
 it would follow that these organisations
would expect a better response rate from
their customers.

13. Colleen Sedgwick Analyse Consumer Behaviour 13
Marketing Plan – Is Direct Mail
Affective?
Here are the Statistics in Australia
Post’s ‘Better Connections’
Report
For Personally addressed mail
 Australians received an average of 7.5 pieces of
personally addressed mail a week in December
2014, compared with 7.0 pieces in November 2013.
 There was also a seasonal fluctuation – the higher
number of mail pieces received in December 2014
reflects the start of the Christmas period.
 In comparison, Australians received a lower
average of 6.4 pieces of personally addressed mail
in July 2014. This is a pattern we have previously
observed with unaddressed mail
Unaddressed mail
 Australians received an average of 10.8 pieces of
unaddressed mail in December 2014, compared
with 10.7 in November 2013, indicating that mail
volumes have remained stable year-on-year.
 As we observed previously, unaddressed mail is
strongly affected by seasonal fluctuations.
 In July 2014, people reported receiving an average
of 8.7 pieces of unaddressed mail.
 The mid-year drop in mail volumes provides a great
opportunity for your message to stand out and be
read
4 key observations:
 Over 50% of Australians prefer personally
addressed mail for magazines, important or
sensitive information, and brochures and
catalogues.
 Over 50% prefer email format for brief
information.
 People still prefer to receive bills and
statements in printed mail format.
 Around a quarter of Australians would like to
receive bills and statements, vouchers or
coupons and detailed information in both
mail and email formats.
So, because most customers preferred to
receive actual mail from particular
organisations, rather than just emails,
then it would follow that these
organisations would expect a better
response rate from their customers.
 Australia Post (2014): Better Connections – Mail Continues to Deliver, in
http://auspost.com.au/media/documents/better-connections-report-
feb2015.pdf; viewed Monday, 7 March 2016 at 11:36:45 PM
 [1] Ibid, Australia Post (2012), * Australia Post Consumer Omnibus Mail
Findings, April 2012

14. Colleen Sedgwick Analyse Consumer Behaviour 14
References
 Australia Post (2012), * Australia Post Consumer Omnibus Mail Findings, April 2012
 Australia Post (2012): Domino’s Pizza Case Study (Unaddressed and Addressed Direct Mail) - How we
helped Auhttp://auspost.com.au/media/documents/aus-post-case-study-dominos.PDF; accessed
Monday, 7 March 2016 at 8:22:41 PM
 Australia Post (2014): Better Connections – Mail continues to deliver, in
http://auspost.com.au/media/documents/better-connections-report-feb2015.pdf; viewed Monday, 7 March
2016 at 11:36:45 PM
 Australia Post (2016): Business Solutions – Direct Mail Marketing, http://auspost.com.au/business-
solutions/direct-mail-marketing.html; accessed Monday, 7 March 2016 at 8:22:41 PM
 Business Dictionary (2016): ‘What is market segmentation? Definition and Meaning, in Business
Dictionary, http://www.businessdictionary.com/definition/market-segmentation.html; accessed
Wednesday, 2 March 2016 at 22:19;
 Domino’s (2015): Annual Report for the Financial Year Ended 28th June, 2015, in
http://dominosinvestors.com.au/; accessed Monday, 7 March 2016 at 10:36:27 PM; page 18
 Domino’s (2015): Domino’s Corporate, https://www.dominos.com.au/inside-dominos/corporate; accessed
Monday, 7 March 2016 at 10:10:38 PM
 Domino’s (2015): Franchising with us – Requirements, http://www.dominosfranchise.com.au/prospective-
franchisee-requirements.aspx; accessed Monday, 7 March 2016 at 10:56:17 PM
 Strategic Business Insights (2012) ‘US framework and VALS™ types’, Strategic business insights,
viewed February 2012, Link 9, http://www.strategicbusinessinsights.com/vals/ustypes.shtml; accessed
Friday, 4 March 2016 at 12:41:27 PM;
 Strategic Business Insights (2012): ‘Achievers’, in
http://www.strategicbusinessinsights.com/vals/ustypes/achievers.shtml; accessed Saturday, 12 March
2016 at 5:14:20 PM