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:
[1] Australia Post (2016): http://auspost.com.au/business-solutions/direct-mail-marketing.html; accessed Monday, 7 March 2016 at 8:22:41 PM
works out a budget and time frame,
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),
whether or not they want to
do use the services of mailing
houses and print shops
and posts the letters off.
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 has 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)
Franchise owners - any marital status,
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
No mention of any psychographic or lifestyle factors of it’s franchisees,
As B2B customers, they would be committed to growing the business and increasing
their profits,
Results of direct mail campaign – motive for any business to use 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
helps businesses meet the needs of its own
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 Consumer Profile (7)
Other examples:
Bambini Pronto: an online retailer of baby goods whose sales
skyrocketed after delivering print catalogues via Print Post and
produce 50,000-60,000 copies of two print catalogues a year, to
complement their online catalogues[1];
Letterbox Deals: went from producing 8-page catalogues in 2009
to 24-32 page ones in 2012; they used the unaddressed mail
service to deliver these communications and were so successful
that two-thirds of their customers are repeat advertisers[2].
Advantedge: a financial services company that is part of the
National Australia Bank group was able to use Australia Post’s
high-speed print production process to send out notices of rate
changes[3].
I could include more examples; however, the gist is that print
communications and direct mail work best for Australia Post and
their customers when it comes to marketing communications.
[1] Australia Post (2013): How we helped Bambini deliver the real thing in http://auspost.com.au/media/documents/aus-post-case-study-bambini.pdf; viewed
Saturday, 19 March 2016 at 5:47:40 PM
[2] Australia Post (2012): How we helped create a win-win situation with Australia Post in http://auspost.com.au/media/documents/aus-post-case-study-letterbox-
deals.PDF; viewed Saturday, 19 March 2016 at 5:48:16 PM
[3] Australia Post (2014): How Australia Post helped Advantedge save time and money, in http://auspost.com.au/media/documents/advantedge-mail-marketing-
case-study.pdf; viewed Saturday, 19 March 2016 at 6:16:43 PM
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.
Most of their communications during the
Christmas period.
6.4 pieces of personally addressed mail in
July 2014.
Unaddressed mail - Australians
received an average of
10.8 pieces of unaddressed mail in
December 2014, compared with 10.7 in
November 2013, As we observed
previously, unaddressed mail is strongly
affected by seasonal fluctuations.
In July 2014, 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 preferred their 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.
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
B2B Marketing Plan (2):
Implications
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.
15. Colleen Sedgwick Analyse Consumer Behaviour 15
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 (2012): How we helped create a win-win situation with Australia Post in
http://auspost.com.au/media/documents/aus-post-case-study-letterbox-deals.PDF; viewed Saturday, 19 March
2016 at 5:48:16 PM
Australia Post (2013): How we helped Bambini deliver the real thing in
http://auspost.com.au/media/documents/aus-post-case-study-bambini.pdf; viewed Saturday, 19 March 2016 at
5:47:40 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 (2014): How Australia Post helped Advantedge save time and money, in
http://auspost.com.au/media/documents/advantedge-mail-marketing-case-study.pdf; viewed Saturday, 19
March 2016 at 6:16:43 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