A Market Segmentation Analysis for ABI and SPAR


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A Market Segmentation Analysis for ABI and SPAR

  1. 1. A market segmentation analysis for ABI within Southgate SPAR <ul><li>Presented by: Trang Nguyen </li></ul><ul><li>Nirvana Doodla </li></ul><ul><li>Kim Thompson </li></ul><ul><li>Carla Redding </li></ul>
  2. 2. <ul><li>Identify the market segments and to develop the target market for Southgate SPAR with regard to ABI products. </li></ul><ul><li>Southgate SPAR - mixed target market </li></ul><ul><li>Segmenting the Southgate SPAR market and developing the proper target market for Southgate SPAR with regard to ABI </li></ul><ul><li>Promotional plan for December 2009 till June 2010. </li></ul>
  3. 3. Problem Statement <ul><li>To identify, the market segments and the target markets for Southgate SPAR with regard to ABI. </li></ul><ul><li>Aim of the study </li></ul><ul><li>Target markets for Southgate SPAR with regards to ABI products, and to develop promotional strategies that effectively appeal to the chosen target market . </li></ul>
  4. 4. Objectives of the study <ul><li>Identify the market segments and the target market for Southgate SPAR with regard to ABI </li></ul><ul><li>To increase SOVI (Share of Visual Inventory) within the store with regard to ABI products </li></ul><ul><li>To increase brand awareness on the 6 focus brands namely: </li></ul><ul><li>Powerade, Minute Maid, Play, Nestea, Beat and Bonaqua Pump </li></ul><ul><li>To develop a promotional plan for ABI product within Southgate SPAR. </li></ul>
  5. 5. Customer: Southgate Spar <ul><li>The customer is Southgate Spar situated at 19 Trelawney Road, Bisley, Pietermaritzburg. </li></ul><ul><li>The store is currently undergoing a revamp in order to better suit customer needs </li></ul><ul><li>The main communication barrier between ABI and Spar is the ABI sales representative </li></ul>
  6. 6. Research Methodology <ul><li>Research design - Descriptive research </li></ul><ul><li>Primary research - Observation and Questionnaires </li></ul><ul><li>Observation took place on: Thursday 13, Saturday 15 and Sunday 16 August 2009 ,a total of 354 beverage products were purchased. </li></ul><ul><li>The data collection was conducted on Saturday 22, Sunday 23, Monday 24 and Tuesday 25 August 2009. The sample size of the data collection was 121 participants </li></ul><ul><li>Data was analysed using SPSS and used to formulate the segmentation for Southgate SPAR. </li></ul>
  7. 7.
  8. 8. Most Frequently Purchased Brands
  9. 9. Products Purchased by:
  10. 10. Gender and Most preferred brands <ul><li>Coke purchasers: 65% were males, only 35% were female. </li></ul><ul><li>This is similar for Aquelle and Iron Brew. </li></ul>
  11. 11. Race and Most Preferred Brands <ul><li>White customers- Crème soda and Coke </li></ul><ul><li>Black customers - Coo-ee and Aquelle </li></ul>
  12. 12. Customer Survey Findings
  13. 13. Preferred Brands
  14. 14. Segmentation Variables <ul><li>Geographic </li></ul>
  15. 15. Demographic <ul><li>Income </li></ul>
  16. 16. Demographic <ul><li>Age </li></ul><ul><li>47.9% of the respondents were between the ages of 20 – 39, while 44.6% were above the age of 40. </li></ul><ul><li>Race </li></ul><ul><li>The majority of the respondents (68.6%) were Black, while 26.4% were White. </li></ul>
  17. 17. Demographic <ul><li>Gender </li></ul><ul><li>55.4% of the research participants were male, and 44.6% were female. </li></ul><ul><li>Family Life </li></ul><ul><li>55.4% of respondents were not married </li></ul><ul><li>79.9% of the research participants did have children </li></ul>
  18. 18. Behavioural <ul><li>Usage Rate </li></ul>
  19. 19. Behavioural Special Event - Braai
  20. 20. Behavioural <ul><li>Special Event - Party </li></ul>
  21. 21. Behavioural Special Event – Family Outing
  22. 22. Psychographic <ul><li>Motive </li></ul><ul><li>Most common reasons for purchase: </li></ul><ul><li>Taste (40.2%) </li></ul><ul><li>Cheaper Price (15.7%) </li></ul><ul><li>Accustomed to it (11.8%) </li></ul><ul><li>Sugar Free (9.8%) </li></ul>
  23. 23. Psychographic <ul><li>Lifestyle </li></ul><ul><li>Equal amount of respondents (42.1%) shop at Southgate SPAR on a daily or weekly basis. </li></ul><ul><li>33.1% of the respondents conducted their grocery shopping at Southgate SPAR </li></ul><ul><li>20.7% used Southgate SPAR for their convenience shopping </li></ul><ul><li>7.4% used it for both. </li></ul>
  24. 24.
  25. 25. Reasons vs. Age
  26. 26. Reasons vs. Race
  27. 27. Reasons vs. Gender
  28. 28. Reasons vs. Marital Status
  29. 29. Reasons vs. Income
  30. 30. Reasons vs. Family Influence
  31. 31. Reasons vs. Brands
  32. 32. SPAR Customer Profile Taste Seekers Value-for-money Buyers Brand Loyalists <ul><li>Taste is important </li></ul><ul><li>39 and younger </li></ul><ul><li>More Black </li></ul><ul><li>More males than females </li></ul><ul><li>Usually not married </li></ul><ul><li>R5000 – R15000/month </li></ul><ul><li>Little family influence </li></ul><ul><li>Preferred brands: Coke, Fanta Grape, Stoney, and Aquelle </li></ul><ul><li>Price is important </li></ul><ul><li>40 and older </li></ul><ul><li>Health conscious </li></ul><ul><li>Sugar free </li></ul><ul><li>Black and White </li></ul><ul><li>More females than males </li></ul><ul><li>Married mostly </li></ul><ul><li>R10000 – R15000/month </li></ul><ul><li>High family influence </li></ul><ul><li>Preferred brands: Sprite Zero, Coke Zero, Coke Light, and Coo-ee Apple </li></ul><ul><li>Indifferent buyer, loyal to a single brand </li></ul><ul><li>20 to 49 </li></ul><ul><li>Mainly Black </li></ul><ul><li>More males than females </li></ul><ul><li>Usually not married </li></ul><ul><li>R5000 – R15000/month </li></ul><ul><li>Medium family influence </li></ul><ul><li>Preferred brands: Coke, Iron Brew, Sparletta Crème Soda, and Sprite Zero </li></ul>
  33. 33. Taste seekers <ul><li>Young, Black, male </li></ul><ul><li>Independent, single and career minded </li></ul><ul><li>Optimistic, youthful, full of life </li></ul><ul><li>Positive, exuberant, playful and imaginative </li></ul>
  34. 34. Value-for-money Buyers <ul><li>Middle aged to senior, racially diverse, health conscious and price sensitive </li></ul><ul><li>Do not compromise on taste </li></ul><ul><li>Celebrate duality </li></ul><ul><li>Sense of self and identity without being bound by limits </li></ul>
  35. 35. Brand Loyalists <ul><li>Fun loving, playful, positive about life </li></ul><ul><li>Young, Married, Black males </li></ul>
  36. 36. Segment attractiveness Segment attractiveness Taste Seekers Value-For-Money Buyers Brand Loyalists Weight (/10) Score (1-10) Total Weight (/10) Score (1-10) Total Weight (/10) Score (1-10) Total Size 4 10 40 4 7 28 4 6 24 Purchasing Power 3 6 18 3 8 24 3 6 18 Quantity 3 7 21 3 8 24 3 7 21 10 10 10 Total 79 76 63
  37. 37. Business strength Business strength Taste Seekers Value-For-Money Buyers Brand Loyalists Weight (/10) Score (1-10) Total Weight (/10) Score (1-10) Total Weight (/10) Score (1-10) Total Price competitiveness 4 9 36 4 6 24 4 10 40 Customer knowledge 4 9 36 4 6 24 4 8 32 Brand awareness 2 7 14 2 7 14 2 9 18 10 10 10 Total 86 62 90
  38. 38. Market Attractiveness/Business Strength Matrix Business strength Strong (70-100) Average (40-69) Weak (0-39) Segment attractiveness High (70-100) X Taste Seekers X Brand Loyalists XValue-for-money buyers Medium (40-69) Low (0-39)
  39. 39. Target markets <ul><li>Primary: Taste Seekers </li></ul><ul><li>Secondary: Value-for-money Buyers and Brand Loyalists </li></ul>
  40. 40. Promotional Plan
  41. 41. Promotion Plan <ul><li>December 2009 </li></ul><ul><li>Christmas Competition </li></ul><ul><li>Summer Beach Campaign </li></ul><ul><li>January 2010 </li></ul><ul><li>6 Pack Summer Campaign </li></ul><ul><li>Summer Braai Competition </li></ul><ul><li>Back to School Campaign </li></ul>
  42. 42. Promotion Plan <ul><li>February 2010 </li></ul><ul><li>Valentine’s Day Special </li></ul><ul><li>In-store promotion of Beat and Bonaqua Pump </li></ul><ul><li>March 2010 </li></ul><ul><li>Fanta’s Easter Egg Hunt </li></ul><ul><li>April, May, June 2010 </li></ul><ul><li>- 2010 Soccer World Cup Campaign </li></ul>
  43. 43. Recommendations
  44. 44. In-Store Recommendations for ABI within Southgate SPAR <ul><li>Stipulate the amount that the customer is saving on a particular item example: Was R12.99 – Now R11.49 – Save R1.50. </li></ul><ul><li>EDLP display should include all products that are on promotion, including Coke, Coke Light, Coke Zero, Sprite, Fanta, and Twist. </li></ul><ul><li>Place an ABI fridge behind the deli. </li></ul><ul><li>There should be more in-store promotions such as tasters: Beat, Nestea, and Minute Maid. </li></ul><ul><li>All products must have prices indicated, especially for 330ml cans. </li></ul><ul><li>Relationship between SPAR and ABI sales representative needs to be built </li></ul>
  45. 45. General Recommendations for ABI <ul><li>Bonaqua water in 5-litre format and 1.5 litre format </li></ul><ul><li>Powerade with pop-up lid </li></ul><ul><li>Avoid associating Bonaqua Pump with Bonaqua flavoured water </li></ul><ul><li>Minute Maid in the lunch box size (200ml) </li></ul><ul><li>Insert “Fizz-Free” label on Minute Maid cans </li></ul><ul><li>Introduce Litchi flavour for Minute Maid </li></ul><ul><li>Bring back the Play four-pack </li></ul>
  46. 46. <ul><li>Thank You!!! </li></ul><ul><li>Any questions or comments??? </li></ul>