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Market Segmentation

This document discusses market segmentation. It defines market segmentation as identifying portions of the market that are different from one another in order to better satisfy customer needs. Consumer markets can be segmented based on geographic, demographic, income, and occupational characteristics. Geographic segmentation examples given are Nestle segmenting its Nescafe Ice coffee market based on hot vs cold weather in Bangladesh. Demographic segmentation examples provided include Nestle segmenting baby and children product markets like Cerelac, Lactogen, Koko Krunch, and Nido based on age.

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Khadija Shabbir
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848 views

Market Segmentation

This document discusses market segmentation. It defines market segmentation as identifying portions of the market that are different from one another in order to better satisfy customer needs. Consumer markets can be segmented based on geographic, demographic, income, and occupational characteristics. Geographic segmentation examples given are Nestle segmenting its Nescafe Ice coffee market based on hot vs cold weather in Bangladesh. Demographic segmentation examples provided include Nestle segmenting baby and children product markets like Cerelac, Lactogen, Koko Krunch, and Nido based on age.

Uploaded by

Khadija Shabbir
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Market segmentation:

The marketing concept calls for understanding customers


and satisfying their needs better than the competitors do. But different customers
have different needs and it rarely is possible to satisfy all customers by treating
them alike. Market segmentation is the identification of portions of the market that
are different from one another. Segmentation allows the firm to better satisfy the
needs of its potential customers.1. Clearer understanding of the needs and wants
of selected customer groups.2. More effective positioning.3. Greater precision in
selecting promotional vehicles and techniques.

Bases for segmentation:

Consumer markets can be segmented on the basis of


following customer characteristics.

1.Geographic:

Weather:
Nestlé Bangladesh Limited segmented its market for Nescafe Ice based
on the geographic weather: hot and cold.

Nescafe Ice:
A coffee which can be consume with ice. During hot season consumers
consume this coffee with normal or cold water with ice cube to bring freshness in
their mind.

2.Demographic:

Age:
Nestlé segmented market for its major products based on the age. For the
products Cerelac, Lactogen, Koko Krunch, Nido, nestle divided the market
segment for baby and children of different ages.
Nido:
It is nutritious milk specially formulated for children 2 years onwards. It
contains 25
minerals and vitamin D which helps child’s growth.

Cerelac:
Nestle also offers Cerelac for new born baby. It contains milk and rice
mixed for
under one year’s baby. It fulfills baby’s proper nutrition.

Nesquick Koko Krunch:


Both are chocolate milk for children. Nesquick and Koko
krunch maintain child’s proper growth. It’s very delicious and also contains
vitamin protein, mineral.

Lactogen:
Nestle Pakistan brings full cream milk powder in our country. It gives
baby proper nutrition. Lactogen 1 is for babies whose age less than 7 months and
lactogen 3 is for babies whose age is below 12 months.

Income:

Nestle segmented their market based on customer’s income in an effectiv


e way.

Lectogen:
Nestle charge tk 800 for per 900 gm Lectogen 12 milk powder. They
also charge tk1000 for 900 gm Lectogen 3 milk powder pack. Middle income
and low income people are notable to buy these products for their babies.
Occupation:
Nestle segmented the market based on their customer’s occupation.

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