In this unit, we discussed the concept of market segmentation, which is defined as product positioning that subdivides the market to target specific customers. Identify a product that you have seen with either effective or ineffective market segmentation. Explain what makes the market segmentation effective or ineffective.
A good example of effective market segmentation is Nike. Nike has successfully segmented its market based on various factors such as age, gender, lifestyle, and athletic performance. They create different lines of shoes, apparel, and accessories to cater to specific customer needs, such as the Nike Air Zoom for serious athletes or the Nike Air Max for casual wearers who value comfort and style.
What makes their market segmentation effective is how they understand and cater to different customer segments. Nike uses targeted marketing and advertisements that resonate with specific groups, like athletes, sports teams, or fitness enthusiasts. For example, Nike’s “Just Do It” campaign appeals to both professional athletes and regular fitness-conscious people, leveraging inspiration and motivation.
On the flip side, a less effective example could be PepsiCo’s Tropicana brand. Tropicana faced backlash when they redesigned their packaging, making it difficult for regular customers to identify the product. Their market segmentation failed because they didn’t consider their target market’s preference for familiarity in grocery store environments. They were trying to appeal to a more upscale demographic with sleek packaging, but it alienated loyal customers who preferred the traditional look. This misstep in understanding consumer needs and behavior led to significant backlash.
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