Section 4: Demographics & Segmentation 5. Your Marketing Director believes that

Question

Section 4: Demographics & Segmentation

5. Your Marketing Director believes that the customer profile of Sunsilk is different to the customer profiles of any of the other brands. Using the data in Tables 4-6, comment on whether this is the case? Explain your answer. (300 words approx.)

6. What marketing strategy recommendations would you make to your Marketing Director as a result of your demographic and segmentation analysis in Q5. (200 words approx.)

Table 4: Demographics- Gender Female Male Average Brand Female Male L'Oreal 64 Sunsilk 41 Pantene 61 Herbal Ess 58 42 Table 5: Demographics Age 16-25 26-35 36-45 46-5556-65Avg Dev.Dev.Dev.Dev. Dev. MAD Brand 16-25 26-3536-45 46-55 56-65 16 35 18 18 L'Oreal Sunsilk 16 31 18 27 23 23 28 20 29 15 13 15 Pantene 30 Herbal Ess 18 23 15 Table 6: Demographics Total household income $70k Average Brand Less than | $50,000- I More than $50,000 S70,000 $70,000DeviationsDeviationsDevia 29 L'Oreal Sunsilk 39 Pantene Herbal Ess 18 24 41 20 23

Explanation / Answer

5) There are various ways to identify the target market for a product or service and demographic segmentation is an excellent method to identify target group of customers or consumers. It divides the entire prospective consumer base on the basis of age, gender, income, size of family, education, ethnicity, religion, etc., selecting the variables relevant to the product. The manager is right in thinking that the customer profile of Sunsilk is different from the others has the profile shows minimum deviation through the segments overall. The deviations even where they exist are minimal. At the same time it shows maximum consumption. As the deviations are low and consumption high it greatly reduces the risk factor associated with the product. Within the gender segment it has the average share therefore showing no deviation. Within the age segment it shows a deviation which is positive as negative deviation in 1 age group is covered by a positive one in another age group resulting in an overall positive deviation. The total household income segment also shows a positive mean average deviation resulting due to negative deviation beam balance by appositive higher deviation in another group. The branches Amulya demarcation of the groups within the segments in the age segment the 46 to 55 age group exhibit a very clear preference for the product where was the 56 to 65 group exhibits a clear dislike for it. In a similar manner in the total income segment the middle income group of $50,000 to 70000 shows a clear below average consumption for the product where else the above $70000 group exhibits a clear preference for it. Therefore the product makes it easier the target the exact consumer as it shows very clear segmentation.

6) the marketing strategy for this product would be targeted at the female tender because irrespective of consumption Sunsilk being a household utility product range women are mostly the decision makers for selection of these products in most households. Considering this advertisements and promotions should be more women targeted. It should be father targeted towards age group exhibiting maximum consumption that is between 26 to 45 years and also have special consideration for the 46 to 55 age group as it shows scope for development of the segment. Advertisement and promotional activities to target the households with incomes of $50000 and above as this includes the segment which is below average and hence requires development and growth for targeted marketing and improved customer service as also the group was answering has a clear advantage and this can be used as a leverage for increasing the loyal customer base within the group. The product packaging, design, marketing and image should all correspond to and satisfy these requirements.

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