Scribd
Upload
88 views4 pages

Task 1 - Identify The Customer Profile

Market segmentation involves dividing customers into groups that have common needs and will respond similarly to products and marketing efforts. It has several benefits for businesses: 1) It allows companies to understand customer needs and desires better in order to design products tailored to each segment. 2) Companies can develop different styles, prices, and marketing approaches targeted to each segment. 3) Segmentation leads to higher customer satisfaction and loyalty by matching products closely to customer preferences. The customer profile described a target market of males and females ages 15-20 who are interested in cars, sports, and an active lifestyle. The proposed hat design would feature a nylon material, sporty or normal brim, and potentially a car brand logo.

Uploaded by

ghepardu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
88 views4 pages

Task 1 - Identify The Customer Profile

Market segmentation involves dividing customers into groups that have common needs and will respond similarly to products and marketing efforts. It has several benefits for businesses: 1) It allows companies to understand customer needs and desires better in order to design products tailored to each segment. 2) Companies can develop different styles, prices, and marketing approaches targeted to each segment. 3) Segmentation leads to higher customer satisfaction and loyalty by matching products closely to customer preferences. The customer profile described a target market of males and females ages 15-20 who are interested in cars, sports, and an active lifestyle. The proposed hat design would feature a nylon material, sporty or normal brim, and potentially a car brand logo.

Uploaded by

ghepardu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Scenario for the Business Challenge

At ‘Progress Ahead’ we are looking to expand our accessories range to include a


new range of hats. We are seeking exciting hat designs to stock in our
nationwide outlets.

Casual hats are needed for all seasons. These might include: Sunhats, Festival
Hats, Beanies or Caps, among many other possible options – could your design
deliver?

Confidential Forecast:

Read through all of the tasks carefully, so that you know what you will
need to do to complete this assignment.
Task 1: Identify the customer profile for a business challenge
product
All of Learning Outcome 1 is assessed in this task.

You want to design a business proposal that meets the requirements of the business challenge
scenario.

You may present your work in any format that you consider is suitable for the tasks. The
evidence you produce must be in your own words.

First, YOU MUST have a top-level idea of the type of hat you wish to produce
(E.g. a child’s sunhat, an adult’s cap etc…).

You must:

1a. Explain market segmentation and its benefits for a business, using real examples.

Market segmentation is where you take a group of buyers that respond similarily to a marketing
action. And it makes examples of different people who pay the full value but sell it differently

Companies usually use 3 types of identification in market segmentation:


1) Homogenity , or common needs within a segment
2)Distinction, or being unique from other groups
3)Reaction, or a similar response to the market

Market segmentation is finding a product that other groups use but improve it to make it more
enviromental and more better than the others. The main objective is to have lots of advantage on
the price and have many buyers that are interested.

Companies can be segmented in groups for example you can be an international company, or
you have to chose an age a gender to make your product . The main point is it has to be different
than the other companies and be better. Examples of market segmentation : Its like BMW and
AUDI they are 2 of the best car companies in the world for reliability and cars. Every year bmw
and audi compete with each other to make more better cars and more futuristic. This is the same
with market segmantation every dealer will try to make something better than the other company.

https://www.investopedia.com/terms/m/marketsegmentation.asp
Site I used for research on Date: 23/06/20 At 18:58

Benefits of market segmentation:

1) We can study what each customer wants.


This means that the company will study the customers offerings and on that you find out the
satisfaction of the customers. You split the into different categories .For example people might
not be satisfied by buying a coffee machine and they have to buy a filter after the purchase.

2) We can design different styles to satisfy each customer.


Because of this many customers would be interested because of the different styles .For
example apple makes different colours of the phones.
This means that the company would design more designs to satisfy their customers Which leads
to more profit .

3) You can develop different prices for each customer.


This means that the company thought for all kind of people (working class, rich, poor) to be able
to buy a hat on their budget. For example a hat is £2 and then another hat is £60 by the same
company.

4) It really matches to the customers.


The company designed this to really match the preference of the customers.
For example Apple makes phones that would suit people very well which means that the other
companies would do the same to suit their customers. For example I like my phone to be Red,
you would buy something that you don’t like.

5) Good communication.
To have lots of customers the company has to make promotions and advertising on TV for
the customers to be interested. For example, people will see a TV advert about the new hats
and will get in touch with the company to order one.

https://www.yourarticlelibrary.com/marketing/market-segmentation/market-segmentation-top-10-
benefits-of-market-segmentation/32298
Site I used for research on Date: 09/07/20 At 9:04

https://www.marketing91.com/6-advantages-segmentation/
Site I used for research on Date: 09/07/20 At 9:45

You must (for the business challenge product - Hat - you are considering):

1b. Apply your knowledge of market segmentation to create and describe a customer profile for
the business challenge (e.g. age, gender, occupation, income, lifestyle interests).

Age 15-20 Because many teenagers


are interested in hats

Gender Both Because many people wear


hats especially in the
summer

Occupation Interested in Cars Because some hats would


Employed be made for certain types of
cars
Income ANy The hat will be high quality
and will have 6 months
warranty.

Lifestyle and interests Sport and cars It will be hats designed for
sport with cars or only for
its own lifestyle

Materials Nylon Nylon is very good because


on hot days it is better and
is lighter.

Car brand Logo If not will be plain With the The design will be custom
Company’s logo for every hat built. It will
have their preference on the
hat.
Caps Rubber or plastic Rubber gives more grip and
plastic is cheaper than
rubber because it is basic.

Brim Sporty , Normal Sporty is better for sport


and the normal is for just for
going outside

Total marks for Task 1: 12 marks

You might also like