Brand Segmentation

Introduction

Retailers have historically depended on the importance of location to determine store placement. Marketers have found that placement is dependent on several factors involving location. Included in these factors are the consumers' demographics, lifestyles, and perspectives. The diversity among these three elements ranges more so in urban and suburban neighborhoods. In examining Springfield, Massachusetts, the suburban neighborhood about an hour and a half west of Boston, a bookstore seems to be the best fit. While Springfield has a plethora of commercial chain retailers, it lacks a community store where people can commune to read a book or magazine and enjoy a coffee. A collective store like Barnes and Nobles would gain the best benefit in expanding into Springfield because its unique demographics, lifestyles, and opportunistic perspective.

Findings

The demographics of a location will help in estimating the expected profit levels for a certain location by examining household incomes, education, race, and age. Based off the website www.ZipSkinny.com, there are several outstanding factors about the Springfield household based on the 2009 census. First, Springfield's household education levels show that about 85.6% who graduated high school or higher and only 17.6% have four-year degree, a Bachelors degree, or higher. The majority of people in the workforce are employed in a management or professional position, at 30.2%, or in a sales or office position, at 29.4%. The average household income is about $46,000 (ZipSkinny). This demographic information is useful in determining the price-point of retailers that would appeal to consumers. In addition, the majority at 59% of the population is age 59 and under while the average age is about 38. Age is helpful in generally understanding the activity and interest of a community, but examining the lifestyles of the people is an even better factor.

Springfield's demographic output shows some unique factors, but to understand the community, it is important to view the community from another dimension. A customer segmentation profile expands marketers' understanding of a demographic by describing the lifestyle of a consumer. In Springfield, MA, the demographic is primarily middle age or mature adults. In exploring Clarita's PRIZM Segmentation System, Springfield's population a mature community filled with households without kids or "empty-nesters". The households most value their family and community. They are generally upper-middle class households with a moderate to above average income. Because they enjoy their family time some favorite past times are cards, puzzles, games and reading (PRIZM Segmentation System). In creating a profile about people from Springfield, their family time plays an important role in their activities. To have a full understanding of this area,