Marketing Ila 4

Market segmentation is the core of before implementing any marketing strategies, as it identifies the potential group that may consume this product/service. In a market, buyers often differ in their wants, due to factors such as locations, resources, buying attitudes and their personal buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

There are few different segmentation method that was used to identified the potential consumers for Boost

Juice. The first method is geographic segmentation, this means by dividing the market into different geographical units such as nations regions, states, local government areas, cities or even neighborhoods. A company may decide to operate in one or a few geographical areas, or to operate in all areas but pay attention to geographical differences in needs and wants. What contribute to boost Juice success is their choice of location, high visibility of the logo “Boost Juice” are often seen in the busiest area such as in the middle of a shopping center/mall, beside the supermarket, right to the main road etc. Their choice of locations certainly attracts lots of attention for whoever walk past and may want to have something tasty and healthy to drink. Thus, this intense expansion continue to success for Boost juice.

Another segmentation method which mostly contributed to Boost Juice’s success is their demographic segmentation, by dividing the market based on variables such as gender, income, age, family size, family life cycle, occupation and education etc. Demographic factors are the most popular bases for segmenting customer groups. Consumer’s needs, wants and usage rates often vary closely with demographic variables. Demographic variables are often consider to be easier to measure than most other types of variables. When marketers first define segments using other bases, such as benefits sought or behaviour, they must know segment demographic characteristics in order to assess the size of the target market and to reach it efficiently. (Principle of Marketing). This type of segmentation was also successful for boost juice, according to the official report, their “target demographic is 15 to 35 years old, with our core target market aimed at the 25 year old female who loves life and is looking for a healthy alternative to fast food!”(Boost Study Kit), by segmenting a specific group, it allows them to develop products that mainly focus on the demand from this group(s). While is cost effective and also managers could concentrate in developing ideals products.