https://research-methodology.net Necessary knowledge to conduct a business research Sat, 02 Mar 2024 19:33:51 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-segmentation-targeting-and-positioning/ Sun, 18 Feb 2024 03:58:11 +0000 https://research-methodology.net/?p=77546 BYD segmentation, targeting and positioning helps the electric automaker identify and reach their target audience effectively. These three components work together to develop a clear marketing strategy. BYD focuses on the following segmentation bases:   1. Geographic Segmentation. Urban vs. Rural. BYD prioritizes urban areas with higher EV adoption rates and developed charging infrastructure. They offer smaller, affordable EVs for city commutes. Developed vs. Developing Countries. In developed countries, BYD competes with premium brands, focusing on advanced features and technology. In developing markets, they offer budget-friendly models with longer range for rural driving. Accordingly, the electric automaker uses multi-segment market positioning. Specific Regions. BYD targets regions with government incentives for EVs and tailors offerings based on local preferences and driving habits.      2. Demographic Segmentation. Age. Millennials and Gen Z are significant targets due to their environmental consciousness and tech-savviness. BYD offers sleek designs and connected features for these segments. Income Level. BYD offers a range of price points across categories, targeting both budget-conscious buyers and those willing to pay more for premium features. Family Size. Larger families with specific needs are catered to with spacious SUVs and MPVs designed for comfort and safety.    3. Psychographic Segmentation. Environmental Consciousness. BYD emphasizes its sustainability features and commitment to green technology, appealing to environmentally conscious consumers. Technology Adoption. Early adopters and tech enthusiasts are targeted with cutting-edge features and futuristic designs. Lifestyle Preferences. Active lifestyles are addressed with rugged EVs for outdoor adventures, while urban professionals are offered stylish and efficient city cars.   4. Behavioural Segmentation. Driving Habits. Daily commuters receive tailored offerings like fast charging options, while long-distance travellers are targeted with extended range models. Brand Loyalty. Existing customers are offered loyalty programs and upgrade options, while new audiences are targeted with attractive incentives and test drives. Price Sensitivity. Budget-conscious buyers are targeted with affordable models, while those willing to…]]> https://research-methodology.net/byd-company-limited-report/ Sat, 17 Feb 2024 00:36:07 +0000 https://research-methodology.net/?p=77495 Founded in 1995, BYD Company Limited is a leading technology company that has established itself as an industry leader in electronics, automotives, renewable energy, and rail transit. As a global leader with more than 30 industrial parks across 6 continents, BYD’s zero-emission solutions, focused on energy generation and storage, are expansive and widely applicable. The electric automaker sold 26,864 million units of cars in 2022 , generating operating revenue of RMB 424,061 million, an increase of 96.20% compared to the previous year. The company delivered a record high of 1,788,000 new energy vehicles in 2022, representing a year-on-year growth over 217.6% . The electric vehicle (EV) giant pursues a business strategy of cost leadership fuelled with extensive vertical integration and an accelerated pace of new model development. BYD organizational structure integrates the elements of matrix structure, independent brands, emphasis on R&D and regional variations. Organizational culture of the EV behemoth, on the other hand, is associated with meritocracy, focus on cost-cutting and prioritizing company values. As one of the leading rechargeable battery manufacturers in the global arena BYD possesses certain strengths such as vertical integration and cost advantage, leadership in technological capabilities and economies of scale advantage from massive manufacturing. At the same time, the company has certain weaknesses. These include overdependence on domestic market, too broad range of businesses and dependence on subsidies by Chinese government to sustain cost advantage. BYD Company Limited Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on BYD. Moreover, the report contains analyses of BYD’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business…]]> https://research-methodology.net/ Sun, 03 Dec 2023 14:49:57 +0000 https://research-methodology.net/?page_id=76657 Company reports, analysis and business research methods since 2011 by John Dudovskiy Save hours of business research by using a library of thoroughly written reports and articles. See Analytical Tools Learn Writing Dissertation Business reports on world’s top companies See All Reports Why Us? All you need for your business research Trusted source of knowledge, honed by years of experience, offering unparalleled depth in business reports, analysis, and research methods since 2011. Your journey to informed decision-making starts here! Competent Researchers A team of seasoned dissertation advisers with practical business management experience. Comprehensive Reports Application of major tools SWOT, PESTEL, Porter’s 5 Forces, Value Chain etc. within a single report. Dissertation Guide Comprehensive guidance from the selection of the research area to the completion of the final draft. Up-to-date Data Regularly updated articles and business reports reflect changes in the macroeconomic environment. Business Analytical Tools SWOT Analysis Ansoff Matrix PESTEL Analysis 7Ps of Marketing Segmentation, Targeting Marketing Communication Mix Porter's Five Forces Analysis Value-Chain Analysis McKinsey 7S Model SWOT Analysis A simple yet powerful framework for assessing a company's competitive position, developing business strategies, and making informed decisions. Strategic analytical tool for analyzing: Strengths Weaknesses Opportunities Threats Learn More Ansoff Matrix A marketing planning model that helps companies to identify and evaluate their growth options and determine its product and market strategy. The model integrates four different strategy options: Market Penetration Product Development Market Development Diversification Learn More PESTEL Analysis Strategic analytical tool for assessing external factors affecting businesses. The PESTEL acronym stands for: Political Economic Social Technological Environmental Legal factors impacting companies Learn More Marketing Mix (7Ps) Comprises elements of the marketing mix. Companies manipulate each element based on their marketing and business strategy: Product Place Price Promotions Process People Physical Evidence Learn More Segmentation, Targeting, Positioning (STP) Consequent…]]> https://research-methodology.net/marriott-segmentation-targeting-and-positioning-an-overview/ Fri, 27 Oct 2023 09:41:29 +0000 https://research-methodology.net/?p=75986 Marriott segmentation, targeting and positioning involves a series of marketing decision making for the largest hotel chain in the world. Segmentation involves dividing a market into smaller groups of customers with similar needs, wants, and behaviours. Generally, companies can engage in segmentation using a wide range of variables, such as demography, geography, psychographics, and behaviour.   Marriott International uses the following segmentation bases: Segmentation Variable Description Demographics Age, income, education level, occupation, family size, and household income. Geography Region, country, city, and type of location (e.g., urban, suburban, rural). Psychographics Interests, values, lifestyle, and travel habits. Behavior Travel frequency, type of accommodations booked, and loyalty program membership. Segmentation bases for Marriott International   Targeting is the process of selecting one or more of the identified segments to focus marketing efforts on. Businesses generally target segments that are most likely to be interested in their products or services, and that are most profitable to serve. Marriott targets business, leisure and luxury customer segments. Positioning is associated with creating a unique identity for a product or service in the minds of target customers. Effective positioning involves defining the product or service’s key features and benefits, and communicating them to customers in a way that differentiates the product or service from competitors. Customer Segment Marriott Amenities and Services Economy travellers Basic amenities and services Business travellers High-speed internet, business centres, meeting rooms, concierge services, executive lounges, complimentary breakfast Leisure travellers Swimming pools, kids’ clubs, family-friendly activities, restaurants, bars, fitness centers, spas Luxury travellers High-end accommodations, personalized service, gourmet dining, luxury amenities, exclusive experiences Customer segments and Positioning of Marriott Amenities and  Services   Marriott International Inc. Report contains the above analysis of Marriott segmentation, targeting and positioning and Marriott marketing strategy in general. The report illustrates the application of the major analytical strategic…]]> https://research-methodology.net/marriott-international-inc-report/ Sun, 22 Oct 2023 01:28:51 +0000 https://research-methodology.net/?p=75897 Marriott International is a worldwide operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties in 138 countries and territories under 30 brand names. Started as a root beer stand in 1927 in Washington D.C., USA, Marriott has grown into the largest hotel chain in the world. For the full year 2022, gross fee revenues totalled USD 4.1 billion, a significant increase of more than 50 percent compared to 2021. Adjusted EBITDA reached nearly USD 3.9 billion in 2022, up almost 70 percent year over year. Full year adjusted diluted earnings per share (EPS) more than doubled from 2021, totalling USD 6.69. In 2022, Marriott International grew from 7,989 properties (1,479,179 rooms) at year-end 2021 to 8,288 properties (1,525,407 rooms) at year-end 2022, reflecting gross additions of 394 properties (65,376 rooms) and deletions of 94 properties (19,079 rooms), including the impact of the Company’s decision to suspend its operations in Russia. Marriott business strategy integrates pursuing asset-light business model and growing through acquisitions. Moreover, the largest hotel chain in the world focuses on increasing customer segment known as “bleisure travellers”. CEO Anthony Capuano and senior management pursue servant leadership style and the hotel chain has a hybrid organizational structure that combining elements of matrix and functional structures. Marriott International Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Marriott. Moreover, the report contains analyses of Marriott’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business Strategy 3. Marriott Stock Performance Analysis 4. Leadership 5. Organisational Structure 6. Organizational Culture 7. Marriott and Ansoff Matrix 8. SWOT Analysis…]]> https://research-methodology.net/netflix-segmentation-targeting-and-positioning/ Wed, 20 Sep 2023 03:54:57 +0000 https://research-methodology.net/?p=75488 Netflix segmentation, targeting and positioning efforts are the basis of marketing strategy. Segmentation implies dividing the market into different groups on the basis of common traits and characteristics. The entertainment services provider segments its market on the basis of location, demography, behaviour, psychographic and other variables. Netflix uses the following positioning techniques: 1. Anticipatory positioning. When Netflix pioneered on-demand streaming of films, series and documentaries for a fixed monthly cost in 2007, the demand for such a service initially was low to non-existent. However, then CEO Reed Hastings and his team anticipated the demand for such a service and went ahead with the idea to see the demand gradually growing in the following years. 2. Mono-segment positioning. The largest streaming service in the world targets a single customer segment that is outward-looking, affluent consumers with international credit cards and smartphones. The following table 2 illustrates Netflix segmentation, targeting and positioning: Type of segmentation Segmentation criteria Netflix target customer segment     Geographic Region Available virtually everywhere except in China and Russia Density Urban/rural   Demographic Age Shows available for all age groups Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Empty Nest I older married couples, no children living with them Empty Nest II older married couples, retired, no children living at home Solitary Survivor I in labour force Solitary Survivor II retired Occupation Students, employees, professionals, senior manager, executives Behavioral Degree of loyalty ‘Hard core loyals’ and ‘Switchers’ Benefits sought Recreation & Inspiration Personality Easygoing, determined, ambitious User status non-users, potential users, first-time users, regular users, or ex-users of the streaming service Psychographic Social class  Working class, middle class and upper…]]> https://research-methodology.net/netflix-inc-report-2023/ Sun, 17 Sep 2023 03:11:29 +0000 https://research-methodology.net/?p=75391 Netflix Inc., the largest streaming service in the world, was incorporated on August 29, 1997 and began operations on April 14, 1998. The entertainment services provider has 231 million paid memberships in over 190 countries. The company employs about 12,800 people in more than 25 countries. Consolidated revenues for the year ended December 31, 2022 increased 6% as compared to the year ended December 31, 2021, due to the 6% growth in average paying memberships and a 1% increase in average monthly revenue per paying membership. Netflix business strategy involves prioritizing revenues maximization over membership growth and increasing investments on original content. Moreover, the streaming service has decided to stay focused on movies, series and documentaries not entering news and live sports segments. The on-demand media provider had change of leadership in 2023 with co-founder Reed Hastings stepping down from the role of co-CEO and Ted Sarandos and Greg Peters becoming new co-CEOs. The largest streaming service in the world has flat organizational culture and its organizational culture has been a subject of case studies in business schools for its unconventionality and effectiveness. Specifically, Netflix organizational culture effectively encourages decision making by employees at all levels and the company has taken information sharing to a whole new level. The popular streaming platform despises rules and communication practices there are candid and direct. Along with its obvious strengths such as first mover advantage, quality original content and global presence, the entertainment services provider has certain weaknesses as well. Namely, Netflix has high level of indebtedness and its business model depends on other companies. Furthermore, the company is over-dependent on North American home market and there is a room for improvement on its customer services. Netflix Inc. Report contains the application of the major analytical strategic frameworks in business studies such as…]]> https://research-methodology.net/apple-marketing-strategy-an-overview/ Fri, 30 Jun 2023 00:52:47 +0000 http://research-methodology.net/?p=9951 Apple marketing strategy is based on the founder Steve Jobs’s philosophy that customers do not always know what they want. Accordingly, instead of conducting marketing researches to identify customer needs and wants, the multinational technology company prefers to install innovative features and capabilities in their products, making customers to want Apple products. Under the leadership of Tim Cook since 2011 certain aspects of the business such as management style and company’s stance towards CSR have changed. However, the dismissal of marketing research remains to this day. Apple marketing strategy expresses the brand in minimalist, yet highly efficient ways. The world’s largest IT company by revenue is one of the first companies to successfully associate the brand image with being innovative, rebellious and non-conformist. Apple 7Ps of marketing is marked with a particular focus on the product element of the marketing mix and the company’s segmentation targeting and positioning initiatives are aimed at targeting users of premium products. Moreover, marketing communication mix of Apple Inc. places greater emphasis on print and media advertising and personal selling in Apple Stores and the company rarely uses sales promotions as part of its marketing strategy. Generally, Apple marketing strategy integrates the following:   1. Focusing on attractive value proposition. Apple’s value proposition is “beautiful design that works right out of the box with ever-smaller packaging”[1] The world’s largest IT company by revenue has been able to avoid price wars with competitors by emphasizing its unique value proposition in its marketing communication messages. Apple is a unique company in a way that it is a design firm, a media platform, a publishing company, a software powerhouse and a computer manufacturer – all at the same time. Such a position allows the company to communicate its value proposition to target customer segment in a cost-effective manner.…]]> https://research-methodology.net/apple-segmentation-targeting-and-positioning/ Fri, 30 Jun 2023 00:29:06 +0000 http://research-methodology.net/?p=7368 Apple segmentation, targeting and positioning represents the core of its marketing efforts. Segmentation, targeting and positioning is needed because no company or product can be all things to all people. Apple segmentation targeting and positioning initiatives include the following stages: 1. Segmenting the market. Segmentation involves dividing population into groups according to certain characteristics. Specifically, customers can be segmented on the basis of their place of living, demographic variables, behavioural traits, psychographic characteristics and other variables. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes. 2. Targeting selected segment(s). This stage involves identifying segments that are most attractive for the business. In other words, targeting implies choosing specific groups identified as a result of segmentation to sell products to. The multinational technology company positions itself as a premium brand offering products and services with advanced functions and capabilities for additional costs. Accordingly, Apple target customer segment comprise well-off individuals who are willing to pay extra for technology products and services with advanced design, functions and capabilities. A common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices. 3. Positioning the offering. Positioning refers to the selection of the marketing mix that is the most suitable for the target customer segment. It is the final process, where companies attempt to associate their products and services with needs and wants of selected customer segment. Apple targets its customer segment by tailoring products, services and overall business approach to appeal to the members of segment to a maximum extent. Under the leadership of late Steve Jobs, Apple mainly used mono-segment type of positioning, appealing to the needs and wants of a single customer segment. However, after Tim Cook became CEO,…]]> https://research-methodology.net/nvidia-segmentation-targeting-positioning/ Sun, 18 Jun 2023 07:29:35 +0000 https://research-methodology.net/?p=74397 Nvidia segmentation, targeting, and positioning (STP) is a strategic approach to marketing that involves dividing the market into smaller groups of consumers (segmentation), selecting one or more of these groups to target with a specific marketing mix (targeting), and then positioning the product or service in the minds of consumers in a way that differentiates it from the competition (positioning).     Nvidia uses the following types of product positioning. – Anticipatory positioning. Anticipatory product positioning is a strategy in which a company positions its products or services in a way that anticipates future trends or needs in the market. Nvidia has used this strategy effectively by positioning its products in a way that anticipates the increasing demand for high-performance computing solutions and emerging technologies such as artificial intelligence and autonomous vehicles. For example, Nvidia recognized in early 1990s the potential of AI and positioned its products accordingly, investing heavily in research and development to create GPUs that are specifically designed to accelerate AI workloads. As a result, Nvidia has become a key player in the AI market, with its GPUs powering many of the most advanced AI applications in industries such as healthcare, finance, and automotive. – Quality product positioning. Quality product positioning is a strategy in which a company positions its products or services as high-quality, reliable, and superior to those of its competitors. Nvidia has used this strategy effectively by emphasizing the quality and reliability of its products and by investing in research and development to continually improve its offerings. Accordingly the company creates high-performance GPUs for a wide range of applications, from gaming to data centre workloads. The following table illustrates Nvidia segmentation, targeting and positioning: Type of segmentation Segmentation criteria Nvidia target customer segment   Geographic Region Taiwan, China, United States, other countries Density Urban…]]> https://research-methodology.net/nvidia-corporation-report/ Sat, 17 Jun 2023 04:59:53 +0000 https://research-methodology.net/?p=74350 Founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Priem, Nvidia Corporation is the multinational technology company that aims to solve the world’s visual computing challenges. The GPU maker is the 7th largest company in the world with a market cap of around USD 1 trillion. For fiscal year 2022 the revenue was a record USD 26.91 billion, up 61 percent from USD 16.68 billion a year ago. Gross margins expanded to 64.9 percent, and earnings per share were USD 3.85, up 123 percent from a year ago (Annual Review, 2022) Nvidia business strategy involves benefiting from the first mover advantage, prioritizing performance of products over their costs and pursuing vertical integration. The company’s co-founder and CEO of 30 years Jensen Huang is famous for his charismatic leadership style and his ability to inspire and motivate his team. The multinational technology company has functional and hybrid organizational structure and divides its business practices into various functions such as engineering and product development, supply chain and operations, human resources, finance and accounting and legal and compliance. Nvidia organizational culture integrates the elements of innovation, intellectual honesty, high performance and inclusion and diversity. Within the framework of Ansoff Grow Matrix the company uses all four growth strategies – market penetration, product development, market development and diversification in an integrated manner. The world’s most valuable semiconductor company possesses certain strengths such as global leadership in GPU market, unique position to benefit from the increasing popularity of artificial intelligence (AI) and more than 370 partnerships revolving around self-driving cars. Furthermore, Nvidia possesses advanced R&D capabilities and these allowed the company to reach its current state. At the same time, the software and fables company has serious weaknesses that need to be addressed. At the moment Nvidia depends on a single type of product…]]> https://research-methodology.net/wework-segmentation-targeting-and-positioning/ Tue, 21 Feb 2023 04:51:39 +0000 https://research-methodology.net/?p=72654 WeWork segmentation, targeting and positioning is an important tool for the global flexible workspace provider to develop right products and services for right customers. Segmentation involves dividing customers into different groups according to their common needs and common characteristics. Targeting implies selecting specific groups among the population to sell products and services to. Positioning refers to developing elements of the marketing mix that best resonates with the needs and wants of the target customer segment. WeWork uses the following types of positioning: 1. Functional positioning. Functional positioning refers to positioning of products and services that are aimed at solving specific problems customers are facing. Businesses needed flexible workspace solutions without commitment of lengthy and expensive lease. Adam Neumann and Miguel McKelvey saw commercial opportunity in this problem and established WeWork with functional positioning in 2010. 2. Multi-segment positioning. The co-working giant offers services to more than one customer segment in terms of their workspace needs. For example, ‘Space as a service’ category is developed for small and medium sized businesses and enterprise companies. ‘WeWork Access’ category, on the other hand, aims to attract different customer segment, namely sole entrepreneurs at the early stages of their journey in business. The following table illustrates WeWork segmentation, targeting and positioning: Type of segmentation Segmentation criteria WeWork target customer segment   Geographic Region 38 countries worldwide Density Mainly urban areas   Demographic Age 18-65 Gender Males & Females Life-cycle stage Bachelor Stage: young, single people not living at home Newly Married Couples: young, no children Full Nest I: youngest child under six Full Nest II: youngest child six or over Full Nest III: older married couples with dependent children Empty Nest I: older married couples, no children living with them Occupation Self-employed,  professionals, senior manager, executives, business owners Behavioral Degree of loyalty ‘Hard core loyals’ ‘Soft core loyals’ ‘Switchers’ Benefits…]]> https://research-methodology.net/wework-inc-report/ Sat, 18 Feb 2023 05:42:35 +0000 https://research-methodology.net/?p=72556 Founded in 2010 in Manhattan USA by Adam Neumann and Miguel McKelvey, WeWork Inc. is a global flexible workspace provider that comprises a network of 756 locations in 38 countries. The co-working giant has approximately 590 thousand physical memberships as of December 2021 (Annual Report, 2021). In the US in 2021 WeWork represented approximately 0.5% of all commercial office space and 63% of Fortune 100 companies are WeWork members WeWork’s mission is to empower tomorrow’s world at work. The workspace provider has a business strategy of digitalizing the real estate business and offering space as a service. The company had severe leadership and ethical challenges under controversial co-founder and the first CEO Adam Neumann, but the current CEO Sandeep Mathrani is bringing discipline and maturity to the leadership. The hierarchical organizational structure of the company has allowed Mathrani to turn around the business to a certain extend via reducing operational costs and focusing on the core business. The co-working and office space operator has considerable strengths such as solid international presence, brand recognition and experience in its niche. At the same time, WeWork has certain serious weaknesses that include the absence of profitability and high level of indebtedness. Moreover, WeWork brand image has been severely damaged due to management and ethical issues under the leadership of Adam Neumann as discussed throughout this report. WeWork Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on WeWork. Moreover, the report contains analyses of WeWork’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business Strategy 3. Leadership 4. Organisational Structure 5. Organizational Culture…]]> https://research-methodology.net/theory/marketing/7ps-of-marketing/ Sun, 06 Nov 2022 01:30:17 +0000 https://research-methodology.net/?page_id=69968 Marketing mix, also known as 7Ps of marketing includes individual marketing elements that form overall offer to customers. The concept was developed by marketing professor E. Jerome McCarthy and originally published in his book Basic Marketing. A Managerial Approach in 1960.[1] Initially the concept consisted of 4 Ps – product, place, price and promotion. As the field of marketing became more sophisticated additional 3 Ps  – people, process and physical evidence were added by Bitner and Booms[2]. The additional 3Ps are also called ‘service mix Ps’, because they integrate important aspects of services into the marketing mix concept. Furthermore, in 2007 Larry Londre introduced another 2Ps – Partners/Strategic Alliances and Presentation. However, this latest addition has not been widely accepted among marketing researchers and practitioners, thus here we will stick to 7Ps of marketing. Marketing mix is a useful tool to tailor your products and services to the needs and wants of the target customer segment, but it is not a one-stop-shop for developing a comprehensive marketing strategy. A successful marketing strategy needs to address a range of other frameworks such as segmentation targeting and positioning, marketing communication mix and others. Product Element in 7Ps of Marketing Product or a service is the starting point in the marketing mix. Companies need to take into account the following variables, among others when developing new products: In what type of packaging is the product offered? Are products offered in various colours sizes etc.? What design and technical features differentiate the product in the competition? Are products durable and robust enough to appeal to the needs and wants of the target customer segment? What are the levels of quality and functional performance? Can he product be customized to individual users? Is the product easy to use and maintain? Is the product upgraded regularly?   Place…]]> https://research-methodology.net/theory/marketing/segmentation-targeting-positioning-stp/ Mon, 31 Oct 2022 03:41:30 +0000 https://research-methodology.net/?page_id=69799 Segmentation, targeting and positioning (STP) is a marketing model that assists classifying population segments according to their needs and common characteristics, selecting specific segments and developing products and services for this particular segment. The basic premise behind STP is that you cannot sell everything to everyone. Therefore, you need to limit your product and service offerings and target limited population segment that have higher chance to purchase them. Today, Amazon is trying to be everything for everyone, but even Amazon started only as an online bookseller to gradually increase its offering to increasing numbers of customer segments. STP is effective because it allows personalisation of products and services to the needs and wants of selected consumers. STP approach shifts the focus from product to consumers and helps in satisfying customer needs and wants profitably.   Application of Segmentation, Targeting and Positioning Segmentation targeting and positioning initiatives include the following stages: 1. Segmenting the market. Segmentation is dividing population on the basis of their common traits and characteristics. Segmentation helps identifying niches with specific previously untapped needs. There are many types and bases of segmentation. The table below the most popular types of segmentation. Type of segmentation Segmentation criteria Example   Geographic Region North America, Asia, Europe Density Urban/rural Climate Hot, cold, wet, dry   Demographic Age Teenagers, middle aged, elderly. Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Empty Nest I older married couples, no children living with them Empty Nest II older married couples, retired, no children living at home Solitary Survivor I in labour force Solitary Survivor II retired Occupation Students, employees, professionals, senior manager, executives Behavioral Degree of loyalty…]]> https://research-methodology.net/theory/marketing/ Wed, 26 Oct 2022 00:50:42 +0000 https://research-methodology.net/?page_id=69632 Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.[1] In simple terms, marketing is the action of promoting and selling of products and services. The most popular marketing concepts and tools include the following: Marketing Strategy 7Ps of Marketing Segmentation, Targeting & Positioning Marketing Communication Mix Brand Essence Wheel Brand Development Process Relationship Marketing [1] Definitions of Marketing (n.d.) American Marketing Association, Available at: https://www.ama.org/the-definition-of-marketing-what-is-marketing/  ]]> https://research-methodology.net/starbucks-segmentation-targeting-and-positioning-targeting-premium-customers-with-quality-products-and-service/ Fri, 07 Oct 2022 00:08:12 +0000 http://research-methodology.net/?p=10249 Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants.  In simple terms, segmentation, targeting and positioning refers to deciding whom to sell to, and positioning products and services accordingly. Starbucks Coffee uses the following types of positioning: – Mono segment positioning. The coffee chain giant targets premium customer segment only i.e. individuals who are willing to pay extra for the quality of products and services. – Adaptive positioning. Due to the tendency of increasing consumer health awareness, Starbucks Coffee developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories). – Standby positioning. Certain Starbucks beverages such as Frappuchino had to await changes in the market for certain period of time to find demand. – Sustainability positioning. The world’s largest coffeehouse chain attempts to shift customer attention to sustainability aspect of its business. For example, by the end of FY21 there were 2779 Greener Store framework Starbucks branches[1]. This store format aims to achieve reductions in carbon emissions, water usage and landfill waste. The following table illustrates Starbucks segmentation, targeting and positioning: Type of segmentation Segmentation criteria Starbucks target customer segment     Geographic Region US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region Density Urban   Demographic Age 18 – 60 Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Occupation Students, employees, professionals Behavioral Degree of loyalty ‘Hard core loyals’…]]> https://research-methodology.net/starbucks-marketing-strategy-3/ Thu, 06 Oct 2022 00:54:32 +0000 http://research-methodology.net/?p=7077 Starbucks marketing strategy is based on the following principles: 1. Focus on product and place elements of the marketing mix. Marketing mix comprises 7 elements – product, place, price, promotion, process, people and physical evidence. Businesses choose to concentrate on one or two elements as their sources of competitive advantage according to their business strategy. Accordingly, Starbucks marketing mix focuses on product element through offering foods and beverages of high quality and providing respective level of service. Place element of the marketing mix represents an additional source of Starbucks competitive advantage in a way that stores are usually located at high-traffic, high-visibility locations.     2. Customer segmentation and targeting premium customer segment. The world’s largest coffee retailer targets males and females from middle and upper class who can afford expensive prices of Starbuck products for regular consumption. The company uses mono-segment, adaptive and standby product positioning techniques in order to appeal to the needs and wants of the target customer segment. 3. Integrated application of multiple marketing communication channels. Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to the target customer segment. 4. Consistent increase of the marketing budget to implement the above measures and initiatives. Starbucks has been consistently increasing its marketing budget for a number of years. Starbucks marketing expenses totalled USD305.1 million, USD258.8 million and USD245.7 million in fiscal 2021, 2020 and 2019, respectively. The Seattle-based coffee chain spends this budget to communicate its marketing message to the target customer segment in creative ways. 5. Extensive use of celebrity endorsements. Efficient use of celebrity endorsement is one of the cornerstones of Starbucks marketing strategy. The world’s largest coffeehouse chain…]]> https://research-methodology.net/starbucks-corporation-report-4/ Sun, 02 Oct 2022 00:29:58 +0000 http://research-methodology.net/?p=7068 Founded in 1985 by Howard Schultz, Starbucks Corporation (NASDAQ:SBUX) currently operates in more than 34,000 stores in 84 markets according to its mission statement “to inspire and nurture human spirit – one person, one cup and one neighbourhood at a time”. Starbucks Corporation brand portfolio consists of Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos and it sells coffee, tea, other beverages, and a variety of food products. There are two formats of Starbucks stores: company-operated and licensed stores. By the end of fiscal year of 2021, Starbucks had 17,133 (51%) company-operated stores and 16,700 (49%) licensed stores. As of October 2021, Starbucks had approximately 383,000 employees worldwide, including 245,000 employees in the US. The world’s largest coffeehouse chain refers to its employees as partners. Starbucks results for fiscal 2021 demonstrate the overall strength and resilience of the brand. Consolidated revenues increased 24% to USD29.1 billion in fiscal 2021 compared to USD23.5 billion in fiscal 2020, primarily due to business recovery from the COVID-19 pandemic. Also contributing to the increase was USD576 million of incremental revenue attributable to the extra week in fiscal 2021. Starbucks business strategy is associated with providing customers a Starbucks Experience, i.e. a ‘third place’ experience away from work and home, where people can have quality time with friends or alone enjoying quality coffee, beverages and fresh food. Currently, the company is following international business expansion strategy with a particular focus on China and Asia Pacific market segment. Starbucks is an acknowledged leader in the industry in terms of exploiting information technology and technological developments. The company has adapted mobile apps for the promotion of its brand and sales of products earlier than the competition. Starbucks app offers multiple features such as store locator, nutrition-based information and rewards program. Moreover, ‘MyStarbucks Signature’ initiative…]]> https://research-methodology.net/ikea-segmentation-targeting-positioning-targeting-cost-conscious-customers/ Tue, 16 Aug 2022 00:29:57 +0000 http://research-methodology.net/?p=11401 IKEA segmentation, targeting and positioning involves a set of consequent marketing decisions that constitute the core of company’s marketing strategy.  Segmentation refers to dividing population into groups on the basis of their common traits and characteristics. Targeting involves choosing specific groups identified as a result of segmentation as consumers for the brand. Positioning implies the selection of the marketing mix the most attractive to the target customer segment. There are various types of positioning such as mono-segment, multi-segment, standby, anticipatory, imitative, adaptive, defensive and stop-gap types of positioning. IKEA uses the following types of product positioning: – Mono-segment positioning. This type of positioning is associated with making an appeal to the needs and wants of a single customer segment. IKEA uses mono-segment positioning via focusing on a single customer segment that are cost-conscious and prefers to get value for money. – Adaptive positioning. This positioning method is based on periodically repositioning products and services to reflect changes in customer preferences. The Swedish furniture chain takes into account dynamic nature of customer preferences in designing its products. For example, increasing popularity of minimalism in the global scale has been reflected in the latest ranges of IKEA products. – Aesthetic positioning. The world’s largest furniture retailer uses ‘democratic design’ concept to develop its products. Democratic design appeals to the needs and preferences of a specific customer segment that value balance between function, form, quality, sustainability and low price. The following Table illustrates IKEA segmentation, targeting and positioning: Type of segmentation Segmentation criteria IKEA target customer segment     Geographic Region Europe,   Americas, Asia & Australia, Russia. In total 11 franchisees operate in more than 500 locations Density Urban   Demographic Age 18 and older Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no…]]>