Market Segmentation Market segmentation refers to the process of dividing a market into a smaller group of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The marketers of Haagen-Dazs in Malaysia have tried different market segmentation variables to find out the best method to market structure. The characteristics that used are geographic and demographic. 3. 1. 1 Geographic Segmentation Geographic segmentation divides the market into different geographic units, such as nations, regions, states, countries, cities, or neighborhoods.
In Malaysia, it has 13 states and Haagen-Dazs Malaysia has chosen the top three ranking of population states or cities to operate their business which are Penang, Selangor, Melaka and Perak. They are located in high traffic area where customers can be reached through advertisements such as newspaper ads. 3. 1. 2 Demographic Segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Haagen-Dazs Malaysia focuses in the age and life-cycle group that are from 6-12 years, 13- 18 years and 19-40 years, from children to teenager and to adult.
Besides that, Haagen-Dazs also focus on income bracket of consumers. Haagen-Dazs always provide high-quality ice cream with reasonable price to consumer. For the consumers with higher disposable income, they will buy more compare to lower disposable income’s consumers because of the purchasing power is high. In addition, gender is considers as one of the important factors when marketers of Haagen-Dazs Malaysia target their customers.
Female consumers are the main group of customer for them to promote their products because female more prefer to eat dessert. Marketers also target their customers through occupation. Office ladies and students are two main occupations that company focuses on to improve the sales. 3. 2 Targeting Market targeting involves evaluate each market segment’s attractiveness and choose one or more segments to enter. The marketers of Haagen-Dazs Malaysia have used concentrated targeting strategy and differentiated targeting strategy to target their market. 3. 2. 1 Concentrated Targeting Strategy
Concentrated targeting strategy refers to strategy in which Haagen-Dazs Malaysia used to target a specific market segment for it products. Haagen-Dazs is a global household name in ice cream industry and it usually focuses on female consumers such as office ladies and students to expand their product line. This is because female consumers are more likely to eat desserts such as ice cream. 3. 2. 2 Differentiated Targeting Strategy Differentiated targeting strategy is used by Haagen-Dazs Malaysia to target more than one market segment by promoting different offer to each segment.
Besides provided ice cream, Haagen-Dazs also provides various types of desserts which make by ice cream such as ice cream cakes and drinks. To fulfill the different needs of different segments, it also produces sushi which makes by ice cream and a series of chocolate flavor of ice cream for chocolate lovers. 3. 3 Positioning Market positioning is the way the product occupy in the consumers’ mind which create by the marketers relative to competing products. There are several ways that can be use by marketers to create impression in the minds of target consumers.
One of the ways is product. Haagen-Dazs has positioned their products in the consumers’ mind with the impression of good quality’s dessert. This is because the competitive advantage of Haagen-Dazs is slow-melting. Less air and more quality ingredients which make the slow melt of the ice cream had add up to a longer lasting pleasure with each deliciously rich spoonful. Nevertheless, Haagen-Dazs is a global household name in ice cream industry. It’s the world’s first super-premium ice cream and had established more than 40 years, since 1961.
Thus, it will be the first choice that comes to consumers’ mind when they decide to purchase an ice cream. The price of Haagen-Dazs ice cream is considered high in ice cream industry. Compare to other competitors such as Baskin Robbins and Gelatomia, the price of the ice cream is the highest among them. Haagen-Dazs select high price strategy to enhance the product prestige so that consumers will reckon that the quality of the products sure will be better than others brand of ice cream.
Cite this Market Segmentation of Haagen-Dazs
Market Segmentation of Haagen-Dazs. (2017, Jan 31). Retrieved from https://graduateway.com/market-segmentation-of-haagen-dazs/