Mktg101 - market segmentation report PDF

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market segmentation report...

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Table of Contents 1.1 Background..........................................................................................................................2 1.2 Marketing Segmentation......................................................................................................2 1.3 Target Market.......................................................................................................................5 1.4 Differentiation and Positioning Strategy............................................................................6 Reference List............................................................................................................................8

1.1 Background Plastic Whale is a company that has created a movement of people and corporations who work together towards ensuring plastic free waters around the world. Not only does plastic whale aim to clear waste out of waters but it uses the plastic that’s extracted to create economic value by manufacturing furniture and the boats used for the “plastic fishing” tours. Plastic Whale is also one of the most sustainable events that corporations and government intuitions can be a part of as these fishing events can accommodate anywhere between 8 to 150 people. Plastic Whale’s interest in Sydney Harbour is appropriate as recent research has shown the alarming levels of plastic pollution in Sydney. The 2016-17 Australian plastics recycling survey has found that NSW recycled almost 1.2 million tonnes of plastic in the previous financial year (O’Farrell, 2018). However, an article released by the ABC news outlines the growing number of plastics found in Sydney harbour and its impacts on wildlife despite current recycling efforts (Chettle,2017) Additionally, almost 40% of the community in Sydney have expressed that it is important for a brand to be sustainable in order for them to be supported (Team, 2018).

1.2 Marketing Segmentation Plastic Whale intents to expand into the Australian market starting with Sydney harbour. As depicted through the market segmentation table, large and diverse markets can be divided into smaller sectors. This ensures consumers receive services and products that match their unique needs.

Variables

Segmentation table Segment 1: Segment 2: Segment 3: Young Professional School aged children Retiring Adults with environmental conscience

Geographical City Size: Density: Demographic Age: Occupation:

2 million and over Urban

2 million and over Urban

2 million and over Urban

20–34 Professional and

12-19 Students

65+ Retired

technical Psychographic Personality

gregarious

ambitious

authoritarian

Values, attitudes and

Visible Achievement

Socially aware

Traditional Family Life

lifestyle groupings Behavioral Attitude towards

Enthusiastic

Positive

Positive

product User status:

non-user

non-user

non-user

As shown in the table, the psychographic variable divides consumers into different segments based on values and lifestyles and personality characteristics. This is important for Plastic Whale as how consumers spend their time and money reflects their lifestyle, values and personality. According to the ABS report “Environmental Awareness and Action” the two groups deemed least likely to be worried about environmental issues were 74% of young adults aged between 18-24 and as well as 77% of older adults above the age of 65 (ABS, 2010). However, a study conducted by University of Western Australia showed approximately 96% of the participants aged under 19 across Australia considered environmental pollution to be a serious problem; with 89% of them saying that they are

worried about the long-term effects on wildlife (Ling and Chiw, 2018). Thus, by focusing on people who are socially aware with an ambitious personality will be more beneficial for Plastic Whale.

Demographic variables, such as occupation and age are also crucial as consumers needs, wants and usage rates often fluctuate closely with demographic variables. The segment of individuals working in more professionally qualified jobs and earning higher incomes allows for a more favourable position in relation to environmental concerns in terms of their buying behaviour, recycling as well as resource saving.

Geographic variables, such as density and city size are fundamental as plastic whale is looking to expand to Sydney harbor which is more urban. Mintel Press Team found that 34% of urban Sydney preferred products that used sustainable sourcing methods therefore making it more preferable for plastic whale to launch in an urban geographic (Team, 2018).

Behavioural variables, such as user status and attitude towards the product are essential as consumers have a different perspectives on products and in this case environmental concerns. According to Environmental and Behaviour, people beyond the retirement age are more worried about the state of the global environment than young people (Wynveen et al., 2014). Therefore, people beyond retirement have a more positive attitude towards environmental matters which could make them more interested in Plastic Whale.

1.3 Target Market Of the segments identified in the segmentation table, Plastic Whale should look towards targeting school aged children in particular those aged between 12-19. Nowadays, students are more concerns about environmental issues than adults. According to the ABC seven out

of ten children think it is essential to protect the environment thus they can influence their family to take action with them (ABC, 2017). Additionally, Plastic Whale should pursue school aged children as their interests and concerns for the environment are developing through their education which can be accentuated with hands on plastic fishing tours. The Australian Journal of Environmental Education found that many factors can influence attitudes associated with recycling in high school students (Cutter-Mackenzie, 2014). These factors include economic circumstances, recycling availability as well as the awareness levels regarding the importance of recycling. In their 2018 impact report Plastic Whale revealed than an education program conducted to teach students about recycling resulted in an increase of 981 children participating in plastic fishing the following year (Plastic Whale, 2018). Thus, this effectively shows that through educating students not only will it result in a rise in awareness of environmental issues and clearer water ways in the near future but as they mature, these children will be able to educate others.

1.4 Differentiation and Positioning Strategy Having identified their target market as school aged children Plastic Whale should aim to differentiate themselves from other recycling companies, as well as establish a clear position in the minds of their target market. The main advantage for Plastic Whale would be that their events are a world first as the only professional plastic fishing company in the globe focusing on a worldwide concern. A product’s position within its target market is essentially the perceptions, impressions and emotions that consumers have in regard to the product in comparison with competing products (Kotler et al., 2019). The innovative products tours offered by plastic whale will be unique in Sydney. This gives Plastic Whale the opportunity to

focus less on competing but developing knowledgeable and enthusiastic staff (Chettle, 2017). These staff will then not only provide a competitive advantage in the future but educate the target market on the impact’s plastic has on our environment, giving them the awareness to share their knowledge with their family and schools. This in turn could lead to more involvement from corporations and government institutions. Plastic Whale will adopt the following positioning statement: To the future of Sydney, Plastic Whales tours will provide you with tours of the beautiful Sydney Harbour whilst we learn together how to make better use of the plastic in our oceans.

Positioning Map

Plastic Whale

Level of Education Provided

Clean up Australia

Low

Seabin

Sea Shepherd

Innovativeness

High

Reference List 1. Wynveen, C.J., Kyle, G.T. & Sutton, S.G., 2014. Environmental Worldview, Place Attachment, and Awareness of Environmental Impacts in a Marine Environment. Environment and Behavior, 46(8), pp.993–1017 [Accessed 3 Apr. 2020]

2. Cutter-Mackenzie, A., 2014. Where Are Children and Young People in Environmental Education Research?. Australian Journal of Environmental Education, 30(1), pp.103105. [Accessed 4 Apr. 2020] 3. O’Farrell, K., 2018. 2016–17 Australian Plastics Recycling Survey. Environment.gov.au.

[Accessed 3 Apr. 2020]. 4. Anon, 2010. Environmental awareness and action - Australian Social Trends June 2010. Abs.gov.au. [Accessed 2 Apr. 2020] 5. Chettle, N., 2017. Sydney Harbour hidden plastic pollution is killing endangered turtles and marine life, ABC News [Accessed 2 Apr. 2020] 6. Team, M., 2018. A sustainable and environmental future for Australia. Mintel. [Accessed 4 Apr. 2020]. 7. Ling, H. and Chiw, A., 2018. Young people of Australia and climate change: perceptions and concerns. Millenniumkids.com.au. [Accessed 3 Apr. 2020].

8. Eccleston, P., 2007. Public 'concerned on environment', survey says. Telegraph.co.uk. [Accessed 5 Apr. 2020].

9. Education, A., 2017. Kids voice their concerns about environmental issues for Earth Hour 2017. Education.abc.net.au. [Accessed 4 Apr. 2020].

10. Cutter-Mackenzie, A., 2014. Where Are Children and Young People in Environmental Education Research?. Australian Journal of Environmental Education, 30(1), pp.103105. [Accessed 4 Apr. 2020]

11. Whale, P., 2018. Impact Report Plastic Whale Foundation 2018. Petpower.eu. [Accessed 4 Apr. 2020]....