Segmenting Central Perk PDF

Preview

Summary

Group In-class assignment ...

Description

STP, PART I

COMM 296: INTRODUCTION TO MARKETING

Full Name: _________Taymur Pasha__________ Full Name: ____Jasleen Kaur_______________ Full Name: _____________Viren Gehani ______ Full Name: ______Anqi Liu_____________

Segmenting Central Perk Imagine Gunther, the manager of a coffee shop called Central Perk, has identified 4 customer segments: ● Mornings To-Go: Regular customers (4+ times per week), big and growing crowd, small spend each visit ● Wifi Workers: Somewhat regular customers, small but stable group, take up valuable table space, often nurse a single beverage for several hours ● Let’s Do Lunch: Often new customers, sizable crowd, medium-length visits, highest spend per visit ● Lingering Chatters: Visit frequency varies, length of stay varies, amount spent varies 1. Rate each segment on each criteria using the scale below. Justify each rating in a few words. Scale: Good, Fair, Poor, or Unclear Mornings To-Go

Wifi Workers Good- there are certain distinct traits of this segment, like they order one beverage for several hours, somewhat regular customers, etc

Let's Do Lunch

Lingering Chatters

Good-medium length visits, highest spent per visit

Unclear- different customers behavior varies

Identifiable

Good- 4+ times per week, large crowd, small spending

Substantial

Good- Large customer size

Poor- because of the small size of customers, buying power is not much

Good-Because of the sizable crowd

Fair- frequencies or length of stay could be promoted.

Reachable

Good-. They will be able to react to marketing messages as they are frequent customers. They all know the product exists.

Fair- they know the product exists and recognise how to buy it- Somewhat regular customers

Poor- new customers are hard to reach but after their first visit they are reachable

Fair-They know how to buy it and the only difference is the varies in different customers.

Good- They are regular users and they all react similarly to any marketing strategy.

Fair- as they order just one beverage but are somewhat regular as customers, so it is possible they like that one drink offered by Central Perk

Good-already buying multiple products

Fair-Not all of them would respond because of competitiveness in the market.

Responsive

Profitable

Fair- Visit often but spend less resulting in average profitability.

Poor- as these regular customers spend most of their time sipping on a single beverage for hours, so loss of revenue (valuable space taken up)

Good- they spend the highest per visit although they visit less frequently

Poor- they have volatile profitability because of the random time customers would spend.

2. Based on your answers in the table above, which segment(s) should Central Perk target? Why? One segment that Central Perk could target would be the “Mornings to Go” crowd. This is the largest customer segment and they visit very often (4+ times a week). They are identifiable, substantial, reachable, and responsive. Currently they are not that profitable as they don’t spend much however a successful marketing strategy could convince these regulars to spend more on each visit, increasing profitability. They could for example launch a new more premium product that replaces what the regulars normally get and market it to them. Central Perk should target the “Let's Do Lunch” segment. The main reason is that this segment has the highest profitability, as they have the highest expenditure, so this proves to be an opportunity for marketers. By targeting them through a Micromarketing, Central perk can create their menu in accordance with their purchasing behavior- highest spent, medium length visits (opportunity for more beverages to be sold, per customer- which will help retain these customers in the long run. As they visit less frequently, not much of these revenues are turned to long-term profit; however targeting them through Micromarketing could be a key factor that helps them do this as they can tailor needs to individual customers more easily, which will help them reach the audience in a better, personalised way, which is easier to achieve for a single coffee shop....