Revealing the firm’s market segment opportunities, Billionaire will evaluate the various segments and decide how many segments it can serve and which segments it can serve best. Billionaire will look at three factors, segment size and growth, segment structural attractiveness, and company objectives and resources. “The company must first collect and analyze data on current segment sales, growth rates and ezpected profitability for various segments, it will be interested in segments that have the right size and growth characteristics.” Marketing: An Introduction, Armstrong/Kolter, p. 186. The right size for the Billionaire market is not the largest segment available, as it’s competition is too aggressive with the mid-priced vodka’s. Billionaire Vodka finds more potential and profits in the more exclusive, luxury vodka markets. “A company should enter only segments in which it can create superior customer value and gain advantages over competitors.” Marketing: An Introduction, Armstrong/Kolter, p.186. It would make little sense for Billionaire to enter a large market segment in which the most common vodkas are sold. “Market targeting can be carried out at several different levels. …companies can tartet very broadly (undifferentiated marketing), very narrowly (micromarketing) or somewhere in between (differentiated or concentrated marketing).” Marketing: An Introduction, Armstrong/Kolter, p.186. Billionaire Vodka will use Concentrated Marketing (or niche marketing) strategy rather than going after small shares of a larger market, The firm will go after large shares of one or a few smaller segments or niches. This will allow for us to focus our limited resources on serving niches that would be unattractive to larger companies.
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