Week 3: Assignment
Create the Value: Market Segmentation Analysis and a Value Proposition
Your company has decided to explore the possibility of developing a new retail
brand aimed at a specific target market. Please prepare a report that would form the
basis of a planning discussion with your senior marketing managers. The term retail
brand refers to a retail store concept, as opposed to a manufacturer’s product or
service brand – the retail company is the brand – like Target, GAP or Victoria’s
Secret.
Your report should include a detailed analysis of a potential market segment and a
description of the proposed value proposition. Your report should be about 1,000–
1,250 words and include a minimum of three references. Please use the APA format
for your paper and references. Please include the following sections:
1. Brief Description of the proposed retail brand concept
2. Potential Market Segment
Identify the characteristics of your potential target market. The figure from the
Week 2 lecture is helpful – you may also include other variables that you consider
relevant. You also need to estimate the size of your target market and the revenue
potential.
Major Segmentation Variables for Consumer Markets
Geographic region
Pacific Mountain, West North Central,
West South Central, East North Central,
East South Central, South Atlantic,
Middle Atlantic, New England
City or metro size
Under 5,000; 5,000–20,000; 20,000–
50,000; 50,000–100,000; 100,000–
250,000; 250,000–500,000; 500,000–
1,000,000; 1,000,000–4,000,000;
4,000,000 or over
Density
Urban, suburban, rural
Climate
Northern, southern
Demographic age
Under 6, 6–11, 12–19, 20–34, 35–49,
50–64, 64+
Family size
1–2, 3–4, 5+
Family life cycle
Young, single; young, married, no
children; young, married, youngest
child under 6; young; married,
youngest child 6 or over; older,
married, with children; older, married,
no children under 18; older, single;
other
Gender
Male, female
Income
Under $10,000; $10,000–$15,000;
$15,000–$20,000; $20,000–$30,000;
$30,000–$50,000; $50,000–$100,000;
$100,000 and over
Occupation
Professional and technical workers;
managers, officials, and proprietors;
clerical salespeople; craftspeople;
forepersons; operatives; farmers;
retired people; students; homemakers;
unemployed people
Education
Grade school or less; some high school;
high school graduate; some college;
college graduate
Religion
Catholic, Protestant, Jewish, Muslim,
Hindu, other
Race
White, Black, Asian, Hispanic
Generation
Baby boomers, Generation Xers
Nationality
North American, South American,
British, French, German, Italian,
Japanese
Social class
Lower lowers, upper lowers, working
class, middle class, upper middles,
lower uppers, upper uppers
Psychographic lifestyle
Culture-oriented, sports-oriented,
outdoor-oriented
Personality
Compulsive, gregarious, authoritarian,
ambitious
Behavioral occasions
Regular occasion, special occasion
Benefits
Quality, service, economy, speed
User status
Nonuser, ex-user, potential user, firsttime user, regular user
Usage rate
Light user, medium user, heavy user
Loyalty status
None, medium, strong, absolute
Readiness stage
Unaware, aware, informed interested,
desirous, intending to buy
Attitude toward
product
Enthusiastic, positive, indifferent,
negative, hostile
3. The Value Proposition
Describe the bundle of benefits/features that are offered to the target customer.
Features are what the company offers and benefits are what the customer derives
from these features.
Functional Benefits – What basic features are offered?
Emotional Benefits – What features are offered that make the customer feel
good?
Self-Expressive Benefits – What features are offered that help reflect and
communicate the customer’s values to everyone in the social environment?
4. Conclusions
Grading Rubric
Outline
Description
Points
Description
20/20 Brief Description of the Retail Brand Concept
Potential Mkt Segment
Identify the characteristics of your potential target
20/20 market; estimate the size of your target market and the
revenue potential.
Value Proposition
20/ 20
Describe the bundle of benefits and features (Functional
benefits; Emotional benefits; Self-expressive benefits)
