A Market Segmentation Analysis for ABI and SPAR
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A market segmentation analysis for ABI within
Southgate SPARPresented by: Trang Nguyen
Nirvana DoodlaKim ThompsonCarla Redding
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o Identify the market segments and to develop the
target market for Southgate SPAR with regard to
ABI products.
o Southgate SPAR - mixed target market
o Segmenting the Southgate SPAR market and
developing the proper target market for
Southgate SPAR with regard to ABI
o Promotional plan for December 2009 till June
2010.
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Problem StatementProblem Statemento To identify, the market segments and the target markets for
Southgate SPAR with regard to ABI.
Aim of the studyAim of the study
o Target markets for Southgate SPAR with regards to ABI
products, and to develop promotional strategies that
effectively appeal to the chosen target market.
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Objectives of the studyObjectives of the studyo Identify the market segments and the target market for Southgate
SPAR with regard to ABI
o To increase SOVI (Share of Visual Inventory) within the store with
regard to ABI products
o To increase brand awareness on the 6 focus brands namely:
o Powerade, Minute Maid, Play, Nestea, Beat and Bonaqua Pump
o To develop a promotional plan for ABI product within Southgate
SPAR.
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Customer: Southgate SparCustomer: Southgate Sparo The customer is Southgate Spar situated at 19 Trelawney
Road, Bisley, Pietermaritzburg.
o The store is currently undergoing a revamp in order to
better suit customer needs
o The main communication barrier between ABI and Spar is
the ABI sales representative
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Research MethodologyResearch Methodology
Research design - Descriptive research
Primary research - Observation and Questionnaires
Observation took place on: Thursday 13, Saturday 15 and
Sunday 16 August 2009 ,a total of 354 beverage products
were purchased.
The data collection was conducted on Saturday 22, Sunday
23, Monday 24 and Tuesday 25 August 2009. The sample
size of the data collection was 121 participants
Data was analysed using SPSS and used to formulate the
segmentation for Southgate SPAR.
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Most Frequently Purchased Most Frequently Purchased BrandsBrands
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Products Purchased by:
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Gender and Most preferred brandsGender and Most preferred brands
• Coke purchasers: 65% were males, only 35% were female.
• This is similar for Aquelle and Iron Brew.
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49 48
6558
6451 52
35 37 36
0
20
40
60
80
Crème Soda Coo-ee Coke Aquelle Iron Brew
Male Female
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Race and Most Preferred Race and Most Preferred BrandsBrands
White customers- Crème soda and CokeBlack customers - Coo-ee and Aquelle
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Customer Customer Survey Survey
FindingsFindings
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Preferred BrandsPreferred Brands
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Segmentation Variables
Geographic
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DemographicDemographicIncome
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DemographicDemographicAge
47.9% of the respondents were between the ages of 20 – 39, while 44.6% were above the age of 40.
RaceThe majority of the respondents (68.6%) were
Black, while 26.4% were White.
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DemographicDemographicGender
55.4% of the research participants were male, and 44.6% were female.
Family Life• 55.4% of respondents were not married• 79.9% of the research participants did have
children
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BehaviouralUsage Rate
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BehaviouralBehavioural
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Special Event - Braai
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BehaviouralBehaviouralSpecial Event - Party
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BehaviouralBehavioural
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Special Event – Family Outing
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PsychographicPsychographicMotive
Most common reasons for purchase:Taste (40.2%)Cheaper Price (15.7%)Accustomed to it (11.8%)Sugar Free (9.8%)
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PsychographicPsychographicLifestyle
Equal amount of respondents (42.1%) shop at Southgate SPAR on a daily or weekly basis.
33.1% of the respondents conducted their grocery shopping at Southgate SPAR
20.7% used Southgate SPAR for their convenience shopping
7.4% used it for both.
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Reasons vs. AgeReasons vs. Age
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Reasons vs. RaceReasons vs. Race
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Reasons vs. GenderReasons vs. Gender
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Reasons vs. Marital Reasons vs. Marital StatusStatus
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Reasons vs. IncomeReasons vs. Income
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Reasons vs. Family Reasons vs. Family InfluenceInfluence
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Reasons vs. BrandsReasons vs. Brands
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SPAR Customer ProfileSPAR Customer Profile
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Taste Seekers Value-for-money Buyers Brand Loyalists
Taste is important 39 and younger More Black More males than females Usually not married R5000 – R15000/month Little family influence Preferred brands: Coke,
Fanta Grape, Stoney, and Aquelle
Price is important 40 and older Health conscious Sugar free Black and White More females than males Married mostly R10000 – R15000/month High family influence Preferred brands: Sprite Zero,
Coke Zero, Coke Light, and Coo-ee Apple
Indifferent buyer, loyal to a single brand
20 to 49 Mainly Black More males than females Usually not married R5000 – R15000/month Medium family influence Preferred brands: Coke,
Iron Brew, Sparletta Crème Soda, and Sprite Zero
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Taste seekers Taste seekers Young, Black, maleIndependent, single
and career mindedOptimistic, youthful,
full of lifePositive, exuberant,
playful and imaginative
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Value-for-money BuyersValue-for-money BuyersMiddle aged to senior,
racially diverse, health conscious and price sensitive
Do not compromise on tasteCelebrate dualitySense of self and identity
without being bound by limits
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Brand LoyalistsBrand LoyalistsFun loving, playful,
positive about lifeYoung, Married,
Black males
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Segment attractiveness Segment attractiveness
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Segment attractiveness
Taste Seekers Value-For-Money Buyers
Brand Loyalists
Weight (/10)
Score (1-10)
Total Weight (/10)
Score (1-10)
Total Weight (/10)
Score (1-10)
Total
Size 4 10 40 4 7 28 4 6 24
Purchasing Power
3 6 18 3 8 24 3 6 18
Quantity 3 7 21 3 8 24 3 7 21
10 10 10
Total 79 76 63
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Business strengthBusiness strength
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Business strength
Taste Seekers Value-For-Money Buyers
Brand Loyalists
Weight (/10)
Score (1-10)
Total Weight (/10)
Score (1-10)
Total Weight (/10)
Score (1-10)
Total
Price competitiven
ess
4 9 36 4 6 24 4 10 40
Customer knowledge
4 9 36 4 6 24 4 8 32
Brand awareness
2 7 14 2 7 14 2 9 18
10 10 10
Total 86 62 90
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Market Attractiveness/Business Market Attractiveness/Business Strength MatrixStrength Matrix
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Business strength
Strong (70-100) Average (40-69) Weak (0-39)
Segment attractiveness
High (70-100)X Taste Seekers
X Brand Loyalists
XValue-for-money buyers
Medium (40-69)
Low (0-39)
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Target marketsTarget marketsPrimary: Taste SeekersSecondary: Value-for-money Buyers and
Brand Loyalists
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Promotional Plan
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Promotion PlanPromotion PlanDecember 2009- Christmas Competition- Summer Beach Campaign
January 2010- 6 Pack Summer Campaign - Summer Braai Competition - Back to School Campaign
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Promotion Plan Promotion Plan February 2010- Valentine’s Day Special - In-store promotion of Beat and Bonaqua Pump
March 2010- Fanta’s Easter Egg Hunt
April, May, June 2010- 2010 Soccer World Cup Campaign
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Recommendations
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In-Store Recommendations for ABI In-Store Recommendations for ABI within Southgate SPARwithin Southgate SPAR
Stipulate the amount that the customer is saving on a particular
item example: Was R12.99 – Now R11.49 – Save R1.50.
EDLP display should include all products that are on promotion,
including Coke, Coke Light, Coke Zero, Sprite, Fanta, and Twist.
Place an ABI fridge behind the deli.
There should be more in-store promotions such as tasters: Beat,
Nestea, and Minute Maid.
All products must have prices indicated, especially for 330ml cans.
Relationship between SPAR and ABI sales representative needs to
be built
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General General Recommendations for Recommendations for
ABIABIBonaqua water in 5-litre format and 1.5 litre format
Powerade with pop-up lid
Avoid associating Bonaqua Pump with Bonaqua flavoured
water
Minute Maid in the lunch box size (200ml)
Insert “Fizz-Free” label on Minute Maid cans
Introduce Litchi flavour for Minute Maid
Bring back the Play four-pack
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Thank You!!!Any questions or
comments???
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