Market Segmentation for Lawn Mowers
Introduction
In this document, we will analyse the current market of lawnmowers in Portugal. By recognising this market and its products with distinct characteristics, we will perform a customer segmentation, which will allow us to divide the market into small groups.
Through the segmentation of the lawnmower market, it will be possible to achieve a greater proximity to the final customer; create advertising media that target the identified segments; facilitate the positioning of the product; and obtain the return on investment by the company.
The developments and technological diversity provided by all the competitors operating in the sector has shown that this market is very competitive nowadays. Thus, it is imperative that a strategic shift is implemented, which is more focused on meeting the needs of the customer.
The notorious falling sales in the sector since 2008 were of equal importance, although the explanation of this phenomenon lies in the national and international economy situation.
To analyze the current market of lawnmowers in Portugal, we started to make a small market research. To get a concrete “shape”, we went to one of the biggest players in the market - Leroy Merlin, who kindly gave us some informations which served as basis for this assignment and which allow us to have a better vision of what is happening in the lawn care industry.
GOALS
By segmenting the market of mowers you can:
· Get a closer relationship with the end consumer;
· Create advertising media that are targeted to the identified segments;
· Facilitate the positioning of the product;
· And monetize coveted by the company.
This last point is usually associated with Increase sales, Increase profits, Increase sales dealer channel.
Segmentation
There are several types of lawnmowers available on the market: manual, battery - powered or gas – powered models, are some of the options.
There are ways to segment the lawnmower market :
Customer characteristics
•
In this document, we will analyse the current market of lawnmowers in Portugal. By recognising this market and its products with distinct characteristics, we will perform a customer segmentation, which will allow us to divide the market into small groups.
Through the segmentation of the lawnmower market, it will be possible to achieve a greater proximity to the final customer; create advertising media that target the identified segments; facilitate the positioning of the product; and obtain the return on investment by the company.
The developments and technological diversity provided by all the competitors operating in the sector has shown that this market is very competitive nowadays. Thus, it is imperative that a strategic shift is implemented, which is more focused on meeting the needs of the customer.
The notorious falling sales in the sector since 2008 were of equal importance, although the explanation of this phenomenon lies in the national and international economy situation.
To analyze the current market of lawnmowers in Portugal, we started to make a small market research. To get a concrete “shape”, we went to one of the biggest players in the market - Leroy Merlin, who kindly gave us some informations which served as basis for this assignment and which allow us to have a better vision of what is happening in the lawn care industry.
GOALS
By segmenting the market of mowers you can:
· Get a closer relationship with the end consumer;
· Create advertising media that are targeted to the identified segments;
· Facilitate the positioning of the product;
· And monetize coveted by the company.
This last point is usually associated with Increase sales, Increase profits, Increase sales dealer channel.
Segmentation
There are several types of lawnmowers available on the market: manual, battery - powered or gas – powered models, are some of the options.
There are ways to segment the lawnmower market :
Customer characteristics
•
Bibliography: Market Segmentation: How to Do It and How to Profit from It, Malcolm McDonald Butterworth-Heinemann, 2012 Market Segmentation: Conceptual and Methodological Foundations, Michel Wedel, Wagner A. Kamakura – 2000 Handbook of Market Segmentation: Strategic Targeting for Business and Technology firms, 3rd edition, Art Weinstein, PhD, 2004 Market Segmentation Success: Making It Happen!, Sally Dibb, Lyndon Simkin - 2013