IP2 Essay Example | Topics and Well Written Essays - 500 words - 2

IP2 - Essay Example It includes use of demographic methods (such as gender or age), socio-economics (such as income levels or social class) and geographic location (often using sophisticated zip code or postal systems). Psychological include using customer attitudes and perceptions, the lifestyles of customers and the types of benefits customers seek from products and brands and their consumption choices (Baines, Fill, and Page 232). Behavioral criteria involve use of behavioral constructs such as product usage, purchase, and ownership to segment consumer markets. With the increasing sophistication of laundry detergent buyers we shall segment our market into two: (1) low-income, playschool parents – who have children younger than four years old, who purchase their laundry detergents at supermarkets or convenience stores. The laundry detergent will be for washing children wear. (2) The second target market shares all attributes with (1) except in this case we will be targeting primary school parents, who have children between ages 5 – 9 years. Young parents are high users of laundry detergents because of the need to keep their children, who change clothes at least twice a day, clean. Though this market segment tends to be loyal to their brands, we are targeting the low-income parents who are much keener than their high-income counterparts to try out new offerings. Though we may have to put a low price on our products to satisfy the low-income market, we anticipate high volumes because this demographic group tends to have more children than the high income counterparts. Our target market (2) will also feed from target market (1) as the children grow and their parents become loyal to our brand. Our biggest competitor shall be Procter & Gamble’s Dreft and Ivory Snow. Dreft’s value proposition is that it â€Å"helps remove tough baby stains, pediatrician recommended and the first choice of mothers