Segmentation and TESCO Case: Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior Using segmentation analysis helped Tesco PLC‚ Britain’s largest retailer stores to decide on their future marketing strategy and to appraise their competitive strengths Tesco realized the requirements for effective segmentation and that it must be Measurable‚ accessible‚ Differentiable‚ Substantial and Actionable
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Segmentation Why segmentation? External factors - globalization - clutter - knowledgable customers - competition - technology Internal factors - allocation of resources - effective marketing programmes - opportunies For NPD or/and market development Breaking down the market Potential market (everyone out there) Available market ( those who could buy the product) Target market (those we address) Penetrated market (those who actually buy the products) From
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Threat of New Entrants is low The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries‚ due to the cost of buying and leasing aircrafts‚ safety and security measures‚ customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands
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Profile of Steel Industry in India (Managerial Economics) CONTENTS Introduction Market Size Investments Government Initiatives Steel Prices Supply and Demand Analysis Cost of production Production Functions and Input: Fixed & Variable Inputs: Total & Average cost: Calculating Average
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At the onset of the airline industry in the United States‚ major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation‚ hub-and spoke models and costly information systems for reservations‚ fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major
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What are Segmentation Variables? To understand what segmentation variables in marketing are‚ it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Four (4) groups of Segmentation Variables – 1. Geographic segmentation is based on variables such as: • Region: this kind of
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Assignment # 1 Strategic Practice Exercise: (page #81) 1. Score each competitive force in the airline industry and provide a brief rationale for your assessment. · Rivalry Among Existing Firms: (High) When one major company in an industry makes a change in costs or services that could potentially increase their clientele‚ a major competitor almost always follows suit. Price matching is a prime example of that‚ therefore the threat is high. West Jet is one company that offers flights at a discount
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BACKGROUND There are few industries that are exposed to such a diverse assortment of risks as the airline industry. Ever since the first powered human flight in 1903‚ the progress of aviation and air travel has been inextricably linked to economic and political developments. The airlines of today face all of the four major categories of risk; operational‚ strategic‚ operational‚ financial and hazard risks. During the past 50 years‚ the airline industry has gone through several major changes.
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Influence of rivalry among competitors Rivalry is the competitive struggle between companies in an industry to gain market share from each other. A more intense rivalry usually means that there are lower prices and more spending on non-price-competitive weapons. These would be things such as in-flight complimentary items like drinks and snacks. A more intense rivalry will lower prices and raise costs. This means that this makes the window for profitability smaller. If the rivalry is less intense
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Framework to Assess Market Potential Africa Table of Contents Need for Market Potential Assessment in Africa The Assessment of Market Potential Framework Case Study - South African Steel Sector Our Regional Experience in Africa Case Studies – Additional Examples of Regional Expertise Subject Matter Experts Copyright © 2011 Grail Research‚ LLC 2 Need for Market Potential Assessment in Africa Africa is poised for growth due to expected economic development‚ global
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