Answer to Question #197287 in Marketing for gggg

Question #197287

Health and Nutrition Start-Up, Habbit makes consumer debut with a range of innovative & delicious Products. Habbit Wise Creams are the lowest calorie ice creams in the world. Every serving has less than 50 calories, which is less than half an apple. Available in 6 gourmet flavours such as Blueberry Crumble, Salted Caramel, Lychee Blush, etc. Wise Creams contain zero added sugar and are keto + diabetic friendly. Prepare an appropriate Segmentation Strategy for the new launch. Considering that they have entered in consumer market for the first time, how should the brand be positioned in the market?

Expert's answer

Segmentation strategy is a technique used in organizing customers based on their demographic, psychographic, behavioral and geographical factors or based on all of them. It is a tool used in simplifying the wider market scope to a small targeted market audience. Market segmentation will help Habbit company to narrow to a smaller market audience and well manageable. The strategy in question will give Habbit a competitive advantage over its competitors present in the new market. Habbit will have to consider demographic segmentation factors such as age, level of income and gender of the targeted consumers (Su & Liu, 2017). The company will carry out audience analysis in the market to be aware of the market trends and the consumers’ tastes and preferences. The use of research questions will enable Habbit company to know the demographic factors of the targeted customers.

           However, the geographical location of the targeted customers should be analyzed, especially the urban area's customers. Customers staying in urban areas have poor eating habits therefore affected by diabetes. Habbit company will have a breakthrough in its wise ice creams in urban areas due to its low-calorie levels. This product will help customers from urban areas to cut their weights effectively without struggling. Based on the psychographic segmentation, the company will divide its customers on their lifestyle, hobbies and value basis. It will help customers shift from high sugary ice creams to low sugary wise ice creams provided by Habbit. Educated customers will also be the best segment for the company since they understand the importance of low sugary ice creams compared to sugary ice creams.

           The behavioral segmentation will also be analyzed based on the customers' loyalty and purchasing habits. This will be realized from the utilization of the ice creams by the target market. In a nutshell, Habbit should position its brand based on its attributes and quality. The Habbit wise creams are healthy, high quality, more nutritious and low sugar levels hence having no side effects. According to Camilleri (2018), the ice cream attributes will give the company a competitive advantage in the new market over its competitors. The high-quality ice cream with low sugar content will attract a more significant consumer segment in the new market.

























Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Su, Q., & Liu, W. (2017). Market segmentation and pricing strategies based on product platform. Asia Pacific Journal of Marketing and Logistics.

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