A Market Segmentation Analysis for ABI and SPAR

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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6558

6451 52

35 37 36

0

20

40

60

80

Crème Soda Coo-ee Coke Aquelle Iron Brew

Male Female

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

BehaviouralBehaviouralSpecial Event - Party

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BehaviouralBehavioural

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Special Event – Family Outing

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

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

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

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)

Target marketsTarget marketsPrimary: Taste SeekersSecondary: Value-for-money Buyers and

Brand Loyalists

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Promotional Plan

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

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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