Presentation Transcript
Special Topic: Segmentation : Special Topic: Segmentation Luxury vs. Poverty Markets
Need to segment China’s increasingly diversified market: Need to segment China’s increasingly diversified market Identify possible segments
Geographic (urban, rural)
Demographic (age, gender, life-cycle)
Psychographic (lifestyle, personality)
Determine attractiveness of each segment
Its potential profitability
Your unique advantage over competition
Target segment(s) with greatest potential
Develop marketing program to serve each target
Example: Luxury Market: Example: Luxury Market Highly attractive market
$2 billion in sales of luxury goods in 2005
3rd largest luxury good market in the world
Goldman Sachs
$12 billion by 2015 (29% share)
5-10 million can afford luxury products
Merrill Lynch
250 million high-end customers by 2010?
Luxury Market: Consumer: Luxury Market: Consumer Profile of consumer
Young
Educated
Sophisticated
Tech savvy
What consumers want
Style
Brand names (Western) for public display
Status
Reliability and safety
Luxury Market: Competition: Luxury Market: Competition All global luxury brands:
Armani, Dolce & Gabbana, Porsche, Ferrari, Louis Vuitton, etc. etc. etc.
Saks Fifth Ave. opens first store in 2008
Chanel in 2 cities in 2002; 23 cities today
Luxury market: Program: Luxury market: Program Type of product:
autos, yachts, luxury housing, shopping malls, cosmetics, clothing, gourmet foods, travel, etc.
Distribution:
Luxury malls
Luxury product exhibits:
Millionaire Fair
Extravaganza Shanghai
Heavy Advertising / PR:
Promote brand name
New luxury media: e.g., Vogue China
Pricing:
Expensive
Poverty Market: Poverty Market Attractive market?
1 billion consumers
Low discretionary income
Strong needs
Example: Poverty Market: Example: Poverty Market Cemex
Worldwide
Central America, Venezuela, Colombia, Egypt, Thailand, Taiwan and now Europe
Selling brand and convenience (not price)
Adapting to marketing (darker in Egypt)
Bringing product close to customer