Does your market segmentation drive the right strategic choices?
Missing the mark
Clients often come to us with a segmentation that took them a great deal of time, effort and money to build, but sheepishly admit that it is not being used within the business and certainly not addressing the wider challenges it was originally designed to answer.
First and foremost, a market segmentation should be an invaluable tool for the marketer, helping them make strategic choices of where to invest and where not to, and then backing up those choices with focused activation plans. Why do segmentations so regularly fall short?
Too often, the research industry creates segmentations which are scientifically robust but aren’t actionable. Those commissioning the research prioritise simply getting a complex project done, over thinking more broadly about the key decisions that these critical projects should inform.
Unlocking brand growth
This doesn’t need to be the case. Segmentations can and should be tools that can unlock opportunities and lead to brand growth. This requires expertise and experience, and both science and art.
There is always more than one way to segment a market and the optimum solution is rarely the most obvious one. The art is to look beyond the obvious, considering the right combination of consumers, needs and occasions that will uncover territories with realistic growth potential.
And of course, a segmentation or framework which summarises the market is just the starting point. It’s what you do with it that makes the difference. A segmentation should provide the stimulus and the raw material for making key strategic choices around where your brand or brands should play and how they will win.
Deciding where to play and how to win
How can you ensure a segmentation drives the right strategic decisions?
1 / At the start ensure that there is a deep understanding of the business context and the decisions the research needs to influence
2 / Create a segmentation that goes beyond a simplistic view of the category to identify and describe new opportunities
3 / Use the segmentation collaboratively across the business to make strategic decisions and create specific business plans
From in-home appliances to on-the-go snacking, wealth management to cruise ship entertainment, wines and spirits to cough and cold: we’ve learnt that no two categories are the same. At Incite, we have the skills and experience to create sophisticated, bespoke segmentations and routinely work with clients to bring them to life in their particular business.
Our expert facilitators – armed with a range of tried-and-tested tools – guide clients through the decision-making process of where to play and how to win. Learn how we helped Burger King get from segmentation to sustainable solutions here.
Segmentation studies represent a big investment of your time and money. If you want to see a better return, let us help you unlock opportunities for your brands.
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