FOR MARKET SEGMENT AND PRODUCT MIX
Using data from the last 12 months from a business with which you are familiar:
• Take the top selling products (The 20% of products that provide 80% of the sales) and analyse the Four Ps of your marketing mix.
• Identify the top 20% of customers and separate them into market segments in terms of demographics, geography, psychographics and pattern of usage.
• Estimate the total size of the market segments identified that are currently of the most value to the business. Examine the results of your analysis and select the market segment that you feel should be exploited by the business and the product mix to be sold to this market segment. Write a report to the management setting out your recommendations, backing them up with the analysis and research that you have done.
FOR EXPLOITING THE MARKET SEGMENT AND PRODUCT MIX
The objective of this report this to analyze the current market segment and select one that should be exploited by the business and the product mix to be sold to this market segment.
I reviewed the top 20% of products using the last 12 months turnover and chose the two largest products which are pallet wrap film (Turnover in 12 month £1.28million at 38.4% Gross Profit) and packaging tape (Turnover £250,873.00 at 35.9% Gross Profit).
I reviewed the top 20% of customers using turnover as the medium and separated them into market segments in terms of demographics, geography, and pattern of usage.
The result of the analysis of our customers shows the following results:-
Type of Company Geography Pattern of Usage
Food and Drink Manufacturers North West Monthly
Chemical Manufacturers North East Quarterly
Electrical Goods Midlands
Paper Product Manufacturers Scotland
Logistics and Fulfillment Wales
The highest market is the food and drink manufacturers which is the market I am going to look at in this report.
The Food Industry
The food and drink industry is a core element of the UK manufacturing economy, representing over 15% of manufacturing turnover and employment. Through the recent recession it was the sector that reduced its output the least and has returned to pre-recession output levels the fastest. (Food and Drink Federation)
Innovation is a key focus for the food and drink industry
The food and drink sector accounts for over 4% of the total R&D spend reported in the annual R&D Scoreboard. Due to the highly competitive nature of the industry, there are over 1,500 new products introduced each quarter.
This mix of product and process innovation is core strength of the sector.
The sector provides above average pay and relatively long tenure in employment. The image of work in the food and drink industry is one of temporary and relatively low paid employment. Contrary to this common perception, the weekly earnings of employees in the food and drink industry are above those of the economy as a whole and job tenure appears to be over nine years on average for employees of food and drink manufacturers with only 6% temporary workers.
Strong and positive response to environmental and health concerns
Since 1990 food and drink manufacturing in the UK has reduced its CO2 emissions by at least 11%, showing a strong commitment to reducing the environmental impact of food production. At the same time, as there is a growing awareness of health issues related to diet and nutrition, the UK has become a leading source of new foods with health propositions. In 2007 36% of new health product launches in the European Union originated in the UK.
The food and drink sector could contribute significantly to future sustainable growth. Due to its size, direct links to health outcomes and its impact on emissions from production and logistics, the food and drink sector should be a strategic focus