This report focused on the study of the demographic segmentation approaches of the two products in completely different categories—the quick personal funding of Commonwealth Bank Australia and the Special K Protein Plus cereal of a supermarket brand Kellogg’s. This report investigated the effectiveness of these two products and brands in terms of creating customer and brand loyalty via the conduction of five in-depth interviews with five heterogeneous samples.
The first part of this report introduced the approach of marketing segmentation and the demographic segmentation practices, which worked as the fundamental theoretical basis for the further product marketing analysis. Also in this part, the introduction and superficial analysis on the two products were given, as well as their target market identification and analysis was also involved.
The third part gave a theoretical basis of customer and brand loyalty concepts for the later research project. It involved literature reviews and summary about the two concepts, revealing the interrelations between the concepts of customer satisfaction, consumer loyalty and brand loyalty.
The fourth part included a small research project for assessing the customer and brand loyalty level of the samples to the two products and brand. The research was qualitative and interview based for exploring the cases with more depth. The five samples were selected with different demographic variables, and the outcome indicated that their interests and demands were also varied and their loyalty level to the products and brands were also different from each other. The results of two products were compared with reference to the literatures of part one and three of the report.
Table of Contents
Marketing is one of the critical tasks of most of the organization in today’s competitive context. This report introduces the fundamental marketing approach of market segmentation that is based on the demographic variables for two different products from the Commonwealth bank and the breakfast food brand Kellogg’s. The theories and literatures about customer loyalty and brand loyalty will be reviewed and summarized in the second part of this report, which underpin the research of the further customer surveying project. Through this report, the level of customer loyalty and the effectiveness of the market segmentation strategy adopted by the two products are analyzed and revealed.
1. Demographic Market Segment
Market segmentation is a process of defining and subdividing the large homogenous consumer population into identifiable and manageable segments according to the similarity of needs and demands and the behavioral, geographic, psychological and demographic characteristics (Campbell & Butaney, 1996). Due to the scarcity of organizational resources, most of the businesses are not capable of meeting the needs of the entire market and need to breakdown the aggregate demand into smaller pieces and then choose one or few to target on (Wedel & Wagner, 1998). By dividing the large market into small and diverse groups, organizations could develop a marketing mix that responds to the needs, expectations and interests of the consumers in a particular segment (Wedel & Wagner, 1998).
The segmentation based on the demographic variables includes the considerations on age, social class, gender and possibly race. The demographic variables are considered as the significant factors influencing the customer preferences, interests, expectations and demands (Weinstein, 1994). The demographic segmentation allows the organizations to better understand and reflect the demands, interests and needs related to demographic variables, and then to undertake necessary initiatives to ensure the needs are sufficiently fulfilled.