Group 2 BPMM1013_E Group Assigment Segmentation Simulation

UNIVERSITI UTARA MALAYSIA



PRINCIPLES OF MARKETING BPMM 1013 (GROUP E)

GROUP
ASSIGNMENT 1:
SEGMENTATION

SIMULATION

Group 2

1. Edwin A/L Henry - 293672
2. Chan Lai Tong - 293680
3. Muhammad Haikal Naimullah Bin
Mohd Izuha - 293695
4. Chang Yu Heng - 293705
5. Ng Jie Hui - 293724
6. Kalisvary A/P Nookarajoo - 293759
7. Joan Lim - 293770

SEMESTER: A221

Prepare for : Dr. Safwan Marwin Bin Abdul Murad

The Brownies Letopss get

sales increase right now !!

How can these sales increase? Brownies Letopss is a newly launched cookies
business with partnership this year having received sufficient revenue. At the
beginning, this business was only to be sold as a small business as ancillary income.
Nevertheless, sales have been in high demand due to the catering to the tastes of
consumers in the local population. Consequently, my business partner and I have
set a goal to get more customer of Brownies Letopss. We aim to increase average

monthly revenues by more than 20%.

Question 1

WHAT WOULD YOU DO TO INCREASE THE
AVERAGE MONTHLY REVENUES BY MORE
THAN 20%?

Response Option C: Conduct some research around segmentation and targeting

Market segmentation is the division of the total market into smaller groups and relatively
homogeneous groups. The four common bases for segmentation markets are geographic
segmentation, demographic segmentation and behavioral segmentation. Next, the target market is
a group of people that have been identified as the most likely potential customers for a product
because of their shared characteristics such as age, income, and lifestyle. The aim of the company
is to increase average monthly revenue by more than 20%. So companies need to do some research
around segmentation and target the potential customer.

Conduct some research around segmentation and targeting is the most suitable response because
this can minimize the cost and increase revenue compared with other responses. Conduct some
research can gain the latest information about the customer’s flavour and trend, so that the
company is able to produce cookies that fulfill customer’s wants and needs. Besides, company will
know the main customer of the product so they will focus on improvement and promotion to them.
By doing this, Brownies Letopss can increase the loyalty of current customers and attract new
customers.

Marketers can conduct some research through surveys,
interview similar people and interview advertising agencies.
These ways can help Brownies Letopss target their market
and segmentation easily. For example, Brownies Leptopss
can send surveys directly to their target customer’s emails
and find out a lot about them. Next, Brownies Letopss can
interview similar people like friends, colleagues and
acquaintances, the people that company interviews will lead
similar lives to their target customers and this will help the
company understand them better. In addition, advertising
agencies normally have a lot of experience as they work with
people from different backgrounds and different walks of
life. Brownies Letopss can find out more about their target
market by interviewing advertising agencies, so that they will
be able to give the company a lot of information.

Question 2

Your business partner suggests defining the Brownies Letopss market to understand
who might want your brownies cookies and have the means to buy them.

Based on the information provided, how do you want to segment the market?

Respone Option C: Psychographic: Segmentation by customer motives and lifestyle

The market segmentation for Brownies Letopss is psychographic segmentation. Psychographic
segmentation meaning as the customer groups were segmented based on lifestyles, personality
traits, attitude, values, beliefs and interests. Based on the information provided, the reason that they
choose psychographic segmentation for Brownies Letopss is that they have many customers based
on the customer's motives and lifestyles. For example, about 35% of customers are seasonal
celebration people and 35% of customers buy the products for family and social events like
birthdays, weddings, anniversaries and school reunion celebrations.

Customer motives is one of the variables to the segmentation market. Customer motives will
influence the customer purchase decisions in process purchase decisions. The motive is the inner
states that direct a person toward the goal of satisfying a need. According to the customers'
motives, they will buy the products of Brownies Letopss when in the seasonal celebration. For
example, the seasonal celebration which is Olympic, Christmas, Earth Day and the other day will let
customers gain motives to celebrate the holiday and to purchase the products of Brownies Letopss.
Marketers also can produce the new products regarding the holidays to attract the customers who
do not celebrate certain holidays to purchase their products to promote their brownies cookies.

Lifestyles are the other variables that marketers used to aim their potential customers. The
purchase decisions of customers are based on their lifestyles. For example, social events like
birthdays, weddings, anniversaries and school reunion celebrations are part of life for customers'
lifestyles. The social events will improve the revenue of Brownies Letopss because many people like
to celebrate birthdays and anniversaries in this modern era. Nowadays, many people also like to
gather for the event which is school reunion celebrations to keep their good relationships. Marketers
can promote their brownies cookies that have many various themes which include birthday,
anniversary, wedding, school reunion and other themes to increase the customers purchase.
I believe that psychographic segmentation is the most suitable strategy for the segmentation of the
Brownies Letopss. This is because psychographic segmentation can give marketers valuable insight
into the customers audience’s motives, preferences and needs. Understanding the aspects of
psychographic segmentation can help marketers to create content that appeals to the strategy of
marketing more effectively.

Question 3

Based on the segmentation selected in the previous question, which
group of customers does you intend to target as the primary
segmentation of Brownies Letopss?

Response option C: Family and social event

Based on the psychographic segmentation selected in the
previous question, I intend to target option C family and
social events as the primary segmentation of Brownies
Letopss. This is due to the reason that family and social
events represent a more widely market segment compared
to option A, B, D, E and F.

If Brownies Letopss target family and social events as
primary segmentation, this segment may involve the
families from urban areas and have different religion, family
status, lifestyle for different purposes. This is because the
statistic provided by Brownies Letopss had revealed the
average household income is RM48000, this means most of
the customers live in urban areas and have higher
purchasing power. For instance, Brownies Letopss can also
produce cookies made with halal ingredients in order to get
halal certification from JAKIM, an agency which is
responsible for the Islamic affairs including halal
certification in Malaysia.

Moreover, Brownies Letopss can also target the family
with children under their guidance. For instance, parents
may buy cookies for their children of all ages like kids,
adolescents, adults and so forth as a daily snack or satisfy
hunger quickly during a busy day. Besides, this group of
customers will buy cookies to attend social events like
birthdays, weddings, anniversaries, and school reunion
celebrations. As an illustration, customers may purchase
cookies as a birthday gift for their children as well as a
surprise gift for their partner. Furthermore, customers can
purchase cookies with various flavors for their friends while
attending school reunion celebrations as a symbol of
remembrance for their school life.

By targeting family and social events, Brownies Letopss
will encompass families that have healthy and organic
lifestyles as target customers since it has produced gluten-
free cookies for their customers. This attribute may attract
customers who have a healthy and organic lifestyle as
gluten-free foods are useful in easing digestive symptoms,
reducing chronic inflammation, boosting energy, and
promoting weight loss. Thus, Brownies Letopss can also
target other groups of customers like adolescents, families
with kids, customers from urban areas and healthy and
organic lifestyles through targeting family and social events
as primary segmentation.

Question 4 in buying. For example: SOM
(MALAYSIAN ORGANIC SCHEME),
A competitor launched a new HACCP (Hazard Analysis and
brownies cookies flavour targeting Critical Control Point) & NASAA
health-conscious customers. The (The National Association for
decision impact you significantly, Sustainable Agriculture, Australia).
reducing your average monthly Additionally, promotion is also
important to increase monthly
revenue YbyomuorreCtohamnp15a%n. y revenue. When providing our new
product, organic cookies, we need
Based on your experience, on to make advertisements on reliable
which segments do you want to platforms like Instagram,
focus on combating this? Facebook.


Response Option C: Question 5

Organic Supporter Based on the selected target in
the previous question, your
The reason for choosing C is monthly revenue moderately
because the strategy of competitors increase to +8.5%.
impacts our revenue directly and more What would you like to do to
than 15%, it means that some of our increase the monthly average?
local customers not only focus on the
deliciousness of cookies, but also focus Response Option D: Offer
on health. For healthy issues, normally discount and rebate
organic supporters will care more
about it compared to family, party In my opinion, offer discounts
people and food lovers among youth. and rebates should be used to
increase the monthly average
In targeting a healthy market, we for our Brownies Letopss
can attract organic supporters, and business. It is because a
bring back local customers. In discount is a type of promotion
Cambridge dictionary, organic can be that aims to sell a product and
defined as not using artificial increase sales in a short period
chemicals in the growing of plants and of time. Customers want to
animals for food and other products. purchase products that are on
Organic foods are produced through sale, so offering discounts is a
farming practices that only use natural good method to attract more
substances. This means avoiding all customers to our business. This
artificial chemicals, hormones, method of promotion is the best
antibiotics, and GMOs. way to announce new products
and promote our existing
The reason for the organic supporter products. Most people agreed
choosing organic food is because it is that discounts influenced their
healthy. Against organic supporters, if online buying decisions,
Brownie Letopss could provide organic highlighting the importance of
cookies which use healthier providing discounts to increase
ingredients, organic supporters will sales and profits. Discounts
choose our product. To compete with could increase the sales of
the competitor, Brownie Letopss should
have a certificate to increase
customer confidence in

products. Discount sales can be an childhood, according to Homaro
effective discounting strategy for Cantu. Whether it was our mother”s
attracting more customers to our homemade soup or a memorable
business and meeting the sales goals chocolate birthday cake or cookies,
that have been set. food has a way of transporting us
back in time (Homaro Cantu, 2013).
Meanwhile, rebate is a cashback on Memorable cookies are a sort of
the purchase of a consumer product or cookies that may transport users
service. Brownies Letopss business back in time, for example, by
must provide rebates to the customers evoking memories in order to
who have repeatedly purchased their attract customers. It may, for
brownies cookies. Most of the example, generate a timeline of
customers are willing to pay more to cookies development from the past
get a cashback from their purchases. to present. It might make the
For example, Brownies Letopss may customer fell connected to cookies
provide a 10% discount on brownies and reminisce about their youth.
cookies on certain days. Nevertheless, Aside from that, several customers
as the owner of Brownies Letopss, we had already tried cookies produced
are offering cashback to every by their grandparents and did not
customer who purchases a minimum have the opportunity to test them
number of brownies cookies. These again. As a result, people may put
strategies will persuade customers to our brownies cookies to the test to
purchase brownies cookies. With this, see whether they can recollect the
the Brownies Letopss business can past. Making memorable cookies
increase their sales and income. So, might entice customers to purchase
the best way for business owners to them again and again.
increase their monthly average is
offering discounts and rebates for their Customers will not spend a penny
customers. These strategies build more than the product’s true worth,
customer loyalty towards our brownies according to Ron Johnson (Ron
cookies and improve our business Johnson, 2013). We can observe
skills. from this line that most customers
will only spend money at a
Question 6 reasonable price. Consumers will
not choose to purchase cookies
Your business partner suggests from you if the price is not
repositioning the Brownies affordable. They may choose from a
Letopss by creating unique selling variety of brownie cookies from
proposition. Based on your competitors with lower pricing.
experience, which positioning is a Consumers, on the other hand, will
compelling, unique selling not spend their money on a product
proposition? that is too inexpensive because they
concerned about its quality. To
Response option C: Memorable summarise, creating our good,
Cookies, Affordable Price brownies cookies,, at an affordable
price is the ideal method to make
Memorable cookies at an affordable the buyers fell satisfied, and they
price, in my view, are the option for will repurchase in the future. At the
positioning Brownies Letopss as a same time, brownies cookies with
compelling and unique selling proposition. affordable price make it accessible
Food is something that most of us to a much bigger demographic
remember vividly from our

References

Alan Greene, MD. Top 10 Reasons to Support Organic in the 21st Century. 2022,
https://organic.org/top-10-reasons-to-support-organic-in-the-21st-century/.

Dan Fleetwood. Psychographic Segmentation: Definition, Variables, Examples
and Advantages. 2022, https://www.questionpro.com/blog/psychographic-
segmentation/.

Mary Jane Brown, PhD, RD (UK). What Is Organic Food, and Is It Better Than
Non-Organic Food? 16 September 2021,
https://www.healthline.com/nutrition/what-is-organic-food.

Mitt Ray.6 Ways to Find Out More About Your Target Audience. 15 March 2021,
https://socialmarketingwriting.com/target-audience-research/.

Most of us have fond memories of food from our childhood. Whether it was our mom's
homemade lasagna or a memorable chocolate birthday cake, food has a way of
transporting us back to the past. 26 March 2016,
https://www.azquotes.com/quote/785393.

The Reason for Ron Johnson's JC Penney Fiasco. 12 April 2013,
https://www.usnews.com/opinion/blogs/economic-intelligence/2013/04/12/why-jc-penny-
failed-under-ron-johnson.