Segmenting Consumer Markets
There are various ways in which Sam famous can segment its consumer markets. Considering that the primary users of their cheese are the baby boomer generation, using demographics to segment the market would be very vital. Since the company already has an age target market, they should narrow down the market niche to gender, family status, income, occupation, and social class. Race, religion, and nationality may not be a factor for consideration. The company should consider exploring new markets in new areas, finding the geographic elements of segmentation. The main competitor of the company Win Schuler’s which has diversified its products. Therefore, it would be wise for the company to consider the psychographic variables. Factors like price and brand affect the attitude of customers and other behavior; therefore, Sam famous should consider behavioral and attitudinal variables.
Segmenting Business Markets
Sam’s famous can use demographics to segment the business markets by industry and business size. This is because the company used to sell to restaurants, and therefore, the industry type would be vital, for example, using Amazon to expand the online platform. The company can also use demographics to segment the business customers since their current customers are only limited to Michigan and the Michiganians. Therefore, including other states. Regions and cities would expand the market of their products. Since the company is moving to the new areas, they should also consider the expectations of business customers, the usage occasions, the technological orientation of the customers and their purchasing partners. It should be more aligned to them than the company does things, to beat the competition.
Evaluating Segments
The segment which should be eliminated because of legal and ethical reasons and a potential adverse reaction by stakeholders is the consideration of race, religion, and nationality. The supplier standards and user status may be out of control for the company. The company may not also be able to move to all cities and states, and this would, therefore, be limited to a few areas. The segments which fit the company all the behavioral and attitudinal facts save for supplier standards. The behavioral and attitudinal factors are the most attractive due to the competition already available. The geographic is the second, and the demographic is the least in terms of attractiveness.