Pre and post segmentation of consumers Anne C. Bech, Consumer Insight

Transcription

1 Targeting different consumer groups XV Nordic Workshop in Sensory Science on the 22 nd of May 2013 in Helsinki, Finland Pre and post segmentation of consumers Anne C. Bech, Consumer Insight 1

2 Agenda Pre and post segmentation Segmentation from a holistic perspective Business model Theory Practice with examples Sum up

3 (Osterwalder & Pigneur, 2010)

4 State of the art 2013!!! 4

5 What is segmentation? Market segmentation is the discipline where you segment your market into different and more homogeneous submarkets which respond differently on the marketing parameters Demands for a good segmentation:» Relevant» Identifiable» Accessible» Stable» Useable 5

6 Hypotheses: We need segmentation at two levels: 1) Strategic level: For better understanding of the consumers in order to develop business or social marketing. Strategic analyses and planning of target groups (e.g. regarding overall marketing, development of new products, communication, and more) planning of the research is essential.» Basis for segmentation level and content» Other important information at descriptive level» Sampling» Methods for identification of consumer segments Task identification of consumer segments in a base-line survey post segmentation 6

7 Hypotheses: We need segmentation at two levels: 2) Tactical and operational level For interaction with consumers from target groups to develop better solutions (e.g. products, communication), to evaluate whether your plans are successful or not, and to adjust accordingly no matter whether you are in business or health communication. Task different forms of follow-up surveys - qualitative or quantitative classification to the identified consumer segments pre segmentation, besides confirmation of identified segments. A marketing orientated strategic approach is needed» We need to put more attention to the strategic use of the identified segments by shifting the attention to the quality of the first developed segmentation (post) and to the use of the segmentation as a presegmentation a more knowledge and learning based approach 7

8 Segments and boxes Natural resistance against to be put into boxes Facts Segmentation is simplification One segment does not contain identical items or persons still considerable variation within one segment. Persons in one box are more similar to each other and more different from items in the other boxes on the chosen segmentation parameters not overall 8

9 Planning of a base-line segmentation survey Planning a base-line segmentation include:»objective why?»basis for segmentation level and content What kind of model or variables are we going to use for the segmentation? Other important information at descriptive level - what else do we want to know from the same survey objective and use of results?»sampling»methods for identification of consumer segments 9

10 Different basis for segmentation Value segmentation e.g. Schwarts value segmentation Learning style segmentation e.g. Dunn & Dunn Information processing style central route versus peripheral route Health status e.g. Body Mass Index Neophobia scale Food related lifestyle segmentation Behavioural segmentation e.g. Ottesens Market map knowledge, use and preferences Demographic segmentation women years with children Geographic segmentation Danish versus Italian market and more 10

11 Common basis for market segmentation Direct observable (few variables) Indirect observable (many variables) General (regardless of market and products Geographic (State, region, city size, density, climate) Demographic (age, gender, income, edu., rel., ethnicity, occupation, family life cycle) Socio-demographic social class General psychographic (values, lifestyle, personality) Specific (related to market or product) Behaviour (frequency, intensity, regularity) Usage situation Loyalty Product related psychographic Attitude (pos neutral negative) Epidemiological (risk factor status) Readiness stage (stages of change) Benefits motives Perceptions Preferences 11

12 Means end chain approach: How we link product characteristics to consumers mind Goal direction route Hierarchical categorisation process Values Values Consequences Consequences Attributes Attributes 12

13 Lifestyle Values Lifestyle A system of individual differences in the habitual use of certain declarative and procedural knowledge structures on both routes intervene between abstract goal states (personal values) and situation-specific product perceptions and behaviours. Behaviour This relationship between values, lifestyle and behaviour is tested. 13

14 Lifestyle: The relationship between values, lifestyle and behaviour is tested Five domains Ways of shopping Cooking methods Quality aspects Consumption situations Purchasing motives (Scholderer et al. 2002)

15 Food related lifestyle segmentation Abstract cognitions Life values Purchasing motives Ways of cooking Consumption situations Concrete cognitions Quality aspects Behaviour Ways of shopping 15

16 Planning of base-line segmentation survey Planning a base-line segmentation include:»basis for segmentation level and content What are we going to use for the segmentation??? Other important information at descriptive level What else do we want to know from the same survey?»sampling Random considerable size of survey»methods for identification of consumer segments Latent class analyses 16

17 Segmentation: Easy to localise but soft Difficult to localize but substantial 17

18 Segmentation best solution: Describe your segments You have to decide on the appropriate number of segments Statistical fit support the process 18

19 Follow up surveys All possible kind of qualitative and quantitative surveys Classification» A sub set of best questions» Adaptive Bayesian Classification from pc/internet best question is selected based on the answers from the respondent» Classification along the original survey subset or full set of questions 19

20 Examples Food related lifestyle segmentation and other... 20

21 Organic archetypes from 2007 to 2013 post segmentation Name The idealist 17 % 20 % 20,4 % 18 % The hedonist 30 % 19 % 21,3 % NI The individualist 17 % NEW The sceptical 15 % 26 % 14,7 % 15 % The security seeking The health oriented The traditional The discount oriented The convenience oriented 23 % 25 % NI NI 27,2 % NEW NI 12 % NEW 15 % 10 % NI NI 16,3 % NEW 19 % The uninvolved 19 %

22 Organic archetypes from 2007 to 2013 Økologisk Landsforening

23 Classification: simple with three questions Combination Do you like to cook? Do like to try new food Are you willing to pay more for organic food Segment Adventurous Modern Traditional Traditional Adventurous Modern Traditional Less involved 23

24 Basic questions: Question 1 I like to cook. 2 I enjoy to try food I haven't tried before. 3 I'm willing to pay more for organic food. 4 I like to try new recipes. 5 It is enjoyable to try recipes from other countries. 6 It is mainly my responsibility to buy food. 7 To a great extent, it is my responsibility to cook. 8 It is important to me to eat healthy food. 9 I try to avoid additives in food. 10 I do not see any reason to buy organic food. 24

25 Brief history of Food related lifestyle segmentation Developed at the Mapp Centre during the nineties» Tested for cross cultural validity» Used in many surveys and countries» Further developed and used by market research agencies Jysk Analyse GFK Danish Organic Association Somewhat similar approaches in other countries also company specific solutions 2010 Consumer Insight a pre segmentation model» Still in use also for research purposes 25

26 Consumers are different 26

27 But we have something in common with some other people regarding food: The Food Related Lifestyle The adventurous What quality we value, how we shop and cook, eating habits and our motives and interests some are very interested, knowledgeable and experienced - and some don t care a lot about food The modern The less involved The more traditional 27

28 Target group triangle The most adventurous NEW FOODS The modern The less involved The more traditional CONSERVATIVE/TRADITIONAL 28

29 Food Related Lifestyle: model with four segments Different consumer segments implicate that the target group shrinks or increases depending on the product and marketing The most adventurous The most adventurous : Enthusiastic and love to cook Interested in news, health and organic food Most critical Willing to pay for quality The less involved: Low interest in cooking, prefer not to or do it the easy way. Low interest in health and organic food Most pragmatic and convenienceoriented More traditional than news oriented The less involved News The modern The more traditional The modern: Like to cook Are interested in new food Have low interest in health and organic food Pragmatic Price sensitive The more traditional: A great part love to cook Interested in health Some interest in organic food Traditional Price sensitive 29

30 The most adventurous: Many retailers are very interested in this very attractive and demanding group of customers. In Denmark organic food and wines are used to attract them, they also stop by local producers and by local foods. They go hunting for news. Appreciate organic food, health and quality. Love to eat fish, fruit and vegetables and perhaps a glass of wine also. They are more willing to pay. They love to cook and master both simple and complicated dished. The most adventurous 30

31 Good food how difficult can it be? I m not a fanatic buyer of organic food Artikel af Jette Deleuran og Vibeke Lehn, foto af Jes Buusmann, Alt for Damerne nr

32 The less involved They shop at convenience stores and they do not store so much food at home. They prefer convenience food and prefer not to cook. Do they live alone a meal in the canteen is perfect. Cooking is not one of their interests and they do it of necessity. They are not so experienced and find it difficult. It is difficult to make the food taste good in stead they buy taste. The less involved 32

33 Do you know this guy? Foto: Mie Brinkmann Politiken May

34 FRL: global & food safety China: 3 segments based on 479 participants» Concerned 45 %» Uninvolved 33 %» Traditional 21 % 45 % 33 % 21 % (Grunert et. al 2011, Appetite 56, pp ) 34

35 Changes of archetype? Yes this is possible» It takes time» Change in attitude» Change in knowledge» Change in behaviour also based on learning No» not from day to day change in behaviour is not a change in archetype» You are not a different person or archetype when performing different behaviours from day to day the circumstances are different 35

36 ELM elaboration likelihood model Elaboration Likelihood Model According to how we handle information in our brain by two routes depending of situation/person Key factors for situation: Motivation involvement Ability - Knowledge Central route Slow / high cognition most likely by: High involvement Greater knowledge The process support it self Peripheral route Fast / impulsive most likely by: Low involvement Less knowledge Petty, R., & Cacioppo, J. (1986). Communication and persuasion: The central and peripheral routes to attitude change. Springer-Verlag: New York. 36

37 Valuable segmentation for: Communication to the same or different target groups» Messages designed for one or both information processing routes, e.g. Label / out-door versus Internet pamphlet Face book versus blog» Knowledge related to other segmentations 37

38 Branding and marketing of food 38

39 Strategy Three generic marketing strategies:» Undifferentiated One size fits all» Differentiated Different solutions for different target groups» Focused /niche One solution for a smaller target group 39

40 Sum up Many different approaches for segmentation. As basis for segmentation use e.g. a categori specific psychographic approach as Food related lifestyle:» Not mixed with values and/ or behaviour (depending variable)» But include other relevant variables as descriptive / action oriented For base-line use random sample of relative large sample size» Bias of panel data e.g. younger and more involved participants. Segmentation method latent class analysis. Build up internal capabilities for market research or use multiple external sources not just one market research agency. A company specific solution might not be needed, it is an investment and sharing might be an alternative solution. Use the segmentation in follow up surveys and learn to know the consumers representing the segments, make personas, scenarios, involve the consumers. 40

41 References Grunert, K.G.; Brunsø, K.; Bredahl, L. & Bech, A.C. (2001). Food-related lifestyle: A segmentation approach to European food consumers. In Food and people and society: a European perspective. Eds L. Frewer, E. Risvik, and H. Schifferstein, pp Springer Verlag, Heidelberg. Grunert, K.G. et al. (2011). Is food-related lifestyle (FRL) able to reveal food consumption pattern in non-western Cultural environments? Its adaptation and application in Urban China. Appetite, 56, pp Kohli, A. K. & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing 54 (April), Organic archetypes (2007). Økologiens hus Osterwalder & Pigneur (2010). Business Model Generation. Self published, USA Ottesen, O. (2005). Strategisk ledelse av virksomhedens markedskommunikasjon. Handelshøjskolens Forlag, Kbh. Petty, R., & Cacioppo, J. (1986). Communication and persuasion: The central and peripheral routes to attitude change. Springer-Verlag: New York. Poulsen, C.S. (1997). Nyere forskning i segmentering og segmenteringsmetoder. I Ledelse 97, editor E. Johnsen. Børsens ledelseshåndbøger. Børsens forlag, Denmark. Scholderer, J, Brunsø, K. & Grunert, K.G. (2002). Means-End Theory of Lifestyle Replication in the UK. Advances in Consumer Research. 29, pp

42 The value of segmentation is not in the identification of the segments it is in the continuous strategic, and daily use of the segments A good segmentation is like a crystal ball Thank You for your attention! 42