Store Visit: Category Segmentation Examples
September 14, 2021
The following examples are from previous students’ submissions. It is important for each of you to do this exercise individually so that when you come together as a team later on you will have different perspectives to consider. This will help you to determine what you collectively think is the best way to think about the category and your brand. If you all did it the same way you would miss the diversity of thinking that would ultimately be most beneficial to you.
There is no absolute right or wrong. The point is to think strategically about your brand, the category, the competition, and how the CONSUMER might view the category in making a purchase decision.
EXAMPLE 1
USE OF LINE EXTENSIONS TO HELP SEGMENTATION OF CATEGORY
CATEGORY IS TEQUILA. BRAND IS JOSE CUERVO.
Tequila SubSegments
3 Key Brand names in this Segment including your brand
Silver
Jose Cuervo Especial; Patron Silver; Don Julio 1942
Hard Seltzer
Jose Cuervo Playamar; Volley; Cultwater Tequila Soda
Tequila Mixer
Jose Cuervo Margarita Mix; Casamigos Cocktail Mix; Davinci Margarita Mix
Pasta Sauce SubSegments
3 Key Brand names in this Segment including your brand
No Added Sugar Sauces
Rao’s Marinara Sauce,
Hunt’s No Added Sugar Spaghetti sauce,
Prego Tomato sauce No Sugar Added
Lower Sodium
Rao’s Sensitive Marinara Sauce,
Prego Lower Sodium Sauce,
Hunt’s No Added Salt Sauce
Flavor
Rao’s Alfredo Sauce
Ragu Alfredo Sauce
Barilla Tomato & Basil Sauce
CATEGORY IS PASTA SAUCE. BRAND IS PREGO
EXAMPLE 2
CATEGORY IS WOMEN’S FRAGRANCES. BRAND IS CHLOE.
BRAND EXISTS IN ONLY ONE SUB-SEGMENT
Women’s Fragrance Product Segment
3 Key Brand names in this Segment including your brand
Floral Scent
Valentino (Donna Born In Roma Eau de Parfum)
Giorgio Armani (Si Fiori Eau de Parfum)
Lancôme (La Vie est Belle Eau de Parfum)
Fresh Scent
Chanel (Chance Eau Tendre, Eau de Toilette)
Marc Jacobs (Daisy Eau So Fresh Eau de Toilette)
Chloe (Chloe Eau de Parfum)
Citrus Scent
Chanel (Coco Mademoiselle)
Tory Burch (Bel Azur Eau de Parfum)
Tom Ford (Venetian Bergamot Eau de Parfum)
SAME CATEGORY BY AGE
Women Segmented by Age
3 Key Products including your brand
Young Adult
Prada Candy
Lucky
Chloe
Middle aged
Chloe
Prada
Coach
Mature
YSL
Chanel Coco
Chloe
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