In the industrial world, markets are parted into homogenous groups based on some associated distinctiveness. These markets consist of, geographics, demographics, psychographics, situations, benefits-sought, and behavior or custom patterns. Demographic segmentation is based on family, age, income, education, occupation, and ethnicity. (Weinstein, 1986)
This paper highlights the importance of demographic segmentation for Ed Hardy Clothing Ltd. The company must follow demographic segmentation as its sales depends on varied demographic factors such as the age of the consumer, the family size i.e the size of the family would decide upon the capacity of the refrigerator needed. The most important demographic factor, affecting the process of segmentation is the Income (www.edclothingshop.com). Every consumer would buy a product depending on his income level.
Discussion
Ed Hardy Clothing has segmented its market into two distinct segments. The first distinguishable segment is hardcore athletes. These are people who live and breathe to push their body harder and harder in aerobic activities. This market segment is present in Ashland, however, they will not be the largest source of revenue as they already have most of the pieces of clothing for their activities as they have been doing it for a long time (www.edclothingshop.com).
They are more likely to pick up a piece here and there. The second market segment is the newbies, these are people who are relatively new to aerobic activities. While their purchases may not be quite as frequent, their number of potential customers is higher and they will have larger ticket amounts.
Target Market Segment Strategy
The strategy for segmenting the market is based on the fact that the two different groups have distinct buying patterns. The hardcore athletes have a decent amount of sport specific clothing. When they shop for new stuff it is generally a replacement piece here and there (www.donedhardydiscount.com).
They are typically buying the latest and greatest on the market. Although they do not need more products it is this group that most appreciates the subtle improvements that the new products bring. They therefore are likely to buy a piece or two if the product shows improvement in design over what they currently own (www.edclothingshop.com).
This differs from the newbies who are new to aerobic activities, or at least to the level that they currently participate at. This group is more likely to make less frequent but larger purchases. This group is particularly exciting because it allows Ed Hardy Clothing to have a significant impact on the outfitting of these people (www.donedhardydiscount.com).
Industry Analysis
Ed Hardy Clothing participates in the men's retail clothing industry, specifically in the outdoor aerobic sports clothes niche. The aerobic sports clothing market is a $765 million dollar industry. Ed Hardy Clothing is well poised in Ashland, Oregon, a sports minded town. Athletes can participate in any number of activities, all within a 20 minute drive from Ashland. Additionally, people can participate in both fall and winter (snow) activities at the same time (www.edclothingshop.com).
Products in this industry are purchased either through a ...