MARKET SEGMENTATION

Market Segmentation

Executive Summary

Traditionally, the marketers used to use the strategy of market aggregation and this meant that there was one single product that was being produced to the entire population and there was a single marketing campaign that was used to market the product. However, now the market scenario has totally changed and the marketers are focusing more on market segmentation. The need for market segmentation has arisen in the market because of the changing and diverse needs of the customers. Since the customers have now become more intelligent and savvy, they seek for the products that provide them value. Therefore, the breakfast foods industry in the UK has opted for market segmentation in order to differentiate the needs of the customers according to which marketing mix is designed. During this, the companies must consider some important points to ensure success with regards to market segmentation and to combat global competition. This is important because it will enable the companies in the breakfast food industry to attain success with regards to market segmentation.

Market Segmentation

Introduction

Companies that aim to launch new products to plan to enter new markets for the first time can opt for market segmentation. However, they require thorough research to be conducted to ensure success of the product that is being launched. Breakfast foods market in United Kingdom has been discussed in this paper. There are many companies that provide breakfast food items to the customers and Kellogg's is one of them. It is company that is known worldwide because of its global presence. Besides this, there are many other companies that fall in the category of breakfast food market which include Quaker Oats, Nestle UK Limited, Arshads Foods, New Morning Foods Ltd, Dorset Cereals and Kelcone Ltd. Even today, all these breakfast food companies are opting for market segmentation prior to the launch of breakfast cereal or foods. This is the reason the companies attain success.

Facts about Breakfast Food Products in UK

Breakfast cereals are the most important popular form of breakfast for 95% of the households in the United Kingdom. On a weekly basis, there are 87% of the households that eat breakfast while the average number of packets of cereal that is sold to a household is five. The households in which children live purchases seven packs of cereal which those who do not have children purchase four packs of cereal. Moreover, the per capita consumption of breakfast cereal in the UK is second highest in the world.

Purpose of Market Segmentation

Breakfast food companies in the UK are companies that have laid more focus on the market with regards to the needs of the market as well as the trends. Therefore, it is vital to conduct market segmentation to launch the products. This will ensure that the products that have launched meet the needs of the customers (O'Brien & Ford 1998, pp. 289).

Customer Expectations and Trends

The needs, wants and the customers have changed over time. Therefore, the companies in the breakfast food industry ...