mkt 450: market segmentation presentation for sperry top sider report 10 30 09
DESCRIPTION
I collaboratively developed a market segmentation presentation for Sperry Top-Sider during my MKT 450 (Buyer Behavior and Market Analysis course).. Voted the team leader, and guided my team to first place.TRANSCRIPT
Brad Herndon Catherine Glynn Jorge Galindez Luke Schenkel
Overview
• Market Situation Analysis
• Consumer Market Segmentation
• Lifestyle (Psychographics) Segmentation
• Benefit Segmentation
• Consumer Decision Process
Market Situation Analysis
Brad Herndon
Footwear Industry
• Includes about 100 manufacturers; 1,500 wholesalers; 30,000 retail outlets
• Total revenue of $25 billion
• Manufacturing overseas
• Highly competitive, constant change to meet fashion demands
Sperry Top-Sider
• Founded in 1935 by Paul Sperry
• Inspired by his dog, Prince, and his ability to gain traction on wet surfaces
• Developed a “boat shoe”
Sponsorships
• Sperry Top-Sider is partners with various organizations
• Teams, competitions, and non-profits
Collective Brands, Inc.
• Subsidiary brand of Stride Rite Corporation
– Owned by Collective Brands since 2007
• In 1979, Stride Rite Corporation purchased Sperry Top-Sider for $5.7 million
Indirect Competitors
Sperry Top-Sider Shoes
• Nautical Casuals
• Gold Cup Collection
• Adventure/Performance
• Weather Gear
• Sandals
Annual Industry Sales
Industry Market Share
Table 2: 2008 Industry Market Shares12, 13
Company Market Share in %
Nike 12.00
Adidas AG 9.00
Jones Apparel Group, Inc. 3.00
Collective Brands, Inc. 2.80*
Sketchers USA, Inc. 2.50
The Timberland Company 1.50
Wolverine World Wide, Inc. 1.30*
* Indicates Estimate
Industry Market Share
Industry Market Share Zoom View
Company Sales: Collective Brands, Inc.
* Sperry was not a subsidiary during these years
Table 3: 2008 Collective Brands, Inc. Yearly Sales14
Year Sales ($ Millions)2000* 2,785.32001* 2744.72002* 2736.12003* 2662.42004* 2656.52005* 2665.72006* 2796.72007 3035.42008 3442.0
Company Sales: Collective Brands, Inc.
Current Newsworthy Items
• Renewal of partnership with U.S. Sailing team
• 75th anniversary
– Expansion
Consumer Market Segmentation and
Lifestyle Segmentation
Jorge Galindez
• Country Club Carla and Colin
• College Chris and Katie
• Competitive Sailors Simon and Sarah
• Retired Rick and Rachel
• Young Professionals Pete and Patricia
Country Club Carla and Colin
Country Club Carla and Colin• Work: Professional career in business, medicine, law, or
architecture
• Social Events: Country club events, dinner parties, office parties
• Club Membership: Country Club, yacht clubs, books, card clubs
• Family: High Family values, very family oriented
• Products: Like high quality products regardless of cost
• Vacation: Sailing destinations, Europe, Caribbean, California
• Age: 30-55
College Chris and Katie
College Chris and Katie
• Work: Full-time student; work, internships, co-ops• Social Events: Parties, bars, sporting events• Club Membership: Fraternities and sororities, other on-
campus club, gym membership• Family: Close with family but usually just see them on school
breaks• Products: Concerned with quality and style but have a tight
budget• Vacation: Spring break skiing or at a party beach location,
study abroad, road trips• Age:18-22
Competitive Sailors Simon and Sarah
Competitive Sailors Simon and Sarah
• Work: Sailing instructors, jobs when they have free time; teachers, professors
• Social Events: Spending time at the yacht club, post competition events
• Club Membership: Yacht club, sailing clubs, gym membership
• Family: family oriented but spend a lot of time away, just married or single
• Products: Very brand loyal to top performing products like outdoor gear, want quality
• Vacation: Sailing along the coast to different climates, going to islands
• Age:18-45
Retired Rick and Rachel
Retired Rick and Rachel• Work: Recently retired professionals• Social Events: Getting together with friends and family for
dinner parties, going to plays and orchestra concerts, card clubs, sailing outings
• Club Membership: Country club, bridge club, rotary club• Family: Very family oriented, enjoy traveling to visit kids and
grandkids• Products: Very brand loyal, more concerned about comfort
than style• Vacation: Travel all around the U.S. and Europe, prefer
warmer climates• Age: 60 and over
Young Professionals Pete and Patricia
Young Professionals Pete and Patricia
• Work: Young professional
• Social Events: Movies, concerts, parties, dinner parties, going out to bars, sporting events, alumni functions
• Club Membership: Country club, gym memberships
• Family: Live on their own, but still close to family
• Products: Enjoy brand names
• Vacation: Trip with old college or high school friends, weekend road trips
• Age: 23-35
VALS 2™ NETWORK LIFESTYLE (PSYCHOGRAPHIC) SEGMENTATION
LegendCountry Club Carla and ColinCollege Chris and KatieRetired Rick and RachelCompetitive Sailors Simon and SarahYoung Professionals Pete and Patricia
HIGH RESOURCESACTUALIZERSSelf-Confident.
Enjoy the "finer things."Receptive to new
products and technologies.Skeptical of advertising.
Frequent readers of a wide variety of publications.
PRINCIPLE ORIENTEDFULFILLEDS
Value knowledge.Little interest in
image or prestige.Like educational and
public affairs programming.Read widely and often
BELIEVERSTraditional.
Family oriented.Buy American.
Slow to change habits.Look for bargains.Watch TV more
than average.
STATUS ORIENTEDACHIEVERS
Image-conscious.Relatively affluent.
Attracted to premiumproducts.
Average TV watchers.
STRIVERSImage-conscious.
Limited discretionary incomes,but carry credit balances.
Spend on clothing andpersonal-care products.Prefer TV to reading.
ACTION ORIENTEDEXPERIENCERS
Action-oriented.Follow fashion and fads.
Spend much of disposable income on socializing.
Buy on impulse.Listen to rock music.
MAKERSSelf-sufficient, hands on.
Shop for comfort,durability, value.
Unimpressed by luxuries.Read auto,
home mechanics,fishing magazines.
STRUGGLERSRestricted consumption.Concerned with securityand safety. Brand loyal.
Trust advertising.Watch TV often.
LOW RESOURCES
PRIZM CLUSTER PROFILES(Potential Rating Index by Zip Market) Claritas Partners, L.P.
High Resources Low Resources
Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5
Blue Blood Estates
God’s CountryThe
CosmopolitansSimple
PleasuresYoung and
Rustic
Winners CircleSuburban
SprawlMiddleburgManagers
Domestic Duos Mobility Blues
Urban Gold Coast
Mayberry-villeTraditional
TimesClose-in Couples
Crossroads Villagers
Country Squires Young DigeratiYoung
InfluentialsBlues Family Thrifts
Money and Brains
Bohemian Mix Greenbelt Sport Heartlanders Bedrock
Upper Crust Upward Bound Up-and-ComersShotguns and
PickupsBig City Blues
Big Fish,Small Pond
Beltway Boomers
Urban Achievers
Suburban Pioneers
Low-Rise Living
Movers andShakers
Kids &Cul-de-Sacs
Boomtown Singles
Multi-Culti Mosaic
Golden Ponds
EliteFast-TrackFamilies
New Homesteaders
Old Glories Old Milltowns
Executive SuitesAmerican Dreams
Big Sky Families
American Classics
Back Country Folks
Brite Lites,Little City
New Empty Nests
White Picket Fences
Red, White & Blues
Urban Elders
Home SweetHome
Pools & Patios Blue-Chip Blues New BeginningsPark Bench
Seniors
Gray PowerKid Country,
USABlue Beginnings City Roots
City StartupsHometown
Retired
Legend
Country Club Carla and Colin
College Chris and KatieRetired Rick and Rachel
Competitive Sailors Simon and Sarah
Young Professionals Pete and Patricia
PRIZM CLUSTER LIFESTAGE GROUPS & SOCIAL GROUPS
SEGMENTNAME
BLUE BLOOD ESTATES
Country Club Colin and Carla
YOUNG INFLUENTIALSCollege Chris and
Katie
GRAY POWERRetired Rick and
Rachel
LifestageGroup
Accumulated Wealth Young Achievers Conservative Classics
SocialGroup
Elite Suburbs Middleburbs Middleburbs
DemographicDescription
Wealthy Middle Age Families
Midscale Younger Singles
Midscale Mature Singles/Couples
Urbanicityand Tenure
Suburban Homeowners
Suburban Renters Suburban Homeowners
PredominantAge(s)
35-64 <35 65+
Employment ProfessionalProfessional, White
CollarProfessional, White
CollarEducation College Graduate + High School/College High School/College
Race/Ethnicity White, High Asian White, High Asian Mostly White
Preferences
Took a golf vacationEat at fast food picked by kids
Fortune MagazineMajor League Soccer
Acura SUV
Buy high-end computers
GQ MagazineThat 70's Show TV
Mazda Protégé
Go to museumsOwn a vacation/weekend
homeWheel of Fortune TV
Mercury Sable
PRIZM CLUSTER LIFESTAGE GROUPS & SOCIAL GROUPS (Continued)
SEGMENTNAME
GREENBELT SPORTCompetitive Sailors
Simon and Sarah
UP –AND-COMERSYoung Professionals
Pete and Patricia
LifestageGroup
Young Achievers Young Achievers
SocialGroup
Country Comfort City Centers
DemographicDescription
Midscale Middle Age Mix
Midscale Younger Mix
Urbanicityand Tenure
Town/Rural Homeowners Second City Renters
PredominantAge(s)
25-54 <35
EmploymentWhite & Blue Collar,
FarmingProfessional, White
CollarEducation High School/College High School/College
Race/Ethnicity Mostly White White, Asian
Preferences
Go mountain bikingBuy self-help books
Self MagazineSubaru Forester
Use internet for job search
Shop at Ann TaylorMitsubishi Eclipse
Benefit Segmentation
Catherine Glynn
PRODUCT POSITIONING MAPPerformance Boat Shoes
PRODUCT POSITIONING MAPStylish Casual Shoes
BENEFITS OFFERED BY BRAND
BRANDStyle Quality/
DurabilityPerformance/
Non SlipBrand
RecognitionComfort
2 3 2 2 2
3 4 3 3 3
5 4 5
5 5 1
4 4 1 4
1 2 5
1 1
MARKETSEGMENT
Style Quality/ Durability
Performance/ Non Slip
Brand Recognition
Comfort
Country Club Carla and
Colin
1 3 5 2 4
College Chris and Katie
2 4 5 1 3
Retired Rick and Rachel
4 2 5 3 1
Competitive Sailors Simon
and Sarah5 2 1 4 3
Young Professionals
Pete and Patricia
2 3 5 1 4
BENEFITS SOUGHT BY MARKET SEGMENT
TARGET MARKET DISCOVERY GRIDBENEFITS SOUGHT BY TARGET MARKET
BRANDand
TARGETMARKET
Style Quality/ Durability
Performance/ Non Slip
Brand Recognition
Comfort
2 3 2 2 2
Target MarketCountry Club
Carla and Colin
2 3 5 1 4
High quality sailing shoe that is durable and stylish from a well-known
brand
Comfortable shoe that I can wear out on my boat and out on
the town
Quality shoes from a
recognizable brand that I trust
The shoe allows me to be
confident in my appearance
whether I am out on my boat or out on the
town
THE BENEFIT CHAINWOMEN’S AND MEN’S CASUAL AND PERFORMANCE
SHOESCountry Club Carla and Colin
THE PRODUCT
FUNCTIONAL BENEFIT
PRACTICALBENEFIT
EMOTIONALPAYOFF
BENEFIT SEGMENTATION
MARKET SEGMENT OVERLAPWOMEN’S AND MEN’S CASUAL AND PERFORMANCE
SHOES
Retired Rick and Rachel
37%
Country Club Carla and
Colin
24%
Young Professionals Pete
and Patricia
19%College Chris and Katie
17%
Competitive Sailors Simon and Sarah
3%
MARKET SIZE AND SALES POTENTIAL
Total Market (ages 18 – 74): 207,337,573 peopleSize of each market segment for casual and performance shoes:
Country Club Carla and Colin 24%College Chris and Katie 17%Retired Rick and Rachel 37%Competitive Sailors Simon and Sarah 3%Young Professionals Pete and Patricia 19%
TOTAL 100%
Users: 80% = 39,808,814 .0017 Sperry Top-Sider market share (.17%)x 39,808,814 User Totalx 1 Number of pairs per yearx $90 Price per pair of shoes $6,090,749 Dollar sales per year
Total: $6,090,749 Total sales potential for target market “Country Club Carla and Colin”
Target Market: Country Club Carla and Colin = 49,761,017
Consumer Decision Process Model
Luke Schenkel
Consumer Problem: Exposure
• Problem
– Country Club Carla and Colin are not being exposed to company sponsored advertising
• Evidence
–Word-of-mouth is most common form of exposure
– Advertising is very limited
– Advertisements rarely appear in magazines that Country Club Carla and Colin favor
Consumer Problem: Comprehension
• Problem
– Country Club Carla and Colin do not fully understand the performance benefits offered by the Sperry Top-Sider brand
• Evidence
– Rarely exposed to advertisements
– Purchase mostly for style not performance
Marketing Mix Solution: Exposure
• Potential Solutions
1. Advertise in publications that Country Club Carla and Colin favor
2. Make sure Sperry footwear is sold where Country Club Carla and Colin shop most often
3. Sponsor non-aquatic sporting events
Marketing Mix Solution: Comprehension
• Potential Solutions
1. Focus advertisements around the “Sperry Story”
2. Pay for retailers to provide education and incentives to sales representatives
3. Include “Sperry Story” with purchases
Strategic Opportunity Matrix
PRESENTPRODUCT
NEWPRODUCT
PRESENTMARKET
Market Penetration StrategyMarketing research
Product differentiationGain market share
Lowest risk“Product Positioning”
Product Development StrategyMarketing research
Product developmentProduct differentiation
Medium risk“Flanker Brand”
NEWMARKET
Market Development StrategyMarketing research
Market segmentationProduct differentiation
Heavy promotionMedium risk
“Market Segmentation”
Diversification StrategyMarketing research
Market segmentationProduct differentiation
Mergers, acquisitions, joint venturesHighest risk
“Diversification”
Conclusion
• Market Situation Analysis
• Consumer Market Segmentation
• Lifestyle (Psychographics) Segmentation
• Benefit Segmentation
• Consumer Decision Process