Question

Geographic segmentation: Geographic segmentation is done based on variables like city, country, or region. In the case of Kathmandu, we will select the city or places which are tourist destinations and also host adventure sports.

Demographic segmentation: Demographic segmentation is used to divide the market on the basis of demographic variables like age, gender, ethnicity, etc. we will select Age variable for Kathmandu as the product is mainly used by people of certain age groups.

Psychographic segmentation: Psychographic segmentation is a technique to segment the market in different segments based on psychographic variables like values, interest, or attitude. For Kathmandu, we will select the interest as a variable under psychographic segmentation. Because the interest in travel and adventure sports is a must in the segment for Kathmandu products.

Behavioral segmentation: This technique of market segmentation is based on behavioral variables like purchase behavior. brand loyalty, usage pattern, benefits sought, etc. For Kathmandu, we will select benefits sought as a variable under behavioral segmentation. Benefits sought from travel and adventure products will be considered as segmentation variables for Kathmandu's product because there is certain type of expectation customer has from travel and adventure products.

Question: According to the four variables above, choose a target segment in Australia for Kathmandu. You can use one variable or combine some variables to determine the target segment. Analyze this target segment by applying the five effective segmentation criteria (Measurable, Substantial, Accessible, Differentiable, and Actionable).

Answer 1

Kathmandu products is segmented as per the market of Australia:

According to me the Target Segment for the Kathmandu market will be the Young Buyer's who are having the Interest of exploring different products which are exclusive. So I had chosen two Variables which are Interest & Age.

Now we have two Target segments to analyze by applying the five effective segmentation criteria (Measurable, Substantial, Accessible, Differentiable, and Actionable).

1. Measurable: The 65% of Australian population is between 15 and 64 which shows that the our target segment covers maximum population which simply clarifies that the sales volume will be the maximum in this segment of customers.
2. Substaintial: Substaintial means a market should be large and attractive, the variable which we had chosen successfully completes this criteria because the 65% of customers are our target customers and the Interest in the products attracts the customers in a large number.
3. Accessible: The market segment which had chosen is easily reachable through distribution channels as well as media, so this criteria also fulfills.
4. Differtaiable: The chosen market segment is very diverse becuase of the vast age group which is (15-64) age of people which show different reactions to different marketing mixes.
5. Actionable: This is the testing criteria of the Marketing segment which check the feasibility of the target market.