Question

In: Operations Management

Gordon Controls, Inc. Gordon Controls, Inc., provides control and automotive systems worldwide. The Controls Division offers...

Gordon Controls, Inc. Gordon Controls, Inc., provides control and automotive systems worldwide. The Controls Division offers mechanical and electrical systems that control energy use, air-conditioning, lighting, security, and fire safety for buildings. The company also provides on-site management and technical services for customers in a range of settings, including manufacturing installations, commercial buildings, government buildings, hospitals, and major sports complexes. While serving a full range of market sectors from manufacturers to educational institutions, Gordon Controls has developed a suite of products and services for large retail chains, including department stores, discount stores, grocers, and “big box” supercenters. Most major shopping malls in North America are customers. Gordon Controls’ products include a variety of control panels that manage HVAC equipment, transportation, airflow, lighting levels, energy consumption, and air quality— and even determine how many customers enter and exit a store. Behind the control systems is a Remote Operations Center for 24-hour monitoring: Many problems can be diagnosed and corrected online. Gordon Controls has recently developed a product and service solution that targets the convenience store industry. The convenience store controller smartly manages a store’s lighting, refrigeration, and HVAC, alerting store personnel to malfunctions. Building on its deep experience in working with large grocery chains, Gordon Controls can demonstrate to a convenience store chain how the system reduces energy costs, prevents food spoilage, improves occupant comfort, and lowers the cost of maintenance.

Explain how a company ( Gordon Controls ) will deliver and support this product to the new customer segment(s) to ensure its success is ongoing. (ie. What channels they will use) a. What channels will they use to fulfill and service this product ?

Solutions

Expert Solution

A ton of factors contribute to providing a competitive and high-quality customer experience but knowing your customers and how to reach them is the vital first step. This is where customer segmentation comes in.

You may also hear customer segmentation be called ‘clustering’. The tools and techniques used to find the customer segments are called clustering algorithms. Customer segmentation is all about grouping customers into segments based on shared qualities or characteristics

Benefit Segmentation is similar to behavioral segmentation in that it focuses on customer buying behavior, but with a particular focus on why. For example, let’s say you sell sports complexes

You may be able to segment your customers based on what benefits they are seeking from your product in the following ways.

  • Runners: Comfort and longevity will be a priority.
  • Professional athletes: Likely looking for performance and comfort over everything else.
  • Fashion sports shoes: These may be more popular with college students and other young people.
  • Bring Old Customers Back

    By segmenting your customers, you can easily identify one-time customers and design a strategy that will bring them back. You may be able to offer them a large discount or a free item if they buy a product over a certain price.


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