A market
segment is a group of individuals, groups or organizations sharing one or more
similar characteristics that cause them to have relatively similar product
needs and buying characteristics (Renssen, 2016). Amstel aims for several market segments. The first market segment
is age. Heineken, which is the manufacturer of Amstel, aims for people from the
age of 18 to 34 (Balbi, 2013). When people turn 18
it becomes legal to drink alcohol, so it is logical that this is the minimum
age where Amstel focusses on. The most beer is consumed between 18 and 34,
because people are young and most people don’t have children yet or the
children are still very young, so they can still drink alcohol. Once the
children get older, the parents want to be a good role model and will drink
less beer. So the family life cycle is also a market segment.
Another
segment is gender. As you can see on television and in advertisements, beer
focusses on men because they are the main beer consumers. There will be no beer
advertisements in a women magazine, because they are not focusing on women.
Also in beer commercials, no matter which brand, you will always see men
drinking beer and not women.
Religion is another market segment. Some religions do not allow people to drink
alcohol. Islam and some Christian sectors do not allow alcohol, so it would be
useless to try and sell them Amstel. Amstel does not specifically focus on
non-religious people, but they do focus on the people that are non-religious
and religious people that are allowed to consume alcohol.
The region and loyalty are other market segments, which are linked to each
other. As you can see on the figure, Amstel is most popular in the northern
part of the Netherlands. The 3 provinces that consume the most Amstel are North
Holland, Friesland and Drenthe. It is important that these customers stay loyal
to the brand Amstel, because they are their main source of income. They will
focus on their loyal customers to make sure they won’t switch to other brands.
The product
positioning refers to the communication from your business to the customers.
The 5 P’s are used to make this clear. The first P is product, which is what
you are going to sell to your customers. For Amstel the products are the
regular Amstel, Amstel Radler, Amstel Bock etc. The second P is price, which
focusses on the price of the Product and that of the competitors. Amstel wants
to keep their prices low so it is attractive for customers to buy. The third P
is Place which focusses on where you sell your products, for example in
restaurants and supermarkets. The fourth P is promotion and focusses on the
advertisement of the product. The last P is people and focusses on the main
target audience of the product. For Amstel this is men between the 18 and 34.
Effective
segmentation has several criteria. The first criteria is the homogeneity of
segments. This means that the people in the target segment should have similar
product and service needs. The second criteria is the heterogeneity between
segments, which means that people in different segment should have different
wants and needs. Accessibility is the third criteria, so the market segment
should be easy to reach, especially with promotion and distribution. Another
criteria is stability, so the segments
are around long enough to take action (Renssen, 2016). Measurable is
another criteria, and it means that the size of the market segment should be
measurable. Substantial is also a criteria, and it means that the market
segment should be large enough to get attention from the business.
The market
segments where Amstel aims for are age, life cycle, gender, religion, region
and loyalty. The criteria of effective segmentation are met for these segments.
The market segment age, life cycle and gender are homogeneous, because the men
from the age of 18 to 34 consume the most beer, so they are similar in their
needs. Heterogeneous is also met, because the needs of people in for example
the market segment age have different wants and needs than people in the market
segment religion. Also the segments are accessible through social media and
television.
Bibliography
Balbi, F. (2013, January 21). Heineken. Retrieved
November 23, 2016, from Slideshare:
http://www.slideshare.net/fbalbi/heineken-16104483
Biernet. (2016, February
16). Aandeel biermerken per provincie. Retrieved November 23,
2016, from Biernet:
https://www.biernet.nl/algemeen/weetjes/aandeel-biermerken-per-provincie
Renssen, D. S. (2016). Marketing Env2 Wk2 Ch7 Market
Segmentation. Retrieved November 23, 2016, from Blackboard: https://leren.saxion.nl/webapps/blackboard/execute/content/file?cmd=view&content_id=_1477773_1&course_id=_30261_1&framesetWrapped=true
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