Segment Profile Examples

 

Examples of a Segment Profile

In this example we will provide a profile for two different market segments, using the range of factors listed in the discussion of segment profiles, for two market segments that could be developed for a chain of fitness centers.

 

‘Young and serious’

market segment

‘Losing it’

market segment

KEY MEASURES    
  • Segment size measures

Estimated at around 10,000,000 people across the country

Estimated at around 15,000,000 people across the country

  • Segment growth rate

Tends to be stable, with little evidence of growth

A steadily growing segment, increasing by around 5% per year

  • Proportion of the overall market

10% of all consumers

15% of all consumers

CONSUMER BEHAVIOR    
  • Main consumer needs

Want to get into great physical shape

Looking for state-of-the-art facilities, conveniently located, like to mix with other patrons

Want to lose weight

Need emotional support and personal training, happy with a limited range of fitness machines, often prefer private training situations

  • Usage level

High proportion of heavy users – go to a fitness center several times a week

Limited usage, as some consumers are embarrassed by their weight and prefer not to go to fitness centers


  • Level of brand loyalty

High level of switching behavior over time, may trial a new fitness center every 1-2 years, due to influence of friends or for something different

Once these consumers are comfortable and committed, they display a high degree of loyalty

  • Price sensitivity

Price is a reasonably important factor and different price deals are important

Less price sensitive, as other selection factors (e.g. ‘feeling welcome’) are more important

  • Product involvement levels

Low-medium, as they often switch/trial new facilities they spend less time on the product decision process

Medium-high, as they are not high usage consumers, it is often a purchase that they lack experience with

  • Retailer preferences

Like well-known chains with multiple outlets that have convenient locations

Preference for smaller, independent fitness centers that are less crowded and have an older age demographic

DESCRIPTION    
  • Geographic spread

Fairly widespread, but the heaviest users in this segment tend to live or work in busy cities

Broad spread, often living in city suburbs and even in rural areas

  • Demographic description

Younger (aged 18 to 30 years), well educated, usually employed in office or skilled work, upwardly mobile, single or in a relationship

Middle age group, anywhere from 30 to 60 years, mix of middle-class occupations, usually married and many have children at home

  • Psychographic description

Quite social, travel goals, enjoy sport, environmentally concerned, focused on future goals and success

Life’s priorities are career and/or family, tend to be quite time-poor, probably less social in a fitness center situation as a result


COMPETITION/COMMUNICATION
   
  • Main competitive offerings

Large fitness center chains heavily target  this segment

Some specialist gyms predominately target them as well

Growing number of ‘boot camp’ style fitness offerings

Various sports should be considered indirect competitors

A number of specialist fitness centers have targeted this group

Some female-only chains appear to focus here as well

Traditionally, this segment has been targeted by weight loss centers (who offer counseling services, rather than equipment)

Consumers in this segment are more likely to purchase home-gym equipment

  • Main media choices

Big users of internet

Major consumers of reality TV shows

Active users of Facebook and other social media

More likely to engage with mobile phone marketing communication

Magazine readers

TV shows like ‘The Biggest Loser’ and cooking shows have a good reach

Word-of-mouth promotion is effective in this segment

Outdoor advertising has some impact

 

Once the segment profile has been developed, as per above, the firm is then in a position to evaluate the attractiveness of each segment and select target market/s most appropriate for them. As you can see, the information contained in the segment profile would then be very useful for the firm in developing their competitive strategy, positioning and subsequent marketing mix (as part of the overall STP process).