Nowadays, consumer’s buying behaviour and wants changed rapidly. It is vital for an organization to segment their market in order to meets the needs and wants of all ranges of the consumers in this competitive market. Market is a place where potential buyers and sellers gathered in order to exchange their goods. (Kotler, et al., 2004, pp.14).
Market segmentation is to divide a market into direct groups which consist of buyers that might require separate products or marketing mixes and classified customers with different needs, characteristics or behavior into groups. (Kotler, et al., 2004, pp.344). It includes geographical segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation.
Geographical segmentation classified the market into different geographical units, for example, nations, regions, states, municipalities, cities or neighbourhoods. (Kotler, et al., 2004, pp.345). For instance, a company can operate in one, few or all areas but only focus to local variations.
Demographic segmentation
Demographic segmentation divide the market into groups on the basic variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class. Demographic segmentation is often be used to distinguish the customer groups because it often associated with the customer’s needs, wants, usage rates, product and brand preferences.
Psychographic segmentation
Psychographic segmentation divided market into different groups of buyers based on their socioeconomic status, lifestyle and personality characteristic. (Kotler, et al., 2004, pp.348). Socioeconomic status is the strong effect on preferences of buyers in the product. Lifestyle is a way of life or style of living of a person that will reflect the products they choose to buy. Personality is where a product is designed based on the personality of the consumer.
Behavioural segmentation
Behavioural segmentation divides the buyers into groups which based on their knowledge, attitude and responses towards the product. (Kotler, et al., 2004, pp.349). It also can based on the occasion segmentation and benefit segmentation.
The Perfect and Classic ranges
The Perfect and Classic ranges are in the psychographic segmentation because it is based on the consumer’s socioeconomic, lifestyle, and personality. For instance, it is based on classically stylish mature customers who are in a busy lifestyle but look for quality products in a value reasonable price. Besides, it also aimed on consumers which look for timeless collection and smart and elegant clothes.
The Autograph range
The Autograph range is in geographical segmentation by launched in spring / summer 2000 range at selected stores only. It also launched the hat collection in nationwide which classified the market into nations. Besides, it also in the range of demographic segmentation in terms of gender and by recruited top designers to create women wear and menswear.
per una range
Per una is using demographic segmentation in its market. It divided the market in age, gender and income. For instance, it target on the customer in the age between 25 and 35 which is fashion- conscious women. Besides, it also in superb design at competitive price and 10 per cent more expensive than M & S other main range which aimed at the customers that have upper medium to high income level to purchase for its products. Besides, it also based on behavioural segmentation by divide the customers based on their response toward the product. For instance, the speed of reaction the customers will reflect the good from design concept to be faster shop rails in weeks but not in months.
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Conclusion
As a result, Marks & Spencer had segmented its three sub brands into different kinds of segmentation which can gather the potential buyers with different characteristic to purchase their goods according to their preferences. This will helps to target different customers from all over the region to increase the sales volume and profitability and at the same time understand the customers’ needs, wants and taste that will help in the production line.
Question 2
Introduction
Marks & Spencer (M & S) garments had segmented its women’s wear into number of ranges and sub brands in order to appeal a different lifestyles to target the market. It includes The Perfect Collection, The Classic Collection, The Autograph and per una.
Order winners
Order winners is the things that directly and significant contribute to the winning business. Order-winning factor is the arrangement of resources which are applied to the production and the delivery of products and services. (Slack, et al., 2007, pp. 69). It is also the features which are unique and distinctive compared to other similar product ranges as to retain existing customer patronage as well as to attract new customers and brand switches.
Qualifiers
Qualifiers is the aspects of competitiveness where the performance of the operation has to be above the level considered by the customer. (Slack, et al., 2007, pp. 69). It also a product features that are usually present in other similar competitive brands. It means that existing customer’s needs will remain satisfied where they need not switch to other brand but at the same time it hold no unique features to attract new customers.
Features
The features of Perfect collection garments is based on classically stylish which is focused on basics and machine washable, non-iron and tumble-dry friendly which aimed at customer who are busy and look for quality and value garments on a reasonable price. Besides, it is a timeless essentials where customers can just wear it with anything.
Whereas, the Classic collection garments is focus on more mature customer which concentrated on design, comfort, long-lasting, smart, elegant clothes and versatility which made from high quality fabrics at value-for-money prices. It is designed for skim and flatter the natural body shape of the customers. It is a timeless collection that reflects customers style and finesses.
Autograph range is available in selected stores and which is designed by top designers. It includes women wears, men wears and accessories. Autograph range is sell on high street price with limited pieces on each item launched.
Per una is targeted on fashion-conscious women between the aged of 25-35 and the size of 8-18. It provides a superb design at affordable price. It also comes with latest trends, limited editions and exclusive design with no repetition which stands 10% more expensive in M & S main range.
Customer’s expectation
The customer who is smartly dressed would expect the availability of their size, price and quality for the standard items in M & S. They prefer the garments which is easy to clean. As for the fashionably dressed lady would expect the availability of bigger sizes in the store with ‘reasonable’ quality and the colour of the garments must not be fade or shrink when washed. This customer is more focus on availability of size rather than the variety of colour shades.
As for premium items, the customers who is smartly dressed would expect limited design clothes which is exclusively designed with high quality and long lasting. Besides, the customers who is fashionably dressed would focus much on design rather than quality and unlikely to purchase high fashion item unless it is a impulse purchase which its expect to wear for only a few times before replacing it.
The Perfect and Classic ranges
Order winners
The order winners of Perfect and Classic ranges are the items which is timeless essentials, long lasting style that can maintain quality and versatility. It is also skim and flatter to the natural body shape and belongs to the range of smart and elegant clothes with high quality of fabrics at valuable price which can attract the new and existing customers.
Qualifiers
The qualifiers of the Perfect and Classic ranges are the items which are machine washable, non-iron and tumble dry friendly. Besides, the items which is ‘return to basics’ such as plain, white shirts, black roll neck sweaters and jeans which can retains the existing customers
.
The Autograph range
Order winners
The order winners of The Autograph range is the unique design by the top designers which is the philosophy of Autograph to bring cutting-edge design for the customers within a selected stores which charged at a high street price but in a designer boutique environment that can attract more new customers for the unique design that only available in selected stores.
Qualifiers
The qualifiers of The Autograph range is the availability of collection items such as Philips Treacy’s collection with 18 hats and 10 bags with a variety of no more than 60 of each colour and style which can let the existing customers to have more choices in terms on style and colour of the items..
per una range
Qrder winners
The order winners of per una are the unique design with quality materials and latest trends which comes in limited editions. It is also comes with small numbers with no repetition in design that will attract new customers to purchase it as its design are exclusive and limited edition.
Qualifiers
The qualifiers of per una is the size of clothes which is from 8-18 that come in small number. This will retained the existing customers that are small in size between aged of 25-35. Besides, the design of clothes also very attention to detail.
Conclusion
It is vital that M & S to distinguish the company order winners and qualifiers for the customers in order to target the markets and to gaining competitive advantage.
Question 3
Every operation also had a range of stakeholders which may or maybe influence the operation’s activities. (Slack, et al., 2004, pp. 39). There are internal stakeholders such as employees and external stakeholders such as customers, society company’s shareholders and so on. Operation performance objective includes the five performance objectives which are quality, speed, dependability, flexibility and cost.
Perfect and Classic ranges
Autograph range
per una range
Product range
Targets on classically stylish and mature customers that with a busy lifestyle.
Produce smart and elegant clothes.
Targets on unique design by top designers which available in selected store.
Targets on fashion conscious women in the aged of 25-35 with the size of 8-18.
Inspired by latest trends.
Design changes
Continual changes
Occasional changes
Occasional changes
Price
Reasonable and value-for-money prices in terms of quality.
The lowest price among the Autograph range and per una range.
High street prices.
It ranks as the second highest of price between perfect and classic range, and per una range.
The highest price compared to perfect and classic range, and per una range.
10% more expensive in the Marks & Spencer main range.
Quality
High quality that ranked number three among Autograph range and per una range.
High quality
High and exclusive quality.
Sales volumes SKU
High
Medium
Low
Order winners
The garments are timeless essentials that have long lasting style which can maintain quality and versatility.
It also skim and flatter to the natural body that used high quality of fabric but in valuable price.
The clothes are unique design by the top designers which is the philosophy of Autograph to bring cutting-edge design for the customers at selected stores.
The clothes are charged at a high street price but in a designer boutique environment.
The garments are unique design with quality materials and latest trends which comes in limited editions.
No repetition in the in the design.
Order qualifiers
The garments are machine washable, non iron and tumble dry friendly.
It also focused on basic design such as plain, white shirts, black roll neck sweaters and jeans.
The availability of collection items such as Philips Treacy’s collection with 18 hats and 10 bags with a variety of no more than 60 of each colour and style.
The size of clothes which is from 8-18 that came in small number.
The design of clothes also very attention to detail.
Operations priorities
Dependability and quality.
Basic and comfort.
Cutting edge design within a unique boutique environment.
Quality materials and latest trends.
Conclusion
It is important for Marks & Spence to identify and classified their company’s operation performance objectives of different ranges in order to ensure that the three sub brands will have a smooth production line in terms of which brands that different customers served by differentiate it into different product ranges.
(2023words)
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