Question

As Marketing Communications Director of Aveeno Co. Ltd. in Hong Kong, you were being asked to develop an IMC plan to accelerate sales growth of its hair color preserving shampoo product lines and to expand its membership programme under a sales promotion campaign

3a) Targeting – PRIORITIZE the different market segments available and EXPLAIN which one is the most important target segment after considering the size of market, the Category Development Index, and the growth potential. (15 marks)

Relevant market research from Synovate (2010) has indicated the followings: Segment Size of Category Aveeno's Market Developinent Market Share customers) 2,200,000 280 40% Segment 1: Baby Boomers: Keeping traditions alive Those aged 46 to 64, over half of them listen to the radio. 67 percent of baby boomers think the best entertainment source and leisure pastime is TV. They are also the top group agreeing that 1,700,000 150 30% 990,000 200 20% advantage in life". They prefer safe shampoos formulated under proven research in general, and favour in particular those shampoos with hair colouring effects so as to get rid of grey hair. Segment 2: Generation X: Big spender Those aged 35 to 50, Generation X are in their prime working and earning years. They are the biggest spender on entertainment, dining out, and accessories such as watches, and second in spending on wear and accessories. They prefer premium brands and environmentally friendly products. Segment 3: Generation Y: A generation of inulti-tasking web surfers Young working adults aged 20 to 34 who prefer shampoos with specialised effects (like anti- dandruff, hair fall control or colour lock), and favour brands being recommended by bloggers. Segment 4: Generation Z: Let's be friends Ages of 12 to 19, 62 percent of them like to make friends and share experiences with them, the highest across all age groups. They are the least willing to accept higher risk for a potentially higher return. They favour brands recommended by friends. 690,000 10

Answer 1

Answer
The priority of different market segments will be as follows, most lucrative to least.
1. Generation Y- This target segment has people between the age group 20 to 34. They are young people who prefers shampoos with specialize effects. They prefer brand recommended by bloggers, market share of Aveeno's is also comparatively very less. It is only 20%, the company has huge potential of growth in this market segment. They can get their product review by bloggers who have the maximum impact on these people and generate goods sales by influencing the potential customers. The company should focus maximum on this target group.
2. Generation Y- This target segment is the second most lucrative this is because these people are the biggest spending on entertainment dining out and wear and accessories. The size of market is also very good with Aveeno's market share is only 30%. There is huge potential for growth
These people are big spenders on their lifestyle and can purchase good quality products by Aveeno.
3. Generation Z- this is the third most profitable category. This is because these people have highest risk potential they can try out new products which their friends a recommend.The market share of Aveeno is only 10% and they have a huge potential for growth in this category specifically. Most of the potential customer in this category are not very brand conscious and if they feel the product is good they can be convert into to permanent customers after trying it.
4.Baby boomers- these people are the least profitable, although their market size is very good. These people are are safe players in the market. They always used trusted products and the market size of Aveeno is pretty good which is close to 40%. Customers to capture in this market is quite effort taking as compared to other markets because of there safe approach, the company should focus on this market the least.

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