Question

Define, identify and analyze Demographic and Psychographic tools for Segmentation for any brand of your choice. Evaluate how these brands use such segmentation in their promotion. Examples should be backed up with research .

Answer 1

I will choose one of the top brand in style and footwear industry named ADIDAS. It is a German multinational company which is started in 1936 and one of the most popular and oldest footwear brand of the world.

Market segmentation can be defined as the process of cutting down the entire potential market into different groups with similar needs, wants, interests, location, taste, demand, preference and desires of customers. firstly, any company identifies the different ways to segment the market. after that there is development of profiles of resulting segment of market. potential market consists of plenty of buyers who have different needs and desires different buying attitude and practices so the company has to make separate market program for each and every buyer.

Adidas mainly puts its focus on demographic and Psychographic segmentation

demographic segmentation can be described as the segmentation of market according to age, gender, sex, race, religion, family size, income, education etc. with the use of demographic segmentation, a company can categorized the needs of the customers. this method has long been used in Adidas. they branded their products according to age segmentation, gender segmentation and family life cycle segmentation into range of female, kids and male. they have products that can fit into thsese three demographic segments.

Adidas has a wide range of male and female clothing as well as shoes. it has eye wear and body care products for male and female both. there are basically three brands of Adidas named originals, style and performance. all of these three brands has products for this segment.

Adidas mainly target young consumers such as age group of 14 to 40 years but that not mean Adidas does not have products for age group 40 to 65 years. it is a very popular brand and have products for all types of age group. to satisfy each type of age group Adidas launched different types of brands to satisfy the needs of the customers such as Adidas neo is a brand which is launched by the company to satisfy and to target the needs of the customers which has age group of 14 to 19 years.

Psychographic segmentation refers to the process of dividing the potential market into groups and sub groups according to social class, lifestyle, traits, beliefs, values, personality, attitude, psychology etc of consumers. Adidas puts focus on social class as the people belongs to same social class have similar taste and buying behavior. lifestyle of consumers also puts impact on the purchasing of consumers. people who have sporty lifestyle and loves outdoor activities purchases Adidas shoes. people who beleives in style also purchases Adidas products as they believe that Adidas products are very stylish, functional, fashionable and good looking.