Market Segmentation

Finettis whole potential target market are mothers. They are segmented and categorized according to their social classes.
Each segment is profled and further assessed through key factors like their needs, lifestyle, relationships and the projected
price-uality mi!, and "alue proposition appropriate for each segment.
Segment Profles Mothers
Class A Class B Class C Class D
Occupation #ig-time
$ompany%#usiness
&wners
'mall #usiness
&wners, (hite $ollar
)o*s
(hite $ollar )o*s #lue $ollar )o*s
Annual Income +ore than ,-,...,... ,/..,...-,-,...,... ,-0/,...-,/..,... ,1.,...-,-0/,...
Needs (referring to
spreads
They need to gi"e their
family and kids nothing
*ut the 2*est of the
*est2 products
regardless of price.
They are *rand
conscious. They don3t
want cheap ingredients
like artifcial 4a"ors.
They usually associate
high price with high
uality and safety.
,ackaging plays a huge
role in con"incing them
that the product is of
high uality. They *uy
what their kids ask for
and want.
They need to gi"e their
family and kids the
*est products *ut
consider reasona*le
pricing. Though they
are looking for goods
with a much cheaper
price, they still
prioritize uality. They
would not go for cheap
*ut mediocre products
*ecause they can still
a5ord pricey products
if they really need to.
They need to gi"e their
family and kids uality
products that should
*e a5orda*le. They
need to ma!imize their
*udget and at the
same time satisfy the
needs of their family.
They look for products
that are 6sulit7 or
products that are
a5orda*le, which at
least ha"e satisfactory
uality. They are a*le
to *uy pricey products
only if there are
discounts or promos.
They need products
that are cheap
regardless if they ha"e
high uality or not.
They consider price
*efore uality. 8s long
as it ser"es its purpose
and it3s cheap, it3s a
good *uy. They may
ha"e preferences *ut
they are constrained *y
*udget. They usually
resort to products with
cheap packaging and
are a"aila*le in
little%small amounts.
!ifest"le They are *usy mothers,
thus they usually do
not ha"e enough time
to spend at home with
their kids. They dont
ha"e time for house
chores and grocery
shopping. They usually
ha"e helpers or
6yayas7 to assist their
kids3 needs.
8lthough working, they
ha"e time to spend
with their kids and
lea"e the household
chores with a helper.
They do the grocery
shopping during
weekends.
They are mothers who
work. They usually do
not hire helpers
anymore and do
household chores *y
themsel"es. They ha"e
little time to prepare
2*aon2 since they also
need to go to work
early in the morning.
They do their own
grocery shopping.
(ith a limited
educational
*ackground, they ha"e
limited opportunities to
work and just stay at
home to take care of
the kids and household
chores. They e!ert so
much e5ort on
*udgeting since they
usually ha"e just
enough for their
e"eryday needs.
#elationship $ith
%ids
+others in this social
class don3t ha"e an
intimate relationship
with their kids. 9ue to
lack of time *ecause of
*usiness and work.
They usually fnd time
to *ond with their kids
on weekends or days
when they don3t ha"e
any work to do. They
can still *e considered
as hands-on moms and
prepare food for their
kids whene"er they are
at home.
They usually fnd time
to *ond with their kids
on weekends or day-
o5s. :e"ertheless,
their time with their
kids might *e lesser
compared to that in
'ocial $lass # since
they still engage in
doing household
chores. They are
hands-on in preparing
e"eryday food for their
kids.
They are hands-on
moms who take care of
their kids needs and
manage the household
chores. They prepare
the daily food of their
kids. They cannot
a5ord to *uy all the
wants of their kids due
to a restricted *udget.
Price&'ualit" Mi( ;igh ,rice- ;igh
<uality
=easona*le ,rice - ;igh
<uality
=easona*le ,rice
-=easona*le <uality
>ow ,rice - =easona*le
<uality
)alue Proposition +ore for +ore +ore for >ess 'ame for >ess >ess for >ess
Positioning 'uperior ;azelnut <uality ;azelnut 8 $heap ;azelnut The $heapest ;azelnut
$hocolate 'pread $hocolate 'pread for
>ess
$hocolate 'pread with
<uality
$hocolate 'pread
*arget Market
Each potential target segment is assessed using criteria determining each segments attracti"eness. The criteria are 'egment
'ize, 'egment 'ta*ility, and $onsumer Trends. 'egment 'ize looks at how large or small each market segment is, thus
looking at the projected profta*ility through the num*er or amount of potential *uyers of each segment. 'egment 'ta*ility
looks at how steady or sta*le sales would *e for each segment. 'egment 'ta*ility can *e determined through the fnancial
capa*ility or ,urchasing ,ower of each segment and how uick and often they would consume the product or the Freuency
of ,urchase of each segment. $onsumer trends are key o*ser"ations and assumptions a*out the *eha"ior, attitude and
lifestyle of mothers in each social class.
Criteria ?to determine
segment
attracti"eness@
Mothers
Class A Class B Class C Class D
Segment Si+e 8ccount AB of the
population%spread
users ?dapat i-
research@
8ccount C.B
?research@
8ccount 0.B
?research@
8ccount A.B
?research@
Segment Sta,ilit"
High
Financially capa*le
of *uying any
product at any price
High-Average
$apa*le of *uying
e!pensi"e products
when needed and
Average
Dsually *uy only
a5orda*le or 6sulit7
products ?medium
Low
Dsually *uy cheap low
uality products ?low-
priced products@
Purchasing Power
?high-priced
products@
uality is really
good
Dsually choose
reasona*ly priced
a5orda*le products
?high to medium-
priced products@
to low-priced
products@
Frequency of
Purchase ?referring to
spreads@
Fast
They and their kids
consume as freely
and as freuently as
they want as they
are a*le to *uy as
freuently as they
want as well
Fast
They consume as
freely as they want
They prepare
snacks and baon for
their kids
Regular-Slow
They prepare
snacks and baon for
their kids
They ha"e a"erage
consumption due to
*udget
Slow
They consume
sparingly or are
6matipid7 *ecause
of low fnancial
capa*ility to
purchase products
Consumer *rends They usually *uy
the most e!pensi"e
and well-known or
famous *rands
They are not that
hands-on in taking
care and pro"iding
the needs and food
of their kids
Eids are not allowed
to consume sweets
or chocolate all the
time, *ut are often
gi"en as treats or
rewards
They ha"e time to
spend preparing
food for their kids
+oms are hands-on
and lo"e to ha"e
*onding moments,
assuring enough
time with their kids
'weets or
chocolates are seen
as a reward or treat
and gi"en sparingly
often during special
reasons
They ha"e time to
spend preparing
food for their kids
+oms are hands-on
and lo"e to ha"e
*onding moments,
assuring enough
time with their kids
,arents are not
much concerned
with their kids
health and settle for
food that is cheap
(ould prioritize
spreads that are
traditionally used
like cheese rather
than chocolate due
to limited *udget
8fter assessment of all these factors, Finetti is percei"ed to *e most feasi*ly targeted at mothers in social classes # and $.
8mong all segments, mothers in classes # and $ ha"e more direct contact with their kids and ha"e enough purchasing power
at the same time to *uy the product.
+others in $lass 8 are an unlikely target for Finetti since they ha"e high purchasing power and are most likely to *uy the
most e!pensi"e and famous products, which Finetti is *oth notF Finettis key feature is its a5orda*ility and it is not well
esta*lished in the ,hilippines yet. $lass 8 mothers are highly *rand-conscious which is the *iggest factor that would hinder
them from *uying the product. Furthermore Finetti is indirectly targeted at kids. $lass 8 mothers ha"e less time to spend with
their kids or prepare their food, thus they ha"e lesser knowledge and moti"ation regarding what food to *uy for their kids.
+others in $lass 9 are easily understood to *e an unlikely target since they ha"e "ery low purchasing power to *uy a product
like Finetti and also *ecause of their priorities in their constrained food choices a5ected *y their limited *udget.
Finetti appropriately fts the needs and also lifestyles of mothers in social classes # and $. Finetti features itself as at par with
the *est uality while *eing a5orda*le. That is e!actly what $lass # and $ mothers are looking for. They need and want
products that ha"e good uality yet are reasona*ly priced. Finetti almost has the same uality with the top chocolate
hazelnut spread, :utella, yet costs half of its price. $lass # and $ mothers are "ery hands-on with their kids. They prepare
food for their kids e"eryday and are willing to spend enough for the *est uality, thus they are well-moti"ated to *uy food
spreads and ha"e fast and high consumption of the product. 'pending uality time with their kids is "ery important to them,
thus they are a*le to gi"e enough time for their kids, one of which is preparing and eating food as a uality and *onding time
for *oth moms and kids.