American Giant is an e-commerce company that sells sweatshirts, t-shirts, and polo shirts. Two market segments they should target are:
1. Younger demographic located in hotter climates like students and those in the private sector who prefer comfortable athletic clothing.
2. Environmentally conscious consumers with active lifestyles influenced by peers who will buy trendy, high-quality clothing.
American Giant is an e-commerce company that sells sweatshirts, t-shirts, and polo shirts. Two market segments they should target are:
1. Younger demographic located in hotter climates like students and those in the private sector who prefer comfortable athletic clothing.
2. Environmentally conscious consumers with active lifestyles influenced by peers who will buy trendy, high-quality clothing.
American Giant is an e-commerce company that sells sweatshirts, t-shirts, and polo shirts. Two market segments they should target are:
1. Younger demographic located in hotter climates like students and those in the private sector who prefer comfortable athletic clothing.
2. Environmentally conscious consumers with active lifestyles influenced by peers who will buy trendy, high-quality clothing.
Question 1: Identify two market segments you think American
Giant should target with their products. American Giant is an E-commerce company which is involved in selling of sweatshirts, T-shirts and Polo shirts. They can take care of the different segments in the market as- 1. Demographic- Under demographic they should focus on the following factors- Age- As they are virtual and are involved in selling of stuff which is mostly used by people of young age and even the online platforms are mostly used by young people. Hence, they should focus on the young generation. Geographic Location- As t-shirts are mostly used by people staying in hot climates, so the American Giant should mostly focus on people staying in hotter climates rather than people of colder climates. Occupation- As people with sports background or involved in physical activity would prefer to wear t-shirts more often than people of other occupation. Gender- American Giant should also structure their products while keeping in mind the gender basis and should cater to different needs of both the genders. 2. Psychographic – Under Psychographic the company should focus on following- Price sensitivity-The Company should focus on middle income and low income range as they are the ones who will be wearing these types of clothes more often than the people of High income Range. Environment friendly-As people are becoming more sensitive towards the environmental causes so, the company should focus more on environmental friendly products. Hobbies- People who are indulged in physical activity mostly prefer these types of t-shirts or the fitness freaks. Influenced by peers- People who are influenced by their social group can be easily persuaded for buying our products.
Question 2: For each segment, describe their profile using
market segmentation variables. 1. Demographic Age- for college students American giant hoddies and more comfortable and flattering than other sweatshirts Income- people with high income group has more to spend on their casual looks than compared to people with low income who doesn’t care much about their casual attires. Gender- male gender usually has very less fashion outfits when compared to females as they have variety of them. Geographic location- people living in hot areas prefer t- shirts more than people of colder areas Occupation- People working in private sector have more choice of wearing casual attire rather than people working in government sectors. 2. Psychographic Brand preference- Brand loyal customers are very important for any business so, American Giant should focus more on brand loyal people rather than people who keep shifting their preferences. Price sensitivity- people with high income will be able to purchase high pricing products rather than people of low income group Environment friendly- People are becoming more conscious about their environment so, the American Giant should also focus on producing eco-friendly products. Hobbies- People involved in physical activity will prefer t-shirts during their playtime as they are more comfortable and sweat absorbing. Lifestyle- People with funky lifestyles would love to wear their hoddies in their casual time rather than usual jackets which are less fashionable Influenced by peers- people who are influenced by their group can be targeted as they are the ones who follow fashion trends 3. Behavioral Knowledge- people who have knowledge about their environment, fashion trends and clothe material prefer to have more trendy clothes. Purchase Occasion- People who buys on special occasions will prefer clothes with fashionable and durable products Impulsiveness- People with impulsive behavior are most likely to buy t-shirts, sweatshirts and hoddies without thinking much about the occasion or any other condition 4. Environmental Payment methods – Young people will prefer more online transactions as they have more faith in online shopping Country of residence- People staying in temperate regions will prefer more t-shirt, polo t-shirts rather than people living in colder conditions Question 3: Other than competition, what factors might cause American Giant to reposition its product? Repositioning is done to change the position of a product in the target market’s mind. It could be due to many factors- 1. Something in the environment has changed- it is mostly associated with the competition when the competition increases then the brand needs to position its product in the minds of consumers and overcome the competition. 2. Target market has changed- If the target market has changed then the brand needs to position its product in the mind of their new customers. 3. Something internal in the organizational has changed - If the mission or the vision of the organisation has changed then they need to reposition their products in the mind of target market. If the organisation objective has changed then the company needs to reposition its product aligning with the new objective of the brand. Strength and weakness can be overcome by repositioning the brands product in the target market.