Market segmentation strategies are super effective and produce a large amount of overall sales for corporations to grow business. By applying the multi-segment strategy into different market segments, companies will be able to focus on diversified marketing programs and customers. As taught in class, a variety of segmenting methods are defined such as benefit, geographic, demographic and behavioral segmentations. Sweetfrog premium frozen yogurt has created a successful story through utilizing these market segmentation strategies.
Introduction of Sweetfrog:
Sweetfrog premium frozen yogurt franchisee industry suffered a decline in the late 1990's, but Sweetfrog is the company which helps frzen yogurt industry back on the track. The headquarter is located in Richmond, VA., and it was established at 2009 by Derek Cha and Annah Kim. Within 8 years, more than 350 stores over states in U.S. and the increasing number of international shops are popular among youngers. The underlying reason lies in the conjunction use of marker segmentation strategies.
Benefit Segmentation Strategy:
Sweetfrog premium frozen yogurt understands how the benefit segmentation strategy works. Its brand image caters to current customers' healthy eating habits. Although ice-cream tastes delicious, consumers tend to be healthy-conscious, and that is why the traditional ice-cream industry becomes less attractive than ever before. The frozen yogurt offered by Sweetfrog is non-diary, no sugar added and low-fat. The yogurt apart still keeps its solid consistency and flavor. This market mix of product decision is a main motivation for customers who take the importance of fitness into account.
Geographic Segmentation Strategy:
Geographic segmentation is defined that a market can be divided into locations and regions. Sweetfrog premium frozen yogurt tells cultural differences and applies into it for the global chains. When Swwetfrog launches its products in Thailand, it builds the coordination with local restaurants. Due to Thais' traditional eating habits, local customers like eating spicy food with cold dessert such as iced coconut milk and ice-cream. Sweetfrog premium frozen yogurt is launched as a cold dessert to local in Thai restaurants. Moreover, product adaption has been adpoted in Thai market. For instance, durian, a foul smelling mistake of nature, is one of the most popular fruits in Thailand. Creating durian flavor frozen yogurt meets local consumers' tasty.
Demographic Segmentation Strategy:
Identifying customers based on gender, age, income and family lifecycle is significant step to reach target audiences. Sweetfrog targets Generarion Y as its primary-level target audiences. This group are youngers whose income level are middle. Marketing mix of pricing develops an affrodable price for these youngers. Averagely, the price of Sweetfrog ranges from $0.41 to $0.49 per ounce. Spending around $4 US, customers can create a dessert by picking up 16 flavors and more than 50 fresh toppings.
Behavioral Segmentation Strategy:
Consumer decisions are usually affected by their behaviors. The major form of behavioral segmentation is buying on occations. Sweerfrog has its seasonal exposure event. During Valentines' Day, special gifts and flavors will be launched for young lovers.
In conclusion, Seewtfrog premium frozen yogurt would be a successful business endeavor. Utilizing the conjunction of 4 market segmentation methods above is inspirational to expand business.
Cited Works:
1. Developing a Market Segmentation. Boundless Marketing Boundless, March o2, 2017, http://www.boundless.com
2, Sweetfrog.com
Xieyi Xu
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