Market Segmentation Of Jeans Brand

3800 words (15 pages) Essay

1st Jan 1970 Marketing Reference this


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The report developed here is a business report that can be used effectively by a company and its management to make their future business decisions. The purpose of this business report is to do market segmentation for a specific brand product that is jeans. This report entails all essential aspects of market segmentation and its process that can be used by a company to identify its potential group of consumers. This report and its results will render a company and its management with specific recommendations for targeting their selected market segment. This business report is an all-inclusive report and can be used effectively by a company to determine its market segmentation approach.

The brand product selected for discussion in this report is jeans that can be marketed with core brand attributes like honest, contemporary, fashion, approachable, comfortable, universal, style and independent. The market segmentation of selected brand product is done with the help of different section in which first section includes introduction and information background that involves brand information and industry trends. The next section is about market segmentation and use of different segmentation bases for identifying potential group of consumers. As well, a segmentation table is also used. The next section involves positioning strategy for targeting new jeans brand.

Next section involves internal and external influences on primary target market purchasing decision that is man and women. In the end, recommendation related to selection of attribute based positioning, differentiation strategy, persuasive advertising, appropriate channel of communications and selection of distinctive media channels is given so that identify target market audience can be targeted easily and effectively. The report entails all significant information about market segmentation of selected product brand jeans with vital recommendations.

Introduction and Background Information

The specific brand product selected for market segmentation is jeans that belong to denim jeans industry. The denim jeans industry is the most fragmented out of the total apparel industry. Previously, the premium denim brands were only served for men’s and women’s but now it has extended to kids’ racks that shows its demand. The most significant trend in the industry is of colored jeans. In present scenario jeans have become a necessity and every age group people like to wear it. By age factor, sales of jeans have increased substantially in the age groups of 13-17 and 25-34 (Recent Industry Trends and the Competitive Scenario of the US Denim Jeans Market, 2008).

By volume, the male jeans shipment market in U.S. has grown significantly in comparison to the women’s jeans shipments. Although in last some years, the apparel industry has been critically affected by the global economic downturn but the denim jeans industry’s position is comparatively much better. The denim jeans industry is continuing to hold a beneficial position in comparison to other apparel categories and it is due to the longer life span of jeans in comparison to other apparel items.

The market downturn situation is handled by jeans manufacturers by reducing their prices as now consumers are more price-conscious. In spite of downturn, the industry is highly competitive as several new brands are entering the market from last few years. Most of the new brands are focussed on premium denim. According to market researchers, it is believed that by 2014 the global Jeanswear market will rise by US$4.6 billion that evidences the potential of jeans industry (Future of the Global Jeans Industry, 2007).

The core brand attributes of jeans are honest, contemporary, fashion, approachable, comfortable, universal, style and independent. On the basis of these attributes the selected brand jeans can be marketed easily in a way through which consumer feels that they are getting full value for their money (Recent Industry Trends and the Competitive Scenario of the US Denim Jeans Market, 2008). By marketing jeans on the attributes like independent and comfortable, the company can easily attract more female customers as in present they prefer to be independent.

The industry is doing good from last several years and in future it is also about to extend significantly due to the positive trends towards denim from all age groups. In coming future, the industry may be affected by diverse social and environmental factors but it will not be affected too much by political factors (Future of the Global Jeans Industry, 2007). Nowadays political situation of most of the countries are quite stable and this will not make any substantial affect on jeans industry as it belongs to apparel industry that is highly affected by social and environmental factors. In future, the industry may grow due to increasing social preferences of different consumers towards wearing denim.

The company if marketed effectively can attain a significant position in the industry and in the minds of its target customers. More and more new brands are entering and attaining significant place that can also be done by the company with specific and well-planned approach. By considering all these trends and a descriptive methodology, the selected product can be marketed effectively with well-planned market segmentation.

Market Segmentation

From last several years number of trends had keep coming and going but the denim trends are evergreen and perpetually remain in the fashion industry. Although there emerged numerous fashion brands in the apparel industry but the all time favourite brand is denim. The craze of wearing denim jeans is increasing day by day in all age groups and it is all due to the its distinctive attributes. The increasing craze of wearing denims is quite helpful for the company in segmenting its target market. With the help of appropriate segmentation bases the company can easily identify its potential group of consumers or market segments (Kotler, 2002).

The ever increasing craze of wearing denim among people evidence that different types of consumers can be made interested in new jeans brand. Consumers from almost all age groups like to wear jeans whether they are males or females. In present consumers like wearing denim from different kinds of purposes like fun, adventure, casual & formal approach etc. Every consumer find for different benefit at the time of purchasing jeans. By considering their needs and the benefits they are looking for market can be segmented easily.

The most widely used approach of segmentation is geographic, psychographic and demographic segmentation. In addition to this, another significant approach that can be used to identify potential market segments is by looking at behavioural considerations like consumer responses to benefits, use occasions or brands. Afterwards a marketer can associate his product characteristics with consumers each response. By making use of these segmentation bases, it will become easy for the company to identify its potential market segments of its new jeans brand (Lancaster & Raynolds, 2005).

Among all the above discussed segmentation bases the most significant segmentation bases that can be used by the company to identify its potential market segments’ are as follows:

Demographic Segmentation:

For identifying potential market segments the market will be divided among segments’ on the basis of age, gender and income. With age factor different age groups will be determined that like to wear jeans mostly. In modern era, teens, youngsters and aged all like to wear denim that can be easily targeted by identifying a group. Another significant base is gender and income as new jeans brand can be targeted to males and females and all income groups like low, middle and high class with making variations in brand offering.

The selection of demographic segmentation is quite appropriate to identify potential groups of consumers because demographic variables are often associated with consumer needs and wants. Consumer wants and abilities change with age and thus age and life cycle stages are significant variables to identify segments (Baker & Hart, 2007). Men and women have different attitudes and they behave differently on the basis of their genetic makeup and socialization. Their shopping behaviour is different and by considering this it will become easy to target new jeans brand. The last basis of segmentation, income group is also quite substantial and is been in use from last several years. Every group of consumers have specific income and buying power and they prefer to buy things accordingly (Proctor, 2000)

Behavioural Segmentation:

Benefit Sought:

Another important basis that can be used to segment market is behavioural segmentation in which potential group of consumers can be identified on the basis of benefits consumers are looking from a jeans brand (Kotler, 2002). The company can target consumers on the basis of benefits like fashion, approachable, comfortable, style and independent. Benefit sought segmentation is a significant approach as it will assist in identifying market opportunities and for determining the value propositions that can be offered to different group of consumers (Kurtz, MacKenzie & Snow, 2009).

Usage Rate:

The next important basis of segmentation is usage rate as every group of consumers have different usage rates. The company can segments its markets into light, medium and heavy product users (Baker & Hart, 2007). Like in denim industry heavy product users are youngsters whereas medium and lights users are teens and aged people. By providing special schemes and offers to heavy users of jeans, the company can earn a high profit. For identifying existing profit opportunities usage rate is the most suitable bases of segmentation that can be used by the company (Peter & Donnelly, 2002).

Potential Group of Market Segments:

With the above discussed segmentation bases, the four potential groups of market segments that can be targeted by the company with its new jeans brand are as follows:

Teens Consumers ages 12-17: One of the potential market segments that can be targeted are teens as the shopping trends of these group is increasing as never before. This group likes to wear casuals and love to wear ruff & tuff jeans that are a symbol of fashionable and style. This group can be easily attracted towards new brand of jeans (Rusty, 2005).

Men & Women: Another potential market segment that can be targeted is all men and women as in modern era both are highly independent and live with equal approach towards life. In present both the men and women like to wear jeans as they feel it is comfortable and approachable. Both of men and women prefer jeans due to different benefits.

High end consumers: The Company can also target its jeans to high end consumers who belong to high class as they prefer to wear premium brands of jeans. With high brand equity and recognition, this group of consumers can be targeted easily.

Old age consumers: The next substantial group of customers that can be targeted is old age consumers as nowadays these people also like to wear trendy cloths and be a part of different advanced social circles. By offering light weight jeans, the company can easily target this potential group of customers.

Segmentation Table (Jeans)

Primary Target Audience: All Men & Women

One of the substantial primary target markets that can be used by the company is all men and women as nowadays every competitor is offering jeans for all age groups for men as well as for women. The company’s brand is new so it also needs to offer basic product to everyone so that it can attain a significant market position and then can target specific market segments. By offering jeans for all men and women will give recognition to company brand that in turn can be targeted to specific market segments for generating high profits.

Positioning Strategy

The company can position its new jeans brand on the basis of its key attributes of comfortable and stylish wear. By offering jeans on these attributes will assist the company in creating differentiation among its own jeans brand and brand offered by its competitors like Acne Jeans, Diesel, Wrangler and Lee. By positioning on these two attributes will assist the company in attracting its target segments that usually prefer to buy jeans on the basis of these two benefits. By making use of these two attributes will assist the company in positioning its different image in the minds of men and women (Weitz & Wensley, 2002). The benefits of attributes based positioning strategy can also be understood with the help of perceptual map that is as follows:



New Jeans Brand


Diesel Acne Jeans

WranglerStylish Wrangler

Low High


The new jeans brand positioning strategy attributes comfortable and stylish will enable us in preparing the attribute based perceptual map. In this perceptual map, it can be observed that the consumers will rate it high on both the defined dimensions in comparison to its other competitive brands (Pride & Ferrell, 2004). The attribute-based perceptual map of new jeans brand evidences that it can attain a significant image in the minds of its potential consumers if offered with all essential features and aspects.

Analysis of the Internal and External Characteristics of Target Audience

Every company markets to different market segments and different group of consumers have different internal and external stimuli that affect their purchase decisions. Every purchase decision of consumers is highly influenced by diverse internal and external characteristics’ and similar is the situation with selected primary target market of men and women (Kim, Forsythe, Gu & Moon, 2002). The selected primary target market’s decision to purchase jeans is influenced by numerous internal and external factors that are as follows:

Internal Influences

An internal influence that may affect identified primary target audience is also known as personal influences. It pertains to the consumer’s ability to advantage directly from the product or service is going to purchase. These influences include motivation, learning and perception (Solomon, 2009). The identified primary target audience purchase decision of jeans is also affected by all these internal influences.

The consumers’ motivation to purchase jeans is an internal factor, and it may depend on his desire to attain goals associated to other internal and external factors. Like a female may want to purchase jeans for becoming a fashion symbol or more independent through her clothing style. She may need it from her collage wearing purpose or party purpose (Kim, Forsythe, Gu & Moon, 2002). On the other hand man may need to purchase it for comfort or becoming trendier. Teens may want to purchase it for becoming approachable and stylish. Every consumers purchase motivations are different that need to be identified before targeting selected primary audience (Ross, 2005).

In this way, it can be said that consumer motivation plays a substantial role at the time of making a purchase decision. Every purchase of an individual is influenced by some motivation and nowadays all age group’s males and females that buy jeans buy it with unique motive and need (Anderson & Vincze, 2006). Another substantial internal characteristic that may influence primary target audience purchasing decision is their perception that appropriates them to rationalize their buying decision on the basis of the perceived outcomes.

Like men can buy it by thinking about its use with their idol personality or some well known celebrity. When consumers believe that their role models or idol persons are showing it and making use of it they also prefer to buy those jeans so that they can also reflect similar kind of personality. This evidences that consumer personality also make a substantial affect on his purchasing decisions (Kurtz, MacKenzie & Snow, 2009). As well, when consumers learn from others that they used something and found it quite good they also try to purchase that product (Loudon, 2001).

The identified primary target market audience may learn about new jeans and is benefits from their friends, family members or colleagues and their social circles. This in turn will also encourage them to buy jeans. In this way, it can be said that the most significant internal characteristics that may influence identified primary target audience is motivation, perception and learning.

External Influences:

In addition to internal influences, other characteristics’ that may influence consumers purchase decisions are external influences that include social norms, family roles and cultural values. All these aspects make up external or social factors. All these external factors affecting consumers buying decisions are highly influenced by industry trends and environment (Kurtz, MacKenzie & Snow, 2009). The identified primary target market’s decision to purchase new brand jeans may also influenced by several external factors in which one significant factors that may influence is social norms. It refers to brand name, company recognitions, new trends in design and fashion etc.

If company has well established brand name it may easily influence primary target market audience purchase decisions. Trends to wear jeans in fashion industry is increasing that may also influence target market audience to buy new jeans brand in comparison to available brands. As well, cultural values are another substantial factor that may influence target market audience purchasing decision. Advertising campaigns that boast American-made or trendy & stylish products are quite common that are used to attract American consumers (Kotler, 2002). If company also make use of effective advertising that evidenced identified target audience cultural values, it can positively influence their jeans purchasing decisions.

The increasing use of advertising for appealing consumers shows that it is most substantial factor that can be used to inspire company’s target audience purchasing decisions. In concern to advertising another external factor that can be used to influence consumers’ purchasing decision is the demonstration of cultural values in the ownership of the product that can be done with the help of message framing (Kurtz, MacKenzie & Snow, 2009). By framing a message that includes all aspects of product and its association with its use may effectively influence target audience purchasing decisions.

A well-designed message may resolve all queries of consumers regarding their purchase decisions. It should include all benefits a new jeans brand will offer, its price in comparison to other brands and its core brand values. By delivering all these aspects in message, the primary target market audience purchase decision can be influenced significantly (Wang & Siu & Hui, 2004). Advertising and message framing are most substantial external factors that need to be managed significantly for positively affecting purchase decisions of identified primary target market audience.


With the help of above discussion and analysis of industry trends, it can be said that for targeting identified audience, it is essential that the company make use of diverse strategies and approaches. For successful targeting, it is essential that the company understand its potential market segment needs and factors that influence them substantially. In addition to this for successful approach to primary target market, the company need to adopt following recommendations:

Attribute based Positioning: The company need to position its new jeans brand on the basis of its specific attributes and core brand values. With this only it will become easy for the company to appeal its target market audience in comparison to existing brands of jeans. With the help of attribute based positioning, the company can easily deliver all its benefits to its primary target audience (Kotler, 2002).

Positioning through Differentiation Strategy: The Company should position its new jeans brand with the help of differentiation strategy. The most suitable differentiation strategy that can be used is image differentiation that can be done by involving some well-known celebrity or idol personality. This strategy will appeal primary target market consumers by influencing their own personality.

Persuasive Advertising: In concern to attracting primary target market audience, it is essential that the company make use of right advertising appeal that should be persuasive advertising. With the help of this advertising appeal, the company can easily create liking, preference, conviction and purchase of its new jeans brand among its identified primary target market (Groucutt, Leadley & Forsyth, 2004).

Selection of Communication Channels: The next substantial strategy that the management of the company should adopt is related to the selection of appropriate communication channels. In communicating with its selected primary target market it is essential that the company make use of both the personal and non personal communication channels (Fiore, Lee & Kunz, 2004). In this way, only it will become able in doing successful communication.

Use of Advanced Media channels with Social Media: The company should communicate its brand and its core values to its target market with the help of advanced media channels like print media (newspapers & magazines), broadcast media (radio and television), electronic media (web page), network media (telephone and wireless) and display media (signs and posters) (Kelley & Jugenheimer, 2008). In addition to this, the company should also communicate its brand and its benefits with the help of social media tools as it is quite popular in present among youngsters and teen agers.

By adopting all these, the company easily position its new jeans brand in the year 2011 that will have different significant changes in industry trends and consumers preferences.

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