Segmentation Targeting And Positioning Marketing Essay

The purpose with the report is to provide a framework for exemplifying how market segmentation can determine the right target customers and the marketing mix that Okurukuru used to pursue a desire level of sales.

Okurukuru located between New Phymouth and Oakura. Okurukuru is suitable for both small and large weddings, they offer accommodation, restaurant, conference, and functions in one place make sure the individual needs are met.

Firstly by analysis market environment through segmentation, market alternative strategies, positing and secondly following by developing marketing strategies to meet customers’ needs. During the report, theories, internet articles, journal, magazine amongst others will be the sources.

With the theoretical explanation and the analysis’ a framework of exemplifying how market segmentation can determine the right target customers, in this case regarding the target customers of OKURUKURU WINES, will be succeeded and thus the purpose of this thesis will be realized.

The marketing mix will be used to as marketing strategy to attract customers. Marketing mix should be something pay care attention to because the success of business depends on it. There are four variables, product, price, place and promotion. On the basis of the descriptions and the responses it will be concluded that the importance of some elements within marketing mix will vary made on one element of marketing mix without considering its impact on other element.

Introduction

Okurukuru is easily located between New Phymouth and Oakura. Okurukuru commands particular views of the Tasman Sea overlooking the vineyard. Okurukuru is suitable for both small and large weddings, make sure the individuals needs are catered such as ceremony, reception, honeymoon are all in one place, because they offer accommodation, restaurant, conference, and functions in one place.

Peter and Chris is the owner of Okurukuru Winery, Kate Acland produces Okurukuru wines who is the youngest daughter of the owner. Wines produced from both the Taranaki vineyard and from selected Marlborough contract vineyards at the Sugar Loaf Winery in Marlborough. ( Brochure, Okurukuru)

Okurukuru Winery enjoys grand coastal views, the vineyard is planted in 2001, and in 2009, they have their first harvest and 2009 vintage Pinotage which is currently available. In 2011 they harvested 8 tonnes of grapes half of which will be made into Rose and half Red.

Sugar Loaf Wines based on Marlborough winery, which is situated on the heart of Marlborough’s wine tourism area. It is a joint venture between Kate and her father. Both Okurukuru and Sugar Loaf have created success story their wines in recent years. (Okurukuru)

Discussion

Segmentation Targeting and Positioning

Market segmentation is means that the particular market divided into a different group of customers with distinctly similar needs and products and service requirements. From another point of view, the market segmentation is the process of dividing market into identifiable and distinct groups, which have similar or common characteristics and needs that reflects in the market. By doing so the marketers will have a better understanding of their target audience and thereby make their marketing more effective (Gunter and Furnham, 1992: 1).

Positioning is to differentiate which goods and services from one another and so give consumers a reason to buy. It is most important as it competes and understand the nature brand of the competitors what types of products and services attributed to selected market.

Demographic segment

Demographic segmentation divided customers into based on age, gender, family size and lifecycle, generation, income, occupation, education, ethnicity, nationality, religion, and social class. (Armstrong and Kotler, 2005: 187). The demographic segmentation is often used as variables are useful knowledge when segment markets.

Income variable, it determines whether a consumer will be able to afford a product. It divides the market into different income groups. It is available for Okurukuru to segment the market as strategy to achieve higher desired objectives. As Okurukuru has multiple functions, costal views and wine to operate their business. Income segment is most attractive to take effects.

Evaluating market segments

Wines market is in high grow established segment, where wine is becoming a mainstream product and is experiencing beverage choice and above growth in New Zealand, where more consumers choose wines as one of the beverage choices.

The New Zealand wine industry is a very important contributor to the New Zealand economy. Wine industry creates jobs locally, consequence of earning over $1 billion in export in the year to June 2010, which has success of the industry impact in some way in New Zealand. The industry has been created a relative success story for New Zealand, growing from exports of approximately $200 million in 10 years ago to now being one of New Zealand’s top 10 export earners.

With a large variety of wines produced both enjoys in national and overseas, the New Zealand wines have established premium brands, it continues its growth. Enormous opportunity is still exist globally from key markets, salient Australia, the UK and the US, as well as increasingly from Asian and European markets.

Peter and Chris is the owner of Okurukuru Winery, Kate Acland produces Okurukuru wines who is the youngest daughter of the owner. Wines produced from both the Taranaki vineyard and from selected Marlborough contract vineyards at the Sugar Loaf Winery in Marlborough. ( Brochure, Okurukuru)

Sugar Loaf Wines based on Marlborough winery, which is situated on the heart of Marlborough’s wine tourism area. It is a joint venture between Kate and her father. Both Okurukuru and Sugar Loaf have created success story their wines in recent years. (Okurukuru)

Okurukuru winery will process 600 tonnes of grapes, from both the adjoining vineyard, 20 acres of Sauvignon Blanc and from 5 contract vineyards throughout Marlborough, as well as producing wine for Okurukuru and several other boutique labels.

Market- coverage alternatives

Undifferentiated marketing strategy

With undifferentiated marketing, Okurukuru chooses to target the market with one offer, does not to consider the difference. Thereby Okurukuru focuses on the similar needs of the customers. However, the limitation of undifferentiated marketing, it is not possible to meet every customer’s needs and thus it is not possible to satisfy all customers.

Differentiated marketing strategy

Differentiated marketing is a marketing strategy where Okurukuru target many market segments, each being attractive to the marketing organization. Thereby Okurukuru may have a higher sale and thus stronger position within each market segment. However, disadvantage of this approach is the loss of economies of scale due to the resources required to meet the needs of many market segments. Therefore Okurukuru must consider increased sales against increased costs when using differentiated marketing strategy.

Concentrated marketing strategy

Concentrated marketing, involves focus on few market segments. Okurukuru can market more effectively due to a strong position and great knowledge of the customers’ needs within each segment. Although concentrated marketing can be highly profitable it also involves a high risk due to the fact that the Okurukuru relies on one or a few segments for their whole business and will suffer greatly if the segment turns sour (Armstrong and Kotler, 2005: 200-202).

Positioning strategies

Positioning has two fundamental elements. The first concerns the physical attributes, the functionality and capability that a brand offers. Positioning is about a product’s attributes and design, how the product is communicated, and the way these elements are fused together in the minds of customers. For example, Okurukuru offers wines, in addition to those, Okurukuru also provided functions something else to meet the customers’ needs. The second positioning element is how brands to be communicated and how it is identified by customers in order to maximize the potential benefits for Okurukuru.

As previous mentioned, New Zealand wines industry is playing vital role in economic growth, Okurukuru develop a brand and product which will meet the specifically customer, such as Okurukuru wines, Okurukuru winery. Both Okurukuru and Sugar Loaf have achieved remarkable success with their wines target in the specific segments groups in recent years.

Marketing Mix

Marketing strategy is to response in the marketplace. To response customers, an organization must develop a product, determine the price what customers are willing to pay, identify the distribution is most convenient for customers to purchase the product and services, at last, promote the product to customers where is available for them.

Product, price, place, and promotion are defined as market mix of market strategy. Each of the four P’s is a variable control in creating the marketing mix that will attract customers to business. (Homewood. IL: Richard D. Irwin, Inc., 1960)

Product

Product represents to the goods and services offered by a firm to customers. Product distribution has tangible and intangible, physical that there are elements associated with product that customers may be attracted to, such as the way it is packaged. Apart from physical products another that includes quality, features, options, services, warranties, and brand name. Thus, reviewed on Okurukuru, offer as a bundle of goods and services to customers. Okurukuru wine, function, and supports (restaurant, conference, accommodation) make up what the customer is actually buying. Okurukuru pays close attention to the needs their product bundles address for customers.

Okurukuru meets the needs of a particular target market. For example, a luxury product should create just the right image, while many basic products must be positioned for price conscious consumers. Other important aspects of product may include an appropriate product range, design, warranties, or a brand name.

Think long term about Okurukuru venture by planning for the ways can deepen and broaden product bundle. For instance, Okurukuru may be able to take advantage of opportunities to add value through processing, packaging, and customer service. Other future growth may allow offer product to different customers.

Price

Price refers to how much customers are willing to pay for the products and services. Many small business owners feel they must absolutely have the lowest price around. So they begin their business by creating an impression of bargain pricing. However, this may be a signal of low quality and not part of the image want to portray.

Okurukuru pricing approach should reflect the appropriate positioning of product in the market, for example, products, customer demand, the competitive environment, and result in a price that covers cost per item and includes a profit margin. Pricing too low will make it impossible to grow. Pricing too high will make it impossible to target market.

There are several alternative pricing strategies to be used. Such as value-based, competitive, cost-plus, skimming, discount, loss-leader. For example, Anyone that books an Okurukuru 2012/13 wedding today and confirms by Tuesday 15th May 2012 will receive Two Night’s accommodation for the Bride & Groom free at out fantastic on-site chalets.

Place

Place refers to the distribution channels where goods and services used by customers. Based on the case, Okurukuru bundle of products and service to customers, then Okurukuru will be supplying directly to the customer as it is the final chain of distribution. OKURUKURU is easily located at 738 Surf Highway 45, Omata, just off the main highway between New Plymouth and Oakura. It is easily for customers to enjoy the restaurant and accommodation. Okurukuru create and assemble wine, selling directly to consumers and selling to a vendor.

OKURUKURU pursue selective distribution. Okurukuru wines are produced from both the Taranaki vineyard and from selected Marlborough contract vineyards at the Sugar Loaf Winery in Marlborough. It may be easier to established relationship with customers.

Promotion

Promotion itself involves advertising, public relations and personal selling in the marketing. Promotion is to inform customer what products and service provided, what they can use it for, and why customers should want it. Organizations want the customers who are looking for a product to know that product satisfies their needs.

The promotional efforts should contain a clear message targeted to a specific audience reached via an appropriate channel. The channel select for message will likely involve use of a few key marketing channels advertising, public relations, personal selling, and sales promotions.

The target audience will be the people who use or influence the purchase of product. The message must be consistent with overall marketing image, get target audience’s attention, and elicit the response, whether it is to purchase product or to form an opinion.

Okurukuru use advertising channel to promote their products and services, brochure printing and web sites express clear information on what Okurukuru products and services offers to customers. And public relations- Awards Okurukuru Winery, create a favorable business image. Sales promotion also being placed in the Okurukuru marketing, for instance, anyone that books an Okurukuru 2012/13 wedding today and confirms by Tuesday 15th May 2012 will receive Two Night’s accommodation for the Bride & Groom free at out fantastic on-site chalets. ( Brochure, Okurukuru)

Conclusion

Based on the key finding from discussion on marketing segmentation, positing and marketing mix related to Okurukuru. In discussing these areas, it provided a framework for exemplify how market segmentation can determine right audience, thus help companies to design an appropriate marketing strategy.

In conclusion, the explanation of the market segmentation process, identifying the target customers, market targeting and positioning, and the analysis using marketing mix a framework for market segmentation. Consequently it can now be concluded that a framework for exemplifying how market segmentation can determine the right target audience and thus marketing mix the purpose of this thesis has been realized.

Recommendation

The question of which segment strategy the company shall choose is dependent on a number of market, product and competitive factors. Each of these factors must be considered before deciding on the segment or segments to be targeted.

By considering these above mentioned factors the company can decide on viability of particular segments and ensure that resources are appropriately targeted (Dibb and Simkin, 1996: 16).

The four P’s, product, price, place, and promotion should work together in marketing mix. Decisions on one element will influent on other areas. In developing an influencing strategy one needs to consider the usefulness, credibility and political cost of the message; which decision-maker at what place and time it will be targeted at; and with what support, promotional package and ongoing relationships management it will be delivered.

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