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Case Study on Market Segmentation and the Key Deciding Factors - Leitrim Foods Pasta England

Essay by   •  July 4, 2011  •  Case Study  •  2,440 Words (10 Pages)  •  2,452 Views

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Leitrim Foods is a manufacturer of Pasta in England which is sold under a brand name "Fucina Pasta" despite being a very small company. The company has entered a niche market to sell fresh pasta and to build brand awareness with little or no advertising due to the fact that there is no competition within the targeted the market. Leitrim Foods can in fact create awareness of it brand if it delivers a product that is identifiable to its specific promise of value. Therefore, Leitrim should not ignorant to the fact that they need to deliver what is promised as potential entry of competitors is possible which can bring about substitutes as well as consumers as the get the perceived benefit from the product in order to become loyal to it.

The marketing strategy employed maybe considered risky as it is obvious that the company wants to create a distinct perception in the minds of consumers that they will in fact create an exceptional brand. Customers are likely to remember the product and the company using such a branding strategy tarnishes the company's reputation or image if the product fails to meet the intended target market's satisfaction.

It is a clear indication that there is potential for the sale of pasta in England however, there are challenges being experienced with the product from a retailer perspective such as temperature control for the maintenance of freshness. This however can possibly be resolved through segmenting the market. It is due to point out that segmentation is not only for companies to target consumers but also other business enterprise that can potentially enhance the overall productivity of the firm. Therefore the Marketing managers at Leitrim has to research extensively to fine retailers with the necessary resources needed to maintain the quality of the product which vital to the satisfaction or appreciation of the product.


Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. It is simply managing profitable customer relationships. However this task can be twofold as marketers can attract customers by promising superior value but they have to keep and grow current customers by constantly delivering superior value and satisfaction. Marketing essentially has to be channeled to marshal the resources of an organization so that they meet the changing needs of the consumers on whom the organization depends.

The above definition can be achieved by marketers by strategically, identifying the needs of consumers such as employing good Customer Relationship Management (CRM) and having a clear marketing concept. Marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.

Therefore activities such as product development, research, communication, distribution, pricing and service are core marketing activities which are linked to the core marketing concept of needs, wants, demand, marketing offers, value and satisfaction, exchanges, transaction, relationships and markets.

In order to be successful within a competitive market place an organization has to identify where the need or demand is for its product or service and as such should employ the relevant process of Market Segmentation.

Market Segmentation can be defined as dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

There are several types of markets in which a marketer can operate; namely commodity markets, consumer markets, capital good market, industrial good market and service markets. However the two common types of market are the Consumer Markets and the Industrial Markets. Due to the fact that companies recognize that their products does not appeal to all buyers in the market place or simply does not appeal to all buyers in the same way most companies have therefore moved away from mass marketing and have become more focused on target marketing. Segmenting the market helps organizations to target and select the most efficient and profitable aspects of the market so as to enhance and help the organization to meet its goals and objectives.

The Consumer Markets are the markets for products and services bought by individuals for their own or family use. Goods bought in consumer markets can be categorized in several ways:

* Fast-moving consumer goods ("FMCG's") - which are high volume, low unit value, fast repurchase. Examples include Grace Kennedy's ready meals, Baked Beans and Newspapers.

* Consumer durables - which are low volume but high unit value. They can be divided into white goods (e.g fridges, microwaves and dishwashers) or brown goods (e.g DVD players, games consoles and personal computers).

* Soft goods - are goods are similar to consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle examples include clothes, shoes

* Services (e.g. hairdressing, dentists, childcare)

The Industrial Markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Industrial markets include:

* Selling finished goods - which include office furniture, computer systems

* Selling raw materials or components - which include steel, coal, gas, timber

* Selling services to businesses - includes waste disposal, security, accounting & legal services

Industrial markets often require a slightly different marketing strategy and mix. In particular, a business may have to focus on a relatively small number of potential buyers (e.g. the IT Director responsible for ordering computer equipment in a multinational group). Whereas consumer marketing tends to be aimed at the mass market (in some cases, many millions of potential customers), industrial marketing tends to be focused.

A marketer has to try different segmentation variables alone and in combination to find the best way to view the market structure.

A market can be segmented that is dividing a market into distinct groups with distinct needs, characteristics, or behaviours who might require separate products or marketing mixes. There are various ways to segment a market however; the more



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