Consumer Segmentation Report Harvard Case Solution & Analysis

Consumer segmentation


A research done by the Nielson research companyin 2012 revealed that nearly 74% of the households having internet facility in the world are engaged in social media networking. In addition, more than 55% of the families in the United States have a minimum of one profile on a social networking site. Further, there are 22% individuals who spent their online time on social media specifically on Facebook and twitter. Social networking and social media have become a popular phenomenon and has delved deeply into the roots of various global cultures. The use of social media has altered and enhanced the typical marketing practices that includes market positioning and segmenting. With the help of social media, particularly Facebook, the companies can target consumers on a large scale followed by direct feedback (Dolnicar, 2002).

The report is made by the marketing manager of a touring company based in Russia. The reason behind the formation of this report is to find out how social media in particular FB affect consumers’ preferences and consumers’, to identify their model of behavior in social media, including finding out about what influences purchase decisions.The report includes trend analysis in which secondary data have been collected and evaluated to find the impacts of social media on consumers’ buying preferences with respect to various segments. In addition to that, primary data have been collected as well through a survey questionnaire. Moreover, two segments have been identified for the company and different marketing mix strategies have been applied to it (Dolnicar, 2004).

Trend Analysis:

Whether a company is engaged either in cruise ship, airline, hoteland restaurant or in tourism business, social media marketing has become a major factor of success. The business of tourism has become a major part in fostering country’s economy. Now days, most of the companies engaged in the tourism business are engaged in social media advertising to attract more customers.

In order to make customers satisfied and happy with the tourism industry, the company needs to deliver services that exceedcustomer expectations. A company needs to target a segment who is willing to spend money on tourism. Chadwick Martin Baily Incorporation has done a research in April 2013 that revealed that with the help of social media, customers have become more inclined towards purchasing and recommending those brands to others as well.

Another research conducted by the Neilson Company has revealed that nearly 49% of individuals on social networking sites have become fond of specific brand after watching its promotional materials on social networking specifically on Facebook. Out of this 49%, around 25% of the individuals have reported that after becoming a fan of a particular brand on Facebook, they are more likely to buy and recommend to others.

Satirically, the main findings of the report indicate that companies can cut through the online clutter by engaging them with social media such as Facebook. Social media canbe especially effective in terms of making strategies with respect to market and consumer segmentation.Social networking sites are effective in terms of engaging and interacting with consumers directly on nominal financial expenses. With the help of communication theories like network gate-keeping that is based on vigorous statistical quantitative analysis, the companies are now able to do marketing on social media more cheaply with maintaining efficiency in targeting and segmenting consumers (Dolnicar & Mazanec, 2000).

Currently, a study has been done by Centre for Asia Pacific Aviation revealed that there are many airlines who are now aggressively using Social Media like Facebook to make best use of opportunities and to take advantage of basic market segments. Airlines like AirTran is known to be a low-cost American Airline headquartered in Dallas and Texas. The company is using social media, specifically Facebook to market its services. The company has an official page on Facebook that gives each and every detail about ticketing and scheduling services. In addition to that, many Airlines have engaged in starting their own medium of marketing on social networking sites.

Like Airline industry, tourism industry is also using social media and as a matter of fact, it plays a fundamental role in each and every aspect of the tourism and travel industry. During vacations, many urban people and business travelers went to different places and among them, 50% of them upload their pictures and statuses on Facebook. This activity revealed an increasing trend of using social media sites in tourism business. Social media experts known as accept the fact that social media has become a major tool and act as marketing strategy to attain the best possible results (Everitt, Landau & Leese, 2001).......................

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