Week 3: Assignment
Create the Value: Market Segmentation Analysis and a Value Proposition
Your company has decided to explore the possibility of developing a new retail brand
aimed at a specific target market. Please prepare a report that would form the basis of a
planning discussion with your senior marketing managers. The term retail brand refers to
a retail store concept, as opposed to a manufacturer’s product or service brand the retail
company is the brand like Target, GAP or Victoria’s Secret.
Your report should include a detailed analysis of a potential market segment and a
description of the proposed value proposition. Your report should be about 1,000–1,250
words and include a minimum of three references. Please use the APA format for your
paper and references. Please include the following sections:
1. Brief Description of the proposed retail brand concept
2. Potential Market Segment
Identify the characteristics of your potential target market. The figure from the Week 2
lecture is helpful – you may also include other variables that you consider relevant. You
also need to estimate the size of your target market and the revenue potential.
Major Segmentation Variables for Consumer Markets
Geographic region
Pacific Mountain, West North Central, West
South Central, East North Central, East
South Central, South Atlantic, Middle
Atlantic, New England
City or metro size
Under 5,000; 5,000–20,000; 20,000–50,000;
50,000–100,000; 100,000–250,000;
250,000–500,000; 500,000–1,000,000;
1,000,000–4,000,000; 4,000,000 or over
Density
Urban, suburban, rural
Climate
Northern, southern
Demographic age
Under 6, 6–11, 12–19, 20–34, 35–49, 50–64,
64+
Family size
1–2, 3–4, 5+
Family life cycle
Young, single; young, married, no children;
young, married, youngest child under 6;
young; married, youngest child 6 or over;
older, married, with children; older,
married, no children under 18; older, single;
other
Gender
Male, female
Income
Under $10,000; $10,000–$15,000; $15,000–
$20,000; $20,000–$30,000; $30,000–
$50,000; $50,000–$100,000; $100,000 and
over
Occupation
Professional and technical workers;
managers, officials, and proprietors; clerical
salespeople; craftspeople; forepersons;
operatives; farmers; retired people; students;
homemakers; unemployed people
Education
Grade school or less; some high school;
high school graduate; some college; college
graduate
Religion
Catholic, Protestant, Jewish, Muslim,
Hindu, other
Race
White, Black, Asian, Hispanic
Generation
Baby boomers, Generation Xers
Nationality
North American, South American, British,
French, German, Italian, Japanese
Social class
Lower lowers, upper lowers, working class,
middle class, upper middles, lower uppers,
upper uppers
Psychographic lifestyle
Cultureoriented, sportsoriented, outdoor
oriented
Personality
Compulsive, gregarious, authoritarian,
ambitious
Behavioral occasions
Regular occasion, special occasion
Benefits
Quality, service, economy, speed
User status
Nonuser, exuser, potential user, firsttime
user, regular user
Usage rate
Light user, medium user, heavy user
Loyalty status
None, medium, strong, absolute
Readiness stage
Unaware, aware, informed interested,
desirous, intending to buy
Attitude toward product
Enthusiastic, positive, indifferent, negative,
hostile
3. The Value Proposition
Describe the bundle of benefits/features that are offered to the target customer. Features
are what the company offers and benefits are what the customer derives from these
features.
Functional Benefits – What basic features are offered?
Emotional Benefits – What features are offered that make the customer feel good?
SelfExpressive Benefits – What features are offered that help reflect and
communicate the customer’s values to everyone in the social environment?
4. Conclusions
Grading Rubric
Outline
Description
Points
Description
20/20 Brief Description of the Retail Brand Concept
Potential Mkt Segment
Identify the characteristics of your potential target market;
20/20 estimate the size of your target market and the revenue
potential.
Value Proposition
20/ 20
Conclusion
10/10
APA format/References
20/20
and Inline cites
Editing, spelling,
10/10
grammar
Total
100
Describe the bundle of benefits and features (Functional
benefits; Emotional benefits; Selfexpressive benefits)
Clear conclusions and summary
Proper APA format, 1inch margins, 12 point font, title page,
headings used.
Written at a graduate level, more than 5 error results in 0
points.
Notes to student.
