Field Trip # 1 Market Segmentation - Cereal and Toothpast - Essay Example

Market Segmentation - Cereal and Toothpaste Cereals The company being discussed in this case is Kellogg Company. It is listed in the New York Stock Exchange. The company is the largest cereal producer in the United States and it is known for its Kellogg-cereals. The company is found in Michigan. Within the Company, it has in-house supermarket called Kellogg’s Supermarket. Among the cereals produced and sold are cold cereals. The following are the cold cereals produced and marketed by the company: Nature’s Path organic corn Puff cereals, New Morning Cocoa Crispy rice, Quaker Cereal-Puffed Wheat, Glutino Apple Cinnamon Cereal, Total Cereal, Sunbelt Fruit and Nut Granola Cereal, Wheaties Cereals, ShopRite Scrunch Crunchy cereals-16Oz, Fiber One Original Bran Cereal and Erew Rice Twice (Athanassopoulos 15).

There are two market segments targeted by the supermarket. They are looking at their customers on two segmentations. The first is done according to demographic such as gender, age, and social class and the second is based on lifestyles such as retired couples, urban professionals, and singles among others. Market segmentation helps the management of the supermarket to identify target customers and to know what motivates them to purchase the cereals. By undertaking market segmentation, it is possible for the supermarket to ensure every single detail of the product, including the size, taste, and price will appeal the target market.

The cereals have been strategically positioned over the counter in three levels, the top, middle, and bottom. The lower level cereals are targeted for children, the middle for the youth and other adults, but the top level is strategically poisoned for adults. Toothpaste The Drug Store to be discussed is Colgate-Palmolive Company located in New York. The store only sales Colgate toothpaste product to its target market both locally and internationally. The store has two-market segmentation strategy that it is using to meet the needs and demands of the clients.

The first is geographic segmentation. This is done based on urban, population factor and region. In order to meet the target population the store has a mobile van that takes the products from a house-to-house basis. The second segmentation is demographic segmentation. This is done based on age, sex, gender, and social status. There are several reasons for taking part in the segmentation process. The main reason the store takes this step is to ensure its clients get quality product in the right form and time.

For this to be possible, it has segmented the market according to region and urban factor. The other reason is that the Drug Store wishes to meet the preferences and demands of the clients according to their demographics and taste of the product. Both toothpaste and cereals share one of the segmentations that are segmentation according to demographics. The ideal reason for this similarity is that both of these products are sold to the same population who offered similar preference of products.

Self-arrangement is not considered important when selling toothpaste. Moreover, toothpaste is more of the drug than other consumable products, thus it is shelved high from reach of children.Works CitedAthanassopoulos, Antreas D. "Customer satisfaction cues to support market segmentation and explain switching behavior." Journal of business research47.3 (2000): 191-207.