Market Segmentation
Eric Harrison08/18/2015Companies today need to recognize that all of their products do not appeal to every consumer and need to segment and target specific groups in order to make their product successful. Every consumer has different expectations, lifestyles, price ranges, and needs based on things such as their geographic location or psychographic reasons. Therefore, the robotic lawn mower must cater to specific segments and decide which target markets to enter to have success, just like every other product that is introduced in the marketplace. There are a few potential segments of consumers that would be the target market for the new robotic lawn mower. The first segment that would be appealing is homeowners with large yards, who do not have the time or energy to mow the yard themselves. Mowing the yard can be a tiring, time-consuming task, and by introducing the new robotic lawn mower, it would eliminate the hassle of wasting time making sure that the lawn stays beautiful. Mowing the yard wastes time, when that person could be doing something else valuable with their time. That is why people often times higher a lawn service, so that they can spend their time more wisely and not worry about mowing their lawn. However, with this new product, it eliminates that problem.Another segment that is appealing for the robotic lawn mower is elderly people or disabled consumers who cannot physically mow their lawn. Since being outdoors can be taxing on elderly people, having the robot lawn mower do all the work would be an appealing product for this group. Rather than hiring a lawn service, buying one of these lawn mowers would eliminate the recurring fee of paying for a lawn service, and instead just paying to buy the new lawn mower. Although, it may come at a steeper price, the benefits of the lawn mower are superior to any other lawn product available.
A third market segment that this new lawn mower would thrive is in certain geographic regions. By using geographic segmentation, the robotic lawn mower would be ideal for consumers in regions where it is too hot, or humid, to mow and can offer convenience for when temperatures are abnormal and do not want to risk their health or well-being to mow the grass. Areas such as Florida, Arizona, and California, for example, often times have unfavorable temperatures that can make certain people uncomfortable of being outside for long periods of time. Being exposed to the sun for hours can be dangerous to one’s health and can dehydrate people or even develop worse health conditions if severe enough. Therefore, by introducing the product in these geographic regions, it could be an appealing market segment to target. Overall, the main benefit of the new lawn mower concept is convenience. Although the price is unknown, a higher price may be necessary since it benefits the consumer more than an average lawn mower. Therefore, with a careful analysis of which markets to target, the robotic lawn mower will be able to thrive in certain market segments.After selecting some of the possible market segments, the marketing team of the robotic lawn mower must decide which segments to enter, by targeting segments. There are many factors to consider when evaluating different market segments such as the market segment size and its attractiveness. One of the things the marketing development team can do to assess which segments to target is through an analysis of its competitors in a market, threats of new competition arising in that segment, if there is substitute products that could limit profits, and buyer power, or supplier power. This analysis is known as the Porter’s five forces model and can help determine a company’s strategy by assessing their profitability and overall attractiveness. Also, analyzing the entire lawn mower industry can be helpful to develop a clear understanding of potential advantages this product can take, improve upon weaknesses, and, ultimately, avoid taking a wrong step in the development.