Which segment should I focus on?
It is essential to know which consumers you are addressing in your communication. This not only helps in determining your communication strategy, but it can also show that you may not be reaching certain groups that you want to reach, or for which you may not have a suitable offer.
You can choose to further strengthen your power with certain target groups, or to approach those groups where you are less strong.
Case
A manufacturer wants to better align his communication with his target group.
But which target group?
The category is often bought by families and people under 55 years old. Among families over 55, penetration is lower, but they spend a lot. This is an interesting group to further develop, given the potential.
The supplier has a market share of 70%. The share is lower among people under 55 without children and among families with children under 13 years old. Given the penetration of these groups, this is important.
As a supplier, you can choose in this case to further develop the potential of the elderly, or to focus on the youth where the penetration is already high, but where the competition is doing slightly better.
Source of the tables: the 'Category overview' (available in Basic and Advanced Pack), go to the 'Profile of customers' tab.
What is the potential among people who already buy products from the category? We are particularly interested in people who already buy many products within the category but only a few products from your own brands. Here we see that we still have a very high potential with approximately 400,000 households, who buy almost 7 million in the category in total.
Source: ‘Audience Potential’ report (available in the Premium Pack), go to the ‘HML Product vs Category’ tab.
In this analysis, we take all the receipts from the municipality’s residents and look at how many of them contain the product. Here we clearly see that the product is much more popular in the South of the country.
Source: ‘Audience Potential’ report (available in the Premium Pack), go to the ‘Region’ tab.
Conclusion
Depending on the strategy of the manufacturer, he therefore has different options: he can choose to further develop the category, or to focus on the existing category buyers and lure them away from the competitors.
Depending on the manufacturer’s strategy, he has different options: he can choose to further develop the category or focus on existing category buyers. In any case, the supplier still has sufficient potential among people who already buy the category and among customers in the North of the country.