Question 2 (a)

Market segmentation, applied to organic skin care and electric two-wheelers

9 marks

Time to write
About 18 minutes
Topic
Segmentation, targeting, positioning

Question

Question 2 (a) · 9 marks

What is meant by market Segmentation? Suggest ways to segment the market for each of the following:

  1. Organic Skin Care Product

  2. Electric Two-Wheeler

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • What is meant…?Suggest…Two asks in one question: answer both.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Meaning of market segmentation and its bases 3 marks 5 min
  3. 2 Segmentation of the organic skin care market 3 marks 5 min
  4. 3 Segmentation of the electric two-wheeler market 3 marks 5 min
  5. Check: every ask answered, key terms underlined 2 min

Easy marks

  • Step 1 opens with the meaning: a one-line definition, the quickest mark in it.

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Meaning of market segmentation

Market segmentation is the division of a heterogeneous market into smaller, relatively homogeneous groups of buyers with similar needs, characteristics or behaviour, each of which can be reached with a distinct marketing mix. It rests on four main bases: geographic (region, city size, climate, rural or urban), demographic (age, gender, income, occupation, family life-cycle), psychographic (lifestyle, values, personality, social class) and behavioural (benefits sought, occasions, usage rate, loyalty, readiness to buy). A segment is useful only if it is big enough to serve, can be measured and reached, behaves differently from other segments and can be served with a practical programme. Segmentation helps the firm match its offer to buyers' needs, use resources efficiently and find gaps that competitors have missed. It also guides the choice of media and channels: a segment that shops online is reached differently from one that buys at the local chemist.

Picture itMarket segmentation, applied to organic skin care and electric two-wheelers

1On the table the buyers sort themselves: students, families, office-goers, riders.

Market segmentationDividing the market into groups

2Her hand hovers, then picks the groups her scooters fit best.

Market targetingChoosing one or more groups to serve

3And on the street, those are exactly the hands on the handlebars.

Segmentation divides the marketTargeting selects from it

(i) Organic skin care product

BasisSuggested segments
DemographicWomen and, increasingly, men aged 18–45; middle and upper-income households; working professionals and college students
GeographicMetro and tier-1 cities first; humid coastal versus dry northern climates (different moisturising needs)
PsychographicHealth- and environment-conscious, natural-living lifestyles; buyers who prefer ayurvedic or chemical-free products; ethical consumers who avoid animal testing
BehaviouralBenefits sought (gentle care for sensitive skin, anti-ageing, acne control, sun protection); regular versus occasional users; gifting occasions

Most useful bases: psychographic (lifestyle and values) and behavioural (benefits sought), refined by income and age. A suitable target might be urban, health-conscious women aged 22–40 with sensitive skin who are willing to pay more for certified natural ingredients, reached through online channels and premium stores.

(ii) Electric two-wheeler

BasisSuggested segments
DemographicCollege students and young working adults (18–30); women commuters; middle-income families; delivery workers
GeographicLarge and mid-sized cities with good charging access; states offering subsidies; flat urban areas versus hilly regions
PsychographicTech-savvy early adopters; environmentally conscious buyers; cost-conscious practical commuters
BehaviouralUsage (short daily city commute versus long distances); benefits sought (low running cost, low maintenance, smart features, speed); fleet buyers (delivery companies) versus individual buyers

Most useful bases: behavioural (daily distance and benefits sought) and geographic (charging availability), with demographic variables. Possible segments are low-speed scooters for students and short commutes, performance scooters for young professionals, and rugged, high-capacity models for delivery fleets.

Conclusion

Segmentation lets each marketer choose clear target groups, natural-living urban consumers for organic skin care, city commuters and delivery fleets for electric two-wheelers, and design products, prices, channels and messages that fit them. The segments should be reviewed as the markets mature and new buyer groups emerge.

Where the 9 marks sit

#ComponentMarks
1Meaning of market segmentation and its bases3
2Segmentation of the organic skin care market3
3Segmentation of the electric two-wheeler market3
Total9
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