Segmentation | marketingplan

Introduction

Socio-economic and geographic segmentaion

Marketing strategy

Segmentation

Introduction

Given the fact that technology is taking a bigger and bigger place in our daily life, there are a lot of different market segments. Analyzing these different segments will allow us to see which are more responsive to our supply and will allow us to define our marketing strategy.

Socio-economic and geographic segmentaion

Firstly, we take into account the geographic segmentation. The graphs show the population on each continent and the proportion of population of each continent globally.

Then, for the socio-economic segmentation, we will consider the social status of the people: if they are students, employed, officers, independents, unemployed or retired. So this criterion divides our market into 5 categories. Then, we will take into account if the consumer has got a smartphone or not.

Graph of population by age and labour status, EU-28, 2013 (%)

It is also important to see the smartphone penetration worldwide. In fact, it is interesting for us to see if many people use a smartphone because almost all the Mykronoz watches need a smartphone to connect with.

Psycho-graphic segmentation

Smartphone penetration rate as share of mobile phone users worldwide from 2010 to 2019, by region

It is also important to know which people use a smartphone all around the world. With this graph, we can see which category of age has a smartphone. The majority of people who owns a smartphone are the 25-34 aged people. So, we can see which age group will be more inclined to buy a smartwatch.

Number of smartphone users in Middle East and Africa from 2014 to 2019 (in millions)

Number Number of smartphone users in the Asia-Pacific region from 2014 to 2019 (in millions)

Number of smartphone users in Western Europe from 2014 to 2019 (in millions)

After looking at the number of smartphone’s users, we decided that focusing on Western Europe is more efficient than Asia-Pacific. In fact, too many competitors will be present on the market of wearable devices. Moreover, in Africa and Middle East, we can observe that there are less users of smartphones and the majority of the smarwatches Mykronoz have to be connected with smartphones.

Number of smartphone users in Western Europe from 2014 to 2019 (in millions)

On the previous graph, we can notice that Asia Pacific is a big market and that in 2016, according to the previsions; it will be the biggest with 194.67 millions wearable devices.For instance, Central and Eastern Europe is a little market with only 5 millions of wearable devices but it will grow and in 2020 there will be 45.85 millions wearable devices.Latin America is a little market: 1.83 millions wearable devices, and will grow. The previsions for 2020 are 26.08 million wearable devices. Middle East and Africa is also a little market. => So it grows but less than in Western Europe or America.North America is the biggest market for the moment and the previsions for 2020 are 180.96 million of wearable devices.

It In Western Europe, in 2015, the number of wearable devices amounted to 16.75 million and in 2020 the previsions are 127.64 million for the wearable devices. It is a promising market. Moreover it is the region where the watches are designed, so there will be less costs of transport. We could take into account North America, Western Europe and Asia for our segmentation. These 3 big markets are promising.

It In the table below, we can also notice that Swiss watches are exported to many countries around the world, and they have success in European countries like Italy or France or UK . Switzerland exports also watches to USA. Asia could also be a potential market. In fact, we can notice that Swiss watches are exported to Hong Kong, China, Japan, Singapore.

Socio-demographic segmentation

Socio-demographic segmentation

We also take into account the socio-demographic criteria, more precisely we will use data referring to the age of population worldwide. The different categories are: less than 15, 15-44, 45-64, and more than 64. It is important to point out that age classes are highly correlated with employment statuses.

Population by age groups in percentage to total - continents and subregions

- data for July 2013

Psycho-graphic segmentation

Psycho-graphic segmentation

According to our survey (made in developed countries):

93% have a smartphone
46% are interested in buying a smartwatch ( only 4% of the 210 participants already have a smartwatch)
75% would wear it every day and 23% only for sport
Quality, price and design are very important for them to be satisfied.
Which app do they want the most?: 77% time - 69% calories - 56% heart rate - 55% messages - 52% alarm clock - 50% notifications. (Sport 60% and normal watch 54%)

According to these results, we have made these profiles based on the purchasing criteria, price-quality-design:

Thrifty:

Attracted by the low prices.

Impulsive:

Interested in pleasing himself. If he likes the designs, he’ll buy the watch. Customization attracts him too.

Comparator:

Think before buying. Compares the prices and compares the quality by asking advices from his friends or a seller.

Niche: Is it possible to have a niche on the market ?

According to our survey, the category of 18-40 aged people are more interested in medical applications and not the old people as we could predict. But although we don't take that into account, we have seen in our analysis part that there is a new potential market : market of medical smartwatches. But these smartwatches are of too advanced technologies compared to the means of Mykronoz.

Another justification is that on the 210 participants of our survey, only 4% has got a smartwatch and 54% are not interested in buying one smartwatch! Moreover, the applications that interest them the most are those in relation to sport activities but there already too many competitors at this level. According to our analyses, it is not possible to have a niche on the market.