STRATEGY ALTERNATIVES AND RECOMMENDED STRATEGY - Nurafifah Md Kasian's Website

1. MARKETING SEGMENTATION

Marketing segmentation refers to division of the total market into smaller, relatively homogeneous groups. There is four basic requirements to segmenting the market effectively which is the first, and the market segment must present measurable purchasing power and size. Secondly, marketers must find a way to effectively promote and serve the market segment. Thirdly, marketers must then identify segments large enough to give them good profit potential. Last but not least, the firm must aim for segments that match its marketing capabilities. By using marketing segmentation, a business can serve their products and services into the market effectively and efficiency. Hence, our company is Big Apple Donuts&Coffee.

This product has franchise in worldwide, such as Thailand, Malaysia, Singapore, China, Vietnam and Middle East. We are going to focus on local franchise because there are 58 stores in Malaysia. There are four common bases for segmenting consumer markets which is geographic segmentation, demographic segmentation, psychographic segmentation, and product-related segmentation.

Geographic Segmentation

Geographic segmentation refers to division of an overall market into homogeneous groups based on their location. Big apple focused on three states in Malaysia which is Penang, Kuala Lumpur and also Johor. The first store of Big Apple Donuts&Coffee was held at The Curve shopping mall, Kuala Lumpur. Big Apple focused its business on these three states is due to the economy and the population rate of these three states is the highest in Malaysia. Besides that, Big Apple realized that there are many people in these three states are lack of time to enjoy their meal because of busy on their work so that they can enjoy donuts with instant and release their stress when looking on the unique design of donuts at the same time.

Demographic Segmentation

Demographic segmentation also known as socioeconomic segmentation refers to the division of an overall market into homogeneous groups based on variable such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family life cycle.Big Apple donuts are suitable to all gender of donut lovers, it provided low sugar donuts so that elder donut lovers can enjoy their favorite with healthy. It also attracted a lot of children and teenagers due to different name, taste and the unique design of flower and color that apply at the top of different donuts. Besides that, it is also suitable for working classes who are lack of time to enjoy their meal. They can enjoy donuts and coffee for instant. Low-sugar and low-fat produce by Big Apple donuts also full-fill the needs of people who want to maintain their stature of body. Big Apple selling their donuts at RM2.50 every piece, so it is suit for all stages of income group.

Psychographic Segmentation

Psychographic segmentation is the division of a population into groups having similar attitudes, social class and lifestyles. Big Apple located all the stores at shopping malls to aims the customers who likes to shopping because shopping is an activity for relax and people who relax they will eat something special and they will purchase something with very nice looking and unique design. Big Apple donuts may full fill customers need in this situation because of the unique and nice looking design at the top of every different donut. Besides that, Big Apple also aims donut lovers and they design their donuts such as taste and flower to compete with competitors in the market. The standard price of Big Apple donuts are also suit for all social classes such as upper-upper, upper-lower, upper-middle, lower-middle, working class, as well as lower class.

Product-related Segmentation

Product-related segmentation involves dividing a consumer population into homogeneous groups based on their relationship to the product. This segmentation approach can take several forms which are firstly, segmenting based on the benefit people seek when they buy a product. Secondly, segmenting based on usage rates for a product. Last but not least is segmenting according to consumer's brand loyalty toward a product. Segmenting by benefit sought focused on attributes people seek and benefits they expect to receive from a good and service. Consumers who quaff Big Apple donuts are not only looking for dose of donuts. They are also willing to pay extra to savor a pleasant experience, one that markets them feel pampered and appreciated. Women and old folks purchase Big Apple donuts believe it giving them a great tasting and healthy food. Segmenting by usage rates according to the amounts of product they buy and use. Segmenting by brand loyalty segmenting method groups consumers according to the strength of the brand loyalty they feel toward a product. Companies spar for loyalty on just about every front. Recently, Big Apple announced a special promotion "buy one free one" coinciding with those hours.

2. TARGET MARKET

Target market refers to a group of customers or people that the business has decided to aim its marketing effort and ultimately it's merchandise towards. Big apple Donuts and Coffee are aim to all culture, every generation, and every stages of donuts lover. It provide low-sugar donuts to solve the problem for donut lovers especially female who like to eat donuts but also consider to maintain their stature at the same time. Besides that, the low-sugar donuts are also suit for the elder donut lovers so that the elder customers can enjoy Big Apple donuts with healthy and happiness.

Big Apple are using undifferentiated marketing strategy also called mass marketing strategy for reaching the target markets which is strategy that focuses on producing a single product and marketing it to all customers. Big Apple provided a single product (donuts) to all customers with different culture, generation, stages, ages, and so on. Big apple had success to marketing its product not only local customers but as well as worldwide included China, Thailand, Vietnam, and the Middle East.

Big Apple also using concentrated marketing strategy also known as niche marketing strategy which is focusing marketing efforts on satisfying a single market segment to reach the target markets. It appeals to the donut lovers of the world. Fans can found Big Apple shop at most shopping malls, where they can sample favorites' more than 20 types of donuts such as "Californian Almond", "Teen Queen", "Milky Way" and so on.

3. POSITIONING

Positioning places a product in a certain position in the minds of prospective buyers so marketers can create messages that distinguish their offerings from those of competitors. Big Apple used attributes strategy with a tag-line of "Every piece is a Masterpiece". What actually pop out in consumers' minds once we mention about Big Apple donuts? We want customer think of our donuts is more creativity than other competitors' donuts such as Dunkin' Donuts. Big Apple provided some unique donuts have a unique flavor such as durian flavors pecial for durian lovers. Besides that our donut is made in more healthy way, our donuts suit for any gender, ages, stages of people no matter is children, teenagers, old folks, low middle and high income and so on.