Marketing Segmentation

Marketing segmentation As segmentation is a key element of marketing, we decided to focus particularly on the most relevant way to classify the population. We have decided to segment Stert’s market with 3 main criteria: - First demographic - Second sociologic - Third geographic The Socio-demographic criteria The demographic criterion is in a first time very useful to cut the population in rather homogeneous parts, in order to establish a more precise segmentation thereafter. have similar ways of living and thus different expectations from a theatre like Sterts. We think this classification is the most relevant for people under 25 years old, as the age generally gives precise information about socio-economic data. Under 25, the different the demographic segmentation is, in addition of being the most simple, quite relevant as every section have similar ways of living and thus similar expectations from a theatre like Sterts. 0-7 year old: babies and early aged children No expectation as they are too young to go to theatre 7-13 year old: young children Motivations >> leisure activity >> laugh/ spend a good moment with friends or parents In which frame? >> With the school >> With parents Appropriate product >> Short plays >> Happy outcome, funny and easily understandable (comedies, farces…) >> Interactivity >> Adapted times and dates (see the segmentation 14-18: teenagers Motivations >> Generally few motivations as they rather prefer going to the cinema/concerts or going out with friends >> View plays part of the academic program instead of reading it In which frame >> Mainly with school Appropriate product >> Plays from the academic program >> Entertaining plays (rather short, quite easy to follow)

19-25: students Motivations >> Cultural >> Social (go out with friends) >> Entertainment In which frame >> with the university for students attending theatre lessons >> with friends Appropriate product >> A wide range of plays, but it should stay rather easily accessible Then, in becomes relevant to identify important sociologic criterion, as a pure demographic segmentation is complicated and not very useful after 25 years old. We can try to separate the market in the types of households. We can identify this 3 main segments: Households working, but without any children These households generally represent young working people. In the case of divorced parents, We consider the parent who does not raise the child (the one who does should be in the segment “households with family”). People in this category generally have less constraint than families: more spare time and less financial pressure. Thus they can be seen as more susceptible to spend money and go out. The motivations are mainly cultural, social and entertainment. They can either go to the theatre with some friends, a partner, or even work colleagues. This segment is easily measurable as data about family size are available for the Caradon district council. Households with family As household with family, we mean lone parents or both parents raising several children between 0 and 18 years old. Families have significant differences compared to households without children. They have more constraints, financial pressure and generally do activities together. We will explain further, in the targeting and positioning, how these differents expectations should be handled. One can object that parents do not go out every time with their children and sometimes like to spend moment together or even separately but in a “no-child” context. They would rather be treated in this case in the “households working with no child” segment, as their expectations are very similar. This segment is measurable for the same reason as above. Retired households Retired population is interesting for many reasons in the context of a theatre market segmentation. In this category, people have few constraints: they have a high spare time, few financial obligations as generally their potential children are independent. They also are said to be more cultural sensitive than average and seek new experiences and activities they had not the time to do before.

Moreover, this part of the population is expected to increase sharply in the mid and long term (more than 5 years) in the Caradon region, to represent approximately a third of the population. Geographic segmentation A geographic segmentation seems also to be a relevant add-on to the socio demographic one. The graph below identifies the different segments: Liskeard : - highest population - nearest city from Sterts

Launceston : - population - most far city from Sterts

1. Catchment area Callington : - population - city

2. Outside catchment area , but reasonable distance < 1h30 by car 3.Over 1h30 by car

The segment 1 is the catchment area. People within this area will move to Sterts exclusively to see a play and intend to go back home just after the exhibition. Note that these people must have a car to go to Sterts. The segments 4 and 5 can be named as the tourist market, as most of the people who go to Sterts didn’t move exclusively to see a play. Indeed, there is few chances that people travel more than 1 hour min just to see a 2 hours play. They generally include this activity in a broader trip usually for tourism purpose. They should thus be treated differently.

This should actually help to set a priority hierarchy in reaching the more relevant segments stated above.)

Targeting A/ selected demographic and sociologic segments Some segment require a particular attention, others should be set aside, at least in a first time. Indeed, setting priorities is critical for an organisation like Sterts, who rely on very few financial means. It is thus capital to focus on the top prioritised segments to control promotion and advertising investment and be more efficient. Try to attract everybody would be costly, time consuming and not efficient for Sterts. We have chosen to target 4 segments in our Marketing plan: Priority 1 Families The core segment of Sterts. We note that within this category, a more fine analysis can be done: Indeed, families with children between 0 and 7 and over 14, are less likely to go to the theatre with their children. It is easily understandable for the 0-7; for the 14-18 it can be justified by the fact that usually teenagers of 14 and over have other centre of interest than the theatre (see segmentation for 15 to 18 children). Sterts should thus adapt their mix for family with children between 7 and 13, which represent the most interesting part of the segment. This segment illustrates perfectly what could be the motto of Sterts : “A theatre for all” 7-to 13 years old children The reasons are quite obvious as this segment is tightly related to the former one. Yet the difference is that children are not the buyers, the parents or the schools are. Households working, with no child This segment has some relations with the family segment, as this segments as mostly the same expectations as the category “parents who want to go out without children”. Sterts is not only a theatre for children but intend to provide high quality plays for adults as well. Positioning on an adult segment is thus very important as it is an other part of the core customers for Sterts. Priority 2 Retirees Retirees represent a high potential segment as we have seen formerly, both for demographic and for behavioural reasons. They have lots of expectations in common with the “adult market” but promotion and pricing tools for these people could be slightly different. Sterts should think about focusing on this segment in a second time with a specific mix. We can add that these segments are particularly relevant as they represent a great amount of the population, are easily reachable and can be gathered for some of their characteristics in term of positioning and marketing mix.

B/ Geographic targeting We advise Sterts to focus on the catchment area itself in first priority, but in a second priority consider the area situated at less than 1h30 by car (segment 2). Try to cover a wider area would be less efficient plus time and resources consuming. People in the segment 2 (tourists or even inhabitants) are an interesting target as they are likely to travel in Sterts area, seeing a play at Sterts can therefore be part of their trip in the region. Sterts should thus identify the main touristic cities in the segment 2 and focus on doing efficient partnerships with hotels, cultural and information centres to advertise about the qualities of the theatre. C/ Reason why we rejected the other segments Rejection of segment 0-7 seems obvious. Concerning the segment 14-18 and 19-25, teenagers and students, we consider that they do not represent attractive segments for Sterts compared to the investment they would require. Teenagers barely go to the theatre and generally have other centres of interest; in addition, as they generally express a desire of independence toward their parents, they are less likely to go out with their family. Travelling by car being the only way to go to Sterts, teenagers should not been seen as a relevant target for our marketing plan. The 19-25 segment is not consistent in this region : students are attracted by bigger cities offering good universities and very often, they don’t have any car. They should thus been set aside as well.

Positioning Regarding the previous targeting we have made, Sterts should focus on two different types of positioning. 1) The first one should be designed for the families segment. In this segment, Sterts has to focus both on the buyers, the parents, but also on the children, as they are also customers. Sterts must in this case be seen as “The Theatre for all”, through accessible plays and prices. This should be seen also as an original experience parents and children can share together. As an open air theatre with a lot of available space for children to play outside and picnic facilities, Sterts has to prove families that it is the place to go for them. 2) The second positioning is more towards the “adults segment”. In this segment, Sterts should be seen first as a quality theatre: even if the actors are all amateurs, customers have to feel plays are made by professionals (in terms of the writing, the decors, costumes, actors…). With an attractive price, this would make Sterts the best value for money theatre in the area, providing in addition the experience of a entirely natural environment.