[Company name]
MNM2604
Assignment 3
(100% CORRECT
GUIDE) Semester
1 2025 - DUE 30
April 2025
[Document subtitle]
user
[Date]
, INTRODUCTION You must provide an introduction for your assignment and
highlight issues that will be discussed in the assignment
. QUESTION 1 (18 marks) 1.1 Based on the market segmentation principles in
chapter 5, formulate a microsegmentation strategy for Lungilicious fresh
indigenous juice, using seven variables in the micro-segmentation. You will
receive 7 marks for explaining each variable of micro-segmentation in your
own words).
To create a microsegmentation strategy for Lungilicious Fresh Indigenous Juice, it is
important to identify specific market segments that can be targeted using detailed and precise
segmentation variables. Microsegmentation involves dividing a broad consumer or business
market, normally consisting of potential customers with diverse needs and preferences, into
smaller sub-groups based on very specific characteristics.
Here are seven variables for microsegmentation that could be used to target the most
appropriate customers for Lungilicious:
1. Demographic Segmentation
This involves segmenting the market based on statistical factors such as age, gender, income,
education, and family structure. For Lungilicious Fresh Indigenous Juice, the following could be
key demographic groups:
Age: Lungilicious could focus on different age groups, such as young adults (18-30) who
might be more health-conscious and interested in fresh, nutritious beverages, or middle-
aged consumers (31-45) who prioritize wellness.
Income: Higher-income individuals who are willing to pay a premium for fresh,
indigenous juice varieties could be targeted. Alternatively, the juice could be marketed as
an affordable health option for lower-middle-class segments, emphasizing value and
nutrition.
Family Structure: Families with young children could be a prime demographic,
especially if the product is marketed as healthy, organic, and safe for all ages.
2. Geographic Segmentation
Segmenting by location allows businesses to target consumers based on where they live or work,
which can be critical for product delivery and availability.
, Urban vs. Rural: Lungilicious can focus on urban areas, where health-conscious
consumers are likely to be more open to trying fresh, locally sourced juices.
Alternatively, rural areas could be targeted by highlighting the product’s use of
indigenous ingredients and its connection to local agriculture.
Region or Climate: If Lungilicious operates in South Africa, it could target coastal areas
where consumers may be more inclined to purchase refreshing, cool beverages or hot
inland areas where they might need hydration-focused drinks.
3. Behavioral Segmentation
Behavioral segmentation divides consumers based on their knowledge of, attitude toward, use of,
or response to a product.
Usage Rate: Segmenting consumers based on their juice consumption habits could lead
Lungilicious to focus on heavy users (those who consume juice daily or multiple times a
day) or light users (those who consume juice sporadically or on special occasions).
Benefits Sought: Some customers may be looking for refreshing beverages, while others
may prioritize health benefits, such as detoxification, immune system support, or weight
loss. Lungilicious could position its products according to these different benefit needs.
Loyalty: Loyal customers who have consistently purchased Lungilicious can be further
segmented for special offers or rewards, reinforcing customer retention.
4. Psychographic Segmentation
This approach divides the market based on lifestyle, interests, attitudes, and values.
Health-Conscious Consumers: Individuals who are passionate about their health and
wellness would be an ideal market for Lungilicious, especially if they view juice as a
nutritious addition to their diet. These consumers may seek organic, preservative-free,
and natural products.
Eco-Conscious Consumers: People who prioritize sustainability and ethical sourcing
would resonate with the indigenous and local sourcing aspect of Lungilicious juices,
making them a targeted group for the brand.
Cultural and Ethnic Groups: As the juice uses indigenous ingredients, Lungilicious
could target local consumers who feel a cultural or emotional connection to these
ingredients, promoting a sense of pride and belonging.
5. Occasion-Based Segmentation
This variable focuses on segmenting the market based on specific occasions or events that may
trigger the use of the product.
Daily Consumption: Offering options for everyday consumption, such as juices for
breakfast, pre- or post-workout hydration, or afternoon refreshment.
MNM2604
Assignment 3
(100% CORRECT
GUIDE) Semester
1 2025 - DUE 30
April 2025
[Document subtitle]
user
[Date]
, INTRODUCTION You must provide an introduction for your assignment and
highlight issues that will be discussed in the assignment
. QUESTION 1 (18 marks) 1.1 Based on the market segmentation principles in
chapter 5, formulate a microsegmentation strategy for Lungilicious fresh
indigenous juice, using seven variables in the micro-segmentation. You will
receive 7 marks for explaining each variable of micro-segmentation in your
own words).
To create a microsegmentation strategy for Lungilicious Fresh Indigenous Juice, it is
important to identify specific market segments that can be targeted using detailed and precise
segmentation variables. Microsegmentation involves dividing a broad consumer or business
market, normally consisting of potential customers with diverse needs and preferences, into
smaller sub-groups based on very specific characteristics.
Here are seven variables for microsegmentation that could be used to target the most
appropriate customers for Lungilicious:
1. Demographic Segmentation
This involves segmenting the market based on statistical factors such as age, gender, income,
education, and family structure. For Lungilicious Fresh Indigenous Juice, the following could be
key demographic groups:
Age: Lungilicious could focus on different age groups, such as young adults (18-30) who
might be more health-conscious and interested in fresh, nutritious beverages, or middle-
aged consumers (31-45) who prioritize wellness.
Income: Higher-income individuals who are willing to pay a premium for fresh,
indigenous juice varieties could be targeted. Alternatively, the juice could be marketed as
an affordable health option for lower-middle-class segments, emphasizing value and
nutrition.
Family Structure: Families with young children could be a prime demographic,
especially if the product is marketed as healthy, organic, and safe for all ages.
2. Geographic Segmentation
Segmenting by location allows businesses to target consumers based on where they live or work,
which can be critical for product delivery and availability.
, Urban vs. Rural: Lungilicious can focus on urban areas, where health-conscious
consumers are likely to be more open to trying fresh, locally sourced juices.
Alternatively, rural areas could be targeted by highlighting the product’s use of
indigenous ingredients and its connection to local agriculture.
Region or Climate: If Lungilicious operates in South Africa, it could target coastal areas
where consumers may be more inclined to purchase refreshing, cool beverages or hot
inland areas where they might need hydration-focused drinks.
3. Behavioral Segmentation
Behavioral segmentation divides consumers based on their knowledge of, attitude toward, use of,
or response to a product.
Usage Rate: Segmenting consumers based on their juice consumption habits could lead
Lungilicious to focus on heavy users (those who consume juice daily or multiple times a
day) or light users (those who consume juice sporadically or on special occasions).
Benefits Sought: Some customers may be looking for refreshing beverages, while others
may prioritize health benefits, such as detoxification, immune system support, or weight
loss. Lungilicious could position its products according to these different benefit needs.
Loyalty: Loyal customers who have consistently purchased Lungilicious can be further
segmented for special offers or rewards, reinforcing customer retention.
4. Psychographic Segmentation
This approach divides the market based on lifestyle, interests, attitudes, and values.
Health-Conscious Consumers: Individuals who are passionate about their health and
wellness would be an ideal market for Lungilicious, especially if they view juice as a
nutritious addition to their diet. These consumers may seek organic, preservative-free,
and natural products.
Eco-Conscious Consumers: People who prioritize sustainability and ethical sourcing
would resonate with the indigenous and local sourcing aspect of Lungilicious juices,
making them a targeted group for the brand.
Cultural and Ethnic Groups: As the juice uses indigenous ingredients, Lungilicious
could target local consumers who feel a cultural or emotional connection to these
ingredients, promoting a sense of pride and belonging.
5. Occasion-Based Segmentation
This variable focuses on segmenting the market based on specific occasions or events that may
trigger the use of the product.
Daily Consumption: Offering options for everyday consumption, such as juices for
breakfast, pre- or post-workout hydration, or afternoon refreshment.
