, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Assignment Introduction
This assignment provides a practical and analytical exploration of key entrepreneurial and marketing
principles as they apply to the business Lungilicious, a South African venture that produces and sells
fresh juices made from indigenous fruits and herbs. Drawing from various chapters in the prescribed
textbook and study guide, the assignment focuses on important concepts such as the Product Life
Cycle (PLC), pricing strategies, branding elements, and entrepreneurial decision-making. Each
question addresses specific business development areas—providing theoretical insights supported by
evidence from the case study. The overall aim is to demonstrate how these principles can be applied
in a real-world context to help a growing enterprise like Lungilicious navigate challenges, seize
opportunities, and establish a sustainable market presence.
Question 1
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.
Micro-Segmentation Strategy for Lungilicious Fresh Indigenous Juice
To effectively market Lungilicious fresh indigenous juice in a business-to-business (B2B) context, a
detailed micro-segmentation strategy can be developed using seven key variables.
Micro-segmentation allows businesses to go beyond broad market segments by identifying smaller,
more homogeneous groups based on specific characteristics. This enables Lungilicious to tailor its
approach to meet the unique preferences and needs of each segment more effectively. The following
strategy outlines how Lungilicious can apply these seven micro-segmentation variables.
1. Key Criteria
This variable focuses on the factors that business customers consider most important when selecting
a supplier. These may include price, quality, delivery reliability, or product uniqueness. For
Lungilicious, the emphasis should be on targeting businesses—such as health food retailers, cafes, or
wellness centers—that prioritize high-quality, natural products with health benefits. These customers
are likely to value the unique indigenous ingredients and the nutritional value of Lungilicious juices
over simply finding the lowest price.
2. Purchasing Strategies
Businesses adopt different purchasing strategies based on their goals and values. Some prioritize cost
savings, while others seek sustainable or ethical sourcing practices. Lungilicious should segment and
target businesses that align with environmentally friendly or health-conscious purchasing strategies.
These could include companies looking to source locally made, eco-conscious products, or those
interested in long-term supplier partnerships, which aligns well with Lungilicious’s values and
communication strengths.
3. Structure of the Decision-Making Unit (DMU)
The decision-making unit in a business refers to the group of individuals involved in purchasing
decisions. This structure varies by organization size and industry. Lungilicious can use this variable
to segment businesses based on whether purchasing decisions are made by individuals (like a small
café owner) or larger teams (such as a retail chain's procurement department). Understanding the
DMU structure helps in customizing communication and engagement strategies for each target
group.
Assignment Introduction
This assignment provides a practical and analytical exploration of key entrepreneurial and marketing
principles as they apply to the business Lungilicious, a South African venture that produces and sells
fresh juices made from indigenous fruits and herbs. Drawing from various chapters in the prescribed
textbook and study guide, the assignment focuses on important concepts such as the Product Life
Cycle (PLC), pricing strategies, branding elements, and entrepreneurial decision-making. Each
question addresses specific business development areas—providing theoretical insights supported by
evidence from the case study. The overall aim is to demonstrate how these principles can be applied
in a real-world context to help a growing enterprise like Lungilicious navigate challenges, seize
opportunities, and establish a sustainable market presence.
Question 1
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.
Micro-Segmentation Strategy for Lungilicious Fresh Indigenous Juice
To effectively market Lungilicious fresh indigenous juice in a business-to-business (B2B) context, a
detailed micro-segmentation strategy can be developed using seven key variables.
Micro-segmentation allows businesses to go beyond broad market segments by identifying smaller,
more homogeneous groups based on specific characteristics. This enables Lungilicious to tailor its
approach to meet the unique preferences and needs of each segment more effectively. The following
strategy outlines how Lungilicious can apply these seven micro-segmentation variables.
1. Key Criteria
This variable focuses on the factors that business customers consider most important when selecting
a supplier. These may include price, quality, delivery reliability, or product uniqueness. For
Lungilicious, the emphasis should be on targeting businesses—such as health food retailers, cafes, or
wellness centers—that prioritize high-quality, natural products with health benefits. These customers
are likely to value the unique indigenous ingredients and the nutritional value of Lungilicious juices
over simply finding the lowest price.
2. Purchasing Strategies
Businesses adopt different purchasing strategies based on their goals and values. Some prioritize cost
savings, while others seek sustainable or ethical sourcing practices. Lungilicious should segment and
target businesses that align with environmentally friendly or health-conscious purchasing strategies.
These could include companies looking to source locally made, eco-conscious products, or those
interested in long-term supplier partnerships, which aligns well with Lungilicious’s values and
communication strengths.
3. Structure of the Decision-Making Unit (DMU)
The decision-making unit in a business refers to the group of individuals involved in purchasing
decisions. This structure varies by organization size and industry. Lungilicious can use this variable
to segment businesses based on whether purchasing decisions are made by individuals (like a small
café owner) or larger teams (such as a retail chain's procurement department). Understanding the
DMU structure helps in customizing communication and engagement strategies for each target
group.
