ASSIGNMENT 5.2 – SEGMENTATION

DUC HIEP – TRAN LAM – MINH QUANG

Target

ConsumersHow to

TargetSegmentation

REVIEW CONTEXT

The Lumia 640 and 640 XL were launched in March 2015 are solid, mid-range devices that

follow in the footsteps of the many other Lumia Windows phones that came before them.

Microsoft launched mid-range smartphone in the market with technological advancement

because:

+ Microsoft Lumia Positioning: ACHIEVE MORE+ Effort to bring Windows Phone to reach more users

= > Persuasion is the programmer or write applications for Windows Phone , and then back to "invite " users to the platform through the application of international high quality programmers

- 5 inch

- Front camera 1MP

- Rear camera 8MP with Zeiss lens

- 3.490.00₫

- 5’’7 inch

- Front camera 5MP

- Rear camera 13MP with Zeiss lens

- 4.590.000₫

LUMIA 640 LUMIA 640 XL

Both have long battery, Zeiss lens, tempered glass screen, easy

to read on screen under sunshine , HD Display, 2 SIM

In short, Lumia 640XL is like Lumia 640’s “Big Brother” with more

advanced: Larger screen, Higher technology in camera

WHICH SEGMENT LUMIA 640I640 XL TARGETED?

WHY THIS SEGMENT?

IN TERMS OF

AFFORDABILITY

Method we use to define target segment: To compare LUMIA 640I640 XL with criterias in Segment Groups

Lumia 640

3.490.000đ

Lumia 640 XL

4.590.000₫

OPTIMUM SEEKER, WANNA BE AND TECH MANIAare 3 segments that can afford this phone

(Vnexpress.com)

In short, Tech mania is out of the list, 2 segments that should be considered are

OPTIMUM SEEKERS & WANNA BE

IN TERMS OF

PRODUCT FUNCTIONIN TERMS OF

COMPETITION

OPTIMUM SEEKER

WANNA BE

TECH MANIA

TECH MANIA tends to prefer Apple and Samsung

to Nokia

(base on % recommendation and 1st favorite)

So, LESS ADVANTAGEOUS for Lumia to compete with iPhone and Galaxy in TECH MANIA segment

Function of Lumia 640 XL is too simple to strongly attract TECH

MANIA, who wants the advancement of technology itself” + has “high technological knowledge

OPTIMUM SEEKER, WANNA BE AND TECH MANIAWhich one?

WANNA BE

“Mobile phones define my

status, how

I should be treated and my

achievement in life”

OPTIMUM SEEKER

“I want the feeling of being served

by technological advancement and

enjoy the way it improves my life

experience”

IN SHORT, TARGETED SEGMENT IS

OPTIMUM SEEKER

Product features and Microsoft Lumia brand positioning which is

is not fit well with Wanna be segment

IN TERMS OF

BUSINESSIN TERMS OF

PERSONAL TRAIT

Segment size and value size of

Optimum seeker IS HIGHER than Wanna be

OPTIMUM SEEKER & WANNA BEWhich one?

TARGET CONSUEMR

OPTIMUM SEEKER (25%)

Young officers /StudentsAge: 20 – 30Income: Middle to high class AB

DEMOGRAPHIC

- Have certain knowledge, can take full advantage of phone

- Looking for things that can help them to have a comfortablelife.

LIFESTYLE & ATTITUDE

- 81% use touch screen smartphone

-45% intend to buy phone (98% among would buy smartphone- 54% budget over 10 mil

SMARTPHONE USAGE

Reference, OS, design, easy to use, functions, officeutilities, screen size, sound quality, design.

DRIVERS

I want a device which brings me more flexibility to switch easily between work and play

INSIGHT

PropositionMicrosoft Lumia 640-640XL | Work & Play on the go

With a 5.7 inch HD display and powerful mobile productivity tools,

it has everything you need to achieve more.

I want a device

which brings me

more flexibility to

switch easily

between work

and play

PRODUCT PRICE PLACE PROMOTION

We can define…

Office utilities is one of Drivers in Key Buying Factors – ranked 6th

However, entertainment are still the most important functions OPTIMUM SEEKERS desired

Entertainment

Play Work

HD 5,7 inch screen, display clearly and sharply

Long battery

Fashion design and color

Camera 5 MP front of side main camera with 13 MPTrang bị ống kính Zeesiss

Enjoy free moments with nice apps such as

TripAdvisor, WhatsApp, Instagram, Flipboard

One-year Office 365 subscription(chưa được trang bị trên các Lumia a trước)

1 TB of OneDrive storage

60 muites/month on Skype

An extra Office license your PC/Table

Ready for Windown 10

Lumia 640

3.490.000đ

Lumia 640 XL

4.590.000₫

PRODUCT PRICE PLACE PROMOTION

From Segmentation…

We can define…

- Set price below 5 millions

- Launching 2 model with small price different to

encourage them buying better one (because they are

OPTIMUM SEEKERS – always finds better one)

Outcomes…- Smartphone – Below 5 millions group is

BIGGEST SIZE – 36%

Strategy…

Lumia 640I640 XL should Lumia 640 < Lumia 640 XL = 1.1 Millions

Thegioididong stores

PRODUCT PRICE PLACE PROMOTION

From Segmentation…

We can define…

- Distribute at 2 above place

Outcomes…-Optimum seekers bought mobile phone from

RETAILERS THE MOST: 62%

- Private stores that sell mobile phone are also a

GOOD PLACE TO DISTRIBUTION: 14%

Strategy…

Lumia 640I640 XL should

Fptshop stores

PRODUCT PRICE PLACE PROMOTIONFrom Segmentation…

We can define… Strategy…

Lumia 640I640 XL should

- Technological advancement is not important to

OPTIMUM SEEKES if they can not do better or solve any

problems for

- Focus on outcomes from technological

advancement when communicating

PRODUCT PRICE PLACE PROMOTION

In Vietnam, communicating activities for Lumia 640I640 XL are quite Poor, mostly using PR in Online Webs

Adapted Adverts from Global